Sushil Kumar Jhunjhunwala @ ... vs The State Of Bihar
2023 Latest Caselaw 3872 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA

                     Civil Writ Jurisdiction Case No.5957 of 2023
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Sushil Kumar Jhunjhunwala @ Sushil Kumar son of Sri Jagdish Prasad Jhunjhunwala, Proprietor Savitri Chemicals, Industrial Area, Dharampur, P.S. and District - Darbhanga.

... ... Petitioner/s Versus

1. The State of Bihar through the Chief Secretary, Old Secretariat, Patna.

2. The Principal Secretary, Department of Industries, Government of Bihar, Patna.

3. The Managing Director, Bihar Industrial Area Development Authority, Patna.

4. The Executive Director (Administration), Bihar Industrial Area Development Authority, Regional Office, Darbhanga.

... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr. Ravindra Kumar Shukla, Adv. For the Respondent/s : Mr. P. K. Shahi (AG) ====================================================== CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY ORAL JUDGMENT Date : 21-08-2023 Heard learned counsels for the parties.

2. The present writ petition is filed for the

following reliefs:-

(i) For issuance of a writ in the nature of certiorari to quash the order dated 16/01/2023 passed by the respondent No. 3, the Managing Director, Bihar Industrial Area Development Authority (hereinafter called as BIADA for brevity) whereby and where under the petitioner's request of Patna High Court CWJC No.5957 of 2023 dt.21-08-2023

extension of lease made way back in the year 1987 persuant to allotment letter dt 18/09/1973 has been disposed of in a most arbitrary and dictatorial manner.

(ii) For issuance of a writ in the nature of 'mandamus' directing/commanding the concerned respondents by issuing FIAT to renew the lease deed dated 14.12.1987 executed by Darbhanga Industrial Area Development Authority (as then existed) for remaining period of 66 years, requisite amount of which is already lying with the Darbhanga Industrial Area Development Authority (as then existed) now Bihar Industrial Area Development Authority.

(iii)This Hon'ble Court is further prayed to adjudicate and hold that the petitioner is duly entitle for renewal of the lease deed dated 14.12.1987 executed by the competent authority of Darbhanga Industrial Area Development Authority (as then existed) for which all paraphemalia and requisite conditions have already been fulfilled by the writ petitioner.

(iii) For issuing appropriate writ in the nature of mandamus directing/commanding the concerned respondents to comply with the requirement of law as much as the existing conditions incorporated in Clause 1 of Part II of the lease deed which has come into existence pursuant to letter no.9615/73 dated 18.09.1973 after depositing requisite Patna High Court CWJC No.5957 of 2023 dt.21-08-2023

amount of Rs. 20,447.10/- as demanded by the office of Darbhanga Industrial Area Development Authority (as then was) in order to lease out the land appertaining to Khata no. 345, Plot no.278 and 279 for a period of 99 years.

3. Learned counsel for the petitioner has stated that

during pendency of the present writ petition the lease-deed of

the petitioner has been cancelled.

4. Thereafter the petitioner has filed I.A. No. 1 of

2023 seeking amendment of the prayer and the said I.A. was

allowed vide order dated 03.07.2023.

5. Learned counsel for the petitioner has stated

that the petitioner was initially allotted lease for the period of 99

years at the provisional rate of Rs. 20,447.10/- (Annexure-1)

and thereafter, a lease-deed was executed in favour of the

petitioner for a period of 33 years (Annexure-2).

6. Learned counsel has stated that as per the terms

and conditions of the lease-deed most specifically Clause-1 of

Part-II which reads as under:-

"That the lease of land/shed detailed in part- I of the Schedule is given for thirty three years to the lessee by the lessor subject to renewal at the option of either party for such period as may be mutually agreed upon".

Patna High Court CWJC No.5957 of 2023 dt.21-08-2023

7. Learned counsel for the petitioner has stated that

the petitioner is entitled to renewal of the lease but the

authorities concerned instead of renew the lease of the petitioner

are insisting for re-allotment of the land. Learned counsel has

stated that at the time of allotting the land and also at the time of

entering into lease-deed the entire subject land was allotted at

the rate of Rs. 56,531.43/- for the three sheds and Rs.

20,447.10/- per acre for the open land but, the authorities

instead of renewing the licence are insisting for re-allotting the

land, and want to charge lease amount of 15 per cent of the land

value which runs into lakhs of rupees and, therefore, prayed this

Court to allow the prayer sought by the petitioner.

8. Per contra, the learned counsel appearing on

behalf of the respondents (BIADA) has stated that the lease-

deed executed in favour of the petitioner has expired in the year

2012 and the petitioner in spite of several reminders was not

coming forward for re-allotment of the land. Learned counsel

has stated that as per the terms and conditions of the original

lease-deed, after expiry of the lease period, the officials have the

prerogative of renewing or re-allotting the said land on such

terms and conditions as they deem fit. Learned counsel has

stated that left with no other option, the authorities had to cancel Patna High Court CWJC No.5957 of 2023 dt.21-08-2023

the lease-deed executed in favour of the petitioner. Learned

counsel has stated that due to the lapses committed by the

petitioner, the land could not be allotted to the petitioner and,

therefore, the impugned order was passed.

9. A perusal of the record shows that the petitioner

has been allotted the land way-back in the year 1973 and,

thereafter, a regular lease-deed was executed in between the

parties vide lease-deed dated 14.12.1987 (Annexure- 2). As per

the terms and conditions of the lease deed, the parties have the

option of renewing the lease-deed for such period as may be

mutually agreed upon. Admittedly, in the present case the lease-

deed has lapsed in the year 2012 and, thereafter, the petitioner

has been making request for renewal of the lease but the

official-respondents have been insisting for re-allotment of the

land and not renewing his lease-deed. This Court for the present

is concerned with the cancellation of the allotment in favour of

the petitioner.

10. A perusal of the cancellation order shows that

the petitioner was not on prior notice before the cancellation

order was passed. Moreover, it is not the case of the respondents

that the petitioner had violated any of the terms and conditions

of the allotment. The only point of difference between the Patna High Court CWJC No.5957 of 2023 dt.21-08-2023

parties is as to whether the lease has to be renewed or it has to

be re-allotted.

11. Having regard to the cancellation of the

allotment without putting the petitioner on notice is opposed to

the principles of natural justice and equity, therefore, the said

cancellation order has to be necessarily set aside and the same is

set aside accordingly.

12. In so far as the renewal of the lase-deed is

concerned, the petitioner is directed to give a representation to

the authority concerned for renewing the lease-deed and for a

reasonable re-fixation of the lease amount within a period of

two weeks from today. If any representation is made, the official

respondents shall duly consider the same taking into

consideration the fact that the petitioner was allotted the land for

the period of 99 years lease and that the lease-deed executed for

the period of 33 years and renew the lease-deed by fixing the

lease amount duly taking into consideration the inflation and

other administrative costs etc. but they cannot insist for

payments of the lease amount at the rate of 15 per cent of the

land rate. The parties are free to negotiate the amount of lease

and come to a mutually agreeable amount. Till such time orders

are passed, the authorities are directed not take any coercive Patna High Court CWJC No.5957 of 2023 dt.21-08-2023

steps. Any order passed shall be communicated to the party.

13. With the above observations, the present writ

petition is allowed to the extent indicated above.

(A. Abhishek Reddy , J)

shakir/-

AFR/NAFR                NAFR
CAV DATE                NA
Uploading Date          24.08.2023
Transmission Date       NA