Skip to main content

Can't reject education loan over arrears: High Court

Holding that banks cannot deny educational loans on the grounds that a student has examination arrears, the Madras High Court (Madurai Bench) has directed a Canara Bank branch in Karaikudi in Sivaganga district to sanction Rs 3.60 lakh as loan to an engineering college student.
The student V P Infant Ranjith is pursuing BE Computer Science Engineering in a private engineering college near Chennai. His father V K Peter Rajan, an advocate, filed a petition stating that the Canara Bank, Sankarapuram Branch in Sivaganga had refused to sanction an education loan during 2011 stating that they had already reached the cumulative loan sanctioning limit for the year. The bank officials advised him to approach the next year.
The following year when he applied for a loan of Rs 3.60 lakh, the bank kept his application pending but orally indicated to him that since he is an advocate it would be difficult to recover the loan amount. Besides, Ranjith had failed in a subject in the second year and hence loan cannot be granted to him.
Refusing to accept the bank’s contention, Justice N Kirubakaran said in engineering education the compartmental system was followed (allowing students to clear arrears in subsequent semesters). “It is not fair on the part of the bank to reject the application on the ground that the student failed in one subject,” he said.
Justice Kirubakaran said, “The bank is granting educational loan subject to rules and regulations and if there is failure on repayment of loan, it is always open to the bank to take recovery action.”
Hence, he directed the bank to process the education loan within 10 days.


Comments

  1. vishal15 March 2019 at 17:00

    It was really pleasure to read such a beautiful piece of Article. It just should have elaborated more to get the proper insights but if you are looking for more information just continue to - Education Loans For Students

    ReplyDelete
    Replies
    1. Unknown16 September 2020 at 18:49

      This comment has been removed by a blog administrator.

      Delete
  2. Subhajit Roy31 December 2019 at 16:46

    Much obliged to you for sharing the information, I have the best information about Study Loan.

    ReplyDelete

Post a Comment

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more

When debt is bona fide disputed and the defence is a substantial one, the court will not wind up the company

In SHITAL FIBERS LTD.  vs  INDIAN ACRYLICS LIMITED, as per the respondent, appellant had made a payment of Rs.61,83,218/­. However, there was an outstanding balance of Rs.8,92,723/­ as on 28.7.2008. Since despite repeated requests, balance amount was not paid, the respondent issued a statutory notice to the appellant. The same was duly responded to. As the payment was not made despite notice being duly served on the appellant, the respondent filed the aforesaid Company Petition seeking winding up of the present appellant for its inability to pay admitted debts. The learned Company Judge vide order dated 28.9.2015 admitted the Company Petition. However, while doing so, the learned Company Judge observed, that since the appellant was an on­going concern, an opportunity should be granted to it to settle the accounts with the respondent by 31.12.2015. Only in case of failure of the settlement, the citation was directed to be published. On appeal, the Division Bench of the High Cou...
Post a Comment
Read more

Abusing in-laws a ground for divorce: SC

Abusing in-laws and not allowing them to reside in the matrimonial home by a woman amounts to cruelty to her spouse, ground enough for grant of divorce, the Supreme Court has ruled while allowing an NRI's plea for legal separation from his wife. A bench of Justices Vikaramajit Sen and A M Sapre said such incidents could not be termed as "wear and tear" of family life as held by Madras High Court which had said that a couple must be prepared to face such situations in matrimonial relationship. The NRI had filed a divorce petition alleging that his wife was abusive to his family members and did not allow his parents and siblings to stay in his house when they visited the US. Referring to an incident, the husband told the court that his wife had once locked him and his sister out of the house and abused them saying they belonged to a 'prostitute family'. She refused to allow her sister-in-law to enter the house and even lodged a police complaint against her hu...
4 comments
Read more