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A Division Bench consisting of Justice Sanjay Dhar and Justice Puneet Gupta refused to direct a bank to release an education loan instalment to pay the fee of a medical aspirant and observed that the Writ Court has limited jurisdiction in contractual matters.
According to the facts of the case, a student had secured admission in a Community Based Medical College, Bangladesh but due to delay in the first instalment from the bank, she couldn’t secure a seat. However, the bank transferred that loan instalment later into the same college. The petitioner herself transferred that amount from the college into another college where she got MBBS admission later. When the second instalment was due, the bank refused to pay it which become the subject matter of the writ petition.
Under ordinary circumstances, the remedy available for a party complaining of breach of contract lies for seeking damages or for enforcing specific performance of terms of the contract in a civil court. It is only in cases where a Public Authority has acted arbitrarily or unreasonably or with mala fide intention that the Writ Court would step in.
The respondent contented that the transfer of amount was made without information to it and the request of the petitioner could not be accepted and also submitted that the loan was sanctioned in favour of the petitioner for her admission at Community Based Medical College and not to Khwaja Younus Ali Medical College. The bank cannot release loan because it is against the terms and conditions of the sanction.
The court held that the action of the respondent is not releasing the second instalment appears to be justified and cannot be termed arbitrary or mala fide since is purely a contractual matter governed by the terms and conditions of the loan agreement.
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