BHUPINDRA GRAM UDYOG SAMITI Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS order will dispose of bunch of cases bearing Civil Writ Petition Nos. 11390 to 11395 of 2000 as common questions of law and facts are involved.

(2.) THE facts are extracted from Civil Writ Petition No. 11390 of 2000.

(3.) THE pleaded facts are that the petitioner is a "Samiti" registered under the Cooperative Societies Act, which had set up brick kiln after obtaining licence from the District Food and Supplies Controller, Moga. The Punjab Khadi and Village Industries Board, Chandigarh (for short "the Board") framed Rules named as the Punjab Khadi and Village Industries Loan Rules, 1958 (for short "the Rules"). The same came into force with effect from April 1, 1958. In terms of Rule 4 of the Rules, the loans and grants could be advanced by the Board for the purpose of capital expenditure, working capital and share capital, loans for capital formation to registered institutions etc. The cooperative society is eligible in terms of Rule 5 of the Rules for obtaining loan. In terms of Rule 9 of the Rules, margin money subsidy was also available to the loanee to the extent of 25% upto Rs. 10 lacs and 10% on the loan exceeding Rs. 10 lacs to Rs. 25 lacs. Initially the subsidy amount was to be released as interest free loan and after successfully working and repayment of loan, it was to be adjusted as margin money subsidy. The relevant Rule is extracted below :-