TRIVENI ENGINEERING WORKS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) (Oral)

(2.) THIS writ petition, inter alia, raises the question as to whether the incentive scheme which was initially declared by the respondent on 6.12.1975, as modified on 17.12.1979 and revised on 15.11.1980 as contained in Annexure A, available to a new sugar factory, can be denied to the already existing (but re- modelled) factory of the petitioner? Mr.Shanti Bhushan, learned counsel for the petitioner has contended that the petitioner's factory was altogether a new unit, having invested a sum of Rs.8.30 crores. It is argued that the petitioner was entitled to the incentive on the basis of the cost which worked out to be Rs.6.56 crores. It has been contended before us by Mr.Shanti Bhushan that the objective of the scheme was to have more production of sugar and the scheme was formulated by the respondent keeping in view the fact that the sugar plants in the country had become obsolete. They required new capital as well as modernisation of plants and machinery. Learned counsel for the petitioner has emphasised that for achieving this objective the government had issued the scheme so as to enable such sugar factories to expand their capacity after scrapping the old sugar factories and installing altogether new factories by adopting the new techniques of sugar production as well as by replacement of old plants and machinery. Learned counsel for the petitioner has contended that practically there is no difference between a new sugar factory and an existing sugar factory which has been modernised by scrapping its old sugar mill and, therefore, two different yardsticks cannot be made applicable in terms of the policy because the policy of the incentive scheme postulates that a new sugar factory and an existing sugar factory which was completely re-modelled by installing a new plant and machinery, i.e. both, should achieve the main objective of the scheme. It was contended that even an existing sugar factory which not only wanted to expand the capacity but had entirely changed the plant and machinery would also fall in the same category on the basis of the definition of Section 13 of the Industries (Development & Regulation) Act, 1951. Section 13 of the Act is to the following effect :- 13. Further provision for Licensing of industrial undertakings in special cases. -- (1) No owner of an industrial undertaking, other than the Central Government, shall --