Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Raj) 196

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
KULDEEP MATHUR, J.
Purna Ram S/o Tulichha Ram – Petitioner
Versus
Union Of India, Through The Secretary – Respondents
S.B. Civil Writ Petition No. 16961 of 202 Connected With S.B. Civil Writ Petition No. 3083/2025 S.B. Civil Writ Petition No. 3085/2025
Decided On : 17-02-2026

Advocates appeared:
For Petitioner(s): Mr. Ram Dev Potalia Mr. Sunil Choudhary
For Respondent(s): Mr. Surendra Choudhary Mr. TRS Sodha Mr. Deepak Bora Mr. Brijesh Bhintal for Mr. Kirta Ram Meghwal on behalf of UOI

Farmers cannot be denied insurance claims due to clerical errors by the implementing bank; responsibility lies with the bank to ensure accurate data entry as per scheme guidelines.

Headnote:(A) Pradhan Mantri Fasal Bima Yojana - Compensation Claim - The petitioners, farmers, sought direction to the Co-operative Bank to disburse insurance claim post extensive crop loss due to erroneous data entry on NCIP causing claim denial. The High Level Committee found the Co-operative Bank liable to settle claims following clerical errors. (Paras 4, 7, 9, 30)

(B) Administrative Law - Jurisdiction - The Co-operative Bank's contention of limited liability rejected; it holds responsibility for the accuracy of data submitted on NCIP as per the guidelines. (Paras 16, 30)

(C) Constitutional Law - Fundamental Rights - Denying insurance claims due to bank error violates farmers' rights under Articles 14 and 21 of the Constitution. (Paras 13, 34)

Facts of the case:
Farmers were denied insurance claims under Pradhan Mantri Fasal Bima Yojana due to incorrect entry of their revenue village on NCIP by the Co-operative Bank, leading to significant financial losses. (Paras 3-4)

Findings of Court:
The farmers’ claims must be settled by the Co-operative Bank as the errors resulting in denial of insurance coverage were due to the bank's clerical mistakes. The claims must be disbursed within eight weeks. (Paras 35)

Issues: The key question was whether the farmers could be denied benefits due to an error not of their making. (Para 24)

Ratio Decidendi: The court ruled that the Co-operative Bank cannot absolve itself of responsibility for clerical errors affecting the farmers' claims, emphasizing the need for correct data entry as per PMFBY guidelines. (Paras 30, 32)

Result: Writ petitions by farmers allowed; Co-operative Bank directed to disburse insurance claims as per High Level Committee orders.

Table of Content
1. writ petitions filed by farmers and cooperative bank. (Para 1 , 2)
2. farmers' crop loss and insurance claim issues. (Para 3 , 4 , 5 , 6 , 9)
3. arguments for farmers showcasing bank's error. (Para 10 , 11 , 12 , 13 , 14 , 15)
4. counterarguments from the cooperative bank regarding responsibility. (Para 16 , 17 , 18 , 19 , 20)
5. court's acknowledgment of farmers' rightful claims. (Para 22 , 23 , 24)
6. explanation of legal provisions and scheme objectives. (Para 25 , 26 , 27 , 28)
7. bank's responsibility and failure in data handling. (Para 29 , 30)
8. court's view on the impact of errors on farmers. (Para 31 , 32 , 33)
9. court’s directive to cooperate bank to comply with orders. (Para 34 , 35 , 36 , 37 , 38)

Order

Introduction

1. The instant batch of writ petitions has been filed by two sets of petitioners, i.e., farmers of Patwar Area Kamediya, District Nagaur, and the Nagaur Central Cooperative Bank Ltd. (hereinafter referred to as “the Co-operative Bank”).

2. The petitioners–farmers seek a direction to the respondent Co-operative Bank to comply with the directions contained in the order dated 09.10.2024 passed by the High Level Committee constituted by the Ministry of Agriculture & Farmers’ Welfare, Department of Agriculture and Farmers Welfare and Cooperation, and to disburse the insurance claim amount in their favour. Whereas the Co-operative Bank seeks quashing of the said order dated 09.10.2024 of the High Level Committee.

Facts of the Case

3. In a nutshell, the controversy involved in these matters is that the petitioners–farmers, who are members of Cooperative Gram Seva Sahkari Samiti Ltd., Kamediya, District Nagaur (hereinafter referred to as “the Cooperative Society”), which is affiliated with the Nagaur Central Cooperative Bank Ltd. (hereinafter referred to as “the Co-operative Bank”), had opted for the Kharif 2020 crop insurance policy, which was implemented under the Pradhan Mantri Fasal Bima Yojana, by furnishing all the requisite documents and details to the Co-operative Bank.

4. The controversy arose when, during the year 2020, owing to scanty rainfall in Patwar Area Kamediya, the Kharif crop suffered extensive damage on account of burning, resulting in substantial financial loss to the farmers, who claimed the insurance amount from the Co-operative Bank for such crop losses. However, due to wrong mentioning/entering of the name of Patwar Area Kamediya as Patwar Area Kherat on the National Crop Insurance Portal (NCIP), the claims of the farmers remained unsettled.

5. Upon non-payment of the insurance claim, the petitioners approached the Co-operative Bank seeking release of compensation. The officials of the Co-operative Bank informed the petitioners that due to an inadvertent error, the Patwar Area had been wrongly shown as Kherat on the National Crop Insurance Portal (NCIP) and, therefore, their claims could not be processed successfully. Thereafter, the petitioners submitted a representation dated 05.04.2021 to the Co-operative Bank requesting correction of the details furnished by them in the insurance forms, particularly with respect to the Patwar/revenue village, and requested that they should not be made to suffer on account of an error committed by the bank officials. Since no action was taken by the Co-operative Bank, the farmers approached this Court by filing S.B. Civil Writ Petition No.15137/2021, which came to be disposed of vide order dated 27.10.2021, directing the competent authority to consider and decide the farmers’ representations and to take necessary steps in accordance with law.

6. As no effective relief was forthcoming, the farmers again approached this Court by filing S.B. Civil Writ Petition No.6128/2024, which was decided vide order dated 08.07.2024, directing the High Level Committee constituted by the Central Government to examine and decide the farmers’ claim for grant of compensation in respect of the Kharif crop for the year 2020.

7. Pursuant thereto, the High Level Committe