Mittal Cot. Fab. Pvt. Ltd. vs State of Haryana and Another

Sanjay Kishan Kaul, C.J.—The petitioners have filed these petitions under Article 226 of the Constitution of India claiming different reliefs, but it is accepted that the only relief which survives for consideration is for a mandamus directing respondents No. 1 and 2 to release the amount of subsidy sanctioned/granted on 18.12.1995 as communicated, vide letters dated 8.1.1996 and 11.1.1996 (Annexures-P-1 respectively). The only defence raised in the counter affidavit by the said two respondents is that the case of the petitioners was not properly scrutinized by the State Level Committee as the units had not obtained CLU/NOC from the competent authority which is stated to be mandatory. The cases are stated to have been sanctioned inadvertently. Thus, these cases are stated to be required to be placed before the State Level Committee for rejection of the application for grant of Capital Investment Subsidy. It is further stated that a letter "is being issued" to the petitioners'' unit with a request to obtain CLU/NOC from the competent authority within one month, otherwise the case of the petitioners'' unit will be placed before the State Level Committee meeting for cancellation of the subsidy. Lastly, it is stated that if the Unit obtains the CLU and produces the same, Capital Investment Subsidy would be disbursed as per seniority.

We may note at the inception that this subsidy has to be disbursed as per seniority dependent upon the funds made available by the State of Haryana and this issue is no more res-integra in view of the Division Bench judgment of this Court in Civil Writ Petition No. 9520 of 1999 titled as M/s. A.V. Cottex Limited Versus State of Haryana and another, decided on 3.11.1999.

Learned counsel for the petitioners seeks to contend that the requirement of the NOC/CLU was not part of the requirement for obtaining the subsidy, while learned counsel for respondents contends to the contrary. Learned counsel for respondents has relied upon the judgment of the Hon''ble Supreme Court in State of Haryana and Others Vs. Baldev Spinners Pvt. Ltd. and Others, where the eligibility certificate granted to an applicant was later on withdrawn for non-production of NOC/CLU certificate. It may, however, be added that the matter pertained to the Haryana General Sales Tax Act, 1973 and the rules framed thereunder qua electricity connection. The eligibility certificate is issued under Rule 28-A of the Haryana General Sales Tax Rules, 1975 and the same has to be notified in Form ST-72. This form in turn entails annexing an NOC/CLU certificate.

We are unable to scrutinize the parameters for the grant of subsidy as neither of the parties have taken care to bring before us the norms of such subsidy. Thus, it is not clear whether NOC/CLU was a pre-requisite condition or not. The fact, however, remains that as per law the unit is to be set-up on land on which it is permissible to so set-up the unit. Thus, either it should be permissible to set-up the unit on the land (as claimed by the learned counsel for the petitioner) or CLU has to be obtained. Thus, in the first eventuality, an NOC would be required, while in the latter, CLU would be required.

We may also take note of another aspect that there is nothing on record to show that the case of the petitioner was ever placed before the State Level Committee or that Annexure-P-1 was cancelled.

In view of the aforesaid fact and circumstances, we issue the following directions:-

(i) The petitioner will either obtain a certificate showing that it was permissible in law to set-up a unit on the nature of the land owned by the petitioner (NOC certificate) or CLU was obtained;

(ii) The certificate be produced before respondent No. 2 within one month from today and on such certificate being produced, the case of the petitioner would be placed before the State Level Committee alongwith the certificate; and

(iii) If the petitioner is otherwise found eligible for disbursement of the Capital Investment Subsidy, the same would be so disbursed to the petitioner according to the seniority of their placement and subject to availability of funds as per the seniority.

The petitions accordingly stand disposed of.