GUPTA OIL AND GENERAL MILLS Vs. STATE OF HARYANA
LAWS(P&H)-1993-8-203
HIGH COURT OF PUNJAB AND HARYANA
Decided on August 04,1993

GUPTA OIL AND GENERAL MILLS Appellant
VERSUS
STATE OF HARYANA Respondents

JUDGEMENT

- (1.) This order shall dispose of Civil Writ Petition Nos. 5996 of 1991, 12891 of 1990, 7020 of 1991 and 7581 of 1991 as common questions of law and facts are involved in all these four petitions. However, the facts have been extracted from Civil Writ Petition No. 5996 of 1991.
(2.) Gupta Oil & General Mills, Uklana Road, Narwana, District Jind, through present petition filed by it under Articles 226/227 of the Constitution of India seeks a direction to be issued to the respondents directing them to disburse the amount of subsidy which has since been sanctioned in its favour.
(3.) Brief facts, on which the relief aforesaid rests, reveal that the petitioner set up an oil mill and was registered as a small scale unit on November 13, 1987. Ever since it is engaged in the manufacture of oil and oil cakes. In the year 1971, the Central Government framed a scheme for grant of subsidy on the establishment of certain industries in the prescribed areas which were industrially backward with a view to promote industrialisiation and in the scheme various incentives were provided to the entreprenurs setting up their units in the said backward areas. One of such incentives was to share the financial burden of the entrepreneur by granting subsidy to the prescribed extent of the total capital expenditure incurred by the entrepreneur. Even though the scheme is of the Central Government it is monitored and implemented by the State Agencies by identifying eligible industrial units and the disbursement is made by the Haryana Financial Corporation in consultation with the Director of Industries, Haryana. The scheme framed by the Central Government in 1977, was amended vide notificaction dated May 2, 1983 and para 4(b) of the amended scheme envisages that those industrial units which were set up on or after April 1, 1983, were entitled to the subsidy at the prescribed rates mentioned in the para aforesaid. The case of the petitioner is that it was set up in November, 1987 at Narwana and as per the scheme, it was covered in category 'C' of the classified districts and thus was entitled to 10% of the fixed capital investment in the shape of subsidy. It applied for the grant of subsidy on the described application to the competent authority i.e. the General Manager, District Industries Center, Jind for grant of eligibility certificate. The same was granted to petitioner on November 13, 1987 and it was certified therein that petitioner was an eligible unit for claiming central investment subsidy admissible under the Central Outright Grant of Subsidy Scheme. The petitioner thereafter approached the Haryana Financial Corporation, which is stated to be authorised to disburse the subsidy. An application, however, was made on December 28, 1987 along with all relevant documents. The matter remained pending for sometime but ultimately it was taken for consideration on March 28, 1989. After due deliberations, the Committee sanctioned a subsidy of Rs. 2,39,800/- in favour of petitioner unit. It was also observed that the subsidy shall be disbursed through the Haryana Financial Corporation against adequate security. The case of petitioner is that it furnished all the information or documents that were requisitioned by the authorities vide letter dated May 11, 1989 as also the income tax clearance certificate along with application dated June 2, 1989. Petitioner thereafter invited the attention of respondents to the orders passed by the State Level Committee and prayed that subsidy, to which it was held entitled should be paid to it as soon as it may be possible. It is only when the repeated requests made by the petitioner fell on deaf ears, it has chosen to file the present petition for the relief indicated above.;


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