WP/5657/2024 of CCL PRODUCTS (INDIA) LIMITED Vs THE STATE OF AP on 31 December 2024

Conclusion

COMMON ORDER:

As the issue involved in all the writ petitions is one and the sa therefore, they are being taken up for hearing as well as disposed o this Common Order.

2. Since the facts in all the writ petitions are similar and identical, therefore WP No.16895 of 2024 is taken as lead case, and the facts therein hereinafter will be referred to for convenience.

3. Brief facts of the case are that,M/s. Sri Nukala Rama Koteswara Rao Textiles Private Limited (Petitioner herein), is a Company registered under the provisions of the Indian Companies Act, 1956 with Corporate Identification U17115AP2001PTC037792 Number (CIN). The promoters of the company Sri Nukala Venkata Venu Gopala Rao has started his business career in the year 1980 and did cotton ginning and lint trading, and other directors are his family members. It is stated that the erstwhile Government of Andhra Pradesh (prior to its bifurcation), with the intention to drive industrial growth by attracting private investments, came up with Industrial Investment Promotion Policy 2005-10 vide G.O.Ms. No. 178, Industries & Commerce (IP) Department, dated 21.06.2005. That being attracted to the power and other subsidies reposing great faith and trust in the incentives offered by the State Government and Central Government and the loans offered by the Banks for reasonable interest. Further, the Government of Andhra Pradesh post bifurcation, after careful consideration of plight of enterprises/industries, which have commenced commercial production under previous polices also granted with the benefits and the Government of Andhra Pradesh. It is stated that the Petitioner Company is a company which demonstrate its key role in relation to employment and economic development of the State. The Petitioner Company not only improved the livelihoods of individuals in its location but also

contributes to the overall socio-economic development of the region. It is further stated that in addition to the above policies, the State Government had indeed prescribed guidelines in order to provide special advantage to MSMEs along with other few categories. As per the said Guidelines, MSMEs shall file an application/ representation to DICs (District Industries Centre) concerned along with relevant documents for the release of incentives on a priority basis based on merits. It is further stated that, based on the above said Industrial Investment Policy 2005-2010,2010- 2015 and 2015-2020, the petitioner herein entitled for power subsidy and capital subsidy and Respondent through various proceedings approved that the Petitioner is entitled to receive an amount of Rs. 15.15 Crores. It is stated that, upon establishing the Unit, the Petitioner had continued to operate the said Unit in compliance with all the applicable laws. It is further stated that the Petitioner Company's Unit is categorised as a Mega Scale Unit as the required criteria for such classification was duly complied-with by the Petitioner Company. As stated supra, upon submission of the applications for availing the aforesaid incentives/ benefits, the Petitioner Company received communications informing that the claim for such incentives/benefits stood approved/sanctioned duly filed claim applications before the Respondent authorities for sanction of the incentives/benefits. It is further stated that the Petitioner having felt encouraged by the State government had multiplied its investment into the State consequent to the benefits sanctioned in its favour. It is further stated that the aforesaid illegal actions of the Respondent authorities have caused undue loss and damage to the Petitioner towards opportunities loss and business loss. Hence, the present writ petition.

4. The pleadings which are cited by the petitioner in WP No.16895 of 2024, the same are adopted by other petitioners in other writ petitions vide W.P.Nos. 1246, 3460, 3898, 4323, 5120, 5125, 5644, 5982, 6781, 16894 and 16931 of 2024.

5. The counter affidavit has been filed by the respondent No.1. While denying all the allegations made in the petition, contended that, vide G.O.Ms No: 32, Industries & Commerce (P&I) Department, dated 07.02.2019, the Government have issued guidelines, in addition to the guidelines already issued at para No:25.1 of Operational guidelines of IDP 2015-20 issued vide G.O.Ms No: 108, Industries & Commerce (P&I) Department dt: 14/11/2015 for prioritization of release of sanctioned incentives to women/ MSME/Sick Enterprises and industries intend to go for Expansion or Diversification of their Projects on case to case basis basing on the merits of the enterprise, subject to some conditions. Accordingly, this G.O.Ms No: 32 is applicable to the industrial units, which were commenced during IDP 2015-20 Policy only. But not applicable to the industrial units, which were commenced during IIPP 2005-10 & IIPP 2010-15. In view of the circumstances stated above, it is submitted that the even Government have not mentioned any time bound for release of the sanctioned of industrial incentives to the eligible industrial units. However, Government have to release the sanctioned industrial incentives to the

