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SARFAESI Property Dispute Cannot Stall College Affiliation Process: Madras HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 14162
Case Name
Peri college of Pharmacy Vs Pharmacy council of India (Madras High Court)
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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.

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Author Info

CA Sandeep Kanoi
Qualification: Graduate, CA in Job / Business, DD
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 24,191

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