M SHANMUGAM Vs. GENERAL MANAGER INDIAN BANK CHENNAI

JUDGEMENT

(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 Farmer' means a farmer cultivating (as owner or tenant or share cropper) agricultural land of more than 2 hectares (more than 5 acres). Explanation: 1. THE classification of eligible farmers as per the above landholding criteria under the Scheme would be based on the total extent of land owned by the farmer either singly or as joint holder (in the case of an owner-farmer) or the total extent of land cultivated by the farmer (as tenant or share cropper), at the time of sanction of the loan, irrespective of any subsequent changes in ownership or possession. 2. In the case of borrowing by more than one farmer by pooling their landholding, the size of the largest landholding in the pool shall be the basis for the purpose of classification of all farmers in that pool as 'marginal farmer' or 'small farmer' or 'other farmer'.

(3.) A short-term production loan and an investment loan taken by a farmer shall be counted as two distinct loans and the Scheme will apply to the two loans separately. Likewise, in the case of a farmer who has taken two investment loans for two separate purposes, the two loans shall be counted as two distinct loans and the Scheme will apply to the two loans separately." 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 definition, 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 under 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.