Full Judgment Text
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CASE NO.:
Appeal (civil) 2699 of 2001
PETITIONER:
Modern School
RESPONDENT:
Union of India & Ors.
DATE OF JUDGMENT: 27/04/2004
BENCH:
S.B. Sinha
JUDGMENT:
J U D G M E N T
with C.A. Nos. 2700, 2701, 2702, 2703, 2704,
2705-2706, 2707, 2708, 2709 and 2710 of 2001
S.B. SINHA, J :
INTRODUCTION:
How far and to what extent unaided private institutions can be
subjected to regulations is the core question involved in these appeals
which arise out of a common judgment and order dated 30.10.1998 passed by
the High Court of Delhi in C.W.P. No. 3723, 4021, 4119, 5330 of 1997.
THE LAW OPERATING IN THE FIELD:
The Delhi School Education Act, 1973 (for short ’the Act’) was
enacted inter alia to provide for better organisation and development of
school education. By reason of the provisions of the Act, school
education, whether imparted in a government institution, a minority
institution, an aided or unaided private institutions is sought to be
regulated. The power of Administrator to regulate education in all the
schools in Delhi, however, is to be made in accordance with the provisions
of the Act. Section 4 of the Act provides for recognition of the
institution. A scheme of management for managing the affairs of the
school is required to be framed in terms of Section 5 thereof conforming
to the provisions of the rules made thereunder.
However, in relation to the recognised private school which does not
receive any aid, the scheme of management may apply with such variations
and modifications in the rules as may be prescribed. It has not been
brought to our notice as to whether any separate rules have been framed as
regard scheme of management of recognised unaided private schools. The
second proviso appended to Section 5, however, states that the scheme
relating to the previous approval of the appropriate authority shall not
apply to a scheme of management for unaided minority school. Section 6 of
the Act provides for grant of aid to recognised schools. The matter
relating to payment to salary to the employees of the school is controlled
by Section 10 of the Act stating that the scales of pay and allowances,
medical facilities, pension, gratuity, provident fund and other prescribed
benefits of the employees of a recognised private school shall not be less
than the amount payable to employees of the corresponding status in school
run by the State.
Chapter V of the Act applies to unaided minority schools. Section
15 relates to contract of service in terms whereof a written contract is
required to be entered into by and between the managing committee and
every employee of a school. Section 17 regulates fees to be charged by
aided schools. No such provision has been made in relation to the
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recognised unaided schools. Sub-Section (3) of Section 17 merely requires
the manager of every recognised school whether aided or unaided to file
with the Director a full statement of the fees to be levied by such school
during the ensuing academic session, and, furthermore, except with the
prior approval of the Director, no school shall charge during that
academic session any fee in excess thereof. The Act, therefore, does not
provide for any regulation as regards charging of any fee or any other
amount by the unaided recognised schools.
Section 18 the Act provides for a School Fund. Sub-sections (1) and
(2) of Section 18 relate to aided schools whereas Sub-section (3) thereof
provides for Recognized Unaided School Fund.; and such fund may be
credited with income accrued to the School by way of fees, any charges
or payments which may be realized by the School for other specific
purposes or any other contribution, endowment, gift and the like. Clause
(a) of Sub-section 4 of Section 18 specifies that that the income derived
by unaided schools by way of fees shall be utilized only for such
educational purposes as may be prescribed whereas in terms of Sub-Clause
(b) thereof, charges and contributions received by the school are required
to be utilised for the specific purpose wherefor they were received. Any
endowment or gift to a Society/trust for establishment of a new school or
establishing any branch thereof, therefore, is not prohibited.
Section 22 provides for establishment of Delhi Schools Education
Advisory Board. Section 24 provides for inspection of schools which is in
the following terms:
"24. Inspection of schools \026 (1) Every
recognised school shall be inspected at least
once in each financial year in such manner as
may be prescribed.
(2) The Director may also arrange special
inspection of any school on such aspects of its
working as may, from time to time, be
considered necessary by him.
(3) The Director may give directions to the
manager to rectify any defect or deficiency
found at the time of inspection or otherwise in
the working of the school.
