SCOPE SALES PVT LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) Petitioner is a Private Limited Company, which wants quashing of an order dated 4.4.2009 passed by the Managing Director of Bihar Industrial Area Development Authority (hereinafter referred to as BIADA). By virtue of this order contained in Annexure-9, an allotment of land having 2.55 acres made in favour of the petitioner located at Plot No. C-34 in the Industrial Area of Patliputra has been cancelled. This land was initially allotted to the petitioner company for setting up of a commercial complex like a Mall-cum-Multiplex for which, according to the petitioner, all the formalities had been completed and the demand raised for such allotment was also met by timely payment to BIADA. Fact as such relating to allotment of land by BIADA in favour of the petitioner is not a matter of dispute. There was an advertisement issued on 6.6.2007 in daily Newspaper inviting persons interested in auction of the plots in the industrial area. Petitioner became the highest bidder for Plot No. C-34 and a total sum of Rs. 2,32,20,000.00 was the bid amount. The land was settled in favour of the company for construction of a multiplex-cum-shopping mail.

(2.) Though initially area indicated for the said plot was 1.80 acres, however, on final measurement at the time of delivery of possession it turned out to be 2.55 acres for which additional demand was raised as well as deposited amounting to Rs. 3,38,98,000.00.

(3.) It is the contention of the counsel for the petitioner that after the allotment petitioner invested a large sum of money in construction of site plan drawing as well as business development which has been assessed at rupees five crores. While this process was going on, a letter was issued to the petitioner on 29.3.2008 restraining him from making any further construction till a final decision was taken on the issue. This communication is Annexure-5. The Executive Director of BIADA has issued this letter on a directive issued by the Department of Industry. Petitioner made request for withdrawing the restraint order for which a recommendation was also made in his favour by the Managing Director of BIADA. However, instead of withdrawing the order of restraint, show cause notice dated 10.11.2008 and 4.3.2009 annexed as Annexures-7 and 7/1 came to be issued indicating therein that since the plot of land is now required for setting up of Indian Institute of Technology, Patna, a larger public interest needed to be addressed so why the allotment be not cancelled and possession be resumed by BIADA.