Pending MSME subsidy applications must be considered under the policy, including its September 2023 amendments.

The petitioner, an edible mustard-oil expeller unit, claimed to have established its industrial undertaking after making substantial investment in plant and machinery and obtaining the requisite statutory registrations and permissions.

It submitted an application dated 15 June 2022 seeking incentives/subsidy under the Madhya Pradesh MSME Development Policy, 2021. The application remained undecided. During its pendency, the State Government issued an order dated 13 September 2023 deleting Entry No. 12 from the list of ineligible industries and substituting Clause 5.5 of the Policy.

The petitioner approached the High Court under Article 226 seeking consideration of its pending application and extension of admissible benefits with effect from 13 August 2021.

1. Whether the petitioner’s pending application dated 15 June 2022 for incentives/subsidy was required to be considered and decided by the competent authority under the applicable provisions of the Madhya Pradesh MSME Development Policy, 2021, including the amendments made in September 2023?

2. Whether the petitioner was entitled to assessment, sanction and release of incentives/subsidy, with consequential benefits from 13 August 2021, subject to fulfilment of the prescribed eligibility conditions and statutory requirements?

The Court exercised its jurisdiction under Article 226 of the Constitution of India to issue a direction for consideration and disposal of the petitioner’s pending statutory/administrative claim.

The governing legal framework was the Madhya Pradesh MSME Development Policy, 2021, as amended by the State Government’s order dated 13 September 2023, including the deletion of Entry No. 12 from the list of ineligible industries and substitution of Clause 5.5.

The applicable rule was that the competent authority must consider the pending incentive/subsidy claim in accordance with the applicable policy provisions, while entitlement to benefits remained subject to satisfaction of all eligibility conditions and statutory requirements.

The Court noted that the petitioner’s application dated 15 June 2022 had not been finally decided and that the subsequent amendment to the MSME Policy could have a direct bearing on the petitioner’s claim.

Since the State itself agreed that the claim could be considered under the applicable policy, including the amended provisions, the Court found it appropriate to require a decision by the competent authority rather than determine the petitioner’s substantive eligibility in writ proceedings.

Accordingly, the Commissioner of Industries, Micro, Small and Medium Enterprises, was directed to examine the pending application, assess whether the petitioner satisfied the relevant conditions, and, if found eligible, sanction and release the admissible benefits with consequential relief in accordance with law.

The authority was directed to assess, sanction and release the admissible subsidy/incentive, including the claimed benefits from 13 August 2021 and consequential benefits, subject to the petitioner’s eligibility and compliance with statutory requirements, preferably within four weeks from receipt of a certified copy of the order.