1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 29.07.2011 CORAM: THE HONOURABLE MR.JUSTICE R.SUDHAKAR W.P(MD)No.8041 of 2011 P.Palanichamy .. Petitioner Vs. The Branch Manager, Canara Bank, Sriramapuram, Madurai Trunk Road, Dindigul, Dindigul District-614 622. .. Respondent PRAYER: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Mandamus, to direct the respondent Bank to sanction and disburse the educational loan amount of Rs.6,50,000/- for two year course of MBA Programme 2011-13 to the higher study of petitioner's son as per the application dated 20.05.2011. For Petitioner : Mr.K.Balasubramanian For Respondent : Mr.V.Madhavan Kutty O R D E R This Writ Petition has been filed by the petitioner for a Writ of Mandamus to direct the respondent Bank to sanction and disburse the educational loan amount of Rs.6,50,000/- for two year course of MBA Programme 2011-13 to the higher study of petitioner's son as per the application dated 20.05.2011. 2. Heard Mr.K.Balasubramanian, learned Counsel for the petitioner and Mr.V.Madhavan Kutty, learned Counsel appearing for the respondent. 3. By consent, the writ petition itself is taken up for final disposal. 4. The petitioner seeks educational loan for pursuing M.B.A. programme for the year 2011-2013 at Amrita School of Business run by Amrita Vishwa Vidyapeedam University established under https://hcservices.ecourts.gov.in/hcservices/ 2 Section 3 of the UGC Act 1956. The Institute is having its registered office at Ettimadai P.O., Coimbatore- 641105, Tamil Nadu. The petitioner applied for educational loan, which was processed, but for one or other reason, the respondent Bank delayed the grant of loan. Hence, this writ petition has been filed by the petitioner. 5. The learned Counsel appearing for the respondent states that the Bank will consider the claim of the petitioner in terms of the Reserve Bank of India guidelines and the scheme framed by the Indian Bankers' Association under the comprehensive educational loan scheme. 6. At the time of hearing, the learned Counsel appearing for the petitioner produced a letter issued by the respondent Bank, dated 19.07.2011 stating that proof as required should be submitted. The gist of the letter reads as follows:- "Please forward the proof for AICTE approval of the subject M.B.A. course given by the college authorities." 7. On going through the letter of the respondent Bank as above, it is apparent that the Manager of the respondent Bank has failed to understand the scope of the comprehensive educational loan scheme. The scheme was brought into force in the year 2001 and implemented as per the Reserve Bank of India circular No.RPCD.PLNFS.BC.No.83/06.12.05/2000-01 dated April 28, 2001 as amended. As regards the courses eligible for grant of educational loan, paragraph 4.2 of the scheme clearly states that it includes courses leading to diploma/degree, etc., conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR etc. 8. It is not in dispute that the business school in which the petitioner is studying is a university established under Section 3 of the UGC Act 1956 and it will fall within para 4.2 of the scheme. The Bank has failed to notice the specific inclusion of UGC College/Universities and M/s Amrita School of Business is run by a university in terms of Section 3 of the UGC Act 1956. 9. In such view of the matter, the insistent of the respondent Bank on AICTE approval in respect of a deemed university will be contrary to statute. The respondent is therefore directed to grant educational loan to the petitioner forthwith, if other other usual details are furnished. 10. With the above direction, this writ petition is allowed. No costs. Sd/- Assistant Registrar(C.O) /True Copy/ Sub-Assistant Registrar https://hcservices.ecourts.gov.in/hcservices/ 3 To The Branch Manager, Canara Bank, Sriramapuram, Madurai Trunk Road, Dindigul, Dindigul District-614 622. +One cC to Mr.K.Balasubramanin, Advocate, SR.No.25146 ssl rl/3c – 3.8.2011 W.P(MD)No.8041 of 2011 29.07.2011 https://hcservices.ecourts.gov.in/hcservices/