Legal Analysis: Agriculture Produce Market Committee, Deesa vs. National Horticulture Board & Ors

Citation: 2026 INSC 385
Court: Supreme Court of India
Bench: Justice Sanjay Karol and Justice Augustine George Masih (Division Bench)
Judgment Author: Justice Sanjay Karol
Date of Decision: April 17, 2026
Nature of Judgment: Civil Appeal under Article 136 against High Court Division Bench order setting aside Single Judge’s direction to release subsidy.

Synopsis of the Judgment

The appellant (APMC Deesa) constructed a cold storage facility under a subsidised scheme administered by the National Horticulture Board (NHB) and NABARD. It received 50% advance subsidy. A joint monitoring visit found the facility completed but with minimum capacity utilisation (about 20%). The authorities deferred the remaining 50% subsidy pending re-inspection. The appellant and its bank repeatedly requested re-inspection and release of the balance subsidy, but no action was taken for several years. Meanwhile, the facility was destroyed by fire. The authorities then sought refund of the advance subsidy. The Single Judge directed release of the remaining 50% subsidy. The Division Bench reversed, holding that the appellant had not made sufficient efforts. The Supreme Court restored the Single Judge’s order, finding that the appellant had consistently pursued its claim and the authorities’ inaction was unjustified. The Court held that the fire occurring after the claim had crystallised could not defeat the appellant’s entitlement.

1. Basic Information of the Judgment

Field Details Case Title Agriculture Produce Market Committee, Deesa vs. National Horticulture Board & Ors. Civil Appeal No. Arising out of SLP(Civil) No. 13129 of 2025 Bench Justice Sanjay Karol and Justice Augustine George Masih Date of Decision April 17, 2026 Citation 2026 INSC 385 Appeal From Judgment dated 01.07.2024 of Gujarat High Court in R/Letters Patent Appeal No. 614 of 2024

2. Legal Framework

Laws and Schemes Involved:

• Scheme for capital investment subsidy for cold storage / horticulture infrastructure (administered by NHB and NABARD). The exact statutory basis is not specified, but the dispute concerns interpretation of the Scheme’s release procedure.

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