It took about two hours for 10 fire tenders to put out the flames which engulfed the first floor of the Dewan Anand Kumar Hall, the administrative building of Panjab University, which has been facing a "financial crisis".
No casualty was reported in the incident, which took place around 3 am, Station Fire Officer Paramjit Singh Gill said.
An electric short-circuit was suspected to have triggered the fire. However, an inquiry has been ordered to ascertain the exact cause.
PU vice-chancellor Arun Kumar Grover said an inquiry committee would be constituted to ascertain the probable cause of the fire and assess the extent of damage.
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Personnel of the Central Forensic Laboratory has visited the site, he said.
"Several documents have been destroyed, but the transactional data is retrievable," the VC said.
He said a safety assessment would be undertaken to prevent recurrence of fire incident.