#agricultural loan

The Allahabad High Court has ruled that agricultural loan recovery cannot proceed through forced land auction when the borrower is a small farmer willing to repay in installments, affirming that livelihood protection overrides rigid asset recovery. This sets a critical precedent for banks and recovery officers to apply proportionality and humane discretion under SARFAESI proceedings, especially when the debtor’s primary asset is their means of subsistence.

Punjab & Haryana HC rules that contractual interest rates in mortgage agreements prevail over statutory caps, even for agricultural loans. The court held that Order XXXIV Rule 11 CPC governs interest awards, prioritizing contractual terms over the borrower's purpose, impacting lenders and borrowers in mortgage disputes.