Orissa High Court
Unknown vs W.P.(C)Nos.607 on 24 August, 2018
Author: S.N.Prasad
Bench: S.N.Prasad
W.P.(C) No.6071 of 2015
W.P.(C)Nos.6071,6063,6066,6067,6069,6070,6072,6073,
6074,6075,6076,6077,6078,6079,6080,6081,6082,6083,6084,
6085,6086,6087,6088,6089,6090,6092, and 6093 of 2015
8. 24.8.2018 In all the writ petitions the orders passed by the
Permanent Lok Adalat are under challenge and as such the writ
petitions have been directed to be listed together for analogous
hearing, in view thereof, the writ petitions are being disposed of
by this common order.
This Court, before dealing with the proceedings on
merit, thinks it proper to refer to the order dated 24.7.2018
whereby and where under personal appearance of the Regional
Manager, Utkal Gramya Bank, Bolangir has been directed, in
pursuance thereof, the Regional Manager is present in Court.
Learned counsel Mr.Ashutosh Panda-I, representing the
opposite parties 2 and 3 has filed Vakalatnama in each cases.
Office is directed to keep the same in respective records of the
writ petitions. Personal appearance of the Regional Manager,
Utkal Gramya Bank, Bolangir is dispensed with.
These writ petitions have been filed by the Agriculture
Insurance Company of India Limited, Bhubaneswar for quashing
the order passed by the Permanent Lok Adalat whereby and
where under direction has been passed by the Permanent Lok
Adalat directing the Utkal Grama Bank,Bargaon Branch,
Agriculture Insurance Company Limited and State Government to
take steps for payment of insurance amounts as due to them i.e.
on calculation of crop loss within two months hence.
The contention raised by the petitioners-Insurance
Company in these writ petitions are that it is the duty of the of
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the insurance company to implement the National Agricultural
Insurance Scheme on behalf of the Central Government and the
State Government. The benefit of crop insurance is to be given in
favour of the beneficiaries in terms of the scheme from Rabi
1999-2000 sessions. Under the scheme the claim amount is to
be borne by the State Government and the Central Government
on 50:50 ratio. The Utkal Gramya Bank has been declared to be
Nodal Bank and the claimants are treated as insured under the
scheme only when the Nodal Bank remits the premium and the
petitioner-company receives the same along with other farmers in
a declaration detailing the required information. In the concerned
year Khariff 2011 Bargaon Grama Panchayat of Khariar block
recorded 189 kg. per hector, whereas the threshold yield is 1399
kgs. per hector, thus there was shortfall and the petitioner had
sent a sum of Rs.56,77,02,768.89 paise as per the claim
calculation formula based on the figures of actual date received
from the Director of Economics and Statistics, through
Cooperative Department for Khariff 2011 based on crop cutting
experiments to the Nodal Bank for the purpose .
Different beneficiaries have filed claim applications
which ultimately came before the Permanent Lok Adalat,
Kalahandi-Nuapada at Bhswanipatna wherein the Chairman, in
exercise of power conferred upon it under section 22-C(1) of the
Legal Services Authorities Act,1987, has passed an order
directing for disbursement of the insurance amount in lieu of the
crop loss. The plea taken therein by the insurance company is
that there is no deficiency in service on their part rather as per
the requisition of the Nodal Bank the amount of
Rs.56,77,02,768 .89 paise was provided for disbursement to the
affected farmers and in case any farmer was deprived of any
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benefit under the scheme due to errors/omissions/commissions
of Nodal Bank branch/PACS, the concerned institutions shall
make good all such loses and not the insurance company.
The opposite party-Bank has taken plea that whatever
amount calculated as premium were sent to the Agricultural
Insurance Company and amount received has duly been credited
to the respect beneficiaries and hence no error has been
committed in calculation of the a foresaid amount.
The opposite party-State has although put its
appearance but not filed any written statement.
The Permanent Lok Adalat, after considering the plea
of the beneficiaries, has passed order directing the opposite
parties to disburse the amount by putting joint liability upon
them.
