LexINSTITUTE OF HUMAN RESOURCES DEVELOPMENT AND ORS. ETC. ETC. versus T.R. RAMESHKUMAR AND ORS. ETC.
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\ INSTITUTE OF HUMAN RESOURCES DEVELOPMENT A AND ORS. ETC. ETC. v. T.R. RAMESHKUMAR AND ORS. ETC. MAY 12, 1995 B [S.C. AGRAWAL AND MRS. SUJATA V. MANOHAR, JJ.] Educatioir-Engineering Colleges-Government starting two self- financing education institutions-Applicability of scheme framed by this C court-Scheme sanctioned subject to modifications. The Government of Kerala by G.0.(MS) 191/92/H.Edn. dated 24.12.1992 decided to start two self financing Engineering Colleges from academic year 1993-94. As per the scheme 75% of seats in these colleges were to be filled up on the basis of open merit applying the existing D reservation principles prevailing in the State of Kerala, 10% of the seats were to be filled up by Scheduled Caste and Scheduled Tribe candidates and the remaining 15% of the seats by children of non-resident Indians. Open merit seats and seats reserved for Scheduled Caste/Scheduled Tribe Candidates were to be filled up on the basis of marks obtained at the common entrance examination being conducted by the Commissioner for E Entrance examinations, Trivandrum. The seats .for the NRI quota were also to be filled up on the basis of merit. Since the two colleges did not receive any financial help in the form of any grant from the Government and were self-financing institutions, tution fee had been fixed for all students at Rs. 12,500 per year. However, in the case of Scheduled Castes . F and Schedules Tribes the tution fee was fixed at half the above amount i.e. Rs. 6,250 per year. The students who were selected for admission were also required to give an interest free deposit of rupees one lakh refundable on completion of four years from the date of deposit or on completion of the course to which the student was admitted, whichever was later. Candidates G belonging to Scheduled Castes and Scheduled Tribes, however, were ex- empted from payment of this deposit. Candidates selected against the NRI quota were required to pay US Dollars 5,000 as development charges which were non-refundable. The appellant sought to justify a departure from the scheme set up H 447 448 SUPREME COURT REPORTS [1995] SUPP. 1 S.C.R. A in the case of Umii K1ishnan, J.P. & 01>·. v. State of A.P. & Ors., (1993) 1 SCC 645, by pointing out that the scheme in Unni /(Jishnan was designed for private colleges and these two colleges, however, were not private educational institutions set up for the purpose of profit-making; that the State had been compelled to go in for self-financing institutions in view of B financial stringency; that since the Government already· runs ur aids a number of institutions where all the seats are 'free' seats, they should be permitted to start two colleges with 'paid' seats; that the ratio between 'free' and 'paid' seats being far more favourable to 'free' seats than the 50:50 ratio laid down in Unni /(Jishnan, the appellants should be permitted tu make a departure from the scheme in Unni Krishnan which required a C self financing institution to provide 50% free seats and 50% seats on payment basis; that while students occupying payment seats in Engineer- ing Colleges were charged Rs. 46,800 as fees, at present, under the scheme the fees per head came to only Rs. 12,500; that the State, in discharge of its obligation to make special provisions for backward classes under Art. D 15(4) of the Constitution, had also provided for reservation of 10% of these seats in their favour who will only pay half the prescribed fees and will not have to pay any deposit. The appellants agreed to modify their scheme by reducing the NRI quota to 10%, and increasing the open merit seats to 80% and also to institute freeships or scholarships to be made available to 10% of the students admitted in these two colleges which will be awarded E on the basis of merit-cum-means. Loan facilities will be made available from nationalised banks to the needy students for getting amounts to meet their educational expenses including the payment of deposit and the capital revenue loss to the extent of Rs. 6 lakhs each year arising from the reduction of the NRI quota will be made good for generating additional F revenue by the college through consultancy, short-term courses etc. by using the available infrastructure. G The question raised was whether such a departure from Unni /(Jish- nan be permitted. The respondent contended that these two colleges should also be considered as private
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