In Brief
IFGL Refractories Ltd challenged the Orissa High Court's dismissal of its claim for capital investment and diesel generator subsidies sanctioned to its predecessor Indo Flogates for the MM Plant unit under Orissa's 1989 Industrial Policy. The Supreme Court held the MM Plant qualified as a "new industrial unit" with fixed capital investment made after the policy's effective date. The State's later denial based on exhausted subsidy limits from prior policies was unsustainable, as such limits applied only to expansions, not new units. The Court found respondent authorities had created a binding legitimate expectation through sanction letters and repeated assurances. It directed disbursement of Rs. 11,14,750 plus 9% interest within three months.
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