M/S. Balaji Food Products vs The State Of Bihar
2023 Latest Caselaw 4623 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.10676 of 2023
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M/s. Balaji Food Products through its proprietor Nidhi Gupta, Gender- Female, aged about 43 years, W/o Santosh Kumar Gupta, R/o- Lalbagh near Hanuman Mandir, War no. 11, Mohalla,- Lalbagh, Darbhanga, Bihar- 846004.

... ... Petitioner/s Versus

1. The State of Bihar through the Additional Chief Secretary, Department of Industries, Govt. of Bihar.

2. The Additional Chief Secretary, Department of Industries, Patna, Bihar.

3. The Bihar Industrial Area Development Authority (BIADA), Udyog Bhawan, Gandhi Maidan, Patna through it Managing Director.

4. The Managing Director, Bihar Industrial Area Development Authority (BIADA), Udyog Bhawan, Gandhi Maidan, Patna.

5. The Joint Managing Director, Bihar Industrial Area Development Authority (BIADA), Udyog Bhawan, Gandhi Maidan, Patna.

6. The Executive Director, North, Bihar Industrial Area Development Authority (BIADA), Darbhanga Cluster.

7. The Deputy General Manager, Muzaffarpur Cluster, Bihar Industrial Area Development Authority (BIADA), Regional Officer, Darbhanga Cluster.

8. The Area Incharge, Industrial Area- Pandual, Madhubani, Darbhanga.

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

For the Petitioner/s : Mr. Sachin Kumar, Adv.

     For BIADA              :      Mr. Yashraj Bardhan, Adv.
     For the Respondent/s   :      Smt. Kumari Amrita (Gp3)

====================================================== CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY ORAL JUDGMENT Date : 15-09-2023 Heard the learned counsel for the parties.

2. This writ petition has been filed for the following

releifs;

"(i) For quashing the order dated 1.06.2023 passed in Appeal Case No. 171/2023 communicated vide Memo No. 3439 dated 8.06.2023 by the Respondent No. 2, whereby and where under the Appeal filed by the petitioner has been dismissed in a mechanical, arbitrary, whimsical, pick and choose manner, whereas the similarly situated allottees have been given the benefits as are being given by the Hon'ble Court in C.W.J.C. No. 6883/2020, M/s. Umesh Service Station vs. The State of Patna High Court CWJC No.10676 of 2023 dt.15-09-2023

Bihar and Ors. and in terms of Appeal No. 76/2022.

(ii) For setting aside order bearing Memo No. 105 dated 2.02.23 passed by the Respondent No. 7, The Deputy General Manager, Muzaffarpur Cluster, Bihar Industrial Area Development Authority (BIADA), Muzaffarpur, (hereinafter referred to as 'BIADA') whereby and where under the allotment of land measuring an area of 3 Acres for the establishment of Hybrid seed processing, packaging etc. within the Industrial Area- Bettiah has arbitrarily been cancelled, since the reason recorded therein is non-est, not sustainable that too being perverse and in complete violation of the principles of natural justice and against all canons of justice.

(iii) For declaration and to hold that the aforesaid impugned order dated 01.06.2023 passed in Appeal Case No. 171/2023 is illegal and in contravention to the settled principles of law i.e. Nemo Judex in Causa Sua (No one should be made a judge on his own cause) as the impugned order vide Memo 02.02.2023 has been passed by Respondent No. 4 Managing Director and the order dated 01.06.2023 passed in Appeal Case No. 171/2023 has been passed by respondent no. 2 Principal Secretary, Department of Industries who is holding the same post at same time and as such liable to be quashed on this ground itself.

(iv) For directing the respondents forthwith not to take any coercive steps against the allotment of petitioner till disposal of this writ application.

(v) For a direction upon the Respondents to give the benefits as are being given to the similarly situated allottees in C.W.J.C. No. 13558/2022, C.W.J.C. No. 12560/2022, C.W.J.C. No. 6883/2020, C.W.J.C. No. 13037/2022 and other analogous cases."

3. Learned counsel for the petitioner has stated that

due to unavoidable circumstances like Covid-19 etc., the petitioner Patna High Court CWJC No.10676 of 2023 dt.15-09-2023

could not start the commercial production and the same is not

deliberate but for the reasons beyond the control of the petitioner and

therefore, an opportunity may be given to the petitioner to start

commercial production.

