The Zonal Manager, Bank Of India vs Devika Soniraj
2021 Latest Caselaw 20629 Ker

Citation : 2021 Latest Caselaw 20629 Ker
Judgement Date : 5 October, 2021

Kerala High Court

The Zonal Manager, Bank Of India vs Devika Soniraj on 5 October, 2021

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                  PRESENT
              THE HONOURABLE THE CHIEF JUSTICE MR.S.MANIKUMAR
                                     &
                  THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
          Tuesday, the 5th day of October 2021 / 13th Aswina, 1943
                             WA NO. 1281 OF 2021

   AGAINST JUDGMENT DATED 09/07/2021 IN WP(C)NO.6593/2021 OF THIS COURT.

                                      ---

APPELLANTS/RESPONDENTS:

1.THE ZONAL MANAGER,BANK OF INDIA,ZONAL OFFICE,

  KALOOR TOWERS,K.K.ROAD,KALOOR,KOCHI-682 017.

2.THE BRANCH MANAGER,BANK OF INDIA,

  PARUR MAIN ROAD BRANCH,NORTH PARUR,PIN-683 513.

BY ADVS.M/S.ADARSH KUMAR,ANEESH K.M.,SANTHOSH KUMAR,

BIJU ABRAHAM, DILEEP CHANDRAN & SHASHANK DEVAN.

RESPONDENT/PETITIONER:

  DEVIKA SONIRAJ,AGED 21 YEARS,D/O.MR.SONIRAJ,

  VATTATHERY HOUSE,PALLIPORT P.O.,ERNAKULAM-683 515.

BY ADV.SRI.REJI MATHEW


     Prayer for interim relief in the Writ Appeal stating that in the
circumstances stated in the appeal memorandum, the High Court be pleased
to stay the effect and operation of the Judgment dated 09-07-2021 passed
by the Learned Single Judge of this Hon'ble Court in WP(C) No.6593/2021,
pending disposal of the instant writ appeal.


     This Writ Appeal coming on for orders on 05/10/2021 upon perusing
the appeal memorandum, the court on the same day passed the following:


                                                                     P.T.O.
 EXT.P6:THE COPY OF THE JOINT APPLICATION FOR LOAN

WITH RELEVANT DOCUMENTS OF THE PETITIONER AND

HER PARENT SUBMITTED BEFORE THE 2ND RESPONDENT.

                             ---
              S. MANIKUMAR, CJ& SHAJI P. CHALY, J
             -------------------------------------------------------
                          W.A. No.1281 of 2021
             --------------------------------------------------------
               Dated this the 5th day of October, 2021

                                   ORDER

S. MANIKUMAR,CJ Being aggrieved by the directions issued in W.P.(C).No.6593 of 2021

dated 09.07.2021, bank has filed this appeal. Notwithstanding the

challenge, Mr. Anish K.M., learned Counsel for the bank submitted that the

appellant bank is ready to disburse the loan amount sought for, for the

completion of the BAMS course, which has a duration of 5½ years,

provided the respondent student makes necessary arrangements to

safeguard repayment of loan amount, as per the terms and conditions of the

scheme framed by the Association of Banks. He further submitted that the

tuition fee for the first year BAMS course has already been paid by the

respondent/student.

2. Mr. Reji Mathew, learned Counsel for the respondent/student submitted

that the immediate sanctioning of loan is required for payment of tuition W.A. No.1281 of 2021

fee for the 2nd year and thereafter. He further submitted that there is every

likelihood of the financial position of the co-borrower be improved.

3. Exhibit P6 is the application submitted by the respondent/student

for availing educational loan. Year wise requirement of the student for the

BAMS course is set out under the heading "Cost of Course, Source of

Finance", of the financial details, and the same is extracted as under:

Cost of Course, Source of Finance (All amounts are in Rs.)

Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year Total

Tuition fees 199415 199415 199415 199415 199415 997075.00 Exam fees 0 0 0 0 0 Books 0 0 0 0 0 stationery Equipment/C 0 0 0 0 0 omputer Hostel 48000 48000 48000 48000 48000 24000.00 Expenses Sundries 79050 79050 79050 79050 79050 395250.00 Travel Total 326465 326465 326465 326465 326465 1632325.00 Own Source/ 186465 186465 186465 186465 186465 932325.00 Scholarship Loan 140000 140000 140000 140000 140000 700000.00 required

4. From the details submitted by the respondent/student, it could be

deduced that the duration of the course is 5½ years and that the W.A. No.1281 of 2021

respondent/student requires a sum of Rs.1,40,000/- (Rupees One Lakh

Forty Thousand only) per year towards the tuition and other fees. Thus, a

sum of Rs.7 lakhs has been shown as the requirement from the bank to be

paid as tuition fees for the said course.

5. Though, Mr. Reji Mathew, learned Counsel for the

respondent/student has prayed for immediate release of the entire loan

amount, from the data furnished, i.e., source of finance is only a sum of

Rs.1,40,000/- per year from the bank, spreading over five years from the

first year onwards.

6. Now, that the respondent/student has already paid the tuition fee

for the first year, notwithstanding the payment already made, considering

the financial circumstances of the respondent as on today, the object and

scheme of the educational loan to meritorious students, it is desirable that

the appellant bank provides educational loan to the extent requested,

namely; 7.5 lakhs, to ensure periodical payment towards tuition fees every

year.

7. In such view of the matter, bank is directed to pay the entire loan

amount of 7.5 lakhs to the respondent/student, subject to an affidavit of W.A. No.1281 of 2021

undertaking to be filed by the respondent/student, as regards the

repayment schedule, as provided in Clause 12 of the Model Educational

Loan Scheme for Pursuing Higher Education in India and Abroad, 2021.

For brevity, Clause 12 of the Scheme which deals with repayment is

reproduced as follows:

"12. REPAYMENT

• Repayment Holiday/Moratorium: Course period + 1 year.

• Repayment of the loan will be in equated monthly instalments for a period of 15 years for all categories (excluding course and moratorium period).

• While EMI based repayment is the generally accepted practice, many times the salary levels at the start of the career may not facilitate comfortable payment of salary level at the start of the career may not facilitate comfortable payment of EMI in certain cases (e.g. professinals like Doctors). Telescoping of repayment with stepped up instalments with passage of time may be considered in such cases."

8. On the apprehension that failure to repay any term of the Scheme

on likelihood of discontinuation of the course, Clause 14 of the said Scheme W.A. No.1281 of 2021

provides for follow up/monitoring, which reads thus:-

"14. FOLLOW UP/MONITORING

Students to submit progress report at regular intervals. In case of studies abroad, student to submit the Social Security Number (SSN) / Unique Identification Number (UIN) / Identity Card and banks to note the same in records. The Aadhaar number issued by UIDAI may also be captured in bank's system as and when available.