1. Heard counsel Shri S. Gadodia appearing on behalf of the petitioner and Shri Ajit Kumar, Additional Advocate General on behalf of the State Respondent.

2. The controversy in the instant writ petition is regarding Memo No. 2869 dated 24.12.2010 (Annexure2 to the writ petition), whereby the petitioner's claim for grant of interest subsidy under the Jharkhand Industrial Policy 2001, has been rejected for the financial years 200607 and 200708, on the ground of limitation. The petitioner has also challenged the validity of Clause 4.3 (Gha) 1 & 2 of the Jharkhand Industrial Incentive Rules, 2003 (hereinafter referred to as 'Rules').

3. The specific assertion on behalf of the petitioner is that these Rules amount to curtailment of the spirit and essence of the Policy i.e. Jharkhand Industrial Policy 2001, hence, amounts to exercise of excessive power and defies the intent of Industrial Policy 2001 itself. The respondents, by means of the impugned Memo No. 2869 dated 24.12.2010 issued by Respondent No. 3, rejected the claim of the petitioner for the year 200607 to be barred by 1 year 13 days and for the year 200708 by 13 days. The facts of the case are as follows :

The petitioner is a new Industrial Unit established pursuant to the Jharkhand Industrial Policy 2001 and it is engaged in manufacture of M.S. Wire and M.S. Nail. The date of commercial production of the petitioner unit is 07.02.2004.

As per the Industrial Policy 2001, particularly Clause 29.5, the petitioner was entitled for interest subsidy for a period of five years.

“29.5. Interest Subsidy

The objective of providing this subsidy is to bring down interest cost of industry for the period an industry is in its teething stage and most hard pressed. This subsidy is aimed to encourage industry's continuous growth rather than stagnate and also contribute its share of prosperity to the state.

The interest subsidy admissible to new industries shall be admissible in the following manner on the interest actually paid to the financial institutions/banks on loans taken by such new industry:

Sl. Incentive Category Maximum Financial Limits (Lakhs)

No. % Incentive

1. Interest A 25 The subsidy shall be limited Subsidy B 50 to a sum of Rs. 100 lakhs

C 60 annum provided the total

interest subsidy shall not

exceed 2% of the total

sales amount made in the

State of Jharkhand and/or

in course of interstate

sales as supported

by the certificate/document

issued by the commercial tax

authority. This subsidy shall

be admissible for a period of

5 years for all categories of

industries from the date of

commercial production.

The petitioner was entitled for interest subsidy for the financial years 200405 to 200809 (financial years 200607 and 200708 in the instant case). Applications were filed by the petitioner before the General Manager, District Industries Centre, Giridih and its claim was duly examined, vide Annexure1 of the writ petition, recommendation was made for payment of interest subsidy amounting to Rs. 2,77,217/in favour of the petitioner for the aforesaid two years.

The claim of interest subsidy was rejected on the ground that as per the Jharkhand Industrial Incentive Rules, 2003, particularly Clause 4.3(Gha) 1, it was barred by time and the delay for the year 200607 and 200708 was 1 year 13 days and 13 days respectively.

The State of Jharkhand framed Jharkhand Industrial Incentive Rules 2003. In the said Rules, particularly Rule 4.3 (Gha) 1 & 2, provision for limitation for making claim application was provided. Rule 4.3 (Gha) 1 & 2 is quoted below :

'Gha' Samay Sima

1. Ichchuk ikaiyon ko sabhi dristikon se purn vanchhit kagjaton ke sath apne dave kisi vittiya sal ki samapti ke chha mah ke bhitar samarpit karna aniwarya hoga.

2.6 (Chha) mah se adhik ki awadhi ko kshant karne ki shakti Uddyog Nideshak me nihit hogi. Isse adhik ke samay sima ko kshant karne ki shakti Sachiv Uddyog me nihit hogi.

The aforesaid Rule prov