W.P No.13626/2020

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 26^TH DAY OF AUGUST, 2021

BEFORE

THE HON’BLE MR. JUSTICE P.S. DINESH KUMAR

WRIT PETITION No.13626 OF 2020 (GM-RES)

BETWEEN :

1.

HIMATSINGKA SEIDE LIMITED

A COMPANY REGISTERED UNDER

THE COMPANIES ACT

HAVING ITS REGISTERED OFFICE

AT NO.10/24, KUMARA KRUPA ROAD

HIGH GROUNDS

BENGALURU-560 001

REPRESENTED BY ITS

AUTHORISED SIGNATORY

MR. C.B. GANAPATHY

AGED ABOUT 47 YEARS

RESIDING AT #002, ALL SEASONS

7 EAGLES STREET, LANGFORD TOWN

BENGALURU-560 025

2.

MR. UMASHANKAR A.R

S/O MR. RAJARAM

AGED ABOUT 42 YEARS

RESIDING AT NO.59, 1^ST CROSS

GOVERNMENT PRESS LAYOUT

ULLAL MAIN ROAD

BENGALURU-560 056 ... PETITIONERS

(BY SHRI. ADITYA SONDHI, SENIOR ADVOCATE FOR

SHRI. KARAN JOSEPH, ADVOCATE)

AND :

1.

THE UNION OF INDIA

REPRESENTED BY THE SECRETARY

MINISTRY OF TEXTILES

W.P No.13626/2020

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UDYOG BHAWAN

NEW DELHI-110 011

2.

THE TEXTILE COMMISSIONER

MINISTRY OF TEXTILES

NO.48, NEW MARINE LINES

NISHTHA BHAVAN

(NEW CGO BUILDING)

CHURCHGATE

MUMBAI-400 020

... RESPONDENTS

(BY SMT. SAROJINI MUTHANNA, CGSC FOR R1 AND R2)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227

OF THE CONSTITUTION OF INDIA PRAYING TO

QUASH THE

IMPUGNED ORDER DTD 26.02.2020 VIDE ANNX-M ISSUED BY THE R-2

AND DIRECT THE R-2 TO RELEASE TO THE PETITIONER THE SUM OF

RS.49,26,21,785/- (RUPEES FORTY NINE CRORE TWENTY SIX LAKH

TWENTY ONE THOUSAND SEVEN HUNDRED EIGHTY FIVE) UNDER THE

REVISED RESTRUCTURED TECHNOLOGY UPGRADATION FUND SCHEME

PURSUANT TO THE APPLICATION DTD 01.01.2016 VIDE ANNX-C.

THIS WRIT PETITION, HAVING BEEN HEARD AND RESERVED

FOR ORDERS ON 03.08.2021, COMING ON FOR PRONOUNCEMENT OF

ORDERS THIS DAY, THE COURT PRONOUNCED THE FOLLOWING:-

ORDER

Petitioner has presented this writ petition with a prayer

to quash order dated 26.02.2020 (Annexure-M) and to

direct

second

respondent

to

release

a

sum

of

Rs.49,26,21,785/-

under

the

Revised

Restructured

Technology Up-gradation Fund Scheme pursuant to its

application dated 01.01.2016 (Annexure-C).

W.P No.13626/2020

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2.

It is averred in the writ petition that petitioner is

a manufacturer of Home Textile products. In the year 1999,

Central Government introduced Technology Upgradation

Fund Scheme (TUFS) to catalyze investment in all sub-

sectors of Textile and Jute Industry by way of capital

subsidy

and

interest

disbursement.

By

resolution

No.6/2019/2013-TUFS, the Scheme was revised for the

period 01.04.2012 to 31.03.2017 and it was called as

Revised

Re-structured

Technology

Up-gradation

Fund

Scheme(RR-TUFS). Petitioners' claim under RR-TUFS was

approved to the extent of Rs.26.85 Crores for its Hassan

project. Since the project was a large one, funds were

sourced for each phase separately. For the Sheeting

Project, a Technology Upgradation Fund loan of Rs.180

Crores was sanctioned by the Export-Import Bank of India

vide sanction letter dated 08.10.2015. In pursuance of the

said sanction, petitioner submitted the application for

RR-TUFS subsidy on 01.01.2016 through iTUFS Online

W.P No.13626/2020

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portal seeking a subsidy of Rs.49,26,21,785/-. The subsidy

amount has not been paid. Hence, this writ petition.

3.

Shri. Aditya Sondhi, learned Senior Advocate

submitted that in the application submitted by the

petitioners, there were some minor discrepancies and the

same were rectified. The first petitioner has submitted the

application on 01.01.2016. The discrepancies have been

pointed out after eight months on 30.08.2016. They we