IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT:

THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

TUESDAY, THE 21ST DAY OF NOVEMBER 2017/30TH KARTHIKA, 1939

W.P(C).No.26732 of 2017 (N)

-------------------------------------
PETITIONER(S):-
---------------
1. JOEL S. JOY, AGED 18, S/O. JOY JOSEPH,
THULUSSERIL HOUSE, MUTTUCHIRA PO.,
KOTTAYAMDISTRICT, PIN-686613,
(APPLICANT), II SEMESTER B, TECH,
(COMPUTER SCIENCE AND ENGINEERING)
STUDENT,MANGALAM COLLEGE OF ENGINEERING,
MANGALAM HILLS PO, ETTUMANOOR, KOTTAYAM, PIN-686631

2. JOY JOSEPH, AGED 55 YEARS, S/O.JOSEPH,

THULUSSERIL HOUSE, MUTTUCHIRA P.O.,
KOTTAYAM DISTRICT PIN-686613 (CO-APPLICANT).

BY ADVS.SRI.B.RAMACHANDRAN
SMT.C.A.SEENA

RESPONDENT(S):-
---------------
1. BANK OF BARODA,
KURUPPUNTHARA BRANCH,
MANJOOR PO., KURUPPUNTHARA, KOTTAYAM DISTRICT, PIN-686603,
REPRESENTED BY ITS BRANCH MANAGER.

2. THE DEPUTY GENERAL MANAGER,

REGIONAL OFFICE, BANK OF BARODA,
VASUDEV BUILDING, T.D.ROAD, ERNAKULAM PIN-682011.

3. MANAGING DIRECTOR & C.E.O., BANK OF BARODA,

C-26, G-BLOCK, BANDRA, KURLA COMPLEX,
BANDRA (EAST), EAST, MUMBAI, PIN-400051,

4. THE DEPUTY GENERAL MANAGER (CHNZ),

BANK OF BARODA, CHENNAI ZONAL OFFICE,
BARODA PRIDE, NO.41, IIND FLOOR,
LUZ CURCH ROAD, MYLAPOORE, CHENNAI, PIN-600004.

ADDITIONAL 5TH RESPONDENT IMPLEADED:

------------------------------------
ADDL.R5. MANGALAM COLLEGE OF ENGINEERING, ETTUMANOOR,
KOTTAYAM - 686 631.

ADDITIONAL 5TH RESPONDENT IS IMPLEADED AS PER ORDER

DATED 18.08.2017 IN I.A.NO.13334 OF 2017.

R1 BY ADV. SRI.K.M.ANEESH
R1 BY ADV. SRI.K.SANTHOSH KUMAR (KALIYANAM)
R1 BY ADV. SRI.ADARSH KUMAR
R1 BY ADV. SRI.BIJU VARGHESE ABRAHAM
R1 BY ADV. SRI.DILEEP CHANDRAN

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON

21-11-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P(C).No.26732 of 2017 (N)
----------------------------

APPENDIX
PETITIONER(S)' EXHIBITS:-
-------------------------

EXHIBIT P1: TRUE COPYOF THE CBSE, SECONDARY SCHOOL EXAMINATION

(10TH) SESSION 2012-14) GRADE SHEET CUM CERTIFICATE OF
PERFORMANCE WITH ROLL NO.4172476 IN THE NAME OF THE
1ST PETITIONER, DATED 19.05.2014.

EXHIBIT P2: TRUE COPY OF THE CBSE, SENIOR SCHOOL CERTIFICATE

EXAMINATION (+2) 2016 MARKS STATEMENT WITH ROLL
NO.4810224 IN THE NAME OF THE 1ST PETITIONER,
DATED 21.05.2016

EXHIBIT P2(A): TRUE COPY OF THE CBSE,SENIOR SCHOOL CERTIFICATE

EXAMINATION (+2) 2016 CERTIFICATE WITH ROLL NO.4810224
IN THE NAME OF THE 1ST PETITIONER, DATED 21.05.2016.

EXHIBIT P3: TRUE COPY OF THE 6TH PAGE OF THE MALAYALA MANORAMA
NEWSPAPER DATED 19.03.2016 PUBLISHING THE NEW RELATING
TO THE CBSE MATHEMATICS EXAMIATION 2016.

EXHIBIT P3(A): TRUE COPY OF THE 6TH PAGE OF THE MALAYALA MANORAMA
NEWSPAPER DATED 15.03.2016 PUBLISHING THE NEWS RELATING
TO THE CBSE MATHEMATICS EXAMIATION 2016.

EXHIBIT P 3(B: TRUE COPY OF THE 10TH PAGE OF THE MALAYALA MANORAMA
NEWSPAPER DATED 16.03.2016 PUBLISHING THE NEWS RELATING
TO THE CBSE MATHEMATICS EXAMIATION 2016.

EXHIBIT P3(C): TRUE COPY OF THE 10TH PAGE OF THE MALAYALA MANORAMA
NEWSPAPER DATED 17/03/2016 PUBLISHING THE NEWS RELATING
TO THE CBSE MATHEMATICS EXAMIATION 2016.

