STATE OF U.P. vs M/S. S.K. THEATRE PRODUCTIONS & ORS.'

The Supreme Court held that under Clause 23.3 of the Uttar Pradesh Film Policy 2001, the subsidy for film production is to be calculated as 25% of the total production cost, not limited to processing charges. The Court found that the restriction imposed by the Directorate of Information, U.P. was contrary to the policy's intent, thus allowing the writ petition and directing the payment of the full subsidy amount claimed by the petitioner. The Court emphasized the need for clarity in government policies to ensure fair implementation.