High Court · 2025

W.P.No.29223 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 09.10.2025CORAMTHE HONOURABLE MR.JUSTICE M.DHANDAPANIW.P.No.29223 of 2025AndW.M.P.Nos.33780 and 39360 of 2025U.Santhana Lakshmi ... PetitionerVs.1 THE UNION OF INDIA REP. BY ITS SECRETARY TO GOVERNMENT GOVERNMENT OF INDIA, MINISTRY OF EDUCATION, SHASTHRI BHAVAN, NEW DELHI 110 001.2 THE MANAGING DIRECTOR/ CHIEF EXECUTIVE OFFICER UCO BANK, HEAD OFFICE, NO.10 BTM SARANI, KOLKATA 700 001.3 THE ZONAL OFFICER, UCO BANK, NEW NO.328, OLD NO.169 (II FLOOR) THAMBU CHETTY STREET, PARRYS, CHENNAI 600 001.4 THE BRANCH MANAGER, UCO BANK, KODUNGAIYUR BRANCH, NO.57, GROUND FLOOR, MEENAMBAL SALAI, KRISHNAMURTHY NAGAR, 1/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025 CHENNAI 600 118.5 THE PRINCIPAL NODAL OFFICER, UCO BANK, NO.10, BTM SARANI (II FLOOR), KOLKATA 700 001.... RespondentsPrayer:Petition filed under Article 226 of the Constitution of India to issue a Writ of Mandamus directing the respondents 2 to 4 to appropriately apply a subsidy scheme to waive the interest for the academic period of the petitioner from 2020-24 and for the moratorium period from July 2024 to June 2025 for the Education Loan Account No.25190610158708 sanctioned for a sum of Rs.4,00,000/- as claimed in the petitioner's representation dated 30.06.2025 in a time bound period and for the other reliefs.For Petitioner : Mr.K.MohanamuraliFor Respondents: Mr.S.Nelson for R1 R2, R3 and R5 – No Appearance Mr.R.Chandramohan for R4 O R D E RThis writ petition has been filed seeking issuance of Writ of Mandamus directing the respondents 2 to 4 to appropriately apply a subsidy scheme to waive the interest for the academic period of the 2/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025petitioner from 2020-24 and for the moratorium period from July 2024 to June 2025 for the Education Loan Account No.25190610158708 sanctioned for a sum of Rs.4,00,000/- as claimed in the petitioner's representation dated 30.06.2025 in a time bound period.2.The learned counsel appearing for the petitioner submitted that the petitioner belongs to Most Backward Community and she is the first graduate in the family. The petitioner after completing XII joined in Saveetha School of Law to pursue her graduation in Law B.A., LL.B.(Hons.) for the period 2019 – 2024. The petitioner approached the fourth respondent along with her parents to avail education loan and after following the due procedures and submission of educational qualification certificates, income certificate of the petitioner's parents, aadhar card, family card etc., the fourth respondent sanctioned a sum of Rs.4 Lakhs on 05.12.2020. The tuition fees for 2020 – 2023 was sanctioned by the fourth respondent to the petitioner's savings account operated with the Bank and the tuition fees for the academic year 2023 – 2024 was directly paid to the account of the petitioner's college. At the time of availment of loan, all the conditions for sanction of educational loan under the subsidy scheme was duly complied and the petitioner is entitled for the benefit 3/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025of waiver of interest during the period of education from 2020 – 2024 (II Year to V Year). The petitioner completed her graduation in 2024 and successfully enrolled herself as Advocate before the Bar Council of Tamil Nadu and Puducherry on 23.09.2024. 3.The learned counsel appearing for the petitioner further submitted that the petitioner has to repay the loan amount from July 2025 onwards. When the petitioner approached the fourth respondent, the petitioner was informed that her educational loan was not linked with the Central Sector Interest Subsidy Scheme. The petitioner sent detailed representation dated 30.06.2025 to the respondents 2 to 5 seeking them to apply the subsidy scheme to waive the interest for the academic period of the petitioner's education from 2020-24 and to give suitable advice for the repayment schedule for the sum of Rs.4 Lakhs availed in the education loan, however, there is no response.4.The learned counsel appearing for the fourth respondent submitted that the petitioner has not submitted the income certificate at the time of availing the educational loan and only submitted PAN card, latest passport size photograph (2 copies), voter ID card and 4/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025school