Andhra Pradesh High Court
WP/27477/2023 of M/S. SRI MOULI TEXTILES PRIVATE LIMITED Vs THE STATE OF ANDHRA PRADESH on 31 December 2024
COURT OF ANDHRA PRADESH :: (Special Original Jurisdiction) TUESDAY, THE THIRTY FIRST DAY OF DECEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HON’BLE DR JUSTICE K MANMADHA RAO WRIT PETITION NO: 27477 OF 20?.? AMARAVATI Between: M/s. Sri Mouli Textiles Private Limited, r Gariapati Satvik,
IN THE HIGH COURT OF ANDHRA PRADESH ::AMARAVATI(Special Original Jurisdiction)TUESDAY, THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOURPRESENTTHE HON’BLE DR JUSTICE K MANMADHA RAOWRIT PETITION NO: 27477 OF 20?.?(Special Original Jurisdiction)TUESDAY, THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOURPRESENTTHE HON’BLE DR JUSTICE K MANMADHA RAOWRIT PETITION NO: 27477 OF 20?.?
Between:
M/s. Sri Mouli Textiles Private Limited, rRep. byits Executive DirectorGariapati Satvik, S/o Puma Chandra Sekhar Regd. Otfice. 8-6-99, 100, 5thline, Nehru Nagar, Guntur...PETITIONER
AND
1. The State of Andhra Pradesh, Rep. by its Principal Secretary, Industriesand Commerce IP Department, Secretariat, Velagapudi,Amaravati,Guntur Districtand Commerce IP Department, Secretariat, Velagapudi,Amaravati,Guntur District
2. The Commissioner of Industries, Government of AndhraPradesh,Pradesh,Vijayawada, NTR District
3. The Joint Director II, O/o The Commissionerof Industries, Vijayawada,of Industries, Vijayawada,NTR District
4. The Drawing and Disbursing Officer, Finance Department, Secretariat,Velagapudi, Amaravati, Guntur DistrictVelagapudi, Amaravati, Guntur District
...RESPONDENTS
Petition under Article 226 of the Constitutionof India praying that inthe circumstances statediin the affidavit filed therewith, the High Courtmaybe pleased to issue a writ, order or directionmore particularly one in thenature of mandamus to declare the delay and inaction on the part of therespondents in making the reimbursement of Power SubsidyIncentive andInterest subsidy under the Textileand ApparelPolicy, 2015-2020assanctioned by the respondentnos. 2 and 3 as illegal, arbitrary and to consequentlydirecttherespondentstohakethepaymentofreimbursement of Power Subsidy Incentive and Interest[subsidy][ under][ the]Textile and Apparel Policy, 2015-2020 together with[interest][ at][ ISpercent]p.a. fromthedateofperiodicalsanction madeby the2ndand3rdrespondents.
lA NO: 1 OF 2023
Petition under Section 151 CPC praying that in the[circumstances]stated in the affidavit filed in support of the writ petition, the High Courtmay be pleasedtodirectthe respondentsto makethepaymentofreimbursement of Power Subsidy Incentive and Interest subsidy under theTextile and Apparel Policy, 2015-2020 together with interest at 18% p.a.from the date of periodical sanction made by the 2nd[and][ 3rd][ respondents]pending disposal of the above writ petition.
Counsel for the Petitioner: SRI ALAPATI LALITH NIKHILCounsel for the Respondents No.1 to 3: GP FOR INDUSTRIES
COMMERCE
Counsel for the Respondent No.4: GP FOR FINANCE AND[PLANNING]
The Court made the following: ORDER
APHC010532722023
IN THE HIGH COURT OF ANDHRA PRADESHAT AMARAVATI(Special Original Jurisdiction)
TUESDAY ,THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE DR JUSTICE K MANMADHA RAO
WRIT PETITION NO: 27477/2023
Between:
M/s. Sri Mouli Textiles Private Limited
...PETITIONER
AND
The State Of Andhra Pradesh and Others
...RESPONDENT(S)
Counsel for the Petitioner:
1.ALAPATI LALITH NIKHIL
Counsel for the Respondent(S):
1.GP FOR FINANCEPLANNING
2.GP FOR INDUSTRIESCOMMERCE
The Court made the following:
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ORDER:
This writ petition is filed under Article 226 of the[constitution][ of India for]
the following relief:
“to issue a writ order or direction more particularly[one][ in][ the][ nature of][ mandamus][ to][ declare the]delay and inaction on the part of the respondents in[making][ the][ reimbursement][ of][ Power][ Subsidy]Incentive and Interest subsidy under the Textile and Apparel[ Policy] 2015-2020[ as] sanctioned[ by the]respondent nos. 2 and 3 as illegal arbitrary and to[consequently][ direct][ the][ respondents][ to][ make][ the]payment of reimbursement of Power Subsidy Incentive[and][ Interest][ subsidy][ under][ the]Textile andApparel Policy 2015-2020 together with interest at[18][ percent][ p.a.,][ from][ the][ date of][ periodical][ sanction]made by the 2nd and 3rd respondents and to pass....”delay and inaction on the part of the respondents in[making][ the][ reimbursement][ of][ Power][ Subsidy]Incentive and Interest subsidy under the Textile and Apparel[ Policy] 2015-2020[ as] sanctioned[ by the]respondent nos. 2 and 3 as illegal arbitrary and to[consequently][ direct][ the][ respondents][ to][ make][ the]payment of reimbursement of Power Subsidy Incentive[and][ Interest][ subsidy][ under][ the]Textile andApparel Policy 2015-2020 together with interest at[18][ percent][ p.a.,][ from][ the][ date of][ periodical][ sanction]made by the 2nd and 3rd respondents and to pass....”
