Allowed

Vishnu Dayal Tiwari v. State of U.P.Thru Prin.Secy.Agriculture Lko and Ors.

Allahabad HC25 Jan 2023/549/2021

Case brief

AI extract

What is this about?

Special Appeal allowed. The Allahabad High Court set aside the Single Judge's order dismissing a writ petition. The court held that under the Government Order dated 07.04.2017, the waiver scheme covered both the loan amount and accumulated interest for loans below one lakh, as the delay in waiver was attributable to the respondents.

What did the court decide?

Writ petition allowed; opposite parties directed to waive the interest claimed on the loan amount; no action to be taken for such amount.

Vishnu Dayal Tiwari Vs State of U.P.Thru… — Banking and Recovery | Allahabad HC (2023)

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Court No. - 1

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Case :- SPECIAL APPEAL No. - 549 of 2021

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Appellant :- Vishnu Dayal Tiwari Respondent :- State Of U.P.Thru Prin.Secy.Agriculture Lko And Ors. Counsel for Appellant :- Ram Prakash Singh Counsel for Respondent :- C.S.C.,Virendra Mishra

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Hon'ble Ramesh Sinha,J. Hon'ble Subhash Vidyarthi,J.

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Heard Shri Ram Prakash Singh, learned counsel for the appellant, Shri Virendra Mishra, learned counsel for respondent-Bank and Shri Umesh Chandra, learned Standing Counsel for State/respondents as well as perused the material brought on record.

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The intra-court appeal under Chapter VIII, Rule 5 of Allahabad High Court Rules, 1952 has been filed challenging the order dated 10.08.2021 passed by the Hon'ble Single Judge in Writ Petition No. 14918 (M/S) of 2021: Vishnu Dayal Tiwari vs. State of U.P. Thru. Prin. Secy. Agriculture, Lko & Ors.

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Briefly stated, facts of the case that the appellant had taken an agricultural loan from Prathma U.P. Gramin Bnak, Wazeerganj, Distt. Gonda. As on 31.03.2016, the outstanding loan amount was Rs. 98,574/-.

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By means of an order dated 07.04.2017, the Government had launched a scheme for waiver of agricultural loans below rupees one lakh (including an amount of interest).

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As the outstanding amount of the petitioner was below rupees one lakh, his case was covered by the loan waiver scheme and he applied for waiver of the loan amount. On 04.09.2018, the petitioner wrote a letter to the District Agriculture Officer, Gonda, stating that his outstanding amount is of Rs. 98,578/and he was eligible for loan waiver under the scheme. The

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Opposite Parties waived the loan amount only on 03.01.2020 and thereafter they claimed interest for the period up to 03.01.2020 also against the petitioner.

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The learned Standing Counsel has submitted that the scheme was for waiver of loan only and the petitioner is not entitled to waiver of interest amount.

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Sri Virendra Mishra, learned Counsel for the Prathma U.P. Gramin Bank has stated that the Bank had forwarded the request of the petitioner for loan waiver in time.

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The writ petition filed by the petitioner was dismissed by an Hon'ble Single Judge holding that the petitioner has no legal right for getting interest amount waived and no Mandamus can be issued without there being any legal right.

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The learned counsel for the appellant has submitted that the petitioner was entitled to waiver of the loan amount, including the amount of interest as per the Governments Policy dated 07.04.2017.

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We have considered the facts and circumstance of the case and gone through the material available on record.

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The Government Order dated 07.04.2017, specifically provided for waiver of loans granted to small and marginal farmers, up to rupees one lakh and it categorically states that the scheme was for waiver of loan along with the interest. Therefore, the appellant has "Right" to get his loan amount and the amount of interest waived, as the said amount fell below rupees one lakh and fulfilled the conditions of the loan waiver scheme. The demand of interest raised by the respondents for the period of delay in accepting the appellant's request for loan waiver arose because of the delay caused by the respondents in processing and accepting the appellant's application for loan waiver and the respondents cannot penalize the appellant for

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their own fault.

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In view of the aforesaid discussions, we are of the view that the instant Special Appeal deserves to be allowed.

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Accordingly, the instant Special Appeal is allowed. The judgment and order dated 10.08.2021 passed by the Hon'ble Single Judge in Writ Petition no. 14918 (M/S) of 2021 is hereby set aside and the writ petition is allowed.

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A direction is issued to the opposite parties to waive off the interest of loan amount being claimed from the appellant and not to take any action from claiming the aforesaid amount from the appellant.

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There will be no order as to costs.

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(Subhash Vidhyarthi,J.) (Ramesh Sinha,J.)

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Order Date :- 25.1.2023 Preeti

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Digitally signed by :- PREETI GAUTAM High Court of Judicature at Allahabad, Lucknow Bench

Vishnu Dayal Tiwari v. State of U.P.Thru Prin.Secy.Agriculture Lko and Ors.

Case brief

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Vishnu Dayal Tiwari v. State of U.P.Thru Prin.Secy.Agriculture Lko and Ors.

Case brief

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