The Calcutta High Court has directed the Mizoram government to complete the sale of its former Kolkata guesthouse and office to Excel Vincom Pvt Ltd within eight weeks, holding that the state could not withdraw from an agreement after accepting the sale consideration and acting on the transaction.
A division bench of Justice Arijit Banerjee and Justice Apurba Sinha Ray dismissed Mizoram’s appeal on Friday and ordered the government to execute the sale deed for the property at 24 Ashutosh Chowdhury Avenue in Kolkata’s Old Ballygunge area. The property was sold for around Rs 38.3 crore after an e-auction conducted in 2023.
The court held that the cancellation of the agreement by the Zoram People’s Movement government, which came to power in December 2023, was arbitrary and violated Article 14 of the Constitution. The bench observed that a change in government could not be used as grounds to withdraw from a promise that had already been agreed upon and acted upon.
“The government cannot renege on a promise made and acted upon by a citizen to his detriment, only because there is a change in regime,” the bench said, according to the court proceedings reported by Times of India.
The dispute relates to land and premises that Mizoram purchased in 1973. The property was subsequently used as Mizoram House, serving as a government guesthouse and office in Kolkata. In May 2023, the then Mizo National Front government put the asset up for e-auction, with Excel Vincom emerging as the highest bidder.
The state and the company signed a sale agreement on October 6, 2023. The proposed disposal, however, faced opposition from sections of the Mizo community in Kolkata. The Kolkata Mizo Students and Calcutta Mizo Welfare Association urged the government to preserve the property, citing its historical and heritage value.
After the ZPM government assumed office in December 2023, it cancelled the tender process and refunded the company’s payment. The government argued that the decision was prompted by public sentiment and public interest rather than political considerations.
Appearing for Mizoram, advocate general Biswajit Deb argued that ownership had not transferred because the sale deed had not yet been executed. The state therefore remained entitled to withdraw from the process, he submitted.
Senior advocate SN Mookherjee, representing Excel Vincom, argued that the transaction had reached its final stage and that execution of the sale deed was the only remaining formality. The company’s position was that the agreement and subsequent actions had created an enforceable obligation.
The bench noted that Mizoram had received the full sale consideration and had also received interest for delayed payment of an instalment. It said the new government had cancelled the agreement unilaterally without establishing an overriding public interest that could justify the decision.
The ruling places the management of government-owned urban property under renewed legal scrutiny. The case also highlights the administrative consequences of changing a public asset decision after an auction, an agreement and payment have taken place. The court has now required Mizoram to execute the sale deed within eight weeks.
