The West Bengal Small Industries … vs M/S. Twinstar Industries And Others on 19 March, 2026

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    Calcutta High Court (Appellete Side)

    The West Bengal Small Industries … vs M/S. Twinstar Industries And Others on 19 March, 2026

    Author: Supratim Bhattacharya

    Bench: Sabyasachi Bhattacharyya, Supratim Bhattacharya

                                                                               2026:CHC-AS:445-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. 1694 of 2024
                                  IA No: CAN 1 of 2024
                                           with
                                 M.A.T. No. 1695 of 2024
                                  IA No: CAN 1 of 2024
    
    
         The West Bengal Small Industries Development Limited and Others
                                        Vs.
                       M/s. Twinstar Industries and Others
    
    
         For the appellants            :     Mr. Kamal Kr. Chattopadhyay,
                                             Mr. Mahendra Gupta,
                                             Ms. Rimi Chatterjee,
                                             Mr. Abhisekh Sikdar,
                                             Ms. Moumita Dhar,
                                             Ms. Saheli Dey
    
         For the respondents           :     Mr. Srijib Chakraborty,

    Mr. Aditya Mondal

    Heard on : 12.02.2026, 26.02.2026
    & 10.03.2026

    SPONSORED

    Reserved on : 10.03.2026

    Judgment on : 19.03.2026

    Sabyasachi Bhattacharyya, J.:-

    1. The West Bengal Small Industries Development Corporation Limited

    (WBSIDCL) and others have preferred the present appeals against a

    common judgment dated August 16, 2024 passed in two writ petitions,
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    being WPA 4280 of 2014 and WPA 22402 of 2024, setting aside an order

    of eviction dated July 19, 2023 passed by the Prescribed Authority,

    WBSIDCL against the writ petitioners/respondent nos. 1 and 2 and

    directing the WBSIDCL to renew and convert the short-term lease of the

    respondent no. 1 to long-term lease of 99 years pertaining to the

    application of the petitioners in this regard dated January 10, 2023 and

    to extend the benefits of two schemes floated by the WBSIDCL in favour

    of the petitioners in respect of Plot nos. K-10 and K-10/2, Behala

    Industrial Estate at 620, Kolkata-700 034 as well as to restore

    possession of the aforesaid plots to the writ petitioners/respondent nos.

    1 and 2.

    2. Respondent no. 1 is a proprietorship firm of the respondent no. 2,

    running its industry from the said plots.

    3. The turn of events leading to the present litigation are as follows:

    4. A lease of nine years was granted on June 8, 1989 by the WBSIDCL in

    favour of the respondent no. 1 in respect of the subject-plots, which

    expired on August 8, 1998. The appellants allege that the respondent no.

    1, even prior to the expiry of the lease, was a defaulter in payment of

    lease rent.

    5. On May 3, 2013, a notice of eviction was issued under Section 3(1) of the

    West Bengal Government Premises (Tenancy Regulation) Act, 1976

    (hereinafter referred to as “the 1976 Act”). An appeal having been

    preferred by the respondent nos. 1 and 2, the Appellate Authority passed

    an order on August 8, 2013 directing the respondent no. 1 to pay the
    3

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    arrear rent, out of which Rs. 4 lakh was to be deposited by August 16,

    2013 and the balance of Rs.2,26,000/- by September 16, 2013. The

    respondent no. 1 deposited Rs.3,26,140/- on August 8, 2013.

    Subsequently, the Appellate Authority extended the time for payment of

    the balance dues on October 9, 2013 and December 13, 2013

    respectively. Ultimately, an order of resumption under Section 4(2) of the

    1976 Act was issued by the appellants against the respondent no. 1 on

    January 28, 2014.

    6. A writ petition, being WPA 4280 of 2014, was preferred by the

    respondent nos. 1 and 2 against the said order of eviction, in which an

    order restraining the appellants from evicting the respondent nos. 1 and

    2 was passed on March 25, 2014, on condition of payment of the rent

    dues. On March 28, 2014, the said dues were paid by the said

    respondents in terms of the above order. Thereafter, respondent no. 1

    requested the appellant-Authorities for monthly rent bills from April,

    2014 by a written communication dated May 5, 2014.

    7. On February 18, 2021, the WBSIDCL issued a Scheme by Circular No.

    SB-1/2896/10/2020-21, which was further extended for 180 days vide

    Circular no. SB/1/1468/2022-23 dated August 25, 2022. Under the

    said Scheme, the existing allottees of the plots in the said industrial

    estate were granted an opportunity, upon payment of arrear rents, to

    have their short-term lease deeds renewed and converted to long-term

    leases.

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    8. The respondents applied for getting the benefit of the said Scheme on

    January 10, 2023.

    9. Subsequently, on June 21, 2023, WPA 4280 of 2014 got dismissed for

    default. On July 19, 2023, a second resumption order under Section 4(2)

    was passed by the appellant-authorities, against which a representation

    was given on July 25, 2023 by the respondent nos.1 and 2. The said

    respondents were heard on the same on August 31, 2023. However, vide

    order dated September 1, 2023, the said representation was rejected by

    the appellants.

    10. Subsequently, on September 11, 2023, a notice was issued by the

    appellant to the said respondents fixing September 14, 2023 (11 AM) for

    resumption of possession.

    11. On September 14, 2023 itself, respondent nos. 1 and 2 filed a writ

    petition being WPA 22402 of 2023 and served a copy thereof on the

    appellants, indicating that the matter would be taken up at 2 PM by the

    concerned Bench. On the self-same date, when the matter was taken up

    for hearing, the Court was informed that possession of the said plots had

    already been taken by the appellants, upon which the learned Single

    Judge was pleased to pass an order restraining the appellants from

    creating third party encumbrances and to direct the arrears of rent till

    March 1, 2023, as quantified by the appellants at Rs. 5,50,201/-, to be

    deposited by respondent nos. 1 and 2. On September 15, 2023, such

    amount was deposited by the said respondents.

