Dismissed

Linu Kurian v. State Bank of India

Kerala HC3 Sept 2021WP(C)/15759/2021

Case brief

AI extract

What is this about?

Petitioners challenged rejection of educational loan due to co-borrower's doubtful credit history. Court dismissed writ as belated perjury on facts of 2019 filing and lack of pleading on current status, leaving contentions open for fresh application.

What did the court decide?

Writ petition is dismissed in circumstances as the application is belated and lacks pleading on current subsistence of need or fee payment.

Linu Kurian Vs State Bank of India — Banking and Recovery | Kerala HC (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.B.SURESH KUMAR

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FRIDAY, THE 3^RD DAY OF SEPTEMBER 2021 / 12TH BHADRA, 1943

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WP(C) NO. 15759 OF 2021

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PETITIONERS:

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1 LINU KURIAN AGED 21 YEARS, D/O KURIAN CHACKO, AGED 21 YEARS, CHUMAPPUNKAL HOUSE, KAPPAD P.O., KOTTAYAM DISTRICT - 686 508

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2 KURIAN CHACKO S/O CHACKO, AGED 58 YEARS, CHUMAPPUNKAL HOUSE, KAPPAD P.O., KOTTAYAM DISTRICT - 686 508

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BY ADVS. JOHNSON MANAYANI JEEVAN MATHEW MANAYANI

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RESPONDENTS:

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1 STATE BANK OF INDIA VELLATHOTTAM BUILIDNGS, KALAKETTY P.O., KOTTAYAM DISTRICT - 686508, REPRESENTED BY ITS BRANCH MANAGER

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2 THE BRANCH MANAGER STATE BANK OF INDIA, VELLATHOTTAM BUILDINGS, KALAKETTY P.O., KOTTAYAM DISTRICT - 686508

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3 THE CHIEF MANAGER STATE BANK OF INDIA, RASMEC, PALA P.O., KOTTAYAM DISTRICT- 686 575

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4 THE TRANS UNION CYBIL LTD. (FORMERLY CREDIT INFORMATION BUREAU INDIA LTD), 1, WORLD CENTRE, TOWER 2A, 19TH FLOOR, SENAPATI BAPAT MARG, ELPHINSTONE ROAD, MUMBAI-400011, REP BY ITS GENERAL MANAGER.

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BY ADV JAWAHAR JOSE, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 15759 OF 2021

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P.B.SURESH KUMAR, J.

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W.P.(C) No.15759 of 2021

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Dated this the 3^rd day of September, 2021

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J U D G M E N T

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The first petitioner is the daughter of the second petitioner. The first petitioner is pursuing B.Sc. Nursing Course at Mar Sleeva College of Nursing, Pala. The petitioners have applied for an educational loan of Rs.4 lakhs to the Kalaketti Branch of the State Bank of India (the Bank) on 28.05.2019, so as to enable the first petitioner to pursue her education. Having found that the credit history of the second petitioner is doubtful in terms of the information received from the Credit Information Bureau India Limited (the CIBIL), a Credit Information Company registered under the Credit Information Companies (Regulation) Act, 2005, the application for loan preferred by the petitioners was returned. The petitioners are aggrieved by the said decision of the Bank. According to the petitioners, an application for educational loan cannot be rejected based on adverse credit

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WP(C) NO. 15759 OF 2021

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information relating to the co-applicant/co-borrower. The petitioners, therefore, seek directions to the Bank to accept the application for loan submitted by them, process the same and disburse the loan without delay.

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2 . A counter affidavit has been filed in the matter on behalf of the Bank. The stand taken by the Bank in the counter affidavit is that it is obligatory for the Banks to appraise the credit worthiness of the applicants for loan based on credit information reports received from one or more credit information companies, in terms of the circulars issued by the Reserve Bank of India ; that it is provided therefore in the schemes formulated by the Bank from time to time for grant of educational loan that borrowers/co-borrowers/guarantors of educational loans should not have any adverse credit history and that it is in the said circumstances that the application for educational loan submitted by the petitioners was returned by the Bank. As such, according to the Bank, the decision of the Bank to reject the application for educational loan is in order. It is also stated in the counter affidavit that the petitioners have approached this court after almost two years of the decision of the Bank to reject the application for educational loan preferred by them and the writ petition is therefore belated and liable to

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WP(C) NO. 15759 OF 2021

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be dismissed on that ground as well.

