SHYAM COLD STORAGE Vs. UNION OF INDIA

JUDGEMENT

(1.) The instant writ petition has been filed by the petitioner seeking a writ for setting aside and quashing the letter bearing No.NHB/IPA-Sri Shyam Cold Storage/2018-19 dtd. 2/5/2018 as well as the letter bearing No.NHB/IPA/18AAS/OCS/000015/2018-19 dtd. 1/8/2018 and further a declaration that the petitioner is entitled to either In Principle Approval (IPA) for construction of the cold storage under NHB's new scheme "Capital Investment Subsidy Scheme for construction/expansion/modernization of cold storage and storages for horticultural produces" or "Letter of Intent" (LOI) as per the earlier scheme as on 30/3/2017 and further seeking a direction that the In Principle Approval as per the new scheme or the Letter of Intent as per the old scheme be issued to the petitioner.

(2.) The facts involved in the instant case is that the petitioner which is a proprietorship firm on coming to learn about the various schemes of the National Horticulture Board (NHB) decided to open up a cold storage with storage capacity of 11000 MT for storage of vegetables and fruits at Palashbari Road, Village- Sorapara, Mouza-Chayani of Palashbari Revenue Circle. In that regard, the petitioner firm had approached the respondent authorities and Operational Guidelines were issued to the petitioner firm for the project. It is claimed by the petitioner that the petitioner firm changed its financial position and applied for term loan from the Punjab National Bank, Fancy Bazar Branch. The term loan was sanctioned on 9/3/2017 for an amount of Rs.600.00 lakhs. It is further stated that the petitioner thereupon filed an application for obtaining the Letter of Intent (LOI) as per the scheme on 30/3/2017. Along with the said application, the petitioner submitted various documents. The said application however was returned on 3/4/2017 stating inter-alia that various documents were not placed on record. It is not known as to whether the petitioner thereupon pursued on the basis of the said application filed on 30/3/2017, but one aspect is clear from a perusal of the paragraph No.8 of the writ petition that the petitioner applied afresh on 24/1/2018 which clearly goes to show that the petitioner has foregone the earlier application process. It is however relevant to take note of that on 15/8/2017, a Public Notice was issued by the National Horticulture Board wherein it was mentioned that the said Board has introduced In Principle Approval (IPA) system w.e.f. 1/4/2017 for the credit linked back-ended subsidies scheme on commercial horticulture and cold storage. It was also mentioned that the online applications in prescribed format would be accepted only for new projects where the bank has sanctioned term loan on or after 1/4/2017. Further to that, it was also clearly mentioned that the online applications would be accepted between 1/9/2017 to 30/9/2017. It is also relevant to take note of the Operational Guidelines for Capital Investment Subsidy Scheme for construction/expansion/modernization of cold storage and storages for horticulture in relation to the new scheme. The said Operational Guidelines is a part of Annexure-III to the writ petition. In terms with the said Operational Guidelines, it was mentioned that from 1/4/2017, In Principle Approval is mandatory for availing financial assistance under credit linked back-ended subsidy schemes of NHB. Further to that, it was also mentioned that it was mandatory to submit the online IPA in the prescribed format available on Board's website and with the online application, it was made necessary to upload copy of detailed term loan sanction letter of Bank/FI (In Principle Sanction Letter/Bank Consent letter not accepted) issued on or after 1/4/2017 for a new project/activity and a copy of the DD as proof of payment of application fee, in case payment is not made online. Therefore, from a perusal of Annexure-III to the writ petition it is clear that to avail under the new scheme, the sanctioned term loan has to be on or after 1/4/2017 and the same also to be done within the period of 1/9/2017 to 30/9/2017. It is also clearly mandated that in order to avail the credit linked back-ended subsidy, the In Principle Approval was mandatory.

(3.) Be that as it may, the petitioner who applied on 24/1/2018 under the new scheme, its application was rejected vide the communication dtd. 2/5/2018 on the grounds that the petitioner's term loan was sanctioned prior to 1/4/2017 and secondly on the ground that the petitioner did not apply within the period from 1/9/2017 to 30/9/2017. This communication dtd. 2/5/2018 has been put to challenge in the instant proceedings. Further to that, on 1/8/2018, the Deputy Director of National Horticulture Board informed the Chief Manager of the Punjab National Bank that the petitioner was not entitled to the subsidy on the ground that promoter of the petitioner neither got the Letter of Intent from the National Horticulture Board nor got online registered with NHB upto 30/9/2017 for claim of direct subsidy without availing LOI from NHB. This communication has been impugned in the instant writ petition.