TaxTMI 
TaxTMI 
2015 (5) TMI 1074
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....in SLP(C) 9578-9584/2009. 2. We have heard Dr. Abhishek Atrey, learned counsel for the appellant and Ms. N. Saikiya, learned counsel for the respondents. 3. The individual facts qua the respondents marginally vary and do not demand separate dilation in the face of the common issues that need to be addressed. Common arguments have also been advanced. The pleadings pertaining to Civil Appeal No. 3962/2011, Union of India and Ors. vs Shri Hanuman Industries & Anr. would, therefore, be outlined for the factual foundation of the debate. 3.1 In the year 1997, a policy decision was taken by the Planning and Development Department, Government of India for promotion of industries in the North East Region, during the period of 9th Plan by providing inter alia a package of incentives to create an entrepreneurial environment. With this objective, a scheme nomenclatured SPINE, as above, was launched by the Ministry of Development of North Eastern Region, North Eastern Council, Shilong (for short DONER). In terms of the scheme, The North Eastern Council (NEC) was to provide to the newly set up industries to the extent of 25 per cent of the project cost or Rs. 50 lacs, whichever was less as de....
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....dia and the NEC are before this Court. 7. At this juncture, the admitted facts need be noted. As per the procedure prescribed, the applications submitted by the respondents along with the accompanying documents were to be routed through the Department of Industries of the respective State Governments to be forwarded to the NEC by the Planning Department of the State concerned and that no proposal was to be received directly by the NEC. 8. While the said applications were thus pending a letter dated 05-02-2007 was issued by the Secretary, Ministry of Development of North Eastern Region etc. New Delhi, addressed to the Secretary North Eastern Council, Shilong referring to various correspondences mentioned therein pertaining to request for reports in respect of alleged financial irregularities in the disbursement of Grant-in-Aid under SPINE qua each unit for inquiry. It was underlined in the said letter that the report had been sought for to positively reach the issuing Ministry by 15-02-2007. It was in clear terms mentioned that in view of the pending inquiry and decisions in connection therewith, further sanction/disbursement of Grant-in-Aid particularly under SPINE should be sto....
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....that the Units concerned could take the benefit of Northeast Industrial and Investment Promotion Policy 2007(NEIIPP - 2007). It was assured that the relevant papers would be returned at a later date. The list appended amongst others contained the names of the respondent units involved in the present proceedings. It is thus apparent from the communication dated 01-10-2007 and the annexures thereto that at the time of the issuance thereof indicating the closure of SPINE, the proposals vis-à-vis these units had remained pending and were not processed as per the procedure prescribed. In the contemporary context, the media also flashed the decision of withdrawal of SPINE at or about the same time. Prior to these developments, the working group on NEC while deliberating upon the related issues for the 11th Five Year Plan held on 22-06-2006, however, had recommended continuance of SPINE with improved guidelines to block loopholes, increase opportunities for generating local employment and expedite industrialisation of the region. This recommendation, however, needless to mention, has to be construed in the backdrop of the decision for closure of SPINE as was taken and communicated ....
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....ly heard on the ground of delay and laches. Observing with reference to the relevant decisions of this Court that the benefit of a judicial verdict in a case cannot automatically be extended to another more particularly in the face of unexplained and/or unsatisfactory explanation of delay in between, the learned Single Judge declined the relief holding that the exercise of powers under Article 226 of the Constitution of India was primarily equitable in nature. According to the learned Single Judge, in the attendant facts and circumstances, the respondents were not only aware of the decision of the concerned authorities to wind up SPINE by refusing financial assistance thereunder as intimated by the letter dated 05-02-2007, it was held as well that the respondents without joining the writ petitioners in the earlier outing had deliberately chosen to await the outcome thereof and thus were really fence sitters to avail the benefit of a favourable verdict, if forthcoming. The learned Single Judge was of the view that the passive conduct of the respondents herein tantamounted to sleeping over their rights for over two years to wake from their feigned slumber after the decision of this ....
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....lier batch of writ petitions was replicated vis-à-vis the respondents. 12. In the backdrop of this factual matrix, Dr. Atrey the learned counsel for the appellants has insistently argued that it being apparent on a combined reading of the letters dated 05-02-2007, 20-3-2007 and 04-05-2010 that a conscious decision had been taken by the concerned authorities to discontinue SPINE with effect from 23-2-2007, the writ petitions of the respondents, who had admittedly not joined the earlier set of industrial units had been rightly rejected by the learned Single Judge on the ground of unexplained delay , laches and inaction on their part. Referring to the letter dated 04-05-2010 in particular, he has urged that it being evident therefrom that SPINE had been discontinued with effect from 23-02-2007, an advance indication to that effect being disclosed in the letter dated 05-02-2007 preceding thereto, and conveyed by the one dated 23-2-2007, it is apparent that the respondents herein had not approached the Guwahati High Court in time, to take a gambling chance later on and to cash upon any favourable verdict in the earlier litigation. As the approach of the respondents lack in bonaf....
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....e of the doctrine of promissory estoppel. According to the learned counsel, as others similarly placed with the respondents have been extended the benefits under the scheme, the denial to the respondents was discriminatory as well. The following decisions were relied upon to buttress the above assertions: AIR 1979 SCC 621 M/S Motilal Padampt Sugar Mills Co. -Vs- The State of Uttar Pradesh & Ors., (2004) 6 SCC 465 State of Punjab -Vs- Nestle India Ltd., (2006) 8 SCC 702 MRF Limited Vs Assistant Commissioner Sales Tax., (2004) 1 SCC 139 State of Orissa & Ors Vs Mangalam Timber Products Limited., (2009) 6 SCC 791 Basanti Prasad Vs Chairman, Bihar School Examination Boards & Ors., (2010) 6 SCC 786 Improvement Trust, Ludhiana VS. Ujagar Singh & Ors., (2013) 12 SCC 649 Esha Bhattacharjee Vs. Raghunathpur Nafar Academy & Ors. 14. The pleaded facts and the competing arguments have received our due attention. To start with, it is not disputed that the writ petitioners in the earlier round of adjudication were applicants under SPINE alike the respondents herein. They being appalled by the delay in the grant of their receivables thereunder and being faced with the letter dated 05-02-2007 wh....
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....nbsp; 14.2 The letters dated 04-08-2006, 04-09-2007 and 12-09-2007 to which our attention has been drawn in course of the arguments, suffice it to mention, do not contain any assurance on the part of the implementing authorities promising grant of the subsidy allowance under the scheme or any other incentive to the respondent. No reference has been made before us of any other document qua the other respondents. We are thus constrained to hold that there was no promise on the part of the public functionaries in charge of implementation of SPINE to the respondents to extend benefits thereunder, inspite of the decision to withdraw or close the same with effect from 23-02-2007. 15. In M/s Motilal Padampt Sugar Mills Company supra, this Court, on an exhaustive survey of the law pertaining to the doctrine of promissory estoppel held that the same was an equitable doctrine that would yield when equity so required. While propounding that the same had been evolved to avoid injustice where it is demonstrated that a party acting on the words or conduct of another, amounting to clear and unequivocal promise and intended to create legal relations or effect legal relationships to arise in the ....