Gujarat High Court
Patel Jayantibhai Prabhubhai vs The Manager on 8 August, 2025
Author: Sunita Agarwal
Bench: Sunita Agarwal
NEUTRAL CITATION
C/WPPIL/17/2019 JUDGMENT DATED: 08/08/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/WRIT PETITION (PIL) NO. 17 of 2019
With
R/SPECIAL CIVIL APPLICATION NO. 3980 of 2019
With
R/WRIT PETITION (PIL) NO. 18 of 2019
With
R/WRIT PETITION (PIL) NO. 19 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 4254 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 4300 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 6674 of 2019
With
R/SPECIAL CIVIL APPLICATION NO. 6676 of 2019
With
R/SPECIAL CIVIL APPLICATION NO. 6699 of 2019
With
R/SPECIAL CIVIL APPLICATION NO. 6697 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 6728 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 6682 of 2019
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R/WRIT PETITION (PIL) NO. 67 of 2019
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R/WRIT PETITION (PIL) NO. 66 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 4680 of 2022
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R/SPECIAL CIVIL APPLICATION NO. 4777 of 2022
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R/SPECIAL CIVIL APPLICATION NO. 4676 of 2022
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R/WRIT PETITION (PIL) NO. 68 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 8896 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 13951 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 14092 of 2019
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CIVIL APPLICATION (FOR JOINING PARTY) NO. 1 of 2020
In R/SPECIAL CIVIL APPLICATION NO. 14092 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 14091 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 13915 of 2019
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NEUTRAL CITATION
C/WPPIL/17/2019 JUDGMENT DATED: 08/08/2025
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R/SPECIAL CIVIL APPLICATION NO. 13820 of 2019
With
R/SPECIAL CIVIL APPLICATION NO. 13920 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 12984 of 2019
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R/WRIT PETITION (PIL) NO. 169 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 15570 of 2018
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CIVIL APPLICATION (FIXING DATE OF EARLY HEARING) NO. 1 of 2020
In R/SPECIAL CIVIL APPLICATION NO. 15570 of 2018
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R/SPECIAL CIVIL APPLICATION NO. 18252 of 2018
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R/SPECIAL CIVIL APPLICATION NO. 20084 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 20272 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 19390 of 2018
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CIVIL APPLICATION (FOR JOINING PARTY) NO. 2 of 2023
In R/SPECIAL CIVIL APPLICATION NO. 19390 of 2018
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R/SPECIAL CIVIL APPLICATION NO. 22603 of 2019
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R/SPECIAL CIVIL APPLICATION NO. 20161 of 2018
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R/SPECIAL CIVIL APPLICATION NO. 20167 of 2018
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R/SPECIAL CIVIL APPLICATION NO. 2049 of 2020
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R/SPECIAL CIVIL APPLICATION NO. 1371 of 2020
FOR APPROVAL AND SIGNATURE:
HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA
AGARWAL
and
HONOURABLE MR.JUSTICE D.N.RAY
=============================================
Approved for Reporting Yes No
✔
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PATEL JAYANTIBHAI PRABHUBHAI
Versus
THE MANAGER & ORS.
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NEUTRAL CITATION
C/WPPIL/17/2019 JUDGMENT DATED: 08/08/2025
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Appearance:
MR PATHIK M ACHARYA(3520) for the Applicant(s) No. 1
MS.MANISHA LAVKUMAR, LD. ADDL. ADVOCATE GENERAL
WITH MR. RAJ TANNA, ASST.GOVERNMENT PLEADER for the
Opponent(s) No. 3,4,5,6
MR.MIHIR JOSHI, SENIOR COUNSEL WITH MR.MITUL SHELAT,
MS.RAVEENA KINHABWALA AND MS DISHA N NANAVATY(2957)
for the Opponent(s) No. 2
NOTICE SERVED for the Opponent(s) No. 1
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CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE
SUNITA AGARWAL
and
HONOURABLE MR.JUSTICE D.N.RAY
Date : 08/08/2025
ORAL JUDGMENT
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)
1. Having heard Mr.Mihir Joshi, the learned Senior Counsel with Mr.Mitul Shelat, Ms.Raveena Kinhabwala and Ms.Disha Nanavaty, Ms. Manisha Lavkumar, the learned Additional Advocate General with Mr.Raj Tanna, the learned Assistant Government Pleader, the learned advocate Mr.P. B. Khambholja, the learned advocate Mr.Satish A. Pandya and Mr.Sangram Chinnappa for Mr.Subodh Kumud appearing in respective matters at length, suffice it to record that pursuant to an order dated 07.10.2020 passed by this Court, in this Public Interest Litigation, a Committee constituted by the State Government had examined claims of all insured farmers by considering the representation of such farmers, after summoning information from the insurance company. The insurance company reported to have been provided the details which were considered by the said Committee and an order Page 3 of 9 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:19:00 IST 2025 NEUTRAL CITATION C/WPPIL/17/2019 JUDGMENT DATED: 08/08/2025 undefined dated 11.07.2023 has been passed by the Director of Agriculture, Gandhinagar based on the report considering the information received, operational guidelines of the Pradhan Mantri Fasal Bima Yojana and the aims and objectives of the PMFBY.
