Government Of West Bengal vs M/S. Maharshi Commerce Limited And … on 10 March, 2026

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    Calcutta High Court (Appellete Side)

    Government Of West Bengal vs M/S. Maharshi Commerce Limited And … on 10 March, 2026

    Author: Supratim Bhattacharya

    Bench: Sabyasachi Bhattacharyya, Supratim Bhattacharya

                                                                                   2026:CHC-AS:382-DB
    
    
                             In the High Court at Calcutta
                              Civil Appellate Jurisdiction
                                     Appellate Side
    
         The Hon'ble Mr. Justice Sabyasachi Bhattacharyya
                        And
         The Hon'ble Mr. Justice Supratim Bhattacharya
    
                               M.A.T. No. 1134 of 2025
                                IA No: CAN 2 of 2025
                                       CAN 3 of 2025
    
            Transportation, Planning and Traffic Engineering Directorate,
                 Government of West Bengal, Transport Department
                                        Vs.
                   M/s. Maharshi Commerce Limited and Others
    
    
         For the appellant            :     Mr. Sirsanya Bandopadhyay,
                                                        Sr. Standing Counsel,
                                            Mr. Debopriyo Karan
    
         For the respondent no. 1     :     Mr. Avinash Kankani,

    Mr. Sagnik Mukherjee

    For the State : Mr. Pantu Deb Roy, AGP,
    Mr. Asish Dutta

    SPONSORED

    Heard on : 29.01.2026, 12.02.2026
    19.02.2026 & 23.02.2026

    Reserved on : 23.02.2026

    Judgment on : 10.03.2026

    Sabyasachi Bhattacharyya, J.:-

    1. The Transportation, Planning and Traffic Engineering Directorate of the

    Government of West Bengal, Transport Department, has preferred the

    present appeal against the judgment dated May 21, 2025 passed by a

    learned Single Judge of this Court in WPA No. 10640 of 2012. By the
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    impugned judgment, the learned Single Judge set aside an order dated

    June 24, 2011 passed by the respondent no. 4, the First Land

    Acquisition Collector, Kolkata in Miscellaneous Case No. 02 of 2011 and

    directed peaceful and vacant possession of the subject-premises to be

    handed over in favour of the writ petitioner/respondent no. 1 within two

    months from the order. A Special Officer was appointed to take symbolic

    possession of the premises and the writ petitioner was granted liberty to

    submit a comprehensive application to the respondent no. 2, the

    Principal Secretary to the Government of West Bengal, Department of

    Land and Land Reforms, seeking compensation for the period of illegal

    occupation of respondent no. 6 (present appellant). It was directed that

    upon submission of such application, the respondent no. 2 shall appoint

    an Arbitrator within a period of four weeks from the date of the order and

    referred the claim of the petitioner to the Arbitrator, whereupon the

    Arbitrator was to pronounce such award towards compensation as

    expeditiously as possible.

    2. A query was posed by the court during hearing as to the maintainability

    of the appeal at the behest of the appellant, being a Department of the

    State and not the State itself, despite the State being a party to the

    proceeding. In reply, learned Senior Standing Counsel, appearing for the

    appellant, submits that the appellant, although a separate Directorate

    under the State Government, is entitled to prefer an appeal in its

    independent capacity, since the impugned judgment specifically directed

    the appellant to quit and vacate the premises and arrived at categorical
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    findings against the appellant. Accordingly, it is contended that the

    present appellant is the party which is most affected by the impugned

    judgment and, as such, has the locus standi to prefer the instant appeal,

    even without the State preferring any appeal separately. That apart, the

    appellant was arrayed separately as a party in the writ petition, although

    the State was also one of the respondents. Thus, even the writ petitioner

    treated the appellant on a separate footing than the State.

    3. While assailing the impugned judgment, learned Senior Standing

    Counsel contends that the writ petitioner/respondent no. 1 did not have

    any locus standi to prefer the writ petition. It is submitted that although

    initially a lease was entered into between the State of West Bengal (which

    allotted the property to the appellant) and the original owner M/s. Hope

    (India) Limited on February 23, 1984, before the lease expired on March

    31, 1996, the property-in-question was requisitioned by the State on

    March 14, 1996. The said requisition, however, was subsequently set

    aside by an order dated December 24, 2001 passed in WP No. 805 (W) of

    1996. Two appeals, preferred against the said order, were dismissed for

    default.

    4. It is submitted that a Scheme of Arrangement was sanctioned by this

    Court in connection with a Company Petition in respect of various

    properties, including the present subject-property, whereby the disputed

    property was purportedly allocated to the writ petitioner/respondent no.

    1-Company. It is argued that in the interregnum, as on March 31, 2008,

    the right to sue of the writ petitioner/respondent no. 1 stood
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    extinguished by operation of Section 27 of the Limitation Act, 1963

    (hereinafter referred to as “the 1963 Act”). In support of the proposition

    of extinguishment of the right of the respondent no. 1 on the lapse of

    limitation fixed to institute a suit for possession of property, learned

    Senior Standing Counsel cites Ravinder Kaur Grewal and others v. Manjit

    Kaur and others, reported at (2019) 8 SCC 729.

    5. Relying on Prem Singh and others v. Birbal and others, reported at (2006)

    5 SCC 353, the appellant argues that limitation is a statute of repose. It

    ordinarily bars a remedy but does not extinguish a right. However, the

    only exception to the said rule is found in Section 27 of the 1963 Act,

    which provides that at the determination of the period prescribed

    thereby, the right of a person to sue for possession is extinguished.

    6. It is argued that in order to avoid the bar under Section 27 of the 1963

    Act, the respondent no. 1/writ petitioner resorted to Article 226 of the

    Constitution of India. However, by merely changing the route from the

    Civil Court to the Writ Court, such bar cannot be overcome.

