The High Court of Madras dismissed a writ petition seeking a mandatory writ directing a bank to sanction a specific loan amount. The Court held that loan sanction is not a matter of right and cannot be enforced by the High Court absent established procedural violations.
Writ petition dismissed with no costs; connected miscellaneous petition closed.
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 JUDICATURE AT MADRAS
DATED : 01.10.2021
CORAM
THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
W.P.No.12662 of 2016
and
W.M.P.No.11012 of 2016
N.Vimala ... Petitioner
Vs
1.The State of Tamil Nadu, Rep. by the Secretary to Government, Adi-Dravidar and Tribal Welfare Department, Fort St.George, Chennai-9.
2.The District Manager, Tamil Nadu Adi-Dravidar Housing & Development Corporation (TAHDCO), 19, 2nd street, Judges Colony, Periakuppam, Tiruvallur.
3.The General Manager, UCO Bank, 328, Thambuchetty Street, Chennai-1.
4.The Manager, UCO Bank, Perambakkam, Thambuchetty street, Chennai-1. ...Respondents
PRAYER : Writ Petition filed Under Article 226 of the Constitution of India, praying to issue a writ of mandamus directing the 3rd respondent to issue necessary instructions to the 4th respondent to sanction the loan amount of Rs.7,50,000/(Rupees Seven lakh fifty thousand only) for stationary and fancy goods business at the earliest as per the loan recommendation letter of the 2nd respondent in No.Ma.Ka.No.a1/2013-14/SEPY-309 dated 14.03.2014.
For Petitioner : Mr.S.Arunkumar For Respondents : Mr.C.Kathiravan 1 and 2 Government Advocate For Respondents : Mrs.T.Hemalatha 3 and 4
O R D E R
The relief sought for in the present writ petition is to direct the 3 r d respondent to issue necessary instructions to the 4t h respondent to sanction the loan amount of Rs.7,50,000/(Rupees Seven Lakh Fifty thousand only) for the petitioner’s stationary and fancy goods business at the earliest as per the loan recommendation letter of the 2nd respondent in No.Ma.Ka.No.a1/2013-14/SEPY-309 dated 14.03.2014.
2. Sanction of loan by the Bank can never be claimed as a matter of right. The learned counsel appearing on behalf of the Bank states that such a loan is not viable. However, the petitioner states that the loan is recommended.
3.This Court is of the considered opinion that submission of application or mere recommendation would not confer any right to file a writ petition for seeking the prayer to disburse the loan. Loan is to be granted by the Bank strictly in accordance with the rules and regulations. The High Court cannot direct the Bank to issue loan to the petitioner and it is to be granted only by following the procedures.
4.This being the principle, the petitioner has not established even a semblance of right, so as to consider the relief. Accordingly, the writ petition stands dismissed. No costs. Consequently, the connected Miscellaneous Petition is closed.
Sd/Asst. Registrar
ars/mka
To
1.The Secretary to Government, Adi-Dravidar and Tribal Welfare Department, Fort St.George, Chennai-9.
2.The District Manager, Tamil Nadu Adi-Dravidar Housing & Development Corporation (TAHDCO), 19, 2nd street, Judges Colony, Periakuppam, Tiruvallur.
3.The General Manager, UCO Bank, 328, Thambuchetty Street, Chennai-1.
4.The Manager, UCO Bank, Perambakkam, Thambuchetty street,
Chennai-1.
+1 C.C.to MR.S.ARUNKUMAR, ADVOCATE, SR.NO.51365/2021
+1 C.C.to MR.K.S.VISWANATHAN, ADVOCATE, SR.NO.51683/2021
+1 C.C.to GOVERNMENT PLEADER, SR.NO.52021/2021
W.P.No.12662 of 2016
PM(CO)
RA 20/10/2021
2 issues framed by the court
Whether sanction of loan by the Bank can be claimed as a matter of right.
Whether the High Court can direct the Bank to issue a loan without following rules and regulations.
1 provisions across 1 enactments
N.Vimala
The State of Tamil Nadu, Rep. by the Secretary to Government, Adi-Dravidar and Tribal Welfare Department
The District Manager, Tamil Nadu Adi-Dravidar Housing & Development Corporation (TAHDCO)
The General Manager, UCO Bank
The Manager, UCO Bank, Perambakkam
S.M.Subramaniam
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
