UJJAWAL COAL PVT LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner has filed the present writ application for quashing the order dated 20.10.97 (Annexure-15) passed by the Managing Director, Darbhanga Industrial Area Development Authority (hereinafter referred to as the Diada) whereby a direction has been issued to the Officer-in-charge of Samastipur Police Station to deliver the physical possession of Plot Nos. III, 112, 113, 116 and 117(p) situate in Industrial Area, Samastipur to respondent No. 5, for directing the respondents to hand over the vacant possession of the land in question to him and to grant provisional registration certificate to establish an industry.

(2.) The facts necessary for disposal of the present writ application are that the Diada was established for industrial development in the districts of Darbhanga, Muzaffarpur, Samastipur, Begusarai, Saharsa, Madhepura, Madhubani and Katihar. It has developed the industrial estate/area in all the aforesaid districts and allotted plots to the entrepreneurs for getting up new industries and for expansion of existing industries. The petitioner applied for allotment of plot in the industrial area at Samastipur for establishing a plant for special smokeless fuel plant based on coal. The Managing Director of the Diada granted provisional registration for establishment of industry for a period of one year. The aforesaid authority of the Diada allotted 1.50 acres of land in the aforesaid industrial area vide memo dated 28.2.89 (Annexure-2) for a period of 33 years on payment of Rs. 90,000.00. Later on at the request of the petitioner 0.5 acres of land was also allotted on payment of Rs. 30,000.00. On 13.11.90, a lease deed was registered with regard to the aforesaid areas in favour of the petitioner for 33 years. According to the terms between the parties Rs. 24,000.00 was to be deposited before the execution of the lease and the remaining amount was to be deposited in instalments. The petitioner deposited Rs. 24,000.00 and thereafter, the lease deed was executed. The physical possession was also given to the petitioner on 9.10.90.

(3.) The petitioner applied for loan before the Bihar State Financial Corporation for establishing the industry. The loan was to be sanctioned on the basis of the recommendation letter issued by the Director of Industry. The matter was delayed by the Director of Industry. Lastly on 27.1.92, he recommended for grant of loan and thereafter on 20.10.92 a term of loan of Rs. 40 lacs was sanctioned to the petitioner. The aforesaid loan was sanctioned on fulfilment of certain conditions mentioned in the letter of sanction. The petitioner took steps but due to delay committed by the authority of the Diada in recommending the case for grant of loan to the petitioner the registration lapsed as a result of which the loan was also cancelled.