(Prayer: Writ Petition filed under Article 226 of the Constitution of India, for the issuance of a Writ of Mandamus forbearing the respondents 1 to 6 from considering and granting approval, letter of permission, or sanction in favour of the 7th respondent for the starting of the Medical College under the name and Style “Nandivarman Medical College and Hospital” at the property of the Petitioner comprised in S.No. 810/1, 80/2,811/1 and 811/2 Uthukkadu Village, Walajabad Taluk, Kancheepuram District pending final determination of all issues in relation to TSA No. 535 and 555 of 2023 and SA No. 585 of 2023 on the file of the DRT-III,Chennai.)

1. This writ petition has been filed seeking a Writ of Mandamus to forbear the respondents 1 to 6 from granting approval, permission or sanction to the 7th respondent for establishing a medical college in the name and style of “Nandivarman Medical College and Hospital” at the petitioner’s property comprised in S.No. 810/1, 80/2,811/1 and 811/2 situated at Uthukkadu Village, Walajabad Taluk, Kancheepuram District pending adjudication of disputes before the Debts Recovery Tribunal.

2. The case of the petitioner, in brief, is that the petitioner is a public charitable educational trust running various educational institutions. The petitioner owns an extent of about 20 acres of land situated in Survey Nos. 810/1, 810/2, 811/1 and 811/2 at Uthukkadu Village, Walajabad Taluk, Kancheepuram District. It is stated that the petitioner had availed financial assistance from ICICI Bank and UCO Bank to the tune of Rs.24.50 crores, out of which a sum of about Rs.6.77 crores was outstanding as on 30.06.2016, as per the demand notice. Due to the alleged default, proceedings were initiated under the SARFAESI Act and the subject property was brought to auction. The auction culminated in issuance of sale certificate in favour of the 7th respondent on 04.05.2022.

3. Further, it is stated that the said auction and subsequent alienation in favour of the 7th respondent are under challenge before the Debts Recovery Tribunal in TSA Nos.535 and 555 of 2023 and S.A. No.585 of 2023. It is further stated that while the said proceedings are pending, the 7th respondent has approached the official respondents seeking approval to establish a Medical College in the subject property. In such circumstances, this writ petition has been filed with the aforesaid prayer.

4. Learned counsel for the petitioner contended that if such approval is granted, it would seriously prejudice the petitioner’s rights as well as rendering the proceedings pending before the DRTs become infructuous. He further submitted that due to pressure given by the 7th respondent, the respondents are processing the proposal for grant of necessary approval to permission to start the Medical College from the academic year 2026-2027 in a hurried manner. Therefore, he prayed before this Court that appropriate directions may be issued to the respondents 1 to 6 to defer or not to grant any approval pending disposal of the proceedings before the DRTs.

5. Per contra, the learned counsel appearing for the 7th respondent submitted that the 7th respondent is a bona fide auction purchaser who has purchased the property in proceedings initiated under the SARFAESI Act and a sale certificate has already been issued in its favour.

6. He further submitted that the petitioner had earlier challenged the SARFAESI proceedings by filing S.A. No.34 of 2022 before the Debts Recovery Tribunal-II, Chennai, and the Tribunal had passed a conditional order directing the petitioner to deposit a sum of Rs.10 Crores. Drawing the attention of this Court to the observations made therein, he pointed out that failure to such remittance, the respondent are at liberty to proceed further in accordance with law. He also submitted that since the petitioner has not complied with the said condition, the said application was dismissed on the next hearing date. Thereafter, the petitioner has filed subsequent TSA Nos.535 and 555 of 2023 and S.A. No.585 of 2023, which are stated to be vexatious and pending.

7. Learned counsel for the 7th respondent would contend that merely because such proceedings are pending, the 7th respondent cannot be deprived of its right to seek statutory approvals. He further submitted that there is no legal bar for the authorities to process the application submitted by the 7th respondent. Therefore, he prayed before this Court for issuance of appropriate directions in the above regard.

8. Learned counsel appearing for the respondents 2 and 3 submitted that the applications of the 7th respondent will be considered in accordance with law and if all statutory requirements are satisfied, appropriate orders will be passed.

9. This Court heard the submissions made by learned counsel on either side and perused the materials placed on record.

10. It is an admitted position that the subject property was brought to sale in proceedings under the SARFAESI Act and the 7th respondent has been issued with a sale certificate. It is also not in dispute that the petitioner has challenged the said proceedings before the Debts Recovery Tribunal, Chennai (DRT III) and the matters in TSA Nos.535 and 555 of 2023 and S.A. No.585 of 2023 are pending consideration.

11. It is further seen that earlier proceedings initiated by the petitioner in S.A. No.34 of 2022 were dismissed for non-compliance of the conditional order passed by the Tribunal directing the petitioner to deposit a sum of Rs.10 Crores.

12. As on date, there is no interim order or restraint order passed either by the Debts Recovery Tribunal or by any competent Court restraining the 7th respondent from dealing with the property or restraining the official respondents from considering the application submitted by the 7th respondent.

13. In the absence of any such restraint order, this Court is of the view that there is no legal impediment for the respondents 1 to 6 to process the application submitted by the 7th respondent for grant of necessary approvals, in accordance with law.

14. However, at the same time, since the proceedings challenging the SARFAESI action are pending before the Debts Recovery Tribunal, the interest of the petitioner requires to be safeguarded.

15. In view of the above, this Court directs the respondents 1 to 6 to process the application submitted by the 7th respondent and pass appropriate orders in accordance with law, if the 7th respondent satisfies all the statutory requirements.

16. It is made clear that any approval or permission granted in favour of the 7th respondent shall be subject to the outcome of the proceedings pending in TSA Nos.535 and 555 of 2023 and S.A. No.585 of 2023 before the Debts Recovery Tribunal, Chennai (DRT III) and any further orders that may be passed by the competent forum.

17. With the above observations and directions, this writ petition stands disposed of. No costs. Consequently, connected miscellaneous petitions are closed.