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I suppose the problem being the "echo" statement. It is fed the content of the variable "$line" and interprets it. "\n" and "\t" in your example are control characters, though. "\n" is "newline",...

Uhm.
What's wrong with:
lem@biggy:/tmp$ while IFS="|" read -r T_NAME P_NAME P_CODE _PATH _DATE; do
cat <<END >>outfile
T_NAME $T_NAME
P_NAME $P_NAME
P_CODE $P_CODE
PATH $_PATH
DATE ...