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 conditions warranted the quashing of the cancellation order.

ORDER :

1. The present writ petition has been preferred for quashing the order as contained in letter No. 706 dated 26.10.2019 issued by The Secretary-cum-Regional Deputy Director, Jharkhand Industrial Area Development Authority (JIADA), Bokaro Region (respondent no.5), whereby allotment made in favour of the petitioner vide Allotment Order No.940 dated 04.02.2004, amended vide letter no. 164 dated 04.02.2005 appertaining to Plot No IV/B-1 to 3 & B-7 to 9, area 40 Acres and letter no. 502 dated 04.03.2014 appertaining to Plot No. IV/B-1(P)-1, Area 4.81 acres, has been cancelled. Further prayer has been made for quashing the order dated 17.03.2021/15.07.2021 passed in Appeal No. 02/2019 by the Secretary, Department of Industries, Government of Jharkhand, Ranchi (Respondent No.2) and communicated to the petitioner as well as the respondent nos. 4 and 5 vide Memo No. 79/S.C./Ranchi dated 16.07.2021 whereby the appeal of the petitioner filed against the order as contained in letter no.706 dated 26.10.2019 has been rejected.

2. Learned senior counsel for the petitioner submits that the petitioner was allotted the said plots for establishing a Sponge Iron (Steel Plant) Unit. However the allotment was cancelled by the respondent no.5 vide impugned order as contained in letter no. 706 dated 26.10.2019 exercising power under Clause-25 of the Jharkhand Industrial Area Development Authority Regulations, 2016 (in short, “JIADA Regulations, 2016”). Thereafter, the petitioner preferred Appeal No. 02/2019 before the respondent No.2 who with a view to promote the Industry within the State provided last opportunity to the petitioner to start the work and passed order dated 10.01.2020 as contained in Memo No. 06/S.C dated 17.01.2020, with the following three conditions:

i. Unit must start the work production within six months and concerned progress report must be provided by the unit;

ii. Up-to-date dues must be paid within three months;

iii. The status report regarding functioning of the Unit will be provided through JIADA, Bokaro

3. The respondent no.2 further ordered that if the aforesaid three conditions were fulfilled and a report regarding the same was submitted by the respondent no. 3 to the respondent no. 2, then the order of cancellation issued vide letter no. 706 dated 26.10.2019 might be recalled after analysis of the said report.

4. It is further submitted that in terms with the order dated 10.01.2020, the petitioner deposited the dues of Rs.14,27,886/- in the office of Respondent No.3 for which Invoice No. 742 dated 04.02.2020 was issued to it. In the meantime, nation-wide lockdown was declared on 25.03.2020 owing to COVID-19 Pandemic and all business operations and activities came to a standstill. Accordingly, the petitioner preferred an application on 23.06.2020 before the respondent no.2 to extend the period for further six months for starting the project owing to unprecedented nation-wide lockdown and unavailability of manpower. It is also submitted that in spite of difficulty in continuing with the work due to unavailability of manpower, transportation restriction, material shortage and lock down, the petitioner somehow managed to continue with the work for completion of the unit and started construction work of foundation of machine as well as shed for commissioning of the unit. It immediately prepared status report in relation to establishment of the unit and sent it to the respondent no.4 for forwarding the same to the respondent no.2. Thereafter, the respondent no. 4 submitted status report and site inspection report in compliance of the order dated 10.01.2020 to the respondent No.2 vide letter No.713 dated 17.12.2020 mentioning that the payment of up-to-date dues was made by the petitioner and it started construction work of establishment of the unit where the work of machine foundation and shed foundation was going on at that time. It is also submitted that Jharkhand State Pollution Control Board also granted combined Consent