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2015 (5) TMI 1074

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..... to time eventuating in such a conclusion. The merit of the factums leading to this decision however has not been questioned or impeached. On a consideration of the totality of the aspects involved, we are thus of the unhesitant view that the respondents herein in view of their deliberate laches, negligence and inaction have disentitled themselves to the benefit of the adjudication in the earlier lis. In the accompanying facts and circumstances in our comprehension, it would be iniquitous and repugnant as well to the public exchequer to entertain the belated claim of the respondents on the basis of the doctrine of promissory estoppel which is even otherwise inapplicable to the case in hand. - Civil Appeal No. 3962 of 2011 With CA No. 3963-65/2011 & CA No. 3966-69/2011 - - - Dated:- 8-5-2015 - M.Y. EQBAL AMITAVA ROY JJ. For Appellant(s) Mr. D. S. Mahra, Adv. For Respondent(s) Mr. Azim H. Laskar, Adv. For Mr. Abhijit Sengupta, Adv. M/s Corporate Law Group Ms. Charu Mathur, Adv. JUDGMENT Amitava Roy, J. 1. All these appeals seek to impeach the decision rendered by the Guwahati High Court (Shilong Bench) in a batch of Writ Appeals preferred amongst oth .....

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..... plications remained pending and they were made to understand that the same were being processed as per the norms applicable, it was noticeable, that the implementing authorities were adopting pick and choose methods in the matter of disbursement of the financial assistance to a selected few by overlooking their worthy claims. 5. It is a matter of record that another set of such applicants with the similar grievance had meanwhile instituted writ proceedings registered as WP(C) 279 (SH) to 285 (SH) of 2007 and eventually as adverted to hereinabove a Single Bench followed by a Division Bench of the Guwahati High Court had entertained the challenge made therein and the implementing authorities of the scheme were directed to process the applications of the said writ petitioners for grant of subsidy under it (SPINE) in accordance with law and for sanctioning the same to each of them, within a period of ninety days from the receipt of the copy of the judgment and order. To reiterate, this Court by its Order dated 01-05-2009 passed in SLP(C) 9578-9584/2009, declined to interfere with this adjudication. 6. Be that as it may, a learned Single Judge of the same High Court by judgment .....

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..... he North Eastern States as named therein intimating about the receipt of a letter from the Secretary, Ministry of DONER, recommending discontinuance of SPINE immediately. The letter further required that a review of the liabilities be undertaken and submitted for necessary decision by the Chairman, NEC. That this view of the Ministry of DONER, had also been shared with the State Governments, was mentioned. The addressee was requested to ensure that no new proposal for consideration under SPINE be forwarded to NEC. 8.2 It is noticeable, that with effect from 01-04-2007, the Government of India, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion did approve a package of fiscal incentives and other concessions for the northeast region named Northeast Industrial and Investment Promotion Policy (NEIIPP) 2007 . Parallely by a communication dated 04-09-2007, the Government of India, Ministry of DONER reiterated its request to the Industries and Commerce Department of Government of Assam to get the industries in the list appended thereto, inspected and reports submitted to the NEC as per the format enclosed. The letter disclosed that a formal meeting of .....

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..... fluenced by the letter dated 05-02-2007 of the Secretary, Ministry of DONER within a period of ninety days from the receipt of the copy of the judgment and order. In pronouncing this verdict, the learned Single Judge inter alia recorded that relying on the assurance under the scheme, units concerned had materially altered their positions by investing huge amounts for setting up their respective new industrial units even by obtaining secured and unsecured loans and that denial of the financial assistance under the scheme would result in their closure observing that the letter dated 05-02-2007 did not indicate withdrawal of the scheme and that only enquiry into some irregularities was comprehended. The learned Single Judge noted as well that meanwhile the concerned industries had made their units functional. The minutes of the meeting dated 21-02-2007 was also taken note of in expressing this view. The learned Single Judge entertained the plea of promissory estoppel as well in issuing the operative directions. 9.1 This decision was taken in appeals before a Division Bench of the Guwahati High Court by the Union of India and NEC which were dismissed on 27-11-2008. Admittedly, th .....

