[Land Allotment] Entrepreneurs Setting Up Industry Should Be Given Opportunity To Start Production: Patna High Court

The Patna High Court recently granted partial relief to an entrepreneur whose land allotment was cancelled by Bihar Industrial Area Development Authority citing failure to start production after setting up of industry in Muzaffarpur.

The Court took on record petitioner's undertaking to start production in 60-90 days.

A bench comprising Justice Sanjeev Prakash Sharma observed,

“any entrepreneur should be given an opportunity for setting up of an industry and starting production. There may be several reasons where a company or an industrial unit may stop production. However, the essential feature for allotment is that the industry should start production initially keeping in view the basic purpose of allotment of an industrial land.”

Mr. Abhishek Kumar Pandey, counsel for the petitioner, relied on an order issued by a Division Bench of the High Court directing the BIADA to recall the order of cancellation subject to the petitioner therein providing an undertaking to begin production within six months of the date of the order of cancellation. The petitioner in this case also gave a similar udnertaking.

Mr. Pankaj Kumar Sinha, the counsel appearing for the BIADA submitted that the petitioner must abide by the undertaking.

Justice Sharma noted that the petitioner had assured to make the unit fully operational and functional to the capacity of at least 380% product sanctioned and also attempt to clear all the statutory dues.

Having noticed the above, the Justice Sharma allowed the writ petition to the aforesaid extent and in terms of the undertaking given by the petitioner and directed, “In the event of the petitioner being handed over the property in question, the petitioner shall take all steps and comply with the undertaking, failing which the petitioner would be liable not only to vacate the premises but also to contempt proceeding before this Court. Writ petition is allowed accordingly.”

Case Title: M/s Aman Industries vs. The State of Bihar through its Principal Secretary and Ors Civil Writ Jurisdiction Case No.1874 of 2023

Citation: 2023 LiveLaw (Pat) 22

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