Assess If The Farmers Covered Under PMFBY Scheme Have Been Paid Their Due Compensation For Crop Loss: Gujarat HC To State Govt. [Read Order]

The Bench of Chief Justice Vikram Nath and Justice Ashutosh J. Shastri also directed the authorities to resolve the issue, which may arise inter se the insurance company, the State and the farmers, at the earliest.

Background

By means of a petition under Article 226 of the Constitution, 10 petitioners approached Gujarat High Court praying for appropriate directions to the contesting respondent authorities, i.e. SBI General Insurance Company Limited and the State authorities as also the Ministry of Agriculture and Farmers Welfare, Government of India, to ensure that the petitioners are paid their insurance amount covered for crop losses occurred for the Kharif Season 2017 under the Prime Minister Fasal Bima Yojana (PMFBY).

The case of the petitioners is that in July 2017, on account of uncontrolled floods in the State of Gujarat, crops of the petitioners were completely destroyed.

All the petitioners are registered under the Prime Minister Fasal Bima Yojana and were entitled to compensation but as the same was not being paid, they made repeated representations which all went in vain. As such, they were compelled to file this petition.

The Court vide order dated 13th December 2018 issued notices to the respondents. The parties appeared and filed their response.

By order dated 23rd January 2020, after recording the status as indicated by Mihir Joshi, Senior Counsel appearing for the respondent Insurance Company, the Court had granted time to the learned counsel for the petitioner to provide necessary information in order to substantiate his claim.

Thereafter, on 3rd February 2020, the respondent Insurance Company handed over 4 Demand Drafts with respect to ex-gratia claim of petitioner Nos. 2, 5, 7 and 8.

With regard to the others, learned counsel for the petitioner had filed additional affidavit which was taken on record.

Advocate Joshi had prayed for some time to examine the facts stated in the additional affidavit.

Court's Observations and Direction

In this matter, the concern noticed by the Court was that farmers who had lost their crops on account of floods in July 2017 and who claimed to be covered under the PMFBY had not been paid their due compensation till 2020.

Further, the Court observed that in case they were not covered under the Scheme or not entitled to compensation for any reason, they ought to have been informed.

Importantly, the Court remarked,

"It is of concern that these poor farmers who suffered the loss of their crops whether or not were entitled to compensation were compelled to approach this Court for an adjudication whether they are entitled or not."

Further, the Court remarked,

"On one hand, the State has paid a huge premium to the Insurance Company and has signed Memorandum of Understanding with the Insurance Company and on the other hand, the farmers despite claiming to have having suffered crop losses being covered under PMFBY are not paid compensation and their representations are not heeded to and replied."

Lastly, the Court asked the state authorities to assess and determine if the farmers covered under the PMFBY scheme have been compensated for their crop loss, and in this process, the officers of the Insurance Company have also been instructed extend all cooperation in the exercise that may be taken to sort out the issues.

For the aforesaid purpose, the Court has granted three months' time to the respondent No.5 to get the entire exercise carried out and ensure that the farmers do not suffer if they are otherwise entitled.

The petition has been listed on 11-01-2021 for further hearing in the matter.