Court orders disbursement of Rs. 1.18 billion to petitioners in WPA 9546 of 2019

The court allowed WPA 9546 of 2019, directing the respondents to disburse the balance amount of Rs. 1,18,22,02,436/- to the petitioners within three months and set aside the order dated September 14, 2019.

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Issues Involved:
1. Entitlement to Industrial Promotional Assistance (IPA) under a special package.
2. Applicability of 2000 and 2004 Schemes to the special package.
3. Principle of estoppel in relation to the special package.

Summary:

1. Entitlement to Industrial Promotional Assistance (IPA) under a special package:
The petitioners claimed under an Industrial Promotional Assistance (IPA), a special package of financial incentive provided by the respondent authorities. The incentives were disbursed for a little more than two years, although the scheme's tenure was five years and two months. When the petitioners sought the balance disbursal, the Additional Chief Secretary, Department of Industry, Commerce, and Enterprises, decided against further disbursal, citing provisions of a 2004 scheme unrelated to the special package granted to the petitioners. The petitioners argued that the special package explicitly stated IPA at 75% of VAT and CST paid in the previous year without any financial cap, and they had obtained eligibility certificates approved by the Sales Tax Authorities.

2. Applicability of 2000 and 2004 Schemes to the special package:
The respondents contended that the special package should be read in conjunction with the 2004 Scheme. However, the court found that the special package did not refer to the 2004 Scheme, and the 2000 Scheme was only mentioned to specify subsidies, excluding interest subsidy. The court concluded that neither the 2000 nor the 2004 Schemes applied to the special package, and the respondents' reliance on these schemes was erroneous and arbitrary.

3. Principle of estoppel in relation to the special package:
The court held that the principle of promissory estoppel was not applicable, but the doctrine of substantial estoppel was relevant. The respondents had acted on the special package for more than two years, and the petitioners had taken actions and spent resources based on this. The court found that the respondents were bound by the doctrine of estoppel and could not change their stance midway. The respondents' attempt to invoke principles from the 2004 Scheme was deemed mala fide and arbitrary.

Conclusion:
The court allowed WPA 9546 of 2019, directing the respondents to disburse the balance amount of Rs. 1,18,22,02,436/- to the petitioners within three months and set aside the order dated September 14, 2019. There was no order as to costs, and urgent photostat copies of the order were to be provided upon compliance with requisite formalities.

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