HC spikes BIADA MD's illegal orders

PATNA: The Patna High Court on Monday struck down Bihar Industrial Area Development Authority (BIADA) managing director K K Pathak’s orders cancelling lease agreements of scores of industries in different industrial areas in the state. Incidentally, Pathak was transferred from the post of BIADA MD in Saturday’s administrative reshuffle in the state. A single bench presided by Justice Ajay Kumar Tripathi held as null and void the exercise of power by the BIADA MD in cancelling the lease agreements. Disposing of about hundred writ petitions filed by affected industrialists, the court ordered BIADA to restore possession and hand over the land, property, plant and machinery to the respective industries. Justice Tripathi held the MD and his subordinates cancelled the lease agreements in illegal exercise of powers which did not vest in them. The power of cancellation of lease agreements is vested with BIADA comprising its chairman and board of directors, and the MD is only a part of BIADA as per the provisions of BIADA Act, 1974, the court held. The court referred to the BIADA Act which provides that if necessary steps are not taken within the fixed period to establish the industry on an allotted plot/shed, BIADA shall cancel the allotment and also forfeit the amount deposited for the allotment. But "all the writ petitioners who have approached the high court are by and large lease holders of various periods and have been carrying on the industrial activities for a long time. It is another issue that despite investment and hard work put in by the entrepreneurs, for many a reason not all of them turned out to be successful in their venture," Justice Tripathi observed. The court held the power of allotment and cancellation of land is vested in its MD "only to the extent of initial allotment and cancellation and not beyond. This cannot be read to confer on him all-inclusive power of authority". The court ruled the only way BIADA could dispossess them of the allotted plots is through moving the civil court of competent jurisdiction by adopting the process of law and only on such an order by the competent court. The high court also refused to recognise any third party interest which may have been created because of "such illegal acts" of BIADA MD. For, a right or claim flowing from an illegal act cannot be legal. The petitioners’ counsel included Basant Kumar Chaudhary, Vikash Singh, Prashant Pratap and Khursheed Alam. The Times of India; 18 Mar 2008, 0202 hrs IST , Ravi Dayal , TNN