(4) If the manager fails to comply with any
direction given under sub-section (3) the
Director may, after considering the explanation
or report, if any, given or made by the
manager, take such action as he may think fit,
including \026
(a) stoppage of aid,
(b) withdrawal of recognition, or
(c) except in the case of a minority
school, taking over of the school
under section 20."
The Administrator in exercise of its power conferred upon it under
Section 28 of the Act framed rules known as the Delhi School Education
Rules, 1973 (The Rules). Rule 44 mandates that every society or trust
desiring to establish a new school (not being a minority school) shall
give an intimation therefor in writing communicating their intention to
establish the school. Rule 50 provides for the conditions for
recognition. Rule 51 enumerates the facilities to be provided by a school
seeking recognition. Rule 59 provides for the scheme of management of
recognised schools. Chapter VI of the Rules provide for grant-in-aid and
conditions therefor. Chapter VIII provides for recruitment and terms and
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conditions of service of the employees of private schools other than
unaided minority ones. Chapter XIII of the Rules specifies the mode and
manner in which fees and other charges in aided schools should be
expended. Rule 151 provides for development fees.
The expression ’Fees’ has been defined in Rule 157. Chapter XIV
provides for establishment of a school fund. Rules 172 to 177 provide for
the manner in which the fees realised by the aided and unaided
institutions are to be utilised.
Rules 176 and 177 of the Rules read thus :
"176. Collections for specific purposes to be
spent for that purpose \026
Income derived from collections for specific
purposes shall be spent only for such purpose.
177. Fees realized by unaided recognized schools
how to be utilized -
(1) Income derived by an unaided recognized
school by way of fees shall be utilised in
the first instance, for meeting the pay,
allowances and other benefits admissible to
the employees of the school.
Provided that savings, if any, from the fees
collected by such school may be utilised by
its managing committee for meeting capital
or contingent expenditure of the school, or
for one or more of the following purposes,
namely :-
a) award of scholarships to students;
b) establishment of any other recognised
school, or
c) assisting any other school or
educational institution, not being a
college, under the management of the
same society or trust by which the
first mentioned school is run.
(2) the savings referred to in sub-rule (1)
shall be arrived at after providing for the
following, namely :-
(a) pension, gratuity and other specified
retirement and other benefits
admissible to the employees of the
school;
(b) the needed expansion of the school or
any expenditure of a development
nature;
(c) the expansion of the school building
or for the expansion or construction
of any building or establishment of
hostel or expansion of hostel
accommodation;
(d) co-curricular activities of the
students;
(e) reasonable reserve fund not being less
than ten per cent, of such savings;
(3) Funds collected for specific purposes, like
sports, co-curricular activities,
subscriptions for excursions or
subscriptions for magazines, and annual
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charges, by whatever name called, shall be
spent solely for the exclusive benefit of
the students of the concerned school and
shall not be included in the savings
referred to in sub-rule (2).
(4) The collections referred to in sub-rule (3)
shall be administered in the same manner as
the monies standing to the credit of the
Pupils Fund as administered."
Rule 180 mandates that the unaided schools shall submit returns.
ANALYSIS:
The said Act and the rules framed thereunder provide for a complete
code not only as regard regulation of education but also organisation and
development thereof.
Establishment of a private educational institutional has been held
to be a fundamental right by this Court in T.M.A. Pai Foundation and
Others Vs. State of Karnataka and Others [(2002) 8 SCC 481]. The
fundamental right to establish educational institution as contained in
Article 19(1)(g) of the Constitution of India would, however, be subject
only to the reasonable restrictions which may be imposed by any law in
terms of Clause (6) thereof. The Act is a law regulating education. The
Act seeks to regulate education \026 necessary corollary whereof would be
that education imparted in an individual institution may also be subjected
to regulation. But any control or regulation over education or
educational institution must be imposed only by a legislative act and not
by any executive instruction. [See Union of India Vs. Naveen Jindal and
Anr., (2004) 2 SCC 510]
This Court analysing the provisions of Articles 19, 26 and 30 of
Constitution of India in T.M.A. Pai Foundation (supra) inter alia stated:
a) The majority community as well as linguistic and religious
minorities would have a right under Articles 19(1)(g) and 26
to establish educational institutions. In addition, Article
30(1), in no uncertain terms, gives the right to the religious
and linguistic minorities to establish and administer
educational institutions of their choice.
b) The Scheme framed by this Court in Unni Krishnan, J.P. Vs.
