This Complaint coming up before us for hearing on 14-03-11 in the presence of Sri B. Venkata Rao, advocate for complainant and opposite party remained absent and set exparte, upon perusing the material on record and having stood over till this day for consideration this Forum made the following:-

O R D E R

Per Sri A. Hazarath Rao, President:-

        The complainant filed this complaint U/S 12 of Consumer Protection Act, 1986 seeking waiver of loan amount covered by Agricultural gold loan, Rs.30,000/- towards harassment and mental agony and Rs.10,000/- towards incidental expenses.

2.    In brief the averments of the complaint are these:

        The complainant borrowed Rs.35,000/- on 02-01-07 by pledging his gold ornaments with the opposite party for the purpose of agriculture.   The complainant is having 2.55 cents of dry land and thus he is a small farmer.   The complainant is unable to discharge his loan.  While things stood thus the Government of India announced Debta Waiver Scheme, 2008.  The complainant is entitled to the benefits under the said scheme.   Inspite of requests the opposite party did not give benefits of the said scheme to the complainant.   The conduct of the opposite party amounted to deficiency of service.

3.      The contention of the opposite party in brief is hereunder:

        The opposite party remained exparte though entered appearance through an advocate.

4.   Exs.A-1 to A-7 were marked on behalf of complainant.
                 

5.     Now the points that arose for consideration are:

        1.   Whether the opposite party committed deficiency of service?

2.   To what relief?

6.     POINT No.1:-    The complainant borrowed Rs.35,000/- under agricultural gold loan on 02-01-07 from the opposite party vide Ex.A-6 debit notice.     Ex.A-5 of village account No.3 revealed that the complainant had 2.50 cents of dry land.   It can therefore be said that the complainant is a small farmer.  No reliance can be placed on        Ex.A-7 letter as it did not contain the seal of the opposite party.   The complainant addressed a letter to the opposite party on 24-04-07 as seen from Ex.A-4 notice.  By the time of notice the Debt Relief Scheme did not come into force.   The complainant did not issue any notice prior to filing the complaint informing his entitlement under Debt Waiver Scheme, 2008.

7.     The relevant portion in the guidelines issued under the Debt Relief Scheme, 2008 are detailed hereunder,

1. Introduction:
   1. The Finance Minster, in his Budget speech for 2008-09, announced a Debt Waiver and Debt Relief Scheme for farmers.
   2. Guidelines for implementation of the Scheme are given below.

1. SCOPE:
   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 Local Area Banks (herein after referred to compendiously as “lending institutions”) as indicated in the Guidelines.
   2. The scheme shall come into force with immediate effect.
2. Definitions:
   1. Direct Agricultural Loans means Short Term Production Loans and Investment Loans provided directly to farmers for agricultural purposes.   This would also include such loans provided directly to groups of individual farmers (for example Self Help Groups and Joint Liability Groups), provided Banks maintain disaggregated data of the loan extended to each farmer belonging to that group.
   2. Short Term Production Loan means a loan given in connection with the raising of crops which is to be repaid within 18 months.   It will include working capital loan, not exceeding Rs.1 lakh, for traditional and non traditional plantations and horticulture.
   3. ______
   4. _________
   5. Marginal Farmer means a farmer cultivating (as owner or tenant or share cropper) agricultural land up to 1 hectare (2.5 acres).
   6. Small farmer means a farmer cultivating (as owner or tenant or share cropper) agricultural land of more than 1 hectare and upto 2 hectares (5 acres)
   7. Other Farmer means a farmer cultivating (as owner or tenant or share cropper) agricultural land of more than 2 hectares (more than 5 acres).

Explanation:

1. _________
2. __________
3. In case of a farmer who has obtained investment credit for allied activities where the principal loan amount does not exceed Rs.50,000/-, he would be classified as “small and marginal farmer” and, where the principal amount exceeds Rs.50,000/- he would be classified as ‘other farmer’, irrespective in both cases of the size of the land holding, if any.

4.   Eligible amount:

          4.1   The amount eligible for debt waiver or debt relief, as              the case may be (hereinafter referred to as the                           eligible amount) shall comprise of:

          a) In the case of a short-term production loan, the                             amount of such loan (together with applicable interest);

          i) Disbursed up to March 31, 2007 and overdue as on                 December 31, 2007 and remaining unpaid until                         February 29, 2008.

          ii) restructured and rescheduled by Banks in 2004 and in                    2006 through the special packages announced by                                 the Central Government, whether overdue or not; and

          iii) restructured and rescheduled in the normal course                up to March 31, 2007 as per applicable RBI guidelines                 on account of natural calamities, whether overdue

               or not.

5. Debt Waiver:

          5.1 In the case of a small or marginal farmer the entire                             eligible amount shall be waived.

6. Debt Relief:

          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 per cent of the    ‘eligible amount’ subject to the condition that the           farmer pays the balance of 75 percent of the eligible     amount’;

8.     Ex.A-5 village account revealed that the complainant is having Ac.2.50 cents of dry land.  It can therefore be said that the complainant is a small farmer as such he is entitled to the benefit under Debt Waiver Scheme, 2008.  Therefore, this point is answered in favour of complainant.

9.             The Debt Relief Scheme, 2008 is undoubtedly a welfare measure and announced in order to give relief to the farmers those who availed loans prior to 31-03-07 even by reconstructing and rescheduling in the year 2004 and 2006. The significance was attached to those cut off dates as fixed in guidelines in respect of its disbursal, over due and remains unpaid.   The gap in between the period of disbursal and over due is nine months only.   If one year period has to be computed from the date of sanction of loan, the loans disbursed in the month of January, February or March, 2007 could not be overdue by 31-12-07.  If that is the position, why cut off date was given in the guideline as 31-12-07 was mentioned and its significance has to be considered.     Being a beneficial legislation a liberal approach can be made in applying those guidelines.   Therefore, we opine that the complainant is entitled to the benefits of loan waiver scheme and its non application amounted to deficiency of service.

10.   The in-action of the opposite party in not applying the said scheme to the complainant in our consideration was due to the language applied in it.   The complainant claimed Rs.30,000/- towards harassment and mental agony and Rs.10,000/- towards accidental expenses.   Without issuing any notice or intimation to the opposite party how the complainant was put to mental agony and harassment.   As no fixed Court fee is payable under Consumer Protection Act many of the complainants are claiming huge amounts as compensation towards harassment and mental agony.   As there was no prior intimation to the Bank regarding his entitlement to the benefits under Debt Waiver Scheme, 2008 the complainant is not entitled to any amount under mental agony and incidental expenses.

11.    In view of the above findings, in the result the complaint is partly allowed in part as indicated below:

1. The opposite party is directed to write off the gold loan of                the complainant covered by AGL-2006, 2107. 

2. The claim of the complainant for compensation and legal                  expenses is negatived.

3. Each party has to bear their costs.

        Dictated to Junior Steno, transcribed by her, corrected by us and pronounced in the open Forum dated this the 18^th day of              March, 2011.

MEMBER                                             MEMBER                                             PRESIDENT

APPENDIX OF EVIDENCE

DOCUMENTS MARKED

For Complainant:

For opposite party :   NIL

                                                                                           PRESIDENT