ANKUR MINING PRIVATE LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) ANKUR Mining Private Limited, petitioner herein, filed this writ petition claiming disbursement of subsidy in the amount of Rs. 8,38,396 sanctioned by the State Level Committee constituted under the State Capital Investment Subsidy Scheme for Industries 1990 (in short Scheme of 1990) vide order dated July 3, 1995.

(2.) THE case of the petitioner is that they established the Unit of Crushing Plant at Sanu Limestone Mines in Distt. Jaisalmer for excavation, screening and crushing of steel grade limestone. On November 24, 1992 the petitioner company also installed balancing equipment conveyer belt system as required by the Rajasthan State Mineral Development corporation. On February 12, 1994, the petitioner company submitted application along with requisite papers as required by the Subsidy Scheme for claiming subsidy amount of Rs. 14,90,380. After due scrutiny subsidy amounting to Rs. 8,38,396 was sanctioned by the State Level Committee in its 37th meeting held on June 6, 1995. THE decision of the Committee was conveyed to the petitioner company vide communication dated July 3, 1995. In its meeting dated November 8, 1995 the State Level Committee also took decision directing the petitioner company to give an undertaking to the effect that if the said industrial unit does not continue its production for a period of 5 years then the entire amount disbursed to the petitioner company shall be recoverable along with interest. THE Managing Director of the petitioner company submitted undertaking on stamp paper on or about December 11, 1995. THE case of the petitioner company is that they have completed entire required formalities but the subsidy amount was not paid to them after repeated requests. Hence, they filed the present writ petition claiming the subsidy amount as ordered by the State Level Committee.

(3.) IN M. P. Sugar Mills vs. State of U. P. (AIR 1979 SC 621) the Hon'ble Supreme Court propounded that the Government cannot claim to be exempt from liability to carry out the promise on some indefinite and undisclosed ground of necessity or expediency. The Government cannot claim to be the sole judge of its liability and repudiate it.