FLUID POWER ENTERPRISES Vs. DEPUTY GENERAL MANAGER

JUDGEMENT

(1.) The petitioner filed the present writ petitions for a writ of mandamus directing the respondent Nos.1 and 3 to consider his representations dated 07.11.2014 as per Annexures 'A' and 'G', to re-consider Subsidy Scheme to his enterprises under Credit Linked Capital Subsidy Scheme ('CLCSS' for short) of Rs.3,73,490/- as forwarded on 12.03.2012 by State Bank of Mysuru, SME Branch, Peenya Industrial Area, Bengaluru-560 058.

(2.) It is the case of the petitioner that the petitioner being the proprietor of M/s. Fluid Power Enterprises, opened small-scale industries during the year 2000 for establishment and intended to integration for technology upgradation in his industry, installation of CNC vertical machine centre. For purchase of CNC vertical machine, the petitioner approached third respondent - Bank during the month of June, 2011 for borrowing a loan of Rs.12,00,000/-. The third respondent - Bank sanctioned a loan on 14.01.2012 and disbursed to the petitioner account on 25.01.2012. Accordingly, the petitioner has installed the CNC vertical machine on 01.02.2012 in the petitioner's industry. Subsequently, for installation of the above said machinery in the petitioner's industrial shed, petitioner made necessary application for sanction of Credit Linked Capital Subsidy of Rs.3,73,490/- @ 15% cost of machinery as per CLCSS Scheme on 10.03.2012 to the third respondent - Bank. It is further contended that the petitioner entered into an agreement with third respondent - Bank on 12.03.2012 for purchase of CNC vertical machine under CLCSS Scheme. As per the terms and conditions of the agreement, the petitioner is entitled to get the said benefit. The Government of India appointed Small Industries Development Bank of India as Nodal Agency and permitting the financial institution/bank under the scheme for claiming capital subsidy on the terms of loan sanctioned and disbursed by the financing institution/bank to the beneficiary. As per the terms and conditions of the said agreement, the petitioner is entitled to get the benefit of CLCSS subsidy scheme. On the basis of petitioner's application dated 10.03.2012, the third respondent - bank send the application for release of Capital Subsidy under CLCSS Scheme on 12.03.2012. The third respondent - bank also approved eligibility of petitioner's unit, who have been sanctioned loan for procurement of eligible plant and machinery.

(3.) It is further contended that the things stood thus, the third respondent - bank send a letter dated 06.06.2012 to the petitioner informing about return of CLCSS subsidy due to the non application of mind and it is also informed that the petitioner is eligible under the scheme only from 16.01.2012, whereas the loan was sanctioned on 14.01.2012. Therefore, the petitioner made representation to the third respondent - Bank for consideration of the benefit under subsidy scheme. Even after submitting representations to the respondent Nos.1 and 3 as per annexures 'A' and 'G', respectively, the respondents have not considered, nor passed any orders till the date of filing the writ petitions. Therefore, the petitioner is before this Court for a writ of mandamus.