BADRI MEHROTRA Vs. STATE OF BIHAR

JUDGEMENT

(1.) HEARD the counsel for the parties.

(2.) PETITIONER has filed this application (i) for a direction to the respondent, Bihar Industrial Area Development Authority, for settlement of up -to -date account of the petitioner as per Bihar industrial Policy issued by the Government of Bihar so that he can be free from the liabilities of the loan (ii) for a direction to the respondent authority to take back 0.185 acres lands, i.e., part of the vacant land leased to the petitioner vide lease deed, dated 15.12.1988, by the North Bihar Industrial Development Area Authority, Muzaffarpur, and (iii) for quashing memo no. 1086/D, dated 18.11.2003 issued by Bihar Industrial Area Development Authority (hereinafter referred to as, 'the BIADA ') imposing additional burden of 15 per cent land value for giving change in the unit or sale of the unit.

(3.) BIHAR Industrial Policy came into existence on 1st September, 1986, and main object of this policy was to give incentive to the industries in Bihar and to accelerate the progress of all industries, namely, large, medium, small and tiny. Clause 2 of the policy relates to concession and incentives and Clause 3 to infra -structural assistance. Clause 3(1)(b) of the Industrial Policy provide "Sheds would be available for outright purchase or on hire purchase basis on payment of cost in equal instalments. The rate of interest will be 5 per cent with 2 per cent rebate for timely payment". Clause (c) provided -"The developed land in Industrial Area/Estates would be given on lease for 99 (ninety nine) years and the cost and interest will be realised in instalments in the same manner as mentioned in (b)". Petitioner 'scase is that in violation of Bihar Industrial Policy, Clause 3(b) and (c) in the lease deed 12 per cent compound interest was made chargeable when it should have been 5 per cent simple interest. Realising this, petitioner represented his case to, the Executive Director, BIADA Muzaffarpur, stating that the agreement was executed in good faith and belief that the provisions made in the Industrial Policy must have been followed properly. The facility of 5 per cent interest has been extended to other similarly situated units but from the petitioner, 12 per cent interest is being charged, as such, the disparity should be removed. Nothing was done by the respondents even after receiving repeated representations of the petitioner. After some time the industrial unit of the petitioner started running in loss, as such, petitioner applied for permission to sell the unit and also for issuance of no dues certificate with regard to allotted land as the cost of land has already been paid. Neither no dues certificate was issued nor the permission for selling the land was granted to the petitioner. The petitioner, thereafter, made several requests and finally he received a letter issued from Bihar Industrial Area Development Authority, Regional Office, Muzaffarpur, informing that there is no provision for taking back the land of the unit but in case petitioner wants to sell the unit to some other person he can transfer it after depositing proper fee and after clearance of the dues of the unit. Petitioner in response to this letter again fifed his representation stating that one of his senior members of the unit is ready to take over the management of the firm and to clear the legitimate dues as per rules but without making payment of additional 15% charge.