The High Court
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IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.25906 of 2022 (In the matter of an application under Articles 226 and 227 of the Constitution of India, 1950) Sayed Adil Ali …. Petitioner -versus- Reserve Bank of India and others …. Opposite Parties Advocates appeared in the case through Hybrid Mode: : For Petitioner Mrs. Sujata Jena, Adv. For Opposite Parties. : Mr. S.K.Ghose, Adv. (for O.P.No.4) CORAM: DR. JUSTICE S.K. PANIGRAHI DATE OF HEARING:-21.07.2023 DATE OF JUDGMENT: -24.08.2023 Dr. S.K. Panigrahi, J. 1. The Petitioner through this Writ Petition assails the conduct of the Opposite Parties specifically the Opposite Party No.3 in intentionally not considering him for selection under Kalinga Sikshya Sathi Yojana launched by Government of Odisha in April, 2016. Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 1 of 17 I. FACTUAL MATRIX OF THE CASE: 2. The petitioner had applied for the B-tech Course in several Universities and he was selected by the Centurion University of Technology and Management to pursue B-tech Engineering Course in Mechanical Engineering. The duration of the course is 4 years. The annual income of his father was Rs.1,80,000/- and in light of the said income, he applied to different banks for getting the education loan. 3. The petitioner had approached the Opp. Party No. 3, since 6 different Schemes are launched by the Punjab National Bank i.e. PNB Saraswati, PNB Pratibha & PNB Uddan. Furthermore, Govt. of Odisha has also launched Kalinga Sikshya Sathi Yojana for the student belonging to the economically backward category to give them an opportunity to pursue the technical courses. The said Scheme was launched in April 2016. As per the said Scheme there is a provision for subsidy for students. Thus, the Petitioner talked with the then Manager of Opp. Party No.4 to avail the loan and to put him under the KSSY Scheme, so as to enable him to clear up the loan amount within time. He was given assurance by the Opp. Party No. 4 that if he will take the education loan from the Branch, he will be enrolled under the KSSY Scheme. Accordingly, the Petitioner took the education loan amounting to Rs. 4,90,000/- in July, 2016. Signature Not Verified
Legal Reasoning
Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 2 of 17 4. After taking the loan, the Petitioner took admission in the Centurion University of Technology and Management. Thereafter, the Petitioner approached the Opp. Party No. 3 on 15.07.2017 requesting him to enroll him under the KSSY Scheme wherein only 1% interest has to be paid. He went to the Bank personally and submitted a letter and he was given assurance that steps are being taken to enroll him under the said Scheme. 5. Thereafter, in 2017 also the Petitioner approached the then manager i.e. Opp. Party No. 4 in order to know the outcome of his request and every time he was given assurance that steps have already been taken. After completion of the course, the Petitioner also sent the massage online on 26.10.2021 and 29.12.2020 to the then Branch Manager to know about the fate of his request to enroll him under KSSY Scheme. Instead of giving any reply about KSSY Scheme, the Petitioner was informed by the Branch Manager on 11.06.2021 regarding rescheduling of installment for repayment extending the time period. Thereafter, the Petitioner was informed by the Opp. Party No.4 that the repayment of his education loan will commence from 31.10.2021. 6. In the said letter, the rate of interest was fixed at 9.90%. On receipt of the said letter, the Petitioner sent a message on 28.10.2021 to the Opp. Party No.4 to know as to whether he is Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 3 of 17 entitled to get the benefit of KSSY Scheme. On receipt of the letter dated 26.10.2021 wherein the rate of interest was fixed at 9.90%, the Petitioner submitted an application on 29.10.2021 requesting the Opp. Party No. 4 to enroll him under KSSY Scheme in order to get the benefit of the education loan. 7. Soon thereafter he was detected with Tuberculosis and treated in the SCB Medical College and Hospital, Cuttack as a OPD patient from 03.09.2021 for about 6 months. After his recovery he approached the Opp. Party No.2 & 4 vide Letter dated 30.05.2022 to put him under the KSSY Scheme and in response to it he was informed that he is not eligible under KSSY Subsidy Scheme launched by the Govt. of Odisha in the year 2016 since he has taken education loan from the branch for 20 years. He was taken