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Showing contexts for: clcss in Ms Jupitor Polytex India vs Punjab National Bank on 30 March, 2026Matching Fragments
(j) Thus, the suit of the plaintiff is liable to be dismissed with costs.
6. The defendant/ the Secretary, MSME (Micro Small & Medium Enterprises) in its written statement inter alia pleaded that;
(a) That as per Clause 14 (viii) of the revised guidelines dated 20.04.2006 under the Credit Linked Capital Subsidy Scheme (CLCSS) issued by CS DJ 611372/2016 12 of 33 M/s Jupitor Polytex (India) Pvt. Ltd. Vs. Punjab National Ban & Anr. Judgment dated 30.03.2026 the Government of India, the eligible Primary Lending Institution (PLI), i.e., Punjab National Bank in the present case, is responsible for ensuring the eligibility of units for sanction of subsidy in accordance with the scheme guidelines, as well as for disbursement and monitoring of the assisted units. Accordingly, defendant No. 1 is responsible for determining eligibility for subsidy under CLCSS as per the applicable guidelines.
(b) That vide letter dated 25.05.2010, the defendant No. 1 sought clarification for eligibility of subsidy to the unit which was replied to defendant No. 1 vide letter dated 22.06.2010. Subsequently the unit vide letter dated 29.06.2010, sought clarification for subsidy under CLCSS which was replied to the unit vide this office letter dated 01.11.2010.
(c) That under the Credit Linked Capital Subsidy Scheme (CLCSS), eligibility for subsidy is determined with reference to the date of sanction of the Term Loan. As per the prescribed procedure, any technology/plant and machinery becomes eligible for subsidy only from the date it is approved by the Technical Sub-Committee under the scheme, and such approval does not operate retrospectively. Consequently, loans sanctioned prior to the approval of a particular technology/plant and machinery do not qualify for subsidy.
(d) In the present case, as per letter dated 25.05.2010 issued by Punjab National Bank (defendant No. 1), the technology adopted by the plaintiff's unit was covered under the 2nd Supplement of the CLCSS CS DJ 611372/2016 13 of 33 M/s Jupitor Polytex (India) Pvt. Ltd. Vs. Punjab National Ban & Anr. Judgment dated 30.03.2026 guidelines approved on 13.07.2009, whereas the Term Loan had been sanctioned on 23.06.2008. Therefore, the Plaintiff's unit was not eligible for subsidy under CLCSS for the said technology/plant and machinery.
40. The stand of defendant No. 1 (Punjab National Bank) is that the plaintiff's claim for subsidy was duly forwarded to defendant No. 2 (MSME) through its Regional Office; however, the same was rejected by defendant No. 2. This rejection was communicated to defendant No. 1 vide letter dated 22.06.2010 (Ex. D1W1/2), which was thereafter conveyed to the plaintiff vide letter dated 22.07.2010 (Ex. D1W1/3).
41. Defendant No. 2 (MSME) contends that the plaintiff had availed financial assistance in June 2008 for certain plant and machinery, including a multi-layer fully automatic microprocessor-controlled plastic extrusion machine and related equipment. At the time of sanction of the Term Loan, such machinery was not included in the list of eligible plant and machinery under the applicable CLCSS guidelines (as revised in April 2006). The said technology was brought within the ambit of the scheme only pursuant to the 2nd Supplement of the CLCSS guidelines approved on 13.07.2009. It is further contended that, under the scheme, eligibility for subsidy is determined with reference to the date of sanction of the Term Loan, and any subsequent inclusion of technology does not operate retrospectively. Accordingly, since the Term Loan in the present case was sanctioned on 23.06.2008, i.e., prior to the approval of the relevant technology on 13.07.2009, the plaintiff is not entitled to subsidy under the CLCSS.