BHANWARLAL Vs. BANK OF BARODA

JUDGEMENT

(1.) BRIEF facts giving rise to the present special appeal are that the petitioner-appellant claimed himself to be an agriculturist and filed a writ petition challenging the constitutional validity of the provisions of Section 4 (e) of the Rajasthan Relief of Agricultural Indebtedness Act, 1957 as violative of Article 14 of the Constitution of India.

(2.) THE petitioner-appellant has taken a loan from Bank of Baroda for purchase of tractor trolly and other implements and also for digging of well. THE D. P. Note, letter of hypothecation and letter of personal guarantee of Shri Sohan Lal were furnished. THE loan was sanctioned by the Bank at the rate of 12. 05%, which is 2% above the minimum bank interest rate of 10. 5% as per directives of the Reserve Bank of India. THEre was default in making payment of loan and a suit was filed by the Bank against the petitioner-appellant and the land of Khasra No. 3016/56 having area of 15 bighas situated at village Nainwa, which was mortgaged by Bhanwarlal in favour of the Bank was prayed to be auctioned. THE appellant-petitioner made an application under Section 6 of the Rajasthan Relief of Agricultural Indebtedness Act, 1957 (hereinafter to be referred to as "the Act)" in the Debt Relief Court (Civil Judge) Bundi praying that applicant Bhanwarlal is an agriculturist within the meaning of Section 2 of the Act and the Bank should be asked to render the entire statement of account and thereafter the Debt Relief Court should determine the actual amount payable. A further prayer was made that the amount may be allowed to be paid in the instalments of Rs. 500/- per month. THE Debt Relief Court vide its order dated 7. 4. 1984 held that the provisions of Clause (e) of Section 4 of the Act are not applicable to the Scheduled Bank.

(3.) THE judgment of this court in Ram Rakh vs. Creditors (5) was also referred to with regard to the provisions of Sec. 4 (b), wherein the Division Bench considered the scheme of the Act and the provisions with regard to the Rajasthan Jagirdar Debt Reduction Act and the objects and reasons of that Act vis-a-vis the Rajasthan Relief of Agricultural Indebtedness Act, 1957 and observed that the reasons for enactment of both the Acts are different. THE object of Rajasthan Jagirdar Debt Reduction Act was to reduce the debt secured on Jagir lands which have been resumed under the provisions of the Rajasthan Land Reforms and Resumption of Jagirs Act and that on that account the Jagirdar's capacity to pay debts has been reduced and the object of that Act was to ameliorate their condition.