Karnataka High Court
State Of Karnataka vs Primary Co-Operative Agriculture & ... on 13 June, 2012
Author: K.L.Manjunath
Bench: K.L.Manjunath
-1-
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 13TH DAY OF JUNE 2012
PRESENT
THE HON'BLE MR. JUSTICE K.L.MANJUNATH
AND
THE HON'BLE MR. JUSTICE V.SURI APPA RAO
W. A. No. 3649/2010 &
W.A. Nos.413-429/2011 (CS-RES)
BETWEEN:
In W.A. No. 3649/2010 & W.A. Nos.413-424/2011:
01. State of Karnataka
By its Secretary, Co-operation Department,
Vidhana Soudha, Ambedkar Veedhi,
Bangalore - 560 001.
02. The Registrar of Co-operative Societies,
Karnataka State, No.1, Alsi Askar Road,
Bangalore - 560 052.
03. The Director of Co-operative
Audits, Shankar Mutt Road,
Chamarajpet, Bangalore - 4. ... Appellants.
(common in all WAs)
(By Sri. Keshava Reddy, AGA)
AND :
01. Primary Co-operative Agriculture &
Rural Development Bank Ltd.,
-2-
K.G. Road, Chikmagalur - 577 101,
Rep by its Manager Sri. H.T. Rajegowda.
02. Sri. Ramseva Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Karimane, Post Lokanathpura,
Koppa Taluk - 577 123,
Chikmagalur District,
Rep by its Manager Sri. D.N. Keshavamurthy.
03. Primary Co-operative
Agricultural and Rural Development
Bank Ltd., Narasimharajapura
577 134, Chikmagalur District,
rep by its Manager
Sri. H.R. Chandrashekarappa.
04. Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Kadoor - 577 548,
Chikmagalur District,
Rep by its Manager
Sri. N.C. Chandrashekar.
05. Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Mudigere - 577 132,
Chikmagalur District,
Rep by its Manager
Sri. O.M. Padmanabhagowda.
06. Primary Co-operative
Agricultural and Rural Development
Bank Ltd., Honnavar - 581 334,
UK, Rep by its General Manager
Shri. P.N. Bhat.
07. The Sirsi Taluk Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Sirsi - 581 402,
-3-
UK, Rep by its Manager
Sri. Vinayak P. Shirsat.
08. Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Haliyal - 581 329,
UK, Rep by its Manager
Sri. Fakira Shankar Gowda.
09. The Mundagod Taluk Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Bankapura Road,
Mundagod- 581 349,
UK, Rep by its Manager
Shri Devaraj Keshav Janna.
10. Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Kumta - 581 343, UK,
Rep by its Manager
Shri Devaru Govind Hegde.
11. Ankola Taluka Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Ankola - 581 314, UK,
Rep by its Manager Shri. B.V. Naik.
12. Primary Co-operative
Agriculture and Rural Development
Bank Ltd., Yellapura - 581 359, UK,
Rep by its Manager
Smt. Pushpa Kanna Nayar.
13. Bhatkal Agriculture and Rural Development
Co-operative Bank Ltd.,
Bhatkal- 581 320, UK,
Rep by its General Manager
Shri. T.N. Naik.
14. Karnataka State Agricultural and
-4-
Rural Development Bank Ltd.,
Tippu Sultan Palace Road,
Post Box No.1811, Bangalore - 560 018,
Rep by its Managing Director.
(Common in all WAs)
15. Indian Audit and Accounts
Department, Office of the Principal
Accountant General (Audit) I
Karnataka C Block, New Building,
Post Box No. 5398, Bangalore - 560 001.
(Common in all WAs)
16. National Bank for Agriculture
and Rural Development,
H.O. Plot No.C-24, Bandra Rural
Complex, Bandra (East),
P.B. No.8121, Mumbai - 400 051,
Rep by its Chief Executive Officer.
(common in all WAs)
17. Primary Co-operative Agriculture
& Rural Development Bank Ltd.,
Shringeri - 577 139, Chikkamagalur District.
Rep by its Manager Sri. S. Jayaraju,
(Respondent No.1 in W.A.425-426/2011).
18. Primary Co-operative Agriculture
& Rural Development Bank Ltd.,
Koppa - 577 126, Chikkamagalur District,
Rep by its Manager Sri. T. Lingappa,
(Respondent No.2 in W.A.425-426/2011).
19. Primary Co-operative Agriculture
& Rural Development Bank Ltd.,
Bhadravathi, Shimoga District,
Rep by its Manager.
