Chennai: The Madras high court has set aside an order of a single judge, which restrained Sri Devi Karumariamman Educational Trust from admitting students in the colleges, run by it, from the academic year 2019-2020 onwards, besides directing Anna University to take steps to disaffiliate the colleges run by the Trust.
The vacation bench comprising Justices RMT. Teekaa Raman and P. D. Audikesavalu set aside the order dated May 10, 2019 and remitted the matter back to the writ court for fresh decision after affording opportunity to all parties to place their respective contentions.
The bench allowed the appeal filed by Sri Devi Karumariamman Educational Trust, challenging the order of the single judge.
Originally, the Trust, which was running Annai Medical College and Arignar Anna Institute of Engineering and Technology and Arignar Anna Institute of Management Studies and Computer Applications, had availed credit facilities from Central Bank of India and Bank of India and had mortgaged its properties as security for that borrowing. Bank of India had assigned the debt owed to it by the Trust to M/s Maximum ARC Ltd. Contending that it has become inevitable to enforce such securities for realizing the dues, the Maximum ARC Ltd filed a petition, to disaffiliate the colleges run by the Trust and to restrain the Trust from admitting the students from the academic year 2019-2020 onwards.
Justice S.Vaidynathan had on May 10 granted an interim injunction and directed Anna University to take steps to disaffiliate the colleges run by the Trust. Aggrieved, the Trust filed the present appeal.
Senior counsel P.Wilson, appearing for the Trust, submitted that the Maximum ARC Ltd, which was merely an assignee of the debt from Bank of India, cannot seek any order for preventing the Trust from admitting students in the colleges run by it. The properties given as mortgage security for the borrowing by the Trust from the Bank of India does not include the Engineering college, he added.
Disputing the contention, senior counsel V.Karthik, appearing for the Maximum ARC Ltd, submitted that the engineering college forms part of the mortgage security and the Maximum ARC Ltd was fully justified in seeking the relief, which has been granted by the court so as to realize the debut due by enforcing the mortgage security in a smooth manner without any hindrance from the Trust under the pretext that the interests of the students would be affected during the forthcoming academic year, he added.
Allowing the appeal, the bench said on a perusal of the order, it was seen that there has not been any discussion or finding on the aforesaid rival contentions, which has material bearing to decide whether Maximum ARC Ltd was entitled to the relief that had been sought. That apart, the interim order has the effect of granting the relief sought in the petition itself without giving adequate opportunity to the Trust to file its counter affidavit and place its contentions. “In that view of the matter, we set aside the order dated May 10 and remit the matter to the writ court for fresh decision after affording opportunity to all parties to place their respective contentions”, the bench added.
