The petitioner has filed this writ petition praying to issue a Writ of Certiorarified Mandamus to calling for records relating pertaining to the impugned proceedings of the 1st respondent in his proceedings in R.C.No.523 of 2009 UB.3 dated 30.03.2009 dated 13.03.2013 and quash the same and direct the 2nd respondent to issue a Discharge Certificate for the loan obtained by the petitioner?s case under Agricultural Debt Waiver and Relief Scheme, 2008.
2.It is the case of the Petitioner that he applied for a loan for a Sum of Rs 5 Lakhs from the 2nd respondent Co-operative bank and his application was approved and he was sanctioned with Rs.4,98,000/- for the purpose of running a Dairy Farm business in the name and style of ?Vasudevan Dairy Farm?. Accordingly as first installment the petitioner was paid with an amount of Rs. 2,49,000/- and thereupon he awaited for the second installment of Rs.2,49,000/- to be paid. However he was paid with only Rs.22,000/- as second installment. In the meantime the petitioner found that the then Secretary of 2nd respondent Co-operative bank had misappropriated the said amount, whereupon he made a complaint before the respondents for criminal action against the errant Secretary.
3.It is further case of the petitioner that while so the Government of India announced a Debt waiver and Debt relief Scheme for farmers in the financial year 2008 ? 2009, such that enabling the farmers and the persons engaged in its allied business to pay their Agricultural loan availed from the Schedule Commercial Banks, Co-operative Credit institutions by waiving the outstanding interests and penal interests. Wherefore the petitioner made a claim before the respondents to confer the benefit of Debt waiver and Debt relief Scheme 2008 ? 2009 and contended thereby to waive of the interest and receive the Principal amount received by him. However petitioner?s claim was rejected by the 1st respondent holding that the loan on hand availed by the petitioner is not for agricultural purpose, whereas it was for renovation of building purpose. Aggrieved over the said order, petitioner is before this Court challenging the same.
4.I heard Mr.M.S.Suresh Kumar, learned counsel for the petitioner, Mr.Aayiram K.Selvakumar, learned Government Advocate for the respondents 1, 3 and 4 and Mr.T.Lajapathi Roy, learned counsel for the 2nd respondent and perused the entire records.
5.The Learned Counsel for the petitioner would submit that the loan availed was only for the purpose of running a Dairy Farm business in the name and style of ?Vasudevan Dairy Farm?. Accordingly he was sanctioned with Rs.4,98,000/-, for which the first installment was paid to the petitioner to the tune of Rs.2,49,000/- and second installment to the tune of Rs.22,000/- by the 2nd respondent Co-operative Bank. Pleased with the claim of farmers and persons engaged in other agricultural allied business all over country that they face unexplainable hardship of drought, flood, financial crisis and of other factors, the Government of India has announced a Debt waiver and Debt relief Scheme for farmers in the financial year 2008 ? 2009, such that enabling the farmers and the persons engaged in its allied business to pay their Agricultural loan availed from the Schedule Commercial Banks, Co- operative Credit institutions by waiving the outstanding interests and penal interests.
6.It is further contention of the Learned Counsel for the petitioner that the Scheme is applicable also to the loans availed for allied activities of dairy, poultry farming, goatery, sheep rearing, piggery, fisheries, bee- keeping, green house and bio gas. To substantiate his contention the Learned Counsel for the petitioner relies upon clause of Agricultural Debt Waiver and Debt Relief Scheme, 2008, which reads as following that ?3.3. Invest loan means.
(a)investment credit for direct agricultural activities extended for meeting outlays relating to the replacement and maintenance of wasting assets for capital investment to increase the output from the land e.g., deepening of wells, sinking of new well, installation of pump sets, of tractor, bullocks, land development and nontraditional plantations and horticulture;
(a)investment credit for allied activities extending for acquiring assets in respect of activities allied to agriculture e.g. Dairy, poultry farming, goatery, sheep rearing, piggery, fisheries, bee- keeping, green house and bio gas.?
7.Therefore, the learned counsel for the petitioner concludes his submission in view of Clause 3.3.(b) of Agricultural Debt Waiver and Debt Relief Scheme, 2008, that the above scheme squarely applies to the petitioner, who availed a loan to carry out and develop Dairy Farm.
8.Per Contra, the Learned Counsel for the respondents filed counter and submitted that the loan availed by the petitioner is neither agricultural loan nor for dairy farm as alleged nor for any other purpose, but was only to renovate and reconstruct the building. Therefore the petitioner?s claim for waiver of interest is unsustainable and liable to be rejected. The above Scheme is applicable and was extended only to Agriculturalist and not for any other sector. It is true that the then Secretary has misappropriated a huge sum of the 2nd respondent?s fund to the tune of 15.58 Crores. In this regard investigation was conducted by the Deputy Superintendent of Police, Economic Offence and having found that then Secretary had misappropriated 15.58 Crores FIR in Crime No.9 of 2003 was filed and the same after investigation came to be Charge Sheeted in C.C.No.71 of 2009. At the same time, the petitioner cannot make use of the circumstance, as if he had not received the balance loan.
9.It is the further contention of the respondents that the petitioner has failed to establish that he comes under the category of Investment Creditor for allied activities, allied to agriculture. Thereupon the Learned Counsel for the respondents concludes his submission that the Loan on hand, since being for renovation of building it cannot be held as an Agricultural loan or as a loan for dairy farm.
10.Hearing upon the rival submissions and on careful perusal of the available records.
