Assessee accepts to pay GST/ Electric Charges Dues: Patna HC BIADA to Recall Order Passed Cancelling the Allotment of Premises [Read Order]

The Patna High Court (HC)has directed the  Bihar Industrial Area Development Authority (BIADA)to recall the order passed on cancelling the allotment of the premises since the assessee accepts to pay the GST/Electric Charges Dues as per the undertaking.

Premi Printing Press, the petitioner challenged the petition to quash the order dated 20.09.2022 passed by the Principal Secretary Department of Industries in Appeal Case No. 92/2022 by which the appeal of the petitioner has been dismissed.

It was stated that as of date possession of the unit/plot has not been taken over, which fact is seriously disputed by the counsel for the respondent BIADA.

It was stated that within sixty/ninety days, the petitioner will start commercial production with BIADA handing over possession of the premises to the petitioner/recall of the order of cancellation. With the petitioner failing to do, BIADA shall take over vacant and peaceful possession of the premises from the petitioner.

Further stated that within six/nine months, the petitioner shall make the Unit fully operational and functional at least to the capacity of 80% for the product sanctioned and allowed to be manufactured as per the original terms of allotment.

As per the undertaking, the petitioner accepted to clear all up-to-date dues payable to BIADA within four weeks from the date of handing over possession/recall of the order of cancellation.

It was evident that as per the undertaking when the failure occurred on the part of the petitioner to comply with the undertaking, BIADA shall take over vacant and peaceful possession of the premises from the petitioner with liberty for further allotment to 3rd party, with the petitioner losing all rights therein.

Since the Petitioner is ready and willing to furnish such an undertaking within the next seven working days, the Court comprising of Chief Justice Partha Sarthy ordered BIADA to recall the orders passed cancelling the allotment of the premises.

Further held that in the event of failure on the part of the petitioner to comply with the undertaking, BIADA shall take over vacant and peaceful possession of the premises from the petitioner with liberty for further allotment to 3rd party, with the petitioner losing all rights therein and the petitioner shall be liable for initiation of proceedings for contempt for having violated the undertaking furnished to the Court.

It was held that “the timeline for commencement of the period of undertaking furnished by the petitioner shall be reckoned from the date the order is recalled and/or possession of the unit is handed over by the respondent BIADA to the petitioner, whichever is later and as the case may be.”

To Read the full text of the Order CLICK HERE

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