Case Note & Summary
The petitioner, Berger Becker Coatings Pvt. Ltd., a paint manufacturing company, filed a writ petition seeking a declaration that it was entitled to subsidy under the Goa State Investment Scheme 1990 and that the inclusion of 'paints' in the list of ineligible industries vide memorandum dated 7.11.1997 was ultra vires the Constitution. The petitioner also sought a writ of mandamus directing the respondents to disburse Rs.25 lakhs as subsidy. The petitioner had set up its unit in Goa before 7.11.1997 and obtained various permissions, but its unit was not registered with the Directorate of Industries before the cut-off date of 31.8.1997 as required by the memorandum. The court held that the petitioner failed to fulfill the essential condition of registration before the cut-off date, and the inclusion of paints in the ineligible list was a valid policy decision. The court dismissed the petition, finding no merit in the arguments of promissory estoppel or legitimate expectation.
Headnote
A) Constitutional Law - Ultra Vires - Inclusion of 'paints' in ineligible list - The memorandum dated 7.11.1997 excluding paints from subsidy was held valid and not ultra vires the Constitution as it was a policy decision within governmental competence (Paras 2-10).
B) Industrial Subsidy - Eligibility - Cut-off Date - The petitioner's unit was not registered with the Directorate of Industries before 31.8.1997, a condition precedent for subsidy under the Scheme - Court held that technical requirements of registration cannot be dispensed with (Paras 3-5).
C) Promissory Estoppel - Not applicable - No promise of subsidy was made to the petitioner before the cut-off date - The Scheme itself provided for registration as a condition, and the petitioner failed to comply (Paras 6-8).
Issue of Consideration
Whether the petitioner is entitled to subsidy under the Goa State Investment Scheme 1990 despite non-registration before the cut-off date of 31.8.1997, and whether the inclusion of 'paints' in the list of ineligible industries vide memorandum dated 7.11.1997 is ultra vires the Constitution.
Final Decision
The writ petition is dismissed. The court held that the petitioner was not entitled to subsidy as its unit was not registered before the cut-off date, and the inclusion of paints in the ineligible list was valid.
Law Points
- Subsidy eligibility
- cut-off date
- ultra vires
- promissory estoppel
- legitimate expectation
- retrospective effect
Case Details
WRIT PETITION NO. 319 OF 2011
M.S. Sonak, Nutan D. Sardessai
Mr. G.K. Sardessai with Ms. A. Carvalho for the Petitioner; Mr. V. Sardessai, Additional Govt. Advocate for the Respondents.
Berger Becker Coatings Pvt. Ltd.
State of Goa, through the Chief Secretary, Secretariat, Porvorim, Goa; Directorate of Industries, through its Director, Udhyog Bhavan, Opp. Azad Maidan, Panaji, Goa.
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Nature of Litigation
Writ petition seeking declaration of entitlement to subsidy and challenging inclusion of paints in ineligible list.
Remedy Sought
Declaration that petitioner is entitled to subsidy under Goa State Investment Scheme 1990; declaration that inclusion of 'paints' in ineligible list is ultra vires; writ of mandamus to disburse Rs.25 lakhs subsidy.
Filing Reason
Denial of subsidy under the Scheme due to non-registration before cut-off date and inclusion of paints in ineligible list.
Issues
Whether the petitioner is entitled to subsidy under the Goa State Investment Scheme 1990 despite non-registration before the cut-off date of 31.8.1997?
Whether the inclusion of 'paints' in the list of ineligible industries vide memorandum dated 7.11.1997 is ultra vires the Constitution?
Submissions/Arguments
Petitioner argued that it had invested considerable amounts before 7.11.1997 and obtained all necessary permissions, and the subsidy could not be denied on hyper-technical grounds of non-registration.
Respondents argued that registration before 31.8.1997 was a condition precedent for subsidy, and the petitioner failed to comply.
Ratio Decidendi
Subsidy eligibility under the Goa State Investment Scheme 1990 requires registration with the Directorate of Industries before the cut-off date of 31.8.1997; non-compliance cannot be waived. The inclusion of 'paints' in the ineligible list is a valid policy decision and not ultra vires.
Judgment Excerpts
The Petitioner has instituted the present Petition seeking following reliefs : 'a) For a declaration that the Petitioner is entitled for the subsidy under the Goa State Investment Scheme 1990; and b) For a declaration that the inclusion of 'paints' in the list of industries ineligible of subsidy under the said scheme vide memorandum dated 7.11.97 is ultra vires the Constitution of India; c) For a writ of mandamus...'
It is the case of the Petitioner that the Petitioner has set up an unit for manufacture of paints in the State of Goa. Such unit was set up by investing considerable amounts before 7.11.1997, which is a crucial date for determination of the issues raised in this Petition.
However, the unit of the Petitioner was not registered under the Goa State Investment Subsidy Scheme 1990 (said Scheme) with the Directorate of Industries prior to 31.8.1997, which is again a cut-off date prescribed in the Memorandum dated 7.11.1997.
Procedural History
The petitioner filed Writ Petition No. 319 of 2011 before the High Court of Bombay at Goa seeking reliefs related to subsidy under the Goa State Investment Scheme 1990. The petition was heard and dismissed on 26th September 2019.
Acts & Sections
