SUNCITY INDUSTRIES LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) BY this writ petition the petitioner company, which is duly registered under the Companies Act, 1956 and carrying on business of manufacture and sale of vegetable oil and de-oiled cakes, is challenging the impugned order/decision dated 13.03.2001 (Annex.-9) which is communicated to the petitioner vide Annex.-8 dated 17.05.2002. The petitioner has also prayed for quashing Annex.-4 passed by Deputy Director, Industries on 07.06.1997.

(2.) ACCORDING to the facts narrated in the petition, the petitioner company was set up for manufacture of vegetable oils and applied for availing subsidy under the notification dated 05.09.1990, known as State Capital Investment Subsidy Scheme 1990. Upon application filed by the petitioner company, the State Level Committee constituted under the Subsidy Scheme held the petitioner company entitled for subsidy in its meeting held on 15.05.1996 and, in pursuance of that decision taken in the meeting of the committee, a sanction letter was issued in June 1990 by the Director, Industries, Jaipur whereby it was informed to the petitioner company that a sum of Rs.15,00,000/- has been sanctioned to the petitioner company.

(3.) IT is contended by learned counsel for the petitioner that the petitioner company is very much entitled to the benefit of subsidy in accordance with the Scheme but the sanction initially granted in favour of the petitioner by the State Level Committee was illegally cancelled and the cancellation order was passed without issuing any notice or affording any opportunity of hearing to the petitioner. IT is argued that availing the benefit of subsidy is a civil right conferred by the Statute and review is permissible only if the statute provides for such a review and, in absence of any express provision for review, the impugned decision for cancelling the sanction order of subsidy is illegal. Learned counsel for the petitioner submits that the petitioner unit has spent more than 75% of the project cost by 31.03.1997 as per the details submitted before the respondents and even according to the subsequent circular dated 28.10.1995 the petitioner is entitled to avail the benefit of subsidy under the Subsidy Scheme 1990.