IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 26.09.2011 CORAM THE HONOURABLE MR.JUSTICE D.HARIPARANTHAMAN W.P.NO.13460 OF 2011 AND M.P.NO.1 OF 2011 S.Sivaprakash ... Petitioner Vs. 1.The Branch Manager Indian Bank Kurinjipadi Branch Kurinjipadi, Cuddalore District. 2.The Principal SRR Engineering College Old Mahabalipuram Road, (IT Highway) Padur, Chennai - 603 103. ... Respondents PRAYER: Petition filed under Article 226 of the Constitution of India for the issuance of Writ of Mandamus, directing the 1st respondent Bank to sanction the full amount of tuition fee and hostel fee viz., Rs.60,000/- for the academic year 2010-2011 and the same amount continuously for the future academic years till the completion of the B.E.(Electrical and Electronics Engineering) course by the petitioner as Educational loan to the petitioner. For Petitioner : Mr.N.Suresh For Respondent-1 : Mrs.P.Rita Chandrasekar for M/s.Aiyar & Dolia O R D E R The petitioner joined B.E.(Electrical and Electronics Engineering) course during the academic year 2010-2011 in the second respondent College. He is the first person in his family pursuing higher education. The Government of Tamil Nadu has given tuition fee concession for the candidates, who are the first graduate in their family. Since the petitioner is the first graduate in his family and also hails from a poor family, the https://hcservices.ecourts.gov.in/hcservices/ tuition fee payable by the petitioner was fixed as Rs.12,500/- per year. The Course is of four years. The petitioner belongs to K.Nellikuppam Village, Cuddalore District. The second respondent College is at Chennai and thus, the petitioner joined in the hostel run by the second respondent College. The College has charged Rs.47,500/- towards hotel fee per year. In total, the amount that has to be paid by the petitioner is Rs.60,000/- per year. The petitioner approached the first respondent Bank on 30.08.2010 seeking Educational Loan of Rs.2,40,000/- i.e. Rs.60,000/- per year to pursue his studies. However, the first respondent Bank has sanctioned only Rs.1,50,000/- towards tuition fees and hostel fees for four years, that is Rs.37,500/- per year towards tuition fee and hostel fee. Hence, the petitioner has filed the present writ petition, seeking a direction to the first respondent Bank to sanction the full amount of tuition fee and hostel fee viz., Rs.60,000/- per academic year till the completion of the B.E. Course. 2.The first respondent Bank has filed a counter affidavit stating that they sanctioned a sum of Rs.1,50,000/- towards tuition fee and hostel fee for four years. It is stated that a sum of Rs.12,500/- has been sanctioned towards tuition fee and a sum of Rs.25,000/- has been sanctioned towards hostel fee, per year. It is further stated that the Bank has been adopting an uniform practice of sanctioning a sum of Rs.25,000/- towards hostel fee, not only for Engineering courses, but also for other courses. It is also stated that the second respondent Institution has unilaterally fixed the hostel fee at an exorbitant rate. Since it was the policy decision of the first respondent to pay at the rate of Rs.25,000/- towards hotel fee per year, the first respondent could not be sanctioned Rs.47,500/- per year towards hostel fee, as claimed by the petitioner. 3.Heard the learned counsel on either side. 4.The learned counsel for the petitioner submits that the application in the printed format issued by the Bank to apply for Educational Loan makes it clear that the petitioner is entitled to claim the entire hostel fee. He further submits that the student is entitled to claim upto Rs.4,00,000/- towards Educational Loan, without insisting any security and if the amount exceeds Rs.4,00,000/-, he should furnish security to the satisfaction of the Bank. 5.On the other hand, the learned counsel for the first respondent Bank has relied on the Fee Structure for Educational Loan issued by the Health and Family Welfare Department, Government of Tamil Nadu. The Fee Structure provides that the hostel fee for B.E., B.Tech., B.Arch., is Rs.24,000/- per year. https://hcservices.ecourts.gov.in/hcservices/ The learned counsel for the first respondent sought to dismiss the writ petition. 6.I have considered the submissions made on either side and perused the materials available on record. 7.The petitioner joined in B.E.(E.E.E.) Course during the academic year 2010-2011 in the second respondent College. The second respondent issued a Certificate (Bonafide and Expenditure Certificate) dated 11.08.2010 to the petitioner, which reads as follows: "This is to certify that S.Sivaprakash, S/o.Mr.U.SIVASANKARAN is a bonafide student of our college studying I YEAR (B.E) EEE during the academic year 2010-2014. The expenditure for the I Year (2010-2011) is as follows: 1.Tuition Fee (First Graduate): Rs.12,500/- 2.Hostel Fee (Optional) : Rs.47,500/- -------------- TOTAL : Rs.60,000/- -------------- (Rupees Sixty Thousand only) Fee structure for II, III & IV Year are the same as for I YEAR II Year (2011-2012) Fee :Rs.60,000/- III Year (2012-2013) Fee :Rs.60,000/- IV Year (2013-2014) Fee :Rs.60,000/-" Based on the same, the petitioner requested the first respondent Bank to grant Educational Loan of Rs.2,40,000/- to pursue his B.E. Course. However, the first respondent Bank has sanctioned only a sum of Rs.1,50,000/-. That is, the first respondent has sanctioned the entire tuition fee, but however, sanctioned only a sum of Rs.25,000/- per year towards hostel fee, while the petitioner claimed a sum of Rs.47,500/- per