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    12. Subsequently, on August 16, 2024, WPA 4280 of 2014 was taken up for

    hearing along with WPA 22402 of 2023 and the said writ petitions were

    disposed of by passing the judgment and order impugned in the present

    appeals.

    13. Learned counsel appearing for the appellants argues that upon expiry of

    the lease deed of respondent no.1 on August 8, 1998, the said

    respondent lost its right of possession. The subsequent orders under

    Section 4(2) of the 1976 Act for resumption of possession were merely in

    furtherance of the eviction order passed under Section 3(1) of the said

    Act on May 3, 2013.

    14. Due to subsistence of the order of stay passed initially in WPA 4280 of

    2014, resumption could not take place. Upon the said writ petition being

    dismissed for default on June 21, 2023, the second resumption order

    was passed and a notice for taking possession was also issued to the

    respondent nos. 1 and 2, specifically intimating them that possession

    would be taken on September 14, 2023 at 11 am. Thus, it is submitted

    that there was no irregularity in such resumption, since no stay order

    was subsisting at that point of time and due process of law had been

    followed.

    15. Learned counsel for the appellants further contends that respondent

    nos. 1 and 2 did not comply with the requirements of the statute by

    applying in time for renewal and depositing therewith arrears of rent and

    interest thereon. Thus, there was no question of renewal of the lease of

    respondent no. 1 at any point of time.

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    16. It is further argued that the respondent no.1 was not entitled to the

    benefit of the Scheme dated February 18, 2021, subsequently extended

    on August 25, 2022, since the said respondent was not an “existing

    allottee” upon the expiry of its lease. Secondly, the Scheme contemplated

    an application to be filed for getting the benefit of the same within 30

    days with accompanying deposit of all outstanding arrears of rent.

    Moreover, as a pre-condition of the Scheme, there could not be any

    pending litigation. None of the said conditions were, however, complied

    with by respondent no. 1. Thus, it is submitted that respondent no. 1

    was never entitled to get the benefit of the Scheme.

    17. Addressing the Court on an unreported judgment of this Court in

    Continental Chemical Corporation v. West Bengal Small Industries

    Development Corporation Limited and Ors. (WPA No. 183 of 2024), it is

    submitted that in the said case, there was a direction of the Division

    Bench on the WBSIDCL to consider the case of the writ petitioner

    therein; furthermore, draft deeds had been exchanged several times

    between the parties and were approved by the authorities. Thus, the

    question of res judicata was taken into consideration, Furthermore, there

    was an order directing the writ petitioner to comply with the Managing

    Director‟s order to have the lease deed registered in its favour. Hence, the

    context was different than the present case in Continental Chemical

    Corporation (supra)1.

    1
    Continental Chemical Corporation v. West Bengal Small Industries Development
    Corporation Limited and Ors. (WPA No.
    183 of 2024)
    7

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    18. In the case of M/s. Gravo Prints, which was given the benefit of the

    Scheme, which is cited by respondent nos. 1 and 2 for the purpose of

    claiming similar relief, it is contended by the appellants that the said

    entity had continued to pay monthly rent and had applied for renewal of

    lease on March 25, 2012, that is, within time. The prayer for renewal was

    all along pursued and the renewal and conversion offer was subsisting

    till 2018. After the Scheme was introduced, it was availed of by M/s.

    Gravo Prints and accordingly the appellant authority passed an order

    allowing it to pay the arrear amounts of rent and consequently, a long-

    term lease deed was executed in its favour. However, it is submitted that

    in the present case, respondent no. 1 never exercised its right of renewal,

    nor made payment of arrear rents along with the application filed for

    getting the benefit of the Scheme. That apart, a valid eviction order was

    passed under Section 3(1) of the 1976 Act and resumption occurred

    under Section 4 thereof. Hence, it is argued that M/s. Gravo Prints stood

    on a different footing that respondent no. 1 and the latter cannot claim

    parity with M/s. Gravo Prints insofar as the grant of the benefit of the

    Scheme is concerned.

    19. The appellants rely on an unreported judgment of the Supreme Court in

    the matter of West Bengal Small Industries Development Corporation Ltd.

    & Ors. v. M/s. Sona Promoters Pvt. Ltd. & Ors. passed in Civil Appeal No.

    2201 of 2020, where the Hon‟ble Supreme Court was pleased to observe

    that the eviction proceedings initiated by the WBSIDCL under the 1976

    Act was without jurisdiction, since the subject-plots did not satisfy the
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    requirements of the definition of “Government premises” within the

    meaning of Section 2(a), read with Section 2(c), of the said Act and that

    proceedings were initiated under the West Bengal Public Land (Eviction

    of Unauthorized Occupants) Act, 1962. However, in the present case,

    there is no dispute regarding the 1976 Act being applicable.

    20. Learned Counsel for the appellants next cites Deepak Kejriwal v. The

    State of West Bengal and others (WPO No. 518 of 2013), a Single Bench

    Judgment of this Court, where the Court held that in absence of any

    agreement for fructifying the proposed renewal of any lease deed between

    the parties, there could not be any occasion to renew the lease. It was

    further observed that merely by acceptance of the occupation charges on

    calling it “rent”, as the writ petitioner therein continued its

    accommodation, does not amount to a renewal of the lease between the

    parties since there was no consensus ad idem between the parties.

    21. Learned counsel next cites Gulshan Kumar Gulati and Another v. West

    Bengal Small Industries Development Corporation Limited and others

    (WPO No. 1610 of 2023), where this Court had observed that an eviction

    order dated November 2, 2012 passed in a proceeding under the 1976

    Act was implemented by eviction, which was justified. The objection as to

    inherent lack of jurisdiction of the concerned authority was turned down

    since the writ petitioners therein had participated in the proceedings

    under the 1976 Act.

