PRABHA ELECTRO CASTINGS PRIVATE LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(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 dtd. 20/6/2020 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.) It is the petitioner's case that cancellation of petitioner's allotted plot is again in violation of Rule 3(1) of Bihar Industrial Area Development Authority Rules, 1981 ('Rules' for short) read with Sec. 6(2)(a) of the Bihar Industrial Area Development Authority Act, 1974 ('Act' for short). The petitioner's unit ran into heavy loss within few years after its commencement due to insufficient and intermittent electricity supply by the Bihar State Electricity Board. This led to dispute between the Bihar State Electricity Board and the petitioner arising out of Certificate Case No. 04/Electricity/2002-2003. The BIADA was knowing about the dispute and was thus aware that closure of petitioner's unit was bonafide and for reasons beyond its control. However, without complying with principles of natural justice, allotment of petitioner's plot is sought to be cancelled by the impugned communication which is thus legally unsustainable.

(3.) The petitioner's counsel has also submitted that the petitioner may be allowed at least six-month time as per decision of the Division Bench in the case of Bihar Industrial Area Development Authority and Ors. vs. Deepak Paints Pvt Ltd. and Ors. in LPA 353/2008 passed in CWJC No. 7352 of 2007 (Annexure-11), since intervening factors such as illegal demand for electrical dues etc. have delayed commencement of production.