JUDGMENT 1. - In these three writ petitions a common question has been raised, therefore, they are decided by one order. It has been prayed in these petitions that the order dated January 29, 1990 (Anx. 7 passed by General Manager, District Industry Centure, Alwar, by which, the provisional registration certificate for establishment of small scale industry granted to each one of the petitioners, has been cancelled be quashed. 2. The dates and the numbers of annexures are mentioned as in WP No. 883/1990. Briefly, it has been stated by the petitioners that Government of Rajasthan with a view to develop Bhiwadi District Alwar, offered concessions to establish small scale industries at Bhiwadi, and established Officer of the District Industries Officer (for brevity 'D.I.O.) there. In order to receive applications, the D.I.O. used to go to Delhi every second Friday in a month. Keeping in view the concessions offered the petitioners approached the D.I.O. Bhiwadi on December 11,1989 gave an application form alongwith project report duly filled, for grant of provisional Registration Certificate to establish a small scale industry at Bhiwadi. The D.I.O. Bhiwadi issued a provisional Registration Certificate (Annexure-1) as small scale unit to each of the petitioners. They deposited the necessary amount for application, issue of certificate and also invested Rs. 2000/- for the purpose of National Saving Certificate. This certificate is issued to enable the petitioner to obtain all facilities/clearance for its setting up an industry. It is valid for one year only and within this period all steps have to be taken for establishing small scale industries. It is made clear in clause Nos. 6 & 7 of Annexure-1 that it shall be responsibility of the applicant to obtain all necessary facilities e.g. Finance, accommodation, machinery, approval/permission. It is also mentioned that the applicant will start taking effective steps to start the unit immediately after issuance of provisional registration certificate (for brevity 'the certificate'). The certificate of provisional registration certificate (for brevity 'the certificate'). The certificate was issued for manufacturing Ice-cream, Ghee, Butter and Skimmed Milk Power. However, vide Annexure-7 dated January 29, 1990 the General Manager, District Industries Centre, Alwar respondent No. 3 issued an order whereby the certificate issued by D.I.O. Bhiwadi was cancelled. Hence these petitions. 3.
The certificate of provisional registration certificate (for brevity 'the certificate'). The certificate was issued for manufacturing Ice-cream, Ghee, Butter and Skimmed Milk Power. However, vide Annexure-7 dated January 29, 1990 the General Manager, District Industries Centre, Alwar respondent No. 3 issued an order whereby the certificate issued by D.I.O. Bhiwadi was cancelled. Hence these petitions. 3. It is submitted by Shri Paras Kuhad & Shri Alok Sharma, learned Counsel that soon after grant of certificate Annexure-1, the petitioners made heavy investments as mentioned in each of the petitions, since every thing had to be completed within period of 12 months and industries had to be established failing which the certificate was liable to be cancelled. It is pointed out that petitioner in Petition No. 883/90 entered into transaction for purchase of two different units at Bhiwadi, which were at the relevant time auctioned by R.F.C. The one unit was M/s Esso Gas Product, for which, the petitioner had given highest bid for Rs. 9 lakhs & deposited Rs. 45000/- on December 21,1989 as earnest money (Anx. 2). Petitioner also took over M/s Pee Pee Cable & Conductor Industries (P) Ltd., and purchased its share capital of approximately Rs. 6 lakhs. Petitioner also gave guarantee to State Bank of India for approximately Rs. 7 lakhs being the amount of secured loan. He also paid a sum of Rs. 415000/- to the promoters or he said company towards settlement of the unsecured loan of the said company. Petitioner also advanced a sum of Rs. 3,17,000/- to M/s Kristam Engineers Pvt. Ltd. for the puchase of plant & machinery. The relevant annexures are Nos. 3 & 4 Photostat copy of the cheque issued is Annexure-5 and receipt given to petitioner is Annxure-6. It is further submitted that the dectrine of promisory estoppel will be applicable to these petitioners since they acted on the assurances given by the respondents and started making investment only after certificate was issued to each of the petitioners. Therefore, respondents have no authority to cancell the P.R. certificate more so when no opportunity of hearing was given to the petitioner. It is also submitted that provisions of Industries Development and Regulation) Act, 1951 (for brevity 'the Act, 1951') are not applicable to the products regarding which certificate Anx. 1 was granted to the petitioners as mentioned in Annexure-7, the cancellation order.
