DYNAMIC, A PARTNERSHIP FIRM Vs. UNION OF INDIA,

JUDGEMENT

(1.) The petitioner is a firm engaged in the manufacturing of netting fabrics. The Government of India had, in 2007, formulated a scheme entitled Technology Upgradation Fund Scheme (TUFS/scheme in short), for payment of subsidy comprising margin money of 15% to eligible persons. The main object of the scheme is to enable modernization and infrastructure development in this sector, such that domestic industry could withstand the pressure created by globalization and international competition.

(2.) The 4th respondent is one of the nodal agencies for channelizing credit link capital subsidy for the upgradation sought to be achieved in Small Scale Textile and Jute Industries. The role of R4/Canara Bank was to sanction and advance loans after verifying the eligibility of applicant industries, in term claim margin money subsidy of 15% on the investment made and thereafter, credit the same in the bank account of the applicant, maintained with them.

(3.) The petitioner approached R4 in respect of the proposed modernisation for purchase of seven imported single jersey circular knitting machines and was sanctioned a loan for a sum of Rs.72.73 lakhs. The remainder of the project cost was borne by the petitioner. Since the sanction was on 29/3/2007, R4 bank was of the view that the petitioner was ineligible for the then prevailing scheme and did not process the application for the grant of the scheme then prevalent. R4 however does not appear to have put the petitioner to notice of its conclusion, as aforesaid.