DATE OF FILING: 07.10.2009

BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 30th day of March, 2010

Present:

SRI.LAIJU RAMAKRISHNAN PRESIDENT

SMT.SHEELA JACOB MEMBER

SMT.BINDU SOMAN MEMBER

C.C No.198/2009

Between

Complainant : Joseph Varkey,

Kavalakkattu House,

Muttom P.O, Thodupuzha, Idukki District.

( By Adv: K.M.Sanu)

And

Opposite Party : The Secretary,

Thodupuzha Primary Co-operative

Agricultural & Rural Development Bank Limited No.4388,

Thodupuzha P.O, Thodupuzha,

Idukki District.

(By Adv: Thomas Sebastian)

O R D E R

SRI.LAIJU RAMAKRISHNAN(PRESIDENT)

The complainant is an agriculturist. On 17.03.2001 the complainant applied for a loan to the opposite party bank for a hatchery unit and the opposite party sanctioned the same. But the complainant received only Rs.2 lakhs on that day. 78 cents of land of the complainant was given as security for the above loan. A project report was filed before the opposite party bank for a hatchery unit. But the opposite party sanctioned a very small amount for the same. The complainant availed small scale industry registration for this project for a temporary period. But when the opposite party denied to sanction the loan as per the project report, the registration was cancelled. The complainant received only 2 lakhs from the opposite party and he started growing fish with the sanctioned amount. A margin money of Rs.1,76,000/- was received from the Industrial Department, but the amount was paid to the opposite party bank for the dues in the loan account. The complainant was not able to utilise the margin money sanctioned from the Industrial Department. So the complainant gave a letter to the opposite party stating that he never want the balance Rs.1 lakhs. Complainant paid an amount of Rs.1,46,184/- to the opposite party bank upto 26.12.2007. But the fish farming was completely loss and the complainant was not able to repay the balance amount. The Central Government issued a circular stating the Agricultural Debt Waiver and Debt Relief Scheme 2008. The complainant's agricultural loan is also entitled to get the benefit of write off of the Central Government. But the opposite party deliberately denied to pay the same. The complainant constructed a pond and conducted fish farming in that pond which is absolutely an agricultural activity and he is entitled to get the benefit as per the scheme declared by the Central Government. But the opposite party issued a notice on 21.07.2009 demanding Rs.2,56,589/- which is illegal and the interest calculation is against the law. So this petition is filed to get the benefit as per the Agricultural Debt Waiver and Debt Relief Scheme 2008 declared by the Central Government.
 

2. It is admitted by the opposite party that the complainant had applied for a loan of Rs.3,00,000/- for the purpose of starting a hatchery unit under non-farm for pisciculture, to the opposite party. The complainant applied the said loan for industrial purpose along with SSI registration from the Industrial Department. He purposefully applied under non-farm loan for industrial purpose for availing benefits from Industrial Department. The opposite party sanctioned the said loan and the complainant had withdrawn Rs.2 lakhs. The loan amount of Rs.1 lakh was disbursed on 20.03.2001 and again Rs.1 lakh was disbursed on 17.05.2001. But the complainant did not utilise the loan amount for the purpose of hatchery. Therefore on 22.10.2001 a letter was issued by the opposite party to the complainant stating that complainant has not utilised the loan amount for hatchery and if the loan amount is not utilised for the said purpose, the opposite party is entitled to claim all amount outstanding in lump sum. As the complainant has not utilised the loan amount already disbursed for hatchery, the complainant is not entitled to get the balance loan amount of Rs.1,00,000/-. The complainant obtained Rs.1,76,000/- from the Industrial Department as subsidy, margin money etc. The complainant remitted Rs.1,25,000/- towards the arrears in loan account and the balance amount of Rs.51,000/- was withdrawn by the complainant. The complainant has availed 3 loans from the opposite party bank. An amount of Rs.48,000/- was withdrawn from those 3 loan accounts. In the year 2008, Government implemented Agricultural Debt Waiver and Debt Relief Scheme. This opposite party recommended the above said agricultural loan and the non-farm loan for hatchery, for waiver and relief under Agricultural Debt Waiver and Debt Relief Scheme to Kerala State Co-operative Agricultural and Rural Development Bank(APEX Bank). The APEX Bank informed this opposite party that since the loan for hatchery is sanctioned and disbursed under non-farm for pisciculture, the complainant is not entitled for waiver and relief. An amount of Rs.46,508/- outstanding in the agricultural loan of the complainant was waived under the Agricultural Debt Waiver and Debt Relief Scheme. The above said non-farm loan for hatchery was sanctioned on 4.03.2001. The Agricultural Debt Waiver and Debt Relief Scheme is applicable only to loans sanctioned and disbursed under agricultural loan. The opposite party has given all the benefits under the Agricultural Debt Waiver and Debt Relief Scheme to the complainant. The opposite party has not collected any excess interest. So there is no deficiency in service on the part of the opposite party and the petition may be dismissed.
 

