IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 30TH OCTOBER 2009 / 8TH KARTHIKA 1931 WP(C).No. 28900 of 2009(F) -------------------------- PETITIONER(S): --------------- DEVASIA MATHEW, PADINJAREPARAMBIL, PUNNAPRA P.O., ALAPPUZHA DISTRICT. BY ADV. SRI.JOMY GEORGE SRI.M.J.BENNY SRI.SEBASTIAN THOMAS SRI.P.REJINARK RESPONDENT(S): --------------- 1. KERALA STATE CO-OPERATIVE BANK LTD., ALAPPUZHA BRANCH, ALAPPUZHA DISTRICT. REPRESENTED BY ITS MANAGER. 2. DISTRICT REGISTRAR OF CO-OPERATIVE SOCIETIES, ALAPPUZHA DISTRICT. 3. RESERVE BANK OF INDIA, REPRESENTED BY ITS SENIOR MANAGER, THIRUVANANTHAPURAM. ADV. SRI.NAGARAJ NARAYANAN,SC,K.S.CO-OP BANK FOR R1 SR. GOVT. PLEADER SHRI.K.S.MUHAMMED HASHIM THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 30/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No. 28900/09. APPENDIX PETITIONER(S)' EXHIBITS P1. COPY OF THE DETAILS REGARDING THE FEE STRUCTURE OF THE COLLEGE. P2. COPY OF THE REQUEST DTD.3.9.03. P2A. COPY OF THE REQUEST DTD.3.9.03 BY THE PETITIONER'S DAUGHTER. P3. COPY OF THE RELEVANT PAGES OF PASS BOOK. P4. COPY OF THE DETAILS OF THE LOAN. P5. COPY OF THE RESERVE BANK GUIDELINES. sdk+ ///True copy/// P.A. to Judge S.SIRI JAGAN, J. ================== W.P(C).No.28900 of 2009 ================== Dated this the 30th day of October, 2009 J U D G M E N T The petitioner applied for an educational loan from the 1st respondent bank for enabling the petitioner's daughter to pursue higher studies in nursing. Loan was sanctioned. 1st, 2nd and 3rd instalments had already been paid. The 4th instalment has become due. When the petitioner requested the 1st respondent bank to disburse the 4th instalment, they insisted on the petitioner paying the accrued interest in respect of the previous instalments. According to the petitioner, that demand is totally against the provisions of the scheme, under which, the educational loan is sanctioned and the agreement between the parties. According to the petitioner, as per the agreement, there is a moratorium for recovery of the loan amounts, until the course period plus one year or six months after getting a job, whichever is earlier is over, and interest accrued during the repayment holiday period is to be added to the principal and repayment has to be fixed in monthly instalments. Therefore, according to the petitioner, the demand for interest on the instalments already paid is clearly against the provisions of the agreement. The petitioner, therefore, seeks the following reliefs: “i) issue a writ of mandamus or any other appropriate writ, order or direction directing the 1st respondent to disburse the balance sanctioned amount to the daughter of the petitioner or to the college authorities, without insisting for payment of interest in advance. ii) issue a writ of mandamus or any other writ, order is direction directing the 2nd and 3rd respondents to give necessary directions to the 1st respondent to disburse the educational loan without insisting for payment of interest in advance or during the moratorium period 2 And iii) Pass such other order or direction as deem fit to the facts and circumstances of the case. 2. Originally the counsel for the 1st respondent bank took the stand that the fourth instalment can be paid only if the petitioner pays the interest accrued on the previous instalments. According to the counsel for the 1st respondent, as per the agreement, the petitioner is liable to pay interest on the instalments already paid. 3. In view of the contentions raised by the 1st respondent, I directed the 1st respondent to produce the loan agreement. A copy of the agreement has today been made available to me for perusal. The counsel now submits that there is no such provision in the agreement. That being so, I am satisfied that the 1st respondent cannot now insist on the petitioner paying interest on the instalments already disbursed to him and such a demand would be against the provisions of the agreement. In the above circumstances, this writ petition is disposed of with a direction to the 1st respondent to disburse the fourth instalment of loan also to the petitioner within one week from the date of receipt of a certified copy of this judgment, in accordance with the loan agreement. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// 3 P.A. to Judge