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2026 Supreme(Cal) 550

IN THE HIGH COURT AT CALCUTTA
SABYASACHI BHATTACHARYYA, SUPRATIM BHATTACHARYA, JJ.
The West Bengal Small Industries Development Limited and Others - Appellants
Versus
M/s. Twinstar Industries and Others – Respondents
M.A.T. No. 1694 of 2024, IA No. CAN 1 of 2024 with M.A.T. No. 1695 of 2024.
Decided On : 19-03-2026

Advocates Appeared:
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.

State authorities are obligated to ensure non-discriminatory application of beneficial policies. Administrative actions executed specifically to frustrate ongoing judicial proceedings or circumvent pending legal challenges, regardless of technical authority, are considered tainted by legal malice and violate constitutional principles of fairness and due process.

Headnote:(A) Constitution of India - Article 14 - Equality before law - State entities must exercise discretionary powers under beneficial schemes in a non-discriminatory manner; extending benefits to some similarly situated individuals while denying them to others constitutes a violation of fundamental rights. (Paras 29, 33, 13-17)

(B) Government Premises Regulation - Eviction and Possession - Legal malice - Administrative actions taken in haste to bypass pending judicial proceedings or to frustrate the outcome of ongoing litigations are deemed to be tainted by legal malice and lack the hallmark of fair administrative process. (Paras 31, 32, 18-24)

(C) Statutory Interpretation - Government premises tenancy - Provisions for renewal require strict adherence to prescribed conditions; however, when interpreting beneficial schemes, the focus must be on advancing the intended purpose rather than creating restrictive, illusory conditions for eligible applicants. (Paras 40-41, 46-51)

Facts of the case:
The appellant-authorities sought to evict the respondent from industrial plots citing expiration of lease and non-payment of dues. While the respondent sought the benefit of a renewal and conversion scheme introduced by the authorities, the same was neither granted nor decided upon. Subsequently, the authorities resumed possession of the plots in haste on the very day a writ petition was scheduled for hearing, despite being served notice of the motion.

Findings of Court:
The Court held that the respondent was an eligible allottee under the scheme. It found that the act of maintaining silence on the respondent's application while granting benefits to similarly situated entities amounted to discrimination and a violation of Article 14. Furthermore, the authorities' act of taking forcible possession while the matter was sub-judice was held to be an act of legal malice meant to frustrate judicial intervention.

Issues: (i) Whether the respondent is entitled to renewal of tenancy or the benefits of the scheme; (ii) Whether the authorities violated the constitutional right to equality; (iii) Whether the actions of the authorities were tainted by legal malice.

Ratio Decidendi: State action, even in contractual or property matters, must meet the standards of fairness and non-arbitrariness. A policy designed for the benefit of stakeholders cannot be applied selectively. Moreover, administrative agencies must respect the sanctity of court proceedings; any attempt to circumvent a pending legal challenge through swift, non-procedural occupation of property constitutes legal malice.

Result: Appeals dismissed; impugned judgment affirmed, directing the restoration of possession and the extension of scheme benefits to the respondents.

Table of Content
1. application of article 14 (equality) and existence of legal malice in arbitrary state actions. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24)
2. final confirmation of the judgment granting relief and ordering the restoration of possession. (Para 25 , 26 , 55 , 56 , 57)
3. respondents' arguments regarding substantial compliance, eligibility for the scheme, and non-application of legal malice. (Para 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35)
4. statutory interpretation of the 1976 act regarding lease termination and renewal procedures. (Para 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54)

JUDGMENT :

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, 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 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.

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

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