- (1.) The present appeal was filed against the judgment dated 19-5-1995 pronounced by the Division Bench of the High Court of Judicature at Allahabad by which the writ petition of the appellant bearing No. 1607 of 1988 was dismissed. The writ petition was filed by the appellant to issue a writ prohibiting the respondents from recovering Rs. 18,72,821.92 constituting cash subsidy plus interest thereon from the appellant-Company as arrears of land revenue after quashing notice dated 15-9-1987 (Annexure 8 to the petition) and recovery certificate dated 31-10-1987 (Annexure 11 to the petition).
(2.) The sequence of facts and events leading to the filing of this civil appeal are as follows :- By an order dated 30-9-1982, the Government of Uttar Pradesh formulated a scheme known as 'Capital Grant Scheme' (hereinafter referred to as 'Scheme') for the grant of subsidies to various industrial units for giving an impetus to the industrialisation of the backward areas i.e. zero industrial areas of the State. In the said Scheme, 'Pioneer Unit' has been defined as : "Such industrial units to be set up during the period from 1-10-1982 to 31-3-1985 firstly in any part of the Tehsil or at Tehsil level where no heavy industry is established prior to 1-10-1982 and that those capital investment is more than Rs. one crore shall be treated as a Pioneer Unit. "
(3.) In view of the aforesaid incentive Scheme, Shri Rajan Sethi (since deceased) and his wife decided to incorporate a Company for bottling of aerated waters in the backward area of the District Agra. The Company was incorporated under the Companies Act on 1-10-1983 and it had entered into a franchise agreement with M/s. Campa Beverages Private Limited on 6-5-1983 for bottling various brands of aerated waters. For the purpose of becoming entitled to the cash subsidy under the aforesaid Scheme the appellant purchased land and building and made an investment of Rs. 17,11,845.95. The Company made further investment on installing plant and machinery in the unit. The total investment made by the appellant in establishing this unit amounted to Rs. 1,07,78,368.34 with the location of the industrial unit in a zero industrial area. According to the appellant, because of the total investments made, the appellant became entitled to cash subsidy under the aforesaid Scheme as a pioneer unit.;