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Bihar Industrial Area Development Authority & Ors. v. M/s Scope Sales Pvt. Ltd. & Anr.

with connected State appeal · 2026 INSC 89Decided 23 Jan 2026
with connected State appeal
Justice Dipankar Datta · Justice Augustine George Masih

Background

An allottee's industrial plot was cancelled to accommodate IIT Patna's campus expansion; a Division Bench of the High Court held the cancellation unlawful and the allotment was the allottee's protected "property."

Decision Breakdown

The Supreme Court restored the cancellation, holding public interest in land for a nationally important institution can outweigh a private allottee's interest provided fair compensation is paid, and that an appellate bench shouldn't overturn a reasonable single-judge decision. Compensation with enhanced 7% interest was ordered.

Lesson Learnt

When private property interests collide with a genuine public interest like land for a public institution, courts may let the public interest prevail provided the individual is fairly compensated.

Official source (sci.gov.in)View Judgment (PDF)

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