aback on getting this information and immediately approached the Opp. party No. 1 & 3 by sending a letter online on 09.07.2022 stating therein about his repeated request made to the-then Manager to enroll him under the KSSY Scheme and the assurance given to him. 8. On 16.09.2022, the Petitioner has been informed by the Opp. Party No. 4 that his account has been declared NPA on 30.08.2022 due to non-payment of installments and interest and his total due on the education loan account is Rs.6,97,703/- as on 31.08.2022 and his overdue on the account is Rs.29,926.56/-. In the said letter dated 26.10.2021 the Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 4 of 17 outstanding loan amount shown by the Opp. Party NO.4 was Rs.6,98,340/- and in the letter dated 28.01.2022, the amount was Rs.7,20,784/- whereas in September, 2022 the amount due has been stated is Rs.6,97,703/-. Being aggrieved, the petitioner has filed this writ petition. II. PETITIONER’S SUBMISSIONS: 9. Learned counsel for the Petitioner(s) earnestly made the following submissions in support of his contentions: 10. The Punjab National Bank launched different Schemes for education loan for the students. Those are PNB Saraswati, PNB Pratibha, PNB Udaan, PNB Kaushal, PNB Honhaar & PNB Pravasi Shiksha Loan. The tenure of PNB Saraswati, PNB Uddan & PNB Pratibha are 15 years. Similarly, PNB Kaushal is only meant for the students who will pursue courses offered by Industrial Training Institute i.e. ITI or in a recognized school and the tenure is up to 7 years if the loan amount is above 1 Lakh and under PNB Kaushal Scheme, the loan amount is up to 50,000/- and the tenure is three years with the interest rate @ 8.65%. PNB Honhaar is meant for the student to pursue a Degree, Diploma, or Skill Development in Delhi and have completed Class X & XII. The tenure is for 15 years and the interest of rate is 9.15%. 11. Under PNB Saraswati Scheme the loan amount varied from 7.50 lakhs and the interest rate is up to 9.9% and the tenure is Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 5 of 17 15 years. Under PNB Pratibha Scheme the interest rate is up to 8.40% and the tenure is 15 years and the same is meant for the courses in different institutions mentioned in the PNB website. Under PNB Udaan Scheme the interest rate was up to 9.90% and the loan amount is up to 7.50 Lakhs and also above Rs.7.50 Lakhs and the tenure is 15 years. 12. Due to the poor economic condition of the petitioner’s father, he decided to take education loan for the Petitioner and accordingly the Opp. Party bank was approached. They have also shown their interest to provide education loan to the Petitioner. After taking the loan, the Petitioner could know that Govt. of Odisha in order to encourage poor and meritorious students of Odisha aspiring for higher studies in the field of Management, Integrated Law, Medicine, Engineering has formulated an interest subsidy Scheme in the nomenclature "Kalinga Sikshya Sathi Yojana" for implementation from financial year 2016-17. 13. Accordingly, Office Memorandum No. 28952 dtd. 6.10.2016 was issued by the Govt. of Odisha Dept. of Higher Education. In the said office memorandum, it was made clear that as per the resolution the students who have availed fresh bank loan on or after 1.4.2016 under the Govt. of India Scheme shall be eligible for getting the benefit. It is also made clear in the said Memorandum that the Scheme shall be adopted by all the Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 6 of 17 Schedule Banks in Odisha as per the Scheme of the Reserve Bank of India. Thus, Petitioner approached the Opp. Party to enlist him under the said Scheme, so that he will be benefited specifically when it is meant for the students of the economically poor students. 14. Govt. of Odisha Higher Education Dept. has also issued corrigendum in modification of the KSSY Scheme on 4.8.2017. Besides, on 16.10.2017 the Govt. of Odisha issued a letter to the State Level Bankers Committee clarifying that KSSY Scheme will apply to all courses pursued in all Education Institution for which the Govt. of India interest subvention is applicable as per CSIS Scheme to provide interest subsidy. On 28.08.2018, the Department of Higher Education Govt. of Odisha issued another corrigendum in modifying the interest subvention Scheme KSSY in respect of education loans and in the said corrigendum it was made clear that Scheme is applicable to the student availing education loan from Schedule Banks upon the loan amount of Rs.10 lakhs for the course of management, Integrated Law or Engineering or Medical in all Educational Institution and the repayment period shall not exceed 15 years including the moratorium period. 