MODAKURUCHI PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LTD Vs. C VASUDEVAN; STATE OF TAMIL NADU; REGISTRAR OF CO-OPERATIVE SOCIETIES

JUDGEMENT

(1.) A common controversy arises on account of the Government of Tamil Nadu issuing G.O.(Ms).No.70 dated 13.05.2006 qua waiver of agricultural loans for farmers. In terms of the said Government Order, all standing dues availed by farmers from Co-operative Societies were waived with no proceedings to be initiated for recovery of the said loans. The amount waived was to be reimbursed to the Co-operative Societies by the State Government.

(2.) The eligibility criteria was loan disbursed by the 8 types of Societies and one of them was Primary Agricultural Co-operative Bank, which is the legal status of the Modakuruchi Primary Agricultural Cooperative Credit Society Ltd. The waiver were of both Principal and interest. The various categories of loans for which the scheme to be applied was also enumerated in the said Government Order, but in the course of argument, we found that the English translation was not correct. Suffice to say that the various kinds of loans listed in the Government Order dealt with crop loans, inter-term agricultural loans and agriculture allied loans.

(3.) It is an accepted position that the format in which the loanees in the present case applied for loan was of an integrated loan, though against the reason for availing of loan, it was stated that the loan was secured by deposit of title document to make ''agricultural development''. These applications were processed and loans were also granted.