IMPORTANT POINT
The main legal point established in the judgment is the requirement for the authority to consider extension requests in accordance with the terms of the licence deed and the application of the doctrine of proportionality in administrative decisions.

JUDGMENT :

SUVRA GHOSH, J.

1. The petitioners have primarily prayed for issuance of writ in the nature of mandamus commanding the respondents to grant extension of time for construction in terms of clause 4(iii) of the licence dated 12th March, 2008, by recalling the impugned decision communicated to the petitioners by the memo dated 12th July, 2022.

2. The first petitioner was formerly known as M/s. Bajoria Holding Private Limited which was changed to M/s. Excellent I. T. Services Private Limited with effect from 26th July, 2022. The first petitioner was allotted land measuring more or less 23.54 cottahs in plot no. IND/3B/6 sector - J at EKADP, Zone 1 @ Rs. 10 lakhs per cottah aggregating to total sum of Rs. 2,35,40,000/- for the purpose of developing Outsource Management Hub vide letter of allotment issued by the Kolkata Municipal Development Authority (hereinafter referred to as the KMDA) on 23rd October, 2007. Possession of the land was handed over to the petitioners on 4th February, 2008 and deed of licence executed by and between the first petitioner and the KMDA on 12th March, 2008 upon payment of the entire consideration amount by the first petitioner. The petitioners approached the Kolkata Municipal Corporation (in short the KMC) for mutation of the said land, appointed a surveyor to undertake survey of the land, appointed architects for architectural, interior and landscape services in relation to the proposed construction and also obtained electricity connection upon payment of requisite charges. Upon the property being mutated in favour of the first petitioner, the petitioners have been paying all applicable taxes in respect of the property till date. Provisional no objection certificate for the proposed construction was granted by the Director General, West Bengal Fire and Emergency Services on 15th September, 2010. The building plan was recommended for sanction by the KMC by its resolution taken in a meeting held on 15th December, 2010.

3. In terms of clause 4 (iii) of the deed, the petitioners were to start construction within 24 months from the date of issuance of allotment letter or within such further time as allowed by the authority in writing on sufficient and reasonable grounds, in accordance with plans, sanctions and specifications approved by the appropriate authorities on payment of such fees as required, in accordance with the building rules of the KMC and upon compliance of other statutory rules and regulations framed for the purpose. The petitioners were supposed to complete the construction work within 36 months from the date of issuance of the allotment letter. The petitioners were unable to abide by the said clause due to delay caused by various State authorities to grant the necessary clearances for the construction work to proceed and applied before the KMDA for extension of time to commence and complete the work. The KMDA, by a letter issued on 21st February, 2011, cancelled the allotment/licence deed and withdrew possession of the land delivered in favour of the first petitioner. The cancellation order was challenged by the petitioners in an earlier writ petition being W.P. No. 5324 (W) of 2011 and by a judgment delivered on 25th September, 2020, a coordinate Bench of this Court directed the KMDA to examine on merits the ground realities qua the construction as on 24th November, 2009 and take an independent decision thereafter. Pursuant thereto, notice of hearing was served upon the first petitioner by the KMDA and upon hearing the petitioner, the committee of the KMDA decided to place the matter before the next authority meeting of the KMDA for taking a decision. The petitioners were communicated vide letter issued on 12th July, 2022 that the matter was placed in the authority meeting and the authority decided that the allotment stood cancelled.

4. Policy decision was taken by the KMDA in the meeting of the Pricing Committee held on 12th February, 2009 that where construction could not be started