The court emphasized the importance of education as a national wealth and the need for the benefit to reach deserving and needy persons.

Heard both sides.

2. By consent of both sides, the main Writ Petition itself is taken up for final disposal.

3. According to the Petitioner, his daughter Sindhuja had completed her Higher Secondary Education during the month of March 2015 and she secured 880/1200 marks through SMB Matriculation Higher Secondary School, Dindigul. After completing her Higher Secondary Course in the year 2015, she aspired to joint the course in B.E. Electronic Communication Engineering and hence she joined the Hindusthan College of Engineering and Technology, Coimbatore.

4. The stand of the Petitioner is that he belongs to Backward Class Community and his daughter Sindhuja is the first person in his family to be a graduate and the Petitioner hails from a poor economic back ground and therefore intended to apply for educational loan from the Bank to complete his daughter's studies. In fact, the fees structure works out to Rs.4 lakhs for four years. Therefore, he had submitted a loan application before the First Respondent/Indian Bank, Alagar Koil Street, Melur, Madurai District. However, the First Respondent Bank insisted upon him to furnish a collateral security for education loan purpose. In fact, the Second Respondent/The Regional Manager, Indian Bank, East Marrat Veethi, Madurai had instructed the Petitioner to obtain 'No Objection Certificate' from various town and village Banks and the Petitioner spent ten days to obtain 'No Objection Certificate' from various banks. The Second Respondent also had instructed to obtain legal opinion of the collateral property from the Bank Panel Lawyer and also received Valuation Certificate from the Bank Panel Engineer.

5. It comes to be known that in the Valuation Report, the Valuer has opined that the Petitioner's property value is Rs.1,30,000/- and further, the realisable sale value was mentioned as Rs.1,26,000/- Indeed, the Second Respondent/The Regional Manager, Indian Bank, East Marrat Veethi, Madurai had stated that it is not enough against the loan amount and demanded some more property as an additional security.

6. In fact, the Petitioner is having only a residential house and there is no other property. The plea of the Petitioner is that with great difficulties, his daughter had completed first year and he finds it difficult to pay the college fee and other incidental fees for continuing her course. Hence he has filed the present Writ Petition for passing of an order in directing the Respondents to sanction the education loan of Rs.4 lakhs applied for the Petitioner's daughter namely, Sindhuja, B.E. Electronic Communication Engineering Course for the period 2015-2019 in Hindusthan College of Engineering and Technology, Coimbatore.

7. Per contra, it is the submission of the learned Standing Counsel appearing on behalf of the Respondents No.1 and 2/Bank that the Bank had considered the education loan application of the Petitioner to sanction a sum of Rs.4 lakihs under non IBA scheme as she was not selected under 'single window system'. Further, she had accepted to the terms and conditions of the Bank and in compliance with such conditions, the Petitioner's daughter had agreed to offer immovable property, worth Rs.4 lakhs. Also a legal opinion, dated 24.2.2016 from the Banks Panel Lawyer was obtained. Added further, she had obtained a Valuation Report from the Panel Valuer, Er.Pandiaraj, dated 26.2.2016 and the Bank had scrutinized the same. The value of the property runs as under:

8. The Learned counsel for the Respondents 1 and 2/Bank submits that realisable value is only Rs.1,26,000/- and the bank had requested to provide additional security. Further it is projected on the side of the Respondents/Bank that the Bank is dealing with public money