DURGA OIL MILL Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this writ application, the petitioners have prayed for quashing the order of the State Government in the Department of Industries, dated the 10th January, 1976, withdrawing the registration and the benefits granted to Messrs. Durga Oil Mills, a partnership concern, under the Small Scale Industries Incentive Scheme. There is also a prayer to quash the order of the District Industries Officer, Patna, dated the 27th February, 1976, issued on the basis of above mentioned order of the State Government dated the 10th January, 1976. Copies of these orders have been filed as Annexures '11' and 12' to this writ application.

(2.) The petitioner's case is that petitioner No. 1 is a registered partnership firm carrying on business in manufacture of various types of edible, oil at Patna City, the partners of the firm being petitioners No. 2 and his brother, Girdhari Lal Saraf. With effect from the 18th November, 1974, the latter retired from the partnership. The petitioners have averred that the State Government" issued various notifications and orders in the Department of Industries and Technical Education, one of such orders dated the 9th June, 1969, with which we are concerned, has been filed as Annexure '1'. Various reliefs are granted to small scale industries registered under the scheme contained in the said order in matter of tax relief supply of raw materials as also purchase of their products by certain Government institutions, etc., as mentioned in Annexure '1'. The petitioner's case is that petitioner No. 2, with other partners, had already started an oil mill, known as M/s. Bhawani Oil & Flour Mills, Patna, in the Mills, Patna, in the year 1969, which manufactured different types of edible oil. In pursuance of the aforesaid scheme, on the 7th December, 1973, petitioner No. 2; along with Girdhari Lal Saraf, set up the aforesaid partnership firm, Messrs. Durga Oil Mills (petitioner No. 1). The petitioners applied for registration under the Small Scale Industries Incentive Scheme and on the 10th December, 1973, it was granted a temporary registration certificate for six months for manufacturing edible oil. A copy of the temporary registration certificate has been filed as Annexure '3'. Thereafter, on the 3rd February, 1974, an application for permanent registration under the said scheme (Annexure '4') was filed. After inspection, as per Annexure '5', the petitioner No. 1 was granted a registration certificate on the 2nd May, 1974, a copy of which has been filed as Annexure '6'. The petitioners' grievance is that although the said firm is carrying on business of producing edible oil, their registration has been cancelled by the impugned orders.

(3.) A counter-affidavit has been filed on behalf of the State, stating that the registration in question had been obtained by practising deception, inasmuch as the petitioners, after obtaining registration of this firm, really started a new firm with son of the old partners of M/s. Bhawani Oil and Flour Mills, when the advantage availed of by Bhawani Oil and Flour Mills were coming to an end, and that is why the registration was withdrawn and the privileges, if any, available to oil mills have been withdrawn since the 5th September, 1975, and the petitioners have not been denied any special benefit, which would have accrued to them by the registration.