IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 30TH JULY 2010 / 8TH SRAVANA 1932 WP(C).No. 19248 of 2010(E) ----------------------------------------- PETITIONER(S): ------------------------- 1. VIJAY SANKAR, MAGNUM FLATS, D1, CHAKKORATHU KULAM, WEST NADAKKAV,CALICUT -11. 2. C.RAVI SANKAR, ADVOCATE, MAGNUM FLATS, D1, CHAKKORATHU KULAM, WEST NADAKKAV,CALICUT -11. BY ADV. SRI.M.C.RATNAKARAN RESPONDENT(S): --------------------------- 1. THE BRANCH MANAGER, STATE BANK OF INDIA, PALAYAM BRANCH, KOZHIKODE. 2. THE ASST.GENERAL MANAGER, STATE BANK OF INDIA, RASMECC, 2ND FLOOR - KALLAI HEIGHTS, KALLAI P.O., KOZHIKODE. 3. THE GENERAL MANAGER, STATE BANK OF INDIA, KERALA LOCAL HEAD OFFICE, S.S.KOVIL ROAD, THIRUVANANTHAPURAM. 4. INDIAN BANKS ASSOCIATION, WORLD TRADE CENTRE, 6TH FLOOR, TC COMPLEX,MUMBAI - 460 005. R1 TO R3 BY ADV. SRI.K.K.CHANDRAN PILLAI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/07/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss P.R.RAMACHANDRA MENON, J. --------------------------- W.P.(C) No. 19248 OF 2010 -------------------------- Dated this the 30th day of July, 2010 J U D G M E N T The dispute between the petitioners and the respondent bank as projected in the writ petition is with regard to the steps now taken by the respondent-bank to realise the amount due under an educational loan causing to issue a lawyer's notice, to be followed by further adverse consequences. 2. Learned counsel for the petitioners submits that the Educational course of the first petitioner was for a period of 'four' years, for which the loan was applied for and after considering the facts and circumstances, loan amount of Rs.Four lakhs was sanctioned and by virtue of the specific terms agreed, repayment would actually start only from May 2010, to be extended by May 2011. The second petitioner is the father of the first petitioner. 3. The learned counsel for the bank, with reference to the documents produced along with statement filed, submits that the contentions raised by the petitioners are quite wrong and misconceived. The application for loan produced as 'Annexure I' itself shows the duration of course as 'two' years and date of commencement of the course as 3.5.2005. Reference is also WPC No.19248/2010 2 made to 'clause 6' pertaining to the repayment programme, wherein the loan is proposed to be repaid in 60 equated monthly instalments of Rs.8,600/- each by the student/parent/guardian beginning from May 2008. Learned counsel for the petitioners made further reference to 'clause 7' wherein it is stated that the loan applied is for the 'first level' of the course only and that the first petitioner has undertaken to repay the loan one year after the completion of the 'first level' of the course or 'six months' after getting a job, which ever is earlier. 4. Going by the materials on record, it appears that there was some misconception or misunderstanding to the petitioners with regard to the application and sanctioning of the loan. However, the learned counsel for the petitioners submits that the petitioners will satisfy the due amount, if some indulgence is shown by providing an extension with regard to the commencement of the repayment till January, 2011, assuring that repayment will be effected with effect from January, 2011 without fail. 5. Learned counsel for the bank submits that the extent of liability to be satisfied by the first petitioner is likely to vary, if the repayment time is to be rescheduled, which is stated as agreeable to the petitioners, by the learned counsel. WPC No.19248/2010 3 6. Taking note of the particular facts and circumstances and that the loan facility extended by the bank is in the 'educational sector', this Court finds it fit and proper to permit the petitioners to clear the liability by commencing the repayment from January, 2011, subject to the condition that the repayment as rescheduled by the bank is satisfied without fail. This is also subject to the further condition that the security documents shall be given revived by the petitioners, executing all necessary documents to be forwarded by the bank in this regard. It is also made clear that, if any default is committed by the petitioners in making repayment of the loan as above, it will be open to the bank to take all steps under law so as to realise the liability as and when the cause of action arises. The steps with regard to the rescheduling of the loan shall be finalised by the bank at any rate within two months from the date of receipt of a copy of this judgment. The writ petition is disposed of. P.R.RAMACHANDRA MENON (JUDGE) vps WPC No.19248/2010 4 WPC No.19248/2010 5