High Court · 2025

W.P.No.2257 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 07.02.2025CORAM : THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHYW.P.No.2257 of 2025and W.M.P.No.2596 of 2025G.Srivarun.. Petitioner Versus1. The Secretary, Department of Financial Services Ministry of Finance, 4th Floor, Jeevan Deep Building Sansad Marg, New Delhi - 110 001.2. The District Collector, The District Collector Office, Fort Main Road, Salem - 636 001.3. The Managing Director, Canara Bank, No.112, J.C.Road, Banglore, Karnataka - 560 002.4. The Chief General Manager, Canara Bank,1/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025 563, Anna Salai, Teynampet, Chennai - 600 018.5. The Assistant General Manager, Canara Bank, Sri Saradha Vidhya School Campus, Saradha College Road, Salem - 636 016.7. The Branch Manager, Canara Bank, Ayyothiyapattinam Branch, Ayyothiyapattinam, Salem - 636 101... RespondentsPrayer : Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorarifed Mandamus to call for the entire records pertaining to the impugned order, dated 13.01.2025 issued by the 6th respondent and to quash the same and consequently, direct the 6th respondent to release/disburse the 5th and final insallment of the education loan amount of Rs.19,79,000/- (Rupees nineteen lakhs seventy nine thousand only) in respect of petitioner's education loan account No.162000289878 within time frame fixed by this Court.For Petitioner: Mr.T.KarunakaranFor Respondents: No appearance for R1: Mr.V.P.R.Elamparithi,2/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025 Additional Government Pleader, for R2: Mr.R.Jagadeesan, for Mr.K.V.Subramaniam Associates, for RR-3 to 7ORDERThis Writ Petition is filed for a Writ of Certiorarified Mandamus calling for the entire records relating to the order, dated 13.01.2025 issued by the sixth respondent and to quash the same and consequently, to direct the sixth respondent to release/disburse the fifth and final installments of the educational loan amount of Rs.19,79,000/- in respect of the petitioner's educational loan account bearing No.162000289878 within the time frame as fixed by this Court.2. The factual matrix, in which the Writ Petition arises, is that the petitioner has availed the educational loan. The total amount payable to the College as fees is said to be Rs.1,09,95,050/-, for which, the petitioner approached the respondent bank for the educational loan. The respondents 3/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025sanctioned a total sum of Rs.98,95,000/-. Every year, a sum of Rs.19,79,000/- has to be released by way of loan. The petitioner's parents properties were given as security and the petitioner's parents stood as surety. The petitioner is undergoing his M.B.B.S., course in a private medical college. For the first four years, the installments have already been released. Now, the petitioner is undergoing fifth year. For the fifth year alone, now the bank is not releasing the installments. The petitioner will be put to grave prejudice and undue hardship since the exam is supposed to take place in one or two days and the College is gracious enough to extend time till today. The petitioner's parents are finding it extremely difficult to arrange the money. Therefore, the petitioner is before this Court.3. The case of the petitioner is resisted by the respondent bank on the ground that the parents have also borrowed other loans. One of the other loans has become a Non Performing Asset. Therefore, by virtue of that, already, all the loans have been recalled and were declared as Non 4/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025Performing Assets and the demand notice under Section 13(2) of the SARFAESI Act has already been issued. When already, the demand notice has been issued to the self-same borrowers, the bank cannot be advancing further installments of the loan. The educational loan is also treated as a Non Performing Asset. Under the said circumstances, the learned Counsel submits that the bank is not in a position to further disburse the loan.4. In reply, Mr.T.Karunakaran, the learned Counsel for the petitioner, by taking this Court through the various transactions, would submit that this is a case where the petitioner's parents are genuine borrowers. They made their utmost sincere attempts to repay the amounts which are outstanding. As a matter of fact, in the recent past alone, they have made payments worth about Rs.2,90,96,478/-. Only less than a crore is balance. The value of the properties is much much more than what is outstanding. Therefore, the respondents are liable to release the next installment also.5/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 20255. I have considered the rival submissions made on either side and perused the material records of the case.6. At the outset, it has to be considered that nobody can compel any other person or for the matter, the bank also, to grant loan to them. There is no such a statutory right or a fundamental right in respect thereof. However, in respect of educational loan, the Court will interfere if the banks are arbitrarily denying loans to the petitioner. In this case, it can be seen that the petitioner's