3. The point for consideration is whether there was any deficiency in service on the part of the opposite party, and if so, for what relief the complainant is entitled to?
 

4. The evidence consists of the oral testimony of PW1 and Exts.P1 to P5 marked on the side of the complainant and the oral testimony of DW1 and Exts.R1 to R9 marked on the side of the opposite party.
 

5. The POINT :- Complainant availed a loan of Rs.2 lakhs from the opposite party bank for pisciculture, growing fish etc. But he was not able to repay the amount because of the loss in his fish farming. But he is entiteld to get the benefit as per the Agricultural Debt Waiver and Debt Relief Scheme of the Central Government. Complainant was examined as PW1. Copy of the loan pass book of the complainant is marked as Ext.P1. Ext.P2 is the copy of the petition filed by the complainant to the opposite party bank in order to get the benefit of Agricultural Debt Waiver and Debt Relief Scheme offered by the Central Government. On 17.03.2001 a loan of Rs.3 lakhs was sanctioned by the opposite party for pisciculture to the complainant. The complainant received Rs.2 lakhs in that loan amount. A project report was given to the opposite party for Rs.8,75,000/-. Eventhough the project report was sanctioned by the opposite party, the loan was disbursed for only 3 lakhs rupees. The complainant obtained a temporary registration from the Industrial Department  for getting the loan amount. But the registration was cancelled because the opposite party never sanctioned as per the project report. So the complainant started fish growing in the two ponds constructed by the complainant and received 2 lakhs from the opposite party bank. A margin money loan of Rs.75,000/- was sanctioned from the Industrial Department to the complainant. But it was received by the opposite party as the dues of the loan and so the complainant never received the amount sanctioned from the Industrial Department. Upto 26.12.2007, the complainant paid Rs.1,46,184/-. The complainant is entitled to get the benefit of Agricultural Debt Waiver and Debt Relief Scheme offered by the Central Government. Ext.P3 is the notice issued from the opposite party bank, when PW1 applied to the opposite party for including in the Agricultural Debt Waiver and Debt Relief Scheme. Ext.P4 is the notice issued from the opposite party bank for demanding an amount of Rs.2,56,589/-. Ext.P5 is the circular issued by the Central Government stating the Agricultural Debt Waiver and Debt Relief Scheme of the Government.

