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2015 Supreme(Mad) 637

HIGH COURT OF JUDICATURE AT MADRAS
V. DHANAPALAN & G. CHOCKALINGAM, JJ.
M. Shanmugam – Appellant
Versus
The General Manager, Indian Bank, Chennai & Others – Respondent
W.A. No. 1205 of 2011
Decided on: 03-02-2015

Advocate Appeared
For the Appellant:G. Muthukrishnan, Advocate.
For the Respondents:R. Krishnasamy for B. Murugavel, Advocates.

Headnote:

Agricultural Loan - Categorization of Farmer - Investment Loan - [Investment Loan] - [Tamil Nadu Waiver of Agricultural Loan and Debt Relief Scheme, 2008 - Sections 3.3, 3.4, 3.5, 3.6, 3.7, Explanation] - The court discussed the categorization of farmers under the Tamil Nadu Waiver of Agricultural Loan and Debt Relief Scheme, 2008, specifically focusing on the definitions of 'Investment Loan,' 'Marginal Farmer,' 'Small Farmer,' and 'Other Farmer.' The court emphasized that the amount of loan determined the category, and in this case, the appellant fell under the category 'other farmer' based on the loan amount, irrespective of the size of the land holding.

Fact of the Case:

The appellant, a poor agriculturist, sought a loan from the Indian Bank to purchase a tractor for his 3.50 acres of agricultural land. He later applied for benefits under the 'Waiver of Agricultural Loan and Debt Relief Scheme, 2008' but was denied based on the bank's classification of him as an 'other farmer' instead of a 'small farmer.' The appellant filed a writ petition challenging this classification.

Finding of the Court:

The court held that the appellant fell under the category 'other farmer' based on the amount of loan availed, dismissing the writ petition.

Issues: The main issue was whether the appellant should be categorized as a 'small farmer' or an 'other farmer' under the 'Waiver of Agricultural Loan and Debt Relief Scheme, 2008' based on the loan availed for agricultural purposes.

Ratio Decidendi: The court's decision was based on the interpretation of the definitions of 'Investment Loan,' 'Marginal Farmer,' 'Small Farmer,' and 'Other Farmer' under the 'Waiver of Agricultural Loan and Debt Relief Scheme, 2008,' emphasizing that the amount of loan determined the category, irrespective of the size of the land holding.

Final Decision: The Writ Appeal was dismissed, affirming the classification of the appellant as an 'other farmer' and denying the benefits under the 'Waiver of Agricultural Loan and Debt Relief Scheme, 2008'.

Judgment

V. Dhanapalan,J.

1. Heard Mr.G.Muthukrishnan, learned counsel for the appellant and Mr.R.Krishnasamy, learned counsel appearing for Mr.B.Murugavel, learned counsel for the respondents.

2. This Writ Appeal is directed against the dismissal order dated 09.02.2011 passed by the learned Single Judge in W.P.No.20801 of 2010.

3. According to the appellant/writ petitioner, he is a poor agriculturist possessing 3.50 acres of agricultural land in his Village. For the purpose of purchasing a Tractor to plough the said land, he approached the 3rd respondent/Indian Bank and produced necessary documents in that regard. The Bank sanctioned a sum of Rs.5,00,000/- as loan for the purchase of Tractor at Rs.6.30 lakhs, on payment of excess amount of Rs.1.30 lakhs by the appellant. At the time of sanctioning loan by the 3rd respondent/Bank, an opinion was sought from the Legal Adviser of the said Bank and the legal opinion dated 30.10.2006 opines that the appellant/writ petitioner possessed only 3.50 acres of agricultural land in his Village.

4. The appellant has further averred that during the year 2008, the Government of Tamilnadu announced a Scheme in order to help the small and poor agriculturists by way of a Government Order named as 'Waiver of Agricultural Loan and Debt Relief Scheme, 2008' (hereinafter referred to as 'Scheme'). As per the said Scheme, persons who possessed small extent of land, i.e. within 5 acres of land, are eligible to get the benefit of the Government Order and the said scheme.

5. On coming to know about the said Scheme, the appellant/writ petitioner made a written representation to the 3rd respondent and they in turn advised him to approach the 2nd respondent herein to avail the relief and benefits. Therefore, the appellant made a representation to the 2nd respondent by narrating the entire facts seeking to extend the benefits under the said Scheme and the 2nd respondent, by a letter dated 10.11.2008, informed the appellant that his request will be considered in the near future. Thereafter, the appellant received a letter dated 16.12.2008 from the 2nd respondent, wrongly mentioning that he possessed 7.46 acres and as such, he is not eligible for the benefit of the above said Scheme and Government Order.

6. According to the appellant/writ petitioner, he availed loan from the 3rd respondent Bank as a small farmer and clearly established at the time of availing loan that he possessed only 3.50 acres of land and that name change in the patta of some of the lands sold by him earlier was not effected by the purchaser. As all his efforts to get the relief from the respondent/Bank were in vain, the appellant/writ petitioner approached this Court in W.P.No.20801 of 2010 and this Court by an order dated 09.02.2011 held as follows:

"3. It is not in dispute that the loan of the petitioner will fall under the "investment credit" as the loan was availed for the purchase of tractor.

4. In view of the explanation to the petitioner having availed the loan of more than Rs.50,000/- will fall under the category is to be classified as 'other farmer'. The petitioner would not be therefore entitled to debt waiver, as it applies only to the 'small and marginal farmers'.

5. Whereas in the case of 'other farmers', the categories in which the petitioner falls, he is entitled to one time settlement scheme which he is entitled to rebate of 25% of the eligible amount, subject to the condition that the farmer pays the balance of 75% of the eligible amount.

6. The stand of the respondent is that the petitioner was already offered waiver of 25% of eligible amount which he is failed to.

7. The contention of the learned counsel for the petitioner that for the purpose of classification, the petitioner should have been classified as 'small farmer', as the land owned by the petitioner is only 3.5 acres. This contention of the learned counsel for the petitioner cannot be accepted, as the loan advanced to the petitioner fell under "investment plan" for the p






















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