IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 11TH JUNE 2009 / 21ST JYAISHTA 1931 WP(C).No. 37058 of 2007(J) -------------------------- PETITIONER: -------------- P.M.JAMES, PULLAMPARAMBIL, CHINGAVANAM P.O., KOTTAYAM. BY ADV. SRI.K.GOPALAKRISHNA KURUP SRI.S.MANU RESPONDENTS: ---------------- 1. KERALA KHADI AND VILLAGE INDUSTRIES REPRESENTED BY IT'S SECRETARY, VANCHIYOOR, THIRUVANANTHAPURAM. 2. PROJECT OFFICER, DISTRICT KHADI GRAMA VYAVASAYA OFFICE, KOTTAYAM. ADDL. 3. KHADI AND VILLAGE INDUSTRIES COMMISSION, REPRESENTEDBY ITS SECRETARY, NEW DELHI. (IMPLEADED AS PER ORDER DATED23.7.08 IN IA NO.9557/08) BY ADV. SRI.P.N.PURUSHOTHAMA KAIMAL SRI.P.JAYAKRISHNA KAIMAL SRI.K.P.HARISH,SC,KERALA KHADI BOARD THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11/06/2009, THE COURT ON ON THE SAME DAY DELIVERED THE FOLLOWING: WPC : 37058/07 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : TRUE COPY OF THE BROCHURE PUBLISHED BY THE 1ST RESPONDENT EXPLAINING THE DETAILS OF THE PROGRAMME. EXT.P2 : TRUE COPY OF THE PROJECT REPORT SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXT.P3 : TRUE COPY OF THE APPLICATION SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXT.P4 : TRUE COPY OF THE LETTER DATED 2.8.06 ISSUED BY THE RESPONDENT. EXT.P5 : TRUE COPY OF THE LETTER DATED 15.11.07 FROM THE 2ND RESPONDENT. RESPONDENT'S EXHIBITS: EXTS.R1(A) & R1(B) : TRUE COPY OF THE COMMUNICATION DATED 14.09.07 AND THE CIRCULAR DATED 14.11.02. EXT.R1(C) : TRUE COPY OF THE AGREEMENT EXECUTED BETWEEN THE PETITIONER AND BANK. /TRUE COPY/ PA TO JUDGE S. SIRI JAGAN, J. ------------------------------------------------- W.P.(C)No. 37058 OF 2007 ------------------------------------------------- Dated this the 11th day of June, 2009 JUDGMENT The petitioner is an entrepreneur who started a house boat and catering unit. The Khadi and Village Industries Commission evolved a scheme for payment of margin money for certain rural industrial projects. Ext.P1 is the scheme for the same, as per which margin money is available from the Commission in respect of rural industries not included in the negative list of the Khadi Commission. The Khadi Board is the implementing agency. The petitioner submitted Ext.P2 project before the 2nd respondent, Project Officer of the Khadi Board. He, by Ext.P4, recommended the petitioner’s industry for loan to the Federal Bank with the endorsement therein that the petitioner's industry is eligible for margin money from the Khadi Commission. The Federal Bank sanctioned the loan and the petitioner started the business. Subsequently by Ext.P5, the petitioner was informed that for house boat services the margin money scheme is not available. Petitioner is challenging Ext.P5. The contention of the petitioner is that the petitioner has started the project believing that under the scheme he is eligible for margin money since the 2nd respondent WPC : 37058/07 -:2:- recommended that the petitioner is eligible for margin money. He therefore contends that the respondents are now estopped from now contending that the house boat service is not included in the margin money scheme. 2. The contention of the respondents is that as per the scheme margin money is available only for those industries not included in the negative list of the Khadi and Village Industries commission. The Commission has by Ext.R1(b) Circular declared that rural transport, except Autorickshaw in Andaman & Nicobar,House-boat, Shikara & Tourist Boats in Jammu & Kashmir, and cycle rickshaw, is included in the negative list of village industries and is not to be considered for financial assistance under the margin money scheme. It is pointed out in the counter affidavit of the 1st respondent that in Ext.R1(c) agreement between the petitioner and Federal Bank it is specifically stated that the petitioner would be entitled to the margin money assistance only after the Khadi and Village Industries Commission approved the petitioner’s eligibility for margin money. Therefore there is no question of estoppel since the petitioner was very well aware that only after the Commission approves the petitioner’s eligibility he would become entitled to the margin money. In such WPC : 37058/07 -:3:- circumstances, the petitioner cannot contend that believing the promise of the 2nd respondent he altered his position to his detriment so as to set up a case of estoppel. Therefore insofar as the petitioners industry is included in the negative list of the Commission, the petitioner is not entitled to the margin money under Ext.P1 scheme is the contention raised by respondents. 3. I have considered the rival contentions in detail. From Ext.P1 it is abundantly clear that, for the purpose of margin money scheme rural industries included in the negative list of the Commission is excluded. House boat service is treated as rural transport as is evident from Ext.R1(b), though house boats used in Jammu and Kashmir are excluded from the negative list. That being so, as per Ext.P1 scheme the petitioner is not eligible for the margin money. Regarding the question of estoppel, it is clear that, Ext.P4 is issued by the 2nd respondent Project Officer of the Khadi and Village Industries Board who is only an implementing agency for the Khadi and Village Industries Commission. The petitioner himself was aware that, the opinion of the 2nd respondent was not final in the matter as is evident from Ext.R1(c) agreement between the petitioner and the bank, which reads thus: WPC : 37058/07 -:4:- “I have been sanctioned with a loan of Rs.8,90,000/- (Rupees Eight lakhs and ninety thousand only) on 19.8.06for which necessary documents have been executed by me. I shall become eligible for Margin Money Assistance of Rs.301200/- (Rupees Three lakhs one thousand and two hundred only) under the above scheme only after KVIC approves my eligibility for the Margin Money. Pending approval and admission of the claim by KVIC the Margin Money subsidy amount may be detained in a Term Deposit Account with the bank in my name for two years with lein marked for the loan sanctioned. In case of non-admission/non-approval of the claim by KVIC, the bank shall be entitled to: Refund the subsidy in full to KVIC To convert the sanction into one or the other of its schemes at its sole discretion without any further reference to me in this regard. I further undertake to bind myself and abide by the decision/action taken by the bank in this regard as aforesaid.” When the petitioner himself was aware that he would be eligible for margin money only after Khadi and Village Industries Commission approves his eligibility for margin money, the petitioner cannot set up a case of estoppel against the Commission. Commission is the authority to sanction margin money. Therefore it cannot be held that on account of the promise by the 2nd respondent, the petitioner has altered his position to his detriment. For all the above reasons there is no merit in the contentions raised in the writ petition and accordingly the writ petition is dismissed. S. SIRI JAGAN, JUDGE ttb WPC : 37058/07 -:5:-