Authority: High Court of Judicature at Madras (Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan)

Order Date: 17 June 2026

Case Overview

  • Parties: Appellant – Puja Kumari (resident of Patna, Bihar); Respondents – Union of India (Ministry of Health & Family Welfare), President, National Medical Commission, Secretary, Tamil Nadu Medical Council, Director General, National Investigation Agency (NIA), and Chettinad Academy of Research and Education (private medical college).
  • Nature of Proceeding: Writ appeal (W.A.No.2422 of 2025) filed under Clause 15 of the Letters Patent challenging the order dated 01‑04‑2024 passed by a learned Single Judge in W.P.No.22886 of 2023, which dismissed the appellant’s petition for a mandamus directing the respondents to issue her Course Completion Certificate and MBBS Degree Certificate without fee repayment.
  • Background Facts:
  • The appellant secured admission to the MBBS programme at the fifth respondent college through the regular centralized selection process, completed the five‑year curriculum and the Compulsory Rotatory Resident Internship (CRRI).
  • A total of Rs.1,13,70,500 was periodically remitted by the appellant (or on her behalf) to the college’s account as tuition and related fees.
  • During a criminal investigation (RC No.05/2021/NIA/RNC), the NIA discovered that the fee amount originated from illegal, extorted funds raised for the Communist Party of India (Maoist), a proscribed terrorist organisation.
  • Acting under statutory powers, the NIA issued a production‑cum‑seizure notice, seized the entire fee amount from the college, and appropriated it under the Unlawful Activities (Prevention) Act, 1967.
  • Consequently, the college withheld the appellant’s original completion certificates, citing its policy that certificates cannot be released until institutional fees are fully settled.
  • Legal Submissions:
  • Counsel for the appellant argued that educational certificates are not a lienable security and must be returned without demanding immediate payment, relying on Supreme Court precedents such as S. Muthukamatchi v. Director of Technical Education, Anna University and Dean, Chettinad Hospital and Research Institute v. P. Karthikayan.
  • The appellant denied any personal involvement with terrorist activities and noted that no criminal or penal action had been taken against her individually.
  • Counsel for the college contended that the seized fee amount was the college’s legitimate revenue, now unavailable due to NIA’s appropriation, and that the college’s policy of withholding certificates until fees are cleared is a legitimate safeguard against funding crime.
  • Judicial Reasoning:
  • The Court acknowledged the well‑settled principle that educational certificates are not marketable commodities and cannot be retained as a general rule.
  • However, it emphasized the “extraordinary and intricate factual matrix” involving national security, terrorist financing, and criminal asset seizure under the UAPA.
  • The charge‑sheet identified the appellant’s brother (Tarun Kumar) and paternal uncle (Pradyuman Sharma) as key operatives in raising extorted funds for the banned outfit, establishing a direct link between the fee money and proceeds of crime.
  • While the appellant herself is not an accused, the Court held that she cannot derive benefit from the fruits of a crime; the college’s account is legally in default because the clean fee amount was never received.
  • The Court affirmed that the college may retain the certificates until it is reimbursed by clean, untainted funds, and that the appellant’s remedy is to approach the competent Special Court for the release of the seized amount, not to compel the private institution to bear that burden.

Final Outcome

  • The writ appeal is dismissed; the order of the learned Single Judge dated 01‑04‑2024 is confirmed.
  • No order as to costs; all connected interim applications stand closed.

Topics: Legal Dispute – Educational Certificates, Terrorist Funding Asset Seizure