Kerala High Court

P.D.Naveen vs State Bank Of Travancore on 5 October, 2021

           IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                  PRESENT
         THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN
 TUESDAY, THE 5TH DAY OF OCTOBER 2021 / 13TH ASWINA, 1943
                       WP(C) NO. 4505 OF 2009
PETITIONER/S:

               P.D.NAVEEN, S/O. DAMODARA PRABHU
               PRABHU NIVAS, POOMARATHINGAL, KANDAKKADAVU,
               KUMBALANGHI VILLAGE, KOCHI TALUK, ERNAKULAM
               VILLAGE.
               BY ADV SRI.DINESH R.SHENOY


RESPONDENT/S:

    1          STATE BANK OF TRAVANCORE
               REGISTERED OFFICE AT THIRUVANANTHAPURAM AND,
               BRANCH AMONG OTHER PLACES AT PAZHANGAD,,
               KUMBALANGHI PO, COCHIN 682 007, ERNAKULAM
               DISTRICT
    2          UNION OF INDIA REP. BY THE SECRETARY
               FOR FINANCE, FINANCE MINISTRY.,NEW DELHI.
               BY ADV SHRI.P.VIJAYAKUMAR, ASG OF INDIA


OTHER PRESENT:

               SRI.JITHESH MENON,SC FOR SBI



        THIS    WRIT   PETITION     (CIVIL)   HAVING   COME   UP   FOR
ADMISSION ON 05.10.2021, ALONG WITH WP(C).4329/2009, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                        -2-
W.P.(C). Nos. 4505 & 4329 of 2009



              IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                    PRESENT
           THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN
 TUESDAY, THE 5TH DAY OF OCTOBER 2021 / 13TH ASWINA, 1943
                             WP(C) NO. 4329 OF 2009
     AGAINST THE ORDER/JUDGMENT IN OA 1579/1998 OF DEBT
               RECOVERY TRIBUNAL, ERNAKULAM, ERNAKULAM
PETITIONER/S:

                 P.D.ARUN,AGED 41 YEARS
                 S/O. DAMODARA PRABHU, PRABHU NIVAS,
                 KANDAKKADAVU,, ANDIKKADAVU P.O., KOCHI TALUK.,
                 ERNAKULAM DISTRICT.
                 BY ADV SRI.DINESH R.SHENOY

RESPONDENT/S:

      1          STATE BANK OF TRAVANCORE
                 HAVING ITS REGISTERED OFFICE AT
                 THIRUVANANTHAPURAM., AND BRANCH AMONG OTHER
                 PLACES AT PAZHANGAD,, KUMBALANGHI P.O., COCHIN
                 - 682 007, ERNAKULAM, DISTRICT.
      2          UNION OF INDIA
                 REP. BY THE SECRETARY FOR FINANCE,, FINANCE
                 MINISTRY, NEW DELHI.
      3          ADDL.R3.STATE OF KERALA
                 REPRESENTED BY THE CHIEF SECRETARY,
                 THIRUVANANTHAPURAM.
                 ADDL. R3.IS IMPLEADED AS PER ORDER DATED
                 10.02.2009
                 BY ADV SRI.K.S.DILIP

          THIS    WRIT      PETITION   (CIVIL)   HAVING   COME   UP   FOR
ADMISSION ON 05.10.2021, ALONG WITH WP(C).4505/2009, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                            -3-
W.P.(C). Nos. 4505 & 4329 of 2009



                                P.V.KUNHIKRISHNAN, J.
                               ==============================================================

                         W.P.(C) Nos.4329 & 4505 of 2009
                     ===================================================================================

                    Dated this the 5th day of October, 2021

                                               JUDGMENT

The above two writ petitions are connected and

therefore, I am disposing of these two writ petitions by a

common judgment. The prayers in these writ petitions are

almost same. It would be enough if the prayer in W.P.(C)

No.4329 of 2009 is extracted:

"a) A writ of certiorari or any other appropriate writ, order or direction quashing all the clauses of Exhibit P2 and Exhibit P3 relating to the proposal to limit the benefit of the Agricultural Debt Waiver and Debt Rellef Scheme 2008 to loans availed after 31/3/1997 alone.

b) A declaration declaring that all Agricultural Loans availed due as on 31/3/2007, regardless of the date of sanction of loan, will also come within the perview of the Agricultural Debt Waiver and Debt Relief Scheme 2008, in view

W.P.(C). Nos. 4505 & 4329 of 2009

of Exhibit P1 budget speech.