11.Two indispensable questions to be looked into for deciding this writ petition are as following that as to whether the petitioner has availed the loan on hand for Dairy farm and as to whether he is entitled to be conferred with waiver of interest under Clause 3.3.(b) of Agricultural Debt Waiver and Debt Relief Scheme, 2008.
12.On perusal of the loan application of the petitioner and the corresponding Inspection report in page no 17 of the Additional typed set of papers made by the 2nd respondent, it is seen that the petitioner has availed the loan to renovate an old building, so as to develop his dairy farm. The relevant portion of the inspection report of the 2nd respondent Official is extracted hereunder ?There is cattle shed on the eastern side, wherein I found 10 milking cows with calfs. The building is old one long maintain property. The loan amount is required to develop to dairy farm.?
13.At this juncture it would be relevant to look into Clause 3.3.(b) of Agricultural Debt Waiver and Debt Relief Scheme, 2008, which reads as following that ?3.3. Invest loan means.
(a)...
...
...
(b)investment credit for allied activities extending for acquiring assets in respect of activities allied to agriculture e.g. dairy, poultry farming, goatery, sheep rearing, piggery, fisheries, bee- keeping, green house and bio gas.?
14.Therefore it is no doubt that the above clause is patent and requires no interpretation that the Scheme is applicable for allied operations to agriculture namely dairy, poultry farming, goatery, sheep rearing, piggery, fisheries, bee- keeping, green house and bio gas.
15.Now the next point for consideration is as to whether renovation of building for a Dairy farm would come under the purview of the above scheme. For proper appraisal it would be relevant to look into Clause 3.3.(a) of Agricultural Debt Waiver and Debt Relief Scheme, 2008, which reads as following that ?3.3. Invest loan means.
a) investment credit for direct agricultural activities extended for meeting outlays relating to the replacement and maintenance of wasting assets for capital investment to increase the output from the land e.g deepening of wells, sinking of new well, installation of pump sets, of tractor, bullocks, land development and nontraditional plantations and horticulture;
16.On careful perusal of the above clause it is obvious for this Court to notice that the above Scheme contemplates a variety of loans with regard to Agricultural operation involving plantation, purchase of tractor, bullocks, land development, investment designed to increase the output from the land and term loan for traditional and non- traditional plantations and horticulture, deepening of well. Therefore it is quite clear that the Frame of the above scheme also extends to and includes other kinds of loans, apart from that of Crop loans which is commonly called termed as Agricultural loan.
17.While adopting the same yard stick to the petitioner?s case that the 2nd respondent has sanctioned the loan for renovation of building to carry out a Dairy Farm, this Court finds that the claim of the petitioner have much force. It is also equally important to note that as per Clause 3.3. Invest loan means the investment credit for allied activities extending for acquiring assets in respect of activities allied to agriculture. Therefore this Court is of the considered opinion that the loan as availed by the petitioner for Dairy farm purpose and acquiring assets / Cattle shed renovation or reconstruction will also fall under the above scheme under the said clause.
18.In as much as the dispute with regard to the question as to whether the petitioner?s loan amount was misappropriated by the then secretary, this Court notices that the second respondent is definitely unsure about the balance loan amount and at the same time it is submitted that the petitioner?s share amount on record maintained by the 2nd respondent is in correspondence with sum of Rs.2.50 lakhs. The relevant portion of the Common counter of the respondents is extracted as under:
?However since the agreement is entered on advance, it is not sure whether he received Rs.4.98 lakhs or Rs.2.49 lakhs as informed by the petitioner. But the share amount indicates Rs.12,510/- which is 5% of Rs.2.50 lakhs?
19.In such circumstance it is found that on calculation of outstanding due of loan amount received by the petitioner as under ?Agricultural Debt Waiver and Debt Relief Scheme, 2008? by waiving the interest towards the loan the Amount due for payment arrives at Rs.2,71,000/-. The Learned Counsel for the petitioner had filed a Memo of calculation dated 14.07.2016 arriving at Rs.2,71,000/-.
20.Therefore, in view of the above facts and circumstances involved in this case, this Court deems fit to allow this writ petition by setting aside the impugned order.
21.In the result:
a) the writ petition is allowed by setting aside the order passed by the first respondent in R.C.No.523 of 2009 UB.3 dated 30.03.2009 dated 13.03.2013;
b) the petitioner is directed to pay a Sum of Rs.2,71,000/- as per the calculation memo dated 14.07.2016, with in a period of four weeks from the date of receipt of a copy of this order;
c) on payment of the said amount, the 2nd respondent is hereby directed to issue discharge Certificate for the loan obtained by the petitioner by considering the petitioner?s case under ?Agricultural Debt Waiver and Debt Relief Scheme, 2008?, within a period of four weeks thereafter. No costs.
To
1.The Registrar of Co-operative Societies, N.V.N. Maaligai, E.V.R. Road, Chennai ? 600 001.
2.The Liquidation Officer, A.28 The Madurai Urban Co-operative Bank Limited, No.32, Naicker New Street, Madurai ? 625 001.
3.The Joint Registrar of Co-operative Societies, Kanaga Apartments, Lady Doak College Road, Madurai ? 625 002.
4.The Deputy Registrar of Co-operaive Societies, K.K.Nagar, Madurai ? 625 020.
5.The Principal Secretary, Government of Tamil Nadu, Food Co-operation, Consumer Protection Department, (Co-operative Societies), Secretariat, St. George Fort, Chennai ? 600 009..