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2021 Supreme(Pat) 1009

IN THE HIGH COURT OF PATNA
MOHIT KUMAR SHAH, J.
M/s Shiva Poly Tubes Pvt. Ltd — Appellant
Versus
The State Of Bihar — Respondent
Civil Writ Jurisdiction Case No. 4818 of 2017
Decided on : 24-03-2021

Advocates:
Advocate Appeared:
For the Appellant :Mr. S.D. Sanjay, Sr. Advocate, Mr. Mohit Agarwal, Advocate, Mrs. Priya Gupta, Advocate
For the Respondent: Mr.Subhash Pd. Singh, Mr. Indeshwari Pd. Mandal, adv

Headnote:

Bihar Industrial Policy, 2011 – Clause 14 – Petition for grant of Capital Subsidy and other incentives promised in Industrial Incentive Policy, 2011 – Counsel for respondent-State has submitted that State Government, in its Industries Department and Commercial Taxes Department, shall examine case of petitioner and accordingly, grant promised benefits to petitioner under Industrial Policy, 2011 – Present writ petition disposed of with consent of parties, in terms of Judgment rendered in case of M/s Sunny Stars Hotels Private Limited (C.W.J.C. no. 12104 of 2018) – Necessary decision regarding grant of promised benefits/ incentives to petitioner, under Industrial Policy, 2011, shall be taken positively within a period of 03 months from today – Principal Secretary, Department of Industry shall be entitled to examine all aspects including issue regarding case of petitioner being squarely covered by Judgment rendered by Division Bench in case of M/s Sunny Stars Hotels Private Limited (C.W.J.C. no. 12104 of 2018). (Paras 3 and 4)

JUDGMENT :

1. The present writ petition has been filed seeking the following reliefs :-

    "(i) For a direction to respondents i.e. Department of Industry, Government of Bihar for grant of the Capital Subsidy promised under the Industrial Incentive Policy, 2011.

(ii) For a direction to the respondents to grant other incentives promised in the Industrial Incentive Policy, 2011.

(iii) For a direction to the respondents for grant of subsidies at the earliest to save the petitioner's unit as the petitioner is facing paucity of funds and is suffering due to non grant of the amount of capital subsidy and other subsidies.

(iv) For issuance of a writ in nature of certiorari quashing the letter dated 13.10.2017 bearing no. 3152 issued under the signature of Director Industries, Government of Bihar wherein and whereby incentives promised by the State Government under the Industrial Incentive Policy 2011 with respect to the petitioner and some others was rejected for want of purported approval by the competent authority being illegal, arbitrary and contrary to the earlier notification dated 15.07.2011 bearing memo no. 2437/Patna issued under the signature of Principal Secretary, Department of Industry, Government of Bihar wherein the competent authority has been appointed for considering the application for grant of incentives promised under the Industrial Incentive Policy 2011 and the application for grant of incentive of the petitioner was duly approved and recommended by the competent authority so defined under the notification dated 15.07.2011."

2. The learned counsel for the petitioner points out that the present case is squarely covered by a judgment rendered by a Division Bench of this Court dated 29.07.2019, passed in C.W.J.C. no. 12104 of 2018 (M/s Sunny Stars Hotels Private Limited v. the State of Bihar and others and other analogous cases).

It would be apt to reproduce the relevant paragraphs of the aforesaid judgment, herein below :-

The exhaustive discussions that I have made above would lead to the following irresistible conclusions:

    (a) The rejection of the case of the petitioners vide letter dated 13.10.2017 impugned at Annexure 19 to CWJC No. 12104 of 2018, the order dated 26.06.2018/31.10.2017 impugned at Annexure 15 series to CWJC No. 15496 of 2018 and 13.10.2017 impugned at Annexure R/1A to the counter affidavit in CWJC No.2981 of 2019 of the Director, Industries simply because the proposal does not have the approval of the Competent Authority in terms of the resolution dated 16.01.2006, is a whimsical decision, lacking application of mind and bereft of reasons.

(b) In absence of the term 'Competent Authority' defined under the 'Industrial Policy, 2011', the approval granted by the State Investment Promotion Board, accepted by the concerned department in terms of Clause 14 of the 'Industrial Policy, 2011' and acted thereupon, there is no requirement of further approval by any other authority.

(c) In absence of any provision present in the Industrial Policy, 2011', to require the eligibility proposal of any unit to be placed before the Chief Minister or the Cabinet, the explanation given by the Industries department at paragraphs 10 to 13 of the counter affidavit filed in CWJC No. 12104 of 2018, to justify his illegal act, is de-hors the Industrial Policy, 2011'.

(d) In view of the definition of 'Competent Authority 'present in the 'Act of 2006 at Annexure P/3 to CWJC No. 2981 of 2019 the approval granted by the State Investment Board and acted upon by the concerned department in terms of Clause 14 for extending incentives to 2 of the 3 petitioners under the 'Industrial Policy, 2011', is a valid approval, not open to interference by any other authority on any ground, except eligibility and which is not an issue for the denial of the benefits.

(e) In absence of doubts raised against the petitioners on their eligibility to draw incentives under the Industrial Policy, 2011', the orders impugned in the respective writ petitions to deny t

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