Karnataka High Court
Kedari - Appellant
Versus
State of Karnataka - Respondent
Decided On : 10-24-02
W.P. : 34551 of 2002
Government of Karnataka Notification dated 29-5-2202 - Central Government framing a scheme under Article 73 of the Constitution for insuring the agricultural crops of those farmers who avail credit from the financial institutions -State Government including Sugarcane in the scheme premium fixed -not arbitrary and violative of article 14.
[S. B. Majage, J.] - The Government of India under its executive power conferred by Article 72 has framed the scheme to safeguard the interest of the farmers. The scheme is framed with all good intentions in order to protect the farmers against their crop loss etc. Hence it cannot be termed as arbitrary, discriminatory or violative of article 14.
Cases Referred: AIR 1967 SC 1170; AIR 2000 SC 2047; 2000 SLC 1300; 2000(5) SCC 471; 2001 AIR SCW 5153.
( 1 ) THE petitioners who are sugarcane growers of Athani Taluk have questioned the legality and validity of the impugned order dated 29-5-2002 (Annexure-B) (Published in the Karnataka gazette Notification on 25-7-2002) issued by the first respondent in so far as it relates to sugarcane crop in Athani Taluka of belgaum District and sought for quashing of the same. Further, in the alternative, the petitioners have sought for issuance of a writ of mandamus to respondents 1 to 3 not to enforce the impugned order against the sugarcane growers who have availed crop loan on or before 25-7-2002. urging various legal Contentions.
( 2 ) THE petitioners are sugarcane growers having their agricultural lands within a distance of about 3 kms. from the Krishna river in Athani Taluk of Belgaum District and they have availed loan from third respondent-Bank. The Government of India formulated the national Agricultural Insurance Scheme (NAIS) called 'rashtriya Krishi bima Yojana' (in short the Scheme') vide annexure-A aiming to provide Insurance coverage in respect of crops in the areas as notified by the State Governments concerned. The State Level Co-ordination committee on Crop Insurance (in short 'the Committee') was constituted under the abovesaid scheme vide its report dated 4-5-2002 recommended for Inclusion of sugarcane crop in Belgaum District and accordingly first respondent vide order dated 29-5-2002 vide annexure-B has notified Sugarcane Crop in eight Talukas of Belgaum District for compulsory Crop Insurance including the taluka of Athani.
( 3 ) IT is stated that under the said Scheme the General Insurance Company shall insure the notified crop of the Sugarcane grower who avail crop loan on the applictlon of the financing Agency and the Insyrance premium is fixed by the State Government at 3. 85% of sum assured. It is the further case of the petitioners that their Association vide its representation dated 31-8-2002 vide Annexure-C requested respondent-Bank not to debit premium money to their loan accounts and warned that if any debit is made ignoring their request, it is at the risk of the Bank only. Further stated that, the Bank expressed its helplessness saying that under the Scheme it has no discretion. It is urged by the learned counsel appearing for petitioners Sri Krishna S. Dixit that the insurance scheme framed by the first respondent has no statutory force to insure the sugarcane crop compulsorily without the consent and willingness of the concerned grower.
( 4 ) THE counsel for the petitioners further contended that, the impugned order is without Jurisdiction and has been unilaterally passed. Further, second respondent-Committee has not been duly constituted as required under the provisions of the scheme, compulsory insurance scheme introduced by the first respondent and fixing the area by co-ordination committee the second respondent is a clear case of discrimination and arbitrary in nature. In support of said contention, the learned counsel for the petitioners has placed reliance upon the judgment of Supreme Court reported in AIR 1967 SC 1170 in the case of State of Madhya pradesh v. Thakur Bharat Singh wherein at paragraph-6 after interpretation of S. 73 and 162 of the Constitution of India, the Apex court has laid down the law at Paragraph-6 stating that the said Articles are concerned primarily with distribution of executive power between Union on one hand and states on the other, and not with validity of its exercise. The State or its officers in exercise of executive authority cannot infringe rights of citizens merely because Legislature of State has power to legislate in regard to subject in which executive order is passed.
( 5 ) THE learned counsel submits that, the scheme infringes the fundamental rights of the petitioners by making them to compulsorily insure the sugarcane crop grown in the area as notified vide Annexure-B by the committee on the basis of the Scheme framed by the Union of Indi
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