HINDUSTAN AGRO CHEMICALS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition has been Filed under Article 226 of the Constitution of India seeking writ in the nature of mandamus for fixation of the Ex-works price of Single Super Phosphate (hereinafter referred to as 'SSP') supplied by the petitioner and for issuance of direction to the respondents to pay the balance being the difference between the subsidy paid to the petitioner and the subsidy payable on the basis of the correct notified ex-works cost for the quarters September, 1990 to August, 1992 as well as for payment of interest on the delayed payments at the market rate.

(2.) The petitioner is alleged to be a Company registered under the Companies Act having amongst its businesses, the business of manufacturing SSP which is an important fertilizer containing Sulphur and phosphate. The relevant facts with regard to payment of subsidy are referred to in paragraphs 2,3,4,5 and 7 of the petition which may be reproduced as follows:

(3.) That the Government used to fix the selling price of SSP for each unit based on an ex-works cost price calculated by the Government. All the units were given a flat rate of subsidy at the rate of Rs.200.00 per tonne.