Madras High Court
P.V.Saravanan vs The Registrar Of Cooperative Societies on 28 August, 2020
Author: N.Anand Venkatesh
Bench: N.Anand Venkatesh
W.P.No. 11047 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 28.08.2020
CORAM:
THE HONOURABLE MR. JUSTICE N.ANAND VENKATESH
W.P.No. 11047 of 2020
and
WMP Nos.13441 and 13443 of 2020
P.V.Saravanan ... Petitioner
Vs.
1. The Registrar of Cooperative societies,
Kilpauk,
Chennai- 600 010.
2. The Joint Registrar of Cooperative societies,
Erode Region,
Erode, Erode District.
3. The Managing Director,
Erode District Central Cooperative Bank,
Erode, Erode District.
4. The Regional General Manager,
NABARD,
No.48 Mahatma Gandhi Road,
Post Box No.6074
Nungambakkam
Chennai – 34.
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http://www.judis.nic.in
W.P.No. 11047 of 2020
5. The Managing Director,
TNSC Bank,
Parry's, Chennai. ...Respondents
This Writ Petition is filed under Article 226 of the
Constitution of India praying to issue a Writ of Certiorari calling
for the entire records relating to the impugned order passed by
the 1st respondent in his proceedings Na.Ka.3039/2020/Ma.Va.
Ko.1 dated 27.07.2020 and quash the same.
For Petitioner : Mr.C.Prakasam
For Respondents 1 to 4 : Mr.L.P.Shanmugasundaram
Special Government Pleader
ORDER
This Writ Petition has been filed challenging the proceedings of the first respondent dated 27.07.2020, wherein the withdrawal of the loan amount by the members of the Society, who are mainly the farmers across the State of Tamil Nadu, has been structured in such a way that the members will have to open a Mirror Account with the fifth respondent – District 2/14 http://www.judis.nic.in W.P.No. 11047 of 2020 Central Cooperative Bank and the loan amount can be withdrawn only through a card called Kisan Credit Card. This withdrawal will be done from an ATM. The main grievance of the petitioner is that this system has been introduced all of a sudden and implemented immediately without giving time to the farmers to get themselves prepared for the change in the system to withdraw the loan amount. In view of the introduction of this new procedure, many farmers are not in a position to withdraw the loan amount right from July 2020 onwards.
2. When the matter came up for admission, this Court directed the learned Special Government Pleader to take instructions from the respondents and explain this Court as to why such a system came to be implemented. The learned Special Government Pleader today has sent a 'Position Note' through E-mail for the perusal of this Court. The relevant portions of the 'Position Note' are extracted hereunder:- 3/14
http://www.judis.nic.in W.P.No. 11047 of 2020 “2. National Bank for Agriculture and Rural Development (NABARD) in its letter No.NB.Dor-Policyl2386l152t2}19-20, dated:
30.12.2019 has instructed that from 01.01.2019 to 31.03.2020 the Short Term Agri loans issued to farmers only through KCC scheme alone will be eligible for Government of India's 2% Interest Subvention, (lS) and 3% Prompt repayment Incentive (PRl). Hence, all the District Central Cooperative Banks in the State were instructed to implement the instructions of the NABARD and to issue only KCC loans to its members in order to avail the Government of India's 2% Interest Subsidy and 3% Prompt Repayment Incentive vide Registrar of Cooperative Societies letter R.C.No.303gtzO2OlCBP.1 dated: 22.01.2020 and 09.06.2020. It is further stated in the circular that the PACCS in the State are not in Core Banking Solution platform. Hence, they were not in a position to issue KCC cards which are used to withdraw the loan amount from the Bank through ATM facilities. Hence, it has been instructed to the PACCS to inform their 4/14 http://www.judis.nic.in W.P.No. 11047 of 2020 members to open mirror account, i.e., a Savings Bank Account in the District Central Cooperative Bank Branches in their respective area to get ATM cards for withdrawal of the loan amount sanctioned and credited in their respective Savings Bank Accounts.
3. The Tamil Nadu Primary Agricultural Cooperative Credit Societies employees Union staged demonstration and went on a strike to reconsider the above scheme wherein the farmers have to travel 25 k.m. from the place dwelling to the Central Cooperative Banks Branches for withdrawal of KCC Agriculture loan amount. Hence, the 1st respondent herein had issued a circular to simplify the above scheme.
4. In the circular, i.e., impugned order herein, it was instructed that all PACCS shall process crop loan applications and sanction only under KCC scheme as per NABARD instructions and the loan amount sanctioned to be withdrawn through ATMs using Rupay Kisan Credit Card.
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5. Further, it has been instructed in places where ATM facilities are not available, the District Central Cooperative Banks officials i.e Field Managers, Circle Supervisors and Field Officers shall arrange for micro ATMs/ POS (Point of Sale) within the society premises and disburse cash to the farmers. The farmers may either use the above facility or they can withdraw cash using withdrawal slips / cheques.
