State Bank Of India vs Thummu Venkatanarayana
2022 Latest Caselaw 6065 Tel

    THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN

                                 AND

     THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY

                 WRIT APPEAL No.764 of 2022


JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)


      Heard Mr. A.Krishnam Raju, learned counsel for the

appellants and Mr. P.Ravi Shankar, learned counsel for the

respondent/writ petitioner.

2. Appellants before us are State Bank of India and

its officials.

3. The writ appeal has been preferred against the

order dated 12.10.2022 passed by the learned Single Judge

allowing Writ Petition No.23240 of 2021 filed by the

respondent.

4. Respondent had filed the related writ petition for a

direction to the appellants (who were arrayed as respondents

in the writ petition) to disburse the educational loan to the

respondent's daughter as per sanction dated 02.08.2019 2 HCJ & CVBRJ W.A.No.764 of 2022

without insisting on submission of Land Conversion

Certificate in respect of the land offered as surety.

5. It was submitted before the learned Single Judge

that though the petitioner had applied for issuance of non-

agricultural land proceedings, the same was not furnished to

the respondent which was one of the conditions for grant of

educational loan by the appellants. Therefore, respondent

had to approach the Court.

6. After filing of the writ petition, the concerned

Tahsildar issued the non-agricultural land conversion

proceedings on 21.10.2022. It is in such circumstances that

learned Single Judge took the view that non-release of the

sanctioned loan amount to the petitioner was not justified.

Relying upon two decisions of the Kerala High Court as well

as Madras High Court where directions were issued by the

concerned High Courts to the Bank for releasing the

sanctioned educational loan against the surety of agricultural

land, learned Single Judge vide the order dated 12.10.2022

directed the appellants to release the sanctioned educational 3 HCJ & CVBRJ W.A.No.764 of 2022

loan of Rs.30 lakhs to the petitioner. Insofar guidelines

issued by the appellants pertaining to sanctioning of

educational loan, learned Single Judge took the view that

those guidelines were administrative in nature lacking in

statutory force.

7. That apart, when the respondent had offered

adequate surety in the form of the subject land which has

undergone conversion from agricultural use to non-

agricultural use, learned Single Judge directed release of the

sanctioned educational loan within a period of four (04) weeks

without reference to the said guidelines.

8. On due consideration, we do not find any error or

infirmity in the view taken by the learned Single Judge to

warrant interference. Appellants have got adequate surety as

coverage for the loan sanctioned to the respondent.

9. In the circumstances, we decline to interfere with

the order passed by the learned Single Judge.

                                4                      HCJ & CVBRJ
                                                 W.A.No.764 of 2022




     10.   Writ Appeal is accordingly dismissed.         However,

there shall be no order as to costs.

11. As a sequel, miscellaneous applications pending, if

any, in this Writ Appeal, shall stand closed.

___________________________ UJJAL BHUYAN, CJ

___________________________ C.V.BHASKAR REDDY, J

Date: 22.11.2022 KL