Eligibility for government subsidies under the TUFS scheme cannot be denied due to procedural lapses of the Nodal Bank, upholding the principle that accrued rights must be honored.

ORDER :

N.SATHISH KUMAR, J.

Challenging the order of the second respondent dated 31.10.2018 rejecting the request of the petitioner to disburse the interest subsidy of 4% under TUFS, the present writ petition has been filed and also for a consequential direction to the third respondent for payment of Rs.1,97,36,557/- reflecting the Quarterly interest subsidy at 4% along with a delayed interest at 12% per annum to the petitioner.

2. Brief facts leading to filing of this writ petition are as follows:-

2.a. The Petitioner is a company engaged in the manufacture of 100% cotton yarn (spinning mills) with an installed capacity of 49536 spindles has manufacturing units in the States of Tamil Nadu and Karnataka. In order to modernize its facilities, the petitioner availed a term loan of Rs.10,00,00,000/- from the 3^rd respondent bank on 15.06.2010, which was duly accepted and confirmed as eligible for 4% interest subsidy under the Technology Upgradation Fund Scheme (TUFS) introduced by the Government of India by the third respondent vide letter dated 31.07.2010. Pursuant to the sanction of the loan, the petitioner complied with all conditions prescribed under the scheme and regularly filed the Quarterly Interest Subsidy Claims (QISC) through the 3^rd respondent bank within the stipulated time, so as to ensure that the 4% interest subsidy under the TUFS was applicable and payable to the petitioner unit. Despite such compliance, the interest subsidy amounts were not disbursed to the Petitioner. Repeated representations made to the bank and to the Office of the Textile Commissioner did not yield any result. The Petitioner was subsequently informed that its claims had been categorized as “Left Out Cases” and kept in abeyance on the ground that the relevant records were uploaded by the Nodal Bank only on 10.01.2014. The petitioner once again approached, the Ministry of Textiles, thereafter, the second respondent has sent the impugned letter dated 31.10.2018 stating that since, TUFS is a bank driven scheme and the eligibility is established by the concerned nodal banks. As per the available records, the details of the sanctioned term loan of Rs.10 crores on 14.06.2010 was uploaded by the third respondent only on 10.01.2014 as a Left Out Case and the Government has taken a decision not to extend the benefits to such left out cases under TUFS.

2.b. It is the grievance of the petitioner that though all requisite documents were furnished to the bank as early as during December 2010, and that any delay in uploading the records was solely attributable to the Nodal Bank and not to the petitioner. This position was later confirmed by the 3rd respondent bank through communication addressed to the 2nd respondent vide letter dated 07.12.2018, requesting consideration and release of the subsidy amounts. It is further stated that policy deliberations of the Inter-Ministerial Steering Committee recognized that delays not attributable to beneficiary units ought to be condoned and that “left out cases” should be reviewed for disbursement, however, notwithstanding such policy intent and repeated requests, the subsidy amount was not released. It is the further stated that the petitioner has paid all the payments towards the Term Loan from the third respondent and No Due Certificate is also issued to the petitioner by the third respondent on 26.12.2019, during the entire tenure of loan, the petitioner has paid a total sum of Rs.6,09,60,644/- towards the Quarterly Interest for the said Term Loan. To the abovementioned sum, the Quaterel