Arignar Anna Institute Of Science And Technology v. Maximus Arc Limited

IN THE HIGH COURT OF JUDICATURE AT MADRAS

( Civil Appellate Jurisdiction ) Wednesday, the Eighteenth day of May Two Thousand Twenty Two PRESENT THE HON'BLE MR.JUSTICE S.M.SUBRAMANIAM and THE HON`BLE MR.JUSTICE J.SATHYA NARAYANA PRASAD CMP.Nos.8826 and 8655 of 2022 in WA.No.1355 of 2022 M/S.ARIGNAR ANNA INSTITUTE [PETITIONER IN CMP.NO.8826/2022 OF SCIENCE AND TECHNOLOGY, AND 1ST RESPONDENT IN CMP.NO.8655/2022] REP. BY ITS VICE CHAIRMAN, PENNALUR, SRIPERAMBUDUR, KANCHEEPURAM-602 117.

Vs 1 MAXIMUS ARC LIMITED, [1ST RESPONDENT IN CMP.NO.8826/2022 A COMPANY INCORPORATED UNDER AND PETITIONER IN CMP.NO.8655/2022] COMPANIES ACT 2013, HAVING REGISTERED AND CORPORATE OFFICE AT, 59A-18/1A-5A, 3RD FLOOR, SRI PLAZA, TEACHER'S COLONY, PATAMATA, VIJAYAWADA-520008.

REP. BY ITS VICE PRESIDENT, K.HARI KRISHNA.

2 ALL INDIA COUNCIL FOR TECHNICAL [2 TO 8 RESPONDENTS IN BOTH THE EDUCATION, NELSON MANDELA MARG, PETITIONS] VASANT KUNJ, NEW DELHI - 110 070.

3 THE DIRECTOR, DIRECTORATE OF TECHNICAL EDUCATION, 53, SARDAR PATEL ROAD, ANNA UNIVERSITY GUINDY, 4 THE REGISTRAR, CHENNAI -600 025.

5 THE DIRECTOR, CENTRE OF AFFILIATION, ANNA UNIVERSITY,

6 THE CONTROLLER OF EXAMINATIONS, 7 THE DIRECTOR, STUDENTS AFFAIRS, ANNA UNIVERSITY, 8 B.JAGADEESAN Petition praying that in the circumstances stated therein and in the affidavit filed therewith the High Court will be pleased To vacate the interim stay in C.M.P.No.8655 of 2022 in W.A.No.1355 of 2022 by order dated 11.05.2022 (in CMP.No.8826 of 2022) and; ii) To pass an order of Interim Stay of the effect, implementation and operation of the order passed in WP.No.24639 of 2021 dated 24.11.2021 (in CMP.No.8655 of 2022) pending disposal of the main WA.No.1355 of 2022.

Order : These petitions coming on this day for hearing upon perusing the petition and the affidavit filed in support thereof and upon hearing the arguments of MR.N.MURALI KUMARAN, Advocate for MR.R.GOPINATH, Advocate for the PETITIONER IN CMP.NO.8826/2022 AND 1ST RESPONDENT IN CMP.NO.8655/2022 and of M/S.NITHYAESH NATARAJ, Advocate for M/S.NITHYAESH AND VAIBHAV, Advocate for the 1ST RESPONDENT IN CMP.NO.8826/2022 AND PETITIONER IN CMP.NO.8655/2022 and of MR.R.BABUMANOHAR, Advocate for the 2nd Respondent and of MR.P.ANANDAKUMAR, Government Advocate on behalf of the 3rd Respondent and of MR.V.MEENAKSHI SUNDARAM, Advocate for the 4 to 7 Respondents in both the petitions, the court made the following order:- [Order of the Court was made by S.M.SUBRAMANIAM,J.] The Civil Miscellaneous Petition in C.M.P.No.8826 of 2022 has been filed to vacate the interim stay in C.M.P.No.8655 of 2022 in W.A.No.1355 of 2022 by order dated 11.05.2022.

2. The vacate interim stay petition has been instituted by the Arignar Anna Institute of Science and Technology, who is the first respondent in the Writ Appeal. The writ petition was filed by the first respondent/Arignar Anna Institute of Science and Technology, questioning the orders passed by the Directorate of Technical Education. Final order has been passed by the writ Court on 24.11.2021, which reads as follows:

" 17. In view of the above submissions made by the Learned Counsel for the petitioners and learned Additional Advocate General for respondents, this Court is not inclined to interfere with the impugned order passed by the 2nd respondent. However, the 2nd respondent shall not disturb the students, who want to continue their studies in the petitioner institution and only such of those students who are willing to pursue their studies in some other institution may be transferred forthwith and the petitioner institution is directed to return the original certificates, transfer certificates, supporting documents, particulars of attendance of the said students for the current semester from the date of commencement of classes till the date of relief to the institution to such of those students who are to be transferred within a period of two weeks from the date of receipt of a copy of this order.

18. With the above direction, the writ petition is disposed of."

3. The impugned orders passed by the Directorate of Technical Education had been upheld by the writ Court and certain directions are issued to protect the interest of the students, studying in the first respondent educational institution.

