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Plea in Andhra Pradesh High Court against providing Loan to Advocates
The Government of India has released rupees Twenty-Five Crore out of Hundred Crore fund and announced it for the welfare of the advocates who are in need. A special committee was constituted under the chairmanship of the Advocate General to disburse the amount of Twenty-Five Crore rupees. The Bar Council of Andhra Pradesh issued a notice which was challenged before the high court as illegal providing loans to the advocates who are in need and surrounded by the novel coronavirus pandemic and the lockdown.
There was an eligibility criterion for availing the loan that is –
The advocate should not be stipend under the YSR law Nestham, the Spouse of the lawyer should not be well employed, a government undertaking, advocates with a four-wheeler and own house are not eligible this means the advocates who belong to a well of family or the advocates who have all the basic amenities and commodities cannot avail the loan whereas the advocates who do not have their house or houses allotted under the government scheme for an economically weaker section or the person who lives in the house in a village can avail the loan. This means that the richer advocates are no eligible for the loan but the poor category of the lawyers can avail the loan easily.
Advocate Syed Ziauddin has contended that the council's decision to release the state-endorsed amount rupees Twenty-Five Crore inform in form of loan to the advocates is unreasonable and violative of principles of natural justice. According to the order, the amount of 25,00,00,000 was to be utilized for the wellbeing of the needy advocates. The committee under the chairmanship of the advocate general and with four council members decided to carry out the loans for the advocates. They decided that council will be offering loans of Ten Thousand with the chargeable interest of Five percent and rupees Twenty Thousand with the chargeable interest of Nine percent which is not permissible under the Advocates Act 1961. Section 6(2) of the Act clearly says that the bar council shall assist and not a loan. And in case of assistance there cannot be repaid. The amounts released are towards the assistance of advocates not towards trading the money like a bank. The facility of the health care with released amount is not permissible and thus the said portion is also coming in the way of the distribution of assistance amount.
Conclusion
The country was under the lockdown from the end of March due to the COVID-19 situations. This is the type of killing disease. Due to which the citizens of the country have faced a lot of financial problems in which the one kind is Advocates. Many new advocates have suffered a lot in this pandemic and many of them were not able to return home and worked as a tea seller to earn their livelihood. The few who were able to return their villages are now indulged with the farming activity. While keeping all this in mind the Advocate General and the bench of 4 members decided to give a loan to the Lawyers and passed a sum of 25,00,00,000 rupees for them. But this was illegal according to Section 6(2) states that the bar council can assist not loan.
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