This Complaint coming up before us for hearing on 30-03-11 in the presence of Sri P.V. Ramana, advocate for complainant and of              Sri M.V. Subba Rao, advocate for opposite party,                              upon perusing the material on record and after hearing both sides 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 the Consumer Protection Act seeking waiver of agricultural gold loan, Rs.5,000/- towards mental agony, Rs.5,000/- towards compensation and Rs.2,000/- towards legal expenses.

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

        The complainant availed agricultural gold loan of Rs.51,000/- on 28-02-07 from the opposite party by pledging gold ornaments vide G.L.A.G.L.2006/910.   The Government of India formulated Debt waiver scheme, 2008 in the year 2008.  Inspite of receipt of guidelines the opposite party failed to apply the scheme to the complainant and caused mental agony.   The opposite party thus committed deficiency of service. 

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

        The complainant availed the agricultural gold loan of Rs.51,000/- on 28-02-07 vide account No.2006/910 by executing necessary documents.   The loan taken by the complainant did not become overdue as on 31-12-07 and as such he is not entitled to the said Debt waiver scheme, 2008.   The complaint therefore be dismissed.

4.    Exs.A-1 to A-3 on behalf of complainant and Exs.B-1 to B-5 on behalf of opposite party were marked.

5.   Now the points that arose for consideration are:

1. Whether the opposite party committed deficiency of service?
2. To what relief?

1. The undisputed facts in this complaint are:

1. The complainant took agricultural loan on 28-02-07 from the opposite party.
2. The opposite party giving notice to the complainant demanding loan.
3. The complainant issued notice on 18-03-10.

7.     POINT No.1:-   The complainant either in his affidavit or in the complaint did not aver whether he is a small or a marginal framer.   Even the notice issued by the complainant on 18-03-10 to the opposite party was silent regarding the extent of land held by him.   Ex.B-1 is the copy of loan application of the complainant wherein it was mentioned that the complainant owned an extent of 4.60 cents in Balusupadu village.  The opposite party did not deny the same.   On the other hand, contended that the complainant failed to satisfy the condition No.2 and 3 of the Debt Relief Scheme.

8.     The relevant portion in the guidelines issued under the Debt Waiver and 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’;

9.   Ex.B-1 loan application revealed that the complainant is having 4.60 cents of land.  The opposite party did not specifically contend that the complainant is not a small farmer.   It can therefore be said that the complainant is a small farmer and as such he is entitled to the benefit under Debt Waiver and Relief Scheme, 2008.  Therefore, this point is answered in favour of complainant.

10.   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 the contention of the learned counsel for opposite party is accepted that 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 has to be gone into.   Being a beneficial legislation a liberal approach can be made in applying those guidelines as rightly contended by the learned counsel for the complainant.   Therefore, we opine that the complainant is entitled to the benefits of loan waiver scheme and its non application amounted to deficiency of service.

11.   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 and as such the complainant is not entitled to any further amount as compensation or costs.

12.    In the result the complaint is partly allowed as indicated below:

1. The opposite party is directed to write off the gold loan of                the complainant. 

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 15th day of              April, 2011.

Sd/-XXX                                           Sd/-XXX                             Sd/-XXX

MEMBER                                                         MEMBER                                 PRESIDENT

APPENDIX OF EVIDENCE

DOCUMENTS MARKED

For Complainant:

For opposite party :

                                                                             PRESIDENT