K.J. Sengupta, J. - (1.) In this matter the first petitioner in effect wants the following relief: a writ in the nature of mandamus commanding the State Government to perform their solemn promise/assurance contained in the resolution dated May 27, 1994 and to grant assistance to the company under the said scheme from the period of July, 1995 to 1997 along with the interest at the rate of 7.1 per cent. Of course, formal relief for declaration has been sought for to the effect that the Clauses 3 and 5 of the resolution bearing No. 2027 FT May 231 FT and the retrospective effect sought to be given from April 1, 1994 are null and void and of no effect. Pursuant to the Finance Minister's Budget speech, on March 27, 1994 the Government of West Bengal launched a scheme by its resolution bearing No. 1460 FT dated May 27, 1994 for granting industrial promotional assistance by way of refund of 90 per cent of sales tax already paid for production. The said scheme was said to remain in force for a period of one year and provided for payment of Industrial Promotion Assistance equivalent to 90 per cent sales tax paid. The said resolution provided that the scheme had been formulated in public interest to allow financial assistance to certain industries in the State which have been passing through acute financial crisis, in order to tide over such crisis for promotion of such industries.
(2.) Relying upon and on the faith of the said representation and/or assurance and/or promise of the respondent contained in the said speech of Finance Minister and the said resolution and subsequent resolution extending the said scheme from year to year with 90 per cent of the sales tax paid in respect of banaspati manufactured and sold in the State would be granted an industrial promotion assistance, the company did not stop production of banaspati in the State unit even though the said unit suffered huge loss, and continued to manufacture the same in spite of such losses and made substantial future investment towards capital in the State. The said company was under bona fide impression in view of the said representation made by the respondents that it will be able to cope with the loss by reason of industrial promotion assistance as announced by the Government from time to time. Thus on such representation the company altered its position believing that such industrial promotion assistance will help the company to improve the financial position and to keep the said unit in proper working condition.
(3.) The petitioner -company duly submitted application in prescribed form for grant of assistance under the said scheme. Such assistance was granted by making payment of financial assistance to the said company under the said scheme up to July, 1995.;