RAM GANGA FERTILIZERS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The four petitioners, manufacturers of Single Super Phosphate (for short SSP), a low nutrient phosphatic fertilizer, seek awrit of mandamus to the respondents, directing them to: (a) notify the ex-factory price of SSP for them for the quarters succeeding the quarter September 1991 and December, 1991, (b) pay the correct subsidy payable to them for the quarters of September 1991 onwards (beyond the ceiling rate) on the basis of the ex-factory price to be notified, (c) pay to petitioners no. I and 3 the subsidy payable to them for the SSP supplied for the period I August 1992 to 24 August 1992and(d) pay to them interest at the market rate for the delay in payment of subsidy from the time the correct subsidy ought to have been paid till the time it is actually paid.

(2.) Petitioners' case is that priorto 1982,SSP was under informal price control, which was made effective from 16 March 1976, a flat subsidy of Rs.200.00 per tonne was granted by the Government of India while the consumer price for individual unit was fixed by the Fertilizers Assocation of India in accordance with the formula agreed to with the Government of India after deducting the said subsidy. However, different retail prices were fixed for different manufacturers. The result was that there was no uniformity in the price of SSP. On the recommendation of the working group on review of subsidy, on 23 May 1982, the Government of India replaced the scheme of flat subsidy at the aboverate by a scheme of a differential level of subsidy on the basis of the ex-factory price to be worked out separately for each manufacturing unit. The ex-factory price was to be worked out by Fertilizer Industry Co-ordination Committee (for short FICC)separtelyfor each manufacturing unit. For this purpose, all the manufacturing units were to furnish details to FICC on prescribed proformae. This method of payment of subsidy continued till November, 1991 when the Government of India decided to fix a ceiling on subsidy payable to the manufacturers of SSP. Accordingly, the Government, vide order dated 01 November 1991 intimated the FICC the two ceiling rates fixed by it for the period from 25 July, 1991 to 13 August 1991 and from 14 August 1991 onwards. The ceiling rates for the said periods were, however, revised by another order dated 9 June 1992. Both these orders were successfully challenged by the petitioners in Ram Ganga Fertilizer & others Vs. Union of India & others, 1993 ( 1 ) Delhi Lawyer 202. The said orders were quashed by this court holding that no ceiling could be fixed for those manufacturing units which were established before the issue of the said two orders. It was held that subsidy to the petitioners was to be paid in accordance with the Scheme formulated and enforced w.e.f. 23 May 1992 i.e. price to be worked out by FICC.

(3.) The grievance of the petitioners in the present writ petition qua relief (b) and (c) is that though for the quarters succeeding September 1991 and December 1991 they have been paid at the ceiling rate, they are entitled to payment at the differential rates in accordance with the Scheme of 1982 and since nothing has been paid for the period 01 August 1992to24August 1992, they are entitled to be paid full subsidy. They allege that the respondents are illegally withholding the money due to them. They further state that the Government of India has failed to notify the ex-factory price for the quarters after September 1991 or December .as the case may be, immediately after having received the relevant cost data from the petitioners, which it was obliged to do at least within 45 days of the furnishing of the said data. The petitioners, therefore, claim interest at the market rate for the delay in payment of the subsidy.