2. Brief factsof the casearethat thepetitioneris a companyregisteredundertheprovisionofTheCompaniesAct,1956andestablished a spinning mill and it is a medium scale project under the termsof Government of India. The petitioner company has established spinningmillinPrathipadu,Guntur.TheGovernmentof AndhraPradeshisextending various incentives for encouraging establishment[of][ industries][ in]the stateto promote Andhra Pradesh as anattractive and competitivedestination for industrial investments. The Government from time to timeissued Ordersfor grantingincentivesforsettingupof newindustriesenterprises. The Government of Andhra Pradesh vide G.O.Ms.No.32 dt.29-04-2015 issued orders for extending the various incentives/benef[its][ under]the Textile and Apparel policy, 2015- 2020 to the eligible new Micro, Small,Medium, Large and Mega industries establishedin theState.But therespondents are acting in a manner contrary to the very objectives set forthin the 2015-2020 policy. The Government is not reimbursing[the][ subsidies]for the best reasons known to them even after issuing[the][ sanction][ letters.]It is stated that under the said policy, the Government[of][ Andhra][ Pradesh]will provide Power tariff subsidy at Rs. 1/- per unit for period of five yearsfrom the date of commencement of commercial production.[The][ date]ofcommencement of commercial production of the petitioner[is][ 10-05-2015.]This benefit/incentive will be applicable for setting up of new enterprises aswell as for expansion/diversification of existing enterprises. After every half r%.-i r\r
r%.-i
r\r
year,theenterprise/establishmentshallmakeanapplicationtotheDepartmentof Industries, Andhra Pradesh for reimbursement of powercosts.Accordinglythepetitionerhasmadeanapplicationforreimbursement of power costs for existing enterprise for every half yearfrom 2015 to 2020 by providing all the power bills and also the receipts ofpayment from the DISCOMS.The respondent authorities[have][ issued][ the]sanctioned letters to the petitioner company for the[reimbursement][ of][ the]Power subsidy incentive and the petitioner has alsosubmittedailtherelease documentsto the respondentsforall the claims duly after thesanction. But the respondents are not paying the said[amounts]tothepetitioner for the best reasons known to them. The respondents have toreimburse the power costs to a tune of Rs. 3,51,29,832/- (Rs. 2,26,19,452/-+ Rs. 1,25,10,380) towards the power subsidy incentive provided under theTextile and Apparel Policy, 2015-2020.Further, the[Government][ of][ Andhra]Pradesh has also provided for the interest subsidy[to][ the][ establishments][ for]the loan availed by them for incorporating their establishments and settingup their businesses. The interest subsidy is capped at 12.5% per annum ina way that maximum interest subsidy will be up to 7.5% for spinning &modern ginning and 8% for other activities for a period of 7 years from thedate of commencement of commercial production. The petitioner is aspinning mill which is entitled for 7.5% interest subsidy[for][ the][ loan][ availed]byit for its establishment and setting up business. The respondents havetoreimburseanamountofRs.7,48,99,000/-(Rs.3,52,79,237+
S’
Interest subsidy provided under the TextileRs.3,96,19,763) towards theand Apparel Policy, 2015-2020.It is further statedthat the respondentof Rs.11,00,28,832/-authorities are obligated to disburse a total sum000 for Interest Subsidy and Rs. 3,51,29,832 for(comprising Rs. 7,48,99Power Cost Reimbursement) to the petitioner,in accordancewiththeprovisions outlined in the Textile and Apparel Policy,2015-2020. Despiteand the petitioner promptly submitting releaseissuing sanctionlettersdocuments, the respondents[have][ not][ paid][ the][ amounts][ so][ far.][ Hence,][ the]present writ petition.
No.1 to 3 have filed Memo stating that the3.The respondentsrespondents had filed counter in WP No.16895 ot 2024[answering][ all][ the]Hence, these respondents are filing thisissues raisedin the matter.in this WP No.27477 of 20123 and pleased to consider[the]Adoption Memo in.counter affidavit in WP No.16895 of 2024 and prayed[to][ dismiss][ the][ writ]petition.
