ISHWAR DAS MURLIDHAR Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ application relates to a case under the Bihar Debt Relief Act, 1976 (hereinafter referred to as the Relief Act). The petitioners have prayed for quashing the letter of the Collector sent to the Anchal Adhikari, as contained in Annexure-4, and the order of the Anchal Adhikari, as contained in Annexures 5 and 5A, giving certain directions under the Relief Act.

(2.) In order to appreciate the points raised it will be necessary to state some facts. The petitioners are Firm and they carry on trade in cloth, silver etc, and they are also registered under the Money Lenders Act. The petitioners' Firm used to advance money to various persons who pledge their silver ornaments and a loan to the value of 80% of the pledged goods was advanced to them. The Firm granted them receipts in printed forms and maintained counterfoil and the person receiving such loan had to put signature or thumb impression on the forms. According to the terms of the agreement mentioned therein if the person taking loan fails to pay the entire amount within the period prescribed, which was usually for one year, the petitioners were entitled to forfeit the pledged goods; a copy of such receipt has been filed and marked as Annexure-1. The petitioners' Firm received a notice from the Anchal Adhikari asking them to return the goods pledged to the debtors even without repayment of the debt, a copy of the letter has been filed and marked as Annexure-2, A list of ninety one persons, who had taken loan from these petitioners, was also sent along with Annexure-2: a copy of the list is An-nexure-2A. The petitioners had earlier filed a writ application against similar notice to return the pledged ornaments and this gave rise to C. W. J. C. Nos. 423 and 424 of 1976. The impugned notices issued under the Relief Act, which was under challenge, were subsequently withdrawn by the authorities and those applications were disposed of by this Court and a copy of the order passed on 22-4-1976 has been filed and marked Annexure-3. Thereafter, the Collector of Madhubani suddenly again issued a Circular on the 8th July, 1976 to all the Anchal Adhikaris to take necessary actions for the implementation of the twenty point programme of the Prime Minister; a copy of the aforesaid Circular has been filed and marked Annexure-4. In pursuance of the aforesaid Circular, notice was issued to these petitioners; copy of the same has been filed and marked Annexure-5. It has also been averred in the petition that the petitioners' Firm neither advanced money on landed property nor received any mortgage of landed property. Being aggrieved by the aforesaid order the petitioners have moved this Court under Articles 226 and 227 of the Constitution of India, which was admitted on 9-9-1976 and the operation of the order as contained in Annexures-4 and 5 was stayed so far as the petitioners were concerned. Amendment petition was also filed on behalf of the petitioners, in which it is stated that in spite of the fact that the case was pending in this Court and there was an order Of stay, notices were issued to the petitioners as to why they had not returned the pawned ornaments and, therefore, the petitioners should appear before the Anchal Adhikari failing which legal action will be taken against them; a copy of the notices have been filed and marked Annexures-6 and 6A. It may be mentioned that no counter affidavit has been filed on behalf of the State in this case.

(3.) I shall briefly refer to the provision of law in question. Bihar Debt Relief Ordinance was promulgated on 25-11-1976 and it was followed by another Ordinance (Ordinance No. 211 of 1976) and finally the Relief Act (Bihar Act 10 of 1977) was enacted and published in the Gazette on 22-1-1977 after it had received the assent of the President on 10-1-1977. According to the preamble of the Act it is to provide relief from indebtedness to the small and marginal farmers, rural artisans and agricultural labourers. The reason for the enactment is to implement the liquidation of rural indebtedness in stages from certain classes of persons mentioned above. Section 2 (a) defines debt and is as follows :