Indian Kanoon - Search engine for Indian Law

5. Normally, there cannot be any direction by way of a writ of mandamus to provide a loan to a particular party/borrower, which essentially comes within the realm of contract. The proposal when accepted, is put into shape as an agreement, followed by consequential steps, granting the loan subject to the agreement to have it repaid with interest in the manner specified. Whether a person is eligible to obtain the loan, what should be the extent of the loan, what should be the terms; whether any security is to be collected and if so, to what extent; what are the parameters to be observed, particularly when such loans are pursuant to specific Schemes formulated by the Government (sought to be implemented as part of national objective) giving appropriate directions through the RBI etc are to be considered by the contracting parties, i.e., borrower and bank. But the matter may require some judicial scrutiny if there is a challenge as to any deviation being made by the concerned banks, contrary to the mandate/ directives given by the RBI in promotion/implementation of the  W.P.(C) No. 21484 OF 2009 national objective/policy/scheme. The case of the petitioners is that the stand taken by the respondent Bank (SBI), refusing to extend the benefit of educational loan to the petitioners is quite contrary to the scheme and policy, which hence is required to be probed with a proper magnifying glass.