2. The order of the Director of Agriculture, Gandhinagar brought on record with the affidavit dated 09.11.2023 filed by the Assistant Director of Agriculture (CIS - 1) records that as per the order, during Kharif- 2017 season, claim settlement of Rs.7,48,86,898/- towards 15,047 insured farmers (District- wise information given in Table - 9) are still pending, out of total 3,73,501 insured farmers of Cluster - 5 (Surendranagar, Morbi, Patan, Anand and Banaskantha) Districts. The insurance company namely SBI General Insurance Company Limited is required to pay these eligible claims at the earliest without any further delay. The operative portion of the order of the Director of Agriculture, Gandhinagar is required to be noted hereinunder:-
"10. Conclusion:
I. Total 3,73,501 farmers were insured farmers during Kharif-2017 in Cluster-5 districts and farmer's share premium was deducted and remitted to SBIGIC as per the information given dated 28.01.2022.
II. SBIGIC had paid Claims under Localised Calamities. SBIGIC had paid claims of 21,134 farmers under localised calamities in Cluster-5 districts. Out of farmers, 2 farmers also found eligible for payable claim difference amount of Rs.6035/-(Annexure-C) as per the Para no. XV.1.
(a) of OPGs and minutes of GOI dated 23.01.2019.
III. SBIGIC had paid Claims under season end yield (wide spread Calamities).
SBIGIC had accepted and paid claims of 69,799 farmers under season end yield based claim in accordance with the operational guidelines para no. XI.10. Out of 69,799 farmers, 113 farmers are found eligible for season end Page 4 of 9 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:19:00 IST 2025 NEUTRAL CITATION C/WPPIL/17/2019 JUDGMENT DATED: 08/08/2025 undefined yield based payable claim difference amount of Rs. 39,866/- (Annexure-E) as per the Para no. XI.10 of OPGs and 1096 farmers are eligible for localised calamity based payable claim of Rs.42,00,154/- (Annexure-F) as per the provision of para no. XV.1. (a). iv OPGs under PMFBY and as per on the decision of Minutes dated 23.01.2019.
IV. SBIGIC had accepted but not paid claims under any risks. SBIGIC had accepted but still not paid claims to 3215 insured farmers, However, out of above 3215 insured farmers, Localised Calamity claims of 905 farmers and season end yield based claims of 2310 farmers are eligible for claim settlement of Rs.94,73,131/- which is still pending towards all 3215 farmers by SB GIC.
V. Insured Farmers considered non eligible under all risks as per the SBIGIC during kharif-2017 Total 2,79,353 insured farmers in Cluster-5 districts considered non eligible for claim settlement under all the risks by SBIGIC. However, out of above 2,79,353 insured farmers, 10,568 farmers are found eligible under Localised Calamity payable claims of is Rs. 6,09,71,265/- as per the (Annexure-1) Minutes of GOI dated 23.01.2019 and 55 farmers are found eligible under season end yield based payable claims amount is Rs. 1,96,447/- as per OPGs under PMFBY (Annexure-H).
ORDER Government of Gujarat vide its letters dated 07.11.2020 directed this directorate to examine the case and take necessary action in this regards, taking into consideration of petitioner's representation dated 28.01.2022, information provided by Insurance Companies and reports from concern district officials, Operational Guidelines of PMFBY and aim and objectives of the PMFBY. I am as a Director of Agriculture Gujarat state hereby pass the following order.
For Kharif- 2017 season, Claim settlement of Rs.7,48,86,898/- for 15,047 insured farmers (District wise information given in Table-
9) is still pending Out of total 3,73,501 insured farmers of Cluster- 5 (Surendranagar, Morbi, Patan, Anand and Banaskantha) districts. SBIGIC shall pay these eligible claims at earliest without any delay."
3. This Court in the order dated 07.10.2020 noticing that in July - 2017, on account of uncontrolled floods in the State of Gujarat, crops of the farmers were completely destroyed and these farmers are registered under the Pradhan Mantri Fasal Page 5 of 9 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:19:00 IST 2025 NEUTRAL CITATION C/WPPIL/17/2019 JUDGMENT DATED: 08/08/2025 undefined Bima Yojana (PMFBY) and were entitled to compensation but payments have not been made to them, issued directions in the following manner:-
"11. At this stage, we only request the State authorities, Secretary, Agriculture and Cooperation Department (respondent No.5) to carry out an exercise and ensure as to whether not only the petitioners who are poor farmers but the other farmers covered under the Scheme have or have not been paid their due compensation and any such issue which may arise inter se the insurance company, the State and the farmers, may be resolved at the earliest. We may record here that according to Shri Joshi, learned Senior Counsel, substantial amount of compensation had already been released. However, the officers of the Insurance Company would also extend all cooperation in the exercise that may be taken to sort out the issues."