State of A.P.[ (1993) 1 SCC 645] is unconstitutional as
thereby restrictions imposed make it difficult, if not
impossible, for the educational institutions to run
efficiently. The restrictions thus imposed cannot be said to
be reasonable ones.
c) The private unaided educational institutions imparting
education cannot be deprived of their choice in matters, inter
alia, of selection of students and fixation of fees and it is
not open to the court to insist that statutory authorities
should impose any condition for the purpose of grant of
affiliation or recognition which would completely destroy the
institutional autonomy and the very objective of
establishment of the institution.
d) Education, particularly, higher education must be perceived in
the light of the idea of an academic degree as a "private
good" that benefits the individual rather than a "public good"
for society which is now widely accepted. The logic of
today’s economics and an ideology of privatization have
contributed to the resurgence of private higher education and
the establishing of private institutions where none or very
few existed before.
e) The right to establish and administer broadly comprises of the
following rights :-
(a) to admit students;
(b) to set up a reasonable fee structure;
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(c) to constitute a governing body;
(d) to appoint staff (teaching and non-teaching); and
(e) to take action if there is dereliction of duty on the part
of any employees.
f) While the private educational institutions in the matter of
setting up a reasonable fee structure may not resort to
profiteering but they may take into consideration the need to
generate funds to be utilized for the betterment and growth of
the educational institution, the betterment of education in
that institution and to provide facilities necessary for the
benefit of the students. The regulatory measures must, in
general, be to ensure the maintenance of proper academic
standards, atmosphere and infrastructure and the prevention of
mal-administration by those in charge of management. The
fixing of a rigid fee structure would be an unacceptable
restriction. The essence of a private educational institution
is the autonomy that the institution must have in its
management and administration.
g) There, necessarily, has to be a difference in the
administration of private unaided institutions and the
government aided institutions. In the latter case, the
Government will have greater say inter alia in fixing of fees
but in the case of private unaided institutions, maximum
autonomy in the day-to-day administration has to be with the
private unaided institutions. Bureaucratic or governmental
interference in the administration of such an institution will
undermine its independence.
h) While running an educational institution is not a business, in
order to examine the degree of independence that can be given
to a recognized educational institution, like any private
entity that does not seek aid or assistance from the
Government, and that exists by virtue of the funds generated
by it, including loans or borrowings, it would be important to
note that the essential ingredients of the management of the
private institution include the recruiting students and staff,
and the quantum of fee that is to be charged.
i) An unaided institution can charge fee from the students. One
cannot lose sight of the fact that we live in a competitive
world today, where professional education is in demand. A
large number of professional and other institutions have been
started by private parties who do not seek any governmental
aid. In a sense, a prospective student has various options
open to him/her where normally economic forces have a role to
play. The decision on the fee to be charged must necessarily
be left to the private educational institution that does not
seek or is not dependent upon any funds from the Government.
The object of setting up an educational institution is by
definition "charitable", the making of profit should not be
the object. . There can, however, be a reasonable revenue
surplus, which may be generated by the educational institution
for the purpose of development of education and expansion of
the institution.
The Judgment of this Court in T.M.A. Pai Foundation (supra) came to
be interpreted by a Constitution Bench of this Court in Islamic Academy of
Education & Anr. Vs State of Karnataka & Ors. [(2003) 6 SCC 697] wherein
inter alia the following question was raised for consideration:
"Whether the educational institutions are
entitled to fix their own fee structure;"
Answering the said question, this Court held:
"7. So far as the first question is concerned,
in our view the majority judgment is very
clear. There can be no fixing of a rigid fee
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structure by the Government. Each institute
must have the freedom to fix its own fee
structure taking into consideration the need to
generate funds to run the institution and to
provide facilities necessary for the benefits
of the students. They must also be able to
generate surplus which must be used for the
betterment and growth of that educational
institution. In paragraph 56 of the judgment
it has been categorically laid down that the
decision on the fees to be charged must
necessarily be left to the private educational
institutions that do not seek and which are not
dependent upon any funds from the Government.
