Madras High Court Orders Sai University to Provide Rs 3.3 crore Bank Guarantee in Vendor Payment Dispute

The Madras High Court directed Sai University, a self‑financing higher‑education institution, to furnish a bank guarantee of roughly Rs 3.29 crore for a six‑month period. The guarantee is required before mediation can proceed in an arbitration case filed by catering service provider Rassense Private Limited, which alleges the university has failed to pay invoices for food services supplied to students.

Justice K Kumaresh Babu also ordered the university to initiate arbitration under the Arbitration and Conciliation Act within eight weeks. The dispute concerns unpaid dues despite fees being collected from students, leading to the termination of the original catering contract and the award of services to Compass Group, a British multinational food‑services firm. The case underscores ongoing concerns about financial governance in India's private university sector.