Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 15, Cited by 0]

Jharkhand High Court

Shri Rani Sati Foods And Grains Private ... vs Industry Department on 21 November, 2014

Author: Shree Chandrashekhar

Bench: Shree Chandrashekhar

                                              1

                   IN THE HIGH COURT OF JHARKHAND AT RANCHI                                  
                                     W.P. (C) No. 5948 of 2013
                                               ­­­­­­
                  Vaishnavi Ferro Tech (P) Limited                        ...  Petitioner (S)
                                               Versus
                  The State of Jharkhand through the Secretary, 
                  Department of Industries, Government of Jharkhand, 
                  Ranchi & Ors.                                           ... Respondent (S)
                                               With
                                   W.P. (C) No. 5436 of 2013
                                               ­­­­­­
                  Sri Rani Sati Foods & Grains Private Limited,
                  Ranchi through its Director                        ...       Petitioner (S)
                                               Versus
                  The State of Jharkhand through the Secretary, 
                  Department of Industries, Government of Jharkhand, 
                  Ranchi & Ors.                                  ...      Respondent (S)
                                               With
                                   W.P. (C) No. 5761 of 2013
                                               ­­­­­­
                  M/s Jharkhand Plastics (P), Ranchi 
                  through its Director                           ...        Petitioner (S)
                                               Versus
                  The State of Jharkhand through the Secretary, 
                  Department of Industries, Government of Jharkhand, 
                  Ranchi & Ors.                                  ...      Respondent (S)
                                               ­­­­­­­
            CORAM : HON'BLE MR. JUSTICE SHREE CHANDRASHEKHAR
                                                ­­­­­­       
                   For the Petitioner (S)     : Mr. Anil Kumar Sinha, Sr. Advocate
                                                   : Mr. Sumeet Gadodia, Advocate 
                                                 [in WP(C) No. 5948 of 2013]
                                               : Mr. Rajiv Ranjan, Advocate
                                                 Mr. Sumeet Gadodia, Advocate
                                                [WP(C) Nos. 5436/2013 & 5761/2013]   
              For the Respondent (S)   : Mr. Rajesh Shankar, G.A.
                                                [in WP(C) No. 5948 of 2013]
                                               : Mr. Jai Prakash, A.A.G
                                               Ms. Debolina Sen Hirani, J.C. to A.A.G.
                                               [WP(C) Nos. 5436/2013 & 5761/2013]
                                            ­­­­­­
              C.A.V. on 11/11/2014                    Pronounced on  21/11/2014
                                           
                            At   the   outset,   Mr.   Sumeet   Gadodia,   the   learned 
                                 2

counsel   appearing   for   the   petitioners   submitted   that,   "the 

determination of date of actual commercial production", is the 

main issue involved in all the writ petitions and therefore, all 

the writ petitions may be heard together.   With the consent of 

the counsel appearing for the respondent­State of Jharkhand, all 

the writ petitions were heard together and are disposed of by a 

common order.  

FACTS:
               W.P.(C) No. 5948 of 2013

2.            The   petitioner­Vaishnavi   Ferro   Tech   (P)   Limited 

intending   to   establish   Ingots   Plant   applied   for   electricity 

connection   for   30   HP   LT   IS   connection.   Vide   letter   dated 

11.02.2009

, it was sanctioned electricity connection and the HP  connection was started on 09.02.2011.   The General Manager,  District   Industries   Centre,   Hazaribagh,   on   the   basis   of   the  examination   of   papers   and   inspection   report   by   a   team   of  technical   officers   of   District   Industries   Centre,   Hazaribagh  concluded that, the Unit has gone into commercial production  on   15.02.2011.     Vide   letter   dated   22.07.2011,   the   petitioner  applied   for   capital   subsidy   of   Rs.   25   Lacs   and   the   General  Manager,   District   Industries   Centre,   Hazaribagh   vide   letter  dated 02.08.2011 recommended to the Director, Industries for  grant   of   incentive   of   Rs.   25   Lacs.     Thereafter,   the   petitioner  3 submitted application dated 13.09.2011 for interest subsidy for  Financial   Year,   2010­11   and   the   General   Manager,   District  Industries   Centre,   Hazaribagh   vide   letter   dated   24.10.2011  recommended   interest   subsidy   to   the   tune   of   Rs.   587467/­.  However,   vide   letter   dated   10.08.2013,   the  General   Manager,  District Industries Centre, Hazaribagh directed the petitioner to  submit   application   for   deciding   the   "date   of   commercial  production"   afresh.   The   petitioner   made   representation   on  29.08.2013   however,   vide   order   dated   26.03.2014   the  General   Manager,   District   Industries   Centre,   Hazaribagh  recalled/annulled letter dated 28.04.2011 whereby the "date of  commercial production" was fixed as 15.02.2011. FACTS:

  W.P.(C) No. 5436 of 2013

3. The   petitioner­M/s   Rani   Sati   Foods   and   Grains  Private Limited submitted statutory acknowledgment in terms  of   Section   8   of   the   Micro   Small   And   Medium   Enterprises  Development Act, 2006 (M.S.M.E.D., Act 2006) expressing its  intent to set up a Rice Mill at Ranchi.  The acknowledgment in  part   (I)   was   issued   to   the   petitioner   on   13.08.2009.     It   also  submitted   application   dated   19.08.2009   under   Water  (Prevention   and   Control   of   Pollution)   Act,   1974   and   Air  (Prevention   and   Control   of   Pollution)   Act,   1981.     The  4 petitioner­Industry   commenced   commercial   production   in   its  Rice Mills from 12.10.2010.   The petitioner was issued import  and export license on 26.08.2009, license under the Factories  Act,   1948   on   07.07.2010 and a  license  under  the  Jharkhand  Agricultural Produce Market Rules, 2000 on 07.10.2010.   The  electricity   connection   was   granted   and   electric   meter   was  installed on 20.07.2010. The petitioner­Industry had conducted  certain   trial   production   between   July­September,   2010.     The  Joint Capacity Assessment Report dated 01.07.2011 records the  date of commencement of production as 12.10.2010 and vide  letter   dated   22.03.2012   the   Director,   Industries   ordered  sanction of Rs. 599.39 Lacs as capital subsidy to the petitioner­ Industry.     In   the   meantime,   the   petitioner   had   submitted  application dated 14.03.2012 for fixing the "date of commercial  production"   and   the   General   Manager,   District   Industries  Centre, Ranchi vide certificate dated 20.06.2012 fixed the "date  of   commercial   production"   as   02.05.2011.     The   petitioner  objected   to   the   same   and   submitted   representation   dated  23.08.2012   to   the   Director,   Industries   who   treated   the  representation dated 23.08.2012 of the petitioner as an appeal  being  Appeal  Case  No. 06/UN  Misc (Hearing)  - 56 of  2012. 

Vide   memo   dated   06.05.2013,   the   letter   dated   20.06.2012  whereby   the   "date   of   commercial   production"   was   fixed   as  5 02.05.2011 was annulled and the matter was remanded to the  General Manager, District Industries Centre, Ranchi for deciding  the "date of commercial production" in the light of Jharkhand  Industrial Policy­2012. 

FACTS:

