The court ruled in favor of the Petitioner, directing the Bank of Maharashtra to extend the benefits of the "Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana-2017" (Loan Waiver Scheme) to the Petitioner, who had obtained an agricultural loan secured by gold ornaments. The court held that the Petitioner's loan, despite being secured by gold, was not excluded from the benefits of the scheme.

1. Introductory Observations:

   • Heard the learned counsel from both sides. Rule made returnable immediately.

2. Petitioner's Challenge:

   • Petitioner challenges the rejection of loan waiver benefits under the "Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana-2017" applied to his agricultural loan obtained from the Bank of Maharashtra.

3. Loan Details:

   • The Petitioner was sanctioned a loan of Rs. 1,92,000 for agricultural purposes with an interest rate of 7% p.a. secured by the hypothecation of gold ornaments.

4. Loan Waiver Scheme:

   • The Petitioner applied for a loan waiver under the 2017 scheme, which offers waivers up to Rs. 1.5 lakh for agricultural loans from nationalized, private, and cooperative banks.

5. Bank’s Objection:

   • The Bank of Maharashtra filed an affidavit contending that loans secured against gold, like the Petitioner's, are excluded from the scheme based on a government letter issued in October 2017.

6. Bank's Justification:

   • The bank relied on a letter that purportedly amended the 2017 government resolution, excluding loans secured by gold from waiver benefits.

7. Court’s Doubt on Amendment:

   • The court questioned whether the letter by the Commissioner of Cooperative Societies could amend the original government resolution, doubting the legitimacy of such amendments.

8. List of Excluded Loans:

   • The court reviewed the exclusion list in the letter, noting that the list pertains to term loans for non-agricultural purposes, such as land purchase and cold storage construction.

9. Nature of Petitioner's Loan:

   • The court distinguished the Petitioner's agricultural loan from the excluded categories and held that the security of gold does not disqualify it from being classified as an agricultural loan.

10. Excluded Categories Interpretation:

    • The excluded loans mainly involve capital asset loans, but the Petitioner's loan was strictly for agricultural purposes, supported by an applicable interest rate of 7%.

11. Loan Not a Term Loan:

    • The Petitioner's loan, though secured by gold, was not a term loan or capital loan, and the exclusion applied by the bank was misplaced.

12. Interest Rate Clarification:

    • The bank’s application of a 7% agricultural loan interest rate further supported the argument that the Petitioner's loan was for agricultural purposes and not subject to exclusion.

13. Court’s Conclusion:

    • The court concluded that the Petitioner’s loan falls under the scope of the Loan Waiver Scheme, and the denial of the benefit was incorrect.

14. Petition Allowed:

    • The court directed the bank to extend the loan waiver benefits and return the pledged gold ornaments upon the Petitioner paying the remaining amount over Rs. 1.5 lakh.

15. No Interest Liability:

    • The Petitioner will not be liable for interest on the loan from the date of waiver application until the court's decision.

16. Final Directions:

    • The rule is made absolute, and the Petitioner's gold ornaments will be returned once the remaining amount is paid. The bank must act on this order immediately.

Acts and Sections Discussed:

• Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana-2017 (Loan Waiver Scheme): Government scheme offering waiver on agricultural loans.
• Government Resolution Dated 28 June 2017: The original resolution governing the Loan Waiver Scheme.
• Letter Dated 27 October 2017: A letter issued by the Government of Maharashtra's Cooperative Societies Commissioner, allegedly amending the Loan Waiver Scheme by excluding certain loan categories.

Ratio Decidendi:

The ratio of the judgment is that agricultural loans secured by gold ornaments do not fall under the excluded categories of the Loan Waiver Scheme as long as they are sanctioned for agricultural purposes and attract the special agricultural loan interest rate. The court held that a gold-backed agricultural loan could not be treated as a term loan excluded from the scheme.

Subjects:

Agricultural Loan Waiver, Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana-2017
Loan Waiver Scheme, Agricultural Loan, Gold-Secured Loan, Government Resolution, Bank of Maharashtra, Loan Exclusion List