    22. It is argued that the contention of respondent nos. 1 and 2 that there

    was “legal malice” on the part of the appellant-authorities is not tenable,
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    since the appellants adopted due process of law in passing the eviction

    order and having it implemented by resumption of possession against

    the respondent no. 1, whose lease had expired by efflux of time and also

    by virtue of the notice under Section 3(1) of the 1976 Act since the

    respondent no. 1 was a defaulter in payment of rent. It is argued that the

    resumption order was not required to be supported by detailed reasons

    since it was merely in furtherance of the eviction order and was within

    the statutory powers of the appellants to pass.

    23. Learned counsel for respondent nos. 1 and 2, on the other hand, argues

    that despite the expiry of the lease, respondent no. 1 remained a tenant

    in respect of such plots, since the appellant-authorities continued to

    receive rent from them even after such expiry.

    24. Moreover, it is contended that even after the order of eviction was passed

    under Section 3(1) of the 1976 Act, respondent no. 1 continued to pay

    substantial amounts of arrears of rent at various point of time, for

    instance Rs. 3,26,000/- on August 8, 2013 and Rs. 3,50,000/- on March

    28, 2014, which were duly accepted by the appellant-authorities.

    25. It is thus argued that there was substantial compliance of the provisos to

    section 3(2) of the 1976 Act, which learned counsel for respondent nos. 1

    and 2 seeks to equate with the beneficial provisions under Section 7 of

    the West Bengal Premises Tenancy Act, 1997 and Section 17 of its

    predecessor statute of 1956.

    26. Learned counsel for respondent nos. 1 and 2 next argues that on May 5,

    2014, the said respondent had sought issuance of rent bills after clearing
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    its dues, thus, in effect, expressing its intention to have the lease

    renewed. Hence, it cannot be said that there was no renewal application

    as such from the respondent no. 1. If the rent bills were issued by the

    appellants in terms of such request, there would not be any occasion for

    respondent no. 1 to make further defaults. The appellants, it is argued,

    cannot take advantage of their own wrong by sitting tight over such

    request for issuing rent bills on the one hand and alleging absence of any

    prayer for renewal of lease by the contesting respondents on the other.

    27. Learned counsel for the contesting respondents next argues that M/s.

    Gravo Prints were given the benefit of the Scheme-in-question despite

    being a defaulter, although its lease had expired due to efflux of time at

    the relevant juncture. In spite of the same, it was treated as an „existing

    allottee‟ for the purpose of the Scheme by the appellants and given the

    benefit of the Scheme by converting its lease deed to a long-term lease.

    28. It is contended that the 1976 Act and the Scheme floated by the

    appellant-authorities are beneficial in nature and, as such, ought to be

    construed in favour of the beneficiaries. Respondent no. 1 applied within

    the extended time stipulated in the Scheme; thus, there could not be any

    bar to grant its benefit to respondent no. 1.

    29. As regards the clauses in the Scheme contemplating that there should be

    no pending litigation and all arrear of rents should be paid, it is

    submitted that those were not preconditions of making an application to

    get the benefit of the Scheme. It is argued that even after making an

    application, upon a calculation of the arrears of rent being furnished by
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    the appellants, the duty to pay such rent would be cast on the applicant.

    Again, only upon the application being sanctioned in principle could

    there be any occasion for withdrawal of all pending litigations. Thus, it is

    contended that by not granting the benefit of the Scheme to respondent

    no. 1, whereas such benefit was extended to M/s Gravo Prints, which

    stood on similar fooring, the appellants squarely violated Article 14 of the

    Constitution of India. Learned counsel for respondent nos. 1 and 2 also

    relies on other instances where similar benefit of the Scheme was given

    to allottees whose leases had expired long prior thereto.

    30. Learned counsel for respondent nos. 1 and 2 further argues that the

    action of the respondent no. 1 was tainted by “legal malice”. Despite the

    request of respondent no. 1 for issuance of rent bills, which

    tantamounted to expressing intention of renewal of the lease, and the

    pendency of the application filed by the respondent no. 1 to get the

    benefit of the Scheme, the appellant-authorities, without disposing of the

    same, proceeded to pass a further resumption order under Section 4(2)

    of the 1976 Act immediately after WPA 4280 of 2014 was dismissed for

    default.

    31. Legal malice was further manifest in the appellants‟ bid to oust

    respondent nos. 1 and 2 from possession of the subject plots on the very

    day when the subsequent writ petition, being WPA 22402 of 2024, was

    moved before a learned Single Judge of this Court, despite a copy of such

    writ petition and notice of moving the same at 2 pm on the date of

    dispossession being given to the appellants, without waiting for the
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    outcome of the said writ petition. Thus, it is argued that the acts of the

    appellants were vitiated by palpable arbitrariness, which comes clearly

    within the category of legal malice.

    32. Learned counsel cites State of A.P. and others v. Goverdhanlal Pitti,

    reported at (2003) 4 SCC 739, for the above proposition. In the said case,

    the Hon‟ble Supreme Court observed that legal malice on the part of the

    State should be understood to mean that the action of the State is not

    taken bona fide for the purpose of the Land Acquisition Act and it had

    been taken only to frustrate the favourable decisions obtained by the

    owner of the property against the State in the eviction and writ

    proceedings.

    33. Learned counsel places reliance on Continental Chemical Corporation

    (supra)2, where the court held that the writ petitioner therein was to be

    given the benefit of the Scheme at par with M/s. Gravo Prints, the latter

    being alleged to be a defaulter but being given a special favour by the

    authorities in respect of the self-same industrial estate as the present

    one. Upon interpreting the language of the concerned Circulars floating

    the Scheme-in-question, it was held that in the case of beneficial

    legislations and/or Schemes, the interpretation of widest amplitude, to

    advance the purpose of the legislation or the Scheme, should be given so

    as not to restrict the same.

    2
    Continental Chemical Corporation v. West Bengal Small Industries Development
    Corporation Limited and Ors. (WPA No.
    183 of 2024)
    13

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    34. It is further pointed out that the appellants themselves offered to renew

    the lease deed upon payment of Rs. 30 lakh per Cottah, as recorded by

    the learned Single Judge in the order dated September 21, 2023. By

    doing so, it is argued that the appellants gave up their right to evict the

    respondent nos. 1 and 2. It is submitted that it was the incumbent duty

    of the appellants to consider the application of the respondent no. 1 for

    getting the benefit of the Scheme and to give such benefit to the said

    respondent upon compliance of due formalities. In the case of M/s.

