Accropoly Metal Industries Private Limited vs The State of Jharkhand and Others

The Petitioner-Respondent claims that he intended to get the plot No. M-10, 4th Phase, Industrial Area, Jamshedpur having an area measuring 3.4 acres which was belonging to M/s Jamshedpur Steel Private Limited and for that in furtherance to obtain the said industrial plot, the Petitioner entered into an agreement with the said M/s Jamshedpur Steel Private Limited on 29.6.2009 and obtained his deed of surrender which is in consonance with the claim made in the lease deed executed in favour of M/s Jamshedpur Steel Private Limited by Adityapur Industrial Area Development Authority(in short "AIADA") and the date of lease deed is 22.2.1996. It is submitted that the Petitioner''s case for allotment of this plot was under consideration before the AIADA which is evident from annexure-6 submitted in the writ petition wherein Petitioner was informed that a decision was taken to place his case of surrender of land by M/s Jamshedpur Steel Private Limited to allot it to the Petitioner M/s Hardrock Auto Private Limited before the committee.

However the present Appellant''s case is that in term of the Clause contained in the lease deed referred above executed between M/s Jamshedpur Steel Private Limited and the AIADA, the Appellant obtained the deed of surrender on 19.9.2009 by which M/s Jamshedpur Steel Private Limited surrendered its land to AIADA. The said M/s Jamshedpur Steel Private Limited was since defaulter to the Bihar State Financial Corporation, therefore, the Appellant made payment of huge amount of Rs. 62,77,977/-through the said defaulting party i.e. M/s Jamshedpur Steel Private Limited and the AIADA itself got the valuation of the land in question of the plot in dispute and on the basis of that valuation, the Appellant deposited Rs. 18,87,320/-vide receipt dated 29.10.2009, copy of which has been placed on record along with the reply. Since the entire amount of the Bihar State Financial Corporation was paid, therefore, the original lease deed was given to the defaulting Company i.e. M/s Jamshedpur Steel Private Limited by the Bihar State Financial Corporation and in turn M/s Jamshedpur Steel Private Limited handed over this original lease deed to the Appellant on 7.10.2009 and the Appellant in turn deposited this lease deed with AIADA.

The learned Single Judge while allowing the writ petition of the Petitioner observed that AIADA have no procedure in the matter of allotment of the industrial plot.

During the argument, it has been brought to our notice that AIADA was constituted under the Bihar Industrial Areas Development Authority Act, 1974 and it is also brought to our notice that they are under the Bihar Industrial Area Development Authority Rules, 1981 also.

We perused the entire Act and the Rules as well as the conditions mentioned in the lease deed referred above, copy of which has been provided to us by the learned Counsel for the Appellant. The issue prima-facie appears to be a private disputed matter in view of the fact that there is documentary evidence on record indicating that writ Petitioner-Respondent applied for the plot in question and a decision was taken for placing its case before the competent authority and Appellant is another applicant for the same piece of land and claiming his right in the same manner as has been claimed by the writ Petitioner i.e. on the basis of deed of surrender executed by the same defaulting party. The Respondent contended in writ petition also was that he has paid huge amount of Rs. 88 lacs to the Respondent-defaulting company for discharge of its liability of the Financial Corporation as well as of the State Bank of India and in such matter, an order of cancellation of lease of the defaulting party was passed by AIADA on 21.10.2009 on the ground that the defaulting Company took money from the writ Petitioner-Respondent and they also took money from the Appellant to discharge its liability and, therefore, on this ground the lease of the defaulting Company i.e., M/s Jamshedpur Steel Private Limited was cancelled. The said order of cancellation of lease deed dated 21.10.2009 has not been challenged by the defaulting Company i.e., M/s Jamshedpur Steel Private Limited and has been challenged by the writ Petitioner-Respondent which may be due to the reason that he sought allotment of the land unit in his favour.

Be that as it may, none of the parties has produced copies of any decision of the authority of the AIADA wherein the parties are permitted to negotiate with the defaulting company and none of the contesting parties produced any document to show how the deed of surrender was dealt with except the order placed on record by the writ Petitioner referred above by which a decision was taken to place the matter before the competent authority for its consideration.

What procedure has been shown to us by learned Counsel for AIADA for allotment of the land to the parties by the AIADA is prima-facie reason for recording finding by the learned Single Judge.

The issue of public importance arises in this Letters Patent Appeal because of the simple reason that as per document placed on record by the parties including by AIADA a vague procedure has been prescribed to deal with such situation of surrender, cancellation and consequently allotment of the industrial plot by the AIADA. It is admitted case that plots given after cancellation and surrender are not notified nor applications are invited thereafter. The application can be submitted even prior to availability of the land and the project can be approved by the AIADA and direction can be issued to the said applicant to search out the appropriate plot for himself. Prima-facie, entire procedure appears to be quite strange for which a reasonable notice is required to be given to AIADA to explain how they are dealing with the property vesting with them and for which they have granted lease in favour of the industrialists and who have defaulted and for all these issues, it will be appropriate to look into the entire record of the plot No. -M-10, 4th Phase, Industrial Area, Adityapur, Jamshedpur wherein the cases of the writ Petitioners and present Appellant have been considered and orders may have been passed by the competent authority so as to know the level at which decisions are taken in this particular case. Therefore, Adityapur Industrial Area Development Authority (AIADA), Jamshedpur is directed to submit the original record of plot No. -M-10, 4th Phase, Industrial Area Adityapur, Jamshedpur along with all proceedings taken at the request of both the parties i.e., Appellant and writ Petitioner as well as if any order was passed for the defaulting company and they may also disclose that these transactions of payment to the Bihar State Financial Corporation and the surrender of plot of the defaulting company and acceptance of the land in question was in consequence to the decision taken by the competent authority of AIADA.

Put up this case on 10.8.2011. Meanwhile, no further proceedings be taken with respect to disputed plot No. M-10, 4th Phase, Industrial Area Adityapur, Jamshedpur and all the parties should maintain status quo with respect to the premises of said industrial unit.

Notice of this petition may also be sent to the Respondent No. 7 i.e. M/s Jamshedpur Steel Pvt. Limited by both modes for which requisites etc. must be filed by 18.7.2001 and the Respondent AIADA shall also free to submit an additional affidavit to explain the situation.