CHENNAI: The Madras High Court on Friday imposed exemplary costs of Rs 25,000 on the Kelur branch of Indian Overseas Bank for refusing loan to an engineering aspirant, daughter of a farmer.The banks would afford loans and letters of understanding (LoUs) to billionaire businessmen and affluent, even without sufficient collateral security and would take action only when the scam spun out of control. They adopt a different yardstick in the case of the poor, a Division Bench observed.
“The banks are not concerned with the directives of Central government and Reserve Bank of India to help the poor students. Such instructions are violated with impunity. The present case is a classic example as to how the bank dragged the daughter of a poor farmer belonging to a most backward community from pillar to post, without considering her application for a loan of Rs 3.45 lakh,” the Bench said. The Bench was dismissing an appeal from the bank assailing the order of a single judge.
“The bank by filing the intra-court appeal against the order passed by a single judge, succeeded in dragging the matter till the completion of the course so as to make the matter infructuous. The Himalayan arrears in courts and the inability of the system to prioritise the cases also contributed for the delay and denial of justice to the poor student,” the Bench bemoaned.The banks have no case by saying that the education loan defaulters had contributed for the accumulation of bad loans.
A cumulative total of more than 50 companies or groups, each with over Rs 250 crore of loan arrears classified as wilful default and working out to about Rs 48,000 crore, are safely in existence, the Bench said. The country would be denied the service of scientists, doctors, engineers and other professionals, in case financial assistance is not given to deserving students to come up in life. The educated youth are an asset to the nation and their talents can be utilised for the country’s growth. Banks must realise this fundamental fact. Holding that the appeal is nothing, but an abuse of process of court, the Bench said and dismissed the plea.