Calcutta High Court
Property and Real Estate LawAdministrative and Public Law

Mining leases commence upon registration of the duly executed lease deed, not upon delivery of possession.

STATE OF WEST BENGAL AND ORS vs GHOSH INFRASTRUCTURE PRIVATE LTD

Calcutta High CourtJUDGMENT: October 09, 20263 MIN READSOURCE JUDGMENT
Mining leases commence upon registration of the duly executed lease deed, not upon delivery of possession.. STATE OF WEST BENGAL AND ORS vs GHOSH INFRASTRUCTURE PRIVATE LTD. Calcutta High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The State granted the respondent a sand-mining lease under the West Bengal Minor Minerals Concession Rules, 2016.

Source reference: para. 7–9

The lease deed was registered on 18 June 2021, while possession of the land was handed over on 27 April 2022.

Source reference: para. 7–9

The respondent later applied for extension of the five-year lease on 20 March 2025.

Source reference: para. 7–9

The Single Judge directed the State to communicate that the lease period should run from the date possession was handed over, rather than from registration of the deed.

Source reference: para. 10, 31

The State appealed.

Source reference: para. 2–4

The Division Bench condoned the delay in filing the appeal, finding the explanation of intra-departmental file movement plausible.

Source reference: para. 2–4
02

Issues

Whether the commencement date of the respondent’s mining lease was the date of registration of the lease deed or the date possession was handed over.

Source reference: para. 11–14, 30

Whether the Single Judge was justified in directing the State to treat the date of handing over possession as the commencement date, rather than leaving that question to be considered in deciding the extension application.

Source reference: para. 31–34

Whether the State was required to decide the respondent’s pending extension application.

Source reference: para. 35
03

Law Applied

Rule 5(2) of the West Bengal Minor Minerals Concession Rules, 2016, Rule 10(6) of the West Bengal Minor Minerals (Auction) Rules, 2016, and Rule 5(2) of the West Bengal Sand (Mining, Transportation, Storage and Sale) Rules, 2021 provide that the lease commences upon registration of the duly executed lease deed.

Source reference: para. 11–13, 30

Rule 21 of the 2016 Concession Rules concerns lapsing where mining operations do not commence within the prescribed period; that distinct question does not determine the commencement date for calculating the term of a lease that has run its course.

Source reference: para. 20–24

The court held that the Transfer of Property Act, 1882, and general principles of equity could not displace the specific rules governing this statutory mining lease.

Source reference: para. 28–29

It distinguished *Lachman Shaw v. State of West Bengal & Ors.* because that decision concerned the predecessor rule on lapsing, and found no relevant ratio on the governing rules in the coordinate Bench decision in FMA 1656 of 2013.

Source reference: para. 20–26

The lease deed’s force-majeure clause applied to delay-related consequences in the context of alleged breach or termination; it did not establish the commencement date in this case.

Source reference: para. 32
04

Reasoning

The applicable rules expressly fixed registration of the duly executed deed as the lease’s commencement date.

Source reference: para. 24–30

The court therefore rejected the respondent’s reliance on possession, the Transfer of Property Act, equity, and the cited decisions to establish a different commencement date.

Source reference: para. 24–30

It also held that the force-majeure clause did not assist the respondent because the lease had not been terminated and no force-majeure ground had been raised.

Source reference: para. 32

Since the writ petition concerned, in substance, the State’s failure to decide the extension application, the Single Judge had gone beyond that issue by conclusively fixing the lease period’s commencement date; the question could not be pre-judged in that proceeding.

Source reference: para. 33–34

However, the State remained obliged to decide the pending extension application within a reasonable time.

Source reference: para. 35
05

Holding

The appeal was partially allowed.

The direction requiring the State to treat the date of handing over possession as the lease’s commencement date was set aside.

Source reference: para. 36–38

The State was directed to decide the respondent’s extension application by a reasoned written order, preferably by 30 November 2026, after giving the respondent an opportunity to be heard if the application was to be rejected.

Source reference: para. 36–38

The court left the merits of the extension application open and directed that it be considered in accordance with law, treating 18 June 2021—the date of registration—as the commencement date.

Source reference: para. 36–38

CAN 2 of 2026 was disposed of, with no order as to costs.

Source reference: para. 39–40
Calcutta High Court

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STATE OF WEST BENGAL AND ORSvsGHOSH INFRASTRUCTURE PRIVATE LTD

Calcutta High Court · October 09, 2026

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