ORDER 1. Heard. 2. The petitioner is a company incorporated under the provisions of the Companies Act, 1956, at Fatwah in the district of Patna. In the Industrial area therein a large chunk of land was allotted to a scooter manufacturing State unit. That never got established. Bihar Industrial Area Development Authority took a decision to settle that industrial plot with private entrepreneurs, as a consequence whereof the petitioner-company made an application and settlement was made to it. For the settlement aforesaid the petitioner-company paid a sum total of Rs. 6,06,592/- to the Bihar Industrial Area Development Authority. When having received the said money the said authority was asked to deliver possession to the petitioner-company, which was unable to deliver possession because of opposition from the workers of the erstwhile scooter factory. Thus, even though settlement was made with the petitioner-company by the Bihar Industrial Development Authority the land could never be delivered to the petitioner. Under such circumstances, the petitioner-company requested for cancellation of the settlement and refund of its money. 3. The grievance of the petitioner is that though the allotment has been cancelled but as against the total amount deposited by the petitioner being Rs. 6,06,592/- the petitioner has been refunded only an amount of Rs. 1,90,230/- and that too during the pendency of the writ petition and the balance Rs. 4,15,639/- has been appropriated the authority towards dues of another company towards the authority. This stand is reflected in the counter affidavit of the Bihar Industrial Area Development Authority and the pleading made therein in paras 13 and 14 thereof. 4. Originally, the writ petition was filed in the year 2004 when no money was liquidated. 5. Heard the parties and with their consent this application is being disposed of at the stage of admission itself. 6 From the facts noted above, it would be seen that in view of the statements made in the counter affidavit petitioner-company's money is appropriated and deposited against the dues of one M/s Rama Wood and General Industries Private Limited, an another company. When confronted as to how and what is the basis of statements in the counter affidavit that the petitioner-company owned M/s Rama Wood Private Limited, the only answer that could be given is that two companies had one Director in common. When confronted as to how and what is the basis of statements in the counter affidavit that the petitioner-company owned M/s Rama Wood Private Limited, the only answer that could be given is that two companies had one Director in common. The stand of the Industrial Area Development Authority amazes this Court and probably the authority does not know the concept of corporate law. The House of Lords century back in the case of Salomon Vs. Salomon, reported in 1897 Appeal Cases 22 laid down that there is a distinction between the Director and a Company and a Company is corporate identity independent of its share holders. Due of one company cannot be adjusted against another company without consent of the two. No case has been made out that either of the two companies are subsidiary of each other. A person may be a Director in 20 companies (as permissible by the Company Law) but that does not mean that he is the owner of each of those 20 companies. In that view of the matter, the order of the Industrial Area Development Authority passed, during the pendency of the writ petition, is illegal and cannot be sustained. It is accordingly quashed. Bihar Industrial Area Development Authority is directed to refund the full amount alongwith the interest at the rate of 8% per annum from the day refund was due i.e. from the day it was deposited and possession could not be delivered to the petitioner. It is further directed that refund must be made within a period of one month from the time when the order of this Court is presented before the respondent No. 3, Executive Director, Bihar Industrial Area Development Authority, Patna. 7. With the above observations and directions this writ petition stands disposed of.