I.S.ISRANI, J. - (1.) IN these three writ petitions a common question has been raised, therefore, they are decided by one order. It has been prayed in these petitions that the order dated January 29, 1990 (Anx. 7 passed by General Manager, District Industry Centure, Alwar, by which, the provisional registration certificate for establishment of small scale industry granted to each one of the petitioners, has been cancelled be quashed.
(2.) THE dates and the numbers of annexures are mentioned as in WP No. 883/1990. Briefly, it has been stated by the petitioners that Government of Rajasthan with a view to develop Bhiwadi District Alwar, offered concessions to establish small scale industries at Bhiwadi, and established Officer of the District Industries Officer (for brevity 'D.I.O.) there. In order to receive applications, the D.I.O. used to go to Delhi every second Friday in a month. Keeping in view the concessions offered the petitioners approached the D.I.O. Bhiwadi on December 11,1989 gave an application form alongwith project report duly filled, for grant of provisional Registration Certificate to establish a small scale industry at Bhiwadi. The D.I.O. Bhiwadi issued a provisional Registration Certificate (Annexure -1) as small scale unit to each of the petitioners. They deposited the necessary amount for application, issue of certificate and also invested Rs. 2000/ - for the purpose of National Saving Certificate. This certificate is issued to enable the petitioner to obtain all facilities/clearance for its setting up an industry. It is valid for one year only and within this period all steps have to be taken for establishing small scale industries. It is made clear in clause Nos. 6 and 7 of Annexure -1 that it shall be responsibility of the applicant to obtain all necessary facilities e.g. Finance, accommodation, machinery, approval/permission. It is also mentioned that the applicant will start taking effective steps to start the unit immediately after issuance of provisional registration certificate (for brevity 'the certificate'). The certificate of provisional registration certificate (for brevity 'the certificate'). The certificate was issued for manufacturing Ice -cream, Ghee, Butter and Skimmed Milk Power. However, vide Annexure -7 dated January 29, 1990 the General Manager, District Industries Centre, Alwar respondent No. 3 issued an order whereby the certificate issued by D.I.O. Bhiwadi was cancelled. Hence these petitions.
(3.) IT is submitted by Shri Paras Kuhad and Shri Alok Sharma, learned Counsel that soon after grant of certificate Annexure -1, the petitioners made heavy investments as mentioned in each of the petitions, since every thing had to be completed within period of 12 months and industries had to be established failing which the certificate was liable to be cancelled. It is pointed out that petitioner in Petition No. 883/90 entered into transaction for purchase of two different units at Bhiwadi, which were at the relevant time auctioned by R.F.C. The one unit was M/s Esso Gas Product, for which, the petitioner had given highest bid for Rs. 9 lakhs and deposited Rs. 45000/ - on December 21,1989 as earnest money (Anx. 2). Petitioner also took over M/s Pee Pee Cable and Conductor Industries (P) Ltd., and purchased its share capital of approximately Rs. 6 lakhs. Petitioner also gave guarantee to State Bank of India for approximately Rs. 7 lakhs being the amount of secured loan. He also paid a sum of Rs. 415000/ - to the promoters or he said company towards settlement of the unsecured loan of the said company. Petitioner also advanced a sum of Rs. 3,17,000/ - to M/s Kristam Engineers Pvt. Ltd. for the puchase of plant and machinery. The relevant annexures are Nos. 3 and 4 Photostat copy of the cheque issued is Annexure -5 and receipt given to petitioner is Annxure -6. It is further submitted that the dectrine of promisory estoppel will be applicable to these petitioners since they acted on the assurances given by the respondents and started making investment only after certificate was issued to each of the petitioners. Therefore, respondents have no authority to cancell the P.R. certificate more so when no opportunity of hearing was given to the petitioner. It is also submitted that provisions of Industries Development and Regulation) Act, 1951 (for brevity 'the Act, 1951') are not applicable to the products regarding which certificate Anx. 1 was granted to the petitioners as mentioned in Annexure -7, the cancellation order. It is submitted that the unit of the petitioners is not covered by the definition of 'factory' as defined in Sub -clause (c) of Section 3 of the Act, 1951. This Act provides for Regulation of scheduled industries. It is pointed out that in the first scheduled of Act, 1951 Serial No. 21 is regarding Food -processing industries, which mentions milk -foods and malted foods, apart from three other items, which are not relevant for the purposes of these petitions. It is contended that none of the petitioners are to manufacture milk foods or malted foods. It is, therefore, submitted that respondent No. 3 firstly had no authourty to cancel the provisions of the Act, 1951. It is submitted by Mr. B.K. Sharma, learned Additional Government Advocate that ? District Industries Officer, Bhiwadi exceeded his jurisdiction and had no authority to issue certificate regarding such industrial undertaking which is mentioned in first schedule of Act, 1951. It is also submitted that even if the small scale industries to be established by the petitioners are not convered by Section 11, 11 -A or Section 13 of the Act, 1951, but are covered by Section 2 of the Act, 1951, which provides regarding control in the public interest by the union regarding industries specified in the first scheduled. It is submitted that the products regarding which certificate has been issued to the petitioners are covered by milk foods or malted foods, which are controlled industries and can be established only after the licence is granted by the Union Government. It is pointed out that as provided under Section 18 - G the Regulation of scheduled industries is essential to control supply, distribution and price etc. of certain articles.;