Sai University has come under judicial scrutiny after the Madras High Court directed the institution to furnish a bank guarantee before mediation could proceed in a dispute concerning unpaid dues to a local Tamil Nadu based food services vendor. According to the court proceedings, the vendor contended that although food charges had been collected from students, payments remained outstanding for several months. Taking note of the matter, the High Court directed that mediation would proceed only after the university furnished a bank guarantee securing the disputed amount. The existing catering contract was subsequently terminated, with the food services reportedly being awarded to Compass Group, a British multinational food services company. Governance Under the SpotlightThe case has once again highlighted the importance of governance standards in India’s higher education sector.