P. Ayyakannu, who heads a farmers’ organisation, moved the Madurai Bench of the Madras High Court on Monday seeking a direction to restrain Axis Bank from filing criminal cases against farmers under the Negotiable Instruments Act in places other than where the loan transaction was entered upon by the borrower and the bank.
In his petition, Mr. Ayyakannu claimed that Axis Bank had misused the provisions of the Negotiable Instruments Act. He alleged that the bank procured unfilled cheque leaves from the farmers at the time of granting loans. These cheques were later produced in Kolkata and criminal cases were initiated against the farmers for non-payment of loans.
He pointed out three instances where Axis Bank had filed such criminal cases against farmers from Pudukottai, Tirupur and Tiruchi districts. In all these cases, the cheques were presented in Kolkata and proceedings initiated there.
He said some of the loans were sanctioned for the purchase of tractors. Some banks had tie-ups with tractor dealers and persuaded farmers to avail the loan, he alleged.
Claiming that the fate of agriculture was not in the hands of the farmers, he alleged that they were being harassed for non-payment of loans. He sought a direction to restrain the bank from filing cases in places other than where the loans were procured.
Taking up the plea for hearing, a Division Bench of Justices M.M. Sundresh and N. Sathish Kumar directed notice to Axis Bank and adjourned the case by four weeks.