Order restraining Trust on med, engg seats quashed

As per the case, the trust had availed credit facilities from Central Bank of India and Bank of India and had mortgaged its properties as security for the borrowing. The Bank of India had assigned the debt owed to it by the trust to Maximum Arc Limited, invoking Section 5 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act 2002.

Contending that the trust had defaulted in paying the dues, Maximum Arc Limited moved a writ petition seeking to direct Anna University to disaffiliate the colleges of the Trust and prevent and restrain admission of students in those colleges from 2019-2020.

When the matter came up before the vacation sitting of this court on May 10, Justice S Vaidyanathan passed an order of interim injunction restraining the trust from admitting students and directed Anna University to disaffiliate the colleges. Thereafter, the single judge posted the matter to June 7 for filing of counter by the Trust.

However, the division bench comprising Justice RMT Teekaa Raman and Justice P D Audikesavalu before whom the intra court appeal arising out of the single judge’s order came up said, “The interim order passed has the effect of granting the relief sought in the writ petition itself without giving adequate opportunity to the Trust to file its counter affidavit and place its contentions.”

“In view of this, 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.

Senior Counsel P Wilson appearing for the Trust had submitted that Maximum Arc Limited, who is merely as assignee of the debt from Bank of India cannot seek any order preventing the trust from admitting students in the colleges run by it.