parents are dealing in crores and there are several loan accounts. When the bank is saying about the Non Performance of the other loan accounts and the entire loan accounts, being recalled and made as Non Performing Assets and when Section 13(2) notice was issued and the same is mentioned as a reason for denial of the last installment and recalling the entire loan as outstanding, this Court under Article 226 of the Constitution of India cannot go into further details and the nitty-gritties argued by the learned Counsel to find out whether each and every action of the bank is 6/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025correct or not. 7. Suffice it to mention that when plausible reason is given for non-grant of loan, a Writ of Mandamus cannot be issued directing the Canara Bank to further disburse the loan amount. Therefore, unfortunately, this Court could not aid the petitioner. The petitioner has to make his own arrangements to pay the last installment. The college authorities also shall consider the difficulty and extend the petitioner some time if possible. 8. Only with the said observations, this Writ Petition stands disposed of. This order does not decide any of the arguments which are raised with reference to the classification of Non Performing Assets or any of the grounds raised by the petitioner relating to the calculation or the actions of the bank which will be decided only in the appropriate forum. This is only in respect of the non-sanctioning of the last installments of the educational loan alone. There shall be no order as to costs. Consequently, connected 7/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025miscellaneous petition is closed.07.02.2025Neutral Citation: nogrsTo 1. The Secretary, Department of Financial Services Ministry of Finance, 4th Floor, Jeevan Deep Building Sansad Marg, New Delhi - 110 001.2. The District Collector, The District Collector Office, Fort Main Road, Salem - 636 001.3. The Managing Director, Canara Bank, No.112, J.C.Road, Banglore, Karnataka - 560 002.4. The Chief General Manager, Canara Bank, 563, Anna Salai, Teynampet, Chennai - 600 018.8/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 20255. The Assistant General Manager, Canara Bank, Sri Saradha Vidhya School Campus, Saradha College Road, Salem - 636 016.7. The Branch Manager, Canara Bank, Ayyothiyapattinam Branch, Ayyothiyapattinam, Salem - 636 101.9/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025D.BHARATHA CHAKRAVARTHY, J.grs W.P.No.2257 of 2025and W.M.P.No.2596 of 202510/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 202507.02.2025 11/11

W.P.No.2257 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 07.02.2025CORAM : THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHYW.P.No.2257 of 2025and W.M.P.No.2596 of 2025G.Srivarun.. Petitioner Versus1. The Secretary, Department of Financial Services Ministry of Finance, 4th Floor, Jeevan Deep Building Sansad Marg, New Delhi - 110 001.2. The District Collector, The District Collector Office, Fort Main Road, Salem - 636 001.3. The Managing Director, Canara Bank, No.112, J.C.Road, Banglore, Karnataka - 560 002.4. The Chief General Manager, Canara Bank,1/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025 563, Anna Salai, Teynampet, Chennai - 600 018.5. The Assistant General Manager, Canara Bank, Sri Saradha Vidhya School Campus, Saradha College Road, Salem - 636 016.7. The Branch Manager, Canara Bank, Ayyothiyapattinam Branch, Ayyothiyapattinam, Salem - 636 101... RespondentsPrayer : Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorarifed Mandamus to call for the entire records pertaining to the impugned order, dated 13.01.2025 issued by the 6th respondent and to quash the same and consequently, direct the 6th respondent to release/disburse the 5th and final insallment of the education loan amount of Rs.19,79,000/- (Rupees nineteen lakhs seventy nine thousand only) in respect of petitioner's education loan account No.162000289878 within time frame fixed by this Court.For Petitioner: Mr.T.KarunakaranFor Respondents: No appearance for R1: Mr.V.P.R.Elamparithi,2/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025 Additional Government Pleader, for R2: Mr.R.Jagadeesan, for Mr.K.V.Subramaniam Associates, for RR-3 to 7ORDERThis Writ Petition is filed for a Writ of Certiorarified Mandamus calling for the entire records relating to the order, dated 13.01.2025 issued by the sixth respondent and to quash the same and consequently, to direct the sixth respondent to release/disburse the fifth and final installments of the educational loan amount of Rs.19,79,000/- in respect of the petitioner's educational loan account bearing No.162000289878 within the time frame as fixed by this Court.2. The factual matrix, in which the Writ Petition arises, is that the petitioner has availed the educational loan. The total amount payable to the College as fees is said to be Rs.1,09,95,050/-, for which, the petitioner approached the respondent bank for the educational loan. The respondents 3/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025sanctioned a total sum of Rs.98,95,000/-. Every year, a sum of Rs.19,79,000/- has to be released by way of loan. The