SAWHNEY BROTHERS Vs. UNION OF INDIA

JUDGEMENT

(1.) These appeals have arisen out of the common judgment and order passed by the learned Single Judge on 6th August, 2004 whereby three writ petitions filed by the appellants herein were dismissed. Issue under consideration in the writ petitions was eligibility of the petitioners for the benefit of Central Interest Subsidy Scheme (Revised) for November 1984 Riot Affected Borrowers (for short 'the Scheme').

(2.) The appellants herein, who are sister concerns, have been carrying on business of export of garments since 1969. For the purpose of their business they had borrowed funds from two different banks namely, Bank of Rajasthan and Indian Bank. The appellants claim that they had suffered during the anti-Sikh riots which took place in the year 1984. It is stated that on the evening of 30th October, 1984 miscreants entered the factories of appellants and looted and burnt the same. With financial support from the said banks by way of special over draft limits against export documents, the appellants were able to reconstruct their factories and re-establish their export business.

(3.) It is relevant to mention at this stage that the Central Government propounded a scheme called "Central Interest Subsidy Scheme (Revised)" for November, 1984 Riot Affected Borrowers (hereinafter called "the Scheme"). The Scheme came into force from 1st September, 1993 and effective date for the same was stipulated as 31st March, 1992. The appellants state that they came to know about the aforesaid Scheme only sometime in November, 1994 and upon such knowledge they wrote a letter dated 7th November, 1994 to the Bank of Rajasthan Limited asking for refund of excess interest charged on advances allowed under post-shipment as well as pre-shipment in terms of the said Scheme. The stand taken by the appellants in the said letter was that the Reserve Bank of India had issued directions to all the banks that all the borrowers who were affected by the November, 1984 riots would be eligible for relief if any loan was outstanding during the period of November, 1984 till March, 1992 in terms of the said Scheme. The Scheme provides that interest @ of only 1% per annum 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 RBI. The appellants state that they are also 1984 riot affected companies and, therefore, they are entitled to the benefit of the aforesaid Scheme. Consequently, a request was made in the above-mentioned letter that the excess interest charged by the bank from the appellants against all advances allowed against export documents be refunded. A similar letter was also addressed on 30th November, 1994 to the Indian Bank. However, neither of the banks accepted the request of the appellants stating that the appellants' are not deserving cases as they were profit making concerns and therefore did not come within the ambit of the aforesaid Scheme.