1 S. No. 20 IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR WP(C) 2179/2021 CM(7075/2021) HYDERIA POULTRY COOPERATIVE SOCIETY TULMULLA …Petitioner/Appellant(s) Through: Mr. M. A. Rathore, Advocate. Vs. UNION TERRITORY OF J AND K AND ORS. ...Respondent(s) Through: Mr. Bikramdeep Singh, Dy.AG. CORAM: HON’BLE MR JUSTICE JAVED IQBAL WANI, JUDGE O R D E R 14.03.2025 1. The petitioner in the instant petition filed under Article 226 of the Constitution has averred that the petitioner Society comprises of around 50 members and is a registered Society under the Jammu and Kashmir Cooperative Societies Act, 1989 besides being registered under the Jammu and Kashmir Self-Reliant Cooperative Act, 1999. 2. It is being further stated that respondent 5 framed a Scheme nationally for the development of poultry, besides a diary livestock on 30.12.2011 in consequence whereof the respondent 5 sanctioned an amount of Rs.1832.52 lacs comprising loan of Rs.1350.22 lacs and subsidy of Rs.482.30 lacs incentive towards assisting 48 Co-operative Societies for rearing of Boiler Birds and that the said Scheme also provided that the State Government shall ensure the completion of the projects under the Scheme in all respects. 3. It is being next stated that in furtherance of execution of the Scheme, it was also provided that release of assistance will be in the form of reimbursement i.e. the State Government should release assistance to Societies and claim thereafter reimbursement from respondent 5. 4. It is being further stated that the petitioner Society also availed the benefits of the Scheme, however, suffered loss on account of hostile circumstances as well as the floods besides delay in grant of financial assistance as also on account of escalated costs, construction material, 2 labour, chicks and feed, which compelled the petitioner Society to submit a representation before the Registrar Cooperative for waiver of loan, whereupon a team was constituted by the Registrar which team submitted a report thereafter to the Registrar on 14.03.2017 making following recommendations therein: - i. Deputy Registrar's have demanded that the poultry co-operative societies which have incurred heavy losses during the devastating floods of September 2014 may be given compensation so that these societies can start their working again. ii. During winters the poultry societies have incur heavy expenditure on heating of the poultry farm due to shivering cold. This heavy expenditure pushes these poultry co-operative societies towards the losses. Heating equipments may be provided to these poultry co-operative societies on subsidised rates/ Pragaty scheme, it will benefit them and the societies can rear birds during winters on profitable way. iii. Hatchers outside state supplied day-old chicks on the rates which the entrepreneurs fixes and due to this the rearing societies have to purchase the day- old chick on higher rates and due to which the unit cost of birds increases and profit decreases. Is it there will be check on the rates of day-old chicks, it will benefit the poultry co-operative societies and if there will be a hatchery purchased by one of the poultry co-operative societies and financing will be arranged from NCDC, the societies will get day-old chicks of cheaper rates. iv. Poultry feed also comes from outside state and the rates are not genuine, in peak season, the rates are being escalated by the suppliers of the feed, which results in loss to the poultry co-operative societies. v. It was also reported, that it is a fact that the release of Komodo, the societies take time and during this, the rate of construction material increases and the poultry co-operative societies have to spend whole amount of loan, subsidy and share capital on construction of rearing sheds and have to take day-old chicks and feed on credit basis from the suppliers who take advantage of it and grab all profit of societies, leaving them in lurch. If the will be in the scheme under which these societies will be given any kind of assistance so as to overcome the escalated cost on construction and have and some amount as working capital that will benefit these poultry co-operative societies. 5. It is being further stated that despite the said recommendations made the respondents did not extend any support to the petitioner, although the Reserve Bank of India, had issued a policy for Micro, Small and Medium Enterprises on 17.03.2016 for Rehabilitation/Revival and Relief Package for the borrowers effected by the natural calamity in the then state of Jammu and Kashmir and had taken following decisions thereon: - i. Moratorium in repayment of principal instalments and interest for a period of two years with effect from 01/09/2014 in respect of the existing term loan. 3 ii. The principal demand of the existing term loan along with interest during the period of moratorium of two years shall be funded by the additional terms loan (converted loan) iii. Repayment for converted term loan along with the existing residual term loan by the borrower after the moratorium period shall be made generally within a period between three-five years. However, where by the damage arising out of the calamity is very severe the repayment penod may be extended up to 7 years in extreme case of hardship repayment period