15. The Govt. of India has issued the CSIS Scheme i.e. Central Scheme to provide interest subsidy on education loan to the Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 7 of 17 students belonging to the economically weaker section. The students who are interested to pursue the professional technical Course, Medical Courses, Nursing Courses and Law etc. and the student whose parent’s income is up-to 4.5. Lakhs per year are eligible to get the benefit of the said Scheme. 16. In the meantime, the Petitioner has completed his Mechanical Engineering Course from Centurion University of Technology and Management Bhubaneswar, Odisha securing highest CGPA in bachelor of technology and working in "Infrastructure Technology" a software Company at Bhubaneswar, as a trainee. But he was in deep trouble because of the conduct of the Opp. Parties in granting the loan the term of which will continue up to 20 years and he will be forced to pay the interest at the rate of 9.90% although he approached the Opp. Party No. 2 to 4 to enroll him under KSSY Scheme. This situation arises due to the fault of the Opp. Parties specifically Opp. party No.4 which is evident from the letters exchanged between the Petitioner and the Opp. Party. 17. In none of the Scheme of the PNB, also, the tenure of Education Loan is more than 15 years. It seems the-then Manager who was at the helm of the affairs during 2016 has intentionally not done anything to put the Petitioner under KSSY Scheme or any other Scheme launched by the Punjab Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 8 of 17 National bank and the Petitioner has been put to suffer for the latches of the Opp. Party No.4. At present, on being approached, the Opp. Parties No. 2 to 4 are insisting the Petitioner to pay the installments as per the sanction of his loan amount and they are not coming to the rescue of the Petitioner. 18. Admittedly the Opp. Party is a Scheduled Bank. As per the Scheme launched by the Govt. of India and the Govt. of Odisha, he is entitled to get the Education Loan interest subsidy under different Scheme. As a matter of fact, the Petitioner belongs to the Economically Weaker Section but he has been trapped by the Opp. Party and in the process he and his family have been put to harassment. All his attempt to take the benefit of the KSSY Scheme has failed due to the negligent action of the Opp. Party NO.4. Therefore, the Opp. Party No 2 & 3 may be directed to put the then Opp. Party NO. 4 to task and recover the extra amount of interest from him/her since he is at fault and the Petitioner should not suffer for his latches as he defrauded with the Petitioner. III. SUBMISSIONS OF OPPOSITE PARTY NO.4: 19. Per contra, learned counsel for the Opp. Party No.4 intently made the following submissions: 20. The Petitioner has applied for Education Loan from the Opposite Party No-4 on 05.07.2016 for his B-Tech Education Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 9 of 17 purpose under the Opposite Party Bank’s own Education Loan Scheme. The Petitioner himself has applied for the said Education Loan for a term of 20 years, which includes the Course Period of 4 years, Moratorium Period of 1 year and the Repayment Period on 15 years respectively from the date of availing the said Loan. The said Petitioner has to repay the entire loan amount with interest to the Opposite Party Bank in 180 monthly installments i.e. 15 years after completion of the said Course Period and Moratorium Period respectively i.e. with effect from 31.07.2021 and the Petitioner has also executed the Education Loan Agreement under the said terms and conditions for the Education Loan. 21. At no point of time, the said Petitioner has applied for and /or approached the Opposite Party Bank for sanctioning the said Education Loan under the "Kalinga Sikhya Sathi Yojana" Scheme of Government of Orissa. In this context it is also further humbly submitted that in order to get the benefit under the "Kalinga Sikhya Sathi Yojana” Scheme of Government of Orissa not only does the Petitioner have to apply for an Education loan under the said "Kalinga Sikhya Sathi Yojana’ Scheme but also has to agree to repay the said Outstanding loan amount with interest within 15 years from the date of availing the said Education Loan including the Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 10 of 17 Course Period, Moratorium Period and Repayment Period respectively. 