TaxTMI 
TaxTMI 
2013 (8) TMI 547
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..../ direction/ command to respondents to extend the benefit of the Master Circular as issued by Reserve Bank of India ; Scheme of 2010 as propounded by the State of M.P. and any other connected benefits as flowing from the Act of 2006 and any other enactment Rules/ Regulations/ Circulars/ Notifications, etc. applicable to the instant case, forthwith; (iii) That, this Hon'ble Court may further be pleased to restrain the respondents from taking any coercive or deterrent action against the petitioner which may obstruct its revival in terms of the Master Circular of RBI, Scheme of 2010 or any other enactment, Rules, Regulations, Circulars, Notifications, etc. (iii) (a) That this Hon'ble Court be pleased to direct Respondent No.2 to forward revised document Annexure- P/25 (with the Rejoinder) to its Nodal Branch at Delhi for onwards submission to the Ministry of Food Processing Industry, Govt. of India towards compliance for release of second installment of subsidy." 2. During the course of hearing of this writ petition, parties agreed that as far as the Relief (iii)(a) is concerned, the matter is now with the Government of India for releasing of the subsidiaries and, therefore, ....
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....ter Circular. Clause 4.6 of the Master Circular takes note of the definition of sick industry and contemplates two requirements to be fulfilled for coming within the purview of sick industry and if a industry comes within the aforesaid purview and the parameters indicated therein then they are entitled for grant of relief as indicated in Para-4.6. 7. Grievance of the petitioner is that the petitioner fulfills all the requirements for being declared as a sick industry, inspite thereof, the relief with regard to benefit contained in the Master Circular is not granted to the petitioner. Shri Manoj Sharma took me through various circulars as indicated hereinabove, the communication made between the parties, the balance sheets, the documents with regard to profits and losses and various other documents and tried to demonstrate before this Court that the petitioner fulfills all the requirements to come within the purview of sick industry and inspite of fulfilling all these requirements, the benefit of rehabilitation as contained in the Master Circular is not granted and, therefore, the mandamus is sought in this regard. 8. Shri Sanjay Agrawal, learned counsel for the respondents re....
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....n for availing of the relief of the Master Circular is fulfilled and, therefore, it is stated that the mandamus can be issued. For canvassing his contention, and for implementing a scheme of Reserve Bank of India, by way of a mandamus Shri Manoj Sharma invited my attention to a judgment rendered in the case of Central Bank of India Vs. Ravindra and others 2002 (1) SCC 367 and in the case of Sardar Associates and others Vs. Punjab & Sind Bank and others 2009 (8) SCC 257. 11. In sum and substance, it is the contention of Shri Manoj Sharma that as a case for applicability of the Master Circular is made out, the mandamus in this regard be issued. 12. I have heard learned counsel for the parties and perused the record. As far as issuing a mandamus for implementing a circular issued by the Reserve Bank of India is concerned, the Constitution Bench of the Supreme Court in the case of Central Bank of India (Supra) in Para 55 and 56 has considered this aspect of the matter and it has been held that the directives and circulars issued by the Reserve Bank of India not only have statutory flavour but in contravention thereof or in default in compliance thereof is punishable under Sub-sectio....
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....ast to the extent of deposit of sale proceeds. Following are broad parameters for grant of relief and concessions for revival of potentially viable sick SSI units: (i) Interest on Working Capital: Interest 1.5% below the prevailing fixed/prime lending rate, wherever applicable. (ii) Funded Interest Term Loan: Interest Free (iii) Working Capital Term Loan: Interest to be charged 1.5% below the prevailing fixed/prime lending rate, wherever applicable. (iv) Term Loan: Concessions in the interest to be given not more than 2% (not more than 3% in the case of tiny/decentralised sector units) below the document rate. (v) Contingency Loan Assistance: The Concessional rate allowed for working capital A circular was issued to all scheduled commercial banks vide RPCD.No.PLNFS.BC.57/06.04.01/2001-02 dated January 16, 2002 thereby advising implementation of the Kohil Committee Recommendations." 14. It is clear from the aforesaid requirement that a unit is considered as sick when any of the borrowal account of the unit remains substandard for more than 6 months or there is erosion in the net worth due to accumulated cash losses to the extent of 50% of its n....