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2015 Supreme(Cal) 747
IN THE HIGH COURT OF CALCUTTA
Arijit Banerjee, J.
Goutam De – Petitioner
Vs.
UCO Bank – Respondent
W.P. No. 314 of 2015
Decided On : 15-10-2015
For the Petitioner: N. Banerjee, S. Chakraborti
For the Respondent: Pankaj Mukherjee, Samrat Mukherjee, Ledia Dasgupta
The subsidy amount under the CSIS Scheme is not repayable by the borrower if the borrower has already paid more than the subsidy amount towards interest on the loan and the subsidy amount is deposited in the borrower's loan account after adjusting the outstanding dues payable by the borrower to the bank.
Headnote:
EDUCATION LOAN - CENTRAL SCHEME FOR INTEREST SUBSIDY (CSIS SCHEME) - INTEREST SUBSIDY - ELIGIBILITY - REPAYMENT OF SUBSIDY - NO SCOPE FOR REFUND OF SUBSIDY AMOUNT - SUBSIDY AMOUNT ADJUSTED AGAINST LOAN BALANCE - CREDIT BALANCE IN LOAN ACCOUNT - SUBSIDY AMOUNT PAYABLE TO BORROWER.
Fact of the Case:
The petitioner, a student from an economically weaker section, availed an education loan in 2007 and regularly paid interest on the loan. In 2014, the government deposited a subsidy amount of Rs. 75,128/- in the petitioner's loan account under the CSIS Scheme. The petitioner contended that he was entitled to receive the subsidy amount as he had already paid more than Rs. 1.5 lacs towards interest on the loan.
Finding of the Court:
The court held that the petitioner was entitled to receive the subsidy amount as he had regularly serviced the loan and had made deposits in the loan account on account of interest. The court further held that the subsidy amount was not repayable by the petitioner as he was not in default of any loan payments.
Issues: 1. Whether the petitioner was eligible for the subsidy under the CSIS Scheme? 2. Whether the subsidy amount was repayable by the petitioner?
Ratio Decidendi: 1. The court held that the petitioner was eligible for the subsidy under the CSIS Scheme as he belonged to an economically weaker section and had availed the loan for post higher secondary level studies in a recognized institution. 2. The court held that the subsidy amount was not repayable by the petitioner as he had already paid more than Rs. 1.5 lacs towards interest on the loan and the subsidy amount was deposited in his loan account after adjusting the outstanding dues payable by him to the bank.
Final Decision: The court directed the respondent bank to pay the petitioner the sum of Rs. 75,132/- along with interest at the rate at which the bank pays interests on Fixed Deposits for the period 11th November, 2014 till date of payment.
Arijit Banerjee, J.
The Government of India in the budget of 2009-10 had introduced the Central Scheme for Interest Subsidy (in short CSIS Scheme) on educational loan to provide interest subsidy on all educational loans sanctioned/availed up to 31st March, 2009 and outstanding as on 31st December, 2013 by students belong to economically weaker section. The Scheme was applicable for Post Class XII studies in recognized technical/professional courses in India. Students with an annual gross parental/family income up to Rs. 4.5 lac per year as on the date of availing the loan would be deemed to belong to the economically weaker section. It would apply to all education loans sanctioned up to 31st March, 2009 and outstanding as on 31st December, 2013. Only the interest component of the loan would be adjusted under the Scheme.
2. The petitioner applied for the UCO education loan for undergoing the MBA course. Such loan was sanctioned by the respondent bank in May 2007. The total sum disbursed to the petitioner under the loan between 18th May, 2007 and 8th October, 2008 was, according to the petitioner, Rs. 2,66,400/-. According to the petitioner he deposited a sum of Rs. 1,51,233/- towards interest in the loan account between 28th May, 2007 and 10th January, 2014.
3. From the statement of account for the period 1st April, 2014 to 19th September, 2014 it appeared that prior to 30th August, 2014 there was a debit balance of Rs. 6179/- in the loan account. On 30th August, 2014 a subsidy amount of Rs. 75,128/- was credited to the said loan account whereupon the account showed a credit balance of Rs. 68,949/-. According to the petitioner he was directed to deposit a sum of Rs. 6179/ - in the said loan account as a precondition for issuance of 'no dues certificate' by the respondent bank. This the petitioner did on 10th November, 2014 whereupon the loan account showed a credit balance of Rs. 75,132/-. The respondent bank issued the no due certificate on 10th November, 2014.
4. The petitioner contends that he is entitled to refund of this credit balance amount lying in the said account. The petitioner sent several emails dated 17th October, 2014, 19th October, 2014 and 10th November, 2014 to the respondent bank for releasing the said amount in favour of the petitioner.
5. By a letter dated 25th February, 2015 the Chief Manager of the respondent bank informed the petitioner that he was not eligible to receive subsidy.
6. The petitioner contends that from the statement of accounts issued by the respondent bank it would be clear that the Central Government deposited a sum of Rs. 75,128/- in the petitioner's loan account under the CSIS Scheme on account of interest subsidy and the petitioner is entitled to receive the said sum. He contends that the whole object of the CSIS Scheme was to subsidize the interest component of the educational loans availed by students from economically weaker sections going for post higher secondary level students in recognized institutions. He contends that he has deposited more than Rs. 1.5 lacs towards interest in the loan 'account and, hence, the subsidy amount which has been deposited in the loan account under the CSIS Scheme is to be paid to him. Being aggrieved, the petitioner has approached this Court by way of the present writ application for a direction on the respondent bank to act in accordance with the CSIS Scheme and release the credit balance in the loan account in favour of the petitioner.
7. Appearing for the respondents, Ld. Counsel contended that there is no scope for return or refund of subsidy amount under the CSIS Scheme. The statement of account pertaining to the loan showed that there was outstanding dues payable by the petitioner to the respondent bank and, hence, the interest component being Rs.75,128/- as subsidy amount was credited in the loan account of the petitioner. In paragraph 14 of the affidavit-in-opposition filed by the bank it is stated as fol1ows:
"14. It is submitted that in
