S. Satyanarayana and Others Vs Margadarsi Chit Funds Limited and Another

Andhra Pradesh High Court 13 Sep 2005 CRP No. 6200 of 2004 (2005) 09 AP CK 0039
Bench: Single Bench
Result Published
Acts Referenced

Judgement Snapshot

Case Number

CRP No. 6200 of 2004

Hon'ble Bench

Gopala Krishna Tamada, J

Advocates

S. Lakshma Reddy, for the Appellant; P. Raja Rao, for the Respondent

Final Decision

Dismissed

Acts Referred
  • Andhra Pradesh Farmers Agricultural Debts (Moratorium) Act, 2004 - Section 3, 4, 5
  • Civil Procedure Code, 1908 (CPC) - Order 21 Rule 26

Judgement Text

Translate:

@JUDGMENTTAG-ORDER

Gopala Krishna Tamada, J.@mdashThis revision is directed against the orders passed by the Principal Senior Civil Judge at Warangal on 26-8-2004 in E.A. No. 215 of 2004 in E.P. No. 135 of 2004, by which the petition filed by the petitioners herein seeking stay of attachment was negatived.

2. The brief facts, which led to filing of this revision, are that originally, the petitioners are the defendants in O.S. No. 454 of 1997, which was filed by the 1st respondent-Chit Fund Company for realization of certain amounts on the ground that the 1st petitioner is a prized subscriber and a defaulter. On contest, the suit was decreed as prayed for in favour of the 1st respondent. While so, when the decree was ordered to be executed, the present application is filed under Order XXI Rule 26 of the CPC seeking stay of attachment stating that u/s 5 of the Andhra Pradesh Farmers Agricultural Debts (Moratorium) Act, 2004 (for brevity ''the Act, 2004''), the Court shall not entertain any proceedings in respect of the debt of any farmer.

3. Heard Sri S. Lakshma Reddy, learned Counsel for the petitioners and Sri Raja Rao, learned Standing Counsel for the 1st respondent-Chit Fund Company.

4. No doubt, the Government promulgated the Act No. 3 of 2004 i.e., Andhra Pradesh Farmers Agricultural Debts (Moratorium) Act, 2004. It is a beneficial legislation, brought into existence keeping in mind the successive drought conditions prevailing in the State of Andhra Pradesh and also the number of suicides took place in the State.

5. In fact, in the Statement of Objects and Reasons of the Act, 2004, it is mentioned as :

In view of the successive drought conditions prevailing in the State of Andhra Pradesh, for a number of years, the farmers have lost their crops and they have incurred heavy debts. As a result, large-scale suicides are being committed by the fanners, which is distressing and causing anxiety to Government. It is also brought to the notice of the Government that moneylenders in the rural areas are resorting to molestation and harassment of the farmers eventually forcing them to resort to an extreme step of committing suicide. To curb this evil; Government have decided to declare moratorium on farm related debts borrowed by the farmers in the State for a period of six months from the date of commencement of the proposed Legislation.

6. Section 3 of the Act, 2004, deals with definitions. Section 3(f) of the Act, 2004 deals with Moratorium. According to the said definition, Moratorium means a legal authorization to a debtor to postpone payment for a certain time.

7. Section 4 of the Act, 2004, deals with Declaration of Moratorium. According to the said provision, a Moratorium shall be declared for a period of six months from the date of commencement of the Act, 2004.

8. No doubt, Section 5 of the Act, 2004, deals with Bar of Jurisdiction. According to the said provision, no Civil Court shall entertain any suit or any other proceeding against the debtor for the recovery of any amount of the debt borrowed or incurred including interest; thereon for which a Moratorium has been declared u/s 4 of the Act, 2004.

9. In the instant case, even if it is presumed that Moratorium is fixed, it can be only for a period of six months in view of the Section 4 of the Act, 2004, coupled with the statement of Objects and Reasons.

10. Learned Counsel for the petitioners could not produce anything to establish that the period of Moratorium is extended further. In fact, according to Section 4 of the Act, 2004, the Moratorium shall be declared for a period of six months from the date of commencement of the Act, 2004 and this Act has come into force from the date when the Notification was published i.e., on 13-7-2004. Hence, the Moratorium, if at all is there for a period of six months, commencing from 13-7-2004, the said period must have elapsed on 12-1-2005. Hence, now, it cannot be said that the petitioners are still entitled to the protection provided for under the Act 3 of 2004.

11. In the result, the civil revision petition is merit less and is accordingly, dismissed.

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