The Calcutta High Court has held that Panchayat Samitis have exclusive authority to lease ferry ghats vested in them and that a cooperative society of boatmen has no automatic right to a direct settlement, setting aside an interim order that had stalled an e-auction in Murshidabad.
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Kolkata: The Calcutta High Court on Monday held that Panchayat Samitis in West Bengal may auction ferry ghats and that a local boatmen’s cooperative society has no automatic preference in the lease, setting aside an interim order that had restrained the authorities from proceeding with the e-auction of a ferry ghat in Murshidabad [Nowda Thana Ferry Service Co-operative Society Limited v. The Secretary, Hariharpara Thana Ferry Service Co-operative Society Limited & Ors.].
A Division Bench of Justice Shampa Sarkar and Justice Arjun Ray Mukherjee heard the appeal, which was filed by the successful bidder against the interim order passed on July 31, 2026.
Background
The Hariharpara Thana Ferry Service Co-operative Society Limited had challenged the e-auction of the Bhandardaha (Humaipur) Ferry Ghat in Murshidabad. Nowda Thana Ferry Service Co-operative Society Limited won the auction with a bid of Rs 4.90 lakh for a three-year lease and deposited Rs 1,63,334 towards the first year’s rent. The challenger relied on Rule 281(iii) of the West Bengal Land and Land Reforms Manual, contending that local boatmen’s cooperatives were entitled to preference.
Panchayati raj institutions hold exclusive power
The Bench held that, once ferry ghats were handed over to panchayati raj institutions, those institutions acquired exclusive authority over them under Article 243-G of the Constitution, the West Bengal Panchayat Act, 1973 and Rule 31 of the West Bengal Panchayat (Panchayat Samiti Administration) Rules, 2008, and that the Land Manual cannot override powers conferred by statute:
“When the ferry ghats were handed over to the panchayati raj institutions, such institutions would get exclusive power and authority to grant lease.”
Rule 281(iii), it held, could not be invoked to compel a Panchayat Samiti to make a direct settlement in favour of any cooperative society.
E-auction and a level playing field
The Court emphasised the merits of an open auction:
“E-auction ensures maximization of revenue.”
“Every eligible bidder must be allowed to participate. Every eligible bidder is entitled to get a level playing field.”
Non-disclosure and the interim order
The Bench noted that the challenger had itself participated in the auction and approached the Court only after losing, and that the interim order was obtained without disclosing that participation. It set aside the interim order and permitted the authorities to proceed with the auction, subject to the final outcome of the pending petition. All steps taken pursuant to the auction will remain subject to that outcome.
Why The Panchayat Samitis Order Matters
The order is an interim ruling and does not finally decide the challenge, which remains pending. It indicates that, at this stage, a Land Manual preference rule is not treated as overriding a Panchayat Samiti’s statutory power to lease vested ferry ghats through an open e-auction.
Case Title: Nowda Thana Ferry Service Co-operative Society Limited v. The Secretary, Hariharpara Thana Ferry Service Co-operative Society Limited & Ors. | MAT 1503 of 2026
Bench: Justice Shampa Sarkar and Justice Arjun Ray Mukherjee
Date of Order: October 5, 2026