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2011 Supreme(AP) 516

C.V.NAGARJUNA REDDY
Katta Ramesh – Appellant
Versus
Branch Manager, State Bank of India, Sattenapalli, Guntur District – Respondent


Advocates Appeared:
For the Petitioners:B. Chinnapa Reddy, Advocate.
For the Respondents:R1, G.V.S. Meher Kumar, R2, None, R3, K. Rajitha, Advocates.

Judgment :

At the interlocutory stage, the Writ Petition is taken up for hearing and disposal with the consent of the learned counsel for the parties.

2. This Writ Petition is filed for a Mandamus to declare the action of the respondents in not giving credit of 25% of the capital cost subsidy in respect of loan account No.11247206329 on purchase of harvesting machinery ‘Class Crop Tiger (Track Model)’, as illegal and arbitrary.

3. Petitioner No.1 is the son of petitioner No.2. On 25.09.2006, petitioner No.1 made an application for sanction of loan to respondent No.1 for purchase of a harvesting machine under the scheme for development/strengthening of agricultural marketing infrastructure, grading and standardisation evolved by the Government of India with respondent No.2 as its implementing agency. The scheme inter alia provides for 25% investment subsidy on the capital cost up to Rs.50 lakhs and in case of SC and ST farmers, the subsidy component is 33.33%. It is the pleaded case of the petitioners with respect to which there is no dispute that respondent No.1 Bank has processed the loan application treating the same as dated 01.11.2006 and vide its letter dated 17.11.2006, it has
















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