Petitioners seeking debt waiver for Kisan Credit Card loans under the Agricultural Debt Waiver and Debt Relief Scheme, 2008. Court held loans were not overdue due to valid credit line validity, dismissing the writ petition.
None. Writ petition failed and was dismissed. No costs awarded to petitioners.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE P.N.RAVINDRAN
MONDAY, THE 21ST DAY OF MAY 2012/31ST VAISAKHA 1934
WP(C).No. 1580 of 2010 (V)
PETITIONER(S):
1. P.S.JOHN, POLLAYIL JOSE VILLA, WARD NO.14, CHERTHALA SOUTH PANCHAYATH,CHERTHALA.
2. P.L.THRESIAMMA, DO....DO..
3. P.J.FABIANOSE, PUNNACKAL, ARTHUNKAL PO.,CHERTHALA.
BY ADV. SRI.J.OM PRAKASH
RESPONDENT(S):
1. THE JOINT REGISTRAR OF CO-OPERATIVE
2. THE ALAPPUZHA DISTRICT CO-OPERATIVE
3. THE NODAL OFFICER,
4. THE ARTHUNKAL VILLAGE SERVICE
R1 BY GOVERNMENT PLEADER SMT. M.P.SHEEBA R2 & R3 BY ADV. SRI.GEORGE POONTHOTTAM,SC, ALAPPUZHA DIST.CO.OP BANK
SRI.P.K.VIJAYAMOHANAN,SC R4 BY ADVS. SRI.V.G.ARUN SRI.T.R.HARIKUMAR
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21-05-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
Kss
WPC.NO.1580/2010 V
APPENDIX
PETITIONER'S EXHIBITS:
RESPONDENT'S EXHIBITS: N I L
/TRUE COPY/
P.S.TO JUDGE
Kss
P.N.RAVINDRAN, J.
W.P(C).No.1580 of 2010
----------------------------------------Dated this the 21st day of May, 2012
JUDGMENT
The petitioners, three in number, availed agricultural loans under the Kisan Credit Card Scheme from the 4th respondent bank. As per the Kisan Credit Cards issued by the 4th respondent bank, petitioners 1 and 2 are entitled to avail a maximum amount of Rs..2,00,000/- and the third petitioner was entitled to avail a maximum amount of Rs.3,00,000/- as loan. The loans were sanctioned on 11.7.2006, 19.5.2005 and 10.5.2005 respectively. The petitioners were making periodical withdrawals from the Kisan Credit Card accounts and making periodical repayments. After the petitioners availed the loans, the Central Government introduced the Agricultural Debt Waiver and Debt Relief Scheme, 2008. The petitioners thereupon filed Exts.P5, P6 and P7 representations before the third respondent claiming relief under the Agricultural Debt Waiver and Debt Relief Scheme, 2008. The instant writ petition was thereafter filed seeking the following relief:-
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scheme to the petitioners and write off the liabilities accordingly and release the documents of the petitioners.”
The sole contention raised by the petitioners is that all the petitioners were in arrears as on 31.12.2007 and therefore, they are entitled to relief under the Agricultural Debt Waiver and Debt Relief Scheme, 2008.
“4. In the above context, it is submitted that the agricultural loans that are overdue on 31.12.2007 and remaining unpaid until 29.2.2008 alone are eligible to writ off under the above said Debt Relief Scheme of Central Government. But so far the agricultural loans availed by the petitioners, the same is under Kisan Credit Card Account, which is given to them on overdraft facilities. The said account can be renewed every year and even a single withdrawal will keep it alive in the event of which the question of overdues does not arise. Hence even a single withdrawal from the above account within a year between 1.1.2007 to 31.12.2007 would make the loan account of the petitioners as not overdue loan holders.”