Each institute will be entitled to have its own
fee structure. The fee structure for each
institute must be fixed keeping in mind the
infrastructure and facilities available, the
investments made, salaries paid to the teachers
and staff, future plans for expansion and/ or
betterment of the institution etc. Of course
there can be no profiteering and capitation
fees cannot be charged. It thus needs to be
emphasized that as per the majority judgment
imparting of education is essentially
charitable in nature. Thus the surplus/ profit
that can be generated must be only for the
benefit/ use of that educational institution.
Profits/ surplus cannot be diverted for any
other use or purpose and cannot be used for
personal gain or for any other business or
enterprise..."
The Court, having regard to the fact that the validity of the
statutes/ regulations governing the fixation of fees had not been
considered, directed constitution of a committee headed by a retired High
Court Judge for the said purpose. One of us while concurring with the
said directions stated:
"147. On a bare reading of the relevant
paragraphs of the judgment some of which are
referred to hereinbefore, it is beyond any
doubt that in the matter of determination of
the fee structure the unaided institutions
exercise a greater autonomy. They, like any
other citizens carrying on an occupation, must
be held to be entitled to a reasonable surplus
for development of education and expansion of
the institution. Reasonable surplus doctrine
can be given effect to only if the institutions
make profits out of their investments. As
stated in paragraph 56, economic forces have a
role to play. They, thus, indisputably have to
plan their investment and expenditure in such a
manner that they may generate some amount of
profit. What is forbidden is (a) capitation
fee and (b) profiteering.
154.The fee structure, thus, in relation to
each and every college must be determined
separately keeping in view several factors
including, facilities available, infrastructure
made available, the age of the institution,
investment made, future plan for expansion and
betterment of the educational standard etc.
The case of each institution in this behalf is
required to be considered by an appropriate
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Committee. For the said purpose, even the
books of accounts maintained by the institution
may have to be looked into. Whatever is
determined by the Committee by way of a fee
structure having regard to relevant factors
some of which are enumerated hereinbefore, the
management of the institution would not be
entitled to charge anything more."
The principles for fixing fee structure of particular institutions
have, thus, been illustrated in T.M.A. Pai Foundation (supra) and Islamic
Academy of Education (supra) but it must be borne in mind that those
principles were laid down in absence of any statute operating in the
field. Where, however, a statute operates in the field, regulation of
education would be governed thereby. In this case, as the regulation of
education is governed by a Legislative Act, the court cannot impose any
other or further restrictions by travelling beyond the scope, object and
purport thereof.
The High Court by reason of the impugned judgment travelled beyond
the legislative scheme as regards administration of a private institution
as also fixation of fee while issuing the impugned directions in the light
of the decision of this Court in Unni Krishnan (supra). It is not in
dispute that pursuant to or in furtherance of the directions issued by the
High Court a Committee known as Duggal Committee was constituted. The
said Committee has submitted its report. Pursuant to the recommendations
made by the Committee, a circular dated 15th December, 1999 has been issued
purported to be in terms of Sub-Section (3) and (4) of Section 24 of the
Act. The same apparently is beyond the scope and purport of the Act and
the Rules as the directions thereunder can be issued only for the purpose
of rectifying the defect and deficiencies found at the time of inspection
or otherwise in the working of the school and not pursuant to the
recommendations made by a committee constituted in terms of the judgment
of the High Court. ’Defects and deficiencies’ within the meaning of the
said provisions would mean defects and deficiencies while applying the
provisions of the Act and the rules framed thereunder only and not the
recommendations of a committee de’hors ’the Act’ and ’the rules’. The
said directions, therefore, do not have the force of law within the
meaning of Clause (6) of Article 19 of the Constitution of India. State
indisputably can issue directions which would only meet the criteria of a
’law’ within the meaning of Article 13 of the Constitution of India. (See
Naveen Jindal (supra)
