Maximum Arc Ltd. A Company Incorporated Under Company Act 2013 v. Anna University Chennai Rep. By Its Vice Chancellor, Kotturpuram, Chennai
2019-05-10
S.VAIDYANATHAN
body2019
DigiLaw.ai
JUDGMENT : Mr. M. Vijayakumar, learned Standing Counsel takes notice for R1. Mr.Pushpakaran, learned Standing Counsel takes notice for R2. 2. The Petitioner has filed the Writ Petition, seeking to direct the 1st respondent to disaffiliate the colleges of the 2nd respondent and to prevent and restrain admission of students in the 2nd respondent colleges form this academic year 2019-2020. Along with the Writ Petition, the Present Miscellaneous Petition has been filed, seeking to restrain the 2nd respondent from admitting students from this Academic Year 2019-2020, pending disposal of the main Writ Petition. 3. It is the case of the Petitioner that the 2nd Respondent is an Educational Trust, running Annai Medical College affiliated to Dr.MGR Medical University and Arignar Anna Institute of Engineering and Technology and Arignar Anna Institute of Management Studies and Computer Applications, affiliated to the 1st Respondent. The 2nd Respondent, having availed various loans from the Central Bank of India and Bank of India and having stepped into the shoes of the Bank, has been taking steps to auction its movable and immovable properties and since the Petitioner had acquired the debt of the 2nd Respondent from the Bank of India vide Assignment Agreement dated 02.01.2019, the 2nd Respondent should not be allowed to admit students, as the same will create chaos and confusion in the minds of the students. Therefore, having left with no other option, the Petitioner has approached this Court by way of filing the Writ Petition. Unless an interim order is granted, restraining the 2nd respondent from admitting students from this Academic Year 2019-2020 onwards, there are chances of the 2nd Respondent in misusing the cash flows of its Trust, which will not only be detrimental, but also prejudicial to the Petitioner. 4. It is brought to the attention of this Court by the Petitioner that taking note of the plight of the Students, some of the students have been directed to be admitted in different Colleges, on the basis of the orders of this Court dated 22.12.2017 passed in W.P.Nos.25215 of 2017, etc batch and that the contention of the 2nd Respondent, that they are willing to pay the balance amount, can only be taken as a statement made in the air and written on the water. 5.
5. From the pleadings put forth on either side, it could be seen that pursuant to non-repayment of loans by the 2nd Respondent for years together, availed from various Banks, SARFAESI proceedings have been initiated against the 2nd Respondent and the interim order passed by the Debts Recovery Tribunal-II, Chennai in I.A.Nos.290 to 293 of 2017 in O.A.No.496 of 2016 has not been complied with. It is needless to mention here that the 2nd Respondent, being a Religious Educational Trust, is expected to not only give quality education, but also preach moral values of life to its students. But to the contrary, there is a continuous default in repayment of loans, that the interim order of the Tribunal has not been complied with and that there is already an order of this Court as early as on 22.12.2017. 6. Considering the totality of the circumstances, this Court is of the view that if the 2nd Respondent is permitted to admit students for the academic year 2019 – 2020, the future of the students will definitely be in peril and they will be let down. Moreover, this Court do not want the students to again knock at the doors of this Court, seeking admission in different colleges, as in the case of the previous batch of students (cited supra). Therefore, in the interest of justice, more particularly the Students, there shall be an order of interim injunction, restraining the 2nd Respondent from admitting students from this Academic Year 2019-2020 onwards, pending disposal of the main Writ Petition. Further, the 1st Respondent is directed to take steps to disaffiliate the colleges of the 2nd Respondent. Since the 2nd Respondent has consented to clear the entire dues, it is open to the Petitioner to consider the said request. List this matter on 07.06.2019 for filing counter by the Respondents.