RAMALINGAM Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioners are weavers by profession and in view of the rapid industrialisation, they were facing certain problems and formed a registered society viz., Sri Siddeswara Swami Silk Weavers Co-operative-cum-Sales Society Limited and approached the 4th respondent bank for loan and the 4th respondent bank extended the loan of Rs.10,000/- to the petitioners for purchase of instruments.

(2.) Due to subsequent events they are not in a position to repay the dues and sought for relief under Agricultural and Rural Debt Relief Scheme and the bank having considered their request granted the relief indicated in the scheme. However, the petitioners herein contend that they are entitled to total waiver of loan amount i.e., Rs.10,000/-.

(3.) The first respondent issued G.O. Ms.No.665 dated 17-10-1990 providing 50% of the cost of the debt relief would be borne by the Government of India and the Government of India offered to provide loan to the State Government to meet the balance of 50% through NABARD. It is also stated that the Government order provides for elaborate procedure for extending the debt relief.