leaving certificate to the fourth respondent for processing regular sanction. Other than the above documents, the income certificate dated 25.12.2024 was submitted on 27.12.2024 and subsequently, the petitioner enclosed the income certificate dated 17.05.2019 and the said income certificate was not submitted by the petitioner at the time of availing the loan as per the process note for sanction dated 28.11.2020 nor to the officer of the fourth respondent even on 26.10.2022, but was submitted belatedly by the petitioner, therefore the same cannot be filed through online Bank's portal. The fourth respondent on receipt of the above documents on 27.12.2024 applied the same and hence, the petitioner will receive the interest subsidy for the moratorium period only from 31.01.2025 to 31.07.2025.5.Heard the arguments advanced on either side and perused the materials available on record.6.The petitioner approached the fourth respondent along with her parents to avail education loan and after following the due procedures and submission of necessary documents, the fourth respondent sanctioned a sum of Rs.4 Lakhs on 05.12.2020. The 5/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025tuition fees for 2020 – 2023 was sanctioned by the fourth respondent to the petitioner's savings account operated with the Bank and the tuition fees for the academic year 2023 – 2024 was directly paid to the account of the petitioner's college. 7.The grievance of the petitioner is that at the time of availment of loan, all the conditions for sanction of educational loan under the subsidy scheme was duly complied and the petitioner is entitled for the benefit of waiver of interest during the period of education from 2020 – 2024 (II Year to V Year), however, the fourth respondent contends that the petitioner will receive the interest subsidy for the moratorium period only from 31.01.2025 to 31.07.2025. 8.Perusal of records disclose that the income certificate was submitted by the petitioner along with loan application. If it is so, it is the duty cast upon the fourth respondent to approach the first respondent for claiming interest subsidy. Though in the counter affidavit filed by the fourth respondent it is stated that 'the income certificate dated 25.12.2024 was submitted only on 27.12.2024 with a hand written letter to the 4th respondent, the petitioner “I was not informed about the eligibility or the procedure for applying for the 6/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025subsidy scheme at the time of loan disbursement”, subsequently by another letter dated 30.06.2024 the petitioner had enclosed the income certificate dated 17.05.2019, and the income certificate was not submitted by the petitioner at the time of availing the loan as per the process note for sanction dated 28.11.2020 not to the officer of the 4th respondent even 26.10.2022, but was submitted belatedly by the petitioner, therefore the same cannot be filed through online Bank's portal at this stage', the same is stated only for the purpose of denying interest subsidy to the petitioner.9.In view of the above, this Court directs the fourth respondent to pay interest subsidy from 17.05.2020 till date. After deducting interest subsidy, the petitioner is directed to pay the balance loan amount to the fourth respondent.10.The writ petition is allowed with the above direction. No costs. Consequently, connected miscellaneous petitions are closed. 09.10.2025priIndex: Yes/ No Speaking Order: Yes/ No 7/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025NCC: Yes/ NoTo1 THE UNION OF INDIA REP. BY ITS SECRETARY TO GOVERNMENT GOVERNMENT OF INDIA, MINISTRY OF EDUCATION, SHASTHRI BHAVAN, NEW DELHI 110 001.2 THE MANAGING DIRECTOR/ CHIEF EXECUTIVE OFFICER UCO BANK, HEAD OFFICE, NO.10 BTM SARANI, KOLKATA 700 001.3 THE ZONAL OFFICER, UCO BANK, NEW NO.328, OLD NO.169 (II FLOOR) THAMBU CHETTY STREET, PARRYS, CHENNAI 600 001.4 THE BRANCH MANAGER, UCO BANK, KODUNGAIYUR BRANCH, NO.57, GROUND FLOOR, MEENAMBAL SALAI, KRISHNAMURTHY NAGAR, CHENNAI 600 118.5 THE PRINCIPAL NODAL OFFICER, UCO BANK, NO.10, BTM SARANI (II FLOOR), KOLKATA 700 001.8/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 2025M.DHANDAPANI,J.priW.P.No.29223 of 2025AndW.M.P.Nos.33780 and 39360 of 20259/9 https://www.mhc.tn.gov.in/judis W.P.No.29223 of 202509.10.202510/9