Kerala High Court
Sajith.S vs The Union Of India on 21 December, 2022
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE V.G.ARUN
WEDNESDAY, THE 21ST DAY OF DECEMBER 2022 / 30TH
AGRAHAYANA, 1944
WP(C) NO. 15376 OF 2022
PETITIONER/S:
1 VAISAKH T.P
AGED 21 YEARS
S/O. SUBRAMANIAN T.P, AGED 21 YEARS,
THAZHATHEPURA HOUSE, PUNCHAPPADAM P.O, PALAKKAD
DISTRICT., PIN - 678633
2 SUDHEESH M
AGED 21 YEARS
S/O. SANTHOSH M, AGED 21 YEARS, MOOSALITHODI,
POOKKOTTUKAVU, KADAMBUR P.O, PALAKKAD
DISTRICT., PIN - 679515
3 ANJALI K
AGED 22 YEARS
D/O. SUBRAMANYAN & SATHI.K, AGED 22 YEARS,
KALATHETHIL HOUSE, MANGALAMKUNNU, KATTUKULAM
P.O, PALAKKAD DISTRICT., PIN - 679514
4 VINDUJA M
AGED 21 YEARS
D/O. JANARDHANAN M, AGED 21 YEARS, MAMBUZHI
HOUSE, KOONATHARA P.O, KAVALAPARA, PALAKKAD
DISTRICT., PIN - 679523
5 FATHIMATHUL FARSANA P.H
AGED 21 YEARS
D/O. HAMSA, AGED 21 YEARS, PARAKKAL HOUSE,
PARASSERY, KONGAD P.O, PALAKKAD DISTRICT., PIN
- 678631
BY ADVS.
JACOB SEBASTIAN
K.V.WINSTON
ANU JACOB
RESPONDENT/S:
1 THE UNION OF INDIA
REPRESENTED BY SECRETARY TO GOVERNMENT,
MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW
DELHI., PIN - 110001
2 THE RESERVE BANK OF INDIA
REPRESENTED BY THE GENERAL MANAGER, REGIONAL
W.P.(C) Nos.15376 & 25719 of 2022
-2-
OFFICE, KOCHI, ERNAKULAM DISTRICT., PIN - 682018
3 CANARA BANK
REPRESENTED BY ITS REGIONAL MANAGER, CANARA
BANK REGIONAL OFFICE, 31/1003, 2ND FLOOR, AZEEZ
COMPLEX, MARKET ROAD, PALAKKAD DISTRICT,
KERALA., PIN - 678014
4 THE BRANCH MANAGER
CANARA BANK; SREEKRISHNAPURAM BRANCH, PALAKKAD
DISTRICT., PIN - 679513
5 THE BRANCH MANAGER
CANARA BANK; SPECIALISED SME BRANCH, SHORANUR,
KULAPPULLY P.O, PALAKKAD DISTRICT., PIN - 679122
6 THE BRANCH MANAGER
CANARA BANK; KONGAD BRANCH, PALAKKAD DISTRICT.,
PIN - 678631
7 SADANAM INSTITUTE OF COMMERCE AND MANAGEMENT
STUDIES (SICOMS)
GANDHI SEVA SADAN P.O, PERUR VIA, PALAKKAD
DISTRICT, REPRESENTED BY ITS DIRECTOR, PIN -
679302
8 ADDL.R8 THE BRANCH MANAGER,
CANARA BANK, KALLUVAZHY BRANCH, KALLUVAZHY P.O,
PALAKKAD DISTRICT, PIN 679 514
[ADDL.R8 IS IMPLEADED AS PER ORDER DATED
01/07/2022 IN I.A-1/22 IN WP(C) 15376/2022]
BY ADVS.
S.MANU
M.GOPIKRISHNAN NAMBIAR
K.JOHN MATHAI
JOSON MANAVALAN
KURYAN THOMAS
PAULOSE C. ABRAHAM
RAJA KANNAN
PRANOY HARILAL
OTHER PRESENT:
DSGI S.MANU
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 08.11.2022, THE COURT ON 21.12.2022, ALONG WITH
WP(C).25719/2022, DELIVERED THE FOLLOWING:
W.P.(C) Nos.15376 & 25719 of 2022
-3-
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE V.G.ARUN
WEDNESDAY, THE 21ST DAY OF DECEMBER 2022 / 30TH
AGRAHAYANA, 1944
WP(C) NO. 25719 OF 2022
PETITIONER/S:
1 SAJITH.S
AGED 21 YEARS
S/O. SURENDRAN.A, AGED 21 YEARS, CHINNAMMA
NIVAS, PRANAMKULAM, VADAKKANTHARA, PALAKKAD
DISTRICT., PIN - 678012
2 RAJALAKSHMI.K
AGED 22 YEARS
D/O. KRISHNANKUTTY.K, AGED 22 YEARS, KUNNATHU
VEEDU, THIRUVADI, THEKKEPOTTA P.O, PALAKKAD
DISTRICT., PIN - 678687
3 SREEKUTTY.P.P
AGED 22 YEARS
D/O. PRABHAKARAN.N, AGED 22 YEARS, PARAKKODE,
THEKEKALAM, KANIYARCODE, THRISSUR DISTRICT.,
PIN - 680594
4 SUJITHRA.K.M
AGED 21 YEARS
D/O. MURALI.K.N, AGED 21 YEARS, KILINIYIL
HOUSE, SOUTH KONDAZHY, KONDAZHY, THRISSUR
DISTRICT., PIN - 679106
BY ADVS.
