In the High Court of Punjab and Haryana at Chandigarh CWP No. 8491 of 2007 Date of decision: 16.5.2008 M/s V.M. Spinning Mills ......Petitioner Versus State of Punjab and others .......Respondents CORAM: HON'BLE MR.JUSTICE M.M.KUMAR HON'BLE MRS. JUSTICE SABINA Present: Mr.Pankaj Gupta, Advocate, for the petitioner. Mr.Suvir Sehgal, Addl.A.G.Punjab **** M.M.KUMAR, J. The prayer made in the instant petition filed under Article 226 of the Constitution is for directing the respondents to release the investment incentive (Capital Subsidy) of Rs.14.07 lacs which was sanctioned to the petitioner vide letter dated 3.11.1997 (Annexure P-1). On account of the stand taken by the respondents that the unit has remained closed and the counter stand taken by the petitioner that the unit has been working, we have heard the matter on numerous occasions. On 23.1.2008 we have recorded the following order:- “In pursuance to direction issued by this Court on 21.1.2008, respondent has undertaken inspection of the unit belonging to the petitioner. According to the CWP No. 8491 of 2007 -2- inspection on 22.1.2008, it has been pointed out that the unit was working at the time of inspection and manufacturing Yarn but the unit did not produce any documents of production of Yarn. Mr. Vipin Mahajan, Proprietor of the unit was also requested to show the requisite documents but he stated that the old record has been burnt in the fire. The current record has also not been shown. The aforementioned communication is taken on record as Mark 'A'. Mr.Pankaj Gupta, learned counsel for the petitioner, however, states that he would produce the documents on record which sufficiently prove the production of the unit in the preceding year and the same was such that no reasonable person can doubt that the unit was not working. He seeks and is granted two weeks' time to file the necessary documents. Let the documents be filed on or before 6.2.2008 with copy in advance to the learned State counsel. List for arguments on 13.2.2008.” The petitioner has further placed on record documents showing the payment of electricity bills in November 2006, 2007 and even in the current year. Those electricity bills have been attached with C.M.No.2574 of 2008. Likewise, the petitioner has also placed on record the payment of VAT (Annexure A-4), which has been placed on record alongwith C.M.No.9722 of 2008. At the time of hearing today, learned State counsel has CWP No. 8491 of 2007 -3- placed on record a letter dated 14.5.2008 from the Director of Industries and Commerce, Punjab (Mark 'B') addressed to the Advocate General, Punjab intimating that instead of Rs.14,07,000/- which was sanctioned vide letter dated 3.11.1997 (Annexure P-1), an amount of Rs.11,67,260/- is sanctioned as capital subsidy because of missing of three machines which could not any more be included in fixed capital investment. Accordingly the fixed capital investment has been reduced by Rs.11.99 lacs because these three machines were missing. Learned State counsel has stated that some time would be required to disburse the amount of Rs.11,67,260/- to the petitioner. He has prayed for two month's time. It is the conceded position that the name of the petitioner in the list of beneficiaries for capital subsidy is figured at Sr.No.1289 and it has already matured in March 2007. Presently subsidy has been released to the industry registered at Sr.No. 2300, therefore, the period of two months for which request has been made can not be granted. In view of above, we allow the writ petition. A direction is issued to the respondents to release the amount of Rs.11,67,260/- within a period of two weeks from today. The petitioner shall be entitled to interest from March 2007 till the date of payment @ 9%. (M.M.KUMAR) JUDGE (SABINA) May 16, 2008 JUDGE anita