   W.P.(C) No. 5761 of 2013

4. The   petitioner­M/s   Jharkhand   Plastics   (P)   Limited  submitted  statutory acknowledgment  in  terms of Section  8 of  M.S.M.E.D,   Act   2006   and   it   also   applied   for   necessary  permission   under   Water   and   Air,   Act   on   22.02.2010.     It   was  granted license under the Factories Act on 29.06.2010 and the  electric meter was installed on 23.08.2010. The petitioner­Unit  commenced   commercial   production   of   plastic   chairs   from  21.10.2010.  The petitioner­Industry was given order for supply  of 2300 chairs vide letter dated 01.02.2011 which it did supply  and raised invoice dated 05.02.2011.   The acknowledgment in  part (II) under the M.S.M.E.D. Act, 2006 records the "date of  commercial   production"   as   21.10.2010.   The   application   for  grant   of   capital   subsidy   was   processed   by   the   State   Level  Committee   and   a   sum   of   Rs.   20   Lacs   was   sanctioned   to   the  petitioner­Unit   which   is   evident   from   letter   dated   23.03.2012  issued   by   the   respondent   no.   2.     The   Jharkhand   Pollution  Control   Board   issued  "consent   to  establish"  vide  memo  dated  6 16.06.2011   though,   the   application   was   submitted   on  22.02.2010 itself.   However, vide letter dated 20.06.2012, the  General   Manager,   District   Industries   Centre,   Ranchi   fixed   the  "date of commercial production" as 18.07.2011 against which  the petitioner submitted his representation dated 20.07.2012 to  the   Director,   Industries.     The   Director,   Industries   erroneously  treated   the   representation   dated   20.07.2012   as   appeal   and  initiated Appeal Case No.  06/UN Misc (Hearing) - 55 of 2012. 

Vide order dated 27.04.2013 the order passed by the General  Manager,   on   20.06.2012   fixing   the   "date   of   commercial  production" as 18.07.2011 was   set­aside and the matter was  remanded   to   him.   A  further  direction   has   been   issued   to   the  General   Manager,   District   Industries   Centre,   Ranchi   for   fixing  the "date of commercial production" in the light of Jharkhand  Industrial Policy­2012. 

5. The   respondent­State   of   Jharkhand   has   filed  counter­affidavit   in   all   the   matters   stating   that,   while  scrutinising various applications submitted for grant of subsidy,  it was found that many industries had started their operation  without   obtaining   mandatory   "consent   to   operate"   from   the  Jharkhand  State  Pollution Control Board.   The  Water­Act and  the Air­Act mandates that before an industry starts its operation,  it must have "consent to operate" order.  A "consent to operate"  7

order cannot be issued permitting an industry to operate from a  retrospective   date.   Clause   3   (1)   to   the   "consent   to   establish" 

clearly mandates that;

"The proponent shall obtained consent to operate   from   the   State   Pollution   Control   Board   under   Sections 25 and 26 of the Water (Prevention and   Control of Pollution) Act, 1974 and under Section   21 of the Air (Prevention and Control of Pollution)   Act, 1981 prior to commissioning of the plant".

6. The   petitioner­Unit   could   not   have   started   its  commercial production, prior to issue of "consent to operate".  The   Director,   Department   of   Industries,   in   view   of   the  instructions issued by the Secretary, Department of Industries,  directed   the   General   Manager,   District   Industries   Centre,  Hazaribagh to conduct necessary enquiry.   During the effective  period,   the   Jharkhand   Industrial   Policy­2012   was   inforce   and  therefore,   the   "date   of   commercial   production"   and   grant   of  Interest Subsidy have to be decided in the light of Jharkhand  Industrial Policy­2012.   The petitioners' unit are not permitted  in   law   to   start   commercial   production   before   obtaining   all  necessary statutory clearances.  The capital subsidy was wrongly  paid   to   the   industry   and   the   department   is   taking   steps   in  accordance with law to recover the said amount.  

Submissions of the learned counsel for the Parties

7. Mr.   Anil   Kumar   Sinha,   the   learned   Senior   counsel  8 appearing   in   W.P.(C)   No.   5948   of   2013   raised   the   following  contentions:

(i) Once   a   "certificate   of   commercial   production"   is  issued   by   the  General   Manager,   District   Industries   Centre,  Hazaribagh, it has to be taken as a conclusive proof of the "date  of actual commercial production" of   the   industry   and   on   the  basis   of   the   letter   of   "consent   to   operate"   issued   by   the  Jharkhand   State   Pollution   Control   Board,   the   "date   of   actual  commercial production" of the industry cannot be decided.
(ii)  In terms of Section 25 (7) of the Water (Prevention  and Control of Pollution) Act, 1974, the "consent to operate" is  deemed to be issued after lapse of four months from the date of  submission   of   the   application   seeking   grant   of   "consent   to  operate" and therefore, from such date the industry should be  deemed to have commenced its "actual commercial production". 
(iii)   Once   a   part   of   benefit   under   the   Jharkhand  Industrial   Policy­2001   is   granted   to   an   industry,   the  consequential benefit cannot be denied because the rights which  have already concretised  cannot be altered subsequently.  
(iv) The   provisions   of   the   Jharkhand   Industrial  Policy­ 2001 which manifests the decision of the Government of  Jharkhand cannot be altered or modified by the Secretary of the  Department of Industries.  
9
(v) In view of the collateral evidences produced by the  industry the "date of actual commercial production" claimed by  the   industry   cannot   be   doubted   and   in   the   absence   of   any  specific guidelines/circular for determining the "date of actual  commercial production", the claim of the industry, if supported  by documentary evidence, has to be accepted for deciding the  date of "actual commercial production".  