JACOB SEBASTIAN
K.V.WINSTON
ANU JACOB
RESPONDENT/S:
1 THE UNION OF INDIA
REPRESENTED BY SECRETARY TO GOVERNMENT,
MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW
W.P.(C) Nos.15376 & 25719 of 2022
-4-
DELHI., PIN - 110001
2 THE RESERVE BANK OF INDIA
REPRESENTED BY THE GENERAL MANAGER, REGIONAL
OFFICE, KOCHI, ERNAKULAM DISTRICT., PIN - 682018
3 CANARA BANK
REPRESENTED BY ITS REGIONAL MANAGER, CANARA
BANK REGIONAL OFFICE, 31/1003, 2ND FLOOR, AZEEZ
COMPLEX, MARKET ROAD, PALAKKAD DISTRICT,
KERALA., PIN - 678014
4 THE BRANCH MANAGER
CANARA BANK BIG BAZAAR BRANCH, B.O.C. ROAD,
PALAKKAD DISTRICT., PIN - 678014
5 THE BRANCH MANAGER
CANARA BANK PAZHAYANNUR BRANCH, KVM PLAZA,
AMBALA NADA, ELANAD ROAD, PAZHAYANNUR,
PAZHAYANNUR P.O, THRISSUR DISTRICT, KERALA.,
PIN - 680104
6 6. SADANAM INSTITUTE OF COMMERCE AND MANAGEMENT
STUDIES (SICOMS)
GANDHI SEVA SADAN P.O, PERUR VIA, PALAKKAD
DISTRICT, PIN-679302; REPRESENTED BY ITS
DIRECTOR., PIN - 679302
BY ADVS.
M.GOPIKRISHNAN NAMBIAR
K.JOHN MATHAI
JOSON MANAVALAN
KURYAN THOMAS
PAULOSE C. ABRAHAM
RAJA KANNAN
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
08.11.2022, THE COURT ON 21.12.2022, ALONG WITH
WP(C).15376/2022, DELIVERED THE FOLLOWING:
W.P.(C) Nos.15376 & 25719 of 2022
-5-
JUDGMENT
Dated this the 21st day of November, 2022
The petitioners are pursuing full time course
in Post Graduate Programme in Management (PGDM)
in the Sadanam Institute of Commerce and
Management Studies in Palakkad District. The
total fees for the course is Rs.3,75,000/-. As
the petitioners are from financially poor
background, they submitted application for
education loan of Rs.3,75,000/- The petitioners
grievance is that although their application for
loan is sanctioned, only Rs.3,30,000/- is
disbursed towards fees. The petitioners rely on
the judgment in W.P.(C) No.5009 of 2015 wherein a
learned Single Judge of this Court held that
banks are not justified in withholding a portion
of the loan sanctioned to students, towards
margin money. Reliance is also placed on the
W.P.(C) Nos.15376 & 25719 of 2022
judgment in W.P.(C) No.1815 of 2015, wherein,
after considering an identical Circular, this
Court held that capping of the tuition fee on a
few components goes against the spirit of the
education loan scheme.
2. In its counter affidavit, the Bank has
contended that deduction from the sanctioned
amount is not effected towards margin money and
on the other hand, the deduction is strictly in
accordance with the Model Education Loan Scheme
for pursuing higher education in India and abroad
published by the Indian Bank Association and the
Master Circular issued by the Bank adopting the
scheme.
3. A perusal of the Model Education Loan
Scheme and the Master Circular shows that the
banks can cap the maximum expenses towards
purchase of books/equipment/instruments/uniform,
purchase of computer and other expenses like
study tours, project work, thesis etc, at 20%.
W.P.(C) Nos.15376 & 25719 of 2022
The deduction from the sanctioned amount is seen
effected strictly in terms of the Scheme and the
Circular. Even then, this Court having already
held the capping of payment for certain
components at 20% of the tuition fees to be
illegal and there being no reason to come to a
different conclusion, the petitioners are
entitled for the relief sought.
The writ petitions are hence allowed,
directing the Branch Managers concerned to
disburse the balance amount due towards the
education loan of Rs.4,00,000/- sanctioned to the
petitioners, within two weeks of receipt of a
copy of this judgment.
