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2026 Supreme(Ori) 553

IN THE HIGH COURT OF ORISSA AT CUTTACK
ANANDA CHANDRA BEHERA, J.
Ramesh Chandra Panda – Appellant
Versus
State of Odisha and Others – Respondents
W.P. (C) No. 16506 of 2025
Decided On : 28-01-2026

Advocates Appeared:
For the Appellant : B. Jalli
For the Respondents: U. Padhi, K. Jena

A delay in project completion caused by COVID-19 pandemic conditions is justifiable, and subsidy claims should not be denied based on arbitrary deadlines.

Headnote:(A) Constitution of India, 1950 - Articles 226 and 227 - Writ petition seeking quashing of a government order denying subsidy under Mukhyamantri Krushi Udyog Yojana due to project delays attributed to COVID-19 - Entitlement to a 40% subsidy on project cost claimed. (Para 1)

(B) Government subsidy schemes - These are designed to attract entrepreneurship and promote agricultural initiatives, and the delay caused by unforeseen COVID-19 circumstances justifies extension of project deadlines without penalizing the applicant. (Para 10)

Facts of the case:
The petitioner applied for a subsidy of 40% of the project cost for an agriculture project after securing a loan, but the request was denied due to delays in project completion caused by the COVID-19 pandemic. (Paras 1-3)

Findings of Court:
The court found that the delay was not intentional or deliberate and highlighted that the project completion timeframe should be extended due to COVID-19. (Paras 8-9)

Issues: Whether the rejection of the subsidy claim based on the project not being completed on time was justified given the pandemic's impact resulting in delays. (Para 4)

Ratio Decidendi: The court ruled that the delay was due to circumstances beyond the petitioner's control and that the rejection of the subsidy was not justified under law, given the provisions of the MKUY scheme. (Paras 4, 9, 14)

Result: Writ petition allowed; the order denying the subsidy was quashed and the subsidy ordered to be disbursed within 15 days. (Paras 16-18)

Table of Content
1. factual basis for subsidy claim (Para 1 , 2 , 4)
2. petitioner seeks remedy for subsidy claim rejection (Para 3)
3. court's analysis on agricultural scheme coverage (Para 5 , 6 , 7 , 8)
4. implications of unforeseen circumstances under law (Para 9 , 10 , 12)
5. entitlement of subsidy despite delay (Para 13)
6. court's ruling and direction for subsidy disbursement (Para 14 , 15 , 16)

JUDGMENT :

ANANDA CHANDRA BEHERA, J.

1. This writ petition under Articles 226 and 227 of the Constitution of India, 1950 has been filed by the petitioner praying for quashing the Letter/Order dated 16.04.2025 under Annexure-3 issued/passed by the Opp. Party No.6 (The Managing Director Agriculture Promotion & Investment Cooperation of Odisha i.e. APICOL) and to direct the Opp. Parties including the Opp. Party No.6 for releasing the subsidy of 40% of the project cost (fixed capital) limited to Rs.50,00,000/- (rupees fifty lakhs only).

2. The factual backgrounds of this writ petition which prompted the petitioner for filing of the same is that, on being alured by the scheme/yojana of “Mukhyamantri Krushi Udyog Yojana” (MKUY) published through the Notification of the Government, Department of Agriculture & Farmers’ empowerment to ease of doing Agri-business with simple, transparent, online and time bound implementation of the said Yojana for the larger interest of the agri-entrepreneurs of the State, the petitioner being an agriculturist applied for establishing a layer farming of 30,000 bird capacity in his landed properties in Mouza-Dimiria under Khalikote Police Station in the District of Ganjam in the name of its project as Maa Tarini Poultries Private Limited and made an application for the sanction of loan for his such project as per MKUY Scheme/Yojana and after considering his application and on fulfilment of all the criterias of such Scheme/Yojana, a loan of Rs.1,80,00,000/- was sanctioned by the Opp. Party No.3 (The Chief District Veterinary Officer-Cum-Nodal Officer MKUY (ARD), Ganjam) in favour of the petitioner towards the above project cost of the petitioner and the Opp. Party No.3 requested Opp. Party No.7 (The Branch Manager, Indian Bank, Berhampur, City High School Road, Berhampur) for releasing the said loan amount in favour of the petitioner and accordingly, a Go-Ahead Letter vide Annexure -4 was issued on dated 25.05.2021 by the Opp. Party No.3 in favour of the petitioner and the Opp. Party No.3 also issued a letter vide Annexure-5 to the Opp. Party No.7 for extending cooperation through necessary financial support to the petitioner for the establishment of the project of the petitioner. During that time, Covid-19 pandemic was continuing all over the country and the same was at its peak stage. As the “Go-Ahead Letter” vide Annexure-4 was issued during the time of continuation of Covid-19 Pandemic, for which, the project works of the petitioner could not be progressed effectively for the non- availability of man powers. So, after lifting of the lockdown and shut down measures of Covid-19 Pandemic, the project works of the petitioner progressed slowly. Because, soon after the lifting of the Covid-19 pandemic, required number of man powers were not available only for the reason that, the persons/labourers those were affected in Covid-19, they were not physically fit to resume their works immediately. However, the petitioner could able to complete his project work by the end of March 2024 and intimated the same to the Opp. Parties. For which, on 06.05.2024, the project of the petitioner was inspected physically by the Engineer of Indian Bank and a report about the completion of project of the petitioner was given on dated 07.05.2024 vide Annexure-7.

As per the guidelines of “Mukhyamantri Krushi Udyog Yojana” (MKUY) and as per Annexure-4, the petitioner was entitled for the subsidy of 40% of the project cost (fixed capital) limited to Rs.50,00,000/- on completion of his above project, but, when in spite of approach of the petitio

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