could be extended up to a maximum period 10 years. iv. Need based fresh facility shall be provided upon proper assessment repairs/reservations/replacement of damaged assets. v. Rate of interest on converted term loan shall be Base Rate with monthly rests, rate of interest on an existing remaining term loan (after conversion) and cash facility shall be similar to the rate charged to the existing term loan. vi. Exiting and fresh facility shall be secured by way of charge on existing securities and assets to be credited a fresh. No additional collateral security shalt be insisted upon. vii. Balance outstanding in excess of value of primary security available shall be converted into working capital. The working capital, so converted shall have moratorium period of 24 months with effect from 01/09/2014, both in respect of repayment of principal and interest. viii. Additional facility: as an immediate relief, in addition to regular portion of existing limit, the bar owner shall be provided additional working capital facility to the tune of 50% of working capital, so converted. The facility shall have interest rate applicable as per the existing terms. The working capital limited shall be taken up for review after a period of six months for ascertaining requirement need-based working capital requirement. 6. It is being next stated by the petitioner that having regard to the aforesaid recommendations as also the aforesaid guidelines provided by the Reserve Bank of India, though the matter of the petitioner was taken up by the respondents, however, the respondents instead of considering the case of the petitioners issued communication dated 15.05.2018 seeking recovery of the outstanding loan amount from the petitioner aggrieved whereof the petitioner filed OWP No. 1265/2018 before this Court which, however, subsequently came to be withdrawn and in the meantime, petitioner deposited the outstanding loan amount on 04.09.2021 in the account of the Registrar and simultaneously submitted a representation thereof for waiving of the interest part having got accrued on the said loan amount and the respondents 4 however, on one hand did not consider the said representation of the petitioner, yet, on the other hand granted the concession of waiver of interest in favour of other Society being “Shalimar Poultry Cooperative Society” Nunnar Ganderbal, compelling the petitioner Society thus, under these circumstances to approach this Court through the medium of instant petition. 7. Objections to the petition has been filed by the respondents wherein the petition is being opposed, however, it is being admitted that the petitioner Society availed benefit under the Scheme launched by respondent 5 and that after availing the loan facility, the petitioner Society did not repay the loan amount till 2021 whereupon a recovery notice was issued against the petitioner Society and since the petitioner Society committed default in repayment of the loan amount, recovery proceedings came to be initiated against the petitioner Society whereafter the petitioner Society deposited an amount of Rs.20 lacs on 04.09.2021. Insofar as the claim of parity urged by the petitioner qua waiving of interest part over the loan amount with “Shalimar Poultry Cooperative Society” Nunnar Ganderbal is concerned, it is being stated that the petitioner Society is not similarly situated with the said Society and that the said Society in fact liquidated the loan amount along with interest whereas the petitioner Society did not. Heard counsel for the parties and perused the record. 8. Having regard to the case set up by the petitioner Society in the instant petition as also the reply filed thereto by the respondents inasmuch as the record available on the file reveals that respondents have not accorded effective consideration to the case of the petitioner qua the requests made for waivering of the interest part over the loan amount availed by the petitioner Society herein on account of losses claimed to have been suffered by the petitioner Society owing to the floods and other factors. Even the recommendations of the Committee constituted by the respondent Registrar in the matter as well as the guidelines of the Reserve Bank of India seemingly have not been 5 taken cognizance of by the respondents in the matter, suggesting manifestly that the matter has not received appropriate consideration by the respondents thus, necessitating remanding of the same for reconsideration to the respondents. 9. Resultantly, the petition is taken up for final disposal with the consent of the appearing counsel for the parties at this stage and is disposed of as follows: - “The respondents are directed to revisit and reconsider the claim of the petitioner Society for waivering of the interest part over the loan amount availed by the petitioner Society having regard to the recommendations made by Committee dated 14.03.2017 as also the guidelines of the Reserve Bank of India inasmuch as any other material that may be produced by the petitioners during the process of such consideration. Let the aforesaid exercise be commenced and concluded within a period of eight weeks from the date a copy of this order is produced by petitioner before the respondents.” 10. Disposed of. (JAVED IQBAL WANI) JUDGE SRINAGAR 14.03.2025 Ishaq