    7. Learned Senior Standing Counsel further contends that Article 226 of

    the Constitution is not the appropriate remedy to establish title and such

    power vests in the Civil Court. The High Court, it is argued, should not

    exercise its special jurisdiction under the Constitution unless the

    circumstances are exceptional. To strengthen such argument, learned

    Senior Standing Counsel cites Anamallai Club v. Govt. of T.N. and others,

    reported at (1997) 3 SCC 169 and Parvatibai Subhanrao Nalawade (Smt)

    v. Anwarali Hasanali Makani and others, reported at (1992) 1 SCC 414.
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    8. Learned Senior Standing Counsel next argues that although the

    appellant may not have a right to continue in possession after the

    termination of its tenancy, its possession is juridical and not “illegal”.

    R.V. Bhupal Prasad v. State of A.P. and others, reported at (1995) 5 SCC

    698 is cited by the appellant in support of such contention.

    9. It is further submitted that the writ petitioner/respondent no. 1 sought

    recovery of “rent payable” by filing WP No. 3552 (W) of 2010, which was

    disposed of by a learned Single Judge of this Court, directing the Land

    Acquisition Collector to dispose of the matter regarding the release of

    “rent” to the petitioner.

    10. Another writ petition, bearing WP No. 3815 (W) of 2010, was filed by

    respondent no. 1 with regard to payment of electricity charges for the

    subject-premise, which culminated in an order dated January 14, 2011,

    granting the writ petition liberty to approach the Land Acquisition

    Collector on the issue of de-requisition.

    11. Thus, the respondent no. 1 assented to the continuance of the tenancy of

    the appellant by claiming rent, hence conferring the character of legality

    on such possession.

    12. Learned Senior Standing Counsel further argues that the appointment of

    Arbitrator by the learned Single Judge in the impugned order, without

    the consent of parties, was de hors the law. The writ court could not

    have appointed an Arbitrator unilaterally.

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    13. The appellant contends that the argument that the writ petition is in

    execution of the earlier order passed in a previous writ petition, made

    before this Court, was neither pleaded nor made out in the writ petition.

    14. In the Scheme of Amalgamation approved by this Court on June 10,

    1998, the Calcutta Metropolitan Planning Organization is described as a

    “tenant”. Change of ownership as landlord, it is submitted, cannot

    change the nature of tenancy of the appellant. Therefore, at least till

    June 10, 1998, the appellant was recognized as a tenant. Moreover, in a

    letter dated May 14, 2005, written on behalf of the respondent no.1, the

    possessed portion of the appellant has been described as the “tenanted”

    portion. Hence, the overarching point, whether the Writ Court could

    decide such disputed question of fact, including the title of the writ

    petitioner, the type of tenancy of the appellant and the character of its

    possession as well as quantity of damages, remains.

    15. Learned counsel for the respondent no. 1, on the other hand, contends

    that none of the judgments relied on by the appellant are germane for

    the present consideration. It is argued that admittedly, the appeals

    preferred against the order of the Writ Court setting aside the requisition

    of the property were dismissed for default, respectively on July 21, 2003

    (APO No. 43 of 2002) and July 3, 2006 (APO No. 130 of 2002).

    16. Thus, the order of the Writ Court dated December 24, 2001 has attained

    finality.

    17. On November 21, 2002, it is submitted, the State of West Bengal

    derequisitioned the entire premises covered by the Writ Court‟s order,
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    2026:CHC-AS:382-DB

    except an area of approximately 4449 Sq. Ft. on the first floor of the

    concerned premises. The derequisitioned portion was vacated and

    handed over on June 27, 2003. As such, the balance portion of 4449 Sq.

    Ft. is owned by the writ petitioner/respondent no. 1, which forms a part

    of the total area of 9062 Sq. Ft. allotted to respondent no. 1. The

    ownership of the said area by the writ petitioner/respondent is not

    disputed by Poddar Udyog Limited and Poddar Projects Limited, who are

    the allottees of the other portions. Learned counsel relies on declarations

    issued by both the said companies stating that they do not have any

    right, title or interest over the area of 9062 Sq. Ft., which solely belongs

    to respondent no. 1. It is pointed out that the Land Acquisition

    Collector, in Paragraph No. 4(iii) of its opposition, also stated that Poddar

    Udyog Limited confirmed that the new owner of the premises under

    requisition, occupied by the present appellant, is respondent no. 1.

    18. It is next submitted that the earlier writ petitions filed by respondent no.

    1 for release of rent compensation did not amount to consent of the

    respondent no. 1 for the appellant to hold over the subject-property in

    the capacity of a tenant. By dint of the Scheme of Arrangement and

    Mutation Certificate, the disputed property indisputably belongs to the

    respondent no. 1.

    19. After the Writ Court‟s order setting aside the requisition and expiry of the

    lease, the appellant has been rendered an unlawful occupant of the

    property and the writ court, by the present impugned order, rightly

    directed it to vacate possession immediately. It is submitted that the
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    State of West Bengal, through the appellant, has failed to comply with

    the order dated December 24, 2001 and is still in occupation of the

    demised premises illegally and without any authority of law, in violation

    of Article 300-A of the Constitution of India.

    20. Learned counsel cites B.K. Ravichandra and others v. Union of India and

    others, reported at (2021) 14 SCC 703, for the proposition that the right

    to property is a valuable Constitutional right. It is submitted that the

    State‟s long-term possession of the land without a formal lease or

    acquisition is unconstitutional and the State‟s status stands reduced to

    that of an unauthorised occupant.

    21. Learned counsel next cites Punalur Paper Mills Ltd. v. W.B. Mineral

    Development & Trading Corpn. Ltd. and others, reported at (2021) 14 SCC

    528, for the proposition that this Court can appoint an Arbitrator for

    computation of damages against illegal occupation.

