Orissa High Court M/S. Maa Bhairabi Industries Llp vs State Of Odisha And Others .... Opposite ... on 13 July, 2021 WRIT PETITION (CIVIL) No.5449 of 2018 (An application under Articles 226 & 227 of the Constitution of India) M/s. Maa Bhairabi Industries LLP .... Petitioner versus State of Odisha and Others .... Opposite Parties Appeared in this case by Video Conferencing mode: For Petitioner : Mr. Rajendra Kumar Pradhan Advocate For Opposite Parties : Mr. M.S. Sahoo Additional Government Advocate For State Mr. S.S. Padhy Additional Standing Counsel For Opposite Party No.4 THE CHIEF JUSTICE JUSTICE S.K. PANIGARHI JUDGMENT 13.07.2021 Dr. S. Muralidhar, CJ 1. The short question that arises for consideration in this writ petition is whether the benefit under the Orissa Food Processing Policy, 2013 (OFP Policy, 2013) can be sought to be withdrawn W.P.(C) No.5449 of 2018 Page 1 of 17 retrospectively and particularly after the Petitioner has altered its position in the expectation of grant of capital investment subsidy (CIS) as assured in the said policy ? 2. The Petitioner is a registered partnership firm, which is running a rice mill unit at Angul District in the State of Odisha. The Petitioner was issued by the District Industries Centre, Angul (DIC) (Opposite Party No.3) an acknowledgement on 12th May, 2015 for establishment of a rice mill with reference to online application submitted by it on 9th May, 2017. The date of the first fixed capital investment was taken as 12th May 2015. 3. On 29th May, 2017, the DIC received the Petitioner's application form for grant of CIS under the OFP Policy, 2013 enclosing all the relevant documents. Importantly, it was mentioned therein that the Petitioner had completed the construction of new 8 ton per hour (TPH) parboiling rice mill plant at Mukundapur, District Angul and had already obtained DIC registration on 22nd May, 2017. 4. As admitted by the Opposite Parties 1 to 3 in their counter affidavit, on receipt of the above application, the DIC advised the Petitioner to obtain a production certificate. The Opposite Parties 1 to 3 have in their counter affidavit further acknowledged that the Petitioner's unit was inspected and found running and on that basis, a production certificate was issued on 30th October, 2017 indicating the date of commercial production as 14th March, 2017. W.P.(C) No.5449 of 2018 Page 2 of 17 5. Thereafter, on 29th November, 2017 the proposal for sanction of CIS in favour of the Petitioner under the OFP Policy, 2013 was recommended by the General Manager, DIC, Angul to the Director of Industries of Odisha, Cuttack (Opposite Party No.2). 6. It appears that one day prior thereto i.e. on 28th November, 2017 unknown to even Opposite Party No.3 a letter was written by the Special Secretary to Government, MSME Department (Opposite Party No.1) to Opposite Party No.2 on the subject of "Limiting Capital Investment Subsidy". The said letter read as under: "Sir, I am directed to say that, during the last review meeting of the activities of the MSME Department undertaken by the Chief Secretary, Odisha held on 02.02.2017, it was observed that a good number of Rice Mills, Dal Mills and Rice & Dal Mills may be included in the negative list of OFPP2016. Accordingly Rice Hullers and Rice Mills, Flour Mills (excluding Roller Flour Mills), Pulse Mills and Besan Mills have been included in the list of ineligible enterprises/industries of OFPP2016 vide amendment Notification No.4652/MSME dt. 31.07.2017 to OFPP2016. As regards CIS under OFPP2013, no proposal for assistance would be entertained after 12.04.2017, DICs/RICs may be informed accordingly." 7. At no point prior to the above letter was any intimation sent to the DIC, or made public, that the CIS for rice mills under the OFP Policy 2013 was being withdrawn and that too retrospectively from 12th April, 2017 onwards. In fact the above letter gives no W.P.(C) No.5449 of 2018 Page 3 of 17 reason for the above date of 12th April, 2017 being chosen as the cutoff date. The letter itself re