THE ICFAI UNIVERSITY

TRIPURA

ICFAI LAW SCHOOL

INTERNAL-I

SUBJECT: Law on Agricultural Finance

TOPIC:
i) Droit Andministratif
ii) Delegated Legislative

Submitted to: - Submitted by: -

Akshay Bhargav Bukhurui Debbarma
Assistant Professor BA. LLB (H) 5th Year
ICFAI LAW SCHOOL ID: 17ATBL067
THE ICFAI UNIVERSITY TRIPURA
 ACKNOWLEDGEMENT

I feel immense pleasure and feel privileged in expressing my

deepest and most sincere gratitude to my project guide Professor
Akshay Bhargav for his excellent guidance throughout our project
work. His kindness, dedication, hard work and attention to detail
have been a great inspiration to me. My thanks to you sir for the
unlimited support and patience shown to us. I would particularly
like to thank him for all his help in patiently and carefully
correcting all my manuscripts.
 TABLE OF CONTENTS

TOPIC
Introduction
Objectives of IT Act
Meaning
Evolution
Legislatives
Relevant Provisions
Conclusion
 INTRODUCTION

In the present time in almost in every country irrespective of its

political philosophy the administrative process has increased too
rapidly that today, we are living not in its shade but shadows.
Sir Ivor Jennings defines Administrative Law as the law relating
to administration. It determines the organization, powers and the
duties of administrative authorities.
 MEANING

Meaning of Droit administratif French administrative law is

known as Droit Administratif, which means a body of rules,
which determine the organization, powers and duties of public
administration and regulate the relation of the administration
with the citizen of the country. Droit Administrative does not
represent the rules and principles enacted by Parliament. It
contains the rules developed by administrative courts.
 HISTORY

Napoleon Bonaparte was the founder of the Droit

administrative. He established the Conseil d’Etat. He passed an
ordinance depriving the law courts of their jurisdiction on
administrative matters and another ordinance that such matters
could be determined only by the Conseil d’Etat.
Waline, the French jurist, propounds three basic principles of
Droit administrative:
1. The power of administration to act suo motu and
impose directly on the subject the duty to obey its
decision;
2. The power of the administration to take decisions and
to execute them suo motu may be exercised only
within the ambit of law which protects individual
liberties against administrative arbitrariness;
3. The existence of a specialized administrative
jurisdiction.
 EVOLUTION OF DROIT ADMINISTRATIF

During Louis XIV, the Government was highly centralized and

executive authorities were arbitrary. Civil courts could not control
them. So, Droit Administratif came into existence before 20 th
century. Napoleon Bonaparte overthrew the whole system and
established court system.
Two types of Courts

 Civil and Criminal Courts (Azize & Court desassation)

 Administrative Courts (Counsel D’Etat Court of the Perfect)

 RULES & PRINCIPLES OF DROIT ADMINISTRATIF

Rules of Droit Administratif

These are the rules to the administrative officials and authorities .
These are related to the appointment and dismissal, status,
salaries, duties etc. of the administrative officials.
Rules dealing with the operation of public services to meet needs
of the citizens
These services may be operated either wholly by public officials
or under the supervision of other agencies to provide the public
utility services.
Rules dealing with the administrative adjudication
This deals with concept that if there is any adjudication done to a
private citizen by the administrative authority, it could be
decided by the administrative courts. Here, Court D’Estat is the
highest administrative authority.
 TOPIC: AGRICULTURAL FINANCE
INTRODUCTION

Professional moneylenders were the only source of credit to

agricultural until 1995. They used to charge unduly high rates of
interests and follow serious practices while giving loans and
recovering from borrowers As a result, farmers were heavily
burdened with debts and many of perpetuated debts. With the
passing of Reserve Bank of India Act 1934, District Central Co-op.
Banks Act and Land Development Banks Act, leading to
improvements in agricultural credit. Until 14 major commercial
banks were normalized in 1969, co-operative banks were the main
institutional agencies providing finance to agriculture. After
nationalization, it was made mandatory for these banks to provide
finance to agriculture as a priority sector.
 WHAT IS AGRICULTURAL FINANCE?

Agricultural finance is the study of financing and liquidity services

credit provides to farm borrowers. It is also considered as the study
of those financial intermediaries who provide loan funds to
agriculture and the financial markets in which these intermediaries
obtain their loanable funds.
DEFINITION
Murray (1953) defined agricultural finance as an economic study
of borrowing fund by farmers, the organization and operation of
farmers, the organization and operation of farm lending agencies
and of society’s interest in credit agriculture.
 SOURCES OF AGRICULTURAL FINANCE

There are two broad sources of agricultural credit in India:

A.Non-Institutional Sources:
The non-institutional finance forms an important source of
rural credit in India, constituting around 40 percent of total
credit in India. The interest charged by the non-institutional
lenders is usually very high. The land or other assets are
kept as collateral. The important sources of non-institutional
credit are as follows:
• Money-Lenders:
Money-lending has been the widely prevalent
profession in the rural areas. The moneylenders charge
huge rate of interest and mortgage the property of the
cultivators and in some cases even the peasants and
members of his family are kept as collateral.
• Other Private Sources:
(a) Traders, landlords and commission agents:
The agents give credit on the hypothecation of crops
which when harvested is used to repay loans.
 (b) Credit from relatives: These credits are generally
used for meeting personal expenditure.

B. Institutional Sources:
The general policy on agricultural credit has been one of
progressive institutionalization aimed at providing timely
and adequate credit to farmers for increasing agricultural
production and productivity. Providing better access to
institutional credit for the small and marginal farmers and
other weaker sections to enable them to adopt modern
technology and improved agricultural practices has been a
major thrust of the policy. National Bank for Agriculture
and Rural Development (NABARD) is an apex institution
established in 1982 for rural credit in India. It does not
directly finance farmers and other rural people. It grants
assistance to them through the institutions described as
follows:
 Government:
The government sector banks extends both short term
as well as long-term loans. They are generally
advanced in times of natural calamities. The rate of
interest is low and it is not major source of agricultural
finance.
 Cooperative Credit Societies: These are organized at
village level. These societies generally advance loans
only for productive purposes. The main objective of
cooperatives is to raise capital for the purpose of giving
loans. And supporting the essential activities such as
supply of agricultural inputs at cheap price, improving
irrigation on land owned by member, encourage
various income-augmenting activities such as
horticultural, animal husbandry, poultry etc.

 Micro Financing:
Micro Financing through Self Help Groups (SHG) is a
group of rural poor who volunteer to organize
themselves into a group for eradication of poverty of
the members. They agree to save regularly and convert
their savings into a common fund known as the Group
Corpus. As soon as the SHG is formed a couple of
group meetings are held, an SHG can open a Savings
Bank accountant with the nearest Commercial or
Regional Rural Bank or a Cooperative Bank.
 Commercial Banks
Commercial Banks are providing finance both directly
and indirectly. Direct finance is for agricultural
operation for short and medium periods. Indirect
Finance of fertilization and other inputs.
 CONCLUSION

The subject agricultural finance is still a difficult one but

definitely, there are many positive developments in the pipeline
and horizon. We need to recognize these developments and
harness them. We are not yet there but journey has started. We
now need new approaches to agriculture finance, which is
possible especially under the rising demand for food.