Appearing for the firm Holicow Pictures Pvt Ltd, senior advocate Harish Salve contended that it was unjust on part of the HC to single out Jha's firm from among 53 allottees and order cancellation of land allotted to it despite following the rules and regulations in letter and spirit.

A Bench comprising Justices Arijit Pasayat and S H Kapadia stayed the HC order, thus maintaining the Bihar Industrial Development Authority's decision to allot 9 industrial plots in the towns of Pataliputra, Hajipur, Sitamarhi,Muzaffarpur, Buxar, Munger and Aurangabad to Jha's firm.

Giving details of his known credentials as a producer of socially relevant films, especially in context of Bihar, Jha said he had applied for the industrial plots intending to create world-class infrastructure in the form of multiplexes in his home state. For this purpose his firm has reached an understanding with Manmohan Shetty, chief promoter of Adlabs, he said. ``With private investments, Holicow is also seeking to promote the state as a centre of the burgeoning Bhojpuri film-industry,'' the petitioner said.

The HC on December 18, 2006, cancelled allotment of plots to Holicow after hearing parties on a PIL filed by Prem Chand Mishra, the spokesperson of the Bihar state unit of Congress. Mishra had alleged that Jha's firm was given land by CM Nitish Kumar, as a favour to the film maker who had campaigned for his party in the Assembly elections and helped him to win.