HARPHUL SINGH BRAR, J. - (1.) THIS judgment of mine will dispose of Civil Writ Petition Nos. 13499 of 1989, 10495 of 1990 and 7124 of 1989, as the Scheme under challenge in all these Writ Petitions is the same. The facts having been taken from Civil Writ Petition No. 13499 of 1989 are that the Central Government promulgated a Scheme of 10 per cent Central grant or subsidy for industrial units to be set up in certain selected backward districts/area with a view to promoting the growth of industries there. This Scheme was called the 10 per cent Central Outright Grant or Subsidy Scheme 1971 for Industrial Units to be set up in Selected Backward Districts/areas (hereinafter referred to as the Subsidy Scheme ). This Scheme was subsequently amended from time to time. According to this Scheme, industrial units set up in backward areas were entitled to an outright investment subsidy of 10 per cent of the investment made on fixed capital, such as land, building and plant and machinery which was raised to 15 per cent from March 1, 1973. The maximum amount of subsidy payable was restricted to Rs. 15 lakhs per industrial unit. This Scheme came into effect from August 26, 1971 and remained in force till September 30, 1988. In the original Scheme of 1971, a reference is necessary to some of its provisions. 'new industrial unit' means an industrial unit for the setting up of which effective steps were not taken prior to 1st October, 1970; 'existing industrial unit' means an industrial unit for the setting up of which effective steps were taken prior to 1st October, 1970 ; 'effective steps' means one or more of the following steps: (i) that 60% or more of the capital issued for the industrial unit has been paid up; (ii) that a substantial part of the factory building has been constructed; (iii) that a firm order has been placed for a substantial part of the plant and machinery required for the industrial unit; 10% Central Outright Grant or Subsidy' means one-tenth of the total fixed capital investment, or additional total fixed capital investment as the case may be, as assessed by the Committee referred to in paragraph 6, or a sum of Rs. 5 lakhs, whichever is less. However, in respect of industrial units coming up on and after 1st March, 1973, the subsidy will be 15% of the total fixed capital investment or additional total fixed capital investment as the case may be, subject to a maximum of Rs. 15 lakhs. Procedure for claiming outright grant or subsidy : Industrial units in selected districts/areas will get themselves registered with the State Government concerned prior to taking effective steps for setting up the new units or undertaking substantial expansion of the existing units and indicate their assessment of the total additional fixed capital likely to be invested by them. Such of the units as had taken 'effective steps' prior to the date of announcement of the scheme but after October 1, 1970 will get themselves registered by December 31, 1971. Procedure for disbursement of outright grant or subsidy: ---- --- --- -- - In respect of a new industrial unit or in respect of substantial expansion of an existing industrial unit to be assisted by a financial institution, the subsidy will be disbursed to the unit by the financial institution in as many installments as the loan is disbursed by the financial institution and simultaneously claimed from the Ministry of Industrial Development. In such cases, the contract to be drawn up between the financial institution and the unit concerned may cover mortgage/pledge hypothecation of the assets of the unit up to the amount of the loan to be advanced by the financial institution concerned and the subsidy.