Sd/-
V.G.ARUN
JUDGE
Scl/
W.P.(C) Nos.15376 & 25719 of 2022
APPENDIX OF WP(C) 15376/2022
PETITIONER EXHIBITS
Exhibit-P1 A TRUE COPY OF THE LETTER OF APPROVAL
IN RESPECT OF THE COURSE PURSUED BY
THE PETITIONERS IN THE 7TH RESPONDENT
COLLEGE FOR THE ACADEMIC YEAR 2021-22
DATED 25.06.2021.
Exhibit-P2 A TRUE COPY OF THE APPLICATION FOR
LOAN SUBMITTED BY THE FIRST PETITIONER
BEFORE THE FOURTH RESPONDENT DATED
28.12.2021.
Exhibit-P3 A TRUE COPY OF THE APPLICATION FOR
LOAN SUBMITTED BY THE SECOND
PETITIONER BEFORE THE FOURTH
RESPONDENT DATED 15.11.2021.
Exhibit-P4 A TRUE COPY OF THE APPLICATION FOR
LOAN SUBMITTED BY THE THIRD PETITIONER
BEFORE THE FOURTH RESPONDENT DATED
29.12.2021.
Exhibit-P5 A TRUE COPY OF THE APPLICATION FOR
LOAN SUBMITTED BY THE FOURTH
PETITIONER BEFORE THE FIFTH RESPONDENT
DATED 29.12.2021.
Exhibit-P6 A TRUE COPY OF THE APPLICATION FOR
LOAN SUBMITTED BY THE FIFTH PETITIONER
BEFORE THE SIXTH RESPONDENT DATED
28.12.2021.
Exhibit-P7 A TRUE COPY OF THE LETTER DATED
25.04.2022 ISSUED TO THE FIRST
PETITIONER BY THE SEVENTH RESPONDENT.
Exhibit-P8 A TRUE COPY OF LETTER DATED 28.04.2001
ISSUED BY THE GENERAL MANAGER, RESERVE
BANK OF INDIA TO ALL COMMERCIAL BANKS.
Exhibit-P9 A TRUE COPY OF LETTER DATED 04.11.2003
ISSUED BY RESERVE BANK OF INDIA TO ALL
COMMERCIAL BANKS.
Exhibit-P10 A TRUE COPY OF MODEL EDUCATIONAL LOAN
SCHEME FORMULATED AND PUBLISHED ON
03.06.2016 BY INDIAN BANKS'
ASSOCIATION.
W.P.(C) Nos.15376 & 25719 of 2022
Exhibit-P11 A TRUE COPY OF THE RELEVANT WEB PAGES
IN THE OFFICIAL WEBSITE OF THE
RESPONDENT BANK.
Exhibit-P12 A TRUE COPY OF THE JUDGMENT DATED
12.08.2016 IN W.P.(C) NO.5009/2015 OF
THIS HONOURABLE COURT.
Exhibit-P13 A TRUE COPY OF THE LOAN SANCTION
LETTER IN RESPECT OF NAYANA SHERON F
ISSUED BY THE THIRD RESPONDENT BANK
DATED 10.02.2022.
Exhibit-P14 A TRUE COPY OF THE LOAN SANCTION
LETTER IN RESPECT OF AKHILA ABRAHAM
ISSUED BY THE THIRD RESPONDENT BANK
DATED 11.02.2022.
W.P.(C) Nos.15376 & 25719 of 2022
APPENDIX OF WP(C) 25719/2022
PETITIONER EXHIBITS
Exhibit-P1 A TRUE COPY OF THE LETTER OF APPROVAL
IN RESPECT OF THE COURSE PURSUED BY
THE PETITIONERS IN THE 6TH RESPONDENT
COLLEGE FOR THE ACADEMIC YEAR 2021-22
DATED 25.06.2021.
Exhibit-P2 A TRUE COPY OF LETTER DATED 28.04.2001
ISSUED BY THE GENERAL MANAGER, RESERVE
BANK OF INDIA TO ALL COMMERCIAL BANKS.
Exhibit-P3 A TRUE COPY OF LETTER DATED 04.11.2003
ISSUED BY RESERVE BANK OF INDIA TO ALL
COMMERCIAL BANKS.
Exhibit-P4 A TRUE COPY OF MODEL EDUCATIONAL LOAN
SCHEME FORMULATED AND PUBLISHED ON
03.06.2016 BY INDIAN BANKS'
ASSOCIATION.
Exhibit-P5 A TRUE COPY OF THE RELEVANT WEB PAGES
IN THE OFFICIAL WEBSITE OF THE
RESPONDENT BANK.
Exhibit-P6 A TRUE COPY OF THE LETTER DATED
21.06.2022 ISSUED BY THE THIRD
RESPONDENT BANK TO THE FIRST
PETITIONER.
Exhibit-P7 A TRUE COPY OF THE JUDGMENT DATED
12.08.2016 IN W.P.(C) NO.1815/2015 OF
THIS HONOURABLE COURT.
