The Allahabad High Court has sought responses from all respondents in a writ petition concerning an overseas education consultancy, an education loan and the alleged impact of the loan transaction on a parent’s CIBIL score.
A Division Bench of Justice Prakash Padia and Justice Vivek Saran passed the order on September 16, 2026, observing that the issue raised may have wider relevance because of the increasing use of online calls, messages, web links and OTP-based consent by service providers.
Background
According to the submissions recorded by the Court, Vallabhi Yadav sought assistance for pursuing education overseas. She was contacted by personnel associated with Leverage Education, who offered assistance in finding an overseas educational institution and arranging funds for fees and other requirements.
A loan was subsequently obtained through web links and OTP-based acceptance. However, after an appropriate educational institution could not be secured for the academic session, a request was made for cancellation of the loan facility.
The petitioners submitted that the loan was initially not cancelled. The second petitioner, Vallabhi Yadav’s father, then requested his bank to stop the repayment payments. The loan was later cancelled, but the petitioners stated that the resulting default caused his CIBIL score to fall from 900 to 681, making it difficult to obtain another education loan.
The Bench noted that the matter concerns practices existing in the public domain and could affect a wider section of people.
"Since the matter is relating to such activities, which are existing in public domain and affects the public at large and it is an open truth that service providers often make calls and send text messages to those who have searched certain online contents and take consent online through OTP or by sharing web links, therefore, we are of the prima-facie opinion that such an issue need to be adressed vis-a-vis the merits of the matter."
The Court directed fresh service of notices on respondents who had not appeared despite service. It also permitted the learned Amicus to serve notice on counsel appearing for the Reserve Bank of India before the Court. All respondents, including the State of Uttar Pradesh, were granted two weeks to file their responses or counter affidavits.
The matter has been listed for October 13, 2026, along with a fresh office report.
Case Details
Case Title: Vallabhi Yadav And Another v. Nirdeshak/Prabhandhak Leverage Edu And 5 Others
Case Number: Writ-C No. 31595 of 2026
Judges: Justice Prakash Padia and Justice Vivek Saran
Decision Date: September 16, 2026
