Court recalls previous orders and mandates refund with interest, setting process for compensation claims
In a significant ruling, the Calcutta High Court has instructed Punjab National Bank (PNB) to refund premium amounts and compensate farmers from Kotulpur, Bankura District, West Bengal, for lapses in the Bangla Shasya Bima Scheme, a crop insurance initiative. The judgment, delivered by Justice Sabyasachi Bhattacharyya, comes after a series of writ petitions and contempt applications filed by the affected agriculturists.
The farmers, who applied for crop insurance under the Bangla Shasya Bima Yojana for the 2019-2020 season, faced difficulties as their insurance claims were not honored despite premium payments. The Court had earlier directed the revival of the scheme, but those orders were challenged by the insurance company, leading to the current judgment.
The Court found that Punjab National Bank failed to upload necessary insured farmers' particulars and declarations to the Crop Insurance Portal, leading to the non-materialization of the insurance policies. This failure was attributed to technical and procedural lapses by the bank, which was held liable for compensating the affected agriculturists.
Justice Bhattacharyya recalled the previous orders, noting that the Court had acted beyond its jurisdiction by attempting to revive the expired insurance scheme. The judgment emphasized that the scheme's expiry meant it was beyond the Court's power to renew it, highlighting the separation between judicial and executive functions in policy matters.
The judgment directs Punjab National Bank to refund the premiums with 12% interest per annum within 30 days. Furthermore, farmers are invited to submit claims for compensation by August 31, 2026, detailing the insurance coverage they were deprived of and the financial losses incurred. PNB is required to assess these claims and provide reasoned orders by October 31, 2026.
The ruling provides farmers the option to contest compensation assessments in appropriate forums if dissatisfied. The Court dismissed the contempt applications following the recall of its earlier orders.
The decision underscores the importance of adherence to procedural requirements in government insurance schemes and the judicial system's role in addressing grievances stemming from administrative lapses.
Bottom line:-
Liability for failure to comply with insurance scheme directives under Bangla Shasya Bima Yojana lies squarely on the nodal bank for technical and procedural lapses.
Statutory provision(s): Constitution of India Article 215, Article 226/227, Insurance Act, 1938 Section 64VB, Contempt of Courts Act, 1971
SK. Ali Hossain v. K G Ananta Krishan, (Calcutta) : Law Finder Doc id # 2938142
