MAKHAN SINGH Vs. STATE OF PUNJAB AND OTHERS

JUDGEMENT

(1.) This petition is reflection of a sorry state of affairs in the working of the Cooperative Banks and Societies. Instead of being any help or assistance to a farmer, these Banks and employees of Agriculture Development Banks are seen conniving with their known persons to take away the landed property of innocent farmers, managing auction etc. in violation of the requisite procedure. Innocent agriculturists are at receiving ends.

(2.) In the present case, area of one acre of land pledged by the petitioner to avail and secure a loan of Rs. 80,000/- has been auctioned for a sum of Rs. 1,13,500/- whereas the conservative market value of this land would be more than Rs. 10 lacs at the relevant time. Was it not for consideration of the management of the Bank to see in case the approach adopted by them was fair, just and reasonable. This is besides the grounds that such a course may not be otherwise permissible as per the provisions of the Punjab Cooperative Agriculture Development Bank Act, 1957 (for short, "the Act") for auctioning the land.

(3.) Balkar Singh, son of the petitioner, had availed a loan facility of Rs. 80,000/- from Primary Cooperative Agriculture Development Bank, Ferozepur Cantt. (respondent No.4) in the year 1996 for cycle repair shop. The petitioner states that his son kept on returning the aforesaid loan in instalments. At the time of affording loan facility, the Bank had got the thumb impressions of son of the petitioner on various blank forms and that of the petitioner as well, who had accompanied his son while availing facility of loan. The petitioner is illiterate person and he really did not know that his land had been mortgaged to secure the loan by his son, Balkar Singh. The respondent-Bank also did not apprise him of the same. The petitioner was only made to understand that these were the bank formalities for sanction of the loan.