DURGA IRON MILL Vs. STATE OF BIHAR

JUDGEMENT

(1.) THIS Writ Petition has been preferred with the prayer to issue a writ in the nature of mandamus, commanding the respondents to sanction and disburse the amount of capital investment subsidy in accordance with the Industrial Policy No. 13730, dated 1.9.1986, amounting to Rs. 3,41,850/ -. During the pendency of this Writ Petition, and on account of the order dated 5.5.1998 of this Court, a sum of Rs. 1,91,250/ - has already been sanctioned and disbursed and therefore, this Writ Petition now survives for the balance amount of Rs. 1,50,600/ -along with consequential reliefs.

(2.) THE petitioner is a partnership firm and is represented before this Court through one of its partners. It set up a Rerolling Iron Mill at Baidyanathpur, Deoghar, District Deoghar, and for which respondent No. 5, the Bihar State Financial Corporation (hereiafter referred to as 'the Corporation'), had sanctioned and disbursed a sum of Rs. 22.80 lacs to the petitioner as term loan. The State Government, in the Department of Industries, issued an industrial policy, being Resolution dated 1.4.1986 (Annexure -1), to help the entrepreneurs in setting up industries in the State of Bihar by granting concessions and incentives. The admitted position is that paragraph 5(b) of the Industrial Policy is applicable to the facts and circumstances of the present case which is set out here in below for the facility of quick reference:

(3.) THERE also remains for consideration of this Court the disbursement of the balance sum of Rs. 1,50,600/ - which has not till date been paid. According to the petitioner, it had submitted its application, dated 5.8.1988 (Annexure 3) before the S.L.C., and the amount has not been sanctioned till date. In the submission of the learned Counsel for the petitioner, he had submitted his application dated 5.8.1988 (Annexure 3) for the balance sum and given the requisite time for processing and decision making, the Corporation should be restrained from releasing interest on the its term loan to the extent of Rs. 1,50,600 with effect from 1.10.1988 till the date of adjustment of the said amount.