The High Court · 2024
Case Details
IN THE HIGH COURT OF JHARKHAND AT RANCHI L.P.A. No. 474 of 2023 M/s Planet International, a proprietorship firm having its unit at Plot No. I/D-43/139 (P) A, Bokaro Industrial Area, Bokaro – 827014 (Jharkhand) office at Lavanya (Ground Floor) Arsande Road, Kanke Block P.O. – Boreya, P.S.-Kanke, Ranchi-834006 (Jharkhand) through its proprietor Sri Ajay Kumar, S/o Late Salik Prasad, by faith Hindu, by occupation-Business, aged about 52 years, resident of Flat No. 4A, Ratan Heights Apartment, Tagore Hill Road, Near Antu Chowk, Morabadi, P.O.-Ranchi University, P.S.-Bariatu, District-Ranchi Appellant (Jharkhand) – 834008. ... ... ... Versus 1.State of Jharkhand. 2.The Principal Secretary, Department of Industries Government of Jharkhand Officiating at 2nd Floor, Jharkhand State Building Construction Corporation Ltd. Building, Project Bhawan Complex, Dhurwa, P.O. & P.S.- Dhurwa, District-Ranchi, Jharkhand. 3.The Jharkhand Industrial Area Development Authority through its Regional Director, Bokaro Region, BIADA Building, Balidih, P.O. & P.S.-Balidih, District-Bokaro, Jharkhand. 4.The Regional Director, Jharkhand Industrial Area Development Authority BIADA Building, Balidih, P.O. & P.S.-Balidih, District- Bokaro, Jharkhand. 5.The Secretary-cum-Regional Deputy Director, Jharkhand Industrial Area Development Authority, BIADA Building, P.O. & P.S.-Balidih, Respondents District-Bokaro, Jharkhand. … … ... --------- CORAM: HON’BLE THE ACTING CHIEF JUSTICE HON’BLE MRS. JUSTICE ANUBHA RAWAT CHOUDHARY For the Appellant For State For JIADA
Legal Reasoning
--------- : Mr. Indrajit Sinha, Advocate : Mr. Vipul Poddar, Advocate : Mr. Rahul Saboo, G.P.-II : Mr. Gaurang Jajodia, A.C. to G.P.-II : Mr. C.A. Bardhan, Advocate --------- 10th January 2024 Per, Shree Chandrashekhar, A.C.J. M/s. Planet International is aggrieved by the writ Court’s order dated 2nd August 2023 declining to interfere with the order of cancellation of allotment in its favor dated 30th September 2021 which was affirmed by the appellate authority on 21st October, 2022. 2. L.P.A. No. 474 of 2023 2. The writ Court accepted the stand taken by the Jharkhand Industrial Area Development Authority (in short, “JIADA”) that there was violation of the terms and conditions of allotment and the appellant did not produce any evidence so as to indicate that it has started the industrial activity which would be reflected in VAT and GST numbers, electrical connection, purchase of raw materials etc. 3. Mr. Indrajit Sinha, the learned counsel for the appellant submits that the cancellation of allotment of a piece of land through Memo No. 407 dated 5th June 2015 was in violation of the natural justice, inasmuch as, no opportunity of hearing was afforded to the appellant before the order of cancellation was passed on 30th September 2021. 4. Briefly stated, M/s. Alok Printing Works was allotted 0.09 acres land comprised in industrial plot no. I/D-43/139 (P)A situated at Bokaro for setting up the industry for printing of various printed stationery. According to the appellant, M/s. Alok Printing Works had installed the machinery and arranged other allied materials for starting the industrial activity but it could not continue the business and therefore show-cause notices were issued to it on 19th August 2013 and 30th August 2013. In the meantime, the partners of M/s Alok Printing Works retired from the business and M/s Planet International took over the industry. This is not in dispute that by an order dated 5th June 2015 the Bokaro Industrial Area Development Authority (in short, “BIADA”) permitted change of ownership and a fresh lease deed was executed in favor of M/s. Planet International; a corrigendum deed was executed on 8th August 2015. During the pandemic of COVID-19, a show-cause notice was issued by the Regional Director of the JIADA on 20th July 2021 to M/s. Alok Printing Works and a copy thereof was forwarded to M/s Planet International. As noticed above, the allotment in favor of M/s Planet International was cancelled by an order dated 21st October 2022 and the appellate authority has refused to interfere with the order of cancellation of allotment. 