Facts
The petitioner was allotted 21.698 acres by the Adityapur Industrial Area Development Authority (AIADA) in 2007 for developing a "City Centre"
Source reference: para 4After initial lease termination and subsequent restoration by the High Court and Supreme Court in 2015, the petitioner was granted a fresh 36-month construction window
Source reference: para 7Alleging failure to commence construction despite the extension, the Regional Director, JIADA (successor to AIADA) issued show-cause notices in 2019 and 2020
Source reference: para 9Consequently, the Regional Director passed an order on 27.10.2021 cancelling the allotment and terminating the lease
Source reference: para 10The petitioner challenged this order primarily on the grounds that the Regional Director lacked jurisdiction as the JIADA Regulation, 2016, which purportedly delegated such power, had not been officially notified as "in force" by the State Government
Source reference: para 12-14Issues
1. Whether the Regional Director, JIADA, was vested with the statutory power to pass the impugned order of cancellation dated 27.10.2021?
Source reference: para 332. Whether the petitioner is entitled to discretionary relief under Article 226 of the Constitution of India given the factual matrix?
Source reference: para 33Law Applied
Section 15 of the Bihar (now Jharkhand) Industrial Area Development Authority Act, 1974, which mandates that regulations acquire the force of law only upon publication in the Official Gazette
Source reference: para 16Principle of "conditional legislation," stating that when a statute requires a notification to bring it into force (as per Regulation 1.1(iv) of the JIADA Regulations), its mere publication without a specified commencement date is insufficient
Source reference: para 36Managing Director, RIADA v. M/s Narrow Structures (2020), which held that actions under the 2016 Regulations are non-est if the State cannot prove the date from which the Regulations became functional via gazette notification
Source reference: para 38Viraj Impex Pvt. Ltd. v. Union of India (2026) regarding the necessity of gazette publication for legal obligations to materialize
Source reference: para 14Reasoning
The Court found that although the JIADA Regulations, 2016 were published in the Gazette on 29.10.2021, the State failed to produce a specific notification as required by Regulation 1.1(iv) to declare when the regulations actually "came into force"
Source reference: para 35-36Since the impugned cancellation order was dated 27.10.2021, even the tardy publication on 29.10.2021 could not retroactively validate the Regional Director's actions
Source reference: para 38-39The Court rejected JIADA's argument that administrative delegation via Board resolutions sufficed, holding that such delegation cannot supersede the mandatory gazette requirements of the primary Act
Source reference: para 37While the Petitioner argued delays were due to environmental clearances and COVID-19, the Court declined to rule on the merits of the delay, focusing strictly on the jurisdictional defect of the authority that passed the order
Source reference: para 40-41Holding
The Court held that the Regional Director lacked jurisdiction because the JIADA Regulation, 2016 had not legally come into force at the time of the order
The Court quashed the show-cause notices and the cancellation order dated 27.10.2021. However, the matter was remitted to the Regional Director—who gained competency only after a later Gazette notification dated 06.12.2022—to initiate a fresh process. The Court ordered the adjudication to be completed within two months.
Source reference: para 44(ii), 44(iii)Original Court PDF
FORUM INFRASTRUCTURE PRIVATE LIMITED THROUGH ITS AUTHORISED SIGNATORY NAMELY SRI SUBHASIS SETHvsJHARKHAND INDUSTRIAL AREA DEVELOPMENT AUTHORITY THROUGH ITS SECRETARY
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