High Court of Judicature at Bombay, Bench at Aurangabad, Heard Writ Petition Challenging Recovery of Crop Insurance Dues as Land Revenue Under Maharashtra Land Revenue Code, 1966. The Court Examined Whether Amounts Due Under Pradhan Mantri Fasal Bima Yojna Could Be Recovered as Arrears of Land Revenue Under Section 2(19) of the MLR Code.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The present matter before the High Court of Judicature at Bombay, Bench at Aurangabad concerned a writ petition filed by a general insurance company and a public interest litigation filed by farmers, arising out of the Pradhan Mantri Fasal Bima Yojna (PM Yojna) crop insurance scheme. The Union of India introduced the PM Yojna effective from Kharif 2016 to provide crop insurance against non-preventable natural risks from pre-sowing to post-harvesting. Revamped Operational Guidelines (ROG) were issued from Kharif 2020. The State of Maharashtra issued a Government Resolution dated 29.06.2020 to implement the scheme for three years, and on 27.07.2020 a Memorandum of Understanding (MOU) was executed between the State and the insurance company for District Osmanabad (now Dharashiv), covering soyabean crop in Cluster no. 10. The insurance company's bid was accepted for three years from Kharif 2020. During Kharif 2021, unseasonal rains between 23.09.2021 and 10.10.2021 caused damage to soyabean crop in District Osmanabad. Farmers submitted claims for localized calamity. The insurance company asserted that actual harvesting began on 17.09.2021, and a joint sample survey was conducted and signed on 27.10.2021 by both company and State officials. In November/December 2021, the insurance company disbursed Rs.374.61 crores to farmers, applying clause 25.5.10 of the ROG. The State, however, contended that this amount represented only 50% of the amount due, and initiated recovery proceedings under the Maharashtra Land Revenue Code, 1966, treating the alleged balance as arrears of land revenue. The Collector issued an order dated 18.11.2022, and bank accounts of the insurance company were directed to be frozen. The insurance company challenged these actions on the ground that the alleged dues are not 'land revenue' under Section 2(19) of the MLR Code and therefore revenue officers lacked jurisdiction. A Division Bench of the High Court on 30.11.2022 stayed the Collector's order while issuing notice. The PIL petitioners, farmers, supported the State and sought a direction to the insurance company to pay the balance with interest. The core legal issues before the Court included whether the revenue authorities had jurisdiction to recover alleged crop insurance dues as arrears of land revenue under the MLR Code; whether the insurance company fully satisfied its liability under the ROG or only paid 50%; and how clause 25.5.10 of the ROG and the crop calendar for Kharif 2021 should be interpreted regarding localized calamity claims. The parties made elaborate submissions on these points, and the Court reserved judgment on 31.07.2025, pronouncing it on 12.09.2025. The provided excerpt does not include the final analysis or operative order, so the ultimate decision on these issues is not available from the text.

Headnote

A) Land Revenue Law - Jurisdiction of Revenue Officers - Recovery of crop insurance dues as arrears of land revenue - Maharashtra Land Revenue Code, 1966, Section 2(19) - The insurance company contended that the amount sought to be recovered by the State under the Pradhan Mantri Fasal Bima Yojna cannot be classified as land revenue under Section 2(19) of the MLR Code, thereby rendering the recovery notices and orders without jurisdiction. The Division Bench stayed the Collector's order dated 18.11.2022 by order dated 30.11.2022 on this ground. (Paras 4-5)

B) Insurance Law - Crop Insurance under Pradhan Mantri Fasal Bima Yojna - Revamped Operational Guidelines, Clause 25.5.10 - Whether payment of Rs.374.61 crores represented full satisfaction or only 50% of dues for localized calamity during Kharif 2021. The insurance company asserted that actual harvesting began on 17.09.2021 and payments were calculated under clause 25.5.10, while the State and farmer petitioners asserted a further equivalent amount was due. (Paras 3, 12, 14)

C) Administrative Law - Government Resolution and Memorandum of Understanding - Binding nature of operational guidelines and state scheme - The Court examined the chronology from issuance of ROG under PM Yojna, GR dated 29.06.2020, MOU dated 27.07.2020, and crop calendar dated 06.08.2021 to determine respective obligations. (Paras 7-10)

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Issue of Consideration

Whether the revenue authorities under the Maharashtra Land Revenue Code, 1966 have jurisdiction to recover alleged crop insurance dues as arrears of land revenue; whether the insurance company fully satisfied its liability under the Revamped Operational Guidelines or paid only 50% of the amount due; and how clause 25.5.10 of the ROG and the crop calendar for Kharif 2021 should be interpreted regarding localized calamity claims.