6. The complainant applied for loan to the opposite party bank for starting pisciculture. An SSI registration was also obtained for the same. The opposite party was examined as DW1. After disbursing the loan amount, the complainant has not utilised the loan amount for hatchery unit. If the loan amount is not used for the said purpose, the opposite party is entitled to claim all amount outstanding in lump sum. Copy of the letter given to the complainant stating the same is Ext.R2. Ext.R1 is the copy of the loan sanction letter. Ext.R3 is the letter received from PW1 requesting time to start the hatchery unit. The complainant has availed another 3 agricultural loans and an amount of Rs.48,000/- was withdrawn from those 3 loan accounts. In the year 2008, Government implemented Agricultural Debt Waiver and Debt Relief Scheme and write off benefits of Rs.46,508/- was given to the complainant in that agricultural loans. Evenafter the opposite party recommended the above said loan, for the Agricultural Debt Waiver and Debt Relief Scheme to the Kerala State Co-operative Agricultural and Rural Development Bank(APEX Bank) and the APEX bank informed that the loan was disbursed under non-farm for pisciculture and it is not an agricultural loan. So the complainant is not entitled for waiver/relief. This matter was informed to the complainant. The copy of the same is marked as Ext.R4. Another letter was issued on 31.07.2008 to the complainant describing all these facts which is marked as Ext.R5. Ext.R7 is the copy of the letter given to the opposite party bank by the complainant stating that eventhough the amount mentioned in the project is for Rs.5 lakhs, PW1 needs only an amount of Rs. 3 lakhs. Loan application form of the complainant is marked as Ext.R6. The project report filed by the complainant for Royal Hatchery is marked as Ext.R9. The appraisal report for non-farm sector for the complainant's loan is marked as Ext.R8. The complainant applied for a loan of Rs. 3 lakhs to the opposite party for the purpose of starting a hatchery under non-farm for pisciculture. Ext.R9 is the project report filed by the complainant for the same. Eventhough the opposite party sanctioned the loan, the complainant received only Rs. 2 lakhs from the opposite party bank. In Ext.R6, loan application and in Ext.R8, appraisal report, the purpose of loan is industrial. In Ext.R6, Clause No.2.01, it is written that “name of product(s) manufactured/to be manufactured. The answer is written “Spawns - Activity in fish farming”. In Clause No.5.01, state the reason for starting the unit. The answer is written “Scope is very high. For details please refer to project report”. In clause No.4.01, it is written that the particulars of industrial land/non-industrial land, offered as security, it is written as (A) Industrial land – Survey No. of the land, market value of the land etc. In Ext.R8, Appraisal Report, in 2^nd clause it is written that Economics of the scheme as (a) Royal Hatchery Unit (b) No. of workers – 4 nos. In clause No.1, details of the activity and activity code No. is written as M/s.Royal Hatchery. So it is clear that the loan applied by the complainant is for industrial purpose and the SSI registration was also temporarily obtained by the complainant. The complainant got Rs.1,76,000/- as subsidy and margin money from the Industrial Department. Out  of that Rs.1,25000/- was remitted to the opposite party bank as dues and the balance Rs.51,000/- was withdrawn by the complainant. The complainant availed another 3 loans from the opposite party bank for the purpose of agriculture and that was included in the Agricultural Debt Waiver and Debt Relief scheme of the Government and he got a benefit of Rs.46,508/-. Eventhough this loan was availed for industrial purpose, the opposite party recommended this loan to the Apex bank for getting the benefit under the Debt Relief scheme and the Apex bank replied that since the loan is for hatchery under non-farm for pisciculture, it is not an agricultural loan. The loan sanction order is Ext.R1. This matter was also informed to the complainant as per Ext.R5.

So we think that the complainant already received the benefits under the Agricultural Debt Waiver and Debt Relief scheme of the Government from the opposite party for his 3 agricultural loans, the disputed loan was received for the purpose of industry and the complainant received a huge amount as margin money from the Industrial Department also. Again the opposite party recommended his loan in the Debt Waiver Scheme of the Government. But only because of the reason that the loan is for the purpose of non-agricultural, the complainant's loan cannot be included in the Debt Waiver scheme of the Government and it was informed by the Apex bank to the opposite party bank. So we think that there is no deficiency is seen from the part of the opposite party and the petition is dismissed.
 

Hence the petition dismissed.
 

Pronounced in the Open Forum on this the 30^th day of March, 2010
 

Sd/-

SRI.LAIJU RAMAKRISHNAN(PRESIDENT)

Sd/-

I agree SMT.SHEELA JACOB(MEMBER)

Sd/-

I agree SMT.BINDU SOMAN(MEMBER)

APPENDIX

Depositions :

On the side of Complainant :

PW1 - K.V. Joseph

On the side of Opposite Parties :

DW1 - K.T.Augustine

Exhibits:

On the side of Complainant:

Ext.P1 - Photocopy of Loan Pass Book of the complainant

Ext.P2 - Photocopy of Complainant's letter dated 12.07.2008 addressed to the opposite party

Ext.P3 - Photocopy of opposite party's reply letter dated 22.07.2008 addressed to the complainant

Ext.P4 - Demand Notice dated 21.07.2009 issued by the opposite party to the complainant

Ext.P5 - Photocopy of Circular issued by the Central Government stating the Agricultural Debt Waiver and Debt Relief Scheme

On the side of Opposite Parties

Ext.R1 - Photocopy of Loan sanction letter dated 17.03.2001

Ext.R2 - Carbon copy of opposite party's letter dated 22.10.2001 addressed to the complainant

Ext.R3 - Copy of complainant's letter dated 3.11.2001 addressed to the opposite party

Ext.R4 - Photocopy of letter No.R1/ADWDR-Compl/08-09 dated 30.07.2008 of Regional Manager, Kerala State Co-operative Agricultural and Rural Development Bank Limited   

                addressed to the opposite party

Ext.R5 - Photocopy of opposite party's letter dated 31.07.2008 addressed to the complainant

Ext.R6 - Loan Application Form

Ext.R7 - Copy of complainant's letter dated 15.02.2001 addressed to the opposite party

Ext.R8 - Appraisal Report for Non-Farm Sector

Ext.R9 - Project Report of M/s.Royal Hatchery at Muttom