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Madras High Court · body

2012 DIGILAW 2040 (MAD)

J. Pandiyarajan v. Manager, Indian Overseas Bank

2012-04-24

M.JAICHANDREN

body2012
Judgment :- 1. Heard the learned counsel appearing for the petitioner, as well as the learned counsels, appearing on behalf of the first and second respondents. 2. At this stage of the hearing of the writ petition, the learned counsel appearing on behalf of the first respondent had submitted that the application of the petitioner, for the grant of an educational loan, had not been considered, only on the ground that he had been admitted in the second respondent University, under the "Management Quota". 3. Per Contra, the learned counsel appearing for the petitioner had submitted that this Court, in S. Saran kumar Vs. The Regional Manager, Karur Vysya Bank, Trichy, had held that the Bank concerned cannot refuse an application made by a student, only on the ground that he had been admitted in the educational institution concerned under the "Management Quota". Paragraphs 12 and 16 of the said order reads as follows:- "12. The fact that the petitioner was selected and admitted in the management quota seat and pursuing his studies cannot be a debarment for submitting application to avail education loan. It is not the case of the respondents that the petitioner is not eligible to be admitted in the B.E. Degree Course due to lack of minimum marks, age or otherwise. Once eligibility for admission is established and a candidate is selected through anyone of the mode of selection, which is permitted by the Monitoring Committee and the University having approved the admission of the petitioner, it is not open to the respondent bank to refuse loan facility viz., education loan to a deserving candidate like the petitioner. The Central Government as well as the Reserve Bank of India gave guidelines to the banking sectors to sanction education loan to all deserving candidates. The requirements, the banks can insist upon is whether the candidate is eligible to be admitted in the course, whether the course is approved by the competent body, and whether the college is affiliated to the University which conducts examinations. 16. The requirements, the banks can insist upon is whether the candidate is eligible to be admitted in the course, whether the course is approved by the competent body, and whether the college is affiliated to the University which conducts examinations. 16. Applying the principle laid down in the above said judgment to the facts of this case and the only reason to deny the educational loan by the respondent bank being that the petitioner is admitted in the management quota, I am of the view that the respondents are not justified in rejecting the claim of the petitioner as there is no prohibition to sanction education loan to students admitted in the management quota. If the stand taken by the respondents is accepted, no student admitted under the management quota in any private self-financing college will be in a position to get education loan, which will defeat the purpose for which the Government of India and Reserve Bank of India introduced the scheme." 4. In view of the said decision of this Court, cited supra, the impugned letter of the first respondent, dated 13.02.2012, is set aside. The first respondent is directed to consider the application of the petitioner, for the grant of educational loan to the petitioner, for pursuing B.E., (Mechanical) course, in the second respondent University, as per the regulations applicable for the grant of such loan. 5. The petitioner is directed to re-submit the application, for educational loan, to the first respondent, within a period of 10 days from the date of receipt of a copy of this order. On such re-submission of the application, by the petitioner, as directed by this Court, the first respondent shall consider the same and pass appropriate orders thereon, within a period of two weeks, thereafter, as per the relevant regulations and the guidelines applicable to the grant of educational loan, including the guidelines of the Indian Banks' Association and the Reserve Bank of India. 6. The writ petition is disposed of, with the above directions. No costs. Consequently, connected Miscellaneous Petition is closed.