SUPERTEX INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition, the petitioner company which is duly registered under the Companies Act, 1956 has impugned the action of the respondents in not granting to the company the subsidy under the Central Investment Subsidy Scheme promulgated by the Government of India in 1971. The prayers may be noted verbatim :

(2.) ACCORDING to the petitioner, the Central Investments Subsidy Scheme, 1971 was formulated to give benefit to such entrepreneurs who are willing to set up an industrial unit in backward areas of the country so that the industrial growth of that area is stimulated. It was in effect an incentive scheme. It provided substantial incentive to entrepreneurs willing to commence industrial activity in backward areas. The incentive was in the shape of Central Investment Subsidy.

(3.) UNDER the scheme, the subsidy was offered to an industry after its commencement on certain conditions mentioned in the scheme. It is the case of the petitioner that it was because of the promises put forward in the scheme by the Government of India in 1971 and during the operation of the scheme that the petitioner took up the venture of setting up the industry in the backward area of Dadra and Nagar Haveli. The manufacturing activity undertaken by the petitioner company is not relevant for the purposes of this petition. The consideration of grant of subsidy was taken up by the Government of India when the industry was situated in any of the Union territories through the State Level Committee and decision on the question of grant was taken by the Government of India itself.