Sri. Chandran Alachery, Member:-
The complaint is filed under section 12 of the Consumer Protection Act for an Order directing the opposite party to write off the entire amount due in the loan account of the complainant by including his name also in the debt waiver and debt relief scheme 2008 as a marginal farmer and also directing the opposite party to pay Rs.1 lakh as compensation and cost of the proceedings.
2. Brief of the complaint:- The complainant applied for a loan of Rs.3 lakhs from opposite party for conducting a dairy unit on 24.11.2005. A project report was submitted along with loan application. The opposite party sanctioned the loan and as per repayment schedule, the complainant repaid an amount of Rs.1,78,000/-. In the year 2008, the Central Government announced Agricultural Debt Waiver and debt relief scheme 2008 and as per the norms of the scheme, the complainant was also entitled for the benefits under the scheme. But the opposite party bank send registered notice to the complainant to repay the loan. The opposite party bank did not take any steps to include the debt of complainant in waiver scheme stating that the complainant is not entitled for waiver since the cultivation of coffee/arecanut plantation by the complainant is in 5.50 acres of land and he is coming outside the purview of marginal farmer. Actually, the complainant owns only 20 cents of land which is only mentioned in the loan application. Due to the act of opposite party, the complainant lost somany benefits under the Debt Waiver Scheme. According to the complainant, even if opposite party sanction KCC loan, being a marginal farmer, the complainant is entitled to get benefits under Debt Waiver Scheme 2008. Hence the complaint.
3. On receipt of complaint, notice was issued to the opposite party and the opposite party appeared before the Forum and filed version. In the version, opposite party contented that the allegation of complainant that the complainant applied for a loan of Rs.3 lakhs under Central Government Scheme on 24.11.2005 and a project report is filed etc are baseless and false. The complainant is not a farmer. He is the Secretary of Thrikkaipetta Service Bank doing banking business. The complainant availed a KCC loan of Rs.3 lakhs for cultivation of 2.1640 hectare of land comprised in Survey No.517/1 of Kalpetta Village owned by one K. G. Sreedharan who let out the same to the complainant for cultivation. Accordingly the opposite party sanctioned Rs.3 lakhs under KCC scheme on security of the 0.0800 hectare (20 cents) of land belonging to him. The said land owned by the complainant had been mortgaged in favour of opposite party being the security for the KCC loan. It is true that the Central Government announced Agricultural Debt Waiver and Debt relief Scheme 2008. The complainant is not entitled to get benefits. Since the complainant failed to repay the KCC loan installments, the opposite party is at liberty to recover the same by initiating recovery steps. The complainant obtained loan for the cultivation of an extent of 2.1640 hectares of land held by him as a tenant. The complainant is not a marginal farmer and hence the complaint is liable to be dismissed.
4. On perusal of complaint, version and documents the Forum raised the following points for consideration:-
1. Whether there is any deficiency of service from the side of opposite party?
2. Relief and Cost.
5. Point No.1:- The complainant filed proof affidavit and stated as stated in the complaint and is examined as PW1 and documents are marked as Ext.A1 to A9. The opposite party did not adduce oral evidence and confronted documents are marked as Ext.B1 to B8 and other documents are marked as Ext.B9 to B14. The case of complainant is that the complainant applied for a loan of Rs.3 lakhs under a scheme for creation of fund “capital for Dairy and poultry Sectors” with a view to provide interest free loan/interest subsidy on the bank loan to the entrepreneurs for undertaking certain activities in these sectors announced by Government of India. Under this scheme interest free loan to the extent of 50% of the project out lay and 50% of the interest charged in the bank loan would be subsidized. Ext.A1 document is the direction of NABARD send to all scheduled commercial banks dated 27.02.2008. As per Ext.A1 document, venture capital Fund for Dairy/Poultry Sectors, Interest free loan to the extent of 50% project outlay will be provided and 50% of the interest charged on the bank loan will be subsided to the borrowers who are regular in repayment. Ext.A2 document is the project report of 10 cows Dairy unit under the above said scheme. In Ext.A2 document, the name of loanee is the complainant and name of financial institution is shown as the opposite party bank. Ext.A2 document is marked subject to proof. Ext.A3 to Ext.A6 are the notices and its reply. Ext.A7 document is the recommendation letter for sanctioning loan prepared in the letter pad of opposite party bank by the Manager of opposite party bank send to Regional office of the bank, Cochin. In Ext.A7 notice it is stated that Venture Capital Fund of NABARD project of Mr. K. G. Sreejith, Kalpetta. Ext.A8 is the Project cost details of the complainant prepared in Opposite party's letter pad and send to Regional office of the opposite party Bank. Ext.A9 document is the request given by the opposite party bank to the Regional office of opposite party bank for getting the interest free loan to the complainant. The documents such as Ext.A2, Ext.A7, Ext.A8 and Ext.A9 documents are marked subject to proof. According to the Forum, Ext.A2 document is the project report submitted to opposite party bank by the complainant and Ext.A7, Ext.A8 and Ext.A9 documents are prepared by the opposite party bank and send it to Regional office of opposite party Bank in its letter pad. So that complainant in no way can produce the original of these documents and prove its authenticity. These documents are prepared prior to the sanctioning of loan. Ext.B1 is the application form for Agricultural Credit dated 02.08.2006. Ext.B2 document is the Declaration given to the opposite party by one K. G. Sreedharan dated 