    22. Placing reliance on Union of India v. Shakuntala Gupta (dead) by LRs.,

    reported at (2002) 7 SCC 98, learned counsel for respondent no. 1 argues

    that in the said matter the Hon‟ble Supreme Court did not interfere with

    the decision of the High Court appointing an Arbitrator to determine the

    damages payable. Again, in Union of India and others v. Krishan Lal

    Arneja and others, reported at (2004) 8 SCC 453, it was held that the

    High Court did not lack authority to appoint an Arbitrator merely due to

    the absence of a formal arbitration agreement and the lack of a specific

    prayer in the writ petition. Similar appointments have been upheld by

    the Supreme Court on previous occasions, expressly clarifying that an
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    Arbitrator appointed by the High Court is empowered to issue an award

    for the court‟s subsequent review. It is, thus, contended that the

    appointment of Arbitrator in the present case was legally tenable.

    23. Learned counsel for respondent no. 1 next cites General Radio &

    Appliances Co. Ltd. and others v. M.A. Khader (dead) by LRs., reported at

    (1986) 2 SCC 656, for the proposition that an order sanctioning

    amalgamation of rights, interest and liabilities of the transferor company

    transfers and vests the subject-property in the transferee company.

    24. The respondent no. 1 relies on Vidya Devi v. State of Himachal Pradesh

    and others, reported at (2020) 2 SCC 569, in support of the argument

    that the State cannot be permitted to perfect it title over the land by

    invoking the doctrine of adverse possession to grab the property of its

    own citizens.

    25. Again, in Dharnidhar Mishra (D) and another v. State of Bihar and others,

    reported at (2024) 10 SCC 605, it was held that the plea of delay and

    laches are inapplicable where the cause of action is of a continuing

    nature or where the underlying facts are so egregious that it shocks the

    judicial conscience.

    26. In Bibekananda Mondal v. State of West Bengal, reported at 2002 SCC

    OnLine Cal 571, it was held that a second writ petition is maintainable

    for implementation of an earlier order of the writ court and the court

    must issue proper direction for appropriate implementation of such

    previous direction.

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    27. It is, thus, contended that the present writ petition is in the nature of

    implementation of the earlier order of the Writ Court directing the State

    to derequisition and vacate the entire property which was subject to

    such unlawful requisition.

    28. It is contended in view of the order dated December 24, 2001 passed in

    WP No. 805 (W) of 1996, the impugned order of the First Land

    Acquisition Collector, giving rise to the present proceeding, was a nullity

    in the eye of law. Since the order of requisition was set aside, the

    Collector did not have any competence to adjudicate on such issues.

    29. With regard to the applicability of Section 27 and Article 65 of the 1963

    Act, learned counsel appearing for respondent no. 1 argues that such

    fetters are not applicable to Article 226 of the Constitution of India,

    particularly in view of the current writ petition having been filed merely

    for implementation of the judgment and order dated December 24, 2001.

    30. It is next contended that the instant proceeding is not a landlord-tenant

    dispute but one for obtaining possession against the State of West

    Bengal and others, whose entire action of requisition of the demised

    premises was set aside and possession was directed to be handed over,

    which order has attained finality.

    31. Learned counsel for respondent no. 1 argues that the argument of the

    appellant that the subject-property is being occupied with the consent of

    the landlord, who has accepted rent, is fallacious and untenable as it is

    contrary to the opposition filed by the First Land Acquisition Collector,

    who has denied the title of the writ petitioner.

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    32. It is further submitted that in view of the order of requisition being

    quashed by this Court, the First Land Acquisition Collector did not have

    jurisdiction over the subject-matter. In any event, it is argued that the

    order approving the Scheme of Amalgamation passed by this Court was

    placed before the said authority.

    33. Thus, it is submitted that the appeal ought to be dismissed.

    34. Before entering into the meat of the matter, the relevant facts leading to

    the same are required to be noted.

    35. On February 23, 1984, a lease deed was executed in favour of the State

    of West Bengal by the original owner M/s. Hope (India) Limited for the

    first and second floor of Premises No. 18, Rabindra Sarani, Kolkata – 700

    001, for a period of 16 years from April 1, 1980, expiring on March 31,

    1996.

    36. Subsequently, by virtue of a Scheme of Amalgamation sanctioned by this

    Court in connection with a Company Petition, the right, title and interest

    of the said original owner was transferred and vested in Multiplex

    Business Limited, which was further transferred to one Poddar Udyog

    Limited with effect from June 17, 1998. Poddar Udyog Limited, the

    transferee, filed a suit for eviction against the State of West Bengal,

    bearing no. 1 of 1994, in view of the default in payment of lease rent.

    37. However, to avoid the consequences of expiry of the lease on March 31,

    1996, the State of West Bengal requisitioned the tenanted premises on

    March 14, 1996 and notional possession was given on paper to the
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    present appellant, in terms of such purported requisition, on March 22,

    1996.

    38. On June 10, 1998, a Scheme of Arrangement was sanctioned by this

    Court in a Company Petition, by virtue of which various properties,

    including the subject-property, was allocated between several entities,

    including the Poddar Udyog Limited, Poddar Projects Limited, Hope

    Cardamom Estate Limited, the respondent no. 1 and their shareholders.

    39. On December 24, 2001, a learned Single Judge of this Court allowed WP

    No. 805 (W) of 1996 and set aside the order of requisition, which decision

    was initially stayed in appeal by a Division Bench. However, the two

    appeals preferred against the order dated December 24, 2001, bearing

    APO No. 43 of 2002 (old no. APOT No. 53 of 2002) and APO No. 130 of

    2002 (old no. APOT No. 90 of 2002) were subsequently dismissed for

    default on July 21, 2003 and July 03, 2006 respectively. The said

    appeals were never restored. Thus, the order of the Writ Court dated

    December 24, 2001 setting aside the requisition attained finality.

