( 1 ) MRS. REETA Chandarana, learned Assistant Government Pleader seeks permission to place on record a compilation of documents comprising of copies of various Government Resolutions in respect of incentive schemes for industrial units to be set up in developing areas; orders dated 24th February, 1984 whereby the petitioner was registered under the Central as well as State Subsidy Schemes; communication dated 23rd May, 1985 informing the petitioner regarding sanction of subsidy in its favour, both under the Central and the State Scheme; disbursement orders dated 14th October, 1986 and 28th October, 1986; minutes of the State Level Committee meeting No. 125, held on 30th September, 1988 and disbursement order dated 29th September, 1989. The aforesaid documents being relevant for the purpose of adjudicating the controversy involved in the present petition, leave is granted. The aforesaid documents are taken on record and shall be treated as part of the record of the Special Civil Application.

( 2 ) BY this petition under Article 226 of the Constitution of India, the writ petitioners challenge the Government Resolution dated 9th October, 1984 of the Government of Gujarat, Industries, Mines and Power Department, whereby it has been directed that the State Cash Subsidy should be restricted to the amounts to make the total subsidy (the Central as well as the State) admissible to the concerned eligible units under the State Subsidy Scheme in respect of assets created after 1st April, 1983. The petitioners also seek direction against the respondents to pay the petitioner the balance amount of Rs. 22 lakhs as subsidy at 25% of the fixed assets along with interest till the date of payment as well as to release the amount of Rs. 2,32,193/- recovered from the petitioner No. 1 (hereinafter referred to as the "petitioner Company" ).

( 3 ) BEING attracted by various incentives offered by the State Government, as well as the Central Government, the petitioner No. 1, a Company registered under the Companies Act, 1956 had established a mini-cement factory. The State Government, at the relevant time, had framed a scheme called the "state Subsidy Scheme for Industries" vide resolution dated 22nd December, 1977. Under the said Scheme, medium and large scale industries set up in Grade "c" Growth Centres were entitled to subsidy at the rate of 15% of the fixed assets or Rs. 25 lakhs, whichever is less. Subsequently, by Government Resolution dated 27th August, 1980, the Government of Gujarat introduced a package of new incentives for promotion of industries in rural and backward areas, which provided that pioneer units would be eligible for incentives admissible at "c" Grade Growth Centres. It is an admitted position that the petitioner is registered as a pioneer unit and as such, is eligible for incentives admissible to "c" Grade Growth Centres. On 27th April, 1983, Union of India announced subsidy of 10% under the Central Cash Subsidy Scheme for "c" Grade Growth Centres. As the petitioner came within the ambit of "c" Grade Growth Centres, the petitioner was also entitled to the benefit of Central Cash Subsidy under the said Scheme.

( 4 ) THE petitioner had applied for registration for subsidy under both State as well as Central Scheme on 15th February, 1984 and was registered in respect of both the Schemes on 24th February, 1984. On 28th June, 1984, the petitioner applied for sanction of subsidy, both Central and State, which was duly sanctioned by the respondents and payments towards subsidy were received by the petitioner on 28th October, 1985 and 14th October, 1986. The grievance of the petitioner is that the respondent refused to make further disbursement on the ground that, by virtue of the impugned resolution dated 9th November, 1994, which was made effective from 1st April, 1983, the total subsidy State and Central could not exceed 15%, and that, central subsidy is to be adjusted as if the same has merged in the State subsidy. It is the cas

Click Here to Read the rest of this document