Published: 31st May 2019
Vacation bench of the Madras High Court quashes single judge order restraining admission of students to engg college
The bench of Justices RMT Teekaa Raman and P D Audikesavalu quashed Justice S Vaidyanathan's order, while allowing a writ appeal from the Trust, by its trustee J Kumaran, on May 22 last
A vacation bench of the Madras High Court has set aside the orders dated May 10 last of a vacation judge, who had restrained Sri Devi Karumariamman Educational Trust in Valasaravakkam from admitting students in its engineering college for 2019-20.
The bench of Justices RMT Teekaa Raman and P D Audikesavalu quashed Justice S Vaidyanathan's order, while allowing a writ appeal from the Trust, by its trustee J Kumaran, on May 22 last.
According to senior advocate P Wilson, the Trust had availed credit facilities from Central Bank of India and Bank of India and mortgaged its properties as security for that borrowing. Bank of India had assigned the debt owed to it by the Trust to Maximus Arc Limited, invoking Sec. 5 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act.
Contending that the Trust had defaulted in paying the dues under the credit facilities availed from the Bank of India and it had become inevitable to enforce such securities for realising the dues, Maximus Act moved the High Court with a writ petition for a direction to the Anna University to disaffiliate the engineering college of the Trust and restrain it from admitting students in it from 2019-2020.
When the matter came up on May 10 last, Justice Vaidyanathan had restrained the Trust from admitting the students from 2019-2020 onwards, directed the University to disaffiliate the engineering college and posted the matter for further hearing on June 7. Aggrieved, the Trust preferred the present appeal.
Trust senior counsel Wilson strenuously urged that Maximus Arc, who is merely an assignee of the debt from Bank of India, cannot seek any order for preventing his client from admitting students in its engineering college. The properties given as mortgage security for the borrowing by the Trust from the bank, does not include the college.
Accepting Wilson's arguments, the bench observed that on a perusal of the order impugned in this appeal, it is seen that there has not been any discussion or finding on the rival contentions which has material bearing to decide whether the petitioner (Maximus Arc) was entitled to the relief. That apart, the interim order passed was having the effect of granting the relief sought for in the writ petition itself without giving adequate opportunity to the Trust. "In that view of the matter, we set aside the order dated May 10....." the bench said and remitted the matter back to the writ court for fresh decision after affording opportunity to all parties to place their respective contentions.