    Gravo Prints, it is submitted that its lease had also expired long back in

    1992 and an eviction order was passed, which had been stayed. M/s.

    Gravo Prints was also defaulter and in its case, it was agreed by the

    appellants that it would withdraw all the legal cases to get the benefit of

    the Scheme, therefore, contemplating future withdrawal post-application

    as a valid mode of granting the benefit of the Scheme. Even in the said

    case, M/s. Gravo Prints was given opportunity to pay the arrear rents

    later. Thus, the argument of non-applicability of the Scheme to the

    present respondent no. 2 is not a valid contention.

    35. Accordingly, it is submitted that the learned Single Judge was justified in

    passing the impugned judgment and the same ought not to be interfered

    with in appeal.

    36. Considering the arguments of the parties and in the light of the materials

    placed before the Court, it transpires that the present adjudication

    hinges on the following issues:-

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    (i) Whether respondent no. 1 is entitled in law to the renewal of its

    tenancy;

    (ii) Whether respondent no. 1 is entitled to the benefit of the Scheme

    dated February 18, 2021, subsequently extended on August 25,

    2022;

    (iii) Whether there is any violation of Article 14 of the Constitution of

    India against respondent nos.1 and 2;

    (iv) Whether there was any legal malice in the impugned action of the

    WBSIDCL.

    37. The said issues are decided as follows:

    (i) Whether respondent no. 1 is entitled in law to the renewal of

    its tenancy

    38. Admittedly, the lease granted to respondent no. 1 in respect of the

    subject-plots on June 8, 1989 expired by efflux of time on August 8,

    1998.

    39. A notice under Section 3(1) of the 1976 Act was also given to respondent

    nos. 1 and 2. The effect of such notice was to terminate the tenancy,

    since sub-section (1) of Section 3 provides that every tenancy held by a

    tenant in respect of a Government premises shall stand terminated upon
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    the expiry of the period referred to in a notice to quit served upon such

    tenant in the prescribed manner.

    40. Hence, there cannot be any manner of doubt that the tenancy of

    respondent no.1 stood expired, both by efflux of time and upon issuance

    of the notice under Section 3(1). The renewal of lease under the 1976 Act

    is governed by the first three provisos under Section 3(2) of the said Act

    as well as Rule 5 of the West Bengal Premises (Tenancy Regulation)

    Rules, 1976 (for short, “the 1976 Rules”).

    41. Section 3 of such Act is reproduced for convenience below:

    “3. (1) Every tenancy held by a tenant in respect of a Government premises shall
    stand terminated upon the expiry of the period referred to in a notice to quit
    served upon such tenant in the prescribed manner.
    (2) A tenancy in respect of a Government premises shall stand automatically
    terminated without any notice to quit where the tenant has,–
    (ia) subsequently built a house or acquired (by purchase, gift, inheritance, lease,
    exchange or otherwise) a house or an apartment, either in his own name or in the
    name of any member of his family, within a reasonable distance from such
    Government premises.

    Explanation.–For the purposes of this section and section 3A,–

    (a) “appartment” shall have the same meaning as in the West Bengal
    Apartment Ownership Act, 1972
    ;

    (b) “family” shall include parents and other relations of the tenant who
    ordinarily reside with him and are dependant on him;

    (c) “reasonable distance” shall mean any distance not exceeding twenty-
    five kilometers, or

    (ii) made default in payment of rent for three consecutive months:

    Provided that where the tenancy has terminated on account of default in
    payment of rent for three consecutive months the prescribed authority may,
    upon application made by the tenant within such time as may be prescribed
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    and upon deposit of all the arrears of rent together with interest at the
    prescribed rate, grant renewal of the tenancy in favour of the tenant:

    Provided further that the prescribed authority may, on sufficient
    cause being shown, grant renewal of the tenancy in favour of the tenant on
    deposit of fifty per cent of the arrears of rent along with the application for
    renewal of tenancy and direct the tenant to deposit the balance of the arrears
    of rent with interest on the entire amount at the prescribed rate in twelve
    monthly installments commencing from the month following the month of such
    renewal of tenancy, and if the tenant fails to deposit any such installment the
    tenancy so renewed shall stand automatically terminated:

    Provided further that the prescribed authority may, if it is satisfied
    that the tenant has failed to pay rent due to circumstances beyond his control
    and is not in a position to deposit fifty per cent of the arrears of rent along
    with the application for renewal of tenancy, grant renewal of the tenancy in
    favour of the tenant on deposit of twenty-five per cent of the arrears of rent
    along with the application for renewal of tenancy and direct the tenant to
    deposit the balance of the arrears of rent with interest on the entire amount
    at the prescribed rate in such number of monthly instalments, not less than
    twelve and not more than thirty six, as the prescribed authority may consider
    reasonable, commencing from the month following the month of such renewal
    of tenancy, and if the tenant fails to deposit any such instalment, the tenancy
    so renewed shall stand automatically terminated:

    Provided also that notwithstanding the termination of the tenancy
    the State Government or the Government undertaking, as the case may be,
    shall be entitled to recover all arrears of rent for the period for which the
    tenancy subsisted and mesne profits thereafter for so long as the tenant
    remained in occupation of the premises.

    (3) (a) Where any Government premises allotted to a tenant remains under
    lock and key for a period of more than three consecutive months or where the
    tenant or any member of his family is not ordinarily resident of such
    Government premises, the tenancy in respect of such Government premises
    shall stand automatically terminated:

    Provided that if the prescribed authority is satisfied that the
    circumstances, under which such Government premises remains under lock
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    and key for more than three consecutive months or the tenant or any member
    by his family is not ordinarily a resident of such Government premises, are
    beyond the control of the tenant, it may allow the tenancy to subsist:

    Provided further that the prescribed authority shall give the tenant
    a notice and an opportunity of being heard before such termination:

    Provided also that an appeal shall lie to the Appellate Authority
    against an order determining non-occupation for a period of three consecutive
    months or non-residence by the tenant or any member of his family under the
    above provisos within fifteen days from the date of the order passed by the
    prescribed authority and, in such case, the decision of the Appellate Authoirty
    shall be final.

