ARINDAM SINHA,J. - (1.) This writ petition on being moved resulted in record of submissions in order dated 19th June, 2018 as are reproduced below: "KMDA granted licence on 28th September, 2008 to the Institute. Clauses 2 and 4(iii) are set out below: "2. The License under this deed shall be deemed to commence on the date of these presents and possession shall continue to be operative till the execution and registration of a deed of lease in respect of the above mentioned land between the Authority and the licensee or till the expiry of the period of 99 (Ninety Nine) years from the date of its commencement, whichever event occurs earlier. 4(iii) At the own cost of the Licensee, within 24 months from the date of issue of allotment letter or within such further time as the Authority may as its option allow in writing on sufficient and reasonable grounds, to start Construction for the purpose of setting up an Institution for opening MBA Baishnabghata Patuli Area Development Project with boundary walls boundary walls, sewers and drains in accordance with plans, sanctions and specifications as shall be approved by the appropriate authorities on payment of such fees as required, in accordance with the Building Rules of the Kolkata Municipal Corporation, with the requirement of any Land Use and Development Control Regulations of the Authority or the requirements of any other statutory rules and regulations of local or statutory body framed for the purpose and licensee shall complete the construction works of the project within 36 months from the date of issue of allotment letter." Failure on the part of the Licensee to start construction within two years or within the time as extended by the AUTHORITY and/or complete the construction works of the project within three years from the date of issue of allotment letter of the plot of land, the License shall be terminated by the AUTHORITY, with deduction of 20% of premium as paid by the Licensee as service charge and remaining amount shall be refunded without any interest thereon.
(2.) Mr. Bhattacharjee, learned senior advocate appears on behalf of petitioner and submits, it is a deemed sale. Provisions of Transfer of Property Act, 1882 would apply to the parties. He submits, the authority may at its option allow, in writing on sufficient and reasonable grounds, further time to start construction for setting up the Institute. On failure on the part of his client to start construction within time as extended or completed within three years from the date of issue of allotment letter on the plot of land, the licence can be terminated by the authority with deduction of 20% of premium as service charge. It cannot do anything else.
(3.) He refers to impugned demand dated 14th Janurary, 2010 which is a demand for penalty amount at the rate of current rate on value of the land, which, according to him, cannot be sustained as issued on the basis of either the licence or statutes. He relies on judgment of Supreme Court in Andhra Pradesh Industrial Infrastructure Corporation Limited and others v. S.N. Raj Kumar and another reported in AIR 2018 SC 1981, in particular to paragraph 16 which is set out below: "16. Section 55 of the Act deals with rights and liabilities of buyer and seller. As per this provision, when the buyer discharges obligations and seller passes/conveys the ownership of the property, the contract is concluded. Thereafter, the liabilities, obligations and rights, if any, between the buyer and seller would be governed by other provisions of the Contract Act and the Specific Relief Act, on the execution of the sale deed. The seller cannot unilaterally cancel the conveyance or sale.";