industrial units as per Chronological order of sanctions as per Para No: 21 of Operational Guidelines of IIPP 2005-10 Policy (Procedure for Disbursement of funds), as per Para No: 24 of Operational Guidelines of IIPP 2010-15 & IDP 2015-20 Policy, after receipt of a report from the General Manager, District Industries Centre on the physical verification of the unit and its working condition, the assets are intact and there is no change in management and also the unit complying with the conditions, if any. Hence, it is stated that the industrial incentives shall not be disbursed to the units commenced under IIPP 2005-10, IIPP 2010-15 & IDP 2015-20 Policies, which are not working. It is stated that as per Para No: 27 of Operational Guidelines of IDP 2020-23, Government will release the sanctioned industrial incentives to the industrial units as per Chronological order of sanctions and as per funds allocation. Further, it is also stated that if the unit was in continuous production for a period as prescribed i.eSix(6) years for MSEs and Eight (8) years for others from date of commencement of commercial production (DCP) and the amount is pending to be released even after such period that amount should be released without insisting working status. Accordingly, as per Industrial Polices, the sanctioned incentives of the petitioners’ units will be released as per seriatim of Sanctions and as per allocation of funds under the said scheme. Therefore, in view of the above circumstances, prayed to dismiss the writ petition.

6. The counter affidavit has been filed by respondent No.7 in WP No.16895 of 2024 while adopting the averments made in the counter affidavit filed by the respondent No.1 in WP No.16895 of 2024, stated that, the total amount involved in the above writ petitions are Rs. 86.55 Cr. for non-payment of power cost subsidies as per the industrial investment promotion policies issued by Govt. of A.P. from time to time. In this regard, Finance Department has received CFMS bill no. 2024-445907 which is a consolidated bill to an amount of Rs.192.85 Cr. Present status of the bill is "Waiting for funds clearance" and bill will be cleared on priority with due procedure. Finance department has not received bills to the leftover sanctioned amounts of WPs. As and when received remaining bills from the department the same would be cleared on priority. It is stated that the current Government is formed recently in June, 2024. This Government has inherited huge pending liabilities of Rs. 48,616.00 Crores accumulated over the last five years. Further, the resource gap expected during the current year is Rs.11, 000.00 Crs. approximately. To overcome this financial stress, the Government is still strategizing on ways to cross these hurdles with minimum effect on all stakeholders. Apart from optimizing the states own resources, assistance from the Central Government is also required in going forward in these circumstances. All possible steps are being taken at the highest level to mobilize resources and that in view of the above circumstances requests to grant (9) months time in the above writ petition. Further, as there are no merits in the writ petition, prayed to dismiss the same.

7. Heard Sri Anup Koushik Karavadi, learned counsel appearing for the petitioners and learned Government Pleader for Industries commerce and learned Government Pleader for Finance Planning appearing for the respondents.

8. On hearing, learned counsel for the petitioners while reiterating the averments made in the petition, in similar circumstances, this Court has passed various judgments and has furnished a catena of decisions of this Court passed in WP No.29482 of 2022 dated 10.04.2023 and in WP No.20439 of 2023 dated 06.11.2023, and also a copy of a learned Division Bench of this Court passed in WA No.724 of 2021 & batch, dated 12.10.2023, and requests this Court, to pass similar order, in these writ petitions also.

9. Per contra, learned Assistant Government Pleader appearing for the respondents opposed for passing similar order and prayed to dismiss the writ petitions.

10. On a perusal of the order of a learned Single Judge of this Court passed in WP No.29482 of 2022, dated 10.04.2023, wherein this Court, after considering the material and the documents relied on by the learned counsels, has allowed the writ petition. The operative portion of the said order reads as under:

“ …For the aforementioned reasons, the respondents are directed to pay an amount of Rs.1,84,39,932/- to the petitioner company towards reimbursement of power cost incentive announced during 2005-2010 Policy within a period of six months from the date of receipt of a copy of this order. This writ petition is allowed accordingly.”

11. 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 same was also allowed vide order dated 6.11.2023 directing the respondents to release the amount along with interest 6% p.a. in view of the judgment of learned Division Bench of this Court in WA No.724 of 2021 and batch, dated 12.10.2023.

12. Therefore, considering the submissions of both the learned counsels and by following the common order passed by a learned Division Bench of this Court, these writ petitions are also liable to be allowed.

13. Accordingly, all the Writ Petitions are allowed directing the respondents concerned to pay the amounts to the petitioners along with interest @6% per annum, inview of common order of a learned Division Bench of this Court passed in WA No.724 of 2021& batch, dated 12.10.2023 within a period of four (04) months from the date of receipt of a copy of this order.

14. If at all any grievance with regard to the higher rate of interest, if any payable by the respondents, the petitioners are at liberty to agitate their claim before an appropriate forum. There shall be no order as to costs.

15. As a sequel, miscellaneous applications pending, if any, shall also stand closed.

Date : 31 -12 -2024 Gvl

_________________________

DR. K. MANMADHA RAO, J.

HON’BLE DR. JUSTICE K. MANMADHA RAO

WRIT PETITION NO: 16895, 1246, 3460, 3898, 4323, 5120, 5125, 5644, 5982, 6781, 16894 and 16931/2024

Date : 31.12.2024

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