VIJAYA INDUSTRIAL PRODUCTS (P) LIMITED, CUDDALORE REP BY ITS MANAGING DIRECTOR, V KRISHNAMOORTHY Vs. GOVERNMENT OF TAMIL NADU, REP BY ITS PRINCIPAL SECRETARY INDUSTRIES DEPARTMENT, CHENNAI AND MANAGING DIRECTOR TAMIL NADU INDUSTRIAL INVESTMENT CORPORATION, CHENNAI

JUDGEMENT

(1.) The petitioner-Company praying to issue a Writ of Certiorarified Mandamus calling for the records relating to the first respondent in letter No.339/MIG-II/97, dated 6-11-1997, and to quash the same, consequently directing the respondent to sanction the balance subsidy amount of Rs.5 lakhs in terms of G.O. Ms. No. 306, dated 22-05-1987 in consonance with the clause 1.4 of G.O. Ms. No. 149, dated 1.4.1991 to the petitioner.

(2.) In the affidavit filed in support of the Writ Petition, the petitioner would submit that it is a Registered Company operated with the object of manufacturing nylon Monofilament Fishnet Twins at SIPCOT Industrial Complex, Cuddalore; that the petitioner was allotted two crores of developed plot for establishing the factory as per reference dated 29-01-1991 and also sanctioned with the loan of Rs. 95 lakhs by letter dated 28-02-1991; that the SIPCOT also sanctioned a further sum of Rs. 41 lakhs for the estimated cost of Rs. 207 lakhs; that the petitioner is entitled to subsidy of Rs. 20 lakhs as per letter dated 28-02-1991 of the TIIC which was granted in accordance with G.O. Ms. No. 306 dated 22-05-1989 of Industries (MIG 2) Department. The said G.O. further states that a Capital subsidy of 15% subject to maximum of 20 lakhs will be made available to medium and major industries to be set up in growth centres and industrial complexes at SIPCOT and as per the said G.O. the petitioner is entitled to claim the said subsidy of Rs. 20 lakhs, since the petitioner-Company falls within the enlisted category of Industries. The petitioner would further state that he placed orders for the supply of machineries for implementation of the project based on the loan sanctioned and the subsidy announced.

(3.) Further stating that the petitioner requested for enhancement of the loan amount with TIIC on various reasons pursuant to which TIIC had accepted to revise the loan amount as per its letter No. Projects/94-95/JSK dated 18-05-1994 and revising the earlier sanctioning order, but the subsidy earlier granted for an amount of Rs. 20 lakhs was reduced to Rs. 15 lakhs referring to G.O. 149, Industries dated 1-4-1991. But the G.O. also states that;