5. The appellant has pleaded that no show-cause notice was issued to it before the allotment in its favor was cancelled by an order dated 21st October 2022. The JIADA has however taken a stand that the 3. L.P.A. No. 474 of 2023 show-cause notice was served upon the appellant and proof thereof was produced before the writ Court. In our opinion, this stand of the JIADA is contrary to its own records, inasmuch as, the show-cause notice dated 20th July 2021 was addressed to M/s Alok Printing Works/ M/s. Planet International. This is also pertinent to indicate that at the time when the said show-cause notice was issued the whole nation was engulfed with the pandemic of COVID-2019. The show-cause notice was not issued at the permanent address of the sole proprietor of the industry and, therefore, it is difficult to accept the stand taken by the JIADA that the appellant had sufficient notice of the proposed cancellation of allotment. This also appears on a glance at the cancellation order dated 21st October 2022 that there is no reference of any breach/violation of the conditions of allotment by the appellant. The cancellation order dated 21st October 2022 referred to the show-cause notices issued to M/s Alok Printing Works and, in the show-cause notice, there is a reference of an inquiry conducted on 22nd February 2012 which was prior to the allotment in favor of the appellant. 6. This is well-settled that any order administrative/quasi judicial which may ensue civil consequence should be made after affording sufficient opportunity to the person affected. This is also too well-settled a proposition in law that the rules of natural justice are required to be followed even in a case where there is no such statutory requirement. This lacuna in law could have been sufficiently redressed by the appellate authority but then the appellate order dated 27th January 2023 is also a cryptic order. From the cancellation order dated 21st October 2022, it is quite demonstrable that the show-cause notices were issued to M/s. Alok Printing Works not on the ground that it had failed to commence the industrial activity. On the contrary, M/s. Alok Printing Works had started the industry that can be inferred from order dated 21st October 2022 wherein the Regional Director has observed that the industry was found closed during an inspection. This is also a matter of record that no inspection was carried during the pandemic period and the reference in the show-cause notice dated 20th July 2021 is to the inspection dated 22nd February 2012. 4. L.P.A. No. 474 of 2023 7. Under section 6(2)(a) of the Jharkhand Industrial Area Development Authority Act, the appeal preferred by the appellant being a statutory appeal was required to be decided both on facts and law. However, the appellate authority did not even advert to the plea raised by the appellant. The appellate authority also overlooked the pandemic of COVID-2019 during which a show-cause notice is said to have been issued by the JIADA. In course of hearing, Mr. Indrajit Sinha, the learned counsel for the appellant has stated that the appellant would pay all outstanding dues and shall abide by the decision of the appellate authority for restoration of allotment in its favor on the terms and conditions as provided under clause 19 of the Jharkhand Industrial Area Development Authority Regulations, 2016. The appellant has also undertaken to commence the industry within the stipulated time once necessary permissions are granted to it. This also needs no reiteration that the appellant shall have the option as indicated in the letter dated 5th June 2015 to get a written permission to start the industry for some other work also. Furthermore, by filing a supplementary affidavit dated 5th January 2024, the appellant has produced on record sufficient materials to indicate that it has necessary capacity to start the industry. 8. Having regard to the aforementioned facts, we are inclined to interfere in this matter and, accordingly, the order dated 2nd August
Decision
2023 passed in W.P.(C) No. 1681 of 2023 is set aside. The writ petition is allowed to the extent that the appellate order dated 21st October, 2022 is quashed and the matter is remitted back to the appellate authority to pass a fresh order in the light of the observations made in this order. 9. This Letters Patent Appeal is allowed in the aforesaid terms. (Shree Chandrashekhar, A.C.J.) (Anubha Rawat Choudhary, J.) APK