Non-compliance with lease conditions and non-utilization of allotted land can justify the cancellation of the lease by the authority.

JUDGMENT :

Heard Mr. Rahul Kumar, learned counsel for the petitioner, Mr. C.A. Bardhan, learned counsel for respondent nos. 1 to 4 and Mr. Anil Kumar Singh, learned counsel for respondent no.5.

2. The present petition has been filed for setting aside the order dated 07.07.2014 passed in Appeal Case No.14 of 2014 by the Secretary, Industry, Government of Jharkhand, Ranchi, whereby, the appeal filed by the petitioner has been rejected and the order of the Managing Director, Ranchi Industrial Area Development Authority (RIADA) cancelling the land allotted in favour of the petitioner in violation of lease condition has been held to be in accordance with law. The further prayer is made for quashing the letter dated 21.02.2013 issued by the Managing Director, RIADA, whereby the said authority has cancelled the allotment order dated 21.02.1986 of lease hold land made in favour of the petitioner of Plot Nos. 128-129(P), area 1.26 acres for a period of 99 years and the case of the petitioner has been dismissed. The prayer is also made for direction for accepting the offered proposal dated 12.12.2000 of the petitioner for selling/assigning of unuseful portion of the unit above the proposed finished product yard and the raw materials yard in order to liquidate the outstanding dues of the respondents.

3. Mr. Rahul Kumar, learned counsel appearing for the petitioner submits that the petitioner is a partnership firm having its office at 128-Industrial Area, Tupudana, Ranchi. The petitioner applied for allotment of land measuring an area of 1.26 acres situated at village Pugru, Hatia, District Ranchi to set up an industry. RIADA by terms of letter dated 21.02.1986 allotted the said land to the petitioner on 21.02.1986 for running industry in the name and style of Pandava Ceramics and Refractories on perpetual lease for a period of 99 years directing the petitioner to deposit the amount of salami @ Rs.6,930/-per acre annually in ten equal installments amounting to Rs.69,300/-per acre besides development and administrative expenses. The petitioner was put in possession over the aforementioned land and the petitioner immediately applied for provisional registration before RIADA and the unit of the petitioner was granted provisional registration for a period of one year. The petitioner applied on 14.03.1986 for sanction of term loan before the Bihar State Financial Corporation to set up the Industry for manufacturing of fire bricks amounting to Rs.18,42,000/-and the Bihar State Financial Corporation after physical verification of the proposed site of the project and after considering the expert appraisal project report sanctioned a term loan on 25.11.1986 of Rs.26,25,000/-to the petitioner and accordingly an agreement was executed between the Bihar State Financial Corporation on the one hand and the petitioner on the other hand on 24.11.1987. Thereafter, the RIADA executed an indenture of lease in favour of the petitioner on 12.06.1987 contained in Annexure-3. The petitioner vide letter dated 02.07.1987 applied for renewal/extension of provisional registration, which was subsequently extended. Thereafter, on certain dates, the period of provisional registration was extended. It has been further submitted by the learned counsel for the petitioner that thereafter upon request of the petitioner to the RIADA, Ranchi, it has recommended the Coal India Ltd. for supply of coal to the petitioner unit and vide letter dated 14.03.1989, monthly linkage of coal was granted to the petitioner unit from March 1989. Thereafter, annual renewal of coal linkage were made by the RIADA till the year 1992 and thereafter suddenly from 1993 despite of 25% of dues payment along with written undertaking for further payment of balance dues amount within agreed period till March, 1996 made on 12.02.1993 several requests made by the petitioner, RIADA did not recommend to the C.C.L. regarding renewal of the annual coal linkage of the petitioner unit. He further submits that dur