Can Govt. Grant For Advocates' Welfare Be Disbursed As Loans, Imposing Conditions Of Interest, Repayment?: AP HC Asks [Read Order]

The Andhra Pradesh has directed the Special Committee headed by the Advocate General, constituted for the disbursement of the state government grant of Rs. 25 crores for the welfare of the lawyer community, to consider whether such amount can be distributed by way of loan, imposing interest and also repayment.

Justice Ninala Jayasurya was considering a writ petition by advocate Syed Ziauddin challenging the proceedings dated 10th August of the Bar Council of Andhra Pradesh, contemplating to provide loans to the needy advocates out of the amount released by the state government with repayment and interest clause as illegal and arbitrary.

The Single Judge noted that the Government of Andhra Pradesh had announced a grant of Rs. 100 crores for the welfare of the advocate community. Out of the said amount, an amount of Rs.25 crores has been released. For the purpose of dispersing the said amount, a special committee was constituted under the chairmanship of the Advocate General. The committee has decided to provide health insurance to the needy advocates and also to provide loan facilities to them, who have already filed COP applications or declarations. The committee also called for digital application through an online platform from 10th August 4 PM to 16th August 4 PM, with Bar Association Certificate/ID card and self-declaration. However the committee's decision has come to be communicated through a letter of the Bar Council vide proceedings of 10th August.

The petitioner has submitted that the said proceedings are contrary to section 6(2) of the Advocates' Act and contrary to the Government Order dated July8. "Section 6(2) of the Act clearly states that Bar Council shall provide assistance and not loan. The wording there used is only Assistance and not loan. In case of Assistance, there cannot be any repayment", it is urged.

It is further pointed out that the said Grant was released by the Government through a GO dated 08.07.2020. The GO, issued with respect to release of Rs.25 crores towards Trust for Welfare of Lawyers, says: "The said amount shall be utilized for the welfare of the needy Advocates selected by the committee under the Chairmanship of Advocate General, High Court of Andhra Pradesh along with Four (4) Bar Council members selected by him in consultation with the Chairman, Bar Council of Andhra Pradesh. The guidelines shall be prescribed by the Committee with regard to disbursal of the amount."

The petitioner further submitted that the grant of loan on payment of interest is not just or confers any benefit to the advocate community, that too, in the prevailing pandemic situation as the advocates are put to a lot of sufferance.

"Although the Counsel for the petitioner raised several contentions and sought for suspension of the proceedings dated 10th August, this court is not inclined to grant the said interim relief without giving an opportunity to the concerned respondents to file their counters", opined the Single Bench.

However, the bench noted that the petitioner has submitted a representation on 10th August to the Bar Council to not impose any interest on the loan proposed to be granted to the needy advocates, and that without considering the said representation, the Bar Council is proceeding to process the loan applications.

"As the representation dated 10th August is stated to have been made to the Bar Council, the Bar Council is directed to place the same before the Special Committee constituted under the chairmanship of the Advocate General for the purpose of disbursement of the amount", ordered the High Court, adding that it shall be for the said Committee to take appropriate action on the representation made by the petitioner and the same shall be considered by the special committee as expeditiously as possible within a period of two weeks.

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