31 December 2024 Business Laws >> Business & Commercial Law  

The writ petitions concern the non-payment of sanctioned industrial incentives under the Industrial Investment Promotion Policy (IIPP) by the State Government to the petitioner, a private cotton spinning company. The petitioner had made significant investments in the establishment and expansion of its business, relying on the incentives offered by the government. Despite approvals and sanctions for a total of Rs. 3.33 crore, the payment has not been released, resulting in financial hardship for the petitioner. This delay caused the company’s loan account to be classified as NPA, and the promoters had to sell personal property to pay the outstanding loan.

The respondents, in their counter-affidavit, acknowledged the sanction of the incentives but stated that the payments are made based on a "seriatum" order. They also mentioned that future incentives for power costs were to be adjusted in future electricity bills as per government orders. The petitioner sought to compel the respondents to pay the outstanding amount, citing previous court judgments where similar claims were ordered to be paid with interest.

The court, after reviewing the matter and considering past rulings, including a judgment in a similar case, directed the respondents to release the unpaid incentives along with 6% interest within four months.