JUDGMENT

B. P. JEEVAN REDDY, J. - Leave granted. Heard counsel for the parties.

2. These appeals arise from a judgment of the Himachal Pradesh High Court disposing of eight writ petitions together.

3. Katha is a necessary ingredient in pan and pan masalas. Katha is derived from the khair tree. The central portion of the tree is used for this purpose. These trees are found in considerable number in the State of Himachal Pradesh. They are also found in other States but it appears that one after the other, various States have banned the cutting of khair trees, with the result that those intending to manufacture katha have been flocking to Himachal Pradesh over the last few years.

4. Till the year 1975, katha was being manufactured in the State of Himachal Pradesh only by bhattiwalas. Since the manufacture of katha requires extremely cold conditions, it is stated, the manufacture of katha was being undertaken in bhatties only during the winter season. In the year 1975, however, a mechanised unit was established in the State by Shankar Trading Company for the manufacture of katha. The manufacture of katha can go on round the year in a mechanised unit. The mechanised unit consumes far larger quantities of khair wood than all the bhatties put together.

5. Himachal Pradesh is an industrially backward State. Like other States, it too has been evolving schemes for encouraging industrialisation of the State. By a Notification dated 13-5-1974, the Governor of Himachal Pradesh established the Industrial Projects Approval and Review Authority (IPARA) comprising Chief Secretary to the Government, Secretaries to the Departments of Multipurpose Projects and Power, Public Works, Industries and Finance besides Chairman of the Himachal Pradesh State Electricity Board, Chief Conservator of Forests, Chief Engineer, PWD and the Director of Industries. The terms of reference and the activities to be undertaken by the IPARA were specified as under :

"(i) To act as the focal point for dissemination of information regarding programmes of Government assistance and incentives to entrepreneurs.

(ii) To receive all applications for setting up of factories in medium and large-scale sector.

(iii) To process the applications for establishment of new industries and select projects for Government approval.

(iv) To arrange all necessary assistance required for the successful implementation of approved projects from various Government Departments and to act as the channel of correspondence and the coordinating agency between the entrepreneurs and various concerned Government Departments.

(v) To review the progress of approved projects.

(vi) To recommend necessary changes in the Government policy regarding Industrial Development in the light of experience gained.

(vii) Such other matters as the Government may refer or delegate to the Authority from time to time."

6. On 29-11-1990 IPARA was abolished by the Government. It appears to have been revived later. By Notification dated 3-9-1993 the President of India (Himachal Pradesh was then under the Presidents rule) reconstituted IPARA with a more expansive membership. The terms of reference and the activities to be undertaken by the IPARA, however, remained the same as were contained in the Notification dated 13-5-1977. It is stated that during the period IPARA was not in existence, the Director of Industries, Himachal Pradesh was looking after that work. Applications received from entrepreneurs proposing establishment of industrial units in Himachal Pradesh were being processed in the first instance by IPARA - and during the period when IPARA was not in existence, by the Director of Industries.

7. Several units applied to IPARA/Director of Industries during the years 1992 and 1993 proposing to establish mechanised units for manufacturing katha. In all, fifteen units applied but we are concerned only with eight such units in these appeals. We shall, therefore, state the particulars with respect to these eight units onl