C) A writ, order or direction directing the respondents to give the benefit of Exhibits P1 and P2 to the petitioner also in full, treating his loans as also being eligible for loan waiver in full being a marginal farmer.

d) A writ of mandamus or any other appropriate writ, order or direction to re-computing the liability of the petitioner after applying the Agricultural Debt Waiver and Debt Relief Scheme 2008 and to raise any demand/file any execution petition against the petitioner only if there is any further amount that requires to be realized or recovered even after application of the Agricultural Debt Waiver and Debt Relief Scheme 2008."

2. When these two writ petitions came up for

consideration before this Court earlier, there was an interim

order staying the recovery. Subsequently, W.P.(C)

No.4329/2009 came up for consideration before this Court on

W.P.(C). Nos. 4505 & 4329 of 2009

10.02.2009, this Court modified the interim order, which is

extracted hereunder:

"Petitioner is a debtor of the first respondent. According to him, he is entitled to the benefit of the Agricultural Debt Waiver and Debt Relief Scheme proposed and approved by the Parliament following Ext.P6 speech of the Minister for Finance. However that Ext.P2 Circular has been issued restricting what is granted by the Parliament. On that plea this writ petition is admitted. Adv.Sri.K.S.Dilip takes notice for the first respondent.

Adv.Smt.Soumini Devi takes notice on behalf of Assistant Solicitor General.

2. So far as the first respondent is concerned it has issued Ext.P7 decision on the request of the petitioner on the basis of the Agricultural Debt Waiver and Debt Relief Scheme 2008. Petitioner is unable to point out any illegality on Ext.P7 so long as Ext.P2 stands. The question predominently is the correctness or Ext.P2.

Therefore I am not inclined to grant any

W.P.(C). Nos. 4505 & 4329 of 2009

interim relief as sought for. The execution proceedings in O.A.No.1579/1998 pending before the Debts Recovery Tribunal will therefore continue and can be taken to its logical end. However, if the petitioner succeeds in the writ petition and it is ultimately found that he is entitled to any benefit by way of deduction in the outstanding or waiver he will not be deprived of his entitlement to seek any restitution or contribution merely because order of stay is refused. The plea raised in this writ petition predominantly relate to the relief for which the second respondent may have to answer. Hence the second respondent is directed to file counter affidavit within 4 months.

3. It is also deemed proper that the State of Kerala represented by Chief Secretary is to be an additional respondent in this writ petition. Hence impleaded. Petitioner shall serve a copy of this writ petition on the additional respondent."

W.P.(C). Nos. 4505 & 4329 of 2009

3. Heard the learned counsel for the petitioner and the

learned Standing Counsel for the respondent Bank. I also

heard the learned Government Pleader for official

respondents.

4. According to the petitioners, in the light of Ext.P1

budget speech of the Finance Minister, the petitioner is entitled

the benefit of Agricultural Debt Waiver and Debt Relief

Scheme, 2008. Therefore, the learned counsel submitted that

the respondent Bank ought to have given the benefit of Ext.P2

scheme to the petitioner.

5. The learned Standing Counsel who appeared for the

Bank takes me through Exts.P2 and P3. In Ext.P2, clause 4.3

says that nothing contained in the scheme shall apply to any

loan disbursed by a lending institution prior to March 31,

1997. The learned counsel submitted that admittedly, the

petitioner availed the loan before 31.03.1997. Moreover, the

W.P.(C). Nos. 4505 & 4329 of 2009

learned counsel also takes me to clause 2.1 of Ext.P3.

6. I considered the contentions of the petitioner and

the learned Standing Counsel for the Bank. Based on a budget

speech this Court cannot include the petitioners within the

purview of Ext.P2 scheme. Ext.P2 is a scheme framed by the

Central Government. In Ext.P2 clause 4.3 is relevant and the

same is extracted hereunder:

"4.3 Nothing contained in this Scheme shall apply to any loan disbursed by a lending institution prior to March 31, 1997."

