Court Clarifies Panchayat Samiti's Authority in Managing Ferry Ghats, Upholds E-Auction Process
In a recent judgment, the Calcutta High Court has set aside an interim order that had stayed the e-auction process for the settlement of ferry ghats, allowing the Panchayat Samiti to proceed with its plans to grant leases through a transparent auction method. The Division Bench, comprising Justices Shampa Sarkar and Arjun Ray Mukherjee, pronounced the decision in the case of Nowda Thana Ferry Service Co-operative Society Limited v. Secretary, Hariharpara Thana Ferry Service Co-operative Society Ltd. The judgment, delivered on September 30, 2026, emphasized the Panchayat Samiti's exclusive authority over ferry ghats vested in it and the importance of maximizing revenue through e-auctions.
The appeal arose from an order issued by a Single Judge on July 31, 2026, which had halted the e-auction process based on a petition filed by an unsuccessful bidder. The petitioner argued that the local boatmen's co-operative society was entitled to the settlement without tender under Rule 281(iii) of the West Bengal Land and Land Reforms Manual, 1991. However, the Division Bench clarified that the rule could not override the constitutional framework of Panchayati Raj, the West Bengal Panchayat Act, 1973, and the West Bengal Panchayat (Panchayat Samiti Administration) Rules, 2008.
The court underscored that public resources, such as ferry ghats, should not be alienated without a fair and transparent process, advocating for auctions to ensure equal opportunity and revenue maximization. The judgment also addressed the procedural lapse in the interim order, highlighting the absence of considerations regarding the prima facie case, balance of convenience, and irreparable harm.
The court's decision allows the successful bidder, Nowda Thana Ferry Service Co-operative Society Limited, to proceed with the lease arrangements. The Panchayat Samiti's move to adopt e-auctions aligns with the government's policy for resource management and revenue enhancement. The court's ruling reaffirms the Panchayat Samiti's role in managing ferry ghats and the necessity for transparent processes in public resource allocation.
Bottom Line :
Panchayat Samiti having control and management over vested ferry ghats is empowered to settle such ghats through e-auction for maximization of revenue; Rule 281(iii) of the West Bengal Land and Land Reforms Manual, 1991 does not override the provisions of the Constitution, the West Bengal Panchayat Act, 1973 and the West Bengal Panchayat (Panchayat Samiti Administration) Rules, 2008. Interim stay of concluded e-auction at the instance of an unsuccessful bidder, without considering prima facie case, balance of convenience and irreparable injury, is unsustainable.
Statutory provision(s): West Bengal Panchayat Act, 1973, West Bengal Panchayat (Panchayat Samiti Administration) Rules, 2008, West Bengal Land and Land Reforms Manual, 1991, Constitution of India, Article 243G, Specific Relief Act, 1963, Section 41(ha).
