M/S Db Corp Limited vs. The State Of Bihar

Facts

M/s DB Corp Limited (Petitioner) filed a writ petition before the Patna High Court seeking implementation of the Bihar Industrial Incentive Policy, 2011. The Petitioner claimed an outstanding amount of Rs. 103.4 Lacs towards subsidies on investment in plants and machinery, captive power generation/DG sets, and reimbursement for electricity duty paid. The Petitioner also sought directions to quash any orders denying these claims and to ensure timely payment of post-production incentives, including reimbursement for GST and VAT paid. The Petitioner argued that once a proposal is approved by the State Investment Promotion Board (SIPB), no further approval is required, citing a previous High Court decision upheld by the Supreme Court. The State of Bihar and its authorities were the Respondents.

Held

The Court noted that a coordinate Bench's decision in CWJC No. 12104 of 2018, M/s Sunny Stars Hotels Private Limited Vs. The State of Bihar & Ors, had attained finality with the dismissal of the State's Special Leave Petition by the Supreme Court. The parties agreed that the petition could be disposed of. The Petitioner stated that some amount had already been paid and would be content if the petition was disposed of with liberty to approach the concerned authority by filing a representation within four weeks, with a direction to the authority to consider and decide the same within another four weeks. The Court allowed this prayer, disposing of the petition with liberty to the Petitioner to file a representation. The Court explicitly stated that it was not expressing any opinion on the merits of the claim, leaving all issues on facts and law open. The Court also reserved liberty for the Petitioner to pursue alternative remedies and expressed hope that such remedies would be dealt with in accordance with law and with reasonable dispatch. Principles of natural justice were to be followed.

Key Issues

1. Whether the Respondent Authorities are obligated to implement the Bihar Industrial Incentive Policy, 2011, and pay the Petitioner's claimed entitlements totaling Rs. 103.4 Lacs, including subsidies on investment in plants and machinery, captive power generation/DG sets, and reimbursement for electricity duty paid? (Question of law and fact, turning on the Bihar Industrial Incentive Policy, 2011 and related government orders). 2. Whether the Respondent Authorities erred in withholding or denying the Petitioner's claims for subsidies and reimbursements, particularly when the proposal was approved by the SIPB, and whether such denial is contrary to established legal principles? (Question of law, turning on principles of administrative law and the interpretation of the SIPB approval process). 3. Whether post-production incentives, such as reimbursement for GST, VAT, and electricity duty paid, must be paid timely to the Petitioner as per their entitlement under the policy? (Question of law, turning on the interpretation of the policy and the duty of the authorities). Petitioner's Contentions: The Petitioner argued that the Respondent Authorities are bound by the Bihar Industrial Incentive Policy, 2011, and that once a proposal is approved by the SIPB, no further approval is necessary. They relied on a Division Bench judgment of the Patna High Court in CWJC No. 12104 of 2018 (M/s Sunny Stars Hotels Private Limited Vs. The State of Bihar & Ors), which attained finality after the dismissal of the State's Special Leave Petition by the Supreme Court. The Petitioner contended that the authorities have no authority to refuse or stop disbursal of entitled amounts once the investment proposal is accepted by the SIPB and that timely release of reimbursements for VAT/GST is their duty. Revenue/State's Contentions: The judgment records no specific arguments made by the Respondent authorities.