    (b) A tenant shall be deemed to be ordinarily resident of a
    Government premises if he or any member of his family generally resides in
    such Government premises for not less than ninety days in a period of four
    consecutive months.

    (c) The provisions of this sub-section shall have effect
    notwithstanding anything contained in this Act or in any other law for the
    time being in force or in any instrument having effect by virtue of any law
    other than this Act, or in any decree or order of any court, tribunal or other
    authority, and nothing contained in the Transfer of Property Act, 1882, or the
    Indian Contract Act, 1872, or the West Bengal Premises Tenancy Act, 1956,
    shall apply, or shall be deemed over to have applied, to the tenancy as
    aforesaid and such tenancy shall take effect, and shall be deemed always to
    have taken effect, as if the Transfer of Property Act, 1882, or the Indian
    Contract Act, 1872
    , or the West Bengal Premises Tenancy act, 1956, had not
    been passed.”

    42. No dispute has been raised by the respondent nos. 1 and 2 as to the

    respondent no. 1 being a defaulter in payment of rent when the eviction

    order was passed. Each of the first three provisos to Section 3(2)

    stipulates an application to be filed within the prescribed time and

    simultaneous deposit of arrears of rent, together with interest at the
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    prescribed rate, as a pre-condition for renewal of the lease. Section 2(d)

    of the 1976 Act defines “prescribed” as prescribed by Rules made under

    the said Act, thus referring to the 1976 Rules.

    43. Rule 5(1) of the said Rules stipulates the prescribed period to be one

    month from the date on which the tenancy stands terminated on

    account of default in payment of rent for three consecutive months and

    Rule 5(2) reiterates that all such applications shall be accompanied by

    deposit of all arrears of rent together with interest at the prescribed rate.

    The use of the term “shall” makes it mandatory for such deposit to be

    made simultaneously with the application. Sub-rule (3) of Rule 5

    provides that the rate of interest to be charged an arrear of rent shall be

    such as may be notified by the State Government from time to time.

    44. In the present case, there is no evidence on record to show that the

    respondent no. 1 made any application for renewal of its tenancy at any

    point of time, let alone depositing the arrear rents with interest along

    with the same. Although learned counsel for the respondent nos. 1 and 2

    tries to impress upon the court that the request dated May 5, 2014 made

    by respondent no. 1 to the appellants for issuance of monthly rent bills

    tantamount to expression of interest for renewal, we are unable to agree

    with such contention. In the said request, we do not find any whisper or

    intention to renew but merely the assertion that monthly rent bills ought

    to be issued to the respondent no. 1.

    19

    2026:CHC-AS:445-DB

    45. Thus, this Court comes to the finding that the respondent nos. 1 and 2

    were not entitled to renewal of the lease granted in favour of respondent

    no. 1 under the provisions of the 1976 Act or the 1976 Rules.

    46. Another aspect of the contesting respondents‟ arguments is that the

    1976 Act being a beneficial piece of legislation, the provisions

    enumerated in the provisos to Section 3(2) of the said Act ought to be

    given liberal interpretation, by drawing analogy from the provisions of

    the West Bengal Premises Tenancy Acts of 1956 and 1997, as

    incorporated respectively in Section 17 and section 7 thereof.

    47. However, the said argument is not tenable in the eye of law. The premise

    of the provisions of Section 3 of the 1976 Act stands on an entirely

    different footing than that of the Rent Control laws mentioned above.

    Under the 1956 and 1997 Acts, an additional layer of protection has

    been given to tenants, who have previously committed default in

    payment of rent, in a suit for eviction instituted against them, to afford a

    second opportunity to pay the arrear rents before they are ultimately

    evicted. However, the provisions of the 1976 Act, although beneficial to

    some extent, are more rigorous than the Rent Control Laws inasmuch as

    Government premises have been treated on a different footing than other

    premises, apparently due to administrative exigencies and the public

    interest element involved in dealing with such premises. Some amount of

    exigency in the eviction process with regard to Government premises is

    inbuilt in the 1976 Act, insofar as no eviction proceeding is contemplated

    thereunder prior to eviction, unlike the Public Premises (Eviction of
    20

    2026:CHC-AS:445-DB

    Unauthorised Occupants) Act, 1971. Upon an order being passed under

    Section 3(1) of the 1976 Act, the tenancy stands terminated

    automatically by operation of Section 3(2) thereof.

    48. As per the scheme of the 1976 Act, a mere notice under Section 3(1)

    would suffice to terminate the tenancy outright upon the expiry of the

    notice period. Sub-section (1) of Section 3 itself provides so, which is

    further bolstered by sub-section (2), which stipulates that a tenancy in

    respect of a Government premises shall stand “automatically terminated”

    without any notice to quit where the tenant has violated any of the

    subsequent provisions, including making default in payment of rent for 3

    consecutive months.

    49. Section 4 of the 1976 Act is only a post-termination exercise and does

    not even require any further notice to be given to the tenant by the

    Government authorities. Sub-section (1) of Section 4 provides that upon

    termination of a tenancy under any of the provisions of Section 3, the

    tenant “shall forthwith restore vacant possession” of the premises

    occupied by him in favour of the prescribed authority. Sub-Section (2) of

    Section 4 stipulates that if the tenant fails to so restore, the prescribed

    authority or any officer authorized by him in this behalf “may take such

    steps or use such force” as may be necessary to take possession of the

    premises and “may also enter into such premises” for the aforesaid

    purpose.

    21

    2026:CHC-AS:445-DB

    50. Thus, the provisos to section 3(2), which are subservient to the main

    provision stipulated therein, cannot be equated with the benefits given

    under Sections 7 and 17 of the 1997 and 1956 Acts respectively.

