RITU BAHRI, NIDHI GUPTA
Nufab Technical Textiles Pvt. Ltd. – Appellant
Versus
State of Haryana – Respondent
JUDGMENT :
Ritu Bahri, ACJ.
1. Petition is seeking issuance of a writ of certiorari for setting aside the order dated 28.05.2019 (Annexure P-21) passed by respondent No.3-Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) declining the grant of subsidy to the petitioner. Further direction for setting aside the Notification dated 21.12.2018 (Annexure P-14) and Notification dated 09.01.2019 (Annexure P-18) seeking to amend the policy for grant of subsidy being against the law and contrary to the Enterprises Promotion Policy, 2015.
2. The petitioner-company is engaged in manufacturing of non-woven fabrics and is a small scale unit employing the latest technical knowhow for the manufacturing of fabrics. Respondent No.2 made an effort to promote the industries, framed an industrial policy providing incentives to the industry and for its upliftment known in the name of ‘Enterprises Promotion Policy-2015’ (Annexure P-1). The object of the policy was to encourage set-up the industry in the State to create large scale employment. Special emphasis has been laid on MSMEs (Micro, Small and Medium Enterprises) and also SMEs (Small Medium Enterprises). The criteria for granting the subsidy was discu
Pournami Oil Mills vs. State of Kerala and another 1987 AIR (SC) 590
The principle of estoppel prevents authorities from withdrawing subsidies once granted, especially when businesses have acted on the original policy.
The State is bound by its promises under the Industrial Policy, and failure to issue enabling notifications for incentives constitutes arbitrary action, invoking the doctrine of promissory estoppel.
The absence of a cut-off date in the Special Mega Package allows entitlement to incentives regardless of the commercial production start date relative to the previous policy's expiry.
The doctrine of promissory estoppel prevents the State from withdrawing tax exemptions promised under the Industrial Policy, 2004, even after the de-notification of backward areas.
The court established the binding nature of Operational Guidelines as supplements to the Policy, emphasizing that guidelines remain effective until modified by the competent authority.
The court affirmed that companies meeting criteria under the Bihar Industrial Incentive policies are entitled to interest subsidies from the commencement of commercial production, irrespective of pri....
Existing units commencing production before new industrial policy but not availing prior incentives eligible under amended transitional Clause 8(b); prior clearances create vested rights invoking pro....
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