MAHALAXMI RICE MILLS Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) The writ-petitioner No. 1 is a partnership firm of which the other writ petitioners are partners. The petitioner No. 1 is also registered as an S. S. I. Unit of the State. On 11-8-88, the petitioners applied for a permit under S. 5 of the Rice Milling Industrial (Regulation) Act, 1958, before the Dist. Controller, F. and S. Dept., West Dinajpur, to set up a Modem Rice Mill at Detolhat, West Dinajpur (now in Dakshin Dinajpur). Permit No. 29837 dated 26-10-88, was issued accordingly. Thereafter, the petitioners submitted a scheme on 31-8-88, for their rice mill in November 1988. The banker of the petitioners, viz. Allahabad Bank, Fulbani Branch, sanctioned a loan of Rs. 30.75 lakh on certain terms and conditions as per annexure-'D'. On 30-10-89, the Dist. Controller, F. and S. Dept., West Dinajpur; granted a licence in favour of the petitioners being licence No. 34385 dated 39-10-89. The business started commercial production on and from 5-12-89.

(2.) The petitioners submitted their application for subsidy in conformity with the State Incentive Scheme, 1989, before the Extension Officer (Ind.) Banshihari Block on 13.5.91. The said officer forwarded it to General Manager, Dist. Industrial Centre, Raiganj on 13-5-91. That scheme was framed to promote growth and development of such industries in the backward areas of W. B. Object of the Scheme was to extend fiscal incentives to entrepreneurs to set up and expand SSI units. Such applications for incentives were required to be placed before the concerned committee for consideration within two months from the receipt thereof. But in the case of the petitioners, the concerned authorities sat tight over the matter for more than the stipulated period in spite of several reminders. At last, by a letter date 22.4.92, as per annexure-'H' the petitioners were informed by the Respondent No. 4, that the processing of subsidy (State incentive claimed by the Unit of the petitioners was stopped. But that stoppage was temporarily withdrawn and the Manager (Credit) of the concerned respondent visited the unit and completed investigation on 18.11.92.

(3.) Ultimately, without considering the pending subsidy scheme, the Govt. introduced a new subsidy scheme on 26-5-93 excluding the Rice Mills from the benefit of the Subsidy Scheme, as per annexure 'L'. This is arbitrary and illegal. The petitioners state that they cannot be victimised for the delay in the disposal of the disbursing of the subsidy as the petitioners relying on the benefits of the Scheme of 1989, spent a lot of money it modernising their rice mill after borrowing money from Allahabad Bank, Phulban Branch, for which they are subjected to pay interest. The petitioners stated that the notification dated 26-5-93 without taking into consideration the pending application under Incentive Scheme, 1989, is arbitrary, unconstitutional and illegal. Hence, the petitioners, have approached this Court for appropriate reliefs.