8. Per   contra   Mr.   Rajesh   Shankar,   the   learned  Government­Advocate   appearing   for   the   respondent­State   of  Jhakrhand has contended that in case of a dispute with respect  to the "date of actual commercial production", the decision of  the Director, Industries is final.   The certificate of "commercial  production" dated 28.04.2011 does not specifically record that  the   industry   has   commenced   "actual   commercial   production" 

from 15.02.2011.  The documents produced by the petitioner in  the present proceeding are contradicting each other and infact,  demonstrate   that   the   industry   did   not   commence   its   "actual  commercial   production"   with   effect   from   15.02.2011.   The  electricity   bills   produced   by   the   company   for   the   months   of  February, 2011 conclusively establish that the industry had not  started   its   "commercial   production"   with   effect   from  15.02.2011.   Before   an   industry   starts   its   "actual   commercial  production",   it   begins   with   trial   production   which   cannot   be  10 considered   "actual   commercial   production".   The   Jharkhand  Industrial   Policy­2001   as   well   as   the   Jharkhand   Industrial  Policy­2012   specifically   require   that   the   benefit   under   the  Industrial Policy can be granted only from the date of "actual  commercial   production"   and   since,   the   petitioner   started   its  commercial   production   only   after   01.04.2011,   the   Jharkhand  Industrial Policy­2012 is applicable in its case.   An industry is  required   to   submit   an   application   before   the   department   for  determining the "date of actual commercial production". Notices  were issued to the petitioner­company in this regard and it was  directed to produce documents however, the company did not  produce any material in support of its claim that the industry  has   commenced   "actual   commercial   production"   with   effect  from   15.02.2011.   An   industry   is   not   supposed   to   commence  production  without valid licenses and clearances. It  is further  submitted that the deeming provision under Section 25 (7) of  the   Water   (Prevention   and   Control   of   Pollution)   Act,   1974  cannot   be   considered   for   deciding   the   "actual   date   of  commercial production".  Moreover, the provision under Section  25 of the Water (Prevention and Control of Pollution) Act, 1974  pre­supposes an application complete in all respects whereas, it  appears that vide letter dated 01.04.2011 the petitioner­industry  was   directed   to   comply   with   certain   conditions   and   thus,   its  11 application   was   not   complete   in   all   respect.   Three   of   the  conditions  in   letter   dated   01.04.2011   are  mentioned   in   letter  dated 19.05.2011 whereby "consent to operate" was granted to  the industry and thus, the deeming provision is not applicable in  this   case   and   it   cannot   be   contended   that   the   industry   could  have commenced its production from 15.02.2011. 

9. Mr. Rajiv Ranjan, the learned counsel appearing in  W.P.(C)   No.   5436   of   2013   and   5761   of   2013   adopted   the  argument   of   Mr.   Anil   Kumar   Sinha,   Senior   Advocate   and  submitted that a subsequent change in the Government Policy  cannot   be   made   effective   with   a   retrospective   date.     Once  benefit   under   the   Jharkhand   Industrial   Policy­2001   has   been  granted   to   the   industry,   while   processing   the   claim   for  consequential benefit, the provisions of Industrial Policy, 2012  cannot   be   applied   by   the   Department.   The   grant   of  certificate/clearance from the State Pollution Control Board is a  different aspect altogether and it cannot be assumed that before  the "consent to operate" is granted to the industry, it was not in  operation.   It   is   common   knowledge   that   grant   of  certificate/clearance   from   the   Pollution   Control   Board   takes  longer time  and an industry which has invested huge sum of  money   cannot   wait   to   start   its   production   till   the   requisite  certificate/clearance is granted by the Pollution Control Board.  12 There is no specific policy, on the basis of which the "date of  actual commercial Production" has to be decided and therefore,  the claim of the industry, if corroborated by contemporaneous  documents, must be accepted.  

