Andhra Pradesh High Court
WP/196/2024 of Sri Ravichandra Textiles Pvt. Ltd, Vs The State of Andhra Pradesh on 31 December 2024
COURT OF ANDHRA PRADESH :: AMARAVATP (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: 196 0^024 Between: Sri Ravichandra'^extiles Pvt. Ltd, Regd. Office G.F.No.2, Ground
IN THE HIGH COURT OF ANDHRA PRADESH:: AMARAVATP(Special Original Jurisdiction)
TUESDAY, THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOUR
PRESENT
THE HON’BLE DR JUSTICE K. MANMADHA RAOWRIT PETITION NO: 196 0^024
Between:
Sri Ravichandra'^extiles Pvt. Ltd, Regd. Office G.F.No.2, Ground Floor.SaiPrakash Apartments,Line, Vidya Nagar, Guntur Urban-522007, FactoryPonnekallu(v),Tadikonda(M),GunturDistrict-522018,A.P.RepByitsManaging Director, Manchikalapudi Srinivasa Rao, S/o. Narasimha Rao, AgedAbout 58 Years, R/o. Guntur A.P-522006.
AND
...PETITIONER
1. The State of Andhra Pr;^d€sh, Rep by It's Principal Secretary, Industriesand Commerce (IP) Department, Secretariat, Velagapudi, Amaravathi,Guntur District.and Commerce (IP) Department, Secretariat, Velagapudi, Amaravathi,Guntur District.
2. The Commissioner of Industries, Government of Andhra PradeshVijayawada, NTR District.Vijayawada, NTR District.
3. The Joint Director (II), 0/o.Commissioner of Industries, VijayawadaNTR District.NTR District.
...RESPONDENTS
Petition under Article 226 of the Constitution of India praying that inthe circumstances stated in the affidavit filed therewith, the High Court maybe pleased to issue a writ, order or direction more particularly onein thenature of writ of Mandamus to declare the delay and inaction on the part ofthe Respondentsin making reimbursement of power subsidyincentiveunder the scheduleIndustrialInvestment PromotionPolicy (lIPP) 2010-2015assanctionedbythe2nd and3"^respondentsareillegalandconsequently direct the Respondents to make payment[of][ reimbursement][ of]powersubsidyincentiveunderthescheduleindustrialInvestmentPromotion Policy (lIPP) 2010-2015 together with interest @ 18% per annum from the date of periodical sanction made by the 2"^^ andRespondents inthe interest of justice.
lA NO: 1 OF 2024
Petition under Section 151 CPC praying that in the[circumstances]stated in the affidavit filed in support of the writ petition, the High Court maybe pleased to direct the Respondents to make payment[of][ reimbursement]of powersubsidyincentiveunderthescheduleIndustrialInvestmentPromotion Policy (lIPP) 2010-2015 together with interest @ 18% perannumfrom the date of periodical sanction made by the 2'"'' and 3'"^ Respondentspending disposal of the Writ Petition in the interest of justice, Counsel for the Petitioner : SRI PONNEKANTI MALLIKARJUNA RAOCounsel for the Respondents: GP FOR INDUSTRIES AND COMMERCEThe Court made the following: ORDER
APHC010646332023INTHE HIGH COURT OF ANDHRA PRADESH[3310]AT AMARAVATl(Special Original Jurisdiction)[3310]AT AMARAVATl(Special Original Jurisdiction)
TUESDAY,THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOURPRESENTTHEHONOURABLE DR JUSTICE K MANMADHA RAO
WRIT PETITION NO: 196/2024
Between:
Sri Ravichandra Textiles Pvt. Ltd
AND
The State Of Andhra Pradesh and Others
...PETITIONER
...RESPONDENT(S)
Counsel for the Petitioner:
1.PONNEKANT1 MALLIKARJUNA RAO
Counsel for the Respondent(S):1.GP FOR INDUSTRIES COMMERCE (AP)The Court made the following:
APHC010332592024
IN THE HIGH COURT OF ANDHRA PRADESHAT AMARAVATI(Special Original Jurisdiction)
[3310]
TUESDAY ,THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE DR JUSTICE K MANMADHA RAOWRIT PETITION NO:196/2024
Counsel for the Petitioner:
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 particulady one[ in] the nature of[ writ] of Mandamus[ to] declarethe delay and inaction on the part of the Respondents in making reimbursement of power subsidy incentive underthe scheduleIndustrial Investment PromotionPolicy lIPP 20102015as sanctioned bythe2nd and3rdrespondents are illegal and consequently direct the Respondents to make payment of reimbursement of powersubsidy incentive under the schedule industrial Investment Promotion Policy lIPP 20102015 together with interestISpercent per annum from the date of periodical sanction made by the 2"^ and 3f’^ Respondents in the interest ofjustice...”