petitioner's parents properties were given as security and the petitioner's parents stood as surety. The petitioner is undergoing his M.B.B.S., course in a private medical college. For the first four years, the installments have already been released. Now, the petitioner is undergoing fifth year. For the fifth year alone, now the bank is not releasing the installments. The petitioner will be put to grave prejudice and undue hardship since the exam is supposed to take place in one or two days and the College is gracious enough to extend time till today. The petitioner's parents are finding it extremely difficult to arrange the money. Therefore, the petitioner is before this Court.3. The case of the petitioner is resisted by the respondent bank on the ground that the parents have also borrowed other loans. One of the other loans has become a Non Performing Asset. Therefore, by virtue of that, already, all the loans have been recalled and were declared as Non 4/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025Performing Assets and the demand notice under Section 13(2) of the SARFAESI Act has already been issued. When already, the demand notice has been issued to the self-same borrowers, the bank cannot be advancing further installments of the loan. The educational loan is also treated as a Non Performing Asset. Under the said circumstances, the learned Counsel submits that the bank is not in a position to further disburse the loan.4. In reply, Mr.T.Karunakaran, the learned Counsel for the petitioner, by taking this Court through the various transactions, would submit that this is a case where the petitioner's parents are genuine borrowers. They made their utmost sincere attempts to repay the amounts which are outstanding. As a matter of fact, in the recent past alone, they have made payments worth about Rs.2,90,96,478/-. Only less than a crore is balance. The value of the properties is much much more than what is outstanding. Therefore, the respondents are liable to release the next installment also.5/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 20255. I have considered the rival submissions made on either side and perused the material records of the case.6. At the outset, it has to be considered that nobody can compel any other person or for the matter, the bank also, to grant loan to them. There is no such a statutory right or a fundamental right in respect thereof. However, in respect of educational loan, the Court will interfere if the banks are arbitrarily denying loans to the petitioner. In this case, it can be seen that the petitioner's parents are dealing in crores and there are several loan accounts. When the bank is saying about the Non Performance of the other loan accounts and the entire loan accounts, being recalled and made as Non Performing Assets and when Section 13(2) notice was issued and the same is mentioned as a reason for denial of the last installment and recalling the entire loan as outstanding, this Court under Article 226 of the Constitution of India cannot go into further details and the nitty-gritties argued by the learned Counsel to find out whether each and every action of the bank is 6/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025correct or not. 7. Suffice it to mention that when plausible reason is given for non-grant of loan, a Writ of Mandamus cannot be issued directing the Canara Bank to further disburse the loan amount. Therefore, unfortunately, this Court could not aid the petitioner. The petitioner has to make his own arrangements to pay the last installment. The college authorities also shall consider the difficulty and extend the petitioner some time if possible. 8. Only with the said observations, this Writ Petition stands disposed of. This order does not decide any of the arguments which are raised with reference to the classification of Non Performing Assets or any of the grounds raised by the petitioner relating to the calculation or the actions of the bank which will be decided only in the appropriate forum. This is only in respect of the non-sanctioning of the last installments of the educational loan alone. There shall be no order as to costs. Consequently, connected 7/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025miscellaneous petition is closed.07.02.2025Neutral Citation: nogrsTo 1. The Secretary, Department of Financial Services Ministry of Finance, 4th Floor, Jeevan Deep Building Sansad Marg, New Delhi - 110 001.2. The District Collector, The District Collector Office, Fort Main Road, Salem - 636 001.3. The Managing Director, Canara Bank, No.112, J.C.Road, Banglore, Karnataka - 560 002.4. The Chief General Manager, Canara Bank, 563, Anna Salai, Teynampet, Chennai - 600 018.8/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 20255. The Assistant General Manager, Canara Bank, Sri Saradha Vidhya School Campus, Saradha College Road, Salem - 636 016.7. The Branch Manager, Canara Bank, Ayyothiyapattinam Branch, Ayyothiyapattinam, Salem - 636 101.9/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 2025D.BHARATHA CHAKRAVARTHY, J.grs W.P.No.2257 of 2025and W.M.P.No.2596 of 202510/11 https://www.mhc.tn.gov.in/judis W.P.No.2257 of 202507.02.2025 11/11