2016 (9) TMI 1307 - HC - Indian Laws

Entitlment to full benefit as per the Incentive Scheme, 2001 for Economic Development of Kachchh District - scheme announced by the Industries and Mines Department, State of Gujarat through its Resolution No. INC-10200-903-1 dated 9.11.2001 - petitioner had requested the Authority to treat the case of the petitioner as pipeline project and has requested to grant benefit of 18 months as provided under Clause 3.8 of the Policy dated 09.11.2001 - Held that - High Power Committee who decided the case of the Petitioner was not properly made aware about all the Policies and representations made by the petitioner. The High Power Committee has decided his case as if the petitioner had only requested to extend the Policy though he had requested to grant benefit under Clause 3.8 of the Policy dated 09.11.2001. Therefore, in my opinion, following order is passed to meet the end of justice - The concerned Authority shall prepare an agenda in detail and the same shall be placed before the High Power Committee. The agenda shall be placed before the High Power Committee within a period of four weeks from the date of receipt of the order. The High Power Committee, which is headed by Hon ble the Chief Minister and Hon ble Finance Minister, is hereby requested to examine the case of the petitioner and is further requested to decide whether the petitioner would be entitled for the benefits of 18 months, keeping in mind the language used in clause 3.8 of the Policy dated 09.11.2001.

Summary

Issues:
1. Interpretation of the Incentive Scheme, 2001 for Economic Development of Kachchh District.
2. Consideration of benefits under the Scheme for a Private Limited Company.
3. Decision-making process of the High Power Committee.
4. Application of the Policy dated 09.11.2001 and subsequent Notifications.
5. Request for extension of benefits under Clause 3.8 of the Policy.
6. Allegations of non-application of mind by the High Power Committee.
7. Dispute over the entitlement of benefits for 18 months under the Policy.

Analysis:
1. The petitioner, a Private Limited Company, sought benefits under the Incentive Scheme, 2001 for Economic Development of Kachchh District. The Scheme aimed to attract industrial investment post a major earthquake in Gujarat. The petitioner invested significantly in the project, totaling around ?186 Crores, falling under the large-scale unit category as per the Scheme's provisions. The petitioner requested benefits for 18 months under Clause 3.8 of the Policy dated 09.11.2001, which lacked a specific end date clause for units with investments exceeding ?10 Crores. The High Power Committee's decision-making process was questioned for allegedly not considering all aspects of the petitioner's case.

2. The High Power Committee's decision was challenged on grounds of non-application of mind, as it appeared to have misunderstood the petitioner's request solely as an extension of the Policy rather than a claim for benefits under Clause 3.8. The respondent contended that the petitioner's manufacturing commencement date and the Scheme's completion date aligned, implying no entitlement to benefits beyond 31.12.2005. The respondent argued against treating the petitioner's case as a pipeline project under the Policy.

3. The Court noted discrepancies in the High Power Committee's understanding of the petitioner's representations and directed a detailed agenda presentation before the Committee. The Committee, comprising the Chief Minister and Finance Minister, was tasked with reevaluating the petitioner's case to determine eligibility for the 18-month benefits under Clause 3.8 of the Policy dated 09.11.2001. The Court emphasized a comprehensive review by the Committee to ensure justice and adherence to the Scheme's provisions.

4. The Court emphasized the importance of a thorough examination of the petitioner's case by the High Power Committee to align with the Scheme's objectives and provisions. The judgment highlighted the need for a proper understanding of the petitioner's requests for benefits under the Policy and subsequent Notifications. The Court's directive aimed to rectify any oversight or misinterpretation in the decision-making process, ensuring a fair assessment of the petitioner's entitlement to the Scheme's benefits for economic development in Kachchh District.