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2011 Supreme(Mad) 667
High Court of Judicature at Madras
VINOD K. SHARMA
M. Shanmugam
Versus
The General Manager, Indian Bank, Chennai & Others
W.P.No.20801 of 2010
Decided on : 09-02-2011
For the Petitioner:V. Chinnasamy, Advocate.
For the Respondents:V. Lakshmi Naryanan, Advocate.
The interpretation of the definitions and classification of farmers under the Agricultural Debt Waiver and Debt Relief Scheme 2008 influenced the court's decision on the petitioner's entitlement to debt waiver.
Headnote:
certiorari - Agricultural Debt Waiver and Debt Relief Scheme 2008 - 3.5, 3.6, 3.7 - The court discussed the definitions and classification of farmers under the scheme, particularly the distinction between 'marginal farmer', 'small farmer', and 'other farmer' based on landholding criteria. The interpretation of these definitions influenced the court's decision on the petitioner's entitlement to debt waiver.
Fact of the Case:
The petitioner sought the waiver of a loan under the Waiver of Agricultural Loan and Debt Relief Scheme 2008, claiming to be a small farmer owning 3.5 acres of land. The bank classified the petitioner as an 'other farmer' and denied the waiver.
Finding of the Court:
The court found that the petitioner, categorized as an 'other farmer' based on the loan amount, was not entitled to debt waiver but could avail a one-time settlement scheme with a 25% rebate.
Issues: Classification of the petitioner as a 'small farmer' or 'other farmer' under the scheme, and entitlement to debt waiver.
Ratio Decidendi: The loan amount determined the petitioner's category under the scheme, and the court upheld the bank's classification of the petitioner as an 'other farmer' based on the loan for the purchase of a tractor.
Final Decision: The writ petition was dismissed, and the petitioner's claim for debt waiver was denied. The court closed the case without costs.
1. The petitioner prays for issuance of a writ in the nature of certiorari, to quash the order dated 16.12.2008, passed by the Indian Bank, vide which the petitioner was informed about his status, under the agricultural debt waiver and debt relief scheme 2008. The impugned order reads as under: "Indian Bank
DIVISIONAL OFFICE
510 – 511 Gandhi Salai Kancheepuram 631 501
REF:COK:REP 104. ADWADR/2008-09 DATE: 16.12.2008
To
Thiru. Shanmu Naicker
S/o.Madurai Naicker
Poigainallur
Aanaikattu Post
Kancheepuram District.
Sir,
Sub: Agricultural loan – extension of relief
scheme 2008 – reg.
With reference to the above mentioned scheme the Government of India directed to taken into consideration that a person who possessed 1 Hectare (2.5 Acre) or more than that i.e., 2 Hectare (5 acres) land possessed by him or jointly, lease or share holder of the produce as small agriculturist. If the agriculturist possessed individually jointly or on leasehold, share holder of more than 2 hectare (5 acres) of land he has to be taken as other agriculturist. Now taken into consideration at the time of availing loan you have informed that you have engaged in agricultural work (at 7.46 acres). Thus you are considered as other agriculturists and as such you have eligible for such kind of relief extended to other agriculturists. Further you are advised to get more information from the Manager, Indian Bank, Coovathur.
Yours,
Sd/ xxx
Grievance Redressal Officer"
2. The petitioner availed a loan for purchase of tractor and is defaulter in payment of loan. The petitioner sought the waiver of the debt under Waiver of Agricultural Loan and Debt Relief Scheme 2008, on the ground that the petitioner is a small farmer owning 3.5 acres of land. Therefore, he is entitled to waiver of the loan. In support of the plea, petitioner placed reliance on the scheme for debt relief. The relevant portion of the scheme reads as under:
"3. Definitions:..................
3.1. 'Direct Agricultural Loans' means short term production loans and investment loans provided directly to farmers for agricultural purposes. This would also include such loans provided directly to groups of individual farmers (for example Self Help Groups and Joint Liability Groups), provided banks maintain disaggregated data of the loan extended to each farmer belonging to that group.
3.2. 'Short Term Production Loan' means a loan given in connection with the raising of crops which is to be repaid within 18 months. It will include working capital loan, not exceeding Rs.1 lakh, for traditional and non-traditional plantations and horticulture.
3.3. 'Investment Loan' means
(a) investment credit for direct agricultural activities extended for meeting outlays relating to the replacement and maintenance of wasting assets and for capital investment designed to increase the output from the land, e.g., deepening of wells, sinking of new wells, installation of pump sets, purchase of tractor/pair of bullocks, land development and term loan for traditional and non-traditional plantations and horticulture; and
(b) investment credit for allied activities extended for acquiring assets in respect of activities allied to agriculture e.g., dairy, poultry farming, goatery, sheep rearing, piggery, fisheries, bee-keeping, green houses and biogas.
3.4. 'Cooperative Credit Institution' means a cooperative society that
(i) provides short-term crop loans to farmers and is eligible for interest subvention from the Central Government; or
(ii) carries on banking activities regulated or supervised by RBI or NABARD; or
(iii) is part of the Short-Term Cooperative Credit Structure or Long-Term Cooperative Credit Structure in a State or Union Territory.
3.5. "Marginal Farmer" means a farmer cultivating (as owner or tenant or share cropper) agricultural land up to 1 hectare (2.5 acres).
3.6.'Small Farmer' means a farmer cultivating (as owner or tenant or share cropper) agricultural land of more than 1 hectare and up to 2 hectares (5 acres).
3.7. 'Other Far