    51. Moreover, the first three provisos to Section 3(2), read with Rule 5 of the

    1976 Rules, mandatorily contemplate an application to be made by the

    tenant, along with deposit of all arrears of rent together with interest at

    the prescribed rate, as a precondition for attracting the said provisos.

    52. That apart, even after such application is made, an element of discretion

    is left to the authorities since the term “may” has been used to qualify

    the grant of renewal of the tenancy. Such discretion is, by its very

    nature, restrictive insofar as the first proviso is concerned. However,

    there is more scope of exercise of discretion and decision-making by the

    prescribed authority in the situations envisaged in the second and third

    provisos. The second proviso stipulates that such renewal of tenancy will

    be made on deposit of 50 per cent with the application, provided

    “sufficient cause” is shown. Again, the third proviso envisages that such

    renewal may be granted if the Prescribed Authority “is satisfied that the

    tenant has failed to pay rent due to circumstances beyond his control

    and is not in a position to deposit 50 per cent”, upon deposit of 25 per

    cent at the outset and thereafter in terms of the instalments provided in

    the said proviso.

    53. Due to the above reasons, no manner of analogy can be drawn between

    the provisions of the Rent Control laws and those of the proviso to
    22

    2026:CHC-AS:445-DB

    Section 3(2) of the 1976 Act insofar as the protection given to tenants is

    concerned.

    54. Thus, this Court comes to the finding that the respondent nos. 1 and 2

    were not entitled to renewal of the lease granted in favour of the

    respondent no. 1 under the provisions of the 1976 Act or the 1976 Rules,

    in view of the said respondents having not complied with the mandatory

    prerequisites for such grant of renewal as envisaged in the said

    provisions.

    (iii) Whether respondent no. 1 is entitled to the benefit of the

    Scheme dated February 18, 2021, subsequently extended on

    August 25, 2022

    1. The Scheme-in-question was floated vide Circular No.

    SB-1/2836/10/2020-21 dated February 18, 2021 and further extended

    for 180 days vide Circular No. SB/1/1468/2022-23 dated August 25,

    2022. Contrary to the contention of the appellants, the respondent no.1

    had made an application for grant of the benefit of the Scheme to it

    within the extended period of 180 days, on January 10, 2023 to be

    precise. Thus, it cannot be said that the benefit of the Scheme could not

    be granted to respondent no. 1 due to delay in making the application.

    2. The next ground of objection of the appellants to the extension of such

    Scheme to the respondent no.1 is that the latter was not an “existing

    allottee” at the relevant juncture.

    23

    2026:CHC-AS:445-DB

    3. The concept of „existing allottee‟ has been explained at length in

    Continental Chemical Corporation (supra)3. The scope of the said

    expression was elaborated in the said report to include both lessees and

    non-lessee allottees. The provisions of the original Scheme, contained in

    the minutes of a meeting dated October 13, 2020, was discussed in the

    said judgment and held to be a special Scheme for “old and existing

    entrepreneurs of Behala Industrial and Commercial Estate”. Hence, the

    purpose of the Scheme was to extend the benefit of renewal and

    conversion of short-term lease to long-term lease to the existing

    entrepreneurs operating in the said industrial estate. Such Scheme was

    modified on February 18, 2021, referring to the 359th meeting of the

    WBSIDCL held on February 10, 2021, in which it was decided to launch

    a special scheme for “conversion of lease from short-term to long-term in

    respect of the existing allottees of Behala Industrial and Commercial

    Estate”.

    4. Since both the expressions, “allottees” and “lease”, were used in the

    aforesaid Circulars, the purpose of the Scheme was interpreted to

    include all allottees in respect of the industrial estate. In fact, there is a

    marked difference between “existing allottees” and “existing lessee”.

    Whereas the former expression has been used in the Scheme, the latter

    has been deliberately avoided, thereby expressing the clear intention of

    the Scheme to make its benefits available to all allottees who were in

    3
    Continental Chemical Corporation v. West Bengal Small Industries Development
    Corporation Limited and Ors. (WPA No.
    183 of 2024)
    24

    2026:CHC-AS:445-DB

    possession of the subject-plots at the relevant juncture, making such

    consideration independent of the criterion of whether any lease subsisted

    or was ever granted to such allottee at all. Such divergence of the

    notions of „allottee‟ and „lessee‟ in the Scheme itself clearly mandates that

    irrespective of the subsistence of a valid lease, the benefit of the Scheme

    could be availed of by any allottee on the plots within the estate. There

    cannot be any doubt that at all relevant points of time the present

    respondent no.1 was an allottee, having the further protection of a lease,

    although the latter protection expired subsequently.

    5. Hence, the benefit of the Scheme has to be interpreted to be available to

    the respondent no.1 as well, in the capacity of an existing allottee in the

    sense that it was still in occupation of the subject-plots at the relevant

    juncture as an allottee of an industrial plot for the purpose of carrying

    out its industrial activities in the capacity of an entrepreneur.

    6. Moving on to the conditions as envisaged under the Scheme, the very

    language of the Scheme indicates that the arrears could be cleared and

    pending litigation could be withdrawn even after the application for

    availing the benefits of the Scheme being made. There is nothing in the

    Scheme to show that such payment of arrears and non-pendency of

    litigation was a pre-condition of even making an application for getting

    the benefit of the Scheme. Moreover, by its very nature, the condition of

    withdrawal of litigation and payment of all arrears, particularly the

    former, cannot precede the making of an application, since, in the event

    the benefit of the Scheme being refused to the applicant after
    25

    2026:CHC-AS:445-DB

    withdrawing all litigation, the applicant would be remediless against the

    WBSIDCL. Such a situation cannot be contemplated under a beneficial

    Scheme, which the 2020 as well as the 2021 Scheme evidently are.

    Accordingly, such argument on the part of the appellants has also to be

    turned down.

