Patna High Court
Nalanda Rice Mills L L P vs The State Of Bihar And Ors on 16 August, 2023
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.12208 of 2016
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1. M/s Shree Mahadevji Rice Mill Private Limited and Anr situated at and P.O.
- Nokha, P.S. - Nokha, District - Rohtas.
2. Chandan Rauniyar S/o - Birendra Prasad Rauniyar resident of Village and
Post - Nokha, P.S. - Nokha, District - Rohtas.
... ... Petitioner/s
Versus
1. The State Of Bihar
2. The Principal Secretary, Industry Department, Government of Bihar, Patna.
3. The Director, Food Processing, Department of Industries, Government of
Bihar, Patna.
4. The Director, Techinical Development, Department of Industries,
Government of Bihar, Patna.
5. The Director, Food Processing Directorate, Industry Department, Bihar,
Patna.
6. The Deputy Director, Food Processing Directorate, Industry Department,
Bihar, Patna.
7. The Industrial Department Commissioner, Industry Department, Bihar,
Patna.
... ... Respondent/s
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with
Civil Writ Jurisdiction Case No. 5012 of 2017
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Nalanda Rice Mills L L P Son of Sri Mathura Prasad resident of E - 57,
P.C.Colony, P.S. - Kankarbagh, District - Patna.
... ... Petitioner/s
Versus
1. The State Of Bihar
2. The Principal Secretary, Industry Department, Government of Bihar, Patna.
3. The Director, Food Processing Department of Industries, Government of
Bihar, Patna.
4. The Director, Technical Development, Department of Industries,
Government of Bihar, Patna.
5. The Director, Food Processing Directorate, Industry Department, Bihar,
Patna.
6. The Deputy Director, Food Processing Directorate, Industry Department,
Bihar, Patna.
7. The Industrial Department Commissioner, Industry Department, Bihar,
Patna.
... ... Respondent/s
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
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with
Civil Writ Jurisdiction Case No. 9026 of 2017
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M/s Enaviya Food and Beverage Pvt. Ltd. son of Mr. Jainendra Kumar,
Resident of Mohalla- Kamruddinganj, P.S.- Laheri, District- Nalanda.
... ... Petitioner/s
Versus
1. The State Of Bihar
2. The Director, Food Processing, Government of Bihar, Patna.
3. The Director Industries, Government of Bihar, Patna.
4. The State Investment Promotion Board, Bihar, Patna.
5. The Regional Manager, Union Bank of India, Patna Region, Patna.
6. The Branch Manager, Union Bank of India, Kankarbagh Main Road,
Patna,Bihar.
... ... Respondent/s
======================================================
with
Civil Writ Jurisdiction Case No. 9297 of 2021
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M/s Sharde Rice Mill, Bhojpur through its Proprietor, Akhilesh Kumar
Pandey, Male aged about 39 Years, Son of Satya Narayn Pandey resident of
Village- Bharsara, P.S.-Jagdishpur, District-Bhojpur.
... ... Petitioner/s
Versus
1. The State of Bihar through Chief Secretay, Government of Bihar, Patna.
2. The Principal Secretary, Industry Department, Government of BIhar, Patna.
3. The Director, Food Processing, Departmetn of Industries, Government of
Bihar, Patna.
4. The Director, Technical Development, Department of Industries,
Government of Bihar, Patna.
5. The Director, Food Processing Directorate, Industry Department, Bihar,
Patna.
6. The Deputy Director, Food Processing Directorate, Industry Department,
Bihar, Patna.
7. The Industrial Department Commissioner, Industry Department, Bihar,
Patna.
... ... Respondent/s
======================================================
Appearance :
(In Civil Writ Jurisdiction Case No. 12208 of 2016)
For the Petitioner/s : Mr. Shashi Bhushan Kumar, Adv.
: Mrs. Arti Kumari, Adv.
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
For the Respondent/s : Mr. Shailendra Kr. Dwivedi, AC to AAG-12
(In Civil Writ Jurisdiction Case No. 5012 of 2017)
For the Petitioner/s : Mr. Shashi Bhushan Kumar, Adv.
For the Respondent/s : Mr. Abbas Haider-Sc6
(In Civil Writ Jurisdiction Case No. 9026 of 2017)
For the Petitioner/s : Mr. Mrigank Mauli, Sr. Adv.
: Mr. Prince Kumar Mishra, Adv.
: Mr. Shashi Bhushan Kumar, Adv.
For the Respondent/s : Mr. Yogendra Pd. Sinha, AAG-7
: Mr. Rajeev Kumar Sinha, AC to AAG7
For Respondent Bank : Mr. Kumar Alok, Adv.
(In Civil Writ Jurisdiction Case No. 9297 of 2021)
For the Petitioner/s : Mr. Shashi Bhushan Kumar, Adv.
: Mrs. Arti Kumari, Adv.
