NIKHIL MATHEW Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Petitioner availed a career loan from State Bank of India (the Bank) during 2007 for pursuing pilot training course. The father of the petitioner who is an officer of the Bank was the co-applicant of the loan. It is stated by the petitioner that he could not secure a suitable job on completion of the course and could not therefore liquidate the loan liability as agreed. Nevertheless, it is stated by the petitioner that he has paid during the last 10 years about Rs.26 lakhs in the loan account. While so, the Bank has issued Ext.P6 communication to the petitioner informing him that it has brought into force a One Time Settlement Scheme called 'Rinn Samadhan-II Scheme' (the Scheme) ; that the Scheme offers significant reliefs to the borrowers and that the petitioner is free to avail the benefits of the Scheme for the purpose of settling his loan liability.

(2.) A counter affidavit has been filed by the Bank detailing the stand taken in Ext.P7 communication. In the counter affidavit, it is stated by the Bank, among others, that the officers of Bank who are otherwise capable of settling their loan liability are not entitled to take advantage of the schemes intended for borrowers who are otherwise not capable of settling their liability, especially when such loans are sufficiently secured.

(3.) Heard the learned counsel for the petitioner as also the learned counsel for the Bank.