KOCHI: The Kerala High Court on Friday dismissed a petition challenging the state government’s nod for a Rs 130 crore loan to the KSRTC from Pathanamthitta district cooperative bank.The petitioner - M N Vaishakha Kumar, leader of All Kerala District Cooperative Bank Employees - contended the decision is illegal since loans or advance can be provided to bank members alone. The petitioner said the bank’s maximum lending limit, according to the bylaw, is only Rs 40 lakh. He also contended the KSRTC is a sinking PSU. Rejecting the plea the court said the petitioner failed to make out any case of illegality.