C.W.P.No.6505 of 2011 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision : 14.11.2011 C.W.P.No.6505 of 2011 Charandeep Singh …Petitioner Versus Union of India and others …Respondents CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA HON’BLE MR. JUSTICE G.S.SANDHAWALIA Present : Mr. K.S.Sidhu, Senior Advocate, with Mr. Vikrant Oberoi, Advocate, for the petitioner. Mr. D.V.Sharma, Senior Advocate, with Ms. Mamta Rani, Advocate, for respondent Nos.2 & 3. HEMANT GUPTA, J. (Oral) Challenge in the present writ petition is to the orders dated 14.01.2010 (Annexure P-5) and 14.02.2010 (Annexure P-6), whereby the representation of the petitioner regarding concessional rate of interest was declined and it was communicated that the petitioner is entitled to rebate of 25% only, if he deposits the balance 75% of the outstanding amount. The petitioner has availed a loan of Rs.3 lac for the purchase and repair of agricultural machinery and equipment vide agreement dated 03.02.2000. In the year 2008, a scheme was framed called “Agriculture Debt Waiver and Debt Relief Scheme, 2008” (for short ‘the Scheme’) in pursuance of the Budget Speech of the Finance Minister for the year 2008- 09. In the said Scheme, different benefits were contemplated to be granted to marginal farmers, small farmers and other farmers. The petitioner claims 1 C.W.P.No.6505 of 2011 himself to be other farmer and, thus, claimed rebate of 25% and rate of interest not exceeding 7%. The benefit of the said Scheme was not initially granted to the petitioner, which led to filing of writ petition bearing CWP No.18262 of 2008 titled ‘Charandeep Singh vs. Union of India’ before this Court. The said writ petition was allowed on 18.11.2008, wherein the Bank was directed to pass fresh order in accordance with law. It is in pursuance of such direction, the impugned orders dated 14.01.2010 (Annexure P-5) and 14.02.2010 (Annexure P-6) have been passed. A perusal of the Scheme shows that separate three categories of farmers have been created. The marginal farmers are the farmers holding agricultural land upto 1 hectare (2.5 acres); small farmers holding agricultural land of more than 1 hectare and upto 2 hectares (5 acres); and other farmers holding agricultural land of more than 2 hectares (more than 5 acres). As per Clause 6.1 of the said Scheme, other farmers are to be given rebate of 25% of the eligible amount subject to the condition that the farmer pays the balance of 75% of the eligible amount. In terms of Clause 8.2, the amount is to be recovered alongwith applicable interest. The relevant Clauses 6.1 and 8.2. read as under: “6.1 In the case of other farmers, there will be a one time settlement (OTS) scheme under which the farmer will be given a rebate of 25% of the eligible amount subject to the condition that the farmer pays the balance of 75% of the eligible amount; Provided that in the case of revenue districts listed in Annex._I, other farmers will be given OTS rebate of 25% of the eligible amount or Rs.20,000/- whichever is higher, subject to the condition that the farmer pays the balance of the eligible amount.” 2 C.W.P.No.6505 of 2011 “8.2 Installments of investment credit which fall overdue after 31.12.2007 shall be recovered by the lending institutions alongwith the applicable interest. Lending institutions may, however, in appropriate cases, reschedule these installments in accordance with the normal policy of the lending institution concerned.” Learned counsel for the petitioner has argued that in terms of Clause IV.7 of the report dated 24.08.2010 (Annexure P-9) submitted by the Reserve Bank of India to Government of India, the petitioner is entitled to interest not exceeding 7% p.a. The relevant Clause reads as under: “During 2009-10, the Government provided (i) interest subvention of 2 per cent per annum to public sector banks in respect of short term production related credit upto Rs.3 lacs provided to farmers. This subvention was made available condition/precedent that short term credit at ground level was extended at 7 per cent per annum; and (ii) Additional interest subvention of 1 per cent per annum to public sector banks in respect of those farmers who repaid their short term production credit within one year of disbursement of such loans, so that the effective rate of interest for such farmers was 6 per cent per annum. In the Union Budget for 2010-11, the additional subvention for farmers who repaid loans promptly was enhanced to 2 per cent per annum, thereby reducing the effective rate of interest payable to 5 per cent per annum. Apart from the interest subvention scheme of the Union Government, several State Governments have also extended additional interest subvention on agricultural loans in their respective States.” Having heard learned counsel for the parties, we found that Annexure P-9 is the Annual Report of the Reserve Bank of India for the year ending 30.06.2010. It is the internal working of the Bank, which is reflected in Clause IV.7. The scheme, which is applicable, does not deal with any concessional rate of interest to the other farmers, as claimed by the petitioner. The Scheme only contemplates 25% rebate to the other farmers such is the present petitioner, who is holding 6 acres of land. Thus, the 3 C.W.P.No.6505 of 2011 petitioner is not entitled to any other benefit other than what has been communicated to the petitioner vide Annexures P-5 and P-6. Consequently, we do not find any merit in the present writ petition. The same is dismissed. (HEMANT GUPTA) JUDGE 14.11.2011 (G.S.SANDHAWALIA) Vimal JUDGE 4