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3 . Heard the learned counsel for the petitioners as

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also the learned counsel for the Bank.

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4 . As rightly pointed out by the Bank, the materials on record indicate that the application for educational loan referred to by the petitioners in the writ petition is one preferred by them as early as on 28.05.2019 and the same was returned by the Bank sometime during 2019 itself. The writ petition is filed on 03.08.2021. There is no pleading in the writ petition as to the reason for not challenging the decision of the Bank within a reasonable time. There is also no pleading in the writ petition as to whether the first petitioner is still pursuing the course and if so, whether she has remitted the fee payable for the last two years. The writ petition proceeds as if the same is instituted immediately after the impugned decision. The materials on record indicate that even the educational loan scheme of the Bank which was prevailing at the time when the application of the petitioners was returned, has been revised on a few occasions thereafter. In the circumstances, I am of the view that this court would not be justified in examining the correctness of the stand taken by the Bank during 2019 in this belated writ petition.

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WP(C) NO. 15759 OF 2021

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The writ petition, in the circumstances, is dismissed. It is however, made clear that the judgment will not preclude the petitioners from submitting a fresh application for educational loan, if the need subsists even now. As the petitione rs are given liberty to prefer a fresh application for educational loan, the contentions raised by them in the writ petition are left open.

Sd/-

P.B.SURESH KUMAR

JUDGE

WP(C) NO. 15759 OF 2021

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APPENDIX OF WP(C) 15759/2021

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY OF THE ORDER DATED 30.10.2018 GRANTING PROVISIONAL AFFILIATION OF THE STATE OF KERALA TO MAR SLEEVA COLLEGE OF NURISNG, PALA

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Exhibit P2 TRUE COPY OF THE CERTIFICATE DATED 30.10.2018 ISSUED BY THE PRINCIPAL OF MAR SEEVA COLLEGE OF NURSING, PALA, TO THE 1ST PETITIONER Exhibit P3 TRUE RELEVANT PAGES OF THE PETITIONERS EDUCATIONAL LOAN APPLICATION, SUBMITTED BEFORE THE 1ST RESPONDENT DATED NIL

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Exhibit P4 TRUE COPY OF THE NOTE OF RETURN OF APPLICATION FOR EDUCATIONAL LOAN

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RESPONDENT EXHIBITS

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Exhibit R1(a) TRUE COPY OF THE CIRCULAR DATED 27/06/2014 ISSUED BY THE RESERVE BANK OF INDIA. Exhibit R1(b) TRUE COPY OF THE CIRCULAR DATED 18/04/2007 ISSUED BY THE RESERVE BANK OF INDIA. Exhibit R1(c) TRUE COPY OF THE RELEVANT PAGES OF THE CIRCULAR DATED 10/07/2017 ISSUED BY THE STATE BANK OF INDIA. Exhibit R1(d) TRUE COPY OF THE RELEVANT PAGES OF THE CIRCULAR DATED 02/12/2019 ISSUED BY THE STATE BANK OF INDIA. Exhibit R1(e) TRUE COPY OF THE RELEVANT PAGES OF THE CIRCULAR DATED 20/03/2021 ISSUED BY THE STATE BANK OF INDIA. Exhibit R1(f) TRUE COPY OF THE CIRCULAR DATED

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WP(C) NO. 15759 OF 2021

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17/01/2018 ISSUED BY THE STATE BANK OF INDIA.

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Exhibit R1(g) TRUE COPY OF THE RELEVANT PAGES OF THE CIRCULAR DATED 01/07/2015 ISSUED BY THE STATE BANK OF INDIA. Exhibit R1(h) TRUE COPY OF THE CHART PREPARED BY THE PETITIONER SHOWING THE PERFORMANCE OF EDUCATIONAL LOAN AS ON DECEMBER 2020. Exhibit R1(i) TRUE COPY OF THE RELEVANT PAGES OF THE CIRCULAR DATED 04/09/2020 ISSUED BY THE STATE BANK OF INDIA.

Linu Kurian v. State Bank of India

Case brief

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Linu Kurian v. State Bank of India

Case brief

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