6. It has been clearly mentioned that the farmers may either use the District Central Cooperative Bank facilities or through the alternative measure arranged to withdraw loan amount in their PACCS premises itself. It is clear that the farmers can withdraw their loan amount wholly, their loans are sanctioned only in their respective PACCS accounts. It is incorrect to say that every time the farmers have to move to headquarters of the District Central Cooperative Bank for their loan needs.
7. It is pertinent to note that the 6/14 http://www.judis.nic.in W.P.No. 11047 of 2020 District Central Cooperative Banks are having atleast one branch in every block in the revenue district. Further, it is stated that the farmers shall still submit their loan applications in their respective PACCS, get sanctioned and withdraw their loan amount.
8. The District Central Cooperative Banks shall take the burden of security arrangements and transit insurance for the movement of cash from the branches of the District Central Cooperative Banks to the respective Primary Agricultural Cooperative Credit Societies.
9. The impugned order is only an alternative arrangement made to the farmers to receive the KCC loans without any hindrances and within their societies premises.”
3. Mr.C.Prakasam, learned counsel appearing on behalf of the petitioner submitted that the farmers are not against the new procedure for withdrawal of the loan amount. The learned 7/14 http://www.judis.nic.in W.P.No. 11047 of 2020 counsel further submitted that considering the present pandemic situation and also the fact that the farmers will have to get themselves ready to follow the new system, the same has to be effected by giving some time. The learned counsel submitted that considering the volume of agricultural loans availed by the farmers and the corresponding availability of the staff in Primary Agricultural Cooperative Credit Societies, this process will take some time for effecting implementation. The learned counsel, therefore, submitted that the current procedure can be adopted for some more time and this new system can be implemented from the month of November 2020.
4. Per contra, the learned Special Government Pleader appearing on behalf of the respondents (Cooperative) submitted that the new system was implemented due to the instructions received from NABARD. That apart, by issuing loan to the farmers under the new system, there will be a proper 8/14 http://www.judis.nic.in W.P.No. 11047 of 2020 accountability and the middle man can be avoided and the entire money can directly go to the farmers. The learned counsel further submitted that the new system that is introduced will be more safer and beneficial to a farmer in order to avail agricultural loan.
5. This Court has carefully considered the submissions made on either side and perused the materials available on record.
6. A careful reading of the 'Position Note', which has been extracted supra, shows that the respondents are implementing the new system pursuant to the instructions received from NABARD. As rightly contended by the learned Special Government Pleader, the new system brings about a foolproof method for disbursement of the loan to farmers. This system will effectively take care of the interference of middle 9/14 http://www.judis.nic.in W.P.No. 11047 of 2020 man and the farmers will be getting the entire loan amount directly from their accounts, which is termed as a 'Mirror Account'. The farmers will have access to the ATM Card and they can withdraw the amount as and when necessary and they don't need to handle / withdraw the amount at one stroke.
7. This Court also finds force in the submissions of Mr.C.Prakasam, learned counsel for the petitioner. The learned counsel is perfectly right in saying that the system can be implemented only after the stakeholders are given sufficient time to understand the same; and opening of a 'Mirror Account' and operating ATM Card for a farmer cannot be adopted overnight and it requires some time. Therefore, as fairly stated by the learned counsel for the petitioner, there can be no objection to the new System coming into force and the only request made is that some more time must be given to implement it, so that the stakeholders will get ready to acclimatise themselves to the new 10/14 http://www.judis.nic.in W.P.No. 11047 of 2020 System.
8. On a careful consideration of the submissions made on either side and in order to maintain a balance to ensure that the new procedure is implemented and at the same time the stakeholders are also given some time, this Court thought it fit to request the first respondent to implement the impugned letter dated 27.07.2020 from the 1st of November 2020. In the mean time, the opening of Mirror Account and the issuance of ATM Card can take place. The current procedure adopted for disbursement of loan can continue till the new procedure is implemented from the 1st of November 2020.
9. This Writ Petition is disposed of with the above directions. No costs. Consequently, connected Miscellaneous Petition is closed.
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Note : Upload the order on or before 01.09.2020 To
1. The Registrar of Cooperative societies, Kilpauk, Chennai- 600 010.
2. The Joint Registrar of Cooperative societies, Erode Region, Erode, Erode District.
3. The Managing Director, Erode District Central Cooperative Bank, Erode, Erode District.
4. The Regional General Manager, NABARD, No.48 Mahatma Gandhi Road, Post Box No.6074 Nungambakkam Chennai – 34.
5. The Managing Director, TNSC Bank, Parry's, Chennai.
12/14 http://www.judis.nic.in W.P.No. 11047 of 2020 N.ANAND VENKATESH. J, mra W.P.No. 11047 of 2020 and WMP Nos.13441 and 13443 of 2020 13/14 http://www.judis.nic.in W.P.No. 11047 of 2020 28.08.2020 14/14 http://www.judis.nic.in