This Court in T.M.A. Pai Foundation (supra), thus, not only upheld
the right to establish and administer educational institutions as being
guaranteed by Articles 19(1)(g) and 26 subject to the provisions of
Articles 19(6) and 26(a) and, particularly, minorities under Article 30,
it emphasised the requirement of grant of greater autonomy to the private
unaided institutions. The Court while holding that the scheme framed in
Unni Krishnan (supra) as unconstitutional made an observation that thereby
’education’ in respect of important features thereof is sought to be
nationalised, viz., right of a private unaided institution to give
admission and to fix fee. By reason of such a scheme, as private
institutions became indistinguishable from the government institutions
which would amount to curtailing of all essential features of the right of
administration of a private unaided educational institution, the same was
liable to be struck down being unfair and unreasonable. The Court in no
uncertain terms held that the fixing of a rigid fee structure, dictating
the formation and composition of a governing body, compulsory nomination
of teachers and staff for appointment or nominating students for
admissions would be unacceptable restrictions. It is true that a
declaration was made to the effect by the Court that since the object of
setting up of educational institution is by definition "charitable" as fee
cannot be charged which would not be required for the purpose of
fulfilling that object. The Object of an educational institution although
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may not be to make profiteering but generation of a reasonable revenue
surplus for the purpose of development of education and expansion of the
institution is permissible. In the case of unaided private schools, this
Court held that the maximum autonomy must be with the management as
regards administration, disciplinary powers, admission of students and the
fees to be charged. This Court noticed that the examination results at
all levels of unaided private schools despite stringent regulations of the
governmental authorities were far superior to the results of the
government-maintained schools. The Court held that curtailment of income
of such private schools is impermissible as it disables those schools from
affording the best facilities because of lack of funds. It was suggested
that if the lowering of standards from excellence to a level of mediocrity
is to be avoided, the solution lies in the States not using their scanty
resources to prop up institutions that are able to otherwise maintain
themselves out of the fees charged, but in improving the facilities and
infrastructure of state-run schools and in subsidizing the fees payable by
the students there.
We are bound by the decisions of the larger Benches of this Court.
This Court, having regard to T.M.A. Pai Foundation(supra) cannot
thus issue any direction or make a scheme which would not be
constitutional being violative of clause (6) of Article 19 of the
Constitution.
Indisputably, the standard of education, the curricular and co-
curricular activities available to the students and various other factors
are matters which are relevant for determining of the fee structure. The
courts of law having no expertise in the manner and/ or having regard to
its own limitations keeping in view the principles of judicial review
always refrain from laying down precise formulae in such matters.
Furthermore, while undertaking such exercise the respective cases of each
institution, their plans and programmes for the future expansion and
several other factors are required to be taken into consideration. The
Constitution Bench in Islamic Academy of Education (supra) which as
noticed hereinbefore subject to making of an appropriate legislation
directed setting up of two committees, one of which would be for
determining fee structure. This Court both in T.M.A. Pai Foundation
(supra) and Islamic Academy of Education (supra) had upheld the rights of
the minorities and unaided private institutions to generate a reasonable
surplus for future development of education.
Dawn Oliver in Constitutional Reform in the UK under the heading
’The Courts and Theories of Democracy, Citizenship, and Good Governance’
at page 105 states:
"However, this concept of democracy as rights-
based with limited governmental power, and in
particular of the role of the courts in a
democracy, carries high risks for the judges - and
for the public. Courts may interfere inadvisedly
in public administration. The case of Bromley
London Borough Council v. Greater London Council
([1983] 1 AC 768, HL) is a classic example. The
House of Lords quashed the GLC cheap fares policy
as being based on a misreading of the statutory
provisions, but were accused of themselves
misunderstanding transport policy in so doing.
