Peri college of Pharmacy Vs Pharmacy council of India (Madras High Court)
Summary: Madras High Court directed the Tamilnadu Dr.M.G.R. Medical University to conduct the Provisional Affiliation Inspection and pass appropriate orders regarding affiliation of the petitioner college for Pharm.D and M.Pharm programmes for Academic Year 2026–27 within two weeks. The petitioner, already offering a B.Pharm course affiliated with the University, had applied to introduce M.Pharm (Pharmaceutical Analysis), M.Pharm (Pharmaceutics) and Pharm.D courses. Though the University issued Consent of Affiliation, a formal Provisional Affiliation Order was still required, leading the petitioner to seek inspection. The dispute arose because the managing Trust had availed credit facilities from Indian Overseas Bank between 2011 and 2016 for educational infrastructure.
After the account became an NPA and SARFAESI proceedings commenced, the Trust entered into an OTS for Rs. 46 crore and paid Rs. 24 crore, but defaulted on the remaining Rs. 22 crore. The Bank thereafter conducted an e-auction on 16.07.2025 and issued a Sale Certificate on 23.07.2025 in favour of SRM Institute of Science and Technology. The Trust challenged the auction in S.A.No. 493/2025 before DRT-III, Chennai, which stayed the sale proceedings subject to deposit of Rs. 8.28 crore. The Trust complied with that condition, the stay continued to operate and the main application remained pending. The University nevertheless declined to process the affiliation request because physical possession of the property was disputed.
The High Court held that since the sale under the SARFAESI execution proceedings stood stayed by the competent Tribunal and the petitioner continued to hold physical possession of the institutional infrastructure, there was no legal impediment to processing its application. A dispute awaiting final adjudication before the Debt Recovery Tribunal could not be used by the University to stall academic growth where the institution otherwise satisfied statutory educational norms. The petitioner’s representation dated 11.08.2026 was therefore required to be considered through the requisite inspection, subject to fulfilment of all conditions under the University Statutes. The Court further held that, since the underlying auction sale certificate had effectively been stayed by the DRT, revenue and educational authorities need not defer statutory inspections merely because of third-party complaints.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition has been filed seeking a direction to the 2nd respondent to consider the petitioner’s representation dated 11.08.2026, and forthwith arrange for a Provisional Affiliation Inspection and grant provisional affiliation to the petitioner college for the Pharm.D and M.Pharm (Pharmaceutics and Pharmaceutical Analysis) programmes for the Academic Year 2026–27.
2. The learned counsel appearing for the petitioner submitted that the petitioner college is an educational institution imparting pharmacy education and currently offering a B.Pharm course affiliated with the 2nd respondent University. For the Academic Year 2026–27, the petitioner applied for the introduction of M.Pharm (Pharmaceutical Analysis), M.Pharm (Pharmaceutics), and Pharm.D courses with the approved intake of seats. The 2nd respondent University subsequently issued a Consent of Affiliation permitting the petitioner college to start the Pharm.D and M.Pharm Degree courses in the two specified branches. Since a Consent of Affiliation does not inherently confer a right upon the institution to commence courses until a formal Provisional Affiliation Order is granted, the petitioner submitted an application dated 02.07.2026 requesting a Provisional Affiliation Inspection.
3. The fact remains that the managing Trust had availed credit facilities from the Indian Overseas Bank between 2011 and 2016 for building and expanding its educational infrastructure. Due to financial difficulties, the loan account was classified as a Non-Performing Asset (NPA), triggering SARFAESI proceedings. The Trust subsequently entered into a One-Time Settlement (OTS) for Rs. 46,00,00,000 with the Bank, out of which Rs. 24,00,00,000 was duly remitted. Owing to a default in remitting the remaining balance instalment of Rs. 22,00,00,000, the Bank conducted an E-auction on 16.07.2025 and issued a Sale Certificate on 23.07.2025 in favour of the SRM Institute of Science and Technology.
4. Challenging the auction sale, the Trust preferred S.A.No. 493/2025 before the Debts Recovery Tribunal-III, Chennai, which granted an interim stay of the sale proceedings on the condition that the Trust deposit Rs. 8.28 Crores. The Trust has fully complied with this conditional order, the interim stay remains operative, and the main application is pending final adjudication. Consequently, the petitioner continues to remain in lawful possession and administration of the institutional premises. In the interim, the SRM Institute preferred W.P.No. 21346/2026 seeking directions for disaffiliation, de-recognition, and the stoppage of counselling/admissions for the PERI Group of Institutions for the Academic Year 2026–27. The said writ petition was disposed of by directing the SRM Institute to agitate all its grievances within the pending proceedings before the DRT-III, Chennai.
5. Despite these facts, the 2nd respondent failed to process the petitioner’s application for an inspection. The petitioner then submitted a detailed representation dated 11.08.2026 to the 2nd respondent to arrange the inspection; however, the 2nd respondent has neither conducted the inspection nor passed orders on the provisional affiliation to date.
6. The learned Standing Counsel appearing for the 2nd respondent University submitted that since the physical possession of the property is under dispute, the University is not in a position to consider the petitioner’s request for provisional affiliation for the current academic year.
7. Heard both sides and perused the materials available on record.
8. Since the sale under the SARFAESI execution proceedings stand stayed by a competent tribunal and the petitioner continues to hold physical possession of the institutional infrastructure, this Court finds no legal impediment preventing the respondents from processing the application. A dispute pending final adjudication before the Debt Recovery Tribunal cannot be used as a tool by the University to stall academic growth, provided the institution otherwise satisfies the statutory educational norms. Therefore, the request / representation of the petitioner dated 11.08.2026 for provisional affiliation must be considered by conducting the requisite inspection, subject to the petitioner fulfilling all conditions prescribed under the University Statutes.
9. In view of the matter, the 2nd respondent University is directed to conduct the Provisional Affiliation Inspection and pass appropriate orders regarding the grant of affiliation to the petitioner college for the Pharm.D and M.Pharm programmes for the Academic Year 2026–27 within a period of two weeks from the date of receipt of a copy of this order. Insofar as the objections raised regarding the SRM Institute are concerned, since the underlying auction sale certificate has been effectively stayed by the DRT, the revenue and educational authorities need not defer their statutory inspections based on those third-party complaints.
10. This Writ Petition stands disposed of with the above directions. No costs.
