Plea In Andhra Pradesh HC Against Disbursal Of State Sanctioned Amount For Advocates' Welfare In The Form Of Interest Based Loans [Read Affidavit]

Advocate Syed Ziauddin, practicing at the Andhra Pradesh High Court, has contended that the Council's decision to release the State sanctioned amount of Rs.25,00,00,000/- in the form of "loans" to the Advocates is irrational and violative of principles of natural justice.

On July 8, 2020, the Andhra Pradesh Government issued an order with respect to release of Rs.25,00,00,000/- towards Trust for Welfare of Lawyers. As per the order, the said amount was to be utilized for the welfare of the needy Advocates, as selected by the Committee under the Chairmanship of Advocate General, along with 4 Bar Council members selected by him in consultation with the Chairman, Bar Council of Andhra Pradesh.

The Petitioner has submitted that in complete derogation of this stipulation, the State Bar Council has decided to provide loans to the needy advocates, out of the abovementioned amount released by the Government, at chargeable interest.

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It is submitted that the Council is offering loans of (i) Rs.10,000/- chargeable interest of 5% and (ii) Rs.20,000/- chargeable with interest of 9%.

Aggrieved by this departure, the Petitioner has contended:

• As can be seen from the GO, there is no scope and jurisdiction for the Bar Council to issue the circular towards loan and imposing interest and also repayment;
• Wording of the GO is clear that a Committee is to be formed by the Advocate General. Thus the Bar Council does not have any jurisdiction to issue the circular and it is only the Committee constituted by the Advocate General who shall issue such circular;
• Wording used in the GO is that the amount is released towards the Trust for Welfare of Lawyers. In fact a trust has to be formed and the said Trust has to decide the same or in the alternative, the committee Constituted under the Advocate General shall do such exercise of distribution of amounts to the Advocates;
• Section 6(2) of the Advocates Act, 1961 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;
• The amount released by the Government is towards "Assistance" of Advocates and not towards "trading the money" as if it's a commercial Bank.

The plea therefore seeks suspension of the Circular issued by the Bar Council and constitution of a Welfare Trust for the purpose of Andhra Pradesh Advocates Welfare.

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