IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE CHIEF JUSTICE MR.J.CHELAMESWAR & THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN WEDNESDAY, THE 11TH AUGUST 2010 / 20TH SRAVANA 1932 WP(C).No. 3373 of 2010(S) ------------------------- PETITIONERS: --------------- 1. KARSHAKA SANGHATANA AYKYAVEDI, (FARMERS ORGANISATION'S FRONT)HAVING IT'S HEAD OFFICE AT NO.67,KUMARANASAN NAGAR, KADAVANTHRA, ERNAKULAM, REPD.,BY IT'S GENERAL SECRETARY, JOSE CHEMBARY. 2. KERALA NIYAMA SAHAYA SAMITHI, REGISTERED OFFICE, VYAS BLDG.,MOOVATUPUZHA, ERNAKULAM, REPD.BY IT'S GENERAL SECRETRY,C.N.SOMAN. BY ADV. SRI.P.C.THOMAS SRI.ROJO J.THURUTHIPARA RESPONDENT: --------------- THE STATE BANK OF TRAVANCORE, (ASSOCIATE OF THE STATE OF INDIA) HAVING ITS HEAD OFFICE AT TRIVANDRUM. REPRESENTED BY ITS THE GENERAL MANAGER (OPERATIONS). ADV. SRI.T.SETHUMADHAVAN, STANDING COUNSEL SRI.PUSHPARAJAN KODOTH SRI.K.JAYESH MOHANKUMAR THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 3373 of 2010(S) APPENDIX PETITIONERS' EXHIBITS: EXT.P1 : TRUE COPY OF THE CIRCULAR NO.SAMD/14/2009 DATED 22.12.2009 ISSUED BY THE RESPONDENT DIRECTING ITS BRANCHES TO INVOKE SARFAESI ACT AGAINST PLANTATIONS. EXT.P2 : TRUE COPY OF THE REPRESENTATION DATED 15.01.2010 SUBMITTED BY THE PETITIONERS TO THE RESPONDENT AND ITS ENGLISH TRANSLATION. EXT.P3 : TRUE COPY OF THE JUDGMENT DATED 24.06.2009 OF THIS HON'BLE COURT IN W.P.(C) NO.15135 OF 2009. EXT.P4 : TRUE COPY OF THE JUDGMENT DATED 23.01.2007 OF THIS HON'BLE COURT IN WA NO.1057 OF 2006. /TRUE COPY/ PA TO JUDGE J.Chelameswar, C.J. & P.N.Ravindran, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) No. 3373 OF 2010 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 11th day of August, 2010 JUDGMENT J.Chelameswar, C.J. Heard Sri.P.C.Thomas, learned counsel appearing for the petitioners and Sri.T.Sethumadhavan, Standing Counsel for the respondent Bank. 2. This writ petition is filed challenging a Circular issued by the sole respondent Bank dated 22.12.2009. The relevant portion of the Circular reads as follows: “In terms of section 31(i) of the SAEFAESI Act, the provisions of the Act shall not be applicable to 'agricultural land'. Plantations were hitherto treated to be agricultural land and accordingly action for enforcement of such securities under the provisions of the above Act was not encouraged. However, the Kerala High Court has, in K.P. Muhammed Basheer v. the Deputy General Manager, Kannur District Co- operative Bank Limited & Another [2009(4) KLT 358], held that considering the scope and ambit of the relevant provisions of law and also the scheme of the statue, plantations are not included in 'agricultural land' referred to in section 31(i) of the SARFAESI Act. As per this decision, the branches are advised that action for enforcement of security under SARFAESI Act can be initiated in the case of plantations. Branches and controllers are therefore advised to identify NPA accounts secured by mortgage of plantations and W.P.(C) No. 3373 of 2010 -:2:- to initiate action for enforcement of such securities immediately, in those accounts where such action had not been initiated so far, for the reason that the security is 'agricultural land'. Please note that these instructions are applicable to suit filed accounts also where plantations are obtained as security.” 3. Such a Circular came to be issued in the light of a reported decision of this Court in K.P. Muhammed Basheer v. the Deputy General Manager, Kannur District Co-operative Bank Limited & Another [2009(4) KLT 358]. 4. The abovementioned decision of a learned Judge of this Court came to be reversed subsequently in a reported decision in Muhammed Basheer v. the Deputy General Manager, Kannur District Co-operative Bank Limited[2010 (2) KLT 577]. In the circumstances the impugned Circular cannot be sustained and the same is accordingly declared illegal. The writ petition is allowed only to the abovementioned extent. J.Chelameswar, Chief Justice. P.N.Ravindran, Judge. ttb W.P.(C) No. 3373 of 2010 -:3:-