    40. Meanwhile, the writ petitioner/present respondent no. 1 wrote to the

    appropriate authorities for recovery of dues of electricity charges as well

    as for rent compensation for the period of unlawful occupation by the

    State through the appellant. Such claim, however, was refused.

    41. A writ petition, bearing WP No. 3552 (W) of 2010, challenging the refusal

    of the State-Authorities to pay Rs. 27,65,336/- as rent compensation for

    the period between June 27, 2003 and March 31, 2009 ,was also filed by

    respondent no. 1.

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    42. Another writ petition, bearing WP No. 3815 (W) of 2010, challenging the

    refusal of the State-Authorities to derequisition 4449 Sq. Ft. on the first

    floor of the subject-premises, was also taken out.

    43. It is relevant to mention here that although the State had derequisitioned

    a substantial portion of the entire requisitioned property in terms of the

    order of this Court dated December 24, 2001, the balance, comprised of

    the present disputed property of 4449 Sq. Ft., was not derequisitioned

    and possession of the same was continued to be retained by the

    appellant.

    44. WP No. 3553 (W) of 2010 was disposed of January 14, 2011 by directing

    the First Land Acquisition Collector, Kolkata, to dispose of the matter

    relating to release of rent compensation to the petitioner/present

    respondent no. 1 by passing a reasoned order.

    45. On the self-same date, WP No. 3815 (W) of 2010 was also disposed of by

    directing the Land Acquisition Collector to dispose of the representation

    of respondent no. 1 by passing a reasoned order.

    46. Subsequently, the respondent no. 1 was heard by the Collector on

    several occasions and on June 24, 2011, the First Land Acquisition

    Collector, Kolkata forwarded his reasoned order to the respondent no. 1,

    holding that the latter had failed to substantiate its claim as an absolute

    owner and was not entitled to any rent.

    47. WP No. 10640 (W) of 2012 was then filed, challenging the said order of

    the Collector as well as seeking vacant possession of the subject-property

    and recovery of rent compensation for the period of illegal occupation by
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    the appellant. The same was disposed of on May 21, 2025, leading to

    the present appeal.

    48. The following issues fall for consideration in the appeal:

    (i) Locus standi of the appellant to prefer the present appeal;

    (ii) Locus standi of respondent no. 1 to file the writ petition from which

    the present appeal arises;

    (iii) Whether the writ petition was barred by Section 27, read with

    Article 65, of the Limitation Act, 1963;

    (iv) Whether the writ court acted without jurisdiction, in view of the

    limited powers of the Writ Court to decide questions of title;

    (v) Whether the appointment of Arbitrator by the impugned order was

    illegal.

    49. The Court decides the above issues in the following manner:

    (i) Locus standi of the appellant to prefer the present appeal

    50. The appellant cites an unreported co-ordinate Bench judgment of this

    Court in MAT No. 1654 of 2023 [Block Development Officer and Another v.

    Surajit Pramanick and Others].

    51. It was held therein that if the valuable right of one of the parties is

    decided by an order, such order is to be treated as a “judgment” within

    the meaning of Clause 15 of the Letters Patent of this Court and is open

    to a challenge in an intra-Court Appeal.

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    52. However, the focal point of the said adjudication was whether the

    impugned decision was a “judgment” within the contemplation of Clause

    15 of the Letters Patent, and not the locus standi of the appellant as

    such. Hence, the said judgment is not germane for the present

    consideration.

    53. In Midnapore Peoples’ Coop. Bank Ltd. and others v. Chunilal Nanda and

    others, reported at (2006) 5 SCC 399, the Hon‟ble Supreme Court

    categorically observed that the order impugned in the appeal in the said

    case was passed in the course of contempt proceedings, issuing specific

    directions on the Chairman and the Secretary-in-Charge representing

    the Bank were specifically directed to do certain acts, by referring to

    them as “the respondent-Bank”. Since the said officials were considered

    as representing the Bank for issuing such directions, it was held that

    they could file an appeal against the directions.

    54. In our considered opinion, the present appellant stands on a better

    footing than the appellants in the said case, inasmuch as the brunt of

    the impugned judgment is not against the State of West Bengal but

    against the appellant itself. Moreover, the appellant was arrayed

    separately as a party to the writ petition in its independent capacity. It

    is the appellant which is admittedly in possession of the subject-property

    and was directed to vacate the same by the impugned order. Although

    the rent compensation to be paid might ultimately come from the coffers

    of the State, fact remains that the appellant is directly and substantially

    affected by the impugned judgment.

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    55. That apart, although merely a Department of the State, the appellant is a

    Directorate in its own right, with its independent Director. Thus, a

    semblance of autonomy is vested in the present appellant, entitling it to

    maintain its own litigation in its own right and not merely through the

    State.

    56. In view of the above, this Court is of the opinion that the appellant has

    the locus standi to maintain the present appeal.

    (ii) Locus standi of respondent no. 1 to file the writ petition from

    which the present appeal arises

    57. By dint of the order dated June 10, 1998 sanctioning the Scheme of

    Arrangement, passed in connection with a Company Petition, the

    respondent no. 1 became the owner of a portion of the entire premises-

    in-question.

    58. In the said order, passed in Company Application No. 226 of 1997,

    arising out a proceeding under Section 391(2), 392 and 394 of the

    Companies Act, 1956, the portion allocated to respondent no. 1 was

    categorically delineated.

    59. The right, title and interest of the original owner in respect of a

    demarcated 9062 Sq. Ft. of the subject-property was ultimately vested in

    favour of the respondent no. 1 through its predecessor-in-interest,

    Kolkata Metropolitan Planning Organization.

