P KRISHNAMURTHY Vs. UNION OF INDIA

JUDGEMENT

(1.) THE second petitioner is the son of the first petitioner. He joined M.B.B.S. Course in Melmaruvathur Adhiparasakthi Institute of Medical Science and Research, Melmaruvathur during the academic year 2010-2011. THE course is of five years. THE first petitioner, being the father of the second petitioner, has applied for educational loan for a sum of Rs.10,00,000/- to the second respondent Bank for his son to pursue the M.B.B.S. Course, wherein the second petitioner is the joint applicant. However, their request for educational loan was declined by the second respondent Bank vide letter dated 16.11.2010 stating as follows: "Applicant Mr.P.Krishnamurthy is a defaulter. Suit has been filed for Rs.6.44 lacs with District Court Dharmapuri for non repayment of the Dues for loan taking in the year 1998, the interest and credit worthiness of the borrower is not satisfactory."

(2.) THE petitioners have filed the present writ petition seeking to quash the letter dated 16.11.2010 of the second respondent and also sought for a direction to the respondents to consider their educational loan application dated 18.10.2010.

(3.) THIS Court pointed out that in the case of educational loan, the concerned party is a student, then recovery could be made against the student after he/she completed his/her studies and the educational loan could not be denied on the ground that the father/mother of the student is a defaulter, if security in the form of property is provided. It was also pointed out that the educational loan scheme provides for payment of loan upto Rs.4,00,000/- without any surety.