The petitioner availed an education loan of ₹7.2 lakhs on 3.1.2007 from the respondent Bank, for undergoing LLM Course in the United Kingdom. The Course was for a period of one year and a further period of one year was provided as the 'cooling period', during which time, no repayment is contemplated. The loan amount has to be repaid within 5 years thereafter. Thus the total loan period was seven years, which expired on 2.1.2014. The petitioner does not dispute the facts and figures. The prayer is to grant all benefits of waiver of interest as per Exts. P5 and P6 Scheme floated by the Bank, pursuant to the Reserve Bank of India guidelines and to extend the benefit of OTS to the petitioner.
2. Heard the learned counsel for the petitioner and the learned Senior Counsel for the respondent Bank.
3. The learned Senior Counsel for the respondent Bank points out that, the idea and understanding of the petitioner is quite wrong and misconceived. Ext.P5 is only an interim Budget Speech and the Bank has formulated the guidelines as borne by Ext.P6. Clause '7' of the said guidelines clearly shows that the benefit flowing from Ext.P7 is only in respect of loans availed for pursuing studies in India and the same is not applicable to the case of the petitioner, who availed the educational loan for pursuing such studies abroad. The learned counsel also points out that, the petitioner sought to clear the liability by availing the benefit of OTS Scheme, agreeing to satisfy a sum of ₹6 lakhs, which is far below the loan amount itself and hence not acceptable to the Bank.
4. The learned counsel for the petitioner seeks for some indulgence to enable the petitioner to wipe out the liability by way of reasonable instalments.
5. The learned Senior Counsel for the respondent Bank submits that, the total outstanding liability as on date is nearly ₹ 14,67,995/-.
6. After hearing both the sides, the writ petition is disposed of, directing the petitioner to satisfy the entire outstanding liability by way of 'eight' regular monthly instalments. The initial seven instalments shall be at the rate of ₹2 lakhs each, the first of which shall be effected on or before the 15th of December, 2014; followed by similar instalments to be effected on or before the 15th of succeeding months. The 8th instalment shall be the requisite amount so as to top up the figure to have the loan account closed. In the meanwhile, it is open for the petitioner to approach the Bank by submitting a concrete proposal for extending the benefit of OTS Scheme, upon which the same shall be considered and appropriate orders shall be passed intimating the petitioner as to the amount for which the entire liability could be closed, if the petitioner is eligible to have the OTS benefit. The amount satisfied by the petitioner in the meanwhile as instalments pursuant to this verdict, shall be given due credit against the total amount to be cleared by the petitioner under the OTS Scheme, if benefit of such Scheme is extended to the petitioner.
7. If any default is committed by the petitioner in the repayment of the liability as above, it will be open for the respondent Bank to proceed against the petitioner for realization of the entire amount in a lump, from the stage where it stands now. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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