    60. By dint of the expiry of the State‟s lease on March 31, 1996 and in view

    of the requisition of the subject-property by the State having been set
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    aside by the order dated December 24, 2001 passed in WP No. 805 (W) of

    1996, a valuable right accrued in favour of the writ

    petitioner/respondent no. 1 to seek possession of the subject-property

    (which comprises a part of the 9062 Sq. Ft. allocated to it) and to

    challenge the impugned order of the Land Acquisition Collector. In any

    event, in the said order, the representation of the writ

    petitioner/respondent no. 1 was rejected, holding it not to be the owner

    of the subject-property. As such, the writ petition was very much

    maintainable before this Court at the behest of the respondent no. 1

    herein in view of the infraction of its ownership and associated rights.

    (iii) Whether the writ petition was barred by Section 27, read with

    Article 65, of the Limitation Act, 1963

    61. The language of Section 27 of the Limitation Act, which has been relied

    on vociferously by the appellant, is quoted hereinbelow:

    “27. Extinguishment of right to property.–At the
    determination of the period hereby limited to any person for
    instituting a suit for possession of any property, his right to such
    property shall be extinguished.”

    62. However, Section 27 cannot be read in isolation. In the facts of the

    present case, the said provision has to be read in conjunction with

    Article 65 of the Schedule to the 1963 Act.

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    63. Article 65 is also set out hereinbelow:

    Description of Suit Period of limitation Time from which period
    begins to run

    65.For possession of Twelve years When the possession of the
    immovable property or defendant becomes adverse
    any interest therein to the plaintiff.

    based on title.

           Explanation.--For            the
           purposes of this article--
           (a) where the suit is by a
               remainderman,             a
               reversioner (other than
               a landlord) or a
               devisee,                the
               possession        of    the
               defendant shall be
               deemed to become
               adverse only when the
               estate         of       the
               remainderman,
               reversioner or devisee,
               as the case may be,
               falls into possession;
           (b) where the suit is by a
               Hindu       or     Muslim
               entitled        to      the
               possession               of
               immovable property on
               the death of a Hindu
               or Muslim female, the
               possession        of    the
               defendant shall be
               deemed to become
               adverse only when the
               female dies;
           (c) where the suit is by a
               purchaser at a sale in
               execution of a decree
               when the judgment
               debtor was out of
               possession at the date
               of     the    sale,     the
               purchaser shall be
               deemed to be a
               representative of the
               judgment-debtor who
               was out of possession.
    
    
    
    

    64. Section 27, by itself, does not create any right but provide a fetter to the

    owner of the property to assert its ownership rights in respect of the

    disputed property by dint of expiry of the limitation period for instituting
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    a suit for possession. As recognised by the Hon‟ble Supreme Court in

    Ravinder Kaur Grewal (supra)1, Section 27 is an exception to the general

    rule of the law of limitation that although the edge of ownership for the

    purpose of using it as a sword to seek eviction is blunted by expiry of the

    limitation period, the substantive right of the owner is not automatically

    extinguished. In cases where Section 27 is applicable, the right of the

    owner to the property is itself extinguished, denuding the owner of its

    ownership rights altogether.

    65. In the present case, the appellant seeks to rely on the said provision in

    conjunction with Article 65 of the Schedule to the 1963 Act. However,

    the key word in the said Article, under the column stipulating the point

    of commencement of limitation, is “adverse”. The Article contemplates

    that the limitation period begins when the possession of the defendant

    becomes adverse to the plaintiff.

    66. It is only in such cases that the right is extinguished, both in terms of

    Section 27 and the above decision.

    67. Prem Singh and others (supra)2 merely reiterates the principle embodied

    in Section 27 in general.

    68. Learned Senior Standing Counsel himself, during arguments and in the

    written notes of arguments filed by the appellant, reiterates that the

    appellant is not claiming adverse possession but simultaneously relies on

    Section 27, read with Article 65 of the 1963 Act. However, such

    argument is a contradiction in terms, since the adverse nature of the
    1
    Ravinder Kaur Grewal and others v. Manjit Kaur and others, reported at (2019)
    8 SCC 729
    2
    Prem Singh and others v. Birbal and others
    , reported at (2006) 5 SCC 353
    20

    2026:CHC-AS:382-DB

    possession is a sine qua non for the limitation even to start under Article

    65.

    69. Apart from the appellant having not argued adverse possession and/or

    pleaded the same at any point of time by specifically enumerating the

    point of time since when the possession first became hostile and

    uninterrupted against the true owner, the records bear out that the

    possession of the State (which, in turn, allocated the property to the

    appellant) commenced with a lessee. It is the inception of a jural

    relationship which has to be considered for the purpose of determining

    the character of possession. Once a lessee, an entity always remains a

    lessee throughout the tenure of its lease and thereafter becomes a

    „tenant-at-sufferance‟. In fact, the appellant itself has argued in that

    line.

    70. The concept of “tenant-at-sufferance” stems from English Jurisprudence

    but has also been imbibed, although not in so many words, in Indian

    Jurisprudence. In Indian Law, once a lease is terminated, the lessee

    becomes liable to vacate the possession.

    71. It is an admitted position in the present case that the State of West

    Bengal entered into a lease in writing with the original owner on

    February 23, 1984, agreeing thereby that the lease would commence

    from April 1, 1980 and would expire after 16 years therefrom, that is, on

    March 31, 1996.

    72. Thus, on and from April 1, 1996, the State of West Bengal, which had

    allotted the property to the appellant, became a tenant-at-sufferance.
    21

    2026:CHC-AS:382-DB

    The status of a tenant-at-sufferance is of a shade somewhere between a

    rank trespasser and a person in lawful occupation of a property. The

    character of such possession is one of „unlawful occupier‟, although not

    that of a „rank trespasser‟. Even if we proceed on such premise, Section

    108(q) of the Transfer of Property Act, 1982 (for short, “the TP Act“)

    provides that on the determination of the lease, the lessee is bound to

    put the lessor into possession of the property. The said provision

    embodies the concept of tenant-at-sufferance.

