CHENNAI, NOV20 (PTI)
The Madras High Court today held that poor performance in the qualifying examination cannot be a ground to deny educational loan for students.
Justice P Jyothimani passed the order on a petition filed by D Iniyan Goutham, represented by his father R Dhavamani, seeking to quash an order dated October 18, 2007 of the Bank of Baroda, Pursalwakkam branch's Chief Manager.
The order rejected the claim of the petitioner's father for educational loan on the ground that the petitioner's academic career was poor and it cannot be considered.
The judge set aside the rejection order amd directed the Chief Manager to consider the application for loan and pass appropriate order, granting the loan within four weeks.
The petitioner got admission in a private engineering college in Manimankalam near Chennai.He was directed to pay a total fee of Rs 73,500. His father, who was having account in Bank of Baroda, Pursalwakkam branch, applied for educational loan on September 24, 2007.However,the Chief Manager rejected the plea.
Originally, the petitioner failed in one of the subjects in Plus Two examination. But, subsequently he wrote the subject and got through. His total mark was 660.
The petitioner contended that the government policy was to encourage students to pursue education amd in that view only educational loans were given.The stand taken by the Bank that his earlier educational qualification was poor was "extraneous."
The Bank pointed out to the Indian Banks Association guidelines that said guidelines were framed based on the directions issued by the RBI. It was for the bank to apply its mind on sanctioning the loan on the basis of the petitioner's repayment capacity and then come to a conclusion as to whether it was possible for the said candidate to get a job which relates to repayment.Therefore the rejection was not illegal.
The judge said on the face of it one can see that the order passed by the Bank was patently illegal and against the policy of the government and the concept of propagating education among the students, especially those who come from the downtrodden community.
"Merely because in his plus two examination, the petitioner has failed in one subject does not mean that he was unqualified. Based on his qualification only, the authorities have admitted him in an engineering degree course and it was not open for the bank to underestimate the quality of such candidate," the judge added.
The judge said even the guidelines stated that the basis for issuance of the guidelines was to encourage education among the students and nowhere was it stated that only bright students should alone be given such loans.
It was not known as to how the "bank has applied its mind for the purpose of granting loan and being suspicious about the repayment capacity of the petitioner or his father."
"I have absolutely no hesitation to come to the conclusion that the order has been passed without application of mind," the judge added.