It is also submitted that provisions of Industries Development and Regulation) Act, 1951 (for brevity 'the Act, 1951') are not applicable to the products regarding which certificate Anx. 1 was granted to the petitioners as mentioned in Annexure-7, the cancellation order. It is submitted that the unit of the petitioners is not covered by the definition of 'factory' as defined in Sub-clause (c) of Section 3 of the Act, 1951. This Act provides for Regulation of scheduled industries. It is pointed out that in the first scheduled of Act, 1951 Serial No. 21 is regarding Food-processing industries, which mentions milk-foods & malted foods, apart from three other items, which are not relevant for the purposes of these petitions. It is contended that none of the petitioners are to manufacture milk foods or malted foods. It is, therefore, submitted that respondent No. 3 firstly had no authority to cancel the provisions of the Act, 1951. 4. It is submitted by Mr. B.K. Sharma, learned Additional Government Advocate that ? District Industries Officer, Bhiwadi exceeded his jurisdiction and had no authority to issue certificate regarding such industrial undertaking which is mentioned in first schedule of Act, 1951. It is also submitted that even if the small scale industries to be established by the petitioners are not convered by Section 11, 11-A or Section 13 of the Act, 1951, but are covered by Section 2 of the Act, 1951, which provides regarding control in the public interest by the union regarding industries specified in the first scheduled. It is submitted that the products regarding which certificate has been issued to the petitioners are covered by milk foods or malted foods, which are controlled industries and can be established only after the licence is granted by the Union Government. It is pointed out that as provided under Section 18- G the Regulation of scheduled industries is essential to control supply, distribution and price etc. of certain articles. 5. I have heard both the parties and gone through the documents on record. None present for Union of India inspite of notice. 6. It is clear from the facts stated above that respondents wanted to develop Bhiwadi as industrial area and offered certain concessions/facilities to the enterprenurs who wanted to establish small scale industries there. The certificate is issued only by the District Industries Officer, Bhiwadi. In the said certificate (Anx.
None present for Union of India inspite of notice. 6. It is clear from the facts stated above that respondents wanted to develop Bhiwadi as industrial area and offered certain concessions/facilities to the enterprenurs who wanted to establish small scale industries there. The certificate is issued only by the District Industries Officer, Bhiwadi. In the said certificate (Anx. I) certain terms & conditions have been mentioned, which are binding upon the persons in whose favour such certificate is granted, It castes the duty upon such person to arrange for the finance, accommodation, machinery & plant and all other permissions etc. from their technical authority and to see that the industry starts functioning within a period of 12 months, failing which the certificate is liable to be cancelled. Therefore it was only expected that petitioner will act with speeds they have done. It may be pointed out that no show cause notice whatsoever was issued to any of the petitioners before cancelling the certificate (Anx. 2) issued to them. The petitioner in Petition No. 883/90 as already stated above, has made heavy investment after the P.R. certificate (Anx. 1) was granted to him, In Petition No. 844/90 also heavy investment to the tune of several lakhs of rupees was made soon after the issuance (Anx. 1) as mentioned in paras 9 and 10 of the petition. In petition No. 1359/90 as mentioned in paras 12 and 13 of the petition investments amounting to several lakhs has been made. All these investments have been made before the order of cancellation (Annexure-7) was received by the petitioners. It can be said that these investments were made by the petitioners keeping in view the issuance of certificate (Anx 1) and the conditions laid down therein and to see that the petitioners are able to established their small scale industries in time to take advantage of concessions effored by the respondents. The Government, therefore, cannot unilaterally revoke the benefits, which have been granted by it to the petitioners. The Apex Court in Motilal Padampat Sugar Mills Co.
