Sanjay Kishan Kaul, C.J. - (1.) THE net worth of respondent No. 1 became negative resulting into proceedings before the Board of Industrial and Financial Reconstruction (in short BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985. The scheme for rehabilitation and revival was initiated and the petitioners before us undisputedly consented to the concessions under the scheme. One of the concessions was qua charging of electricity duty and recommendation which was accepted, as contained in the letter dated 11.07.2007 of the Punjab State Industrial Development Corporation Ltd., is as under: - Recommendation No. 2 To consider to exempt the sick company from charge of electricity duty. The Committee decided to exempt the sick company from charge of electricity duty at 50% of the applicable duty for seven years instead of 100% as desired by the company.
(2.) IN pursuance to the concession contained in the scheme, a notification dated 22.11.2007 was issued by the Department of Power granting to respondent No. 1 50% exemption from payment of electricity duty. At the relevant stage of time, the duty was 10% and the period for which the concession was granted was 07 years from 01.04.2006. Thus, this notification stated "the Governor of Punjab is pleased to grant relief of 50% exemption from the payment of Electricity Duty which is charged @ 10% advalorem for a period of 07 years from 1st April, 2006 to M/s. Twenty First Century Steels Limited Mandi Gobindgarh." The electricity duty was subsequently revised vide notification dated 25.05.2010 raising the levy of electricity duty to 13% advalorem w.e.f. 01.04.2010. However, in terms of this notification, the concession was restricted to 5% instead of grant of 6.5% requiring the balance 8% to be deposited.
(3.) THE aforesaid action of the petitioners gave a rise to an application before the BIFR/respondent No. 2 by respondent No. 1 which accepted the plea vide an order dated 17.01.2013. The reasoning which permeates this order is that the concession was never restricted to 5%, but to 50% of the duty which concession had been accepted. This is as per the scheme. The notification dated 22.11.2007 was pursuant to the concession made under the scheme where the petitioners set out the then prevalent duty. Thus, on revision of the duty upwards to 13%, the 50% concession would amount to 6.5% and not only a concession of 5%.;