    73. The only exception thereto is recognized in Section 116 of the TP Act,

    which provides as follows:

    “116. Effect of holding over.–If a lessee or under-lessee of property
    remains in possession thereof after the determination of the lease granted to
    the lessee, and the lessor or his legal representative accepts rent from the
    lessee or under-lessee, or otherwise assents to his continuing in possession,
    the lease is, in the absence of an agreement to the contrary, renewed from
    year to year, or from month to month, according to the purpose for which the
    property is leased, as specified in section 106.”

    74. Thus, the sine qua non for a lessee, whose lease has expired, to have the

    status of an entity “holding over”, is the assent of the lesser to such

    continuance in possession. The expression “accepts rent” in Section 116

    of the TP Act is inextricably intertwined with the following phrase: “or

    otherwise assents to his continuing in possession”. The term “otherwise”

    unerringly indicates that the acceptance of rent has to be associated

    directly with the assent of the lessor for the lessee to continue in

    possession after expiry of its lease. The effect of holding over is that, by

    necessary inference, a jural relationship akin to a new tenancy is created
    22

    2026:CHC-AS:382-DB

    by legal fiction. In the absence of any such assent, however, the status

    of the lessee of an expired lease remains that of a tenant-at-sufferance

    who has no interest or interest in the lease-hold property and is subject

    to eviction by the lessor/owner.

    75. In the present case, the appellant has argued that the claim of the

    respondent no. 1 for rent compensation and electricity charges

    tantamounted to recognition of the status of the appellant as a lessee by

    holding over. However, a bare perusal of the letter issued by respondent

    no. 1 in such context belies such proposition. In the letter dated

    January 24, 2005 issued by the writ petitioner/respondent no. 1 to the

    Joint Secretary of the Government of West Bengal, Urban Development

    Department, Town and Country Planning Branch, the said respondent

    claimed the due payments with regard to electricity charges during the

    period of unlawful occupation by the State (through the appellant) in

    respect of the subject-premises. However, a caveat was inserted

    specifically in the communication, to the effect that such claim was

    “without prejudice to the rights and contentions pending” in the matter.

    Thus, the claim of electricity dues was merely by way of recovery of

    money actually spent by respondent no. 1 for electricity consumption by

    the appellant during its unlawful possession of the property, without

    carrying any undertone of assent for the State/appellant to continue in

    possession or to create a new lease at all. The “rent compensation”

    claimed from the appellant was also in lieu of occupation charges,

    without any specific admission anywhere expressing the intention of
    23

    2026:CHC-AS:382-DB

    respondent no. 1/owner to grant a new lease or acceding to the

    continuance of possession by the appellant. Rather, the respondent no.

    1 has been litigating all along for regaining possession of the property.

    The term “rent” in the expression “rent compensation” cannot be equated

    with the contemplation of “rent” in terms of Section 105 of the TP Act,

    since the rent compensation claimed by respondent no. 1 was merely in

    lieu of occupation charges in the nature of compensation/mesne

    profits/damages for the unlawful occupation of the property by the

    State/appellant. Such amount cannot, by any stretch of imagination,

    can be said to be the “periodical payment of money as a term or

    consideration of a transfer of the right to enjoy the property” by

    respondent no. 1 to the State or the appellant, as envisaged in Section

    105.

    76. Even otherwise, the stand of the appellant, that the claim of rent

    compensation by respondent no. 1 recognized the status of the appellant

    as a lessee, is mutually destructive of the plea of adverse possession.

    77. In any event, at no point of time did the possession of the appellant in

    respect of the subject-property either become „adverse‟ to that of the

    respondent no. 1/true owner or partook of the character of „holding over‟.

    Thus, the foundational edifice on which the appellant seeks to invoke

    Section 27, read with Article 65, of the 1963 Act, is illusory and nothing

    better than quicksand.

    24

    2026:CHC-AS:382-DB

    78. In such view of the matter, since the possession of the appellant never

    turned adverse to the respondent no. 1/true owner, it cannot be said

    that Section 27 and/or Article 65 of the 1963 Act was ever attracted.

    79. In Vidya Devi (supra)3, the Hon‟ble Supreme Court recognized the legal

    principle that the State cannot perfect its title by claiming adverse

    possession by grabbing the property of a citizen.

    80. In the instant case, the illegality committed by the State is of a much

    higher order, since, in order to favour its own Department/Directorate

    (present appellant) the State retained its unlawful occupation of the

    property, thereby flouting the specific direction to vacate the premises, as

    embodied in the order dated December 24, 2001 passed in WP No. 805

    (W) of 1996, despite such order having attained finality. The action of the

    State, and in reflected light, of the appellant has been not only arbitrary

    and unfair, but patently mala fide all through. First, the State sought to

    perpetuate its possession even after the due date of expiry of its lease on

    March 31, 1996 by issuing a requisition order on March 14, 1996 and

    even going to the extent of granting notional possession to the appellant

    on March 22, 1996. Then, when such ploy failed by the requisition being

    set aside by this Court on December 24, 2001, the State blatantly

    refused to comply with the solemn order by derequisitioning only a

    portion of the entire property and unlawfully retaining 4449 Sq. Ft. in

    the teeth of such order.

    3
    Vidya Devi v. State of Himachal Pradesh and others, reported at (2020) 2 SCC
    569
    25

    2026:CHC-AS:382-DB

    81. Not stopping there, the appellant has consistently attempted to ward off

    all efforts of the legitimate owner/respondent no.1 to recover the

    property and even to compensate the owner for the period of unlawful

    occupation of the subject-property.

    82. Such action is not only patently arbitrary but is imbued with legal

    malice.

