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CHAKRADHARI SHARAN SINGH, MADHURESH PRASAD
Prabha Electro Castings Private Limited a Company incorporated under the provisions of the Companies Act 1965 – Appellant
Versus
State of Bihar through the Principal Secretary, Department of Industries, Government of Bihar, Patna – Respondent
JUDGMENT :
MADHURESH PRASAD, J.
1. The allotment of plot having an area of 2.27 acres in Raxaul Industrial Area, made in favour of the petitioner has been cancelled by the Executive Director purportedly under the
order of the Managing Director of the Bihar Industrial Area Development Authority (‘BIADA’ for short) by communication dated 20.06.2020 bearing memo no. 556. The petitioner seeks quashing of the same and also a direction upon the respondents restraining them from resuming possession of the plot.
2. Earlier the petitioner had filed CWJC No. 8906/2013 for quashing letter dated 28.04.2012 of the BIADA, calling upon the petitioner to commence production on his plot allotted in the industrial area, failing which the land allotted to the petitioner would be cancelled.
3. At that time Certificate Case No. 04/Electricity/2002-03 was pending against the petitioner for recovery of electrical dues and the writ petition was disposed of by order dated 17.07.2018 in the following terms:
The court upheld the cancellation of land allotment due to the petitioner's non-utilization for over twenty years, reinforcing authority's jurisdiction under the BIADA Act, 1974 and its amendments.
Failure to utilize allocated industrial land justifies its cancellation under statutory provisions.
The court emphasized that passing of an order of cancellation of allotment was not mandatory on violation of the conditions of allotment letters, and that the petitioner's substantial compliance with....
Compliance with undertaking and consequences of breaching it are crucial in the disposal of the petition.
Non-compliance with lease conditions and non-utilization of allotted land can justify the cancellation of the lease by the authority.
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