SHAKTI TUBES LTD Vs. STATE OF BIHAR FB

JUDGEMENT

(1.) This batch of three cases were heard together as common questions arose for consideration in these cases. In C.W.J.C. No. 6155 of 1993 alone there are two petitioners. The petitioners in all the three cases are companies. They are assessees to sales tax. Their complaint is that the State-respondent (Government of Bihar) has failed to disburse the interest free sales tax loan either fully or partially as per the resolution No. XI-IP-04/ 86-13730 dated 1/09/1986, Department of Industries, Government of Bihar. The said resolution of the Government of Bihar is filed as Annexure 3 in C.W.J.C. No.6155/93. The said resolution is filed as annexures in other cases also. C.W.J.C. No.6155/93 was treated as the main case. So, we shall refer to the facts stated in the said case to solve the controversy raised in this batch of cases.

(2.) The prayer in this batch of writ petitions is for the issuance of directions to the respondents-State of Bihar and its officials to disburse the various amounts specified in the writ petitions stated to be due by way of interest free sales tax loan to the petitioners. The earlier resolutions passed by the State of Bihar dated 20-3-1973, 29-6-1975, 8-3-1980 and 20-1-1981 are referred to. They are only relevant to understand the background and the earlier history of the cases. By Annexure 3, Resolution No. 13730, dated 1-9-1986, the respondent-State of Bihar announced incentives to industries in Bihar and promised to give interest free sales tax loan to the industrial units which came into production on or after 1-9-1986. The petitioners state that the State made unequivocal promise to provide incentive to the industries for setting up the industry in the State of Bihar by providing interest free sales tax loan and other incentives. The first petitioner in C.W.J.C. No. 6155/93 came into production from 6-7-1987. They took all steps in pursuance to the incentive resolution dated 1-9-1986. An application was made for grant of interest free sales tax loan. The respondent were pleased to sanction a sum of Rs. 10 lakhs to the petitioners and out of which a sum of Rs.3,81,493.00 has been disbursed and the balance sum of Rs.6,18,508.00 due has not been disbursed to the petitioners so far.

(3.) The Managing Director, North Bihar Industrial Area Development Authority, Muzaffarpur, by his Memo No. 402, dated 9-3-1990, intimated to the petitioners that a sum of Rs. 6,18,508.00 has been granted as per the order of the Government of Bihar by way of interest free sales tax loan. It was further intimated that to avail of the same the petitioners should execute an agreement. This is Annexure 4. It is stated in paragraph 15 of the petition, that the petitioners executed the said agreement and accepted the conditions made in the letter dated 9-3-1990 vide Annexure 5.