IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE KURIAN JOSEPH FRIDAY, THE 19TH SEPTEMBER 2008 / 28TH BHADRA 1930 WP(C).No. 32845 of 2006(I) --------------------------------------- PETITIONERS: -------------------- 1. THE POOTHADY SERVICE CO-OP.BANK LTD. NO.F. 1011, KENICHIRA, WAYANAD-673 596, REP. BY ITS PRESIDENT JOSE KAITHAMATTOM. 2. PANAMARAM SERVICE CO-OP.BANK LTD.NO. C 6643, PANAMARAM P.O., WAYANAD, REP. BY ITS PRESIDENT MR.K.C.NANOO. BY ADV. SRI.P.N.MOHANAN RESPONDENTS: ----------------------- 1. STATE OF KERALA, REP. BY SECRETARY TO GOVERNMENT, CO-OPERATION DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. SECRETARY TO GOVERNMENT, AGRICULTURAL DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 3. REGISTRAR OF CO-OP.SOCIETIES(G), THIRUVANANTHAPURAM. 4. JOINT REGISTRAR OF CO-OP.SOCIETIES (G), WAYANAD. GOVERNMENT PLEADER SRI.NOBLE MATHEW THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.32845/2006 JUDGMENT Dismissed as infructuous. 19.09.2008 SD/- KURIAN JOSEPH, JUDGE /TRUE COPY/ P.A. TO JUDGE tss J.M.JAMES, J. ------------------- W.P.(C). 32845/2006 -------------------- Dated this the 11th day of December, 2006 O R D E R The prayer of the writ petitioners, the Primary Co-operative Societies, is to stay the direction, issued through Exts.P2, P3, P4, P6 and P7 orders of the authorities, for writing off agricultural debts to an extent of Rs. 2 lakhs. The action was to be taken before 10.12.2006 and compliance report was to be filed, as per the proforma supplied. The learned counsel submits that if the circulars and directions issued by the authorities are complied with, there will be heavy loss to the writ petitioners. 2. As per Exts.P2 and P3, the Government had decided to write off only agricultural debts, outstanding against the farmers who committed suicide, to an extent of Rs. 2 lakhs. However, under Ext.P6 dated 28.11.2006, the liability of the amount on the Co-operative Society/Bank due to the writing off of the debts was W.P.(C).32845/2006 2 reduced from Rs. 2 lakhs to Rs. 1 lakh. Above one lakh the Government would bear the same. 3. Though the policy decision had been taken to write off agricultural debts, no mechanism has yet been evolved to find out, whether the agricultural loans, obtained, by the farmers had been used for agricultural purposes or for non-agricultural purposes. On the officials issuing loans, in the name of the agricultural purposes, but if the same having been utilised for non- agricultural purposes, could that loan be written off, merely because the farmers had committed suicide? If that is done, it would cause heavy drain to the exchequer and adversely affect the Co-operative movement, which is spread over the State and regulated by the Co- operative Societies Acts and Rules. 4. In the above facts situation, it is necessary that a detailed counter is to be filed, as the safeguards had to be taken by the Government, in ensuring that the loans sanctioned for agricultural purposes, had been strictly used for the agricultural activities and not for W.P.(C).32845/2006 3 any other activities. The Government has to take such measures to ensure that the amount sanctioned was only for the agricultural purposes and not for any other reasons. The utility should also be for agriculture alone. Only in such situations, the loans, even if called as agricultural loans and debts, could be written off. 5. Till a final decision is taken in this writ petition, there shall not be any coercive action against the writ petitioners. Post on 18.12.2006. J.M.JAMES JUDGE mrcs