Case Note & Summary
The petitioners, four industrial units (Shraddha Polymats, Raj Industries, Alpha Plast, and Jayesh Chandulal Shah), filed writ petitions under Article 226 of the Constitution of India seeking directions to the respondents (State of Maharashtra and District Industries Centre, Jalgaon) to issue Eligibility Certificates under the Package Scheme of Incentives, 1993 (PSI). The scheme was introduced by Government Resolution dated 7.5.1993 to promote industrial development in the state. The petitioners had applied for eligibility certificates and had commenced production after 1.1.1999. However, the respondents denied the certificates on the ground that the 1993 scheme was superseded by a subsequent Government Resolution dated 31.3.1999, which introduced a new scheme. The petitioners contended that they were entitled to benefits under the 1993 scheme as they had applied before the cut-off date and had fulfilled all conditions. The court, after hearing arguments, held that the 1993 scheme continued to operate for units which had applied and were eligible under it, and that the respondents could not deny benefits on the ground of non-issuance of eligibility certificate. The court applied the principle of promissory estoppel and legitimate expectation, directing the respondents to issue the eligibility certificates to the petitioners. The court also noted that the cut-off date of 1.1.1999 for commencement of production was not a bar to the petitioners' claim, as they had applied before that date and were eligible under the earlier scheme. The petitions were allowed with no order as to costs.
Headnote
A) Industrial Policy - Package Scheme of Incentives - Eligibility Certificate - The petitioners, industrial units, sought eligibility certificates under the Package Scheme of Incentives, 1993, issued by Government Resolution dated 7.5.1993. The respondents denied the certificates on the ground that the scheme was superseded by a subsequent resolution dated 31.3.1999. The court held that the scheme continued to operate for units which had applied and were eligible under the earlier resolution, and that the respondents could not deny benefits on the ground of non-issuance of eligibility certificate. (Paras 1-10) B) Promissory Estoppel - Government Scheme - Legitimate Expectation - The court applied the principle of promissory estoppel, holding that the government could not go back on its promise contained in the 1993 scheme, especially when the petitioners had acted upon it by establishing industrial units. The court also noted that the petitioners had a legitimate expectation that they would be granted the benefits. (Paras 11-15) C) Interpretation of Government Resolutions - Cut-off Date - The court interpreted the 1993 scheme and the subsequent resolution, holding that the cut-off date of 1.1.1999 for commencement of production was not a bar to the petitioners' claim, as they had applied before that date and were eligible under the earlier scheme. The court directed the respondents to issue eligibility certificates to the petitioners. (Paras 16-20)
Issue of Consideration
Whether the petitioners, who had applied for eligibility certificates under the Package Scheme of Incentives, 1993, and had commenced production after 1.1.1999, are entitled to the benefits of the scheme despite the Government Resolution dated 7.5.1993 being superseded by a subsequent resolution dated 31.3.1999.
Final Decision
The court allowed the writ petitions and directed the respondents to issue Eligibility Certificates to the petitioners under the Package Scheme of Incentives, 1993. No order as to costs.
Law Points
- Package Scheme of Incentives
- 1993
- Eligibility Certificate
- Industrial Policy
- Promissory Estoppel
- Legitimate Expectation
- Government Resolution
- Commencement of Production
- Cut-off Date
- Interpretation of Government Schemes
