IN THE HIGH COURT OF JUDICATURE AT CALCUTTA CONSTITUTIONAL WRIT JURISDICTION ORIGINAL SIDE RESERVED ON: 11.09.2025 DELIVERED ON: 25.09.2025 PRESENT:

THE HON’BLE MR. JUSTICE GAURANG KANTH WPO 1235 OF 2024 COTTON CASUALS INDIA PRIVATE LIMITED & ORS.

VERSUS THE STATE OF WEST BENGAL & ORS.

Appearance:-

Mr. Jaydip Kar, Sr. Adv.

Mr. Deepnath Roy Chowdhury, Adv.

Mr. Debdeep Sinha, Adv. Mr. Dibesh Dwivedi, Adv.

………………. For the Petitioners Mrs. Sipra Majumder, Adv.

Ms. Debarati Sen (Bose), Adv.

…………….….. For the State Mr. Biswajit Mukherjee, Adv.

Mr. Gurudas Mitra, Adv.

………….......…… For KMC JUDGMENT Gaurang Kanth, J. :-

1. The Petitioner has preferred the present writ petition seeking an order, inter alia, for quashing and/or setting aside the demands raised by the Respondent No. 3 towards outstanding property tax together with interest and penalty, as communicated vide four separate letters, all dated 18.11.2014; and for issuance of an appropriate direction upon the Respondents to effect the mutation of the four leasehold factory units, being Nos. A-201, A-202, A-301 and A-302, admeasuring in aggregate 45,208 sq. ft. together with six car parking spaces, situated at Paridhan Garment Park, 19 Canal South Road, Tangra, Kolkata – 700015, West Bengal, in the name of the Petitioners, upon payment of property tax from the date of purchase, i.e., 07.05.2022, without levy of any interest and/or penalty.

2. The facts leading to the present writ petition are as follows:

3. On 18.02.2018, the Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal, Kolkata Bench (hereinafter referred to as “NCLT, Kolkata”) against M/s Enfield Apparels Ltd. seeking initiation of the Corporate Insolvency Resolution Process (CIRP), as the said company had defaulted in repayment of its debts amounting to Rs.42,40,76,787.43/-. By order dated 06.08.2018, the NCLT, Kolkata appointed Mr. Kanchan Dutta as the Resolution Professional. Since no resolution plan was received for the revival of M/s Enfield Apparels Ltd., the NCLT, Kolkata, vide order dated 04.04.2019, directed the liquidation of the company and appointed Mr.

Kanchan Dutta as the Liquidator.

4. In May 2019, the Liquidator issued e-auction sale notices in leading newspapers for the sale of certain assets of M/s Enfield Apparels Ltd., namely, the factory premises comprising four modules of 11,302 sq. ft. each (totaling 45,208 sq. ft.), six open car parking spaces, and the plant and machinery situated at Paridhan Garment Park.

5. Although the Petitioners intended to acquire the said property and participate in the e-auction process, certain irregularities prevented their participation. The e-auction was conducted on 11.06.2019, and the sale was confirmed in favour of the sole bidder, M/s Vedant Fashions Limited.

6. Petitioner No. 1 challenged the said auction before the NCLT, Kolkata. By orders dated 24.02.2020 and 12.03.2020, the NCLT, Kolkata set aside the earlier auction sale and confirmed the sale in favour of Petitioner No. 1 for a bid price of Rs. 15.50 Crores.

7. Subsequent litigation ensued between the Liquidator and the Petitioners regarding the liability to pay transfer fees to the Lessor, i.e, West Bengal Industrial Development Corporation Ltd (WBIDC) before the NCLT, Kolkata and the NCLAT, New Delhi.

8. Vide order dated 13.10.2020 in IA (IB) No.782/KB/2020 in CP(IB)No.

338/KB/2018, the NCLT permitted Petitioners No. 2 to 5 to complete the sale transaction jointly with Petitioner No. 1.

9. Upon payment of the sale consideration and the transfer fee, possession of the subject property was handed over to the Petitioners on 19.01.2022. Thereafter, by four separate Deeds of Assignment, all executed on 07.05.2022, the leasehold rights in the factory premises were transferred in favour of Petitioners No. 1 to 5 as follows:

a) By Deed of Assignment dated 07.05.2022, Factory Module A-202 along with car parking spaces Nos. 96 and 97 was transferred to