(Respondent No.1 in W.A.427/2011).
-5-
20. The Sarvodaya Co-operative
Credit Agriculture
& Rural Development Bank Ltd.,
Siddapur - 581 355, Uttara Kannada,
Rep by its In-Charge Manager Shri. G.T. Naik,
(Respondent No.1 in W.A.428/2011).
21. Primary Co-operative Agriculture
& Rural Development Bank Ltd.,
Sagar, Shimoga District,
Rep by its Manager Pin Code - 577 401,
(Respondent No.1 in W.A.429/2011). ..Respondents
(By Sri. Chaitanya Hegde, Adv. for R-1 - R-9,
R-10, R-11, R-17, R-18 & R-20,
Sri. J.M. Rajanna Shetty, Adv. for R-14,
Sri. Basavarajaiah, Adv. for R-19,
Sri. R. Gopal, Adv. for R-21,
R-12, R-13, R-15 and R-16 are served)
These Writ Appeals are filed under Section 4 of the Karnataka
High Court Act, praying that this Hon'ble Court be pleased to allow
these writ appeals and set aside the order dated 30.06.2010 passed by
the learned Single Judge in W.P. Nos.13744/2008 c/w W.P. Nos.
15117/2008 and 17958/2009, 4142/2009, 3676/2009 and 24848/2009
(CS-RES) and dismiss the said writ petitions.
These Writ Appeals coming on for Admission this day K.L.
MANJUNATH. J., delivered the following: -
JUDGMENT
The legality and correctness of the order passed by the learned Single Judge in W.P. No.13744/2008 and other connected matters is called in question in these appeals.
2. The appellant - State of Karnataka by its order dated 27.04.2005 -6- evolved a scheme known as interest waiver scheme called 'Waiving interest and penal interest payable by the farmers who had obtained loan from the PCARD Bank of different categories, provided', the principle amount is paid on or before 30th June 2005. Based on the order of the Government, the writ petitioners who are all Primary Co-operative Agricultural and Rural Development Bank, on obtaining clarification from the Registrar of Co-Operative Societies in Karnataka and the State Land Bank waived the interest payable by the farmers on the remittance of the principal amount within the time stipulated. Thereafter, objections were raised by the Auditor General. The Government contended that the waiver of the interest by the writ petitioners was contrary to the order passed by the Government and the scheme of the Government has been wrongly mis-interpreted. Therefore, refused to reimburse the amount to the writ petitioners. Challenging the same, the writ petitions were filed.
3. The learned Single Judge after hearing the parties quashed Annexure 'A' on the ground that the writ petitioners cannot be driven to recover the amount from the farmers in view of the scheme of waiver of interest from 31.03.2004 to 31.03.2005 and a further direction issued by the Government that the said amount shall be treated as 'loss account' -7- to the writ petitioners is void-ab-initio. Accordingly, circular issued by the State of Karnataka as per Annexure 'A' was quashed. This order is called in question in this appeal.
4. The learned Government Advocate contends that if the writ petitioners on account of the wrong interpretation has waived the interest and the penal interest while recovering money from the farmers the Government cannot be blamed and that a decision is taken by the Land Bank to bear 40% of the interest, penal interest waived by the particular PCARD Bank and the remaining 60% has to be borne by the PCARD Banks. In view of the same, the appeal has to be allowed.
5. But on perusal of the Government Order, if the Land Bank as well as the Registrar of Co-Operative Societies have clarified to the writ petitioners how the scheme of waiving of interest and penal interest has to be considered and based on such clarification, if the writ petitioners have acted upon, issuance of Annexure 'A' by the Government prohibiting the writ petitioners from recovering the amount from the farmers and treat it as a loss of account is wholly unjustifiable. If the scheme was wrongly interpreted by the Registrar of Co-Operative Societies and based on such clarification all the writ petitioners have -8- acted upon. Such responsibility shall be borne by the Government and that writ petitioners cannot be penalised for no fault of them. In the circumstances, if the relief is granted to the writ petitioners by the learned Single Judge, this Court sitting in intra-Court appeal cannot lightly interfere with such order.
6. Accordingly, these appeals are dismissed.
In view of the dismissal of the appeal, Misc.W. No.9457/2010 for dispensation and Misc.W. No. 9459/2010 for stay do not survive for consideration.
Sd/-
JUDGE Sd/-
JUDGE.
Rbv*