MUNNANGI BHASKARA RAO Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE unsuccessful complainant is the appellant.

(2.) THE opposite party sanctioned educational loan of Rs. 1,40,000 to the son of the complainant which was to be paid in annual installments. The complainant and his wife stood as sureties for payment of the loan. The title deeds standing in the name of complainant's wife Subbayamma, have been hypothecated with opposite party and they are still with them. The complainant's son had completed his B.E. course and in January, 2007 left for the United States for further studies. As per the agreed terms towards the discharge of the loan the principal amount of loan has to be discharged in one year after the completion of the complainant's son's studies and the interest is payable annually. On 15.3.2007 the opposite party got published notice in the Eenadu daily, Prakasam Edition whereunder the names of 27 defaulters including that of the complainant's was published showing them as chronic Defaulters. It is contended that the opposite party had not informed nor sent any notice to the complainant of the due amount payable. On 20.2.2007 the complainant paid a sum of Rs. 15,000, on 17.5.2007 the complainant paid Rs. 30,000, again on 30.5.2007 the complainant paid Rs. 50,000.

(3.) THE opposite party resisted the plea contending that the loan is for the purpose of expenses relating to the education of B. Tech., only. As per Clause 5 of the terms and conditions of agreement, the student has to take up his studies seriously, work hard and try his best to maintain a good academic record and intimate to the bank the results of periodic tests/examinations. The complainant's son had not done it. The principal borrower violated the conditions of the agreement because his where abouts not known and there is no intimation regarding his foreign studies. Thus the entire loan is over due. As per the terms and conditions of the agreement, the loan is granted jointly to the student and guardian and interest is to be debited quarterly and interest is to be serviced by the parent during the study period. As per the Clause 9 of the agreement the student has under taken higher studies in India and it intends to go abroad for further studies or for taking up a job, he has to intimate the bank immediately and thereupon the bank may decide whether the loan has to be repaid in full before the student leaves the country or whether to allow the loan to be continued in revised terms and conditions.