7. Similarly, clause 2.1 of Ext.P3 is also relevant and

the same is also extracted hereunder:

"2.1 The Scheme will cover direct agricultural loans extended to 'marginal and small farmers' and 'other farmers' by Scheduled Commercial Banks, Regional Rural Banks, Cooperative Credit Institutions (including Urban Cooperative Banks) and

W.P.(C). Nos. 4505 & 4329 of 2009

Local Area Banks (hereinafter referred to compendiously as "lending institutions") as indicated in the Guidelines."

8. Admittedly, the petitioners availed the loan before

31.03.1997. In such circumstances, according to me, the

petitioners are not entitled the benefit of agricultural debt

waiver and debt relief scheme, 2008.

9. Then the learned counsel for the petitioner

submitted that since the matter is pending before this Court,

some relaxation may be given as far as the interest portion is

concerned. That is a matter to be decided by the respondent

Bank. The petitioners are free to approach the respondent

Bank with a representation for that purpose and the

respondent Bank will do the needful in accordance to law.

Therefore, the writ petitions are disposed of in the

following manner:

W.P.(C). Nos. 4505 & 4329 of 2009

1. The petitioners are free to file representation before the 1st respondent Bank, if there is any surviving grievance to them, within three weeks from the date of receipt of a copy of this judgment.

2. If such a representation is received, the competent officer of the 1st respondent Bank will consider the same and pass appropriate orders in accordance to law, after giving an opportunity of hearing to the petitioners.

Sd/-

P.V.KUNHIKRISHNAN JUDGE das

W.P.(C). Nos. 4505 & 4329 of 2009

APPENDIX OF WP(C) 4329/2009

PETITIONER EXHIBITS EXHIBIT P1 TRUE PHOTOCOPY OF THE BUDGET SPEECH 2008-09 BY SHRI.P.CHITHAMBARAM, MINISTER OF FINANCE DATED 29/2/2008 EXHIBIT P2 TRUE PHOTOCOPY OF THE LETTER ISSUED BY THE CHIEF GENERAL MANAGER,RBI DATED 23/5/2008, TOGETHER WITH AGRICULTURAL DEBT WAIVER AND DEBT RELIEF SCHEME,2008 EXHIBIT P3 TRUE PHOTOCOPY OF IMPLEMENTATION CIRCULAR NO.1/2008 DATED 28/5/2008 ISSUED BY THE MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES. EXHIBIT P4 TRUE PHOTOCOPY OF THE LETTER DATED NIL SUBMITTED BY THE PETITIONER TO THE 1ST RESPONDENT SEEKING THE BENEFIT OF THE AGRICULTURAL DEBT WAIVER SCHEME EXHIBIT P5 TRUE PHOTOCOPY OF LETTER DATED 19/7/2008 ISSUED BY THE STATE BANK OF TRAVANCORE EXHIBIT P6 TRUE PHOTOCOPY OF THE LETTER DATED 29/7/2008 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT EXHIBIT P7 TRUE PHOTOCOPY OF THE LETTER DATED 11/8/2008 ISSUED BY THE ASSISTANT GENERAL MANAGER, SBT, ERNAKULAM RESPONDENT EXHIBITS EXHIBIT R1(a) CIRCULAR ISSUED BY THE BANK DATED 14.07.2004 EXHIBIT R1(b) CIRCULAR ISSUED BY THE BANK DATED 18.10.2006

W.P.(C). Nos. 4505 & 4329 of 2009

APPENDIX OF WP(C) 4505/2009

EXHIBIT P6 TRUE PHOTOCOPY OF THE LETTER No.AGM/1 DATED 6/8/2008 ISSUED BY THE 1ST RESPONDENT.

EXHIBIT P7 TRUE PHOTOCOPY OF THE REPRESENTATION DATED NIL SUBMITTED BY THE PETITIONER BEFORE THE DEPUTY GENERAL MANAGER, STATE BANK OF TRAVANCORE