M/S Jairaj Ancillaries Pvt. Ltd, Faridabad Vs State of Haryana and Others — Punjab & Haryana HC (2025) — LawSathi Research

M/S Jairaj Ancillaries Pvt. Ltd, Faridabad Vs State of Haryana and Others — Punjab & Haryana HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Impugned orders dated December 08, 2022 (Annexure P-5), May 20, 2023 (Annexure P-6) and September 22, 2023 (Annexure P-8) set aside; authority concerned directed to decide the petitioner's application on merit without raising any limitation issue and to pass a reasoned order within three months; connected applications, if any, also disposed of.

Issue for consideration

Whether the online portal was functioning on the date the petitioner was required to make its application, and whether the authority considered this position. +2 more

Court's answer

The Court found that the web-portal was admittedly not functioning for more than six months since the commencement of the petitioner's commercial production (or from issuance of the Notification dated December 24, 2020), and that there is nothing on record showing any notification on the website or otherwise intimating manufacturing units about the functioning of the portal.

Ratio / Principle

In order to render substantial justice between the parties, the Court set aside the impugned orders dated December 08, 2022 (Annexure P-5), May 20, 2023 (Annexure P-6) and September 22, 2023 (Annexure P-8), and directed the authority concerned to decide the petitioner's application on merit without raising any issue with regard to limitation.

Key takeaways

The authority concerned was directed to pass a reasoned order on the petitioner's application within a period of three months.ratio¶33

Detailed headnote1 paragraphs

WRIT PETITION (CIVIL) - DISPOSED OF. The petitioner, an MSME unit in existence since December 24, 2020, sought benefits/exemptions under a Notification dated December 24, 2020 issued by the Ministry of Minor, Small and Medium Industries, which required eligible industrial units to apply on the Department's web-portal within three months of commencement of commercial production or of the scheme notification, whichever was later. The petitioner's window expired around March 20/24, 2021, but the portal was not working and it could apply only on April 01, 2022. The Additional Director rejected the application as time-barred vide order dated December 08, 2022 (Annexure P-5) and stamp duty was not refunded; the appeal before respondent No.1 Additional Chief Secretary was dismissed vide order dated May 20, 2023 (Annexure P-6); and the revision petition was dismissed vide order dated September 22, 2023 (Annexure P-8). Under Clause 9 of the Notification, the director general could condone delay up to three months and, for delays beyond three but up to six months, respondent No.1 Additional Chief Secretary could do so. Per the State's reply, the web-portal was not functional till July 27, 2021. Holding that the portal lay non-functional for over six months with no notification on the website or otherwise intimating manufacturing units of its functioning, and in order to render substantial justice, the Court set aside all three impugned orders, directed a fresh decision on the application on merits without raising any limitation issue, and required a reasoned order within three months. Writ petition disposed of along with connected applications, if any (Lapita Banerji, J., oral; decision dated March 26, 2025).

CWP-17249-2024 (O&M)

1

203 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-17249-2024 (O&M) DATE OF DECISION : 26.03.2025

M/S JAIRAJ ANCILLARIES PRIVATE LIMITED, FARIDABAD

... PETITIONER

V/S

STATE OF HARYANA AND OTHERS ... RESPONDENTS

CORAM: HON'BLE MS. JUSTICE LAPITA BANERJI

Present: Mr. Rahul Gautam, Advocate for the petitioner.

Mr. Sumit Gupta, Addl. A.G., Haryana.

LAPITA BANERJI, J. (ORAL)

Learned counsel appearing on behalf of the petitioner submits that the petitioner is a MSME Company/Unit which came into existence on December 24, 2020. The Ministry of Minor, Small and Medium Industries issued a Notification dated December 24, 2020 (Annexure P-3) whereby several benefits/exemptions were given to such units, provided, the application was made by the eligible Industrial units on the web-portal of the Department in prescribed application forms along with attachments, within three months from commencement of commercial production or within three months from the date of the notification of the scheme, whichever was later.

The petitioner tried to apply on the web-portal by March 20, 2021 i.e. within three months from the date of the commercial production

JANKI BHATT 2025.04.03 20:11 I attest to the accuracy and integrity of this document High Court Chandigarh

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CWP-17249-2024 (O&M)

even though the application could have been made by March 24, 2021 (by three months of the publication of the notification). Three months of the commercial production would have ended on March 20, 2021. As the portal was not working, the petitioner could only apply on April 01, 2022. The application was rejected as being time barred by the Additional Director vide the impugned order dated December 08, 2022 (Annexure P-5) and illegally, the petitioner’s stamp duty was not refunded.

The petitioner had filed an appeal before the respondent No.1Additional Chief Secretary but the said appeal was also dismissed vide impugned order dated May 20, 2023 (Annexure P-6).

The petitioner also filed the revision petition. Vide impugned order dated September 22, 2023 (Annexure P-8), the same was also dismissed.

Notice was issued by a Co-ordinate Bench of this Court on July 25, 2024. The State was directed to file a reply on the issue whether the online portal was functioning on the date when the petitioner was required to make its application. The issue whether the authority considered this position was also had to be responded to.

Learned State counsel filed Reply, in compliance of the order dated July 25, 2024.

From the said reply, it appears that the petitioner was required to apply by March 20, 2021 within three months from the date of commercial production. The web-portal was not functional till July 27, 2021 but the petitioner applied on April 01, 2022. Hence, there was a delay of approximately 08 months from the functioning of the web-portal and the petitioner’s application. Therefore, the authority concerned opined that the

JANKI BHATT 2025.04.03 20:11 I attest to the accuracy and integrity of this document High Court Chandigarh

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CWP-17249-2024 (O&M)

argument of the petitioner regarding non-functioning of the web-portal had no legs to stand on.

This Court has heard the learned counsel for the parties and perused the material on record.

Under Clause 9 of the Notification dated December 24, 2020, the director general had the power to condone the delay upto a period of three months. After the expiry of three months but up to a period of six months after the prescribed limit, the respondent No.1-Additional Chief Secretary could condone the delay.

Admittedly, the web-portal was not functioning for a period of more than six months since the date when the commercial production of the unit had started or from the date on which the Notification dated December 24, 2020 was issued. There is nothing on record to show that there was any notification on the website or otherwise to intimate to the manufacturing units about the functioning of the portal.

Therefore, this Court is of the view that in order to substantial justice between the parties, the impugned orders dated December 08, 2022 (Annexure P-5), May 20, 2023 (Annexure P-6) and September 22, 2023 (Annexure P-8) are set aside and the authority concerned is directed to decide the petitioner’s application on merit, without raising any issue with regard to limitation.

The authority concerned shall pass a reasoned order within a period of three months from the date.

With the directions aforesaid, writ petition being CWP-172492024 is disposed of.

JANKI BHATT 2025.04.03 20:11 I attest to the accuracy and integrity of this document High Court Chandigarh

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CWP-17249-2024 (O&M)

Connected applications, if any, are also accordingly disposed

of.

26.03.2025 (LAPITA BANERJI) Janki JUDGE

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

JANKI BHATT 2025.04.03 20:11 I attest to the accuracy and integrity of this document High Court Chandigarh