4. Learned counsel for the petitioner has stated that

under the similar circumstances, a Division Bench of this Hon'ble

Court in C.W.J.C. No. 15567 of 2022 (M/s Maa Kali Food Products

Industrial Growth Centre, Maranga Vs. The State of Bihar & Ors.)

dated 02.12.2022 has set aside the order of Bihar Industrial Area

Development Authority (hereinafter referred to as "the BIADA")

based on the undertaking given by the petitioner therein and an

opportunity was given to the industry to start its commercial

production.

5. Learned counsel for the petitioner has stated that the

petitioner has also filed an undertaking before this Court which reads

as under:-

"i) That 1, hereby undertake that within sixty ninety days, petitioner will start commercial production with BIADA handing over possession of the premises to the petitioner/recall of the order of cancellation.

With the petitioner failing to do, BIADA shall take over vacant and peaceful possession of the premises from the petitioner. ii) That I also undertakes that within six/nine months, petitioner shall make the unit fully operational and functional at least to the capacity of 80% for the product sanctioned and allowed to be Patna High Court CWJC No.10676 of 2023 dt.15-09-2023

manufactured as per the original terms of allotment.

(iii) That also undertakes that I shall make itself compliant with all mandatory statutory requirements, including the ones protecting the interest of the employees and I shall clear all other statutory dues including G.S.T/electricity charges etc in this period.

iv) That I further undertake that I shall in the event of failure on my part to comply with the undertaking, BIADA shall take over vacant and peaceful possession of the premises from the petitioner with liberty for further allotment to 3rd party, with the petitioner losing all rights therein.

v) That I further undertake that I shall be liable for initiation of proceedings for contempt for having violated the undertaking furnished to the Court"

6. Having regard to the above said undertakings which is

reproduced above and the judgment of this Hon'ble Court passed in

C.W.J.C. No. 15567 of 2022 dated 02.12.2022, wherein this Hon'ble

Court duly taking into account the undertaking given by the

petitioner therein has set aside the order of the appellate authority as

well as the order of cancellation passed by the BIADA and granted

an opportunity to the petitioner to start its commercial production.

7. Having regard to the above and also the submissions

made by the learned counsel for the BIADA, this Court is of the

considered opinion that the ends of Justice would be met if, the

undertaking given by the petitioner is accepted and the petitioner

given an opportunity of starting commercial production. The Court

makes the following orders:-

Patna High Court CWJC No.10676 of 2023 dt.15-09-2023

8 (i). As it is stated that possession has been taken by the

BIADA, the same shall be handed over to the petitioner immediately

after the receipt of this order. The petitioner shall then furnish a

bank guarantee for an amount of Rs. two lakhs within one week

from the date of handing over the possession. Thereafter, the

petitioner shall clear all the outstanding dues, if any of the BIADA

within a period of two weeks thereof. The petitioner shall start the

commercial production within ninety days from the date of handing

over the possession and start manufacturing plan as approved by the

Bihar Industries Commercial Policy, 2016.

8(ii). Consequence of breach thereof, including initiation

of proceedings for contempt for having violated the undertaking

furnished before this Court stands explained to the petitioner

through the learned counsel.

8.(iii) Undertaking of the petitioner dated 20.07.2023 is

accepted and taken on record.

8.(iv) Petitioner has been made aware of the

consequences of breach thereof, including initiation of proceedings

for contempt;

8.(v) In the event of default of the undertaking, petitioner

shall hand over vacant and peaceful possession of the allotted

property to BIADA within a period of two weeks;

Patna High Court CWJC No.10676 of 2023 dt.15-09-2023

8.(vi) It is made clear that, in case the petitioner fails to

start the full commercial production within the stipulated time and

also fails to hand over the vacant and peaceful possession of the

allotted property to BIADA within a period of two weeks thereof,

the authorities of the BIADA are free to take possession of the

premises in question.

8.(vii) Consequently, the order dated 02.02.2023 passed

by respondent no. 7, the Deputy General Manager, Muzaffarpur

Cluster, Bihar Industrial Area Development Authority (BIADA),

issued vide Memo No. 105 (Annexure-P/2) and order dated

01.06.2023 passed in Appeal Case No. 171 of 2023 communicated

vide Memo No. 3439 dated 08.06.2023 by Respondent No. 2, the

Additional Chief Secretary-cum-the Appellate Authority,

Department of Industry, Government of Bihar contained

(Annexure-P/3) are accordingly quashed and set aside.

9. With the above observations, the present writ petition

stands allowed.

(A. Abhishek Reddy, J) Ayush/-

AFR/NAFR                       NAFR
CAV DATE                         NA
Uploading Date               20.09.2023.
Transmission Date                NA