The Government, therefore, cannot unilaterally revoke the benefits, which have been granted by it to the petitioners. The Apex Court in Motilal Padampat Sugar Mills Co. Ltd. v. The State of Uttar Pradesh and Ors., AIR 1979 SC 621 clarified the meaning of doctrine of promissory estoppel and stated that "the true principle of promissory estoppel seems to be that where one party has by his words or conduct made to the other a clear and unequivocal promise which is intended to certain legal relations or effect a legal relationship to arise in the future, knowing or intending that it would be acted upon by the other party to whom the promise is made, and it is in fact so acted upon the promise would be binding on the party making it and he would not be entitled to go back upon it, if it would be inequitable to allow him to do so.... "Therefore, in the petitions under consideration, it is clear from the facts and documents mentioned above that after issuing of certificate (Anx. 1) so each of the petitioners started to act swiftly to discharge their obligations as contained in Annexure-1 and made heavy investment, therefore, doctrine of promissory estopped is fully applicable and the respondents cannot now go back upon the promise made. 7. During the course of arguments it was rightly pointed out by the learned Counsel for the petitioners that the small scale industrial unhit to be established are not covered by definition of 'factory' as defined in Clause (8) of Section 3 of the Act, 1951 and gave out that the petitioners are willing to give an undertaking that less than 50 persons would be employed in the industries to be established. In fact, it was pointed out, that the number of persons will be employed much less since it is an small scale industrial unit and huge over head expenses cannot be afforded by petitioners.1 also do not find any force in contention raised on behalf of the respondents that the District Industries Officer, Bhiwadi exceeded his powers in issuing provisional certificate to the petitioners. In such documents have been placed on record to verify this allegation. Evidently it is only the District Industries Officers, who is entitled to issue such certificates which he had been doing regularly.
In such documents have been placed on record to verify this allegation. Evidently it is only the District Industries Officers, who is entitled to issue such certificates which he had been doing regularly. So far as the provisions of Act, 1951 are concerned Section 2 is only regarding declaration as to the expediency of control by Union. This section only indicates why this Act was enacted. Section 10 of Chapter-Ill is regarding registration of existing industrial undertakings. Section 11 provides for licensee for producing or manufacturing for new articles. Chapter-Ill deals with Regulation of Scheduled Industries. In the first schedule, item No. 27 is regarding food-processing industries, it mean following items: (1) Canned Fruits and fruit products; (2) Milk-foods (3) Malted foods (4) Flour (5) Other processed foods Thus it can be said that only such industries which produced any of the items mentioned above can be said to be scheduled industries. The petitioners are not manufacturing milk-foods or malted foods. Milk foods or Malted foods are such products, in which milk or malt is the base, to certain other additions are also made to make it (malt food or malted food). For instance, baby milk foods are produced and sold in market for feeding newly born babies. The contains of such item is not only milk but after several additions of other items it is converted into milk food and when give his complete food for the child. Regarding cheese, which is also made from milk, it cannot be said to be milk food at by any stretch of imagination. It was given out by Shri Kuhad, learned Counsel that petitions No. 883/90 & 844/90 will be specified to produce above 4 items and cheese, Paneer which are not covered by definition of milk-food malted food. In petition No. 1359/90 the items for which licence of manufacturing was given in provisional registration certificate are pasteurised milk, Ghee, Cheese, Yogurt, Butter, Ice Cream skimmed milk powder. The Learned Counsel given out that we are satisfied to manufacture only these items, which are not covered by definition of milk food or malted food. It was also pointed out by learned Counsel that now the whole policy regarding issuance of licence has been changed by Government of India and only 18 industries have been specified, for which, licence will be required.
It was also pointed out by learned Counsel that now the whole policy regarding issuance of licence has been changed by Government of India and only 18 industries have been specified, for which, licence will be required. However no judicial notice can be taken of such announcement unless the necessary follow-up action by way of amending necessary provisions or issuing notification is taken. I am of the considered opinion that none of these items are covered by definition of milk food or malted food. 8. In the result, all the writ petitions are allowed and order dated January 29, 1990 (Annexure-7) in Petition No. 883/90 which has also been challenged in other petition is quashed and set aside. The petitioners will be entitled to establish a small scale industry in accordance with the terms & conditions laid down in the provisional Registration certificate issued to each of the petitioners by the District Industries Officer, Bhiwadi. 9. The petitions are allowed as above with no order as to costs.Writ Allowed. *******