EXHIBIT P3(D): TRUE COPY OF THE 6TH PAGE OF THE MALAYALA MANORAMA
NEWSPAPER DATED 21.03.2016 PUBLISHING THE NEWS RELATING
TO THE CBSE MATHEMATICS EXAMIATION 2016.

EXHIBIT P4: TRUE COPY OF THE COLLEGE BROCHURE DURING 2016 DATED NIL.

EXHIBIT P4(A): TRUE COPY OF THE COLLEGE BROCHURE DURING 2017, AFTER
ACCREDITATION OF THE NAAC DATED NIL.

EXHIBIT P5: TRUE COPIES OF THEDOCUMENT SREGARDING APPROVAL OF THE

COLLEGE BY ALL INDIA COUNCIL FOR TECHNICAL EDUCATION
(AICTE), FILE NO.SOUTH/WEST 2814409127/2016/EOA/
CORRIGENDUM-1 DATED 11.05.2016.

EXHIBIT P6: TRUE COPY OF THE AFFILIATION OF THE COLLEGE TO APJ

ABDUL KALAM TECHNOLOGICAL UNIVERSITY (KTU)
NO.KTU/A 456/2015 DATED 14.05.2016.

EXHIBIT P7: TRUE COPY OF THE FEES STRUCTURE ISSUED BY THE MANGALAM
COLLEGE OF ENGINEERING NO.MLMCE/FS /BTECH/2016/05
DATED 25.08.2016 FOR RS.5,02.500/-.

EXHIBIT P8: TRUE COPYOF THE LOAN APPLICATION DATED 06.09.2016 WITH
APPLICATION ID 63197 OF 2016.
W.P(C).No.26732 of 2017 (N) - 2 -

EXHIBIT P9: TRUE COPY OF THE LOAN APPLICATION TO THE CANARA BANK,
KADUTHURUTHY BRANCH DATED 06.9.2016.

EXHIBIT P10: TRUE COPY OF THE LOAN APPLICATION TO THE INDIAN BANK,
KADUTHURUTHY BRANCH DATED 06.09.2016.

EXHIBIT P11: TRUE COPY OF THE RATION CARD NO.1525041816 ISSUE DBY
THE GOVERNMENT OF KERALA IN WHICH THE PETITIONER IS THE
APPLICANT AND CO-APPLICANT DATED 24.12.2008.

EXHIBIT P12: TRUE COPY OF THE SUBMITTED GUARANTOR FORM DATED NIL IN
THE NAME OF MR.JOBIN C. THARIAN.

EXHIBIT P13: TRUE COPY OF THE AWARD OF THE HONURABLE LABOUR COURT,
ERNAKULAM IN I.D NO.3/2011 DATED 17.12.2012.

EXHIBIT P14: TRUE COPY OF THE APPLICATION HISTORY FOR APPLICATION

ID 63197 OF THE VIDHYA LAKSHMI PORTAL DATED 26.03.2017.

EXHIBIT P15: TRUE COPY OF THE GRIEVANCE HISTORY CHAT HISTROY FOR
GRIEVANCE I.D 63197 DATED 24.2.2017.

EXHIBIT P16: TRUE COPY OF THE E-MAIL COMPLAINT DATED 20.02.2017.

EXHIBIT P17: TRUE COPY OF THE E-MAIL COMPLAINT DATED 24.02.2017

TO THE 3RD RESPONDENT, THE MANAGING DIRECTOR & CEO
OF THE 1ST RESPONDENT BANK.

EXHIBIT P18: TRUE COPY OF THE ORDER OF THE RESERVE BANK OF INDIA
NO.RBI/2012-13/291/RPCD.MSME&
NFS.BC.NO.46/06/12.05.2012-3 DATED 09.11.2012.

EXHIBIT P19: TRUECOPYOF PRINT OUT OF THE GUIDELINES OF THE INDIAN

BANK ASSOCIATION REGARDING EDUCATIONAL LOAN SCHEME.

EXHIBIT P20: TRUE COPY OF THE RESERVE BANK OF INDIA NOTIFICATION

DATED 28.04.2001.

EXHIBIT P21: TRUE COPYOF THE LETTER FROM THE DEPUTY GENERAL MANAGER
OF THE 1ST RESPONDENT BANK OF BARODA, ZONAL OFFICE,
CHENNAI IN HIS LETTER NO.CHNZ OPS MK-06/17
DATED 12.06.2017.

EXHIBIT P22: TRUE COPYOF THE LETTER FROM THE 1ST RESPONDENT BANK
NO.BOB/KURUPP/OMBUDSMA/127 DATED 05.06.2017

EXHIBIT P23: TRUE COPY OF THE PRINTOUT OF THE B TECH S2 EXAMINATION

2016-17(S2 RESULT) WITH HIS REGISTER NO.MLM 16CS070 OF
1ST PETITIONER DATED NIL.

EXHIBIT P23(A): TRUE COPY OF THE HALL TICKET WITH HIS REGISTER
NO.MLM 16CS07 OF 1ST PETITIONER DATED 22.05.2017.

