'Establishing IIT outweighed private commercial interests,' Supreme Court upholds cancellation of plot in Patna

New Delhi: The Supreme Court has said individual interest must necessarily yield to a larger public good, as it upheld cancellation of allotment of an industrial plot to establish IIT campus in Patna.

A bench of Justices Dipankar Datta and Augustine George Masih emphasised that the establishment of IIT constituted a project of national importance that outweighed private commercial interests.

The court pointed out 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," Justice Datta wrote in a judgment rendered on January 23, 2026.

Allowing appeals filed by Bihar and Bihar Industrial Area Development Authority, the court set aside the division bench's judgment of October 21, 2014.

"The exercise of intra-court appellate jurisdiction is warranted only where the judgment or order under challenge is demonstrably erroneous or suffers from perversity," the bench said.

The court restored the single judge's order of January 24, 2014, and upheld the cancellation of the allotment of the plot to M/s Scope Sales Pvt Ltd for for the purpose of constructing multiplex cum shopping mall.

The court said, 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. It said, the relief may be denied, notwithstanding the existence of a strong legal case, should grant of such relief not serve or advance public interest, the bench said.

The court ordered the BIADA to refund the original deposit of Rs 3,38,98,000 to the company with interest at the rate of 7 per cent per annum.

It clarified that the plot must not be used for any commercial purpose and must be utilized strictly for educational activities.

The bench noted the allotment was cancelled bona fide due to an unforeseen development, the establishment of a national-level institute (IIT), which required the land for future expansion.

"Cancellation of allotment of the plot in question was necessitated by the requirement of the land for setting up and future expansion of an institute like IIT, a circumstance which was neither contemplated nor known at the time of the original allotment. The decision of BIADA to cancel the allotment was taken bona fide and in furtherance of a larger public purpose,'' the court said.