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..... a to the letters dated 05-02-2007 and 04-05-2010 issued by the Ministry of DONER apart from heavily relying on the decision in the earlier lis and returned a finding that SPINE had continued till the issuance of the notification/letter dated 04-05-2010. Their Lordships held the view that as the respondents had set up their industrial units during the validity of the scheme and their claims were pending in course thereof, the appellants, the implementing authorities were obliged to consider the same. That the view taken by the learned Single Judge was inconsistent with the one taken in the judgment and order dated 20-6-2008 was also noted. It was held as well that apart from the fact that there was no prescribed period of limitation to invoke the writ jurisdiction under Article 226 of the Constitution of India, as under the Limitation Act 1963, it was in any case, three years, their writ petitions could not have been dismissed on the ground of delay. In any view of the matter, it was observed that, the time lag in filing the writ petitions could not have been reckoned from 05-02-2007 where the SPINE was not closed. That the implementing authorities did not at any point of time commu .....

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..... yed by the letter dated 23-2-2007, the pending proposals including those of the respondents herein had been returned to the respective State Governments, in absence of any challenge to the said decision, the respondents even otherwise are not entitled to the benefit under it. According to the learned counsel, the respondents are not entitled to the benefit of the earlier adjudication and that if their claim is entertained it would not only signify unwarranted premium on their speculative inaction but also would severely impinge upon the financial resources of the State qua an unworthy cause. 13. As against this, Ms. N. Saikia has emphatically argued that the respondents being similarly placed with the writ petitioners in the earlier proceedings, they had been rightly extended equal treatment and thus the impugned judgment and order is unassailable in law and on facts. As admittedly by the letter dated 05-02-2007, the scheme had not been withdrawn and in fact no decision rejecting their claim thereunder had ever been conveyed to the respondents, the action of the appellants in endeavouring to deny the benefit thereunder is patently arbitrary, whimsical and unconstitutional, she .....

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..... aked their claim on 27-08-2009. There is evidently thus a time lag of more than two years by which the respondents challenge was delayed. 14.1 It is a matter of record, that by letter/notification dated 04-05-2010 issued by the Secretary, Ministry of DONER, NEC, Shillong, confirmation of the decision of withdrawal and closure of SPINE with effect from 23-02-2007, was notified. A plain perusal of the contents of this document would reveal in no uncertain terms that the withdrawal and closure of SPINE had been effected by an Order of Government of India vide NEC/PLAN/ii-23-2-2007. Thus the letter/notification dated 04-05-2010, did relate back to 23-02-2007 for all intents and purposes. Therefore the scheme, SPINE stood withdrawn and/or closed on and from 23-02-2007. As a corollary, on a cumulative reading of the letters dated 05-02-2007, 23-02-2007 and 04-05-2010 as well as the resolution dated 21-02-2007 it is indubitable that SPINE stood withdrawn and/or closed with effect from 23-02-2007. As adverted to hereinabove, by letter dated 01-10.2007, as a consequential step, the proposal which had remained unprocessed as per the standard procedures of the scheme were returned to the .....

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..... placed in such a case, because on the facts, equity would not require that the Government should be held bound by the promise made by it. That aside overriding public interest against enforcement of the doctrine qua the Government, it would be still competent for it to depart from the promise on giving reasonable notice which need not be a formal one, affording the promisee a reasonable opportunity of resuming his position was underlined. We consider it inessential to dilate on the other decisions cited on behalf of the respondents on this theme as these are in essence in reiteration of the above proposition. 16. The gravamen of the authorities pertaining to delay highlight in unison that the same has to be explained by cogent convincing and persuasive explanation to justify condonation thereof. The legal diktat being so fundamental that a detailed treatment of the decisions relied upon by the respondents in this regard is not warranted. 17. Noticeably, in the earlier round of litigation, there was no scope to examine the purport of the contents of the letter dated 04-05-2010, which to reiterate only affirmed the decision of withdrawal and closure of SPINE with effect from .....

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