Calcutta High Court
Cotton Casuals (India) Private Limited vs The State Of West Bengal And Ors on 11 November, 2025
Author: Rajasekhar Mantha
Bench: Rajasekhar Mantha
OD-4
ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
CIVIL APPELLATE JURISDICTION
ORIGINAL SIDE
APO/79/2025
IA NO:GA/1/2025
COTTON CASUALS (INDIA) PRIVATE LIMITED
-VS-
THE STATE OF WEST BENGAL AND ORS
BEFORE:
The Hon'ble JUSTICE RAJASEKHAR MANTHA
And
The Hon'ble JUSTICE AJAY KUMAR GUPTA
Date: November 11, 2025.
Mr. J. Kar, Sr. Adv.; Mr. D. Roy Chowdhury, Adv.; Mr. D. Sinha, Adv.; Mr. D. Dwivedi,
Adv.; Mr. B. Dwivedi, Adv., for appellant.
Ms. S. Majumder, Adv.; Ms. D. Sen (Bose), Adv., for State.
Mr. B. Mukherjee, Adv.; Mr. G. Mitra, Adv.; Ms. G. Quraishi, Adv., for KMC.
1.
The Court: The instant appeal is directed against the judgment and order dated
September 25, 2025, passed by a Single Bench of this Court.
2. The appellant purchased the municipal premises in question in an auction sale
conducted by the NCLT under the provisions of the Insolvency and Bankruptcy
Code (IBC), 2016.
3. Upon possession being taken, the KMC slapped a demand on the appellant for the
municipal dues outstanding in respect of the said premises even prior to the
appellant's purchasing the property from the NCLT.
4. Aggrieved by the same, the appellant had filed the writ petition. The Single Bench
did not find favour with the appellant upholding the right of the KMC to collect
past dues in respect of the said municipal premises from the appellant.
5. Several authorities had been cited before the Single Bench. Mr. Kar, learned
Senior Advocate appearing for the appellant, submits that the learned Single
Bench has failed to appreciate the true scope of the said authorities and the IBC
2016.
6. The matter is required to be heard.
7. On the question of stay of the coercive measures by the KMC, this Court is of view
that the appellant shall be liable to deposit all dues from the date of sale of the
said premises in favour of the appellant including penalty and interest. However,
in so far as the municipal dues in respect of the said property prior to purchase of
the same by the appellant is concerned, 50% of the principal amount of such dues
shall be deposited with the Registrar, Original Side, by the appellant. The
Registrar, Original Side, shall, in turn, deposit the same in an interest bearing
account and keep the same renewed to the credit of the instant proceeding.
8. For the aforesaid purpose, the KMC shall, within a period of seven days,
communicate the appellant and its Advocate on Record the calculations of the
dues post purchase by the appellant as well as those in respect of the subject
premises prior to the purchase by the appellant.
9. In so far as the dues are concerned, the KMC shall be entitled to appropriate the
same in pro tanto satisfaction of its claims against the appellant. The appellant
shall continue to pay the current dues.
10. Let the appellant make the deposits as indicated hereinabove, within a period of
three weeks from date. Subject to making payment as above, the KMC shall not
take any coercive action against the appellant.
11. In default of making such deposit and payment as above, the protection as above
shall stand vacated and the appeal shall automatically stand dismissed.
12. The deposits and payments to be made by the appellant shall be subject to the
result of the appeal.
13. Since all the pleadings before the Single Bench are available before us, the appeal
itself shall be taken up for hearing along with the stay application under the
heading "For Hearing".
14. List the appeal three weeks hence.
(RAJASEKHAR MANTHA, J.)
(AJAY KUMAR GUPTA, J.)
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