The courts are not experts in policy and public
administration - hence Jowell’s point that the
courts should not step beyond their institutional
capacity (Jowell,2000). Acceptance of this
approach is reflected in the judgments of Laws LJ
in International Transport Roth GmbH Vs. Secretary
of State for the Home Department ([2002] EWCA Civ
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158, [2002] 3 WLR 344) and of Lord Nimmo Smith in
Adams v. Lord Advocate (Court of Session, Times, 8
August 2002) in which a distinction was drawn
between areas where the subject matter lies within
the expertise of the courts (for instance,
criminal justice, including sentencing and
detention of individuals) and those which were
more appropriate for decision by democratically
elected and accountable bodies. If the courts
step outside the area of their institutional
competence, government may react by getting
Parliament to legislate to oust the jurisdiction
of the courts altogether. Such a step would
undermine the rule of law. Government and public
opinion may come to question the legitimacy of the
judges exercising judicial review against
Ministers and thus undermine the authority of the
courts and the rule of law."
The aforementioned paragraph has been noticed by this Court in
Chairman and M.D., BPL Ltd. Vs. S.P. Gururaja & Ors [(2003) 8 SCC 567].
The States have a duty to impart education and particularly primary
education having regard to the fact that the same is a fundamental right
within the meaning of Article 21 of the Constitution of India, but as the
Government had neither resources nor the ability to provide for the same,
it appears, the Legislature permitted the Societies/Trusts to establish
the educational institutions from the savings made by them from the
Unaided Institutions.
It is not the case of the respondents that Rule 177 is
unconstitutional. The vires or otherwise of the said rule may be
considered in an appropriate proceedings but without going into the said
question in great details, it may not be appropriate for us to read down
the provisions thereof and issue any direction in derogation thereto. I
do not find any conflict in Rules 176 and 177 of the Rules.
In view of the fact that the plain language has been employed in
Rule 177 of the Rules, a strict construction thereof may not be justified.
The proviso appended to Rule 177 is not exhaustive. There is no reason as
to why the expression "capital or contingent expenditure" of the school
should be given a narrow meaning, particularly having regard to the fact
that Clause (b) thereof permits the Managing Committee to establish any
other recognised school out of the saving from the fees collected by such
school and clause (c) thereof permits rendition of assistance to any other
school or educational institution under the Management of the same society
or trust by which the first mentioned school is run.
The provisions of the Act and the rules framed thereunder in my
opinion are absolutely clear and unambiguous. This Court has to interpret
the provisions of the Act and the Rules framed thereunder in the light of
the fundamental rights of the appellants. Any direction, therefore, which
would further curtail their fundamental rights would be wholly
unwarranted.
Furthermore, the impugned judgment of the Delhi High Court was
rendered having regard to the decision of this Court in Unni Krishnan
(supra). Unni Krishnan (supra) no longer holds the field. Its dicta that
imparting of education is not a fundamental right stands overruled. The
scheme framed by it has also been held to be unconstitutional. All orders
and directions issued by the High Court pursuant to or in furtherance of
the directions in Unni Krishnan (supra) or any decision following the same
must, therefore, be kept out of consideration.
Thus, the question posed in these matters needs to be answered
differently as imparting of education is now a fundamental right. Such a
right, therefore, requires a fresh look and not through the glasses of
Unni Krishnan (supra).
An 11-Judge Bench as also a Constitution Bench of this Court in
T.M.A. Pai Foundation (supra) and Islamic Academy of Education (supra), as
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noticed hereinbefore, have merely forbidden profiteering.
’Profiteering’ has been defined in Black’s Law Dictionary, Fifth
edition as:
"Taking advantage of unusual or exceptional
circumstances to make excessive profits"
Although decisions are galore the purpose would be better served by
referring to G.P. Singh Principles of Statutory Interpretation, Ninth
Edition, 2004, pages 120-122 which is in the following terms:
"4. Regard to Consequences:
If the language used is capable of bearing more
than one construction, in selecting the true
meaning regard must be had to the consequences
resulting from adopting the alternative
constructions. A construction that results in
hardship, serious inconvenience, injustice,
absurdity or anomaly or which leads to
inconsistency or uncertainty and friction in
the system which the statute purports to
regulate has to be rejected and preference
should be given to that construction which
avoids such results. This rule has no
application when the words are susceptible to
only one meaning and no alternative
construction is reasonably open.
