IN THE HIGH COURT OF JUDICATURE AT PATNA
K. VINOD CHANDRAN, CJ. and RAJIV ROY, J.
CWJC No.79 of 2023
(8.2.2024)
Poonamika Foods (India) Pvt. Ltd. ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Bihar Industrial Area Development Authority Act, 1974 – Section 6 – Industrial Plot – Cancellation of Allotment – Petitioner applied and was allotted an industrial plot in 1992 – No commercial/industrial activity took place for decades – Petitioner never intended to act/initiate commercial activities – Upon physical inspection of plot was found that petitioner has let out part of land – Petitioner defaulted undertaking given by respondent Principal Secretary – Failed to commence commercial production, despite an opportunity to do so granted after a long time – Allowed third parties to use land allotted to petitioner for industrial purposes – Petitioner acted against specific terms of allotment and violated undertaking made by him to belatedly comply with terms – Disentitle him from continuing with the allotment – Do not find any error in order passed by Respondent Authorities – Writ petition dismissed. (Paras 44 to 48)
K. Vinod Chandran, CJ.—Heard the parties.
2. The present writ application has been filed for the following reliefs:—
(i) for issuance of a writ, order or direction in the nature of writ of certiorari for quashing order dated 01.11.2022 passed in Appeal No. 226/2022 passed by the Principal Secretary, Department of Industries, Bihar, Patna (Respondent No. 2) whereby and whereunder the appeal preferred against order dated 27.08.2022 contained in memo no. 77/D passed by the Deputy General Manager, Hajipur Cluster, Bihar Industrial Area Development Authority (BIADA), Hajipur Cluster Industrial Area, Hajipur, Vaishali (Respondent No. 7) cancelling the allotment of Industrial Plot No. B-16P, 17 and 18P at Industrial Area, Hajipur granted to Petitioner has been upheld;
(ii) for issuance of a writ, order or direction in the nature of writ of certiorari for quashing order dated 27.08.2022 contained in memo no. 77/D passed by the Deputy General Manager, Hajipur Cluster, Bihar Industrial Area Development Authority (BIADA), Hajipur Cluster Industrial Area, Hajipur, Vaishali (Respondent No. 7) whereby and whereunder the allotment of Industrial Plot No. B-16P, 17 and 18P at Industrial Area, Hajipur granted to Petitioner has been cancelled;
(iii) for issuance of a writ, order or direction in the nature of writ of mandamus commanding the respondent authorities to restore the allotment and possession of petitioner with respect to Industrial Plot No. B-16P, 17 and 18P at Industrial Area, Hajipur, where all plants and machinery of Petitioner are still lying and forceful possession has been taken without preparing any inventory;
(iv) for issuance of a writ, order or direction in the nature of writ of mandamus commanding the respondent authorities to allow adequate and reasonable time to Petitioner to settle such dues against Bihar State Credit & Investment Corporation, which was liquidated by respondent- Bihar Industrial Area Development Authority (BIADA), behind the back of Petitioner as also to enable Petitioner to get its industrial unit back in operation, upon restoration of petitioner's allotment and possession.
3. The matrix of facts giving rise to present appeal is/are as follows:—
4. The petitioner is a Private Limited Company having its registered office at Hajipur represented through its Director.
5. As per the writ petition, the State Government in the year 1995 came out with its Industrial Policy-1995 whereby and whereunder, the food & food processing industries were identified as one of the thrust industries for accelerated development and industrialization of the State.
6. The petitioner applied and was allotted an Industrial plot bearing no. B-16P, 17 & 18P (43560 sq ft.) by the Bihar Industrial Area Development Authority (henceforth for short ‘the BIADA’) at Industrial Area, Hajipur vide letter no. 131 dated 15.05.1992 for establishing a biscuit manufacturing unit. The petitioner was registered with the Directorate of Industries and was granted a Permanent Registration Certificate as a Small Scale Industry for manufacturing/processing biscuits on 20.09.1995.
7. According to the petitioner, the industrial unit could not run smoothly and was rendered sick in the year 2000. Left with no option, he approached the appropriate authorities for declaring the unit sick and it was declared as such vide letter no. 1058 dated 19.05.2000 of the Director, Industries, Bihar.
8. Later, the State Government revised its Industrial Policy in the year 2006 and came out with an Industrial Incentive Policy, 2006 wherein under Clause 3.2(viii), certain facilities were to be provided to sick and closed units which reads as under:—
3.2 (viii) Facility provided to the sick and closed units: Exemptions from Annual Minimum Guarantee (AMG), Monthly Minimum Guarantee (MMG) and Delayed Payment Surcharge (DPS) would be available to the unit from the date of declaration of the unit as a sick unit. This facility would be admissible for a period of five years.
9. The aforesaid I
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....
The court emphasized that failure to comply with payment directives, as mandated by public notice, results in cancellation of allotment, and timely action to enforce rights is critically important.
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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