Allowed

Afsal S., v. Union of India

Kerala HC7 Dec 2021WP(C)/15248/2021

Case brief

AI extract

What is this about?

Petitioner, a student awaiting results after failing one subject due to illness, approached the High Court seeking an order to grant an educational loan. The Bank refused sanction, claiming the student was ineligible. The Court held that failing a subject does not bar loan eligibility under the Scheme and directed the Bank to process the application.

What did the court decide?

Respondents 4 & 5 directed to process and sanction the educational loan application expeditiously, within one month.

Afsal S., Vs Union of India — Education and Admissions | Kerala HC (2021)

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WP(C) NO. 15248 OF 2021

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN

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TUESDAY, THE 7^TH DAY OF DECEMBER 2021 / 16TH AGRAHAYANA, 1943

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WP(C) NO. 15248 OF 2021

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PETITIONER/S:

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AFSAL S., AGED 22 YEARS S/O. SHANAVAS M., RESIDING AT AFSAL MANZIL, KUNNICODE P.O., KOLLAM-691508.

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BY ADV R.KISHORE (KALLUMTHAZHAM)

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RESPONDENT/S:

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1 UNION OF INDIA, REPRESENTED BY SECRETARY, DEPARTMENT OF ECONOMIC AFFAIRS, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110001.

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2 THE REGIONAL DIRECTOR, RESERVE BANK OF INDIA, BAKERY JUNCTION, P.B. NO.6507, THIRUVANANTHAPURAM-695033. 3 *DELETED: CHIEF EXECUTIVE ENGINEER, CENTRAL BANK OF INDIA, CHANDER MUKHI, NARIMAN POINT, MUMBAI-400021. *RESPONDENT NO.3 IS DELETED AT THE RISK OF THE PETITIONER FROM THE PARTY ARRAY AS PR ORDER DATED 29.11.2021 IN IA 1/2021 IN WPC NO. 15248/2021.

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4 REGIONAL MANAGER, CENTRAL BANK OF INDIA, 1ST FLOOR, METRO PALACE, OPPOSITE ERNAKULAM TOWN RAILWAY STATION, KOCHI682018.

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WP(C) NO. 15248 OF 2021 2

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5 BRANCH MANAGER/SENIOR MANAGER, CENTRAL BANK OF INDIA, KUNNICODE-691507.

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BY ADVS. JOSEPH RONY JOSE, CGC K.M.ANEESH ADARSH KUMAR DILEEP CHANDRAN SHASHANK DEVAN

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OTHER PRESENT:

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SRI.JOSEPH RONY JOSE, CGC SRI.K.M.ANEESH SC, R4

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 15248 OF 2021

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P.V.KUNHIKRISHNAN, J

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W.P.(C.) No.15248 of 2021

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Dated this the 7^th day of December, 2021

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JUDGMENT

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The petitioner is a student pursuing his career in B.Sc Physician Assistant Course in Shanmugha College of Allied Health Sciences, Salem. It is the case of the petitioner that the petitioner submitted an application before the 5^th respondent for an educational loan. It is the further case of the petitioner that the loan application was submitted in 2019 and the same was not disbursed to the petitioner even now. It is the further case of the petitioner that he was laid up during his 1^st year examination because of viral fever and he was not able to perform well in his 1^st year examination due to his illness. The petitioner already appeared for the supplementary examination

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WP(C) NO. 15248 OF 2021

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along with 2^nd year and he is awaiting results. It is the case of the petitioner that the Bank is not sanctioning the loan giving frivolous reasons. After repeated enquiry, the Bank had given a letter to the petitioner stating that the loan is under consideration. Ext.P1 is the letter issued by the Shanmugha College of Allied Health Sciences, Salem which shows that the petitioner is studying in that College for B.Sc Physician Assistant Course. Ext.P2 is the letter issued by the 5^th respondent to the petitioner in which it is submitted that the resubmitted loan application by the petitioner on 28.12.2020 was processed and submitted to the Regional Office, Thiruvananthapuram for further direction on 31.12.2020. It is also stated in Ext.P2 that the application is pending with the Regional Office. But, it is also stated in Ext.P2 that as per the 1^st year marklist, the petitioner failed in the main subject. Hence, the 5^th respondent informed all the matters to the Regional Office and awaiting for their clearance. The specific case of the petitioner is that the Bank is not following the

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WP(C) NO. 15248 OF 2021

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circular issued by the RBI as well as policies of the Government with respect to educational loan application of the students. Ext.P3 is the circular issued by the RBI and Ext.P4 is a judgment of this Court. It is also stated by the petitioner that he submitted a representation before 1^st respondent against the illegal stand of the 5^th respondent, as evident by Ext.P5. The representation submitted before the 3^rd and 4^th respondents is Ext.P6. Even then, the loan is not sanctioned. Hence, this writ

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petition is filed with following prayers :

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“a) Issue a writ of mandamus or order or direction to the 5th respondent to grant the educational loan to the petitioner as per Exhibit:P3 within a time fixed by this Hon'ble Court. b) Issue a writ of mandamus or order or direction directing the 3^rd and 4^th respondent to consider and pass orders on Exhibit:P6 representation filed by the petitioner in the interest of Justice. c) To grant other orders which this Hon'ble Court deem fit and proper in the circumstances of the case. d) Grant the cost of this Petition.”

