- (1.) Leave granted.
(2.) The 1st respondent, which is an educational trust running a medical college and an engineering college, had availed loans from the Central Bank of India and Bank of India. It had mortgaged certain properties as security for repayment of the loans received. As far as the Bank of India is concerned, it assigned the debt owed to it to the appellant herein. The appellant invoked the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and prayed that since the Trust had failed to discharge its duties, it be restrained from admitting students for the academic year 2019-2020, because that would affect the value of the property and also delay the sale of the property. It was also contended that the future of the students itself would be in jeopardy if they are admitted and later on the properties (colleges) were ordered to be sold.
(3.) The Single Judge vide order dated 10.05.2019, passed an order of interim injunction restraining the 1st respondent from admitting students from the academic year 2019-2020 and also directed the University, i.e., Respondent No.2 herein, to initiate steps for disaffiliation of the two colleges. Aggrieved by the said order, the 1st respondent filed Letters Patent Appeal (LPA), which has been allowed, the interim order has been set aside and the matter has been remitted to the Single Judge for deciding the writ petition on merits.;