(a) Hardship, inconvenience, injustice,
absurdity and anomaly to be avoided
In selecting out of different interpretations
"the court will adopt that which is just,
reasonable and sensible rather than that which
is none of those things" as it may be presumed
"that the Legislature should have used the word
in that interpretation which least offends our
sense of justice". If the grammatical
construction leads to some absurdity or some
repugnance or inconsistency with the rest of
the instrument, it may be departed from so as
to avoid that absurdity, and inconsistency.
Similarly, a construction giving rise to
anomalies should be avoided. As approved by
Venkatarama Aiyar, J., "Where the language of a
statute, in its ordinary meaning and
grammatical construction, leads to a manifest
contradiction of the apparent purpose of the
enactment, or to some inconvenience or
absurdity, hardship or injustice, presumably
not intended, a construction may be put upon it
which modifies the meaning of the words, and
even the structure of the sentence."
It would not, therefore, be proper to impose any further
restrictions in this behalf and interpret T.M.A. Pai Foundation (supra) in
a different way so as to take away some of the rights of the appellants
which are recognised therein.
We have noticed hereinbefore that T.M.A. Pai Foundation (supra) gave
a new look to the concept of ’education’, viz., opening up of economy and
concept of globalisation. We, therefore, cannot look at the question
differently. It must further be borne in mind that by reason of judicial
direction this Court cannot override a statute or statutory rules
governing the field and, thus, no direction can be issued by this Court
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contrary thereto or inconsistent therewith.
Furthermore, the expression ’development of education’ is a broad
term. There does not exist any reason as to why the said right would be
limited, regulated or curtailed in absence of any provisions contained in
the Act or the rules framed thereunder. When the law permits utilisation
of surplus fund of an institution for setting up another institution, the
Court should not come in their way from doing so.
This Court, when such legislations are operating in the field should
be loathe to impose any further restrictions. This Court normally does
not pass an order even in exercise of its jurisdiction under Article 142
of the Constitution of India which would be contrary to the law. (See
Government of West Bengal Vs. Tarun K. Roy and Ors. 2003 (9) SCALE 671,
paragraphs 32 to 34 and Jamshed Hormusji Wadia Vs. Board of Trustees, Port
of Mumbai and Another, (2004) 3 SCC 214)
The need of the day, therefore, is strict implementation and
enforcement of the statute. The administration, in the event, comes to
the conclusion that the rules are required to be amended, they are free to
do so; but only because there are a few cases of mismanagement, the same
by itself should not be considered to be an indicia that all institutions
are being run in an unprofessional or unethical manner.
Once, the legislature has laid down an educational scheme, the
jurisdiction of the court is merely to interpret the same. It cannot and
should not issue any other or further direction. It would not supplant a
statutory provision by issuing any direction except in some exceptional
cases.
The statutory scheme of the Act must be considered also from the
point of view that a Society running several institutions may have to
impart education in different areas; slum, semi urban or urban. It may
not, therefore, be improper for an institution to generate some surplus
fund from an institution which is situated within a metropolitan area for
the purpose of starting a school in a slum or a semi urban area.
It may also not be necessary to issue direction as to how and in
what manner the institutions should maintain their accounts. In absence of
any statutory provision governing the field, it is for the administration
of the educational institution to determine the same having regard to the
prevailing law like Income Tax Act, 1961.
I am, furthermore of the opinion, that as it is permissible in law,
the excess income from an institution may be spent by the Society/Trust to
establish another school keeping in view the fact that more and more
educational institutions are required to be established particularly in
rural or semi urban area.
So far as allotment of land by the Delhi Development Authority is
concerned, suffice it to point out that the same has no bearing with the
enforcement of the provisions of the Act and the rules framed thereunder
but indisputably the institutions are bound by the terms and conditions of
allotment. In the event such terms and conditions of allotment have been
violated by the allottees, the appropriate statutory authorities would be
at liberty to take appropriate step as is permissible in law.
For the reasons aforementioned, I respectfully dissent with the
opinion of Brother Kapadia,J. I would allow the appeals. No costs.