The main legal point established in the judgment is that the petitioner was entitled to the subsidy as per the Central Sector Investment Promotional Scheme for Development of Non-forest Wastelands, and the respondent's failure to release the subsidy was unjustifiable. The court also applied the principle of promissory estoppel, holding the respondent accountable for their obligation to pay the subsidy.

JUDGMENT

A.K. Shrivastava, J.

1. By this petition under Articles 226 and 227 of the Constitution of India the petitioner is seeking following reliefs:--

(i) That, this Hon'ble Court may kindly be pleased to issue a writ in the nature of mandamus directing the respondent No. 1 to immediately release the subsidy to the petitioner in accordance with their Scheme Annexure P/1.

(ii) That, this Hon'ble Court may kindly be pleased to issue a writ in the nature of mandamus directing the respondent No. 1 to adequately compensate the petitioner for the loss having been incurred by him due to the non-release of subsidy.

(iii) It is, therefore, prayed that the respondent No. 1 be directed to reimburse the petitioner for the extra amount of interest which the petitioner has been required to pay to the financial institution due to no release of the subsidy.

(iv) Any other relief which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case may also be awarded in favour of the petitioner together with cost of the petition.

The Department of Wastelands Development, Ministry of Rural Areas and Employment, New Delhi (hereinafter referred to as the 'first respondent') promulgated a scheme namely "Central Sector Investment Promotional Scheme for Development of Non-forest Wastelands" and for this purpose constituted the National Wasteland Development Board of Department. The Scheme has been annexed as Annexure P/1. The Scheme was framed with an object of facilitating/attracting/channelizing/mobilizing resources from all financial Institution, corporate bodies including Industries and other entrepreneurs for development of Wastelands in non-forest areas belonging to the Government local bodies or private individuals and for facilitating and production and flow of additional Bio-mass and forestry products used as raw materials for different type of Industries as well as generation of employment through such activities.

2. Further the case of the petitioner is that the aforesaid Scheme provides for making available by way of Central Assistance Promotional Grant/promotional subsidy to the extent of Rs. 25, 00,000/- or 25% of the total cost of the project, whichever is less. The Scheme would be sanctioned on the basis of its techno-economic feasibility and its financial viability affirmed by financial Institutions/Banks.

3. The petitioner applied under the said Scheme and undertook the development of wastelands and floated a scheme in respect of Khasra No. 528, area 9 hectares of Village Ghat Biroli, Tahsil Multai, District Betul which is totally un-irrigated hilly wasteland. The project proposed undertaking of Eucalyptus plantation on the said land and which could not only resulted in reclaiming the abovementioned wasteland resulting in forestation as well as conservation of soil and water but also facilitate production and flow of additional Bio-mass for the purposes of use as raw material in the paper Industries in the vicinity. The project report of the petitioner is Annexure P/2.

4. The project of the petitioner was submitted for sanction to respondent No. 2-Central Bank of India, Ghat Biroli, District Betul which was duly forwarded to the Regional Office of the Bank who accorded its sanction to the project on 4-5-1996 Annexure P/3. The said project involved a total investment of Rs. 6,78,350/- spread over a period of six years with first year initial requirement of Rs. 3,71,950/-. In accordance with the project, a term loan of Rs. 5,08,765/- was sanctioned after deducting the petitioner/promoter contribution of Rs. 1,69,585/- and out of the abovementioned sanctioned amount an initial amount of Rs. 3,39,180/- was released as term loan to the petitioner. As per the Scheme (Annexure P/1) of the respondent No. 1, the subsidy equal to the promoter contributor i.e. 25% of the project cost amounting to Rs. 1,69,585/- was to be paid by the first respondent.

5. It is also the case of the petitioner that petitioner submitted his proposal