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IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
HONOURABLE MR. JUSTICE DEVASHIS BARUAH
M/S Ishwar Food Products Pvt. Ltd. – Petitioner
Versus
The Union Of India Represented By The Secretary To The Govt. Of India, Ministry Of Commerce And Industries, Deptt. Of Industrial Policy And Promotion, Dba Ii/Ner Section, Udyog Bhawan, New Delhi And Ors. – Respondents
WP(C)/1291/2017, WP(C)/1284/2017, WP(C)/1286/2017, WP(C)/1287/2017, WP(C)/1295/2017, WP(C)/1298/2017, WP(C)/1301/2017, WP(C)/1304/2017, WP(C)/1307/2017
Decided On : 22-11-2023
CCIS - North East Industrial Policy - CCIS, 1997; NEIP, 1997; CCIS, 2007 - The court discussed the Central Comprehensive Insurance Scheme (CCIS) under the North East Industrial Policy (NEIP) 1997, which provided subsidies for insurance premiums to industrial units in the North East. The court highlighted the transition to CCIS, 2007, which changed the disbursement mechanism. The court emphasized the obligation of the Department of Industrial Policy and Promotion to establish a clear process for disbursing claims under the earlier scheme, ultimately directing them to formulate a mode of operation for verification and disbursement of entitlements.
Fact of the Case:
The petitioner, a company registered under the Companies Act, 1956, sought disbursement of claims under the Central Comprehensive Insurance Scheme (CCIS, 1997) after submitting claims for various periods. Despite forwarding these claims to the relevant authorities, the amounts were not disbursed due to the transition to a new policy (CCIS, 2007) and the cessation of the National Insurance Corporation's role as the nodal agency.
Finding of the Court:
The court found that the petitioner was entitled to the amounts claimed under CCIS, 1997, and that the delay in disbursement was due to the lack of a clear mechanism established by the government following the transition to CCIS, 2007. The court emphasized that the petitioner had changed its position based on the promises made under the policy and could not be denied its entitlements.
Issues: The main issues included whether the petitioner was entitled to the disbursement of claims under CCIS, 1997, and the responsibility of the government to establish a mechanism for processing these claims after the transition to CCIS, 2007.
Ratio Decidendi: The court held that the government had an obligation to create a clear process for the verification and disbursement of claims under the earlier scheme, and that the petitioner should not be deprived of its entitlements due to administrative lapses.
Final Decision: The court directed the Secretary to the Government of India to formulate a mode of operation for the verification and disbursement of entitlements under CCIS, 1997 within three months, and further directed that disbursement should occur within three months after the process is established.
JUDGMENT :
HONOURABLE MR. JUSTICE DEVASHIS BARUAH
1. The instant batch of writ petitions are taken up for disposal by this common judgment and order taking into account the similarity of the facts and the common issues involved.
2. The Petitioner herein is a company incorporated under the provisions of the Companies Act, 1956. The Petitioner is in the business of manufacturing of grain mills products, starches, starch products and prepared animal feeds. In the year 1997, the Department of Industrial Policy and Promotion, Government of India had launched an Industrial Policy dated 24.12.1997 known as the North East Industrial Policy (for short “NEIP 1997”). The said Policy covered the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. Various incentives were provided to the industries which were set up pursuant to the said industrial policy as well as also to the existing units going for substantial expansion, for a period of 10 years w.e.f from the date of their commercial production. Amongst the various incentives, one of such incentive was the Central Comprehensive Insurance Scheme, 1997 (for short “CCIS, 1997) which was notified by the notification bearing No.17/1/98-DBA-I dated 14.07.1999. As per the said Scheme, it was made applicable to new industrial units set up in the North Eastern Region after 24.12.1997. To come within the scope of an industrial unit and avail the scheme, the Industries have to be included in the Fire Policy “C” as per the All India Fire Tariffs. The manner in which the scheme would be worked out is stipulated in Clause 6 of the said notification dated 14.07.1999 which mandated that the insured i.e. the Industrial Unit shall pay the initial premium which shall be reimbursed by the nodal insurance company (National Insurance Corporation) out of the revolving fund maintained by that company. The funds for the said revolving fund shall be contributed by Ministry of Industry of Industrial Policy and Promotion.
3. As could be seen from a perusal of the writ petitions that the Petitioner herein was registered under the CCIS, 1997 and was allotted the Registration bearing No.DI&CC/CIS/TSK-29 dated 10.03.2005 vide a letter No.TDICC(CCIS’97)33/2004-05/1606-07 dated 11.03.2005 which was issued by the General Manager (In-charge), District Industries & Commerce Centre, Tinsukia. On the basis of being registered, the Petitioner submitted its claim for the various periods. The claims were duly forwarded by the General Manager, District Industries & Commerce Centre, Tinsukia to the Commissioner of Industries & Commerce of the State of Assam. The writ proceedings, details of the claims of the Petitioner, the period, the amount so claimed as well as the date on which the claims were forwarded to the Commissioner, Industries, Government of Assam are enumerated hereinbelow in the table.
ISHWAR FOOD PRODUCTS
WP(C) No. Period Amount Claim Forwarded
1307 of 2017 14.7.2005 - 13.7.2006 79,344.00 10.05.2007
1304 of 2017 14.7.2006 - 13.7.2007 1,13,300.00 07.08.2008
1301 of 2017 14.7.2007 - 13.7.2008 93,680.00 27.01.2010
1298 of 2017 14.7.2008 - 13.7.2009 93,680.00 21.10.2010
1295 of 2017 14.7.2009 - 13.7.2010 81,071.00 21.10.2010
1291 of 2017 14.7.2010 - 13.7.2011 81,071.00 13.08.2013
1287 of 2017 14.7.2011 - 13.7.2012 81,071.00 13.08.2013
1286 of 2017 14.7.2012 - 13.7.2013 59,160.00 13.08.2013
1284 of 2017 14.7.2013 - 13.7.2014 63,905.00 30.01.2015
4. The Petitioner though submitted its claim and the said claims were duly forwarded but the entitlements of the Petitioner were not disbursed for which the instant 9 (nine) writ petitions have been filed seeking for appropriate directions upon the Respondent Authorities for disbursing the amounts payable to the Petitioner as per the CCIS, 1997 as well also have sought for interest @1.5% per month on the said claims.
5. The record reveals that notices were issued by this Court making it returnable by 6 (six) weeks. None of
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