4. The counteraffidavit has been filed by the respondent No. 4.While denying the allegations made in the petition,[contended][ that][ the]IndustriesandCommerceIPDepartmentbeingtheadministrativethe matter based on the rules andDepartment have to take actioninthe eligibility of the petitioner.Therefore, the Drawingregulations as perFinance Department has no role in this writ petition.and Disbursing OfficerTherefore, pleased to delete the name of 4'^^ respondentin this writ petitionand prayed to dismiss the writ petition.
-•/* t
5. Heard Mr. Alapati Lalith Nikhil, learned counsel appearing for thepetitioner and learned Government Pleader for Industries commerce andlearned GovernmentPleaderfor Finance Planning appearingfortherespondents.
6. On hearing, learned counsel for the petitioner while reiterating theaverments made in the petition, submits that, in similar circumstances, thisCourt has passed various judgments andhas furnishedacatenaofdecisions of this Court passed in WP No.29482 of 2022 dated 10.04.2023andin WP No.20439 of 2023 dated 06.11.2023, and also a copy of alearned Division Bench of this Court passed in WA No.724 of2021 & batch,dated 12.10.2023 and hence requests this Court to pass[similar][ order][ in]these writ petitions also.
7. Per contra, learned Assistant Government Pleader appearing forthe respondents opposed for passing similar order and prayed to dismissthe writ petitions.
8. On a perusal of the order of a learned Single Judge[of][ this][ Court]passedin WP No.29482 of 2022, dated 10.04.2023, wherein this Court,after considering the material and the documents relied on by the learnedcounsels, has allowed the writ petition.The operative portion of the saidorder reads as under:
“., .For the aforementioned reasons, the respondents are directed to pay an amount ofRs.1.84,39,932/-tothepetitioner company towards reimbursement of power cost incentiveannounced during 2005-2010 Policy within a period of six months from the date of receipt of acopy of thi$ order.This writ petition is allowed accordingly.”Rs.1.84,39,932/-tothepetitioner company towards reimbursement of power cost incentiveannounced during 2005-2010 Policy within a period of six months from the date of receipt of acopy of thi$ order.This writ petition is allowed accordingly.”
9. Further this Court observed that, the aforesaid[order][ of a][ learned]Single Judge of this Court has been confirmed by a[learned][ Division][ Bench]of this Court in WA No.724 of 2021 and Batch vide common[order][ dated]12.10.2023.Later, similarly situated persons have[filed][ writ][ petition][ in][ WP]No.20439 of 2023 before a learned Single Judge of this[Court][ and][ the]samewasalsoallowedvideorderdated6.11.2023directingtherespondents to release the amount along with interest[6%][ p.a.][ in][ view][ of]the judgment of learned Division Bench of this Courtin WA No.724 of 2021and batch, dated 12.10.2023.
10. Therefore, considering the submissions of both[the]learnedcounsels and by following the common order passed by[a learned][ Division]Bench of this Court, these writ petitions are also[liable][ to][ be][ allowed.]
the11.Accordingly,theWritPetitionisalloweddirectingrespondents concerned to pay the amounts to the petitioner[along,][ with]interest @6% per annum, in view of common order of[a learned][ Division]Benchof this Court passedin WA No.724of 2021 &batch,dated12.10.2023 within a period of four (04) months from[the][ date][ of][ receipt][ of a]copy of this order.
12. If at all any grievance with regard to the higher[rate][ of][ interest,]if anypayable by the respondents, the petitioner is at liberty[to][ agitate][ its]claim before an appropriate forum. There shall be no[order][ as][ to][ costs.]
13. As a sequel, miscellaneous applications pending,if any, shall also stand closed.
Sd/- M SURYANADHA REDDYDEPUTY REGISTRAR//TRUE COPY///SECTION OFFICER
To,
1. The Principal Secretary, State of Andhra Pradesh,[Industries][ and]Commerce IP Department, Secretariat, Velagapudi, Amaravati,[Guntur]DistrictCommerce IP Department, Secretariat, Velagapudi, Amaravati,[Guntur]District
2. The Commissioner of Industries, Government of Andhra Pradesh,Vijayawada, NTR DistrictVijayawada, NTR District
3. The Joint Director II, O/o The Commissioner of Industries, Vijayawada,NTR DistrictNTR District
4. The Drawing and Disbursing Officer, Finance Department, Secretariat,Velagapudi, Amaravati, Guntur DistrictVelagapudi, Amaravati, Guntur District5.One CC to SRI. ALAPATI LALITH NIKHIL, Advocate [OPUC]6. Two CCS to GP FOR INDUSTRIES COMMERCE, High Court[of]Andhra Pradesh. [OUT]6. Two CCS to GP FOR INDUSTRIES COMMERCE, High Court[of]Andhra Pradesh. [OUT]
7. TwoCCsto GP FOR FINANCE AND PLANNING, High Court[of]Andhra Pradesh. [OUT]Andhra Pradesh. [OUT]
8. Three C.D.Copies
nm
high court
DATED;31/12/2024
ORDERWP.No.27477 of 2023
X2 8 JAN 2025jCurrent Section
ALLOWING THE WP WITHOUT COSTS