STATE OF PUNJAB Vs. FEROZSHAH AGRO PVT. LTD.

JUDGEMENT

(1.) State of Punjab is assailing the judgement passed by the learned Single Judge dated 19.4.2010 through the present appeal on the ground that the respondent is not entitled to subsidy as the unit was not a running unit and stood closed on the date when the amount was to be disbursed.

(2.) Counsel for the appellants submits that as per the sanction of the investment incentive claim dated 25.6.1999, Annexure P-2, a condition was imposed that disbursement will be made on the availability of funds and strictly as per the seniority, provided the unit is found in working condition/in operation at the time of disbursement. When the funds became available, the matter with regard to the disbursement, as per the sanction, was taken up in the year 2006 on a communication received from the Committee constituted for disbursement of the amount, which sought information from the Director, Food and Supplies and Consumer Affairs with regard to the fact regarding the status of the unit. The report so submitted suggested that the unit was not running during the year 2007-08 for the reason that the respondent-Company had defaulted in complying with certain conditions of the contract with Markfed and, therefore, its claim was rejected. This action of the appellants is sought to be supported by the counsel in the light of the conditions imposed in the sanction of investment incentive claim dated 25.6.1999 that at the time of disbursement, the unit should be found to be in working condition/in operation. Since the unit stood closed, no disbursement of the subsidy could be made to the respondent. He, on this basis, contends that the judgement of the learned Single Judge cannot be sustained and deserves to be set-aside.

(3.) We have considered the submissions made by counsel for the appellants and are unable to accept the same. In the light of the policy of the Government of Punjab, which provided for incentive on capital investment by way of subsidy to the units/industries, which are established in the border districts, to reduce rampant unemployment. It was under this Industrial Policy, 1992 floated by the Government of Punjab that the respondent herein established the unit and claimed capital investment incentive through a claim, which was available under Clause 6 of the Industrial Policy 1992, which clause reads as follows:-