Bihar Industrial Area Development Authority vs Scope Sales Pvt. Ltd. 2026 INSC 89 - Writ Jurisdiction - Intra Court Appeal

Note

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Constitution of India - Article 226 - The remedy of a writ is discretionary in nature. Even where a writ petition raises a substantial point of law, the High Court may decline to entertain it for a variety of reasons. Inter alia, relief may be denied to the suitor notwithstanding the existence of a strong legal case should grant of such relief not serve or advance public interest. If interfering with an impugned order/decision etc. would result in more harm to society, the writ courts may decline to exercise its jurisdiction. The high courts, being the custodian of the Constitution, carry the responsibility to maintain social balance by its interference when justice of the case so demands and in not interfering when such an interference would affect public interest. (Para 11)

Constitution of India - Article 226 - Writ Appeal - Intra Court Appeal - The exercise of intra-court appellate jurisdiction is warranted only where the judgment or order under challenge is demonstrably erroneous or suffers from perversity. Such jurisdiction ought not to be invoked merely because another view is possible on the same set of facts, particularly where the view adopted by the Single Judge is a plausible and reasonable one- An intra-court appellate Bench ought not to substitute its own view, merely because such Bench considers its view to be better than the one taken by the Single Bench; so long as the view taken by the Single Bench is a plausible one, interference should stay at a distance. (Para 13)

Education - IITs - Institutes such as the IITs not only cater to a large number of students but also play a critical role in the development of individuals, society, and the nation at large. Their importance cannot be measured merely in quantitative terms. For their effective functioning and sustained growth, the availability of adequate resources, including land, is indispensable. (Para 16)

Individual Rights vs Public Good - While individual rights merit due respect and consideration, it cannot be placed on a pedestal higher than the collective public interest. Where the two come into conflict, individual interest must necessarily yield to the larger public good. (Para 17)

Summary

The Supreme Court held that the Patna High Court’s Division Bench should not have interfered in intra‑court appeal with the Single Judge’s refusal to quash BIADA’s cancellation of an allotment made to M/s Scope for setting up a multiplex, when the land was subsequently needed for the development and expansion of IIT Patna. Emphasising the discretionary nature of writ jurisdiction and the need to prioritise larger public interest over individual rights where they conflict, the Court restored the Single Judge’s order, while directing payment of refund with interest to the allottee. The Court further mandated that the disputed plot must not be used for any commercial purpose and shall be utilised strictly and exclusively for educational purposes and activities incidental thereto.

Case Info

Basic case details


Case name and neutral citation:Bihar Industrial Area Development Authority & Ors. v. M/s Scope Sales Pvt. Ltd. & Anr., 2026 INSC 89


Coram:Justice Dipankar Datta and Justice Augustine George Masih


Judgment date:23 January 2026, New Delhi


Case laws and citations referred

  1. State of Maharashtra v. Prabhu, (1994) 2 SCC 481
  2. Ramniklal N. Bhutta v. State of Maharashtra, (1997) 1 SCC 134
  3. Master Marine Services (P) Ltd. v. Metcalfe & Hodgkinson (P) Ltd., (2005) 6 SCC 138
  4. Ritesh Tewari v. State of U.P., (2010) 10 SCC 677
  5. Baddula Lakshmaiah v. Sri Anjaneya Swami Temple, (1996) 3 SCC 52
  6. Narendra & Co. (P) Ltd. v. Workmen, (2016) 3 SCC 340
  7. Roma Sonkar v. M.P. State Public Service Commission, (2018) 17 SCC 106
  8. AAI v. Pradip Kumar Banerjee, (2025) 4 SCC 111

Statutes / laws referred

  1. Article 226Article 300A of the Constitution of India
  2. Bihar Industrial Area Development Authority Act, 1974 (BIADA Act), especially:
    • Section 6, including Sections 6(2), 6(2‑a), 6(2‑b)
    • Section 9(2) and Section 9(3)