Commissioner of Industries, Jaipur v. State of Rajasthan
2017-08-01
GOVIND MATHUR, VINIT KUMAR MATHUR
body2017
DigiLaw.ai
ORDER : 1. This Misc. Application is preferred in D.B. Civil Special Appeal (W) No. 560/2004 to have a direction for the respondents to disburse the amount of interest @ 18% per annum from 16.11.1999 to 31.3.2016 for the delayed payment under the "State Capital Investment Subsidy Scheme for New Industries-1990". 2. Succinctly the facts of the case are that the applicant, an entrepreneur, submitted an application to have subsidy as per the Scheme of 1990. Being erroneously denied, the applicant preferred a petition for writ i.e. S.B. Civil Writ Petition No. 3031/2002 (Metro Cement Ltd. v. The Commissioner of Industries & Ors.) before Single Bench of this Court, that came to be accepted on 16.2.2004 with a direction to release subsidy to the petitioner-Company that was allowed through the sanction letter dated 16.11.1999. 3. An appeal giving challenge to the judgment dated 16.2.2004 was preferred before this Court by the Commissioner of Industries, Jaipur; State of Rajasthan and the Joint Director, District Industries Centre, Jodhpur. The appeal aforesaid came to be dismissed by Division Bench on dated 18.2.2014 for the want of prosecution. Prior to that, on 12.8.2004 effect and operation of the directions given by the learned Single Bench was stayed but that order was modified on 20.12.2004 in the terms that "The ad interim order dated 12.08.2004 is confirmed with the modification that in case the appeal fails, the respondent will be entitled to get the amount of subsidy along with such rate of interest as the Court may decide at the time of deciding the appeal". 4. As already stated the appeal came to be dismissed for the want of prosecution on 18.2.2014 and thereafter an application was preferred for restoration of the same but that too came to be dismissed on 13.5.2015 being barred by limitation from 109 days. While dismissing the application it was also observed that the delay has not at all been explained and no reason too was given as to why none was present to prosecute the appeal, when the matter was called. After dismissal of the appeal, the appellant-respondent disbursed the subsidy on 31.3.2016, but without interest. By the instant application the applicant-petitioner has claimed for a direction to have interest by settling an appropriate rate thereof. 5.
After dismissal of the appeal, the appellant-respondent disbursed the subsidy on 31.3.2016, but without interest. By the instant application the applicant-petitioner has claimed for a direction to have interest by settling an appropriate rate thereof. 5. Learned Additional Advocate General has opposed the application with assertion that the learned Single Bench did not allow any interest to the applicant-petitioner and, therefore, on dismissal of the appeal, may that be for the want of prosecution, nothing can be given to the applicant beyond the directions given in the judgment accepting the petition for writ. We do not find any merit with the defence advanced. 6. The learned Single Bench in quite specific terms declared the non-payment of subsidy to the applicant-petitioner erroneous and, therefore, a direction was given to release the same. The appellant instead of releasing the subsidy as directed preferred appeal wherein an interim order was passed subject to a condition with regard to payment of interest in the event of failure of the appeal. It is not at all in dispute that the appeal ultimately failed and, therefore, the condition placed on 20.12.2004 with regard to grant of interest is required to be operated. On operation of the condition aforesaid the applicant is certainly entitled to have interest on delayed disbursement of the subsidy amount. At this juncture we would like to mention that the subsidy is a concession, therefore, in normal course interest thereon cannot be claimed but in the instant case the subsidy after declaration of entitlement of the petitioner by learned Single Bench and further placing the condition for grant of interest became a property of the applicant-petitioner and, as such, the interest deserves to be given. Accordingly, we declare the petitioner entitled to have interest on delayed payment of subsidy as per the Scheme of 1990. The entitlement of the applicant-petitioner shall be from the date of acceptance of the petition for writ i.e. 16.2.2004 to 31.3.2016, the day on which subsidy was disbursed. The interest is required to be computed @ 9% per annum. 7. The misc. application stands disposed of accordingly.