4. On the issue of maintainability of the Public Interest Litigation raised by the learned Senior Counsel appearing for the Insurance Company, the following observations have been made therein:-
"10. On that day, although in the beginning Shri Mihir Joshi, learned Senior Counsel had raised preliminary objection that the petition itself would not be maintainable and requested the Court to hear him on the said preliminary objection, but we had deferred the same in order to find out as to whether the petitioners are entitled under the Scheme / insurance cover or not for any compensation, whether ex-gratia, interim or otherwise. The preliminary objection would be dealt with at a later stage."
5. This Court had granted three months time to the respondent No.5 - Secretary, Agriculture and Cooperation Department, Government of Gujarat to complete the entire exercise and ensure that the farmers do not suffer it they are otherwise entitled. It was clarified that the Court had not examined the individual claims on merits.
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6. Taking note of the directions contained in the order dated 07.10.2020 passed by this Court directing the concerned secretary of the department of the State, the committee was constituted by the State Government, which had examined claims after considering the response of the insurance company, we are afraid to accept the contention of the learned Senior Counsel for the Insurance Company about the maintainability of the Public Interest Litigation. We are of the view that the issue raised before us, at this stage about the maintainability of the Public Interest Litigation on the premise that individual claims were required to be examined by the Insurance Company itself, cannot be accepted for the simple reason that this Court in the order dated 07.10.2020 had issued directions to conduct a comprehensive exercise to decide claims of all farmers, who suffered losses due to natural calamity like flood, while noticing that the farmers, who had suffered losses, were not indemnified for a long period. It is to be noted that this Court had also directed the officers of the insurance company to extend all cooperation in the exercise so as to sort out the issue.
7. Pertinent is to note that the claims are with regard to the losses suffered for Kharif Season 2017 - 2018 and this Court has recorded in the order dated 07.10.2020 that inspite of repeated representations made by the affected farmers, nothing had been done at the ends of the Implementing agency of the scheme in question. All questions as to who would be the Implementing agency and how the claims were to be examined, argued before us, on behalf of the insurance Page 7 of 9 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:19:00 IST 2025 NEUTRAL CITATION C/WPPIL/17/2019 JUDGMENT DATED: 08/08/2025 undefined company would not be relevant in the present Public Interest Litigation for the simple reason that an exhaustive inquiry was conducted by the Committee constituted by the State Government under the order of this Court, wherein required information has also been provided by the Insurance Company.
8. With the above, we reach at the conclusion that Insurance Company has no option but to make payment of the losses assessed by the Committee constituted under the order of this Court, as per the order dated 11.07.2023 passed by the Director of Agriculture. The deposit towards pending claims of 15,047 insured farmers to the tune of Rs.7,48,86,898/- are required to be made within a period of three weeks from today.
9. As there has been a deliberate delay and denial on the part of the Insurance Company to the claims examined by the Committee constituted under the order of this Court on the frivolous ground of maintainability of Public Interest Litigation, inspite of the above order of this Court, which has led to further delay in making payments to the eligible farmers, we are of the considered view that on the outstanding amount of claims of 15,047 insured farmers, which were adjudicated under the order dated 11.07.2023 by the Director of Agriculture, Gandhinagar, the Insurance Company is liable to pay simple interest at the bank rate of 8% per annum, which shall be disbursed to the eligible farmers proportionately, whose claims were found to be valid and to whom payment could not be made on account of non-
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10. With the above, we dispose of the present Public Interest Litigation connected with all other public interest litigations, where the larger interest of the non-payment of compensation under the scheme of the insured farmers has been raised, with the above directions. However, for the individual claims made in various writ petitions filed by the farmers, which are also connected with this bunch, for any grievances left with them, we leave it open for the individual petitioners to lay their claim, before the competent authority.
11. For any such claims made, the competent authority shall deal with the same independently without being influenced by any of the observations made hereinabove or the observations in the report of the Director (Agriculture), dated 11.07.2023.
12. With the above, the present bunch of public interest litigations as well as the individual writ petitions stand disposed of. Pending civil applications stand disposed of, accordingly.
(SUNITA AGARWAL, CJ ) (D.N.RAY,J) SAHIL S. RANGER Page 9 of 9 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:19:00 IST 2025