{"id":129682,"date":"2017-05-08T18:35:30","date_gmt":"2017-05-08T13:05:30","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=129682"},"modified":"2017-05-24T13:52:31","modified_gmt":"2017-05-24T08:22:31","slug":"educational-trust-with-assets-worth-rs-12000-crores-a-willful-defaulter-and-should-repay-loan-of-rs-75-crores-to-hudco","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/05\/08\/educational-trust-with-assets-worth-rs-12000-crores-a-willful-defaulter-and-should-repay-loan-of-rs-75-crores-to-hudco\/","title":{"rendered":"Educational Trust, with assets worth Rs. 12,000 crores, is a willful defaulter and should repay loan of Rs. 75 Crores to HUDCO"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Supreme Court<\/strong>: In the matter where the Housing &amp; Urban Development Corporation Ltd (HUDCO) had initiated proceedings against the Maharaji Educational Trust for repayment of loan of approximately Rs. 75 crores, the Court said that it is not only startling but also shocking to note that a giant institution which is imparting education to about 3000 students involving manpower of about 700 personnel is finding it difficult to pay the loaned amount. Holding the Educational Trust to be a wilful defaulter, the Court noticed that the Trust has built the property, colleges, hospitals from the money borrowed from HUDCO. It was the bounden duty of the Educational Trust to pay back the money to HUDCO. Thus, no equitable principle comes to their rescue as despite running the institutions for the last 22 years, they have not paid back the amount.<\/p>\n<p style=\"text-align: justify;\">The Court, hence, directed the Educational Trust to settle scheme of repayment with HUDCO within one month and to start payment of dues w.e.f. month of June, 2017. It was clarified that on non-complaince, it would be open to HUDCO to sale approximately 43 acres of the land which was mortgaged with it to realize its dues in the legally permissible manner. It was further directed that if the proceeds from sale of approximately 43 acres of land are not sufficient to satisfy the dues of HUDCO, it would be open to sell 5 out of the 6 mortgaged properties or its part which may be necessary for realization of the outstanding dues.<\/p>\n<p style=\"text-align: justify;\">The Court also took note of the fact that though the land was under mortgage with HUDCO, the Trust had exchanged 21 acres of the mortgaged property out of property No.6 with U.P. Avas Evam Vikas Parishad and that an agreement to sell had been entered into by the Educational Trust in favour of SGS Construction and Development (P) Ltd. \u00a0the property comprising 63.45 acres which also included 21 acres of the property obtained in exchange from Avas Parishad. Regarding the said land, the Court directed that it can be sold only if Arbitrator disallows the claim of SGS Constructions for purchase of 21 acres of said property and that too if the dues are not recovered by the abovementioned sales.<\/p>\n<p style=\"text-align: justify;\">The Bench of Arun Mishra and S. Abdul Nazeer, JJ warned the Educational Trust that if it wants to run institutions, they are bound to make payment and as they are liable to pay, they should pay in all fairness all sums which they have borrowed sans any ifs and buts. [ Maharaji Educational Trust v. Housing &amp; Urban Development Corporation Ltd. , <a href=\"http:\/\/www.scconline.com\/LoginForNewsLink\/D8Ws3CWj\">2017 SCC OnLine SC 552<\/a>, decided on 08.05.2017]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: In the matter where the Housing &amp; Urban Development Corporation Ltd (HUDCO) had initiated proceedings against the Maharaji Educational Trust <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[4871,17261,17251],"class_list":["post-129682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-debt-recovery","tag-repayment-of-loan","tag-willful-defaulter"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - 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