02.08.2006. From Ext.B1 and B2 documents it is seen that the opposite party bank had sanctioned Agricultural loan of Rs.3 lakhs to the complainant by creating mortgage of 0.0800 hectare of land owned by the complainant and 2.1640 hectares of land hold by the complainant as a tenant. As per scheme, a marginal farmer means a farmer cultivating as owner or tenant an agricultural land up to 1 hectare ie 2.5 acres. A small farmer means a farmer cultivating as owner or tenant of agricultural land of more than 1 hectare and upto 2 hectares ie 5 acres. The other farmer means a farmer cultivating as owner or tenant or share cropper agricultural land of more than 2 hectares ie more than 5 acres. The eligible debt waiver for a marginal farmer and small farmer is the entire amount of loan and for other farmers, there will be a one time settlement (OTS) scheme under which the farmer will be given a rebate of 25 percent of the eligible amount subject to the condition that the farmer pays the balance of 75 percent of the eligible amount. In this case, the opposite party produced Ext.B1 document which is the loan application, wherein the 6th column shows the particulars of land holding by the applicant by lease or share cropper. In this column, it is specifically stated that the applicant should furnish copies of land records. The applicant shown two properties in Survey No.517/1 and 518/1 having total 2.16 hectares and in Survey No.178/1A and 167/21 having 19 ¾ cents of property. The complainant/applicant offered his own property extents to 19 ¾ cents only and the same is mortgaged by the opposite party as security. Ext.B2 document is the declaration given by one K. G. Sreedharan stating that 2.1640 hectares of property owned by him in Survery No.517/1 is leased to the complainant for cultivation. The Forum found that no land records of 2.1640 hectares of property is offered as security before the opposite party bank by the complainant and the opposite party also not produced any document to show that such a property is offered as security and mortgaged before the Forum except a declaration. No tax receipt or no copy of title deeds or no lease agreement of 2.1640 hectares of property is obtained by the opposite party for sanctioning loan. The only document obtained by the opposite party is the mortgage of 19 ¾ cents of land owned by the complainant as security. The recovery capacity of the opposite party is limited only to 19 ¾ cents of land. More over, the opposite party did not produce any other document to show that the complainant had cultivated in 2.1640 hectares of land other than 19 ¾ cents of property. The opposite party did not obtain copy of any property documents and the receipt or even lease agreement from the complainant showing that 2.1640 hectares of property is taken on lease for cultivation. Ext.B2 document cannot be considered as a lease agreement or lease deed. The Forum found that the complainant applied for getting capital for dairy and Poultry sectors loan scheme announced by the Central Government and the opposite party had done followup over it. But such a loan was not seen sanctioned to the complainant. It is found that the loan is sanctioned as per Ext.B1 application, the main land offered as security is the land owned by the complainant ie 19 ¾ cents of land which is mortgaged. Forum is of the opinion that the main property or land offered as a security and mortgaged alone can be taken into consideration for computing the extent of property in the absence of lease agreement to the other property or any other document with respect to leased property. Therefore, the complainant can be considered only as a “small farmer” and hence he is entitled to get waiver of debt relief package since the other conditions are in favour of complainant. So the Forum is of the opinion that the opposite party bank failed to provide the debt waiver benefit to the complainant in his loan. It is a clear deficiency of service from the side of opposite party. Hence the Point No.1 is found accordingly.
6. Point No.2:- Since the Point No.1 is found in favour of complainant, the complainant is entitled to get cost and compensation and opposite party is liable for the same.
In the result, the complaint is partly allowed and the opposite party is directed to include the complainant's entire loan under Debt Waiver Scheme and write off the entire amount due in his loan account pending in opposite parties bank and the opposite party is also directed to pay Rs.5,000/- (Rupees Five Thousand) as compensation and Rs.2,000/- (Rupees Two Thousand) as cost of the proceedings. The opposite party shall comply the Order within 30 days from the date of receipt of this Order.
Dictated to the Confidential Assistant, transcribed by him and corrected by me and Pronounced in the Open Forum on this the 3rd day of August 2015.
Date of Filing: 16.07.2014.
PRESIDENT :Sd/-
MEMBER :Different Opinion. MEMBER :Sd/-
/True Copy/
Sd/-
PRESIDENT, CDRF, WAYANAD.
APPENDIX.
Witness for the complainant:-
PW1. K. S. Sreejith. Secretary, Thrikkaipetta Service Co-operative Bank.
Witness for the Opposite Party:-
Nil.
Exhibits for the complainant:
A1. Circular No.32/ICD-6/2004-05. Dt:16.02.2015.
A2. Copy of Project Report.
A3. Notice.
A4. Reply. Dt:26.05.2010.
A5. Notice.
A6. Reply. Dt:29.05.2014.
A7. Report of the Branch Manager of Central Bank, Meppadi to RD Department,
Regional office Cochin.
A8. Report. Dt:14.03.2006.
A9. Copy of Letter.
Exhibits for the opposite party:-
B1. Copy of KCC loan Application.
B2. Copy of Certificate. Dt:02.08.2006.
B3. Copy of Promissory Note. Dt:09.08.2006.
B4. Copy of letter to credit the amount to the account dated 09.08.2006.
B5. Copy of Loan cum Hypothecation Agreement.
B6. Copy of Letter. Dt:26.05.2010.
B7. Copy of Letter. Dt:21.06.2010.
B8. Copy of Agricultural Debt Waiver and debt relief scheme 2008.
B9. Copy of Inspection Report.
B10. Copy of letter of continuity. Dt:09.08.2006.
B11. Copy of Loan Account Statement.
B12. Copy of letter . Dt:21.06.2010.
B13. Copy of letter. Dt:22.06.2010.
B14. Copy of the Order. Dt:26.03.2010.
Sd/-
PRESIDENT, CDRF, WAYANAD.
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