New Delhi, July 3 (IANS): In a relief to the Tamil Nadu government, the Supreme Court on Monday stayed the operation of a Madras High court order directing the government to waive off loans of all farmers taken from co-operative banks irrespective of land holdings.

The bench of Justice Madan B. Lokur and Justice Deepak Gupta stayed the operation of the High Court order on a plea by the Tamil Nadu government. The state government had moved the top court in May.

The Madurai Bench of the Madras High Court had on April 4 ordered the Tamil Nadu government to waive off loans availed by farmers from cooperative societies.

The government had earlier waived off loans of farmers owning land up to five acres. However, the farmers filed a case for waiver of loans irrespective of land holding.

The court issued notice to the respondent National South Indian River Interlinking Agriculturists Association.

The High Court order had come on a plea by the National South Indian River Interlinking Agriculturists Association which had moved the court through its President Ayyakannu.