SAWHNEY BROTHERS Vs. UNION OF INDIA

JUDGEMENT

(1.) These three petitions have been filed by the sister concerns and all of them pertain to the Central Interest Subsidy Scheme (Revised) for November 1984 Riot Affected Borrowers (hereinafter referred to as 'the said Scheme'). The case of the petitioners is that they are eligible for the benefits under the said scheme. They borrowed funds from two different banks, i.e., the Bank of Rajasthan Limited and the Indian Bank. WP(C) 3997/1995 pertains to loans taken from the Rajasthan bank and the Indian Bank. WP(C) 4182/1995 is in connection with the loan taken from the Indian Bank and WP(C) 4183/1995 pertains to the loan taken from Rajasthan Bank.

(2.) It is not in dispute that the petitioners have been carrying on the business of export of garments since 1969. The petitioners had regularly been attending "pret-a-porter" fairs in Paris. For procuring export orders, the petitioners have to go abroad to attend such fairs. In October 1985, they attended the fair at Paris and procured good orders which were to be executed in October, November & December, 1984 for the next fair which was to be held in Paris. They obtained the raw material and kept the same in their two adjoining factories situated at A-18 and A-21, both at Sector-6, NOIDA (U.P.). On 30.10.1984, late Smt Indira Gandhi was assassinated and thereafter anti-Sikh riots ensued which are commonly known as the 1984 Riots. In the evening of 30.10.1984 miscreants entered into the factories of the petitioners and looted and burnt the same. Reports were lodged with the police and the fire brigade.

(3.) With financial support by way of allowing special over-draft limits against export documents by the said banks, the petitioners were able to reconstruct the factories and re-establish their export businesses. According to the petitioners, it is only on or about November 1994, that they acquired knowledge of the said scheme. By a letter dated 07.11.1994 (Annexure-'C' in WP(C)3997/95), the petitioners wrote to the Bank of Rajasthan Limited for refund of excess interest charged on advances allowed under post-shipment as well pre-shipment in terms of the said scheme. In the said letter, it was indicated that the petitioners had come to know from some reliable sources that the Reserve Bank of India (RBI) had issued directions to all the banks that all the borrowers who were affected by the 1984 Riots would be eligible for relief if any loan was outstanding during the period November 1984 till March, 1992 in terms of the said scheme. It was further mentioned therein that the scheme was to come into force w.e.f. 01.09.1993 under which interest @ 1% per annum (simple) only was to be charged and the balance interest amount due to the banks would be reimbursed by the Government of India to the banks as interest subsidy through the RBI. It was further stated in the letter dated 07.11.1994 that it was obligatory on the part of the banks to prepare the statement of advances allowed to the borrowers from time to time during the period mentioned above, i.e., November 1984 till March 1992 for the continuation of the business against which excess interest was charged by the banks and to claim reimbursement from the RBI in terms of the said directions. It was hoped that the statement of advances had been prepared by the bank and had been submitted to the RBI for reimbursement of the claim. Accordingly, a request was made in the letter that the excess interest charged by the bank from the petitioners against all the advances allowed against export documents be refunded. A similar letter dated 30.11.1994 was addressed on the same date to the Indian Bank also. Letters were also addressed in similar vein and sent to the RBI.