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

Held

The Court held that there was no ground for interference in the exercise of its extraordinary jurisdiction. While the petitioner argued that no show cause notice was issued, the respondents presented a show cause notice dated 20.07.2021 regarding the non-commencement of industrial activity. The respondents also claimed that the appeal was heard before dismissal. The Court did not find sufficient material on record to suggest that the petitioner had taken bona fide steps for installation of electrical connections, purchase of raw materials, or obtaining VAT and GST numbers, which are indicative of industrial activity. In the absence of such evidence, the cancellation of the allotment and its affirmation in appeal by the competent authority were deemed valid. Therefore, the writ petition was dismissed.

Facts

The petitioner, M/s Planet International, a proprietorship firm, was allotted Plot No.I/D-43/139 (P) A in the Bokaro Industrial Area. The allotment was originally made to M/s Alok Printing Works and later transferred to the petitioner after a change in constitution and ownership. A lease deed was executed in favour of the petitioner on 08.08.2015. The petitioner claims to have paid rent regularly and was in the process of setting up infrastructure, which was interrupted by the COVID-19 pandemic. The Jharkhand Industrial Area Development Authority (JIADA), through its Regional Director (Respondent No.4), cancelled the allotment on 30.09.2021. The petitioner's appeal against this order before the Principal Secretary, Department of Industries (Respondent No.2) was dismissed on 21.10.2022. The petitioner challenged both cancellation orders in the High Court, alleging violation of natural justice and statutory provisions.

Key Issues

1. Whether the cancellation of the industrial plot allotment by Respondent No.4, without issuing a show cause notice and providing an opportunity of hearing, violates the principles of natural justice and Section 6(2)(a) of the Jharkhand Industrial Area Development Act, 2001? The petitioner argued that the cancellation order was passed without prior notice or hearing, contravening Section 6(2)(a) of the Act, which mandates a one-month notice period before cancellation. They contended that the dismissal of their appeal by Respondent No.2 was mechanical. The respondents (JIADA) argued that a show cause notice was issued on 20.07.2021 regarding the violation of allotment terms, specifically the non-commencement of industrial activity. They asserted that there was no evidence of steps taken towards industrial activity, such as obtaining GST/VAT numbers or electrical connections, and that the cancellation was justified after 15 days of the notice. The respondents also stated that the appeal was dismissed after hearing the petitioner.