10. It is submitted that in case of M/s Jharkhand Plastics  (P)   Limited   it   is   a   matter   of   record   that   vide   letter   dated  01.02.2011,   the   company   was   given   contract   for   supply   of  plastic chairs which it did supply however, the respondents have  declined   to   recognise   the   "date   of   actual   commercial  production"   as   claimed   by   the   industry.     The   "consent   to  operate"   dated   26.11.2011   records   that   the   petitioner   had  submitted its application way back on 18.07.2011 itself and the  Joint Capacity Assessment Report specifically records the date of  commencement   of   production   as   21.10.2010   and   therefore,  there   is   no   reason   to   dispute   the   "date   of   actual   commercial  production"   of   the   petitioner­company   with   effect   from  21.10.2010.  

11.  As against the above contention, Mr. Jai Prakash, the  learned Additional Advocate­General, appearing for the State of  Jharkhand   reiterated   the   stand   taken   in   the   counter­affidavit  which   is   similar   in   all   the   writ   petitions.     He   submits   that,  though M/s Plastic (P) Limited has stated that it has supplied  plastic chairs however, it  has not produced any evidence  that  13 those   chairs   were   manufactured   in   its   unit.     The   learned  Additional   Advocate­General   has   re­affirmed   the   argument   of  Mr.   Rajesh   Shankar,   the   learned   Government­Advocate   who  appeared in in W.P.(C) No. 5948 of 2013. 

DISCUSSIONS:

12. The   resolution   of   the   Government   of   Jharkhand  pursuant   to   which   Jharkhand   Industrial   Policy­2001   was  formulated indicates that the object was to optimally utilise the  available   resources   of   the   State   in   a   planned   manner   and   to  accelerate   the   industrial   development   of   the   State.     The  introduction to the Jharkhand Industrial Policy­2001 states that,  "the State is committed to create an environment conducive to  growth   of   industries   in   the   State   and   it   is   determined   to  encourage investment in the industries based upon the State's  agro­climatic,   mineral   and   manpower   resources   as   also   in  development   of   infrastructure.   It   is   indicated   that   the  Government  is  committed to create a friendly atmosphere  for  industrial   growth   in   the   State.     The   Industrial   Policy   aims   at  making   Jharkhand   one   of   the   most   preferred   destination   for  investment,   both   from   inside   and   outside   the   country.     The  Jharkhand Industrial Policy­2001 has also addressed the issue of  "commercial tax reforms".  

13. The   Jharkhand   Industrial   Policy­2001   recognises   a  14 dire   need   for   the   new   born   State   of   Jharkhand   to   accelerate  industrialisation   in   the   background   of   lost   opportunities   and  non realisation of its industrial potential.  Under Clause 29.2 the  following incentives have been offered to a unit:

1. "Capital Investiment Incentive 
2. Captive Power Generating Subsidy 
3. Interest Subsidy
4. Stamp Duty and Registration
5. Employment Generation Based Incentives
6. Special Incentives for Thrust Areas/EOU        and  SC/ST/Women/Ex­Servicement   and   Handicapped Persons
7. Feasibility  Study­Project   Report   Cost   Reimbursement Subsidy
8. Pollution Control Equipment Subsidy
9. Incentive for Quality Certification"   

14. Clause   29.5   which   deals   with   Interest   Subsidy  provides   that   the   Interest   Subsidy   shall   be   admissible   for   a  period of 5 years for all categories of industries from the "date  of commercial production".   The date of production has been  defined   to   mean   the   date   on   which   the   unit   actually   started  commercial production of the item for which the unit has been  registered.     It   is   provided   that,   in   case   of   a   SSI   Unit,   the  15 certificate   issued   by   the   respective  General   Manager,   District  Industries   Centre   or  General   Manager,   Industrial   Area  Development   Authority   will   be   accepted   as   the   date   of  production   however,   in   case   of   any   dispute   in   the   date   of  production, decision of the Director of Industries in this regard  shall be final.  

