The court allowed writ petitions challenging deductions by banks from sanctioned education loans. Relying on prior judgments, the court held that capping expenses is illegal and directed the banks to disburse the balance amount. No specific statute was cited.
Direction to branch managers to disburse the balance loan amount of Rs.4,00,000/- within two weeks.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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
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| 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
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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:
W.P.(C) Nos.15376 & 25719 of 2022
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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
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JUDGMENT
Dated this the 21st day of December, 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.
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.
V.G.ARUN JUDGE
Scl/
W.P.(C) Nos.15376 & 25719 of 2022
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APPENDIX OF WP(C) 15376/2022
| PETITIONER EXHI Exhibit-P1 |
BITS 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
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| Exhibit-P11 A TRUE IN THE RESPON |
COPY OF THE RELEVANT WEB PAGES OFFICIAL WEBSITE OF THE DENT BANK. |
|---|---|
| Exhibit-P12 A TRUE 12.08. THIS H |
COPY OF THE JUDGMENT DATED 2016 IN W.P.(C) NO.5009/2015 OF ONOURABLE COURT. |
| Exhibit-P13 A TRUE LETTER ISSUED DATED |
COPY OF THE LOAN SANCTION IN RESPECT OF NAYANA SHERON F BY THE THIRD RESPONDENT BANK 10.02.2022. |
| Exhibit-P14 A TRUE LETTER |
COPY OF THE LOAN SANCTION IN RESPECT OF AKHILA ABRAHAM |
| ISSUED DATED |
BY THE THIRD RESPONDENT BANK 11.02.2022. |
W.P.(C) Nos.15376 & 25719 of 2022
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APPENDIX OF WP(C) 25719/2022
| PETITIONER EXH | IBITS |
|---|---|
| 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. |
1 issue framed by the court
Whether a bank can retain a portion of an sanctioned education loan as margin money contrary to court precedents.
Vaisakh T.P and others
Sajith.S and others
The Union of India
The Reserve Bank of India
Canara Bank and others
Sadanam Institute of Commerce and Management Studies
V.G.ARUN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