    83. As further held by the Hon‟ble Supreme Court in Vidya Devi (supra)4,

    there cannot be any delay in a continuing cause of action, since it was

    the incumbent duty of the State and, by necessary implication, the

    appellant, an instrumentality of the State, to comply with the direction of

    the Writ Court dated December 24, 2001 and vacate the subject-

    premises. Instead of doing so, the State went on so far as not to

    derequisition 4449 Sq. Ft. of the total property. The legal malice of the

    State was recognized by the Writ Court in WP No. 805 (W) of 1996 while

    passing the order dated December 24, 2001 therein. Just before the

    lease executed in favour of the State having expired on March 31, 1996,

    the State, in a mala fide attempt to retain the property, issued a

    requisition order dated March 14, 1996 and performed a charade, an

    illusory handover of the property of the appellant, its own

    instrumentality [aptly referred to as “paper possession” in the order

    dated December 24, 2001 passed in WP No. 805 (W) of 1996].

    84. Thus, it was not the obligation of the writ petitioner/respondent no. 1 to

    run from pillar to post seeking possession and compensation but, rather,

    4
    Vidya Devi v. State of Himachal Pradesh and others, reported at (2020) 2 SCC
    569
    26

    2026:CHC-AS:382-DB

    the incumbent duty of the State, through the appellant, to hand over

    vacant and peaceful possession of the property in favour of the true

    owner pursuant to the order dated December 24, 2001. Having not done

    so, the State and the appellant subjected themselves to continuous

    liability to vacate the premises. Hence, the concept of “continuing cause

    of action” is squarely attracted in the present case, as also recognized in

    Dharnidhar Mishra (D) (supra)5.

    85. Thus, this issue is decided against the appellant, holding that the claim

    of the writ petitioner/respondent no. 1 is not barred by Section 27, read

    with Article 65 of the 1963 Act.

    (iv) Whether the writ court acted without jurisdiction, in view of

    the limited powers of the Writ Court to decide questions of

    title

    86. The present writ petition, as rightly contended by respondent no. 1, is in

    the nature of implementation of the order dated December 24, 2001

    passed in WP 805 (W) of 1996, whereby the purported requisition of the

    subject-property was set aside and the State was directed to vacate the

    property immediately.

    87. Upon dismissal for default of the two appeals preferred against such

    order, bearing APO No. 43 of 2002 and APO No. 130 of 2002, the said

    order of the Writ Court has attained finality. Thus, the claim of the State

    and the appellant by virtue of such purported requisition was set at

    5
    Dharnidhar Mishra (D) and another v. State of Bihar and others, reported at
    (2024) 10 SCC 605
    27

    2026:CHC-AS:382-DB

    naught with the dismissal of the said appeals, respectively on July 1,

    2003 and July 3, 2006.

    88. Secondly, the writ petitioner/respondent no. 1 has not raised in intricate

    question of title, requiring detailed evidence to be taken or any disputed

    and complicated fact being adjudicated. The claim in the writ petition is

    simpliciter – that the Land Acquisition Collector erred in law in holding

    that the writ petitioner/respondent no. 1 is not the owner of the property

    and withholding compensation and arrear electricity charges from the

    said owner. In the process, the Writ Court also directed the appellant to

    vacate the subject-property, since its occupation of the same is unlawful.

    89. In the teeth of the order dated December 24, 2001, setting aside the

    requisition proceeding and directing the State to vacate the property as

    well as the expiry of the lease as long back as on March 31, 1996, the

    appellant and/or the State have been relegated to the status of unlawful

    occupants. In the absence of any ingredient of holding over being

    established on the basis of the materials on record, no title could be or

    has been claimed by the State or the appellant as such. Thus, the relief

    sought before the Writ Court did not involve the adjudication of any

    intricate question of title at all.

    90. In view of the appellant being an instrumentality of the State and the

    beneficiary of a requisition by the State which has been set at naught by

    a competent Court, as well as the expiry of the lease obtained by the

    State long back, the remedy under Article 226 of the Constitution of
    28

    2026:CHC-AS:382-DB

    India was very much available to the writ petitioner/respondent no. 1,

    being the true owner of the property.

    91. Thirdly, the respondent no. 1 produced before the Writ Court

    declarations issued by Poddar Udyog Limited and Poddar Projects

    Limited, who were the other allottees, indicating that the Kolkata

    Metropolitan Planning Organization had vacated their respective

    allocated portions of the subject-property and they do not have any right,

    title or interest over the remaining area of 9062 Sq. Ft. which solely

    belongs to respondent no. 1 now. The said declarations, read in

    conjunction with the order of the Company Court dated June 10, 1998

    approving the Scheme of Arrangement, whereby s 9062 Sq. Ft. area

    (containing the 4449 Sq. Ft. in occupation of the appellant) to the

    respondent no. 1, leave no manner of doubt as to the entitlement of the

    writ petitioner/respondent no.1 to obtain peaceful and vacant possession

    of the subject-property and adequate compensation for the unlawful

    occupation of the said property by the appellant.

    92. Hence, the respondent no. 1 has proved beyond doubt its ownership in

    respect of the subject-property as opposed to the State and the

    appellant, who, even on the basis of the admitted facts, are unlawful

    occupants in respect of the said property.

    93. It is well-settled that State action has to be characterised by fairness and

    has to be on a higher pedestal than that of private individuals, both in its

    contractual obligations and in the public domain. Thus, in view of the

    palpably illegal retention of occupation of the subject-property by the
    29

    2026:CHC-AS:382-DB

    appellant in violation of Article 300A of the Constitution, the remedy

    under Article 226 of the Constitution of India was very much available to

    the writ petitioner/respondent no. 1.

    94. R.V. Bhupal Prasad (supra)6 does not come to the aid of the appellant in

    any manner, since the assent of the owner for the appellant to continue

    in possession has not been established in the present case, as opposed

    to the factual premise of the said decision.

