M/S Planet International Through Its Proprietor Sri Ajay Kumar vs. The State Of Jharkhand

Held

The Court held that the cancellation of the allotment and the subsequent appellate order were unsustainable due to a violation of the principles of natural justice. The Court found the JIADA's stand regarding the service of the show-cause notice to be contrary to its own records, noting that the notice was addressed to both M/s. Alok Printing Works and M/s. Planet International and was issued during the COVID-19 pandemic. The Court also observed that the notice was not sent to the permanent address of the sole proprietor, making it difficult to accept that the appellant had sufficient notice. Furthermore, the cancellation order dated October 21, 2022, did not reference any specific breach by the appellant, instead referring to show-cause notices issued to M/s. Alok Printing Works and an inquiry conducted prior to the appellant's allotment. The appellate authority's order was also deemed cryptic and failed to address the appellant's pleas, including the impact of the pandemic. The appellant's undertaking to pay outstanding dues and commence the industry was also noted. Consequently, the Court quashed the appellate order and remitted the matter back to the appellate authority for a fresh decision.

Facts

M/s. Planet International (appellant) is aggrieved by the Jharkhand High Court's order dated August 2, 2023, which upheld the cancellation of its land allotment. The allotment was initially made to M/s. Alok Printing Works and later transferred to M/s. Planet International in 2015. The Jharkhand Industrial Area Development Authority (JIADA) issued a show-cause notice on July 20, 2021, to M/s. Alok Printing Works/M/s. Planet International, citing violations of allotment terms. The cancellation order dated September 30, 2021, was affirmed by the appellate authority on October 21, 2022. The appellant contended that no proper opportunity of hearing was provided before the cancellation, and the show-cause notice was not served at its permanent address, especially during the COVID-19 pandemic. The appellate order was also criticized as cryptic.

Key Issues

1. Whether the cancellation of the land allotment in favor of M/s. Planet International by the Jharkhand Industrial Area Development Authority (JIADA) on September 30, 2021, and affirmed by the appellate authority on October 21, 2022, was in violation of the principles of natural justice, specifically the right to a fair hearing, as argued by the appellant? 2. Whether the show-cause notice dated July 20, 2021, issued by JIADA to M/s. Alok Printing Works/M/s. Planet International, constituted sufficient notice, considering the circumstances of its issuance during the COVID-19 pandemic and its alleged non-service at the appellant's permanent address, as contended by the appellant? Appellant's Arguments: The appellant argued that the cancellation order was passed in violation of natural justice as no adequate opportunity of hearing was provided. They also contended that the show-cause notice was not properly served, particularly during the pandemic, and was not addressed to their permanent address. The appellant further argued that the cancellation order did not refer to any specific breach by them and relied on an inquiry conducted prior to their taking over the allotment. They also offered to pay outstanding dues and abide by the terms for restoration of the allotment. Respondents' Arguments: The JIADA contended that the show-cause notice was served upon the appellant and proof of service was produced before the writ court. They maintained that there was a violation of the terms and conditions of the allotment and the appellant failed to produce evidence of commencing industrial activity, such as VAT/GST numbers, electrical connections, or raw material purchases.