EXHIBIT P23(B): TRUE COPY OF THE PRINTOUT OF CHART OF GRADING AS PER

THE RECENT RECOMMENDATION OF THEUGC DATED 28TH
FEBRUARY, 2015.

EXHIBIT P24: TRUE COPY OF THE COMPLAINT TO THE HONURABLE BANKING

OMBUDSMAN DATED 24.03.2017.
W.P(C).No.26732 of 2017 (N) - 3 -

EXHIBIT P25: TRUE COPYOF THE LETTER FROM THE HONOURABLE BANKING
OMBUDSMAN NO.OBO(T)NO.7211/CTS/002947/2016-17
DATED 28.06.2017.

EXHIBIT P26: TRUE COPY OF THE ORDER IN WPC NO.27948 OF 2013

DATED 07.04.2014.

RESPONDENT(S)' EXHIBITS/ANNEXURES:-
-------------------------------------

ANNEXURE R1(a) TRUE COPY OF THE RELEVANT PORTION OF THE CIRCULAR.

vku/- [ true copy ]

 K. Vinod Chandran, J
---------------------------------------
W.P.(C).No.26732 of 2017-N
---------------------------------------
Dated this the 21st day of November, 2017

JUDGMENT

The petitioners are concerned with the rejection of an

education loan by the 1st respondent-Bank.

2. The 1st petitioner is the son and the 2nd petitioner is the

father. The 1st petitioner qualified the Secondary School Examination,

as evidenced by Exhibit P1 and the Senior School Certificate

Examination, as evidenced by Exhibit P2 from the Central Board of

Secondary Education [for brevity “CBSE”]. The petitioner got admitted

to the additional 5th respondent-College in the Management Quota.

The petitioners applied for a Bank loan through online and the 1st

respondent processed the application. It is the submission of the

learned Counsel for the petitioners that the Bank rejected the

application contending that the petitioners were not residing within the

area of operation of the 1st respondent.

3. The respondent-Bank refutes the aforesaid contention

of the petitioners and refers to the rejection as seen from Exhibit P21.
WP(C) No.26732 of 2017 -2-

Exhibit P21 rejected it for the following reasons:-

“a. The student's academic track record does not satisfy

the Bank's guidelines for sanction of education loan.

b. The reputation of the college and employability of the

student also did not give comfort to the Bank for
considering the loan application favourably”.

The contention of the learned Counsel for the respondent-Bank is

that it is for the Bank to decide as to whether the student can be

granted the loan especially since the loan is not sanctioned on a

collateral security and it is the competency of the student to qualify in

the examinations and the employability of the student which are

relevant. The learned Standing Counsel also relies on a Division

Bench judgment of this Court, reported in Arya v. Reserve Bank of

India [2015 (4) KLT 478].

4. Specific reference is made to the mark-list of the 1st

petitioner, which, according to the Bank, does not instill confidence to

grant a financial facility of this extent. The Division Bench agreed with

the decision of a Division Bench of the Madras High Court reported in

A.Kasinathan v. Branch Manager, Canara Bank, Town Hall Road,

Madurai (Laws (Mad)(-2012-4-52), in which it was held so in

WP(C) No.26732 of 2017 -3-

paragraphs 10 and 12:

"10. No inherent right to educational loan :- From the

Scheme of Article 21A of the Constitution, it is the primary
obligation of the State to provide free and compulsory
education to all children of the age of 6-14 years and in the
recent judgment dated 12.4.2012, the Supreme Court
upheld the constitutional validity of right of children to free
and compulsory education under Right to Education Act,
2009 which provides for free and compulsory education to
children between age of 6 and 14 years and mandates
government/aided/non-minority and unaided schools to
reserve 25% of the students for these children. There is no
such fundamental right to higher education. Of course,
under Article 41, the State, shall within its economic
capacity and development, make effective provision for
securing the right to education. In terms of Article 21A and
Article 41, while there is a right to education, there is no
inherent right to educational loans.

xxx xxx xxx

12. As is well known, while lending loan, the main

concern of the Bank is safeguarding the amount which
was sanctioned and advanced and chance of getting the
money back with interest. In order to ensure prompt
repayment of the educational loan, Bank is emphasizing
the future prospects of the students, employment potential.
For getting jobs/ employment in different parts of the
country/abroad, one of the criteria is academic
performance and there is nothing wrong for the Banks in
stipulating 60% marks for the students who secured
admission under "Management Quota".

5. The Bank hence has to consider the loan application

keeping in mind the possibility of realizing the amounts disbursed

with interest. This has a direct bearing on the prospects of the

WP(C) No.26732 of 2017 -4-

student, since the loan can be realized only by repayment after the

student gets employment. The student was not admitted on merit and

had joined the course in the management quota. This Court does not

find any reason to differ from the decision of the Division Bench of

this Court; nor are there any grounds to interfere with the decision

of the Bank. The writ petition would stand dismissed. No order as

to costs.

Sd/-
K.Vinod Chandran
Judge.
vku/-

[ true copy ]