    7. The court cannot overlook the fact that, albeit in terms of the different

    orders of the Appellate Authority and the court, the respondent nos.1

    and 2 had paid all arrears as quantified by the appellants themselves

    before such Authorities/courts at different points of time, which would

    be evident from the different orders placed this court. The appellant-

    authorities also accepted such amounts from the respondent no.1.

    Although mere acceptance of rent does not confer the status of a tenant

    to a defaulter otherwise, whose tenancy has already expired, nor can it

    be construed as an automatic renewal of the lease, insofar as the

    Scheme-in-question is concerned, the payment of all arrears at every

    point of time, in terms of the calculations made by the appellants

    themselves, can definitely be construed to be substantial compliance of

    the terms of the Scheme regarding payment of all arrears.

    8. In fact, the appellants themselves had given out that they had no qualms

    to renew the lease of the respondent no.1 subject to payment of an

    amount of Rs.30,00,000/- per cottah, as recorded in the order dated

    September 21, 2023. Hence, the appellants are evidently not averse to

    such renewal or granting the benefit of the Scheme to the respondent

    no.1, subject to fulfilment of all necessary conditions. The amount of
    26

    2026:CHC-AS:445-DB

    Rs.30,00,000/- per cottah is definitely a ballpark amount, in the absence

    of any disclosure of the breakup or basis thereof. However, the

    agreement of the appellants in principle to give the benefit of the Scheme

    to the respondent no.1 was evident by such offer itself.

    9. Thus, this issue is decided in favour of the respondent nos.1 and 2, since

    the respondents are eligible for getting the benefit of the Scheme-in-

    question.

    (iii) Whether there is any violation of Article 14 of the Constitution

    of India against respondent nos.1 and 2

    10. Respondent nos.1 and 2 have drawn analogy from similar benefit of the

    Scheme being given to one M/s. Gravo Prints. The appellants seek to

    distinguish between the attending circumstances of the two cases on

    several grounds. However, such grounds are merely illusory and

    superficial distinctions and cannot afford a reasonable basis of

    discriminating between the respondent no.1 in the present case and

    M/s. Gravo Prints.

    11. As discussed in Continental Chemical Corporation (supra)4 in respect of

    M/s. Gravo Prints as well, its lease had expired long back and it was also

    a defaulter in payment of rent. M/s. Gravo Prints was granted liberty to

    deposit the arrears of rent subsequent to its application to come under

    4
    Continental Chemical Corporation v. West Bengal Small Industries Development
    Corporation Limited and Ors. (WPA No.
    183 of 2024)
    27

    2026:CHC-AS:445-DB

    the Scheme and was treated to be an existing allottee for the purpose of

    the Scheme despite its lease having already been terminated previously.

    12. M/s. Gravo Prints had deposited the arrears of rent as claimed. The

    respondent no.1 in the present case has also deposited arrears of rent as

    per the calculation of the appellant-Authorities, in terms of the

    submissions made by the appellants in court, at various points of time.

    13. Moreover, despite the respondent no.1 having specifically applied for

    getting the benefit of the Scheme within the extended period of 180 days

    as per the second Circular, such application was not decided at all by

    the appellant-authorities at any point of time. Unless the same was

    decided and an opportunity was given to the respondent no.1 to deposit

    all arrears and to withdraw pending litigation, which opportunities were

    given to M/s. Gravo Prints, it could not be said that the present

    respondent no.1 was treated on equal footing as M/s. Gravo Prints or

    that there was no discrimination between the two.

    14. It is trite law that a Government Scheme is in the nature of a benefit and

    a privilege and no automatic right as such to get such benefit is

    conferred on an eligible applicant. However, once such privilege is

    granted to an entity, all other entities standing on similar footing

    automatically acquire a right to get similar treatment from the State.

    After all, it is more than well-settled that State action (even in

    contractual matters) has to stand on a much higher pedestal than that of

    an individual citizen and cannot be manifestly discriminatory or

    arbitrary.

    28

    2026:CHC-AS:445-DB

    15. Tested on such anvil, it is clear that the appellant no.1, which comes

    within the ambit of Article 12 of the Constitution of India, discriminated

    between the respondent no.1 and M/s. Gravo Prints and other similar

    entities which were given the benefit of the Scheme, in a patently

    arbitrary manner, without any rationale.

    16. The facts of Deepak Kejriwal (supra)5 and Gulsan Kumar Gulati (supra)6

    are not applicable to the present case since in the former, the subject-

    matter of allegation was a challenge to the Circular dated August 18,

    2022 and fixation of the arrear rents in the facts of the cases, in which

    context it was held that mere acceptance of occupation charges does not

    tantamount to automatic renewal of the lease and that the respondents

    therein had never agreed to the rent proposed by the writ petitioner in

    the former case, whereas in the latter, the applicability of the Scheme-in-

    question was not under consideration but a challenge to the jurisdiction

    of the authorities to pass an eviction order was raised on the ground that

    subject-plots were not “Government premises” under the 1976 Act,

    which was turned down by the Court on the grounds mentioned in the

    judgment.

    17. Accordingly, it is held that the fundamental right of equality guaranteed

    under Article 14 of the Constitution of India, which was available to the

    respondent nos.1 and 2, was violated by the impugned action of the

    appellants.

    5
    Deepak Kejriwal v. The State of West Bengal and others (WPO No. 518 of 2013)
    6
    Gulsan Kumar Gulati and Another v. West Bengal Small Industries Development
    Corporation Limited and others
    (WPO No. 1610 of 2023)
    29

    2026:CHC-AS:445-DB

    (iv) Whether there was legal malice in the action of the WBSIDCL

    18. The tests of „legal malice‟ were laid down in Paragraph Nos.12 to 14 of

    Goverdhanlal Pitti (supra)7. The contents of the said paragraphs are set

    out verbatim below:

    “11. The last submission made is that since the school building
    was in a dangerous condition and the school having been already shifted
    at an alternative site, this Court in exercise of its power under Article 136
    of the Constitution of India should refuse to interfere in the order of the
    High Court. In the alternative, it is prayed that the State Government be
    directed to reconsider its decision for retaining the school building as the
    school stands shifted to a new location.