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Heard the learned counsel for the petitioner and the

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learned Standing Counsel for the respondent – Bank. I also heard the CGC for the 1^st respondent.

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The learned counsel for the petitioner reiterated his contentions in the writ petition. The counsel submitted that

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WP(C) NO. 15248 OF 2021

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nowhere in the Model Educational Loan Scheme for Pursuing Higher Education in India and Abroad, 2021 (for short 'the Scheme'), it is stated that if an applicant for educational loan failed in a subject in a course, for which the loan application is submitted, he is not entitled educational loan. The counsel submitted that in the qualifying examination, the petitioner succeeded and relevant documents were already produced. The counsel submitted that the stand of the respondents that since the petitioner failed in one subject in the course for which he wants the educational loan, he is not eligible is not a reason to reject the educational loan. The counsel submitted that he was laid up with viral fever and he was not able to perform well in the 1^st year examination of the course for which he submitted the loan application. That is why he failed in the examination and he already appeared for the supplementary examination.

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On the other hand, the learned Standing Counsel for the respondent takes me through clause 6 of the Scheme, in

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WP(C) NO. 15248 OF 2021

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which it is stated that the list of documents required to be submitted by the student. The counsel submitted that the proof of academic records is one of the document which is to be submitted by the petitioner along with the loan application. The counsel also takes me through clause 14 of the Scheme, in which it is stated that the progress report at regular intervals is to be submitted by the student.

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I considered the contentions of the petitioner and the

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Bank. I perused the Scheme. It will be better to extract clause 6 of the Scheme, which says about the list of documents required.

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“6. List of Documents required :

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1. Student – applicant:

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Proof of Identity and Address as per KYC norms

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Proof of Academic Records

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Proof of admission : Offer Letter or Admission Letter from

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the institution.

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Statement of cost of study/Schedule of expenses.

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Passport-size photographs.

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Previous/existing loan, if any, from Banks/Lenders, banks

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may obtain suitable documentary evidence.”

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The 2^nd document to be produced by the student is

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the proof of academic records. A student is submitting a loan

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WP(C) NO. 15248 OF 2021

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application for a new course. In such situation, the intention of the Scheme can only the proof of academic records prior to that course. In other words, it is the marks obtained by the candidate in the qualifying examination is to be furnished. It cannot be said that simply because the student failed in one subject for which he applied for the educational loan, his loan application itself can be rejected. Of course, clause 14 of the Scheme is also relevant, which is extracted hereunder :

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“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.”

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From the above, it is clear that the students only need to submit progress report at regular intervals. Clause 14 will not show that the student should succeed in course for which loan application is submitted. In such circumstances, according to me, the stand of the Bank that since the petitioner failed in one subject in the course, his educational loan application cannot be considered is unsustainable. Therefore, there can be a

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WP(C) NO. 15248 OF 2021

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direction to the respondent-Bank to process the educational loan application of the petitioner, if it is otherwise in order. Therefore, this writ petition is disposed in the following

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manner :

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1. Respondent Nos. 4 and 5 are directed to process the educational loan application of the petitioner, in the light of the observations in this judgment and sanction the same, if the same is otherwise in order.

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1. The above exercise should be completed by the 4^th and 5^th respondents as expeditiously as possible, at any rate, within one month from the date of receipt of a copy of this judgment.

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SD/-

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P.V.KUNHIKRISHNAN JUDGE

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SKS

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WP(C) NO. 15248 OF 2021

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APPENDIX OF WP(C) 15248/2021

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PETITIONER EXHIBITS

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Exhibit P1 THE TRUE COPY OF THE LETTER ISSUED BY THE SHANMUGA COLLEGE OF ALLIED HEALTH SCIENCES DATED 28/12/2020. Exhibit P2 THE TRUE COPY OF THE LETTER ISSUED BY THE 5TH RESPONDENT DATED 15/07/2021. Exhibit P3 THE TRUE COPY OF THE CIRCULAR ISSUED BY THE RBI DATED 28/04/2001. Exhibit P4 THE TRUE COPY OF THE JUDGMENT OF THIS HON'BLE COURT IN WPC 10968/2020. Exhibit P5 THE TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT DATED 23RD JULY 2021. Exhibit P6 THE TRUE COPY OF THE REPRESENTATION SUBMITTED BEFORE THE 3RD AND 4TH ….DATED 23RD JULY 2021.

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RESPONDENT'S EXHIBITS : ANNEXURE-R3(A) : TRUE COPY OF THE LETTER DATED 11.8.2021 ISSUED TO THE PETITIONER.

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//TRUE COPY//

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P.A. TO JUDGE

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SKS

Afsal S., v. Union of India

Case brief

What is this about?

What did the court decide?

Afsal S., v. Union of India

Case brief

What is this about?

What did the court decide?

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