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appearing for the first respondent, Sri.George Poonthottam, learned counsel appearing for respondents 2 and 3 and Sri.T.R.Harikumar, learned counsel appearing for the 4th respondent. Sri.J.Omprakash, learned counsel appearing for the petitioner contended, relying on Explanation 4 to paragraph 3 and paragraph 4.1 of the Agricultural Debt Waiver and Debt Relief Scheme, 2008, that loans taken under Kisan Credit Cards are also covered under the Scheme, that loans were disbursed to the petitioners before 31st March, 2007 and it was overdue from them as on 31.12.2007 and remained unpaid till 29.2.2008 and therefore, the petitioners are entitled to the benefits under the Agricultural Debt Waiver and Debt Relief Scheme, 2008. Per contra, learned counsel appearing for the respondents contended that the Kisan Credit Cards were valid for a period of 36 months, that the said period of 36 months had not expired on 31.12.2007 and therefore, it cannot be said that any amount was overdue from the petitioners on 31.12.2007 or that it had remained unpaid till 29.2.2008 and that the loans disbursed to the petitioners would have become overdue only on the expiry of the period of 36 months mentioned in the Kisan Credit Cards or in the event of the bank foreclosing the loans and demanding repayment. The
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learned counsel contended that in such circumstances as the loans disbursed to the petitioners were not overdue as on 31.12.2007, the petitioners are not entitled to any benefits under the Agricultural Debt Waiver and Debt Relief Scheme, 2008 .
the learned counsel appearing on either side. Explanation 4 to paragraph 3 of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 reads as follows:-
“Explanation: 1, 2 and 3 omitted.
4. Direct agricultural loan taken under a Kisan Credit Card would also be covered under this Scheme subject to these Guidelines.”
Paragraph 4.1 which is relevant for the purpose of the case reads as follows:-
“4.1. The amount eligible for debt waiver or
debt relief, as the case may be (hereinafter referred to as the 'eligible amount'), shall comprise of:
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2004 and in 2006 through the special packages announced by the Central Government, whether overdue or not; and
(iii) restructured and rescheduled in the normal course upto March 31, 2007 as per applicable R.B.I. Guidelines on account of natural calamities, whether overdue or not.”
A Division Bench of this Court recently considered paragraph 4.1 of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 in Federal Bank Ltd. v. Baby, 2012 (1) KLT 417 and held that to
get the benefit under the Scheme the following conditions should be satisfied as required under sub-clause (1) of paragraph 4:-
i) The loan should have been disbursed upto 31st March, 2007.
ii) The loan should be overdue as on 31.12.2007.
iii)The loan should remain unpaid until 29th February, 2008.
In the instant case, apart from the fact that loans have been disbursed prior to 31.12.2007, it cannot be said that the loans were overdue as on 31.12.2007 and had remained unpaid till 29.2.2008. The petitioners had time till 10.7.2009, 18.5.2008 and 9.5.2008 respectively, namely the period during which the Kisan Credit Cards issued to them were valid to repay the loans
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availed by them . In such circumstances it cannot be said that the loans availed by them were overdue as on 31.12.2007. If that be so, the mere fact that the loans had been disbursed to them prior to 31.12.2007 is not a reason to hold that the petitioners are entitled to benefits under the Agricultural Debt Waiver and Debt Relief Scheme, 2008.
I accordingly hold that the demand made by the petitioner is not sustainable. The writ petition fails and is accordingly dismissed. No costs.
P.N.RAVINDRAN, Judge.
ahg.
P.N.RAVINDRAN, J.
W.P(C).No.1580 of 2010
JUDGMENT
21st May, 2012
1 issue framed by the court
Whether agricultural loans under Kisan Credit Card were overdue as on 31.12.2007 to attract debt waiver under the Agricultural Debt Waiver and Debt Relief Scheme, 2008.
Colour shows how this judgement treated each authority
Federal Bank Ltd. v. BabyReferred¶74
Federal Bank Ltd. v. Baby, 2012 (1) KLT 417
1 provisions across 1 enactments
P.S.JOHN
P.L.THRESIAMMA
P.J.FABIANOSE
THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) ALAPPUZHA
THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK LTD.
THE NODAL OFFICER, ALAPPUZHA DISTRICT CO-OPERATIVE BANK
P.N.RAVINDRAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
