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1989 Supreme(All) 497

High Court Of Allahabad
N.N.Mithal & G.D.Dube, JJ.
Atma Ram Misra
Vs.
Bank Of India
First Appeal From Order No. 1008 of 1988
Decided On : Oct 23, 1989

Advocates:
Advocate Appeared:
P.K.Asthana, B.N.Asthana, P.K.Mukherji

A loan taken for the construction of a cold storage for the storage of agricultural products is recoverable under the U. P. Agricultural Credit Act, 1973.

Headnote:

U. P. AGRICULTURAL CREDIT ACT, 1973 - SECTION 2(A), 2(B), 6 - LOAN FOR CONSTRUCTION OF COLD STORAGE - WHETHER RECOVERABLE UNDER THE ACT - INTERPRETATION OF 'AGRICULTURE', 'AGRICULTURAL PURPOSE' AND 'AGRICULTURIST' - LOAN TAKEN FOR STORAGE OF AGRICULTURAL PRODUCTS - HELD TO BE RECOVERABLE UNDER THE ACT.

Fact of the Case:

The appellant took a loan from the Bank for the extension of his cold storage. The Bank initiated recovery proceedings under the U. P. Agricultural Credit Act, 1973 (the Act). The appellant claimed that the loan was taken as a Small Scale Industrial Unit and not as an agriculturist, hence it was not recoverable under the Act. The appellant filed a suit and sought a temporary injunction before the lower court, which was rejected.

Finding of the Court:

The court held that the loan was taken for an agricultural purpose and was recoverable under the Act. The court interpreted the definitions of 'agriculture', 'agricultural purpose', and 'agriculturist' in section 2 of the Act and concluded that the storage of agricultural products by a person would make it a pursuit of an agriculturist.

Issues: Whether the loan taken for the construction of a cold storage was recoverable under the U. P. Agricultural Credit Act, 1973.

Ratio Decidendi: The court relied on the definitions of 'agriculture', 'agricultural purpose', and 'agriculturist' in section 2 of the Act and held that the storage of agricultural products by a person would make it a pursuit of an agriculturist. The court also noted that the loan was taken for the construction of an additional chamber to preserve potatoes, which was an agricultural product.

Final Decision: The court rejected the appeal and held that the loan was recoverable under the Act.

JUDGMENT

G. D. Dubey, J.

1. A very short point has arisen in this case. The suit was filed by the appellant. He had admitted that he had taken a loan from the Bank for extension of his cold-storage. The Bank had started the recovery proceeding under the U. P. Agricultural Credit Act, 1973 (hereinafter referred to as Act). The plaintiff had alleged that he had taken a loan as Small Scale Industrial Unit and not as a agriculturist, hence it was prayed before the lower court that the loan taken was not recoverable under the Act. The plaintiff had prayed for a temporary injunction before the lower court. The learned Ilnd Additional Civil Judge, Farrukhabad, had rejected the petition for interim injunction. Aggrieved by this order the plaintiff has come up in appeal.

2. It has been argued on behalf of the appellant that the Annexure CA-1 to the Counter Affidavit bears the heading "Application for Financial Assistance to a Small - Scale Industrial Unit". IT was, therefore, urged that this means that cold storage was a Small - Scale Industrial Unit and was not a loan under the Act. The learned counsel for the appellant has drawn our attention to definition of 'agriculture' and 'agricultural purpose' occurring in section 2 and also in section 6 of the Act. He had urged that under section 6 of the Act the loan is for financial assistance in the form of a loan for an agriculturist. The purpose of extending cold storage cannot be deemed to be a loan to an agriculturist. According to the learned counsel for the appellant agriculturist means that person who is involved in the pursuit of agriculture.

3. The learned counsel for the respondent has urged that the Form Annexure CA-1 is a general form used by the Bank. The learned counsel drew our attention to the definition of 'agriculture', 'agricultural purpose' and 'agriculturist' in section 2 of the Act. He urged that these definitions read with the contents of Annexure CA-1 to the counter affidavit indicate that the loan was advanced to an agriculturist and heading of the form quoted above is meaningless and has no relevance at all.

4. Before discussing the matter involved in this case we may quote the definition of 'agriculture', 'agricultural purpose' and 'agriculturist' as given in sub-sections (a) and (b) of section 2 of the Act. It reads as under :-

2. Definition- In this Act, unless the context otherwise requires- (a) 'agriculture' and 'agricultural purpose' includes making land fit for cultivation, cultivation of land, improvement of land (including development of sources of irrigation), raising and harvesting of crops, horticulture, forestry, cattle breeding, animal husbandry, dairy farming, piggery, poultry farming, seed farming, pisciculture, apiculture, sericulture and such other activities as are generally carried on by persons engaged in any of the aforementioned activities and also includes :- (i) marketing of agricultural products, their storage and transport ; (ii) the acquisition of implements and machinery in connection with any such activity ; (iii) the acquisition of gobar-gas plant ; and (iv) the establishment and maintenance of agro-service centres ; Explanation :- For the purpose of this clause, the expression "agro- service centre" means a place or a shop where the entreprenures, trained by the U. P. State Agro-Industrial Corporation Limited, carry on the sale of seeds, fertilizers, insectisides, pesticides, or other goods of agricultural use or agricultural operations in respect of land held by other by tractors or other mechanised process on hire or repair of the agricultural implements; (b) "agriculturist" means a person who is engaged in agriculture;

The above definitions show that the marketing of agricultural products, their storage and transport are also included in the definition of agriculture and agricultural purpose. A reading of whole of section 2 of the Act indicates that the legislature has given a wide compass to the word 'agriculture'. The word 'and' oc




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