For the Respondent/s : Mr. Yogendra Pd. Sinha, AAG-7
: Mr. Rajeev Kumar Sinha, AC to AAG7
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL JUDGMENT
Date : 16-08-2023
1. Heard the learned counsels for the parties.
2. CWJC No. 12208 of 2016 has been filed for seeking
the following reliefs:
"That the present application is
being filed for issuance of appropriate
writ/writs in the nature of mandamus directing
the respondent authorities to release grant of
Rs. 254.98 lacs i.e. 35% of total project cost in
terms of scheme of Integrated Development of
Food Processing Sector enunciated by
Industries Department, Government of Bihar
for establishment and promotion of industrial
units and for any other relief or reliefs as the
petitioner may be found to be entitled in the
facts and circumstances of the case."
3. CWJC No. 5012 of 2017 has been filed for seeking
the following reliefs:
"That the present application is
being filed for issuance of appropriate
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
writ/writs in the nature of mandamus directing
the respondent authorities to release grant of
Rs. 197.63 lacs i.e. 35% of total project cost in
terms of scheme of Integrated Development of
Food Processing Sector enunciated by
Industries Department, Government of Bihar
for establishment and promotion of industrial
units and for any other relief or reliefs as the
petitioner may be found to be entitled in the
facts and circumstances of the case."
4. CWJC No. 9026 of 2017 has been filed for seeking
the following reliefs:
"1. That by way of filing this writ
petition the Petitioner craves the indulgence of
this Hon'ble Court for grant of the following
reliefs:-
a) For issuance of order/orders,
direction/directions or writ/writs in the nature
of mandamus directing the respondent
authorities to grant the subsidy to the
Petitioner Company in terms of Industrial
Incentive Policy-2011 and Under the Scheme
for Integrated Development of Food
Processing Sector 2008 as amended vide Food
Processing Policy (Amendment) 2014-15.
b) For issuance of an order/orders,
direction/directions or writ/writs in the nature
of mandamus directing the respondent
authorities to hold the Project Approval and
Monitoring Committee (PAMC) meeting and
sanction the subsidy in terms of the policy of
the government.
c) For any other relief which the
Petitioner may be entitle."
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
5. CWJC No. 9297 of 2021 has been filed for seeking
the following reliefs:
"That the present application is
being filed for issuance of appropriate
writ/writs in the nature of mandamus directing
the respondent authorities to release grant of
Rs. 81.00 lacs i.e. 35% of total project cost in
terms of scheme of Integrated Development of
Food Processing Sector enunciated by
Industries Department, Government of Bihar
for establishment and promotion of industrial
units and for any other relief or reliefs as the
petitioner may be found to be entitled in the
facts and circumstances of the case."
6. Learned counsel for the petitioners have stated that
the petitioners basing on the policy decision taken by the
Government of Bihar, namely, Integrated Development of Food
Processing Sector, 2008 vide Annexure-2 of CWJC No. 12208 of
2016, 5012 of 2017 and 9297 of 2021 and Annexure-P/2 of CWJC
No. 9026 of 2017 have established Units. The necessary approval
has been given by the State Investment Promotion Board
(hereinafter referred to as "the S.I.P.B.") on the application made
by the petitioners on various dates i.e. 05.08.2013 (CWJC No.
12208 of 2016), 29.01.2015 (CWJC No. 5012 of 2017),
05.08.2015 (CWJC No. 9026 of 2017), 11.12.2014 (CWJC No.
9297 of 2021) but the authority concerned without taking into
consideration the above has passed the impugned order.
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
7. Learned counsel for the petitioners has stated that
the authority concerned without taking into consideration the
above approval given by the S.I.P.B. has rejected the case of the
petitioners on the ground that the proposals have not been
approved by the concerned Chief Minister.
8. Learned counsel for the petitioners has stated that
as per the new policy of the Government of Bihar the approval of
Hon'ble the Chief Minister is necessary but in so far as the
petitioners' case is concerned, the same falls under the old policy
of the year, 2008 for which the approval of Hon'ble the Chief
Minister is not necessary and the approval of the S.I.P.B. is
sufficient and same has been given by the said authority.
9. Learned counsel for the petitioners has relied on the
judgment passed by a Division Bench of this Hon'ble Court in
C.W.J.C. No. 4051 of 2021 dated 10.08.2022 along with its
analogous case, wherein this Hon'ble Court while dealing with the
similar issue as in the present case has allowed the said writ
petition and the S.L.P. filed against the said order has also been
dismissed by the Hon'ble Supreme Court.
10. Learned counsel for the petitioners has taken this
Court through the order passed by this Hon'ble Court in C.W.J.C.
No. 4051 of 2021 along with its analogous case dated 10.08.2022
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
most specifically the issue that was framed by the Division Bench
to buttress his case and prayed this Court to allow the writ
petitions.
11. Per contra, learned counsel appearing on behalf of
the respondents while trying to defend the order passed by the
authority which is impugned in the present writ petition has not
disputed the judgement of this Hon'ble Court passed in C.W.J.C.
