IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.03.2011 CORAM: THE HON’BLE MR. JUSTICE K.CHANDRU W.P.No.26850 of 2010 1 MINOR.K.IYYAPPAN 562, BANK STREET POMBUR VILLAGE AND POST VANUR TALUK VILLUPURAM DISTRICT. REP. BY FATHER AND NATURAL GUARDIAN G.KARUNANIDHI [ PETITIONER ] Vs 1 THE BRANCH MANAGER PUNJAB NATIONAL BANK POMBUR VILLAGE AND POST VANUR TALUK VILLUPURAM DISTRICT [ RESPONDENT ] Prayer : Petition under Article 226 of the Constitution of India praying for a Writ of Mandamus directing the respondent to consider the Educational loan application of the petitioner to sanction and disburse the loan to the petitioner forthwith as per his application dated 12.8.2010 and pass such further or other orders. For Petitioner :: Mr.K.Govindaraj For Respondent :: Mr.M.L.Ganesh O R D E R The petitioner is a minor represented by his father and natural guardian. In the present Writ Petition he seeks for a direction to consider the educational loan application sent on behalf of the petitioner vide application dated 12.8.2008. https://hcservices.ecourts.gov.in/hcservices/ 2. It is seen from the records that the petitioner had joined the B.Sc. Nautical Science Degree Course for the year 2010-2011 in Vel Institute of Science, Technology and Advanced Studies (for short VISTAS), Chennai. He has also remitted a sum of Rs.1,35,000/- towards the I Term fees plus Rs.75,000/- for other requirements. The petitioner sent an application for educational loan with the respondent Bank at No.6, Pombur Village Branch. Along with the Application, he has also given a collateral security of the property in the form of Sale Deed and he claims its worth Rs.9,60,000/-. He has given a Valuation Certificate. He has given the guarantor as one Tamil Teacher working in the area. Notwithstanding the requirement being fulfilled, the respondent has not sanctioned the loan. Therefore, he has come up with the present Writ Petition. 3. When the matter came up on 29.11.2010, this Court directed notice to be served on the respondent. The respondent has filed a counter affidavit dated 14.3.2011. The only stand taken by the respondent was that the VISTAS was sought to be derecognised pursuant to the recommendation made by the Tandon Committee. Though the Supreme Court had granted stay of the attempt made by the UGC to derecognise in issuing a show cause notice, since the status of the VISTAS is not finalised, the respondent Bank did not also advance any loan. However, it is admitted that the loan sanctioned for the old students is now continuing on the basis of the past premise. But, so far as the present stand of the respondent was that out of the 44 Deemed Universities, the Head Office vide Circular dated 8.2.2010 has approved 20 Deemed Universities and the name of the VISTAS did not find a place in the said list approved by the Head Office. Therefore, they were not in a position to advance the loan. 4. But in the present case, the VISTAS is a deemed University and was granted such recognition by the University Grants Commission under Section 3 of the UGC Act and that recognition is yet to be cancelled. Even the Supreme Court after admitting the Writ Petitions have granted stay of derecognition. They have also directed the UGC to redo the exercise of derecognisition of them. Therefore, in view of that, there is no impediment for the respondent to grant loan to the petitioner since the said Institution continues to enjoy the deemed status conferred by the University Grants Commission. The respondent themselves cannot pick and choose out of the 44 Institutions and the petitioner Institute should be treated on par with other institute. For the lack of infrastructure or any other defect, there is no authority for the bank to decide the same as they are only concerned with their recognition/evolution or conferment of deemed status of an Institute, which is suffice for a grant of loan. 5. Under the circumstances, the Writ Petition stands allowed. The respondent Bank is directed to process the petitioner's application in accordance with law and in the light of the https://hcservices.ecourts.gov.in/hcservices/ observations made herein within a period of four weeks from the date of receipt of a copy of this order and sanction the loan as per their own Regulation and norms fixed by the Bank. No costs. The connected Miscellaneous Petition is closed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar ajr To 1 THE BRANCH MANAGER PUNJAB NATIONAL BANK POMBUR VILLAGE AND POST VANUR TALUK VILLUPURAM DISTRICT. 1 cc To Mr.M.L.Ganesh, Advocate, SR.21641. W.P.No.26850 of 2010 NM(CO) RVL 12.04.2011 https://hcservices.ecourts.gov.in/hcservices/