year towards hotel fee. In this regard, the relevant passage found in para 5 of the counter affidavit is extracted hereunder:- "With regard to payment of Rs.25,000/- towards hotel fee is concerned, this respondent Bank has been adopting and following a uniform practice of sanctioning a sum of Rs.25,000/- not only for Engineering Courses, but for other courses as well." Likewise, a similar statement is found in paragraph 6 of the counter affidavit and the same is extracted hereunder: https://hcservices.ecourts.gov.in/hcservices/ "6.I state that the hostel fees fixed by the colleges will not be uniform. The 2nd respondent Institution where the petitioner is undergoing the course had unilaterally fixed the amount at exorbitant rate. Hence, a policy decision was taken by this respondent to pay hotel fees at the rate of 25,000/-. Therefore, the petitioner is not entitled to claim the amount as fixed by the 2nd respondent Institution." The first respondent has also made a similar statement in para 8 of the counter affidavit, which reads as follows: " ... With regard to payment of hotel fee as already stated this respondent has been following a uniform policy of sanctioning Rs.25,000/- for all the course including the B.E. Course. ..." 8.Though the first respondent has stated that they had an uniform policy of sanctioning Rs.25,000/- towards hostel fee for all the courses, no such policy has been produced before this Court. On the other hand, the Fee Structure for Educational Loan issued by the Health and Family Welfare Department, Government of Tamil Nadu is relied on by the learned counsel for the Bank. The Fee Structure for Educational Loan issued by the Health Department of Tamil Nadu Government states that the Fee Structure is for various categories viz., Government Seat, Free Seat and Payment Seat. In my view, there is no Free Seat in any of the courses. 9.The Free Seat and Payment Seat Scheme devised by the Honourable Apex Court in UNNI KRISHNAN, J.P. AND OTHERS VS. STATE OF ANDRA PRADESH AND OTHERS [1993 (1) SCC 645] was struck down by the Honourable Apex Court in its judgment in T.M.A. PAI FOUNDATION VS. STATE OF KARNATAKA [2002 (8) SCC 481]. 10.Furthermore, the Fee Structure for Educational Loan relied on by the learned counsel for the first respondent states that the hostel fee is Rs.24,000/- per year, while they sanctioned a sum of Rs.25,000/- towards hostel fee, as per the policy of the Bank. Hence, I do not find any merit in the submissions made by the learned counsel for the first respondent Bank. 11.On the other hand, the application issued by the first respondent Bank makes it clear that the student could ask for Educational Loan as charged by the Institutions under various heads and if it exceeds a sum of Rs.4,00,000/-, he should provide security to the satisfaction of the Bank. It is admitted that the IBA/RBI's Scheme of Educational Loan provides loan to an extent of https://hcservices.ecourts.gov.in/hcservices/ Rs.4,00,000/- without security and if it exceeds beyond Rs.4,00,000/-, security is insisted. At this juncture, the relevant portion of the application form relied on by the learned counsel for the petitioner is extracted hereunder: "1. Date of receipt of loan application: IBA/RBI's Scheme Final Reply: Details of Fees/Other Expenses payable (as per the letter/estimate given by the institution) Rs.Per annum Particulars I year II year III Year IV year V Yea r Total i. Tuition Fees 12500 12500 12500 12500 - 50000 ii. Cost of Books, Stationery, etc. - - - - - - Iii. Cost of Equipment - - - - - - iv. Examination Fees - - - - - - v. Hostel Expenses Room Rent Mess Charges Sundry Charges 47500 47500 47500 47500 190000 vi. Others (please specify) Total (A) 60000 60000 60000 60000 240000 12.It is made clear that the petitioner is entitled to claim Educational Loan under various heads and there is no limitation on the hostel fee, as per the application issued by the first respondent. As stated above, the second respondent College issued a Bonafide and Expenditure Certificate dated 11.08.2010 wherein Rs.47,500/- per year is meant for hostel fee. It is not the case of the first respondent that it is not a truthful one. On the other hand, it is the case of the first respondent that the second respondent has charged an exorbitant rate. The first respondent could not question the rate charged by the second respondent College. The first respondent has only to see as to whether the amount claimed as loan is a bonafide one. Since the petitioner's claim is below Rs.4,00,000/-, the first respondent is bound to sanction the educational loan, without insisting any security. https://hcservices.ecourts.gov.in/hcservices/ 13.In these circumstances, the first respondent Bank is directed to sanction a sum of Rs.60,000/- per year i.e., Rs.47,500/- towards hostel fee and Rs.12,500/- towards tuition fee, in total, a sum of Rs.2,40,000/- for four years, as prayed for by the petitioner and to pay the balance amount to the petitioner, within a period of two weeks from the date of receipt of a copy of this order. 14.The writ petition is disposed of with the above observation and direction. No costs. Consequently, connected Miscellaneous Petition is closed. MPS/TK Sd/- Deputy Registrar //True Copy// Sub Asst. Registrar To The Branch Manager Indian Bank Kurinjipadi Branch Kurinjipadi, Cuddalore District. + 1 cc to Mr. N. Suresh, Advocate SR No.60202 + 1 cc to M/s. Aiyar & Dolia, Advocate SR No.59898 BKY(CO) SR/28.9.2011 W.P.NO.13460 OF 2011 https://hcservices.ecourts.gov.in/hcservices/