Mr.Ashutosh Panda-1, learned counsel appearing for
the Bank, has submitted by producing copy of the
communication dated 16.9.2014 issued by the Chief Regional
Manager, Agriculture Insurance Company of India Limited
addressed to the Regional Manager, Utkal Gramya Bank, Bolangir
stating therein that in Khariff-2011 season under NAIS the
declaration for non-loanee farmers covering 202 farmers under
normal coverage and 181 non-loanee farmers during the extended
period in Bargaon Gram Panchayat of Sinapalli Block. On a
written grievance by the Bank to the effect that by mistake the
Block was reported as Sinapali instead of Khariar and sent
revised declaration of Bargaon Gram Panchat rectifying the block
as Khariar, the matter was sent to the Government of India
Committee for its approval and its first phase Government of
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India Committee allowed claim for 202 non-loanee farmers
covered under normal coverage. For 181 non-loanee farmers
covered under extended period, the Government of India
Committee ordered a joint verification of the State Government
and Agricultural Insurance Company for re-examining the issue.
Accordingly, Deputy Registrar,Cooperative Societies,
Bhawanipatna in-charge of Nuapada district and two
Agricultural Insurance Company officials conducted verification
and found that out of 181 only 8 farmers who have sown their
crops in the extended period between 1.8.2011 to 16.8.2011,
details of which are quoted herein below:
Name of the non- Area in hec. Date of sowing
Sl. loanee farmers Sum insured
No
1 Narendra Ku.Barik 10912.80 0.80 01/08/2011
2 Nadia BihariBarik 27282.00 2.00 08/08/2011
3 Kunja Bihari Panda 16369.20 1.20 05/08/201
4 Hemabanti Sabar 7366.14 0.54 07/08/2011
5 Laxman Barik 13189.90 1.70 08/08/2011
6 Ghasi Ram Sabar 39558.90 2.90 07/08/2011
7 Madan Sabar 12004.08 0.88 07/08/2011
8 Duryodhan Sabar 8184.60 0.60 01/08/2011
The Government of India in their cut-off date extension
circular for non-loanee coverage have clearly mentioned that crop
sown in the extended period will be eligible for coverage in the
extended period.
The rest 173 non-loanee farmers have sown their crop
in the month of June and July as is evident from the statement
given by the Bank and report of the joint verification group. For
original declaration of 181 non-loanee farmers of Bargaon G.P. of
Sinapali block Rs.508112.03 was received from the insurance
company which was not payable to them as per rule. A copy of
the claim calculation showing 181 non-loanee farms of Bargaon
G.P. under Sinapali Block and a revised calculation sheet
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showing claim payable to 8 non-loanee farmers has been
forwarded while comparing the original claim and revised
payable, it is we found that Rs.382815.70 was paid as excess
claim to the Bank, which has sought to be refunded to the
insurance company immediately.
The learned counsel for the Bank has submitted that
the matter was scrutinized by the Central Committee and on the
basis of which a coordinate Bench of this Court has passed an
order with respect to the beneficiaries under 181 non-loanee
farmers being W.P.(C) No.5362 of 2014 disposed of on 6.4.2015
by modifying the order passed by the Permanent Lok Adalat to
the effect that the necessary payment shall be made only after the
Central Committee takes decision. The said order is being quoted
herein below :
"Challenge is made to the order dated 28.12.2013 passed by
the learned Permanent LokAdalat(PUS), Kalahandi-Nuapada
at Bhawanipatna(hereinafter referred as "Permanent Lok
Adalat" in PLA Case No.270 of 2013. By the said order,
learned PLA directed the State Government/A.I.C. to take
immediate steps in the light of the observation of the Central
committee on the issue and ensure payment to the
petitioner(opposite partyno.1 herein) within two months. It is
further held that the opposite party nos.1 to 4 therein had
jointly and severally liable to meet the claim of the petitioner.
Heard Mr.S.S.Rao, learned counsel for the
petitioner.
Learned counsel for the petitioner submits that
there are two Bargaon G.Ps, one coming under Khariar Block
and the other under Sinapali Block. The claim arising out of
Bargaon GP in Khariar Block is more than that of Bargaon
G.P. in Sinapali Block. The nodal Bank committed a mistake
in including the claims of Bargaon Block. The central
committee examined the matter in respect of the claims of 202
non-loanee farmers after issuance of caution letter o the Bank
by AIC/State Government.
So far as 181 non-loanee farmers, the petitioner as
well as the State Government were advised to re-examine the
matter for further consideration of the committee. The
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committee is formed at the level of the Central Government for
settlement of additional claim arising out of any
problems/errors/mistakes. He further submits that since the
central committee is in seisin of the matter, the learned PLA is
not justified in issuing direction to make payment to the
opposite party no.1.