(2.) AS a result of further discussions with the representatives of the State Government, it was felt that there was scope for further liberalisation in the procedures adopted. It was decided to consolidate the revised procedures in a Manual and circulate the same to all the State Level Committees and disbursing agencies for ready reference. This Manual was made effective from January 1, 1977. Para 1. 4 of the Manual defines 'new Industrial Unit' and 'existing Industrial Unit'; and 'fee Capital Investment' as under: 'new Industrial Unit' means an industrial unit which has made investments in land, building and plant and machinery as defined in Sub-section (e) during the operative period of the Scheme. 'existing Industrial Unit' means an industrial unit which has made investments in land, building and plant and machinery as defined in Sub-Section (e) below prior to the operative period of the Scheme. 'fee Capital Investment' means investment in land, building and plant and machinery. Para 2 of the Manual defines 'eligibility' as under : 2. ELIGIBILITY 2. 1. New industrial units engaged in manufacture of items specified in part (B) of Annexure II are eligible to claim 10%-15% Central Investment Subsidy under the scheme provided such industrial units are located in areas specified in part (A) of Annexure II and are also covered by Section 1. 3 above. Existing industrial units engaged in manufacture of items specified in part (B) of Annexure II are eligible to claim 10%-15% Central Investment Subsidy under the scheme provided such industrial units are located in areas specified in part (A) of Annexure II and are also covered by Section 1. 3 above for purposes of expansion only. 2. 2. Condonation of delays in registration : State Level Committee may at its discretion waive the condition of prior registration with the State Industries Department/director of Industries if it is satisfied that there are sufficient reasons t6 do so. PROCEDURE FOR CLAIMING SUBSIDY : 2. 3. The following information and documents should be submitted along with the application (form prescribed in Annexure III) for claiming Central Investment Subsidy under the scheme : (a) Project report wherever it is prepared. (b) Details of the scheme including the details of the fixed assets to be acquired. (c) Sanction letter from the financial institution (s) sanctioning the loan or loans for the purpose of implementing the project. (d) If the project is under implementation a certificate from the Chartered Accountants regarding capital expenditure incurred on the project and a certificate from an Engineer as prescribed in Section 5 (6) (b) certifying the civil work done. These certificates should be in the prescribed form (vide Annexures VI and VII ). 2. 4. The Disbursing Agency with whom the application for Central Investment Subsidy is filed will examine the application and determine the eligibility of the industrial unit. All the cases after the scrutiny will be referred to the State Level Committee constituted under the Scheme with suitable recommendations for final decision. The agenda notes will be submitted to the State Level Committee in the form prescribed in Annexure IV. Extent OF CENTRAL INVESTMENT SUBSIDY ADMISSIBLE : 3. 2. In case of eligible industrial units which have made fixed capital investments before 1st March, 1973 and where further investments were made beyond 1st March, 1973, the disbursement of Central Investment Subsidy will be regulated as follows : "the maximum Central Investment Subsidy admissible to an eligible industrial unit which has made fixed capital investment prior to 1st March, 1973 will be 10% of the fixed capital investment or Rs. 5 lakhs whichever is less irrespective of the total size of the project. The maximum Central Investment Subsidy admissible to an eligible industrial unit from 1st March, 1973 to the date of expiry of the scheme will be 10% of the fixed capital investment made up to 28th February, 1973 plus 15% of the fixed capital investment made on or after 1st March, 1973 or Rs. 15 lakhs whichever is less. " Disbursement of Subsidy to units assisted by Financial Institutions etc. 5. 5. In the case of an assisted unit the disbursement of Central Investment Subsidy may be made in as many instalments as the loans sanctioned by the financial institutions etc. are disbursed. The last instalment of the subsidy, however, shall not be less than 15% of the total subsidy sanctioned and it shall be disbursed only after the unit goes into production. 3. Acting upon the assurance of the State Government/central Government given to the public at large through public media that Central Subsidy would be given to entrepreneurs who set up industries in the backward areas of the State of Haryana, the petitioner-Company set up an industrial unit in one of the backward areas of the State of Haryana, that is, at Hazampur, Tehsil Hansi, District Hissar.
(3.) THE petitioner-Company was incorporated under the Companies Act, 1956 on October 7, 1986 after a Certificate of Incorporation to this effect had been issued by the Registrar of Companies. In pursuance of the Certificate of Incorporation, the petitioner-Company was then issued a Certificate on April 6, 1987 under Section 149 (3) of the Companies Act, 1956 by the Registrar of Companies whereafter the petitioner-Company became entitled to undertake and commence its business. The petitioner-Company on April 21, 1987 was granted provisional Registration Certificate for manufacturing prestressed concrete poles, prestressed concrete beams and reinforced cement concrete pipes, by respondent No. 3-General Manager, District Industries Centre, Hissar, Haryana, on behalf of Director Industries, Industries Department, Haryana-respondent No. 2. The petitioner-Company thereafter submitted an application on May 8, 1987 for the power connection in the Office of the Sub Divisional Officer, Haryana State Electricity Board, Hansi, which was duly sanctioned on June 25, 1987. For setting up of the factory, the petitioner-Company then purchased land measuring 7 acres for a sum of Rs. 1,70,625/- the Sale Deed in respect of which was registered on May 15, 1987.;