    95. In Anamallai Club (supra)7, the Hon‟ble Supreme Court merely reiterated

    the settled proposition of law that a person cannot be dispossessed

    without due process of law. In the present case, writ petition itself was

    filed in due process of law to obtain the eviction of the appellant, without

    respondent no. 1 having resorted to any tactics of force. That apart, the

    present writ petition is also by way of implementation of the already-

    existent order dated December 24, 2001 of the writ court for the State to

    vacate possession of the property.

    96. In Parvatibai Subhanrao Nalawade (Smt) (supra)8, the Hon‟ble Supreme

    Court was considering a consent decree of the Civil Court which was

    directed to be put into execution. In such context, it was held that no

    writ petition would be maintainable, since the appropriate remedy would

    be to execute the Civil Court‟s decree. The facts of the present case are

    completely different and, thus, the above proposition is not applicable

    here at all.

    6
    R.V. Bhupal Prasad v. State of A.P. and others, reported at (1995) 5 SCC 698
    7
    Anamallai Club v. Govt. of T.N. and others
    , reported at (1997) 3 SCC 169
    8
    Parvatibai Subhanrao Nalawade (Smt) v. Anwarali Hasanali Makani and others
    ,
    reported at (1992) 1 SCC 414
    30

    2026:CHC-AS:382-DB

    97. Accordingly, the writ petition filed by the respondent no. 1 is held to have

    been maintainable in all respects.

    (v) Whether the appointment of Arbitrator by the impugned order

    was illegal

    98. The Hon‟ble Supreme Court, in several judgments, has sanctioned the

    appointment of an Arbitrator unilaterally by the court for the purpose of

    assessment of compensation and/or for ancillary purposes. The echo of

    such proposition is found in Punalur Paper Mills Ltd. (supra)9, Union of

    India v. Shakuntala Gupta (dead) (supra)10 and Union of India and others

    v. Krishan Lal Arneja and others (supra)11.

    99. Moreover, we find that the term “Arbitrator” was used as a mere

    nomenclature by the Writ Court only insofar as the computation of the

    compensation is concerned. The learned Single Judge, in fact, granted

    the writ petitioner/respondent no. 1 liberty to submit a comprehensive

    application to the respondent no. 2, the Principal Secretary to the

    Government of West Bengal, Department of Land and Lard Reforms,

    seeking compensation for the period of illegal occupation by the present

    appellant, upon the submission of which the respondent no. 2 was to

    appoint an Arbitrator within the period specified in the order and refer

    the claim of the writ petitioner to the Arbitrator. Hence, the appointment

    9
    Punalur Paper Mills Ltd. v. W.B. Mineral Development & Trading Corpn. Ltd.
    and others
    , reported at (2021) 14 SCC 528
    10
    Union of India v. Shakuntala Gupta
    (dead) by LRs., reported at (2002) 7 SCC 98
    11
    Union of India and others v. Krishan Lal Arneja and others
    , reported at (2004)
    8 SCC 453
    31

    2026:CHC-AS:382-DB

    of Arbitrator was not “unilateral” insofar as the appellant is concerned;

    rather, the writ petitioner/respondent no. 1 might have had an objection

    thereto, since the respondent no. 2, being an officer of the State, has

    been empowered to appoint the Arbitrator. Thus, there is no impartiality

    or unfairness in such appointment as it is the State itself, through its

    functionary, which will appoint the Arbitrator for the purpose of

    calculation of compensation. Rather, this Court appreciates the course

    of action taken by the learned Single Judge in not usurping the power of

    the State, in the first place, to assess such compensation. The learned

    Single Judge, in perfect consonance with law, has merely permitted the

    writ petitioner/respondent no. 1 to apply for compensation before

    respondent no. 2 who, in turn, will appoint an Arbitrator to pronounce a

    formal award towards such compensation for the period during which

    the subject-property was in illegal occupation of the appellant.

    100. Hence, we do not find any illegality in such course of action of

    appointment of an Arbitrator at all.

    101. This issue, thus, is also decided against the appellant.

    CONCLUSION

    102. In view of the above findings, this Court does not find any illegality or

    jurisdictional error and/or perversity in the impugned order of the

    learned Single Judge to merit interference within the limited scope of an
    32

    2026:CHC-AS:382-DB

    intra-court appeal. Not only a plausible view but the correct view, in our

    humble opinion, was taken by the learned Single Judge in passing the

    impugned order.

    103. At the same time, we take note of the immense harassment suffered by

    the writ petitioner/respondent no. 1 in being compelled to run from pillar

    to post for vindication of its legitimate and legal rights, due to the

    conduct of the appellant and its continuous resistance designed to

    thwart due process of law. Accordingly, the appellant is required to be

    saddled with costs. Yet, such costs should not be borne by the public

    coffer but liability therefor should be fixed at an individual level. Thus,

    we deem it appropriate to impose appropriate costs personally on the

    Director of the appellant-Directorate, who is in overall charge of affairs

    and through whom the appeal has been filed, thus making him/her

    liable to pay such costs.

    104. Accordingly, the appeal fails.

    105. M.A.T. No. 1134 of 2025 is dismissed on contest, thereby affirming the

    impugned judgment and order dated May 21, 2025 passed by the

    learned Single Judge in WPA No. 10640 of 2012, with costs assessed at

    Rs. 50,000/- to be paid by the Director, Transportation, Planning and

    Traffic Engineering Directorate, Government of West Bengal, Transport

    Department to respondent no.1 within a fortnight from date, that is, on

    or before March 23, 2026.

    106. CAN 2 of 2025 and CAN 3 of 2025 are disposed of accordingly.
    33

    2026:CHC-AS:382-DB

    107. Urgent certified copies, if applied for, be supplied to the parties upon

    compliance of all formalities.

    (Sabyasachi Bhattacharyya, J.)

    I agree.

    (Supratim Bhattacharya, J.)



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