In view of the fact that the central committee is in
seisin of the matter, this Court is of the considered opinion
that after the committee takes a decision in favour of opposite
party no.1, then necessary payment shall be made within a
period of three months from the date of the decision.
With the aforesaid observation, the order dated
28.12.2013 passed by the learned Permanent Lok
Adalat(PUS), Kalahandi-Nuapada at Bhawanipatna is
modified. Since the order is passed at the stage of admission,
it is open to the opposite party no.1 to seek modification of the
order, if he so likes.
The writ petition is disposed of."
Learned counsel for the State as also the
Insurance company have jointly submitted that from the
communication dated 16.9.2014 it is evident that the Central
Committee has already submitted its report after joint verification
and found that 173 non-loanee farmers are not eligible to get it
for the reasons that they have sown crop in the month of June
and July while the benefit was to be extended if crop was sown in
between the period 1.8.2011 to 16.8.2011 and therefore the 8
farmers have been found to be eligible as per the crop sown in
between the extended period of 1.8.2011 to 16.8.2011 and in that
view of the matter, the matter needs to be considered afresh by
the PLA by issuing notices to the beneficiaries, private opposite
parties in the writ petitions.
This Court, after hearing the learned counsel for the
parties, going through the materials available on record, is of the
view that a coordinate Bench of this Court has passed order on
6.4.2015 at the stage when the Central Committee was in seisin
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of the matter and thereby modified the order passed by the
Permanent Lok Adalat, an order passed in similar nature as
ordered in these writ petitions, but as has been evident from the
communication dated 16.9.2014, the Permanent Lok Adalat has
passed order on 25.11.2014, the subsequent development was
not before it and in that view of the matter the matter needs to be
considered afresh by the Permanent Lok Adalat in the light of the
communication contained in the letters dated 16.9.2014 and
dated 17.9.2014 which is being quoted below for ready reference:
Letter dated 16.9.2014.
"Re:NAIS Kharif 2011-Refund of excess claim paid to Non-Loanee
farmers.
In Khariff-2011 season under NAIS you have send
declaration for non-loanee farmers covering 202 farmers under
normal coverage and 181 non-loanee farmers during the
extended period in Bargaon Gram Panchayat of Sinapalli Block.
Subsequently after payment of Kharif-2011 NAIS claim, your
have written to us that by mistake the Block was reported as
Sinapali instead of Khariar and you have sent revised
declaration for Bargaon Gram Panchat rectifying the block as
Khariar. The matter was sent to the Government of India
Committee for their approval and in the first phase Government
of India Committee allowed claim for 202 non-loanee farmers
covered under normal coverage. For 181 non-loanee farmers
covered under extended period, the Government of India
Committee ordered a joint verification of the State Government
and Agricultural Insurance Company for re-examining the
issue. Accordingly, DRCS, Bhawanipatna in-charge of
Nuapada district and two Agricultural Insurance Company
officials conducted verification and found that out of 181
farmers only 8 farmers have sown their crops in the extended
period i.e. 1.8.2011 to 16.8.2011. The Government of India in
their cut-off date extension circular for non-loanee coverage
have clearly mentioned that crop sown in the extended period
will be eligible for coverage in the extended period.
The joint verification group has submitted a
statement prepared by your Bank showing the date of sowing of
crops of 181 farmers. The joint verification group verified the
documents and statement submitted by you and found the
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following farmers sown their crops between 1.8.2011 to
16.8.2011. You may verify your statement to find the
correctness of the date of sowing.
Name of the non- Area in hec. Date of sowing
Sl. loanee farmers Sum insured
No
1 Narendra Ku.Barik 10912.80 0.80 01/08/2011
2 Nadia BihariBarik 27282.00 2.00 08/08/2011
3 Kunja Bihari Panda 16369.20 1.20 05/08/201
4 Hemabanti Sabar 7366.14 0.54 07/08/2011
5 Laxman Barik 13189.90 1.70 08/08/2011
6 Ghasi Ram Sabar 39558.90 2.90 07/08/2011
7 Madan Sabar 12004.08 0.88 07/08/2011
8 Duryodhan Sabar 8184.60 0.60 01/08/2011
Total 144867.42 10.2
The rest 173 non-loanee farmers have sown their crop
in the month of June and July as evident from the statement given
by your Bank and report of the joint verification group. For your
original declaration of 181 non-loanee farmers for Bargaon G.P. of
Sinapali block your have received Rs.508112.03 claim from us,
which was not payable to them as per rule. We are enclosing
claim calculation sheet showing claim paid to 181 non-loanee
farms for Bargaon G.P. under Sinapali Block and a revised
calculation sheet showing claim payable to eligible 8 non-loanee
farmers. While comparing the original claim paid and the revised
claim payable, we found that Rs. 382815.70 was paid as excess
claim to you, which has sought to be refunded to us immediately.
