GUJARAT HOTEL LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The appellant original petitioners have challenged the order dated 14.6.2010 passed by the learned Single Judge in the writ petition Special Civil Application No. 13969 of 1993. While partially allowing the writ petition, the learned Single Judge held that petitioner Nos. 1 and 3 are liable to pay interest at the applicable rate on the outstanding amount of electricity duty, commencing from 11.11.1993 till the actual date of payment.

(2.) The case of the appellant original petitioners is that Gujarat Hotels Ltd. (hereinafter referred to as the 1st petitioner Company ) was promoted in the year 1982 as a joint sector Company by M/s Gujarat Industrial Investment Corporation Ltd. ( GIIC for short), a Government of Gujarat Undertaking. The Company was so promoted with the object of promoting hotels. On 18.1.1984, a shareholders agreement was reached by GIIC regarding the 1st petitioner Company with ITC Ltd., by which it was agreed between GIIC and ITC Ltd. that GIIC shall take up 26.1% of the equity share capital of the 1st petitioner Company and ITC Ltd. shall take up 24.9% of the equity share capital. The balance of the equity was to be offered for public subscription in India. Further case of the petitioners is that the aforesaid step of establishment of the 1st petitioner Company (hotel) was taken up at the instance of the State Government, through GIIC. The joint sector Company the 1st petitioner Company became sick for the reasons recorded in the meeting dated 4.10.1990. In the said meeting, in presence of the Chief Secretary of the Government of Gujarat, Chairman and Managing Director of GIIC, representatives of financial institutions and ITC Ltd., it was agreed that the 1st petitioner Company, a joint sector Company be revived and the promoters alongwith the financial institutions agreed to make contributions/sacrifices in net present value terms as mentioned hereunder :-

(3.) By one resolution dated 8.6.1993 issued from Industries & Mines Department, the concession of deferment of luxury tax was withdrawn by the Government of Gujarat. By another resolution dated 11.11.1993, issued from the Ministry of Industries & Mines Department, the concessions regarding deferment of electricity duty, deferment of sales tax and deferment of purchase tax were withdrawn by the Government of Gujarat.