JUDGMENT :

M. Satyanarayana Murthy, J.

1. One Machireddy Ravi Kumar Reddy filed this writ petition under Article 226 of the Constitution of India, invoking pro bono public for issue of writ of mandamus declaring the action of the respondents in not settling the claims pertaining to the Crop Insurance for Rabi Season 2012-2013 of poor farmers, inspite of the written representations dated 8.8.2014, 9.11.2014, 12.2.2015 and 9.1.2016 as illegal, arbitrary, unjust, unconstitutional and consequently direct respondent Nos. 3 and 4 to settle the claims pertaining to the farmers relating to Crop Insurance for the Rabi Season 2012-2013, pay alongwith interest at the rate of 24% per annum.

2. Initially, the writ petition was filed against respondent Nos. 1 to 4 and subsequently, respondent No. 5-Union of India was impleaded vide order in WPMP (PIL) No. 11 of 2017, dated 21.2.2017.

3. The writ petitioner claiming to be a person interested to protect the interests of farmers, whose crop insurance claims were not settled, filed this writ petition for the reliefs stated supra, alleging that the Government issued Notification vide G.O. Rt. No. 1148, dated 13.10.2012 for implementation of National Agriculture Insurance Scheme (NAIS) for Rabi 2012-2013. As per the said notification, the indemnity claims under National Agriculture Insurance Scheme would solely be settled on the basis of yield data furnished by State Government based on the requisite number of Crop Cutting Experiments (CCEs) conducted under General Crop Estimation Survey (GCES) and not on any other basis like Annavari/Paisawari Certificate/Declaration of drought/flood, Gazette notification etc., by any other department/authority. In pursuance of the said notification, more than 2,318 farmers in and around Vempalli Mandal of YSR Kadapa District have paid the premium amount to a tune of Rs. 23,18,345/- to respondent No. 4 during the Rabi Season 2012-2013 for the Bengal Gram crop in an extent of 7,748 Acres of land by way of Demand Drafts in favour of the 3rd respondent within the stipulated time, duly complying all the mandatory requirements. The respondent Nos. 3 and 4 having received the said premium amount by way of Demand Draft and the said Demand Draft was revalidated and withdrawn the amount. The specific contention of the petitioner is that, the poor farmers who have raised Bengal Gram crop by investing huge amounts for purchase of Fertilizers, Pesticides, seeds and labour charges etc., and taken all precautionary measures, due to severe drought and failure of crops apart from the diseases, the entire crop was damaged and sustained 100% loss and it is known fact including the respondent authorities about the loss sustained by various farmers in the entire Vempalli Mandal of YSR Kadapa District.

4. The farmers who sustained huge loss during the Rabi Season 2012-2013 have represented the matter before the respondents alongwith the Statistical department/experts who conducted physical inspection and Crop Cutting Experiments and submitted report to the 3rd respondent for settlement of their claims. The respondent Nos. 3 and 4 herein though received the premium amount way back in the year 2012 and receipt of the report from the Statistical, Revenue and Agriculture Department, did not settle the claims even after lapse of more than three years. Inspite of report and several written representations there was no response from respondent Nos. 3 and 4 as such a written representations were made to the respondent Nos. 3 and 4 on 8.8.2014, 9.11.2014, 12.2.2015, 20.5.2015, 20.8.2015 and 9.1.2016 bringing it to their notice about the loss of entire crop and requested to settle their claims, but not purpose was served.

5. It is specifically contended that, the Insurance Company is bound to settle the claims within two months, in the event of delay, the Insurance Company is liable to pay the