15. It   is   in   the   above   background   that   a   dispute   with  respect   to   the   "actual   date   of   commercial   production"   of   the  petitioners' unit has arisen.  It is common ground that, there is  no binding guidelines/circular/notification which can be said to  be the guiding factor for taking a decision with respect to the  "date of actual commercial production".

16.     The plea taken by the respondent­State of Jharkhand  that the date of issuance of letter of "consent to operate" would  be the date from which an industry would be deemed to have  commenced   its   "actual   commercial   production"   is   untenable.  The   deeming   provision   under   Section   25(6)   of   the     Water  (Prevention   and   Control   of   Pollution)   Act,   1974   has   been  incorporated to avoid a situation in which an industry may be  ready for production however, if the industry starts production  without   valid   environmental   clearance,   the   industry   may   be  prosecuted   for   violating   the   environmental   laws.     Merely  because   the   letter   of   "consent   to   operate"   has   been   issued  16 subsequently, that is, after the lapse of 4 months' period from  the date of application, it would not lead to an inference that  the industry has started its "actual commercial production" only  from   the   date   "consent   to   operate"   was   issued   or   thereafter.  Such   an   interpretation   may   lead   to   further   confusion   in   the  system because there may be a situation in which an industry  may   produce   a   clinching   evidence   of   its   "actual   date   of  production", which is prior to the date of "consent to operate".  However, I may hasten to add that the validity period indicated  in   the   "consent   to   operate",   that   is,   the   date   from   which   an  industry is permitted to operate which undoubtedly would be a  date prior to the date of issue of "consent to operate", cannot be  the   sole   factor   for   deciding   the   "date   of   actual   commercial  production" of the industry.   Mr. Anil Kumar Sinha, the learned  Senior counsel appearing for the petitioner­Vaishnavi Ferro Tech  (P) Limited relied on decision in  "State of Bihar and others Vs.   Suprabhat Steel Ltd. and Others"  reported in   (1999) 1 SCC 31  and in  "State of Orissa   and Others Vs. Tata Sponge Iron Ltd."  reported   in  (2007)   8   SCC   189  and   submitted   that   if   a  circular/guideline   is   found   to   be   repugnant   to   Jharkhand  Industrial Policy­2001, the same cannot be given effect to.  I find  that the instruction contained in letter dated 22.05.2012 of the  Secretary, Department of Industries and other letters, not to fix  17 the "date of commercial production" prior to the date of first  "consent   to  operate" does not  indicate  any rational basis  and  therefore, the first "consent to operate" cannot form the basis for  fixing   the   "date   of   commercial   production".  Such   a  direction/guideline   would   also   contravene   the   provisions   of  Jharkhand Industrial Policy­2001.   Similarly, the electricity bill  or   the   sale   invoices/sale   letter   etc.   also   cannot   be   the   sole  conclusive   evidence   to   decide   the   "date   of   actual   commercial  production".  

17. The Jharkhand Industrial Policy­2012 was notified in  the   Official   Gazette   vide   Memo   dated   16.06.2012   and   it  was  made   effective   from   01.04.2011.   Under   the   New   Industrial  Policy,   several   incentives   to   a   New   Industrial   Unit   has   been  provided however, the "Interest Subsidy" which was given under  the   Jharkhand   Industrial   Policy­2001,   was   taken   away   in   the  new policy and "reimbursement of 60% of   net VAT" has been  provided.  Relying on the decision in "Mahavir Vegetable Oils (P)   Ltd. Vs. State of Haryana"  reported in  (2006) 3 SCC 620, Mr.  Rajiv   Ranjan,   the   learned   counsel   has   contended   that   the  Jharkhand Industrial Policy­2012 cannot be made applicable in  case   of   the   petitioners   rather,   the   petitioners   are   entitled   for  Interest   Subsidy   as   provided   under   the   Jharkhand   Industrial  Policy­2001.  Per contra, the learned counsel for the respondent­ 18 State of Jharkhand has contended that since it has been found,  as   a   fact   that   petitioners'  Unit   started  actual   production  after  31.03.2011,   they   are   not   entitled   for   benefit   under   the  Jharkhand Industrial Policy­2001.

