UDAYACHAL WEAVING CO Vs. STATE OF ASSAM & OTHERS

JUDGEMENT

(1.) Facts leading to this petition under Art. 226 of the Constitution of India, in brief, are as follows. The petitioner, Udayachal Weaving Cooperative Society at Silpukhuri, Guwahati, is a registered co-operative society under the Assam Co-operative Societies Act, 1949 ('Act' for short) with the object to encouraging manufacturing of Assam Silk, Muga, Endi, etc with indegenous expert hands. The Government of Assam, by a letter dated 12.12.90, made reimbursement of Rs. 6,58,183.00 to the petitioner society under the - "General Rebate Scheme" for the rebate made by the society on sale of handloom products. Under the said letter, there was a further direction of the Government that a sum of Rs. 5,51,591.83 was to be adjusted towards the loan granted by the Government to the society under the NCDC Scheme. Details of loan and interest are given in that letter. The petitioner society being aggrieved by the direction for adjustment of loan has filed this writ petition.

(2.) Mr. P. Prasad, learned counsel for the petitioner, has contended that, under section 43 of the Act, the Government cannot recover any part of the loan or financial assistance from the society out of the reimbursement.

(3.) Sec. 43 of the Act provides that the State Government may grant loan, or give financial assistance in any form, to any registered society. Sec. 43 further provides that the State Government may recover from the society out of its 'net profit' in any year all or any part of the financial assistance.