No. 4051 of 2021 (supra) and subsequent dismissal of the S.L.P.
The learned counsel has also not denied the fact that the industries
of the petitioners were started before the advent of 2016 policy and
that the petitioners have applied for approval, which was granted
in the years i.e. 2013 (CWJC No. 12208 of 2016), 2015 (CWJC
No. 5012 of 2017), 2015 (CWJC No. 9026 of 2017), 2014 (CWJC
No. 9297 of 2021) itself and necessary approvals were also
granted by the S.I.P.B under the old policy.
12. On perusal of the impugned order, it shows that the
authority concerned has rejected the case of the petitioners solely
on the ground that the 2016 policy requires the approval of
Hon'ble the Chief Minister and that there was no approval of
Hon'ble the Chief Minister so far as the petitioners' industries are
concerned. The authority has not bothered to verify as to when the
industry has been started, admittedly in the present case the
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
S.I.P.B. approval was of the year 2013 which is much before the
2016 policy was introduced.
13. The Division Bench of this Hon'ble Court in
paragraphs no. 30(v), 47, 50, 51 & 52 of the judgement dated
10.08.2022 passed in C.W.J.C. No. 4051 of 2021 (M/s Leoline
Foods Private Limited Vs. The State of Bihar & Ors.) along with
its analogous case has held as follows:-
30(v) "Whether it is permissible for the
State of Bihar to deny the petitioner the benefits under
Bihar Industrial Incentive Policy, 2011 on the plea that
they failed to process the papers for obtaining the
necessary approval of the Chief Minister to the
Minister of Industries".
(47) "In view of this settled legal
principle reiterated by the Supreme Court as noted
above, we are of the considered opinion that it was
impermissible for the Respondent-State of Bihar to
deny the original claims of the petitioner in terms of
subsidies/incentives under Bihar Industrial Incentive
Policy, 2011 on the basis of pendency of the matter
before it. All such grounds taken on behalf of the State
of Bihar for denying the petitioner's claim are hereby
rejected".
(50) The approach of the State
Respondents in denying the petitioner the benefit of
incentive/subsidy under Bihar Industrial Incentive
Policy, 2011, in the facts and circumstances noted
above, is wholly unjustified, arbitrary and hit by the
doctrine of promissory estoppel.
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
(51) Having stated thus, we revert to
answer the issues formulated in paragraph 30, which
are determined as under:
(i) The petitioner's unit is covered by the
Bihar Industrial Incentive Policy, 2011 read with the
Food Processing Scheme of the State Government
issued vide Memo No. 6699 dated 3.08.2008 and the
scheme for the integrated development of the food
processing sector;
(ii) and (iii) By operation of Clause 8 of
the Bihar Industrial Incentive Policy, 2016, the
incentives, which were available for the eligible units
under the Bihar Industrial Incentive Policy cannot be
taken away if such units had valid approval of the
S.I.P.B. and they came in commercial production by
31.03.2017.
(iv) The Division Bench decision in the
case of M/s Sunny Stars Hotels Pvt. Ltd. Cannot be
said to be inapplicable to the controversy at hand. The
stand which has been taken on behalf of the State of
Bihar that the approval granted by the S.I.P.B. was
conditional to denying the benefits of incentives/
subsidy /exemptions is untenable in the facts and
circumstances, as discussed hereinabove;
(v) The answer to the fifth issue framed in
paragraph 28 of the writ petition is negative. The State
Government cannot be permitted to derive advantage
of its own folly.
(52) In view of the aforesaid discussions in
our opinion, these applications deserve to be allowed
with a direction to the State Respondents to allow the
petitioner benefits of all the incentives under Bihar
Industrial Incentive Policy, 2011. We hold that the
petitioner is entitled to subsidy/incentives under Bihar
Industrial Incentive Policy, 2011. The respondents are
Patna High Court CWJC No.12208 of 2016 dt.16-08-2023
directed to ensure that the petitioner's actual
entitlements for grant of incentives/subsidies under
Bihar Industrial Incentive Policy, 2011 are considered,
determined and granted to it within a maximum period
of three months from the date of receipt/production of
a copy of this order."
14. The above judgement of this Hon'ble Court has
already been upheld by the Hon'ble Supreme Court and therefore
the decision of the Division Bench of this Court is not only
binding on this Court but also on the authority.
15. Having regard to the same, the writ petitions are
allowed setting aside the impugned order passed by the authority
concerned. The petitioners are entitled to subsidy/incentives under
Integrated Development of Food Processing Sector. The
respondents are directed to ensure that the petitioners' actual
entitlements for grant of incentives/subsidies under Integrated
Development of Food Processing Sector are considered,
determined and granted to it within a maximum period of three
months from the date of receipt/production of a copy of this order.
(A. Abhishek Reddy, J)
Ayush/-
AFR/NAFR NAFR
CAV DATE NA
Uploading Date 18.08.2023.
Transmission Date NA
