Section 1(2) in Executive Instructions Issued by the Board of Revenue, Orissa under the Orissa Fertilisers Loans Rules, 1965
(2)The normal rule of not advancing a loan to a defaulter will operate here too, and the default need not necessarily be under these rules, A defaulter in respect of cash loans, whether under the Agriculturists' Loans Act, 1884, or under the Land Improvement Loans Act, 1883, should normally be disqualified from obtaining a fertilizer loan and his applications summarily rejected unless, for overwhelming reasons, the sanctioning officer decides to waive the restriction. This discretion, naturally, can be used when the default is recent and has been due to some genuine difficulty; even in such cases, the loan ought not to be sanctioned unless additional securities of immovable property of a value not less than twice the amount of the loan proposed to be sanctioned are furnished.
