Budgetary support eligibility upheld; unjustified delay in disbursal attracted compensatory interest and costs.

Eligibility for budgetary support under the industrial incentive notification was upheld where the record showed new investment, increased employment, and progressive production, and speculative objections did not dislodge the contemporaneous assessment of compliance. The benefit was therefore directed to be released forthwith. For the delayed disbursement, the court treated compensatory interest as warranted because the admissible benefit had been withheld for a substantial period after the claim had attained finality, and costs were ordered to be recovered from the concerned officers. The petitioner's entitlement to the fiscal support and consequential monetary relief was affirmed.

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Issues: (i) whether the petitioner was entitled to budgetary support under Notification No. 01/2010-CE dated 06.02.2010 on the facts found by the authorities; (ii) whether relief for delayed payment by way of interest was warranted.

Issue (i): whether the petitioner was entitled to budgetary support under Notification No. 01/2010-CE dated 06.02.2010 on the facts found by the authorities.

Analysis: The claim had already attained finality in the Union Government's own stand and the materials on record showed that the unit had made new investment, increased employment, and progressively enhanced production. The committee's objections did not displace the contemporaneous assessment that the eligibility conditions were met, and its own report did not finally negate the petitioner's entitlement. The refusal to release the support was therefore unjustified.

Conclusion: The issue is answered in favour of the petitioner. The petitioner was held entitled to receive the budgetary support and the same was directed to be released forthwith.

Issue (ii): whether relief for delayed payment by way of interest was warranted.

Analysis: The authorities had withheld the admissible benefit for a substantial period despite the claim having attained finality, and the delay was attributed to the Union Territory's inaction. In those circumstances, compensatory interest was treated as an appropriate consequence of the delayed disbursement, along with recovery of costs from the responsible officers.

Conclusion: The issue is answered in favour of the petitioner. Interest at 9% per annum from 18.05.2017 till payment was directed, and costs were ordered to be recovered from the concerned officers.

Final Conclusion: The petitioner's entitlement to the industrial budgetary support was affirmed, and consequential monetary relief was granted for the delay in disbursement.

Ratio Decidendi: Where eligibility for a fiscal incentive has attained finality and the record supports compliance with the governing conditions, the benefit cannot be withheld on speculative objections, and compensatory interest may be awarded for unjustified delay in payment.

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