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Issues involved: Interpretation of Clause 23.3 of the Film Policy regarding subsidy for film production in Uttar Pradesh.
Facts of the case: The State Government of Uttar Pradesh established Film Bandhu to promote film production in the state, offering various incentives under the Uttar Pradesh Film Policy 2001. The respondents sought subsidy under Clause 23.3 of the policy, which provides a subsidy of 25% of the cost of production, subject to a maximum limit, for films made in regional languages in U.P. Arguments: The appellant argued that the subsidy was intended for film processing costs in labs outside U.P., limited to three years. The respondents contended that other film producers had received 25% of the entire production cost as subsidy. Judgment: The Supreme Court found ambiguity in the interpretation of Clause 23.3 and emphasized the importance of how the circular was understood by the department. The Court ruled that if other producers received 25% of the production cost, the same benefit should apply. However, if the subsidy was for film processing costs, it should be limited to that aspect. The Court set aside the previous judgment and remanded the matter to the High Court for further consideration based on the department's understanding of the policy and subsidies granted to other producers. Conclusion: The appeal was allowed, the impugned judgment was set aside, and the case was remanded to the High Court for a fresh review. No costs were awarded in this matter.
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