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2013 (8) TMI 547 - HC - Indian LawsBenefit of Rehabilitation Scheme - Writ of Mandamus - granting assistance and lending to micro, small and medium enterprises - Held that:- There was serious dispute with regard to fulfillment of the condition for seeking benefit of the circular in question it was not appropriate for the Court to issue any mandamus - For issuing the mandamus and commanding the respondents to give effect to the rehabilitation scheme - the Court had to be satisfied that the pre-conditions stipulated for applicability of the circular or scheme were fulfilled. Conditions for Sick unit - When can a unit be considered as sick unit - a unit was considered as sick when any of the borrowal account of the unit remains substandard for more than 6 months or there was erosion in the net worth due to accumulated cash losses to the extent of 50% of its net worth – from the documents and material available on record it was clear that the condition was fulfilled - The unit had been in commercial production for at least two years – Central Bank of India Vs. Ravindra and others [2001 (10) TMI 1065 - SUPREME COURT OF INDIA]. Matter Sub-judice - Disputed question of facts – The Debt Recovery Tribunal is a forum where a detailed enquiry and trial can be held and after recording of evidence and cross examination the tribunal would in a better position to decide the questions of fact which are in dispute by recording a finding with regard to the unit being in commercial production for two years or not - The matter was already sub-judice before the Debt Recovery Tribunal where the dispute in question can be more appropriately dealt with – it was not appropriate for the Court to interfere in the matter – the Debt Recovery Tribunal comes to the conclusion that the requirements of the Master Circular were fulfilled, the Debt Recovery Tribunal can issue direction for grating benefit to the petitioner as per the scheme or circular of the Reserve Bank of India – Decided against petitioner.
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