Quashed

Vakkom Farmers' Service Co-Operative Bank Ltd. v. Smt. Sindhu S.

Kerala HC10 Nov 2016WP(C)/1673/2014

Case brief

AI extract

What is this about?

A co-operative bank challenged an order of the Kerala State Farmers' Debt Relief Commission granting debt relief benefits to a borrower for an educational loan. The court examined the definition of debt under the Act and held that the Commission lacks jurisdiction over educational loans as they do not pertain to agricultural activities.

What did the court decide?

The impugned order (Ext.P3) granting benefits was set aside and the writ petition was disposed of allowing the petitioner bank to proceed against the borrower.

Vakkom Farmers' Service Co-Operative Bank… — Pension and Retirement Benefits | Kerala HC (2016)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE

¶4

THURSDAY, THE 10TH DAY OF NOVEMBER 2016/19TH KARTHIKA, 1938

¶5

WP(C).No. 1673 of 2014 (H)

¶6

PETITIONER(S) :

¶7

1. VAKKOM FARMERS' SERVICE CO-OPERATIVE BANK LIMITED, NO. 542, VAKKOM P.O., TRIVANDRUM, REPRESENTED BY ITS MANAGING DIRECTOR.

¶8

2. MANAGING DIRECTOR,

¶9

VAKKOM FARMERS' SERVICE CO-OPERATIVE BANK LIMITED NO. 542, VAKKOM P.O, TRIVANDRUM.

¶10

BY ADV. SRI.M.BALAGOVINDAN

¶11

RESPONDENT(S) :

¶12

1. SMT. SINDHU S., W/O. SASIDHARAN, PRAMOD NIVAS, VAKKOM P.O., THIRUVANANTHAPURAM- 695 136.

¶13

2. KERALA STATE FARMERS' DEBT RELIEF COMMISSION, REPRESENTED BY THE SECRETARY, AGRICULTURAL URBAN MARKET, VENPALAVATTOM, AANAYARA P.O., TRIVANDRUM- 695 142.

¶14

3. REGISTRAR OF CO-OPERATIVE SOCIETIES, OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, TRIVANDRUM- 695 001.

¶15

R3 BY SR. GOVERNMENT PLEADER SRI. M.V.ANANDAN

¶16

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶17

Msd.

¶18

WP(C).No. 1673 of 2014 (H)

¶19

APPENDIX

¶20

PETITIONER(S)' EXHIBITS :

¶21

EXHIBIT-P1 TRUE COPY OF THE BOND EXECUTED BY THE 1ST RESPONDENT ALONG WITH HER HUSBAND AS A CO-SURETY TO THE PETITIONER ON 24/08/2011.

¶22

EXHIBIT-P2 TRUE COPY OF THE STATEMENT ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT.

¶23

EXHIBIT-P3 TRUE COPY OF THE ORDER DATED 24/09/2013.

¶24

EXHIBIT-P4 TRUE COPY OF THE REVIEW PETITION DATED 20/11/2013.

¶25

EXHIBIT-P5 TRUE COPY OF THE ORDER IN REVIEW DATED 25/11/2013.

¶26

RESPONDENT(S)' EXHIBITS :

NIL

//TRUE COPY//

P.A.TO JUDGE.

Msd.

A.MUHAMED MUSTAQUE, J.

¶32

W.P.(C).No.1673 of 2014

¶33

Dated this the 10^th day of November, 2016

¶34

J U D G M E N T

¶35

This writ petition is filed by a Co-operative Bank aggrieved by an order passed by the Kerala State Farmer's Debt Relief Commission.

¶36

The 1^st respondent approached the Commission stating that she is a farmer and she is entitled for the benefit provided under the Kerala Farmers' Debt Relief Commission Act, 2007 (Act 1 of 2007). Commission by Ext.P3 order granted certain benefits to the 1^st respondent. Petitioners challenges the final order in this writ petition. Petitioners also have moved an application for review before the Commission. It seems that applications have been rejected by Etx.P5. Main contention of the petitioner is that loan availed by the petitioner was for education purpose and commission has no power to grant any benefit in terms of Act 1 of 2007. The only question now alive in this matter is whether the loan was taken for educational purpose or for agricultural purpose and whether it would come under the Act 1 of

W.P.C.1673/14

The Debt Relief Commission was enacted for redressal of grievances of farmers on account of agrarian crisis. The Section 2 (vii) of the Act defines debt as follows:

¶41

“Debt” means any liability, whether secured or unsecured due from a farmer on or before the commencement of this Act whether payable under a contract, or under a decree or order of any Court or Tribunal, or otherwise, and includes,

¶42

(a) any sum payable to,-

¶43

(i) an institutional creditor; (ii) a Co-operative Society

¶44

(b) any sum borrowed by a farmer from the

¶45

creditor;

¶46

But does not include any loan amount taken by the farmer for commercial purpose or luxury other than agricultural allied commercial purposes, to augment his income and the amount payable to Central or State Governments or other State Governments or Governments of Union Territories and the amount due to Local Self Government institutions, Statutory Bodies, Central or State Public Sector undertakings and other institutions as may be specified by the Government by notification.”

¶47

A comprehensive reading of Section 2 made clear that

¶48

debt does not include any loan other than one obtained in relation to the agricultural or allied activities. This Court is of

¶49

W.P.C.1673/14

¶50

¶51

the view that Debt Relief Commission therefore has no jurisdiction to entertain the complaint in respect to education loan and decide the matter. Accordingly Ext.P3 is set aside.

¶52

Writ petition is disposed of. Petitioner bank is at liberty to proceed against the borrower in accordance with law. No costs.

¶53

Sd/- (A.MUHAMED MUSTAQUE, JUDGE)

¶54

TRUE COPY

¶55

P.A TO JUDGE

¶56

Vakkom Farmers' Service Co-Operative Bank Ltd. v. Smt. Sindhu S.

Case brief

What is this about?

What did the court decide?

Vakkom Farmers' Service Co-Operative Bank Ltd. v. Smt. Sindhu S.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Seablue Shipyard Limited Vs Ganesh

Jom C.Michael Vs Smt.v.R.Latha

Rangorath Gokul Prasad Vs Sri. C.Jayan

Thankamony K. Vs Babu

Dharmadam Service Co-Operative Bank Ltd. Vs Joint Registrar (General) in Charge of

Mary, W/O.M.a. Ouseph Vs the Thalassery Primary Co. Op.Agrl.