Entrepreneurs Establishing Industries Should Be Given Opportunity To Begin Production: Patna HC

The Patna High Court recently awarded partial relief to an entrepreneur whose land allotment was revoked by the Bihar Industrial Area Development Authority (BIADA) due to failure to begin production after establishing an industry in Muzaffarpur.

The Court accepted the petitioner’s undertaking to begin production within 60-90 days.

A bench comprising Justice Sanjeev Prakash Sharma observed, “Any entrepreneur should be given an opportunity for setting up an industry and starting production. A company or industrial unit may cease production for a variety of causes. However, the most important aspect of allotment is that the industry begin production right away, bearing in mind the primary purpose of allotment of an industrial land.”

Counsel for the petitioner, Mr. Abhishek Kumar Pandey, relied on an order issued by a Division Bench of the High Court ordering the BIADA to recall the order of cancellation subject to the petitioner providing an undertaking to begin production within six months of the date of the order of cancellation. In this instance, the petitioner made a similar undertaking.

Mr. Pankaj Kumar Sinha, lawyer for the BIADA, stated that the petitioner must follow the undertaking.

Justice Sharma noted that the petitioner had promised to make the unit completely operational and functional to at least 380% of the product sanctioned capacity, as well as to make every effort to clear all statutory dues.

Having taken note of the foregoing, Justice Sharma granted the writ petition to the extent stated above and in accordance with the petitioner’s undertaking, and ordered, “In the event that the petitioner is handed over the property in question, the petitioner shall take all steps and comply with the undertaking, failing which the petitioner would be liable not only to vacate the premises but also to contempt proceedings before this Court. As a result, the writ appeal is granted.”