22. Since neither the said Petitioner has applied for the Education Loan under the said "Kalinga Sikhya Sathi Yojana’ Scheme nor agreed to repay the said Outstanding loan amount with interest within 15 years from the date of availing the said loan i.e. 05.07.2016, which includes the Course Period, Moratorium Period and Repayment Period respectively, his case could not be considered under the said "Kalinga Sikhya Sathi Yojana" Scheme. 23. After many years of availing the said Education Loan from the Opposite Party Bank, the Petitioner has requested the Opposite Party Bank to convert the said Education Loan under the "Kalinga Sikhya Sathi Yojana" Scheme in the year 2021 but as the said Petitioner himself has applied for a loan under the Opposite Party Bank’s own Education Loan Scheme, a loan agreement was executed for the same and the Petitioner availed the said Education Loan for a term of 20 years which includes the Course Period, Moratorium Period and Repayment Period respectively, and is not coming within the purview of "Kalinga Sikhya Sathi Yojana" Scheme. The case of the Petitioner could not be considered under the said "Kalinga Sikhya Sathi Yojana Scheme and the same has also Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 11 of 17 been intimated to the Petitioner by the Opposite Party No-4 by mail on 09.06.2022. 24. Though the said Petitioner has availed the Education Loan from the Opposite Party Bank with a condition that he will start repaying the loan installments with effect from 31.07.2021 i.e. after 5 years from the date of availing the said Education Loan but as he failed and even neglected to repay the said loan installments regularly to the Opposite Party Bank in time as per the terms and conditions of the said Loan Agreement, the said Education Loan account of the Petitioner has been Classified as NPA with effect from 27.01.2022. Even though thereafter the said Petitioner did not deposit any amount in the said Education Loan account but since an amount of Rs.50,741/- only was credited in the said Education Loan account of the Petitioner on 19.03.2022, received from the Government of India towards the Central Sector Interest Subsidy (In short CSIS) Scheme, the said Education Loan account of the Petitioner has been upgraded to Performing Asset on 20.03.2022 but again due to non- repayment of the loan installments by the said Petitioner in time as before, the said Education Loan account of the Petitioner has been again Classified as NPA with effect from 30.08.2022 but thereafter said loan account has not yet been regularised. Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 12 of 17 25. Due to non- repayment of the loan installments in time as per the loan agreement, the said loan account has not only been Classified as NPA but also the Outstanding loan amount has been raised to Rs.7,08,310.79 (Rupees Seven lakh eight thousand three hundred ten and paise seventy nine) only as on 31.12.2022. The said unfortunate situation has occurred only because the Petitioner has failed to repay the loan installments in time as per the Loan agreement to the Opposite Party Bank. 26. Not only the Petitioner has got the Subsidy of Rs.50,741/- only on 19.03.2022 but also got another CSIS subsidy of Rs. 12,261.21 only on 07.12.2022 respectively. By this process the Petitioner has got a total subsidy amount of Rs.63,002. 21 (Rupees Sixty three thousand two and paise twenty one) only in his Education Loan account. 27. Since the case of the Petitioner is not coming within the purview of the "Kalinga Sikhya Sathi Yojana" Scheme as per the guidelines of the Govt. of Orissa because he has availed the loan for 20 years inclusive of Course period, Moratorium period and repayment period respectively, since the Petitioner has failed to repay the loan amount with interest to the Opposite Party Bank as per the terms and Conditions of the Education Loan agreement, the said Education Loan account has been Classified as NPA on 27.01.2022. Even though the Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 13 of 17 Petitioner did not deposit any amount in the said Education Loan account but since an amount of Rs.50741/- only was credited in the said Education Loan account of the Petitioner on 19.03.2022, received from Government of India towards the CSIS Scheme of Government of India, the said Education Loan account of the Petitioner has been upgraded to Performing Asset on 20.03.2022 but again due to non- repayment of the loan installments by the said Petitioner in time as before, the said Education Loan account of the Petitioner has been again Classified as NPA with effect from 30.08.2022 but thereafter said loan account has not yet been regularised. Since for the aforesaid unfortunate situation, the Petitioner himself is solely responsible, the aforesaid Writ Petition is liable to be dismissed with Cost. IV. COURT’S REASONING AND ANALYSIS:
Legal Reasoning
28. Learned Counsel for the Opposite Party has clarified that the said Petitioner has neither applied for nor approached the Opposite Party for sanctioning the said Education Loan under the "Kalinga Sikhya Sathi Yojana" Scheme of Government of Orissa. It was also further admitted that in order to get the benefit under the "Kalinga Sikhya Sathi Yojana” Scheme of Government of Orissa not only the Petitioner has to apply for Education loan under the said "Kalinga Sikhya Sathi Yojana’ Scheme but he has to agree to repay the said Outstanding loan Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 14 of 17 amount with interest within 15 years from the date of availing the said Education Loan including the Course Period, Moratorium Period and Repayment Period respectively. 29. Since neither the said Petitioner has applied for the Education Loan under the said "Kalinga Sikhya Sathi Yojana’ Scheme nor agreed to repay the said Outstanding loan amount with interest within 15 years from the date of availing the said loan i.e. 05.07.2016, which includes the Course Period, Moratorium Period and Repayment Period respectively, his case could not be considered under the said "Kalinga Sikhya Sathi Yojana" Scheme. 30. After many years of availing the said Education Loan from the Opposite Party Bank, the Petitioner has requested the Opposite Party Bank to convert the said Education Loan under the "Kalinga Sikhya Sathi Yojana" Scheme in the year 2021 but as the said Petitioner himself has applied for the loan under the Opposite Party Bank’s own Education Loan Scheme, executed the loan agreement for the same and availed the said Education Loan for a term of 20 years which includes the Course Period, Moratorium Period and Repayment Period respectively, which is not coming within the purview of "Kalinga Sikhya Sathi Yojana" Scheme, the case of the Petitioner could not be considered under the said "Kalinga Sikhya Sathi Yojana Scheme and the same has also Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 15 of 17 been intimated to the Petitioner by the Opposite Party No-4 by mail on 09.06.2022. 31. Though the said Petitioner has availed the Education Loan from the Opposite Party Bank with a condition that he will start repaying the loan installments with effect from 31.07.2021 i.e. after 5 years from the date of availing the said Education Loan but as he failed and even neglected to repay the said loan installments regularly to the Opposite Party Bank in time as per the terms and conditions of the said Loan Agreement, the said Education Loan account of the Petitioner has been Classified as NPA with effect from 27.01.2022. Even though, thereafter, the said Petitioner did not deposit any amount in the said Education Loan account but since an amount of Rs.50,741/- only was credited in the said Education Loan account of the Petitioner on 19.03.2022, which was received from the Government of India towards the Central Sector Interest Subsidy (In short CSIS) Scheme, the said Education Loan account of the Petitioner has been upgraded to Performing Asset on 20.03.2022 but again due to non- repayment of the loan installments by the said Petitioner in time as before, the said Education Loan account of the Petitioner has been again Classified as NPA with effect from 30.08.2022 but thereafter said loan account has not yet been regularised. Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 16 of 17 32. From the conspectus of factual matrix, this court is unable to accede to the submission of the petitioner. The rules of natural justice and procedural rules cannot be given go by in such a light and casual manner, rather they call for due compliance. 33. In light of the aforesaid discussion and having regard to the present position of law, this Court is not inclined to accede to the prayer of the Petitioner. 34. This Writ Petition is, therefore, dismissed. No order as to costs. Judge ( Dr. S.K. Panigrahi ) Orissa High Court, Cuttack, Dated the 24th August, 2023/ Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Designation: Assistant Registrar-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Sep-2023 19:18:56 Page 17 of 17