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Law Points

  • Amount due under insurance scheme cannot be recovered as arrears of land revenue unless covered by Section 2(19) of Maharashtra Land Revenue Code
  • 1966
  • crop insurance claims under Pradhan Mantri Fasal Bima Yojna governed by Revamped Operational Guidelines and Government Resolution dated 29.06.2020
  • interpretation of clause 25.5.10 of ROG for localized calamity requires crop calendar and CCE data
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Case Details

2025 LawText (BOM) (09) 15

Writ Petition No. 11973 of 2022 with Civil Application No. 2222 of 2024 and Public Interest Litigation No. 38 of 2023

2025-09-12

Manish Pitale, Y.G. Khobragade

2025:BHC-AUG:24581-DB

Sharan Jagtiani, R.N. Dhorde, A.G. Talhar, V.D. Salunke, Ravi R. Bangar, Bomi Patel, Naval Sharma, Saket Satapathy, Shraddha Achaliya, Sarthak Bahira, Mansi Tyagi, Mohit R. Deshmukh, V.M. Kagne, Yogesh K. Bobade

Bajaj Allianz General Insurance Co. Ltd.

The State of Maharashtra, The Commissioner of Agriculture, The District Collector, Osmanabad, Union of India, The Chief Executive Officer, Pradhan Mantri Fasal Bima Yojna, District Superintendent, Agriculture Officer, Osmanabad, Assistant Manager, CITI Bank

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Nature of Litigation

Writ petition and public interest litigation concerning crop insurance claims under Pradhan Mantri Fasal Bima Yojna and recovery of alleged dues as arrears of land revenue.

Remedy Sought

Petitioner insurance company sought quashing of recovery notices/orders and declaration that full dues paid; State sought recovery of further amount; PIL petitioners sought direction to insurance company to pay balance with interest.

Filing Reason

State officers issued notices under Maharashtra Land Revenue Code, 1966 to recover Rs 374,61,93,634 as arrears of land revenue, including freezing bank account.

Previous Decisions

Division Bench of Bombay High Court stayed the Collector's order dated 18.11.2022 by order dated 30.11.2022 while issuing notice in writ petition.

Issues

Whether officers of State have jurisdiction to recover alleged dues under PM Yojna as arrears of land revenue under Section 2(19) of Maharashtra Land Revenue Code, 1966 Whether petitioner insurance company paid full amount due to farmers under Revamped Operational Guidelines for localized calamity or only 50% Interpretation of Revamped Operational Guidelines clause 25.5.10 and crop calendar for Kharif 2021 soyabean crop

Submissions/Arguments

Petitioner: alleged amount not land revenue under Section 2(19), hence recovery notices without jurisdiction; paid Rs 374,61,93,634 in full satisfaction as per ROG; relied on actual harvesting start 17.09.2021 and joint sample survey. State: further payment equivalent to amount due under ROG; recovery as arrears under MLR Code. PIL petitioners: support State, sought direction for balance with interest.

Judgment Excerpts

One of the grounds raised on behalf of the petitioner – insurance company, pertains to lack of jurisdiction in the Officers of the respondent – State, in issuing the impugned communications and orders, on the basis that the alleged amount due cannot be recovered as arrears of the land revenue under the MLR Code. It is contended that the said amount is not covered under the definition of ‘land revenue’ under section 2(19) of the MLR Code and, hence, the impugned communications / orders are rendered without jurisdiction. The petitioner – insurance company asserts that on 17.09.2021, the actual harvesting season of Soyabean crop started in District – Osmanabad and it continued till 11.11.2021.

Procedural History

The Union of India introduced the Pradhan Mantri Fasal Bima Yojna effective from Kharif 2016; Revamped Operational Guidelines were issued from Kharif 2020. The State of Maharashtra issued Government Resolution dated 29.06.2020 and executed a Memorandum of Understanding dated 27.07.2020 with the insurance company for District Osmanabad. During Kharif 2021, unseasonal rains occurred between 23.09.2021 and 10.10.2021, leading to localized calamity claims by farmers. A joint sample survey was conducted and signed on 27.10.2021. The insurance company disbursed Rs 374.61 crores to farmers in November/December 2021. The State initiated recovery proceedings under the Maharashtra Land Revenue Code, 1966, leading to a Collector's order dated 18.11.2022. The insurance company filed the writ petition; the Division Bench granted stay of the Collector's order on 30.11.2022. Civil Application No. 2222 of 2024 and Public Interest Litigation No. 38 of 2023 were connected. The Court reserved judgment on 31.07.2025 and pronounced it on 12.09.2025.

Acts & Sections

  • Maharashtra Land Revenue Code, 1966: Section 2(19)
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