18. In   so   far   as,   the   grant   of   incentives   under   the  Jharkhand Industrial Policy­2001 are concerned, I find that it  has nowhere been stipulated that an industry would be entitled  for incentives under the 2001­Policy only after it commences its  "actual   commercial   production".   Of   course,   for   "Interest  Subsidy" it is provided that the benefit would be available for  5 years from the "date of actual commercial production".  Now,  if the admissibility of the incentives under 2001­Policy are to  relate to the "date of actual commercial production", it may lead  to   an   absurd   situation.     For   example,   in   case   of   "capital  investment incentive", there is no stipulation that it would be  available only from the "date of actual commercial production".  And,   there   may   be   a   case   in   which   an   industry   had   already  made capital investment, though the Unit has not commenced  even   trial   production   and   in   the   meantime,   the   Government  takes   a   decision   to   change   the   policy   or   implements   a   new  policy.  If in such a situation, the benefit under the old policy is  denied   to   the   industry,   it   would   certainly   be   violating   the  objective   of   the   previous   industrial   policy.   The   State's   action  19 would certainly be not only contrary to "fair play in action", it  must be directed to  fulfill  promises  held  out  under  the  old  Policy.   In  "Motilal Padampat Sugar Mills Co. Ltd. Vs. State of   U.P." reported in (1979) 2 SCC 409, 

8.  "............The   true   principle   of   promissory   estoppel,   therefore,   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 create legal relations or affect 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   by   the   other   party,   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 having regard   to   the   dealings   which   have   been   taken   place   between   the   parties,   and   this   would   be   so   irrespective   of   whether   there   is   any   pre­existing   relationship between the parties or not."

19. In   view   of   the   aforesaid   discussion,   I   am   of   the  opinion that Industrial Policy­2001 is applicable in case of the  petitioners.

20. In   W.P.(C)   No.   5948   of   2013,   the   petitioner   has  assailed order dated 10.08.2013 and 26.03.2014 both, passed  by the General Manager, District Industries Centre, Hazaribagh.  Vide   letter   dated   10.08.2013   M/S   Vaishnavi   Ferro   Tech   (P)  Limited was directed to submit relevant documents for deciding  the   "date   of   actual   commercial   production".   The   General  Manager, District Industries Centre, Hazaribagh issued the said  direction in view of letter no. 2158 dated 23.07.2013 and letter  20 no. 2132 dated 07.07.2012 whereunder, an instruction has been  issued to treat the "date of actual commercial production" from  the date of issue of first "consent to operate".  Vide letter dated  26.03.2014,   the   General   Manager,   District   Industries   Centre,  Hazaribagh,   has   already   quashed   the   letter   dated  28.04.2011  and   therefore,   the   challenge   to   letter   dated   10.08.2013   and  letter dated 26.03.2014 would be considered together.  In so far  as, order dated 26.03.2014 is concerned, it appears that letter  dated   28.04.2011   issued   by   the   General   Manager,   District  Industries Centre, Hazaribagh has been quashed in view of the  first   "consent   to   operate"   granted   to   the   industry   which   was  issued on 19.05.2011.  In view of the discussion in the foregoing  paragraphs, the reason assigned in order dated 26.03.2014 is  not   sustainable   in   law.   However,   it   is   made   clear   that   the  petitioner­industry cannot  object  to the decision taken by the  Department   to   determine   the   "date   of   actual   commercial  production" of the industry.  The petitioner industry which has  availed   capital   investment   incentive   and   which   has   further  claimed interest subsidy is under a duty to provide all necessary  evidences   for   deciding   the   "date   of   actual   commercial  production" and therefor, to that extent there is no infirmity in  order dated 26.03.2014. 

