{"id":231627,"date":"2011-02-04T00:00:00","date_gmt":"2011-02-03T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-primary-co-operative-vs-the-kerala-state-farmers-debt-on-4-february-2011"},"modified":"2017-07-12T14:55:26","modified_gmt":"2017-07-12T09:25:26","slug":"the-primary-co-operative-vs-the-kerala-state-farmers-debt-on-4-february-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-primary-co-operative-vs-the-kerala-state-farmers-debt-on-4-february-2011","title":{"rendered":"The Primary Co-Operative … vs The Kerala State Farmers Debt on 4 February, 2011"},"content":{"rendered":"
Kerala High Court<\/div>\n
The Primary Co-Operative … vs The Kerala State Farmers Debt on 4 February, 2011<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 19988 of 2010(W)\n\n\n1. THE PRIMARY CO-OPERATIVE AGRICULTURAL\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. THE KERALA STATE FARMERS DEBT\n                       ...       Respondent\n\n2. C.P.RAVINDRAN NAIR,\n\n3. P.RAMANIAMMA,\n\n                For Petitioner  :SRI.V.G.ARUN\n\n                For Respondent  :SRI.V.SETHUNATH\n\nThe Hon'ble MR. Justice ANTONY DOMINIC\n\n Dated :04\/02\/2011\n\n O R D E R\n                      ANTONY DOMINIC, J.\n             --------------------------------------------------\n             W.P.(C) Nos.19988\/2010 & 545\/2011\n             --------------------------------------------------\n          Dated this the 4th day of February, 2011\n\n                          J U D G M E N T\n<\/pre>\n
     Issues raised in these writ petitions are connected and<\/p>\n
therefore these cases are heard together and disposed of by this<\/p>\n
common judgment.\n<\/p>\n
     2.   Petitioner in WP)).No.545\/2011 availed of three loans<\/p>\n
from   the    Primary      Co-operative       Agricultural     and Rural<\/p>\n
Development Bank Ltd., Petitioner in WP(c).No.19988\/2010. One<\/p>\n
of the controversy in this writ petition is regarding the loan No.<\/p>\n
LFS 944 for an amount of ` 7,50,000\/- sanctioned for the purpose<\/p>\n
of starting a hollow bricks manufacturing unit. Apart from this,<\/p>\n
two other loans were also availed of. Default was committed in<\/p>\n
respect of all the three loans. Meantime the Central Government<\/p>\n
introduced the Agricultural Debt Waver and Debt Relief Scheme,<\/p>\n
2008. The aforesaid bank extended the benefit of the scheme in<\/p>\n
respect of the latter two loans and waiver as admissible under<\/p>\n
the scheme was given.\n<\/p>\n
     3.   However, petitioner in WP(c).No.545\/2011 approached<\/p>\n
the Kerala State Farmers Debt Relief Commission claiming waiver<\/p>\n
WPC.No. 19988\/2010 & anor.        2 :\n<\/p>\n
in respect of loan No. LFS 944 and also the other two loans. The<\/p>\n
commission passed order dated 7.8.2008 holding that the<\/p>\n
petitioner in WP(c).No.545\/2011 is eligible for the benefit of the<\/p>\n
scheme and on that basis the liability was ordered to be waived<\/p>\n
completely. Long thereafter the bank filed application dated<\/p>\n
20.10.2008 seeking review of the aforesaid order invoking the<\/p>\n
power of the Commission under Rule 20 of the Debt Relief<\/p>\n
Commission Rules. By order dated 11.8.2010, the Commission<\/p>\n
allowed the application and cancelled the benefit that was given<\/p>\n
in respect of the loan LFS 944.\n<\/p>\n
      4.   Bank has filed W.P(c).No.19988\/2010 challenging the<\/p>\n
order dated 7.8.2008 where as the loanee has filed WP(c).<\/p>\n
No.545\/2011 challenging the order passed by the Commission<\/p>\n
allowing the review petition filed by the Bank.<\/p>\n
      5. As far as the order dated 11.8.2010 allowing the review<\/p>\n
petition is concerned the ground urged is that, the review has<\/p>\n
been filed beyond the time provided in Rule 20 and that in the<\/p>\n
absence of any power conferred to the Commission, it could not<\/p>\n
have entertained a belated application. Rule 20 provides for filing<\/p>\n
of a petition for review and the time specified for filing such<\/p>\n
WPC.No. 19988\/2010 & anor.         3 :\n<\/p>\n
application is 60 days. Admittedly, this application is filed beyond<\/p>\n
the time specified and the Rules do not confer any power on the<\/p>\n
Commission to condone delay. If that be so, the order dated<\/p>\n