The original and revised claim calculation statement is enclosed for
your reference."
Letter dated 17.9.2014:
"Re:NAIS Kharif 2011-Refund of excess claim paid to Non-
Loanee farmers.
In modification to our letter no.750/2014 dated
16.9.2014 we wish to inform you that, in Khariff-2011 season
under NAIS you have send declaration for non-loanee farmers
covering 202 farmers under normal coverage and 181 non-
loanee farmers during the extended period in Bargaon Gram
Panchayat of Sinapalli Block. Subsequently after payment of
Kharif-2011 NAIS claim, your have written to us that by
mistake the Block was reported as Sinapali instead of Khariar
and you have sent revised declaration for Bargaon Gram
Panchat rectifying the block as Khariar. The matter was sent to
the Government of India Committee for their approval and in
the first phase Government of India Committee allowed claim
for 202 non-loanee farmers covered under normal coverage. For
181 non-loanee farmers covered under extended period, the
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Government of India Committee ordered a joint verification of
the State Government and Agricultural Insurance Company for
re-examining the issue. Accordingly, DRCS, Bhawanipatna
in-charge of Nuapada district and two Agricultural Insurance
Company officials conducted verification and found that out of
181 farmers only 8 farmers have sown their crops in the
extended period i.e. 1.8.2011 to 16.8.2011.The Government of
India in their cut-off date extension circular for non-loanee
coverage have clearly mentioned that crop sown in the extended
period will be eligible for coverage in the extended period.
The joint verification group has submitted a
statement prepared by your Bank showing the date of sowing of
crops of 181 farmers. The joint verification group verified the
documents and statement submitted by you and found the
following farmers sown their crops between 1.8.2011 to
16.8.2011. You may verify your statement to find the
correctness of the date of sowing.
Name of the non- Area in hec. Date of sowing
Sl. loanee farmers Sum insured
No
1 Narendra Ku.Barik 10912.80 0.80 01/08/2011
2 Nadia BihariBarik 27282.00 2.00 08/08/2011
3 Kunja Bihari Panda 16369.20 1.20 05/08/201
4 Hemabanti Sabar 7366.14 0.54 07/08/2011
5 Laxman Barik 13189.90 1.70 08/08/2011
6 Ghasi Ram Sabar 39558.90 2.90 07/08/2011
7 Madan Sabar 12004.08 0.88 07/08/2011
8 Duryodhan Sabar 8184.60 0.60 01/08/2011
Total: 144867.42 10.2
The rest 173 non-loanee farmers have sown their crop in the
month of June and July as evident from the statement given by
your Bank and report of the joint verification group. For your
original declaration of 181 non-loanee farmers for Bargaon G.P. of
Sinapali block your have received Rs.508112.03 claim from us,
which was not payable to them as per rule. You are therefore
requested to refund Rs.508112.03 claim paid to you for 181
non-loanee farms for Bargaon G.P. under Sinapali Block. The
claim for 8 eligible farmers in the extended period will be sent to
Government of India committee for consideration. If they approve
Rs.125296.34 will be paid to 8 eligible farmers. In our letter
No.750/2014 dated 16.9.2014 we have requested you to refund
Rs.382815.70 may be ignored. Please refund Rs.508112.03."
The Permanent Lok Adalat while fixing the liability or
entitlement of the beneficiaries will take into consideration the
enquiry conducted by the Central Committee, the entire details
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containing loss of beneficiaries along with the date of crop sown
and other scheme entitling the beneficiaries to get benefit and
pass order after hearing the Insurance Company, Bank, State
Government and the representative of the Central Committee by
issuing proper notice to them. The Bank will also be heard prior
to taking decision.
Permanent Lok Adalat is further directed to look into
the aspects as has been referred in the communication dated
16.9.2014 to the tune of Rs.382815.70 and communication dated
17.9.2014 to the tune of Rs.508112.03 regarding claim paid as
excess by the insurance company to the bank.
On the basis of the above observations, all the writ
petitions stand disposed of.
.......................
S.N.Prasad,J.
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