    12. The legal meaning of malice is “ill-will or spite towards a
    party and any indirect or improper motive in taking an action”. This is
    sometimes described as “malice in fact”. “Legal malice” or “malice in law”

    means “something done without lawful excuse”. In other words, “it is an
    act done wrongfully and wilfully without reasonable or probable cause,
    and not necessarily an act done from ill feeling and spite. It is a
    deliberate act in disregard of the rights of others”. (See Words and
    Phrases Legally Defined, 3rd Edn., London Butterworths, 1989.)

    13. Where malice is attributed to the State, it can never be a case
    of personal ill-will or spite on the part of the State. If at all it is malice in
    legal sense, it can be described as an act which is taken with an oblique
    or indirect object. Prof. Wade in his authoritative work on Administrative
    Law (8th Edn., at p. 414) based on English decisions and in the context of
    alleged illegal acquisition proceedings, explains that an action by the
    State can be described mala fide if it seeks to “acquire land” “for a
    purpose not authorised by the Act”. The State, if it wishes to acquire land,
    should exercise its power bona fide for the statutory purpose and for none
    other.

    7
    State of A.P. and others v. Goverdhanlal Pitti, reported at (2003) 4 SCC 739
    30

    2026:CHC-AS:445-DB

    14. Legal malice, therefore, on the part of the State as attributed
    to it should be understood to mean that the action of the State is not
    taken bona fide for the purpose of the Land Acquisition Act and it has
    been taken only to frustrate the favourable decisions obtained by the
    owner of the property against the State in the eviction and writ
    proceedings.”

    19. As per the above ratio, there could not be any element of personal ill-will

    or spite when an allegation of legal malice is levelled against the State.

    Such malice has to be in the legal sense, described to be an act which is

    taken with an oblique or indirect object. Although, in the said case, the

    possession of the land was taken de hors the purposes of the Land

    Acquisition Act and to frustrate favourable decisions which had already

    been obtained by the owner of the property against the State in eviction

    and writ proceedings, which circumstances are not directly applicable

    here, legal malice is manifest in the present case on a somewhat different

    footing.

    20. The first ingredient of legal malice can be found in the deliberate action

    on the part of the appellants to thwart the outcome of the writ petition,

    being W.P.A. 22402 of 2023. On the very date when it was filed, the

    appellants took over possession of the subject-plots by evicting the

    respondent nos.1 and 2, despite being fully aware of and being served

    with a copy of the writ petition. No doubt, the appellants had previously

    passed the second resumption order under Section 4(2) of the 1976 Act

    on July 19, 2023 and had given a notice to the respondent nos.1 and 2

    on September 11, 2023, fixing September 14, 2023 (11:00 AM) as the
    31

    2026:CHC-AS:445-DB

    date of taking possession, yet, after coming to know that a writ petition

    had been filed and would be taken up for hearing at 02:00 PM on the

    self-same day, it was a manifest attempt on the part of the appellant-

    Authorities to frustrate the outcome of the said challenge by going ahead

    with the dispossession of the respondent nos.1 and 2 in the teeth of such

    pendency, in spite of the concerned Bench having expressed its intention

    to take up the matter at 02:00 PM on the same day, without awaiting the

    outcome of such motion.

    21. Even earlier, the appellant had hastened to pass a second resumption

    order on July 19, 2023, soon after the previous writ petition bearing

    W.P.A. No. 4280 of 2014 was dismissed for default on June 21, 2023.

    The appellants were fully aware that throughout the pendency of W.P.A.

    No. 4280 of 2014, there was a subsisting order restraining the appellants

    from evicting the respondent nos.1 and 2. Thus, taking advantage of the

    dismissal of the said matter for default and the consequential vacating of

    the said restraint order, a second notice of resumption was given by the

    appellants in hot haste, before the respondent nos.1 and 2 could take

    steps for restoration of their earlier application.

    22. The above modus operandi of the appellant-authorities reeks of palpable

    legal malice, which is manifest in the attempt of the appellants to eschew

    the legal challenge thrown to the attempted resumption by preferring a

    writ petition before this Court and, despite a restraint order subsisting

    all throughout the pendency of the previous writ petition, hurrying to

    resume possession immediately after it was dismissed for default, in a
    32

    2026:CHC-AS:445-DB

    bid to deprive the writ petitioners/respondent nos.1 and 2 of the

    opportunity to have the previous writ petition restored, along with the

    previously subsisting restraint order.

    23. Hence, this Court comes to the conclusion that “due process of law” was

    paid mere lip-service of the appellant-authorities, in spirit violating the

    cardinal tenets of natural justice and fair process. The element of

    “fairness” must be read into “due process” for the said term to have any

    meaningful application within the Constitutional Scheme of India and

    the two cannot exist without each other.

    24. Tested on such anvil, the impugned actions of the appellants were

    tainted by legal malice and were rightly set aside by the learned Single

    Judge.

    CONCLUSION

    25. In view of the above findings, this Court comes to the conclusion that the

    learned Single Judge was justified in passing the impugned judgment,

    thereby directing possession to be restored to the respondent nos.1 and

    2 and the benefits of the Scheme under the Circular dated February 18,

    2021, as extended on August 25, 2022, to be given to the writ

    petitioners/respondent nos.1 and 2 in respect of the subject-plot nos. K-

    10 and K-10/2 in the Behala Industrial Estate at 620, Diamond Harbour

    Road, Kolkata – 700 034.

    26. Accordingly, M.A.T. No.1694 of 2024 and M.A.T. No.1695 of 2024 are

    dismissed on contest, thereby affirming the impugned judgment dated
    33

    2026:CHC-AS:445-DB

    August 16, 2024 passed in W.P.A. No.22402 of 2023 and W.P.A. No.4280

    of 2014.

    55. Consequentially, the pending applications in the appeals, both bearing

    CAN 1 of 2024, stand disposed of as well.

    56. There will be no order as to costs.

    57. 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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