11.8.2010 allowing the review application filed by the Bank is<\/p>\n
liable to be set aside and I do so.\n<\/p>\n
      6.   In so far as WP(c).No.19988\/2010 filed by the Bank is<\/p>\n
concerned, if the issue raised by the Bank is that Agricultural Debt<\/p>\n
Waver and Debt Relief Scheme 2008 is inapplicable to loan LFS<\/p>\n
944. The scheme provides for waiver in respect of the direct<\/p>\n
agricultural loans, short term production loan and investment<\/p>\n
loans which expression are defined in clause 3.1, 3.2 and 3.3 of<\/p>\n
the scheme. A perusal of these provisions show that the scheme<\/p>\n
shall apply only in respect of the loans which are availed of for<\/p>\n
agricultural purposes or for activities allied to agricultural<\/p>\n
purposes. In this case admittedly loan No. LFS 944 was availed of<\/p>\n
by the petitioner in WP(c).No.545\/2011 for starting a hollow brick<\/p>\n
manufacture unit. The purpose of the loan has no connection<\/p>\n
whatsoever with agriculture and therefore it is outside the 2008<\/p>\n
scheme. If so Commission could not have extended the benefit of<\/p>\n
the scheme in so far as the aforesaid loan is concerned. In that<\/p>\n
WPC.No. 19988\/2010 & anor.         4 :\n<\/p>\n
view of the matter the order dated 7.8.2008 passed by the<\/p>\n
Commission to the extent it concerns loan No.LFS 944 availed of<\/p>\n
by the petitioner in WP(c).No.545\/2011 from the Primary Co-<\/p>\n
operative Agricultural and Rural Development Bank Ltd., is liable<\/p>\n
to be set aside and I do so.\n<\/p>\n
      7.     The other contention raised by the petitioner is in<\/p>\n
relation to the loan Nos. OL 8742 in respect of which Rs.1 lakh<\/p>\n
was availed of and LDS.1890 in respect of which Rs.2 lakhs was<\/p>\n
availed of by the petitioner in WP(c).No.545\/2011. These loans<\/p>\n
were for a period of 10 years and according to the Bank, as per<\/p>\n
clause 4.3 of the 2008 scheme the loanee was entitled to debt<\/p>\n
waiver of the outstanding amount of ` 1,53,408\/- only. It is<\/p>\n
contended that by Ext.P2 in WP(c).No.19988\/2010 the aforesaid<\/p>\n
waiver was already given and therefore the Commission could not<\/p>\n
have ordered complete waiver.\n<\/p>\n
      8.   Clause 4.1(a)(i)of the scheme provides that the amount<\/p>\n
eligible for debt waiver, shall comprise of in the case of a short<\/p>\n
term production loan, the amount of such loan together with<\/p>\n
interest disbursed up to March 31st, 2007 and overdue as on<\/p>\n
December 31st, 2007 and remaining unpaid until February 29th,<\/p>\n
WPC.No. 19988\/2010 & anor.        5 :\n<\/p>\n
2008. Therefore, in the case of loans such as those availed of by<\/p>\n
he loanee herein, only such amounts that are over due as on<\/p>\n
31.12.2007 and remaining unpaid as on 29.2.2008 is liable to be<\/p>\n
waived. It is seen from Ext.P3 order that the amount outstanding<\/p>\n
as on 31.12.2007 in respect of the above loans have already<\/p>\n
been waived and therefore the Commission was in error in<\/p>\n
waiving the loans in its totality. To that extent also order dated<\/p>\n
7.8.2008 passed by the Commissioner deserves to be interfered<\/p>\n
with and to be quashed and I do so.\n<\/p>\n
     The writ petitions are disposed of as above.<\/p>\n
                                         (ANTONY DOMINIC)
\n                                               JUDGE
\nvi\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court The Primary Co-Operative … vs The Kerala State Farmers Debt on 4 February, 2011 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 19988 of 2010(W) 1. THE PRIMARY CO-OPERATIVE AGRICULTURAL … Petitioner Vs 1. THE KERALA STATE FARMERS DEBT … Respondent 2. C.P.RAVINDRAN NAIR, 3. P.RAMANIAMMA, For Petitioner :SRI.V.G.ARUN For Respondent […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-231627","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nThe Primary Co-Operative ... vs The Kerala State Farmers Debt on 4 February, 2011 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-primary-co-operative-vs-the-kerala-state-farmers-debt-on-4-february-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Primary Co-Operative ... vs The Kerala State Farmers Debt on 4 February, 2011 - 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