4. The appellant in the present writ appeal / Maximus ARC Limited is the secured creditor and is an asset reconstruction company.

5. The learned counsel appearing on behalf of the appellant mainly contended that the first respondent institution has borrowed a huge sum by way of loan and they are liable to pay more than a sum of Rs.340 Crores as of now including interest etc.,

6. It is contended that the institution has committed many irregularities and without Affiliation, admitted the students and actions were also initiated by Anna University and as of now, they are not holding Affiliation to admit the students in the institution. Therefore, the interest of the appellant is to be protected for recovery of the dues from the first respondent institution.

7. The vacate stay petitioner contended that the appellant is no way connected with the admission of students in the first respondent institution and the final order in the Writ petition Nos.24639 and 24644 of 2021 was passed on 24.11.2021 and the writ appeal has been filed after a lapse of about five months and an interim stay was obtained without placing the entire facts. It is contended that the appellant in the writ appeal cannot be construed as an aggrieved person with reference to the final orders passed in the writ petition, which is under challenge in the writ appeal.

8. The learned counsel appearing on behalf of the Anna University made a submission that the first respondent institution is disaffiliated from the Academic Year 2021-22 and as of now, the first respondent institution cannot admit students in the college. Therefore, the students already admitted in the Affiliation was in force, are continuing the courses in the first respondent institution. It is for the Anna University to take decision in respect of the students, who are continuing in the first respondent institution, considering the fact that the first respondent possessed Affiliation, when such students were admitted in several courses. It is further contended that the first respondent institution has already been placed under 'No Admission Category' for the Academic Year 2021-22 onwards and therefore, the first respondent is restrained from admitting students from the Academic Year 2021-22.

9. Considering the arguments as advanced by the respective learned counsels appearing on behalf of the parties to the lis, we are of the opinion that the final order in the writ petition had been passed on 24.11.2021 and the impugned orders passed by the Directorate of Technical Education were upheld. The Court, in order to protect the interest of the students, issued further directions, providing option to the students to continue in the first respondent institution and in respect of students, who are not willing to pursue their studies in the same institution, they may be transferred forthwith to any other institution for continuance of their courses. The directions are issued to protect the interest of the students admitted in the first respondent institution, more specifically, when the institution possessed Affiliation.

10. As far as the appellant in the writ appeal is concerned, it is an asset reconstruction company. The appellant is the assignee of the loan granted by the Central Bank of India. Therefore, they are empowered to invoke the terms and conditions of the contract for the recovery of dues from the first respondent institution.

11. The learned counsel appearing on behalf of the appellant in the writ appeal made a submission that the actions are initiated to recover the dues by following the procedures as contemplated under law and by invoking the terms and conditions of the contract between the parties.

12. This being the factum established, in the event of continuance of interim stay, the same would cause prejudice to the interest of the students, who were already admitted by the first respondent institution pursuant to the affiliation, which were in existence during the relevant point of time and such students, who were admitted, must be allowed to continue their course and complete the same and their interests are to be protected. The Anna University has to take all necessary actions in accordance with law and as per the AICTE Regulations.

13. As far as the appellant in the writ appeal is concerned, they are no way connected with the admission of students or the directions issued by this Court in W.P.No.24639 of 2021 dated 24.11.2021 and their cause is independent and as rightly pointed out by the appellant, they have already initiated action to recover the dues with reference to the terms and conditions of the contract.

14. Thus, we are of the considered opinion that the interim stay granted would cause certain prejudice to the interest of the students, who are continuing their respective courses in the first respondent institution. Thus, the interim stay granted in order dated 11.05.2022 in C.M.P.No.8655 of 2022 in W.A.No.1355 of 2022 stands vacated and consequently, the C.M.P.No.8655 of 2022 stands dismissed. The parties are at liberty to raise all the grounds at the time of final hearing of the writ appeal.

15. With this liberty, the Civil Miscellaneous petition in C.M.P.No.8826 of 2022 stands allowed.

-sd/- 18/05/2022 / TRUE COPY / Sub-Assistant Registrar ( Statistics / C.S. ) High Court, Madras - 600 104.

TO 1 ALL INDIA COUNCIL FOR TECHNICAL EDUCATION, NELSON MANDELA MARG, VASANT KUNJ, NEW DELHI - 110 070.

2 THE DIRECTOR, DIRECTORATE OF TECHNICAL EDUCATION, 53, SARDAR PATEL ROAD, ANNA UNIVERSITY, GUINDY, CHENNAI - 600 025.

3 THE REGISTRAR, 4 THE DIRECTOR, CENTRE OF AFFILIATION, ANNA UNIVERSITY, 5 THE CONTROLLER OF EXAMINATIONS,

6 THE DIRECTOR, STUDENTS AFFAIRS, ANNA UNIVERSITY, C.C. to MR.R.GOPINATH, Advocate SR.NO.4033/2022 Order in CMP.Nos.8826 and 8655 of 2022 in WA.No.1355 of 2022 Date :18/05/2022 From 26.2.2001 the Registry is issuing certified copies of the Interim Orders in this format PA (23/05/2022)