The impugned circular contravened the provisions of the Chotanagpur Tenancy Act, unjustly deprived members of the Scheduled Caste and Scheduled Tribe of their legal right to access education loans, and was without jurisdiction.

M. Y. EQBAL, J. :-

This application by way of public interest litigation has been filed by a member of Scheduled Tribe for quashing the circular of the Govt. of Jharkhand as contained in letter No. 7/Bhumi/ Bandhak-Ranchi-8/7/2623Ra, dated 30-7-2007 issued under the signature of respondent No. 2, Secretary, Revenue and Land Reforms Department, Government of Jharkhand, Ranchi whereby it has been notified that no person who is a member of Scheduled Tribe community can obtain loan for construction of his house and for the purpose of education by mortgaging his land.

2. In the writ petition, it is alleged that the authorities of the Government are acting totally against the interest of the Scheduled Tribe community in general by issuing such notification/circular restraining all the Banks in the entire State of Jharkhand from sanctioning loan to the members of Scheduled Tribe community against the mortgage of their land for the purpose of construction of house and/or for the purpose of education.

3. Petitioner's case is that such notification has been issued on the basis of opinion given by Mr. S. B. Gadodia, learned Advocate General, Jharkhand in the light of the decision of Single Bench of this Court in the case of "Mandu Prakhand Sahakari Grih Nirman Sahyog Samiti Ltd. and Anr. v. State of Bihar" (2004) 1 JCR 402. Petitioner's further case is that as a result of the impugned circular of the Government, no person belonging to Tribal Community is entitled to take loan from any bank for educational purposes or for construction of his house against mortgage of his land.

4. No counter affidavit has been filed by the respondent State. However, Mr. Gadodia, learned Advocate General, as he then was at the first hearing, submitted that the impugned notification/circular was issued on the basis of opinion given by him. Learned Advocate General submitted that he has already given fresh opinion suggesting the Government for withdrawal of the impugned circular and the Government has decided to withdraw the aforesaid circular. By order dated 18-9-2008, at the request of the petitioner many Banks were impleaded as party respondents. One of them, namely, Bank of India filed counter affidavit wherein it is stated that in the light of the provisions of the Chota Nagpur Tenancy Act as well as the impugned circular issued by the Government of Jharkhand, respondents Banks have been strictly following the same and are not allowing any loan to the members of the Scheduled Tribe against mortgage of their lands except providing housing loan to the staff belonging to the tribal community.

5. At the outset, I would like to quote the impugned circular dated 30-7-2007 which is as under :-

(Vernacular matter omitted....Ed.)

"I have gone through the notings as well as papers available in the file. I may indicate that identical issue was raised in the case of Mandhu Prakhand Sahkari Grih Nirman Sahyog Samiti Ltd. v. State of Bihar and Ors. judgment of which is reported in 2004 (1) JCR 402 (Jhr.) In the said judgment, various provisions of C. N. T. Act have been take into consideration including Sections 46, 47 and 49 of the said Act. After considering various aspects of the matter, it has been held that a member of the scheduled tribes cannot take loan either for education and/or construction of house either by mortgaging his ralyati land and/or by transferring his such land in favour of any Bank, Co-operative Societies etc."

(Vernacular matter omitted.... Ed.)

6. From reading of the aforesaid circular, it is manifestly clear that the circular has been issued on the basis of decision of the learned Single Judge referred therein. In the said decision, the fact of the case was that petitioner No. 2 in the years 1966 and 1967 by three registered sale deeds purchased the land from recorded raiyats belonging to the members of Scheduled Castes. In abundant precaution, application was filed before the Deputy Commissioner, Hazaribagh under Section 46(1)(c) for perm