- (1.)Petitioner in this case claims benefit of Kerala Cooperative Agricultural, Rural Debt Relief Scheme, 1990 (for short 'the Scheme'). This claim is opposed by the 4th respondent on two counts. Firstly, it is contended that the loan was sanctioned prior to 1-4-1986 and hence she is not entitled to the benefit of the Scheme. Secondly, it is alleged that the loan was not availed of for any of the purposes mentioned in the Scheme.
(2.)At first, I shall consider the question whether a person who availed himself of a loan prior to 1-4-1986 is entitled to waiver of the loan amount under the provisions of the scheme. This Scheme came into force on 15-11-1990. It is intended to benefit the poor agriculturists, artisans and persons engaged in small scale industries who are affected by the drought conditions during the year 1986, 1987 and 1989. The Union Government declared these years as bad crop years and decided to give relief of waiver of loans availed by such persons from Cooperative Societies, Agricultural Development Banks, State Cooperative Bank etc. The Union Government formulated guidelines and accordingly a Scheme was prepared as Kerala Agricultural and Rural Debt Relief Scheme, 1990. Detailed provisions have been made in the Scheme specifying the categories of persons eligible for such relief. The Scheme says that the relief of waiver shall be limited to Rs. 10,000/- inclusive of interest.
(3.)Clause l(c) of the Scheme says that the Scheme shall apply only to eligible loans. The terms 'eligible loan' has been defined as follows:
"Eligible loan means: that part of the short term loans, including converted/rescheduled medium term loans, loans issued for agricultural purposes against security of gold ornaments or fixed deposits irrespective of the interest rates charged on such loans and loans mentioned in note 1 in item 2 above availed of by the borrower either individually or jointly on or after 1st April,1986 and instalments of a term loan falling due after 2nd October, 1986 which was overdue to a bank or a primary cooperative society as on the effective date and includes overdue interest, penal interest, notice and postage charges, arbitration fees, execution charges etc."

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