2. Brief facts of the case are that, the petitioner company herein is a private limited company incorporatedin the year 2011andestablishedafactory in the year 2012 at Ponnekallu(v), Tadikonda (M), Guntur District,A.P.,for cotton yarn production. The petitioner companyis taking powersupply at 33 KV from theDistribution Company withserviceconnectionConsumerNo.CRD3204andispayingconsumptionchargestotheDistribution Companyregularly without anydefault.ItisstatedthattheGovernment from time to time issues Government orders for granting the incentivBs for sotting up of new industrial enterprises[in][ the][ State][ of][ Andhra]Pradesh as the Government is intending various incentives[for][ encouraging]establishment of new industrial enterprises. The Respondents[deputed][ the]officials to various industrial developed stateslike[Gujarat,][ Tamilnadu][ and]Maharashtra etc., to study the policies and to indentify[the][ best][ practices][ as a]partof encouragementsoftheestablishmentof newindustries,the1^‘Respondent issued G.O.Ms.No.61, dated 29-06-2010grantingvariousincentivesunder the newIndustrial Investments PromotionPolicy (IIPP)2010- 2015"." Thebenefits under the schemeare extendedtomediumenterprises andlargeindustries. Asper the said scheme,thereisareimbursement fixed power costs @ Rs.0.75/- per unit[for][ 5 years from][ the]date of commencement of commercial production.The Petitioner[Company]establishedspinningindustry.It comesunderthesmallandmediumenterprises.Asperthesaidscheme,the2ndandRespondentsreimbursement sanctioned periodical of power subsidy[incentives][ under][ the]schemeofIndustrialInvestment PromotionPolicy. The2""^[Respondent]sanctioned the reimbursement of the amount from April,[2015][ onwards][ up][ to]March,2021andthatasand whentheRespondentsanctionedthereimbursement.immediately the amount hastobereimbursedto thePetitioner Company. But from the beginning of the scheme[and][ till][ end][ of][ the]scheme, even in spite of lapse of 5 years and the sanctioned[orders][ have]beenissued from time to time, butstill the authoritiesdidnot make thepayment of reimbursement of the Government benefits[granted by][ under]
Investments PromotionPolicy. Whenever thereisa delayinpayingtheelectricity dues, the Electricity Department is imposing 18% p.a., towards thelate payment charges. Since the Respondents committed delay in making thepayments, the Respondents are liable to pay the interest @ 18% per annumfrom the date of sanction order issued by the 2'^'^ Respondent.As per thesanction orders issued by the 2"^ Respondent, the Respondents[have][ to][ make]the reimbursementRs.4,50,88,343.00/-tothePetitioner Company.If theinterest @18% per annum is calculated, the interest[amount][ would][ be][ Rs.]5,58,73,726/- as on 20-12-2023.In such an event, the Respondents have tomake payment of Rs. 10,09,62,069/-. Since there is a delay and inaction onthe part of the Respondents in making reimbursement[of][ industrial][ incentives]the present writ petition came to be filed.
3. Counter affidavit has not been filed by the respondents.
4. HeardSriPonnekantiMallikarjunaRao,learnedcounselappearing for the petitioner and learned Government[Pleader][ for][ Industries]commerceandlearnedGovernmentPleaderforFinancePlanningappearing for the respondents.appearing for the petitioner and learned Government[Pleader][ for][ Industries]commerceandlearnedGovernmentPleaderforFinancePlanningappearing for the respondents.
5. On hearing, learned counsel for the petitioner while reiterating theaverments made in the petition, in similar circumstances,[this][ Court][ has]passed various judgments and has furnished a catena[of][ decisions][ of][ this]Court passedin WP No.29482of 2022 dated10.04.2023andin WPNo.20439 of 2023 dated 06.11.2023, and also a copy[of][ a][ learned][ Division]
BenchofthisCourtpassedin WANo.724of2021&batch,dated12.10.2023 and hence requests this Court to pass similar[order]in thesewrit petitions also.
6. Per contra, learned Assistant Government Pleader appearing forthe respondents opposed for passing similar order and prayed to dismissthe writ petitions.
7. On a perusal of the order of a learned Single Judge[of][ this][ Court]passedin WP No.29482 of 2022, dated 10.04.2023, whereinthis Courtafter 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 amountof Rs. 1,84,39,932/- to the petitioner 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 this order.This writ petition is allowed accordingly.”
8. 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 dated12.10.2023.Later, similarly situated persons have filed writ petition in WPNo.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 ofthe judgment of learned Division Bench of this Court[in][ WA.][ No.724][ of][ 2021]and batch, dated 12.10.2023.
9. Therefore,considering the submissionsof boththelearnedcounsels and by following the common order passed by[a][ learned][ Division]Bench of this Court, this writ petitions is also liable to be allowed.
10. Accordingly, the Writ Petition is allowed. The respondents No.2and 3 are directed to pay the amounts to the petitioner along with interest@6% per annum, inview of common order of a learned Division Bench ofthis Court passed in WA No.724 of 2021 & batch, dated 12.10.2023 withina period of four (04) months from the date of receipt of a copy of this order.
11. If at all any grievance with regard to the higher rate of interest,ifany payable by the respondents, the petitioner is at liberty to agitateitsclaim before an appropriate forum. There shall be no order as to costs.
12. As a sequel, miscellaneous applications pending,if any, shall alsostand closed.
To,
//TRUE COPY//
Sd/- M. PRABHAKAR RAOASSISTANT REGI^RARSECTION OFFICER
StLIi'nf AnHh?=Industries and CommWce (IP) DepartmentDistricfPradesh, Secretariat, Velagapudi, AmaravathrGunturPradeshDistricfPradesh, Secretariat, Velagapudi, AmaravathrGunturPradeshVija^aS'KVi^^^^^GovernmenVof AndhraNTR'’Distri?t®‘^'°'^of IndusfeSs, VijayawadaNTR'’Distri?t®‘^'°'^of IndusfeSs, Vijayawada4. One CC to Sri Ponnekanti Malfikarjuna Rao, Advocate [OPUC]High Court of AndhraHigh Court of Andhra^ Pradesh® fOUT]"''^^ustrie^nd Commerce6. Three C.D. Copies.6. Three C.D. Copies.
HIGH COURT
DATED:31/12/2024
ORDER
WP.No.196 of 2024
ALLOWING THE W.P.WITHOUT COSTS
g11 MAR 2025if ^ Currant Secuon,