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Allahabad High Court · body

1990 DIGILAW 938 (ALL)

Vinod Kumar v. Collector Saharanpur

1990-10-16

DR.R.R.MISRA, S.D.AGARWALA

body1990
JUDGMENT S.D. Agarwala, J. - This is a petition under Article 226 of the Constitution of India. The petitioner is a qualified Mechanical Junior Engineer. He applied for a loan under the Scheme of the Central Government known as 'self employment scheme'. In pursuance of this application the Central Bank of India sanctioned him a loan of Rs. 45000/- payable in 36 instalments. 2. Since there was default in the payment of the loan, proceedings were taken by the Bank for the recovery of the amount due from the petitioner under the U.P. Agricultural Credit Act, 1973. The petitioner challenged these proceedings by means of the present petition. His case is that the provisions of the U.P. Agricultural Credit Act, 1973 are not applicable to him as the purpose for which the loan was taken does not come within the definition of 'agriculture' or 'agricultural purpose' as defined under Section 2(a) of the Act. 3. In the counter-affidavit filed on behalf of the Bank in paragraph 3 it has been stated that the petitioner was granted loan for the purpose of opening Agro Service Centres under the scheme sponsored by U.P. Agro State Corporation for the purposes of carrying on repairs and acquisition of tractors and other agricultural implements. The Bank's case is that since the loan was taken for the purpose of establishment of Agro Service Centres for the purposes of acquisition and repairs of the implements and machinery in connection with the agriculture consequently recovery proceedings under Section 1 1-A of the U.P. Agricultural Credit Act, 1973 were valid in law. 4. We have heard learned counsel for the petitioner and Sri S.N. Verma. Senior Advocate on behalf of the Bank. 5. The word 'agriculture' and 'agricultural purpose' have been defined in Section 2(a) of the U.P. Agricultural Credit Act. 1973. The definition given in the Original Act, 1973, is quoted below : "Agriculture and 'agricultural purpose' includes making land fit for cultivation, cultivation of land, improvement of land, including development of sources of irrigation raising and harvesting of crops, horticulture, forestry, cattle breeding, animal husbandry dairy farming, piggery, poultry farming, seed farming, pisciculture, apiculture, sericulture and such other activities as are generally carried on by persons engaged in any of the aforementioned activities, including marketing of agriculture products. their storage and transport and the acquisition of implements and machinery in connection with any such activity. 6. their storage and transport and the acquisition of implements and machinery in connection with any such activity. 6. The definitions given are inclusive and not exhaustive. 'Agriculture' and 'Agricultural purpose' includes the acquisition of implements and machinery in connection with the activity of agriculture. The carrying on repairs and the acquisition of the tractors and other agricultural implements is an activity in connection with agriculture if a machinery or implement is acquired the natural consequence is that it has to be repaired, both the activities go together. In the circumstances we are of the opinion that even in the original definition of the word 'agriculture' and 'agricultural purpose' used in the Act the purpose for which the petitioner had taken loan would come under the said definition. 7. As an abundant caution the State Legislature amended U.P. Agricultural Credit Act. 1973 by U.P. Agricultural Credit i Amendment) Act, 1979 (U.P. Act 25 of 1979). Clause (a) of Section 2 was substituted and the word 'agriculture' and 'agricultural purpose were again defined. They read as follows : "Agriculture' and 'agricultural purpose' includes making land fit for cultivation, cultivation of land, improvement of land (including development of sources of irrigation), raising and harvesting of crore horticulture, fore stray, cattle breeding, animal husbandry. dairy farming, piggery, poultry farming, seed farming, pisciculture, apiculture. sericulture and such other activities as are generally carried on by persons engaged in any of the aforementioned activities and also includes : (i) marketing of Agricultural products their storage and transport; (ii) the acquisition of implements and machinery in connection with any such activity; (iii) the acquisition of gobar gas plant; and (iv) the establishment and maintenance of agro service centres; Explanation - For the purposes of this clause the expression 'agro service centre' means a place or a shop where the entrepreneur es, trained by the U.P. State Agro Industrial Corporation Limited, carry on the sale of seeds, fertilizers, insecticides. pesticides, or other goods of agricultural use or agricultural operations in respect of and held by others by tractors or other mechanised process on hire or repair of the agricultural implements". After substitution of the definition by their Amending Act, 1979 the establishment and, maintenance of the Agro Services Centre is one of the agricultural purpose as defined by' this substituted clause. After substitution of the definition by their Amending Act, 1979 the establishment and, maintenance of the Agro Services Centre is one of the agricultural purpose as defined by' this substituted clause. In view of this amendment it is now beyond doubt that the', establishment and maintenance of an Agro Services Centre would be governed by U.P. Agricultural Credit Act, 1973 and it cannot possibly be said that the proceedings taken for t he recovery under the said Act are without jurisdiction. 8. The learned counsel for the petitioner has however, contended that since the recovery certificate was issued in the year of 1977 and the Act was amended in 1979, therefore, recovery proceedings taken in pursuance of the recovery certificate issued in the year 1977 are without jurisdiction. We do not agree. U.P. Agricultural Credit (Amendment) Act, 1979 specifically lays down that the U.P. Agricultural Credit Act would apply where loan is taken for the establishment and maintenance of the Agro Services Centre. In the circumstances after passing of the Amendment Act proceedings for the recovery taken under the recovery certificate issued in the year 1977 would become valid beyond doubt. The proceedings for the recovery now will be taken subsequent to the Amendment of 1979. In the circumstances, no question of retrospectivity arises at all. The Act is being applied prospectively only. 9. Learned counsel for the petitioner in support of his submission has cited a decision of the Hon'ble Supreme Court in Bhagat Ram Sharma v. Union of India, AIR 1988 SC 740 . The Hon'ble Supreme Court has held that an amendment of substantive law is not retrospective unless expressly laid down or by necessary implication inferred. There can possibly be no dispute to this proposition. Here as already observed above the question of prospectivity does not arise. In the circumstances, in our opinion, the decision of the Hon'ble Supreme Court does not advance the case of the petitioner. 10. In view of the above. we are of the opinion that the recovery certificate issued was a valid recovery certificate and as such it cannot be held that the recovery proceedings now taken by the Bank against the petitioner are in any manner invalid in law. 11. The petition is accordingly dismissed. The interim order dated 27th March, 1979 is hereby vacated.