21. In   W.P.(C)   Nos.   5436   of   2013   and   5761   of   2013,  21 order  dated  20.06.2012 of the General Manager whereby the  "date of commercial production" of the petitioner­Unit has been  fixed with reference to the validity period, that is, the period in  the "consent to operate" for which the said order has been made  operative.  The Director Industries vide order dated 06.05.2013  quashed   the   said   order   dated   20.06.2012.   In   view   of   the  discussions in earlier paragraphs, I am of the opinion that, to  that   extent,   there   is   no   infirmity   in   order   dated   06.05.2013  passed   by   the   Director,   Industries.     However,   it   is   also   made  clear that the date of "consent to operate" cannot be the criteria,  if not admitted by an industry, to fix the "date of commercial  production".  The further grievance of the petitioner is that, the  Director,   Industries   has   held   that   the   "date   of   commercial  production"   of   the   petitioner­Unit   should  be   determined   with  reference to Jharkhand Industrial Policy­2012.   In view of the  discussion in the forgoing paragraphs, order dated 06.05.2013  is quashed, to the extent it directs the General Manager, District  Industries Centre, Ranchi to take a decision afresh, in the light  of Jharkhand Industrial Policy­2012.  

22. The Jharkhand Industrial Policy­2001 provides that,  the certificate of commercial production issued by the General  Manager,   District   Industries   Centre   would   be   treated   as   the  "date   of   commercial   production"   of   the   industry   however,   in  22 case of a dispute, the decision of the Director, Industries would  be final and binding on the parties.   The facts pleaded in the  present proceeding disclose that the General Manager, District  Industries Centre, on his own or on the direction of the Director,  Industries   has   reviewed   the   "certificate   of   commercial  production". The Director, Industries, has also ordered that "the  date   of   commercial   production"   of   the   petitioner­industries  should   be   determined   afresh.     No   doubt,   a   mistake   can   be  corrected   at   any   stage.   In  "V.S.N.L   Vs.   Ajit   Kumar   Kar   and   Others" reported in (2008) 11 SCC 591, it has been held that, a  bonafide mistake does not confer any right on any party and it  can be corrected. In  "Union of India and Another Vs. Narendra   Singh" reported in (2008) 2 SCC 750 it has been held thus,

32.    "It is true that the mistake was of the   Department   and   the   respondent   was   promoted   though he was not eligible and qualified.  But, we   cannot   countenance   the   submission   of   the   respondent  that  the mistake cannot be  corrected.   Mistakes   are   mistakes   and   they   can   always   be   corrected by following due process of law.  In ICAR   v. T.K. Suryanarayan it was held that if erroneous   promotion   is   given   by   wrongly   interpreting   the   rules,   the   employer   cannot   be   prevented   from   applying   the   rules   rightly   and   in   correcting   the   mistake.   It may cause hardship to the employees   but a court of law cannot ignore statutory rules." 

23. However, it is to be kept in mind that, there should  be consistency in the decision of the Government and therefore,  the past transactions should not be reopened unless, it is found  23 that serious illegality has been committed while granting benefit  under the Jharkhand Industrial Policy­2001. I find that under  the Jharkhand Industrial Policy­2001 the Director, Industries is  the   final   authority,   in   case   of   a   dispute,   as   to   the   "date   of  commercial production".  Since the issue involved in the present  writ petitions would affect a large number of industries in the  State   of   Jharkhand,   a   guideline   which   may   provide   for  submission of list of documents, is required to be issued by the  Director, Industries, State of Jharkhand.  A decision with respect  to the present writ petitioners also may be taken within a period  of three months by the Director, Industries, State of Jharkhand.  While deciding the issue, the Director, Industries is directed to  keep   in   mind   the   objective   of   the   Jharkhand   Industrial  Policy­2001.  The writ petitions are partly allowed, in the above  terms.

 (Shree Chandrashekhar, J.)                                  Jharkhand High Court, Ranchi                     dated  21/11 /2014                    Amit/A.F.R