2015 Supreme(Raj) 1923
RAJASTHAN HIGH COURT AT JAIPUR BENCH
P.K.Lohra, J.
Akshay Kumar Surana - Appellant
Versus
Union of India & Ors. - Respondent
S.B. Civil Writ Petition No. 3793 of 2015.
Decided On : 5-11-2015
Advocates:
For the Petitioner:Mr. Sandeep Shah, Advocate.
For the Respondent Nos. 2 to 4:Mr. Jagdish Vyas, Advocate.
For the Respondent No. 1 despite service: None present.
The interest subsidy under CSIS-2014 was available only for education loans with outstanding interest as of 31.12.2013, and the petitioner's loan did not have any outstanding interest as of that date.
Headnote:
EDUCATION LOAN - INTEREST SUBSIDY - CSIS-2014 - Petitioner, a practicing lawyer, challenged the circular, communication, and notice issued by the respondent-Bank, claiming that they violated the Central Scheme for Interest Subsidy (CSIS-2014) for education loans during the moratorium period. The court held that the petitioner was not entitled to the interest subsidy as there was no outstanding interest on the loan as of 31.12.2013, as per the guidelines of CSIS-2014.
Fact of the Case:
Petitioner, a practicing lawyer, availed an education loan from the respondent-Bank in 2007. The loan was sanctioned for a period of five years with a moratorium period from July 2007 to January 2013. The petitioner started paying monthly installments after the moratorium period and had paid a total of Rs. 2,59,200/- by 09.03.2015. The petitioner claimed that he was entitled to the interest subsidy during the moratorium period as per the CSIS-2014 introduced by the Union Finance Minister in the budget speech.
Finding of the Court:
The court found that the petitioner was not entitled to the interest subsidy as there was no outstanding interest on the loan as of 31.12.2013, as per the guidelines of CSIS-2014. The court also held that the petitioner's invocation of the doctrine of "Legitimate expectation" was misplaced as the petitioner had misinterpreted the CSIS-2014 scheme.
Issues: 1. Whether the petitioner was entitled to the interest subsidy during the moratorium period under CSIS-2014? 2. Whether the petitioner's invocation of the doctrine of "Legitimate expectation" was valid?
Ratio Decidendi: 1. The court held that the petitioner was not entitled to the interest subsidy as there was no outstanding interest on the loan as of 31.12.2013, as per the guidelines of CSIS-2014. The court noted that the CSIS-2014 scheme was intended to provide interest subsidy on the outstanding interest component of education loans as of 31.12.2013, and that the petitioner's loan did not have any outstanding interest as of that date. 2. The court held that the petitioner's invocation of the doctrine of "Legitimate expectation" was misplaced as the petitioner had misinterpreted the CSIS-2014 scheme. The court noted that the petitioner had construed the promise or practice to be followed without examining and analyzing its true purport.
Final Decision: The court dismissed the writ petition, holding that the petitioner was not entitled to the interest subsidy and that his invocation of the doctrine of "Legitimate expectation" was misplaced.
JUDGMENT
1. - Petitioner, a practising lawyer has laid this writ petition to assail the impugned circular dated 11.04.2014 (Annex. 10), communication dated 07.10.2014 (Annex. 13) and notice dated 10.02.2015 (Annex. 14) and prayed for annulment of impugned circular, communication as well as notice. A further direction is sought by the petitioner to allow him benefit of interest subsidy for the period of moratorium in adherence of the central scheme to provide interest subsidy for the period of moratorium on educational loans availed by the students belonging to weaker sections of society with other ancillary reliefs.
2. Succinctly stated the facts of case are that petitioner for advancement of his academic career to pursue B.A., L.L.B. Course applied for education loan to the respondent-State Bank of Bikaner & Jaipur, RASMECCC, Jodhpur (for short the 'Bank'). The respondent-Bank after processing the application of the petitioner sanctioned him education loan to the tune of Rs. 3,97,500/- vide letter dated 25.07.2007. The loan was sanctioned for a period of five years i.e. from 2007 to 2012. In terms of sanction letter, the petitioner was required to repay the said loan in equal monthly instalments in 60 months after the date of commencement of repayment. The repayment was to commence one year after the course period of 16 months to be reckoned from 01.08.2007. As such, the petitioner was allowed moratorium period from July 2007 to January 2013 and during the interregnum period, he was not required to pay any sum against the principal loan amount. After completion of moratorium period, the petitioner started paying monthly instalments and by 09.03.2015, a total sum of Rs. 2,59,200/- was paid by him in 18 instalments. In order to show the requisite figures, statement of accounts for the period 11.08.2007 to 09.03.2015 is also placed on record.
3. It is averred by the petitioner in the writ petition that the Union Finance Minister while presenting budget for the year 2014-2015 in his budget speech proposed for providing the subsidy on interest amount of moratorium period for all education loans taken up to 31.03.2009 as outstanding on 31.12.2013. Pursuant to the budget speech of the Union Finance Minister, as per the petitioner, Department of Higher Education, Ministry of Human Resources Development, Government of India issued explanation regarding the proposed central scheme to provide interest subsidy for the period of moratorium on education loans availed by the students belonging to economically weaker sections from the Scheduled Bank advanced under the Education Loan Scheme of Indian Banks' Association to pursue technical/professional education studies in India. In the scheme, it was, inter alia, provided that interest on the education loan during the moratorium period shall be borne by the Government. According to the petitioner, in adherence of the explanation of Ministry of Human Resources Development, Government of India, the respondent-bank issued a circular dated 04.03.2014 stating therein that Central Government has taken liability to i make payment of the interest on education loan up to 31.12.2013 which were sanctioned/availed up to 31.03.2009 and are outstanding on 31.12.2013. Subsequent to that, the third respondent sent a communication to the petitioner that benefit of scheme shall be provided to the loanees who have obtained education loan during 21.05.2001 to 31.03.2009 provided their annual family income is not more than Rs. 4.50 lacs and the petitioner was asked to furnish certificate to that effect. In adherence of the same, the petitioner submitted requisite certificate with the benign hope of getting interest subsidy during the moratorium period.
4. Thereafter, a circular dated 11.04.2014 came into offing at the behest of the Bank for implementation of Interest Subsidy Scheme. Along with circular, Annex.1 was enclosed clarifying certain queries whereas Annex.11 contained examples for providing benefit of the s
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