JUDGMENT

I. P. Mukerji, J. - The point involved in this appeal is very interesting.

2. It concerns a parcel of land in greater Kolkata measuring 30 cottahs, numbered as plot No.IIE/17 in Jyoti Basu Nagar, also known as New Town. It was owned by the state government, the respondent No.1. Through legal technicalities, the ownership and control of the law was transferred to the respondent No.2 (hereinafter referred to as HIDCO). For all purposes the state is the legal owner of an entire tract of land in New Town. In response to an offer made by the appellant No.1 (hereinafter referred to as the appellant), HIDCO by its letter dated 6th April, 2011 promised to convey to them on "freehold basis", the entirety of the said parcel of land @ Rs.13.364 lakhs per cottah aggregating to Rs.4,00,92,000/-. Earnest representing 25% of the amount of Rs.1,00,23,000/- was to be paid within 30 days of the said letter followed by the payment of the balance amount of Rs.3,00,69,000/- within a further period of 60 days. The land was to be used to build a modern showroom and for other commercial purposes. HIDCO promised to handover physical possession of the land on payment of the balance consideration and