M/S Innovative Textiles LTD. vs. Union Of INDIA And Ors.

Held

The Court disposed of the writ petition with a direction to Respondent No. 1 (Union of India) to treat the petition as a representation. Respondent No. 1 was granted the liberty to deliberate on the petition and decide whether the matter falls within its purview or that of another State Government or Department. If it was determined that the matter did not fall within Respondent No. 1's jurisdiction, it was directed to forward the petitioner's representation to the concerned State Government and/or Department within six weeks of receiving a copy of the order. The pending application was consequently closed. The Court did not decide on the merits of the petitioner's prayers for a Mandamus or the financial facility.

Facts

The petitioner, M/s Innovative Textiles Ltd., filed a writ petition seeking a Mandamus directing the Union of India and concerned banks (SBI and another) to treat certified government dues, primarily GST accumulation and subsidy receivables amounting to approximately Rs. 22 Crores, as secured collateral. The petitioner requested a special working capital facility against these receivables, along with a continuous facility for automatic adjustment of received amounts. Additionally, the petitioner sought directions to prevent coercive action by banks in case of default until the receivables are paid or the special facility is disbursed. The Court noted that the relevant State Government/concerned department had not been arrayed as a party. The petitioner's counsel indicated an intention to implead necessary parties and provide documents to establish the dues as refunds.

Key Issues

1. Whether the Court should issue a Writ of Mandamus directing the respondents to consider certified government dues as secured collateral and sanction a special working capital facility against cumulative receivables of approximately Rs. 22 Crores, comprising GST accumulation and subsidy receivables, and allow for a continuous facility with automatic adjustments. 2. Whether a Writ of Mandamus should be issued directing the respondents to ensure no coercive action is taken against the petitioner in case of default on payments until the receivables from the government are duly paid or a special revolving credit facility against certified government dues is disbursed. Petitioner's Arguments: The petitioner argued for the issuance of the Mandamus as per the substantive prayers, seeking financial relief through a working capital facility against government dues and protection from coercive bank actions. They relied on a Chartered Accountant's certificate to substantiate the receivables. Revenue/State's Arguments: The judgment records no specific arguments from the Union of India or other respondents. However, the Court noted the absence of the relevant State Government/concerned department as a party.