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2025 Supreme(Online)(Ker) 46385
IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J
AMAL REEMA – Appellant
Versus
PUNJAB NATIONAL BANK – Respondent
WP(C) NO. 10341 OF 2025
For the Appellants/Petitioners: SRI.S.S.ARAVIND, SHRI.TINU ABRAHAM
For the Respondents: SHRI.K.P.SUDHEER, SHRI.M.GOPIKRISHNAN NAMBIAR, SHRI.K.JOHN MATHAI, SRI.JOSON MANAVALAN, SRI.KURYAN THOMAS, SRI.PAULOSE C. ABRAHAM, SRI.RAJA KANNAN, SRI.PRANOY HARILAL, SMT.AKHILA NAMBIAR, SRI. SANTHEEP ANKARATH
The court clarified that educational loans sanctioned must be disbursed adequately to support students, regardless of minor procedural failures.
Headnote:(A) Education Loan - Sanction Order - The petitioner was sanctioned an education loan of ₹33,86,500/- but the bank failed to disburse the full amount due to non-compliance with pre-disbursement conditions. The court emphasized the importance of fulfilling the loan terms while also recognizing the unjust denial of funds based on technicalities. The court directed the bank to reconsider the petitioner's loan disbursement requests according to the initial sanction order, emphasizing the educational nature of the loan. (Paras 1-9)
(B) Bank's Obligation - The bank is mandated to treat 31.10.2023 as the date of sanctioning the loan for reimbursement of eligible fees, ensuring support for students pursuing higher education abroad. (Para 9)
| Table of Content |
|---|
| 1. loan sanctioned for education must be disbursed. (Para 1 , 2 , 3) |
| 2. disbursement conditioned on document submission. (Para 5) |
| 3. court emphasizes proper support for education. (Para 6 , 7) |
| 4. reconsideration of loan on prior sanction date. (Para 8) |
| 5. court orders disbursement as per agreement. (Para 9) |
J U D G M E N T
~ ~ ~ ~ ~ ~ ~ ~ ~
The petitioner, who is a student pursuing 6 year MBBS Course at M/s. Georgian American University LLC, Georgia, has filed this writ petition to direct the 1st respondent to reimburse the amount for the first and second Semesters of the MBBS Course as per the sanction order.
2. The petitioner was sanctioned an education loan of ₹33,86,500/- as per Ext.P1 sanction order dated 31.10.2023 of the 1st respondent-Bank. The 1st respondent, however, abstained from disbursing the loan. The petitioner thereupon filed W.P.(C) No.26867/2024. This Court permitted the petitioner to submit a proposal for additional security. The petitioner provided additional security and this Court, as per Ext.P2 judgment dated 27.09.2024, directed the 1st respondent to take a decision. The 1st respondent thereupon revalidated the sanction of the education loan of ₹33,86,500/-, as per Ext.P2.
3. The petitioner states that she has completed two Semesters (2023-2024) of the Course and has already paid ₹20,99,435/- towards various fees. The Bank is bound to disburse ₹8,68,665/- for the first Semester and ₹5,03,562/- for the second Semester. The Bank, however, disbursed only ₹2,15,000/- and is denying further disbursement. Hence, the petitioner is before this Court.
4. The 1st respondent resisted the writ petition.
The petitioner has to submit relevant documents for disbursement of the amount. Ext.P3 clearly stipulates that all tuition fees paid by the student within six months prior to 22.10.2024 alone will be permitted subject to production of proper receipt. Default in disbursement is exclusively attributable to the petitioner's failure to comply with the pre-
disbursement conditions.
5. The 1st respondent reiterated that the Bank can reimburse the payments made six months prior to 22.10.2024 alone. The bills/invoices submitted by the petitioner were beyond that period. The petitioner has refused to take the credit life insurance and general insurance. The writ petition is without any merit.
6. I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the
1st respondent.
7. The Bank has sanctioned ₹33,86,500/- to the petitioner as education loan under PNB Udaan Scheme (Studies abroad). According to the petitioner, the petitioner is eligible for ₹8,68,665/- as loan for the first Semester and ₹5,03,562/- for the second Semester. The Bank has disbursed only ₹2,15,000/- for the two Semesters. The 1st respondent submits that the Bank can reimburse the payments made six months prior to 22.10.2024 only.
8. It is to be noted that originally the loan was sanctioned as per Ext.P1 sanction order dated 31.10.2023. Thereafter, the 1st respondent insisted for financial commitments by the petitioner's parents. The petitioner had to approach this Court filing W.P.(C) No.26867/2024. It was thereafter the sanction was revalidated as per Ext.P3 order dated 22.10.2024.
9. The loan has been sanctioned as per a beneficial scheme for helping students to get higher education by studies abroad. Therefore, it would be unjust to deny disbursement of sanctioned loan to the petitioner on hyper technical grounds. In the circumstances of the case, I am of the view that the 1st respondent shall reconsider the request of the petitioner for disbursement of the sanctioned loan.
The writ petition is accordingly disposed of directing the Bank to disburse the loan amount to the petitioner in terms of the agreement treating 31.10.2023 as the date of sanctioning the loan. The petitioner shall be paid eligible fees paid by the petitioner within six months prior to
