IN THE HIGH COURT OF JUDICATURE AT PATNA
P.B. BAJANTHRI, ARUN KUMAR JHA, JJ.
M/s Kaveri Liquors (P) Ltd. – Appellant
Versus
The State of Bihar – Respondent
Civil Writ Jurisdiction Case No.11911 of 2022
Decided on : 24-01-2023
Cancellation of Allotment - Bihar Industrial Area Development Authority - The court set aside the cancellation of the allotment of a plot by the Bihar Industrial Area Development Authority, emphasizing the need for compliance with the provisions of Sub-section 2 of Section 6 of the Bihar Industrial Area Development Authority Act, 1974.
Fact of the Case:
The petitioner, an auction purchaser of an industry, was allotted a plot by the Bihar Industrial Area Development Authority. The allotment was subsequently cancelled by the authority, citing non-compliance with lease deed requirements.
Finding of the Court:
The court found that the cancellation memo was not in line with the provisions of Sub-section 2 of Section 6 of the Act, 1974. It set aside the cancellation and reserved the liberty for the authority to proceed in accordance with the law after providing ample opportunity of hearing to the petitioner.
Issues: The issues revolved around the cancellation of the plot allotment by the Bihar Industrial Area Development Authority and the compliance with the relevant legal provisions.
Ratio Decidendi: The court's decision was influenced by the lack of compliance with the provisions of Sub-section 2 of Section 6 of the Bihar Industrial Area Development Authority Act, 1974, in the cancellation of the plot allotment.
Final Decision: The court allowed the writ petition and set aside the cancellation of the plot allotment, while reserving the liberty for the authority to proceed in accordance with the law after providing ample opportunity of hearing to the petitioner.
JUDGMENT :
P.B. BAJANTHRI, J.
Heard learned counsels for the parties.
2. In the instant petition petitioner has prayed for following reliefs:-
(ii) Restrain the respondents from precipitating any coercive steps against the petitioner during the pendency of the writ petition;
(iii) Pass such other(s) orders as your lordship may deem fit and proper in the facts and circumstances of the present case."
3. Petitioner is an auction purchaser of an industry.
Thereafter, petitioner was allotted plot by the Bihar Industrial Area Development Authority (For short 'BIADA') on 03.12.2014. For the purpose of execution of lease deed in allotment of plot communication itself, BIADA has indicated that petitioner was required to furnish lease deed entered with the M/S Jupitar Electrical Lamps (India) Pvt. Ltd. IDBI Bank is the custodian of records of M/S Jupitar Electrical Lamps including lease hold document entered between M/s Jupitar Electrical Lamps and BIADA and it is lying with the IDBI.
Despite, necessary efforts made by the petitioner with reference to his representation dated 13.12.2014 and thereafter reminder on 21.09.2017, they have not released documents in favour of petitioner M/s Kaveri Liquors (P) Ltd. In this backdrop, BIADA proceeded to cancel the allotment of plot communication dated 03.12.2014 on 23.07.2022. Before cancellation, a formal notice was issued to the petitioner. However, before cancellation of allotted plot, BIADA was required to comply ingredients of Sub-section 2 of Section 6 of the Bihar Industrial Area Development Authority Act, 1974.
4. Reading of cancellation memo bearing No. 11 dated 23.07.2022 passed by the 4th Respondent is not in consonance with Sub-section 2 of Section 6 of the Act, 1974. The same is not disputed by the other side (by BIADA and respondents).
5. In the light of these facts and circumstances memo no. 11 dated 23.07.2022, vide Annexure-13 passed by Respondent No. 4 -Joint Managing Director, BIADA, Patna is hereby set aside in so far as cancellation of allotment of plot no. 32/33 having an area of 43570 sq ft. at industrial area, Patliputra is concerned, reserving liberty to the BIADA to proceed in accordance with law after providing ample opportunity of hearing to the petitioner.
6. Accordingly, C.W.J.C. No. 11911 of 2022 stands allowed.
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.
Compliance with undertaking and consequences of breaching it are crucial in the disposal of the petition.
Failure to utilize allocated industrial land justifies its cancellation under statutory provisions.
Acceptance of petitioner's undertaking and consequences of breach as a basis for quashing orders.
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