KHETRI VIKAS SAMITI versus DIRECTOR COLLEGE EDUCATION, GOVERNMENT OF RAJASTHAN & ORS.

Citation: [2019] 7 S.C.R. 638 · Decided: 09-05-2019 · Supreme Court of India · Bench: L. NAGESWARA RAO · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2019] 7 S.C.R.
KHETRI VIKAS SAMITI
v.
DIRECTOR COLLEGE EDUCATION, GOVERNMENT OF
RAJASTHAN & ORS.
(Civil Appeal No. 4806 of 2019)
MAY 09, 2019
[L. NAGESWARA RAO AND M. R. SHAH, JJ.]
Rajasthan Non-Government Educational Institutions Act,
1989 – s.18 – Rajasthan Non-Government Educational Institutions
(Recognition, Grant-In-Aid and Service Conditions etc.) Rules,
1993– r.39 – Private Respondents were engaged as Assistant/Lab
boy, sweeper, waterman and mechanic respectively in the non-
Government College of the appellant – In 2003, the Managing
Committee of the appellant, unanimously resolved to abolish the
abovesaid posts – Consequent to abolition of the said posts, the
respondents were removed from their posts – Aggrieved, the private
respondents filed an appeal before the Non-Government Educational
Tribunal u/s. 19 – Tribunal set aside the order of removal of the
private employees and directed their reinstatement and held that it
was mandatory to seek the prior approval of the Director of
Education before terminating the employees, as per s. 18 of the Act
– Writ petition by the appellant – Writ petition was dismissed by the
Single Judge of High Court – Division Bench of High Court
confirmed the decisions of the Single Judge of the High Court – On
appeal, held: s.18 of the Act and r. 39 of the Rules would not be
applicable in case of removal of an employee due to abolition of
posts, more particularly when the post to which the employee was
working was not aided and that his appointment was not approved
by the Education Department – Further, a communication dated
25.01.2005 from the office of the Commissioner had clarified that
there was no necessity for seeking Governmental approval for the
removal of the employees, as the posts to which they were working
were not aided posts and that their appointment was not approved
by the Education Department – Even as per the State Government
also, the prior approval of the State authorities was not required –
Therefore, the impugned judgment and order passed by the Division
   [2019] 7 S.C.R. 638
638
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Bench of the High Court, Single Judge of the High Court and the
Tribunal holding that the removal of the concerned employees was
hit by s.18 of the Act, unsustainable – Accordingly, the impugned
judgment and order passed by the Division Bench of the High Court,
Single Judge of the High Court and the Tribunal quashed and set
aside.
Rajasthan Non-Government Educational Institutions Act,
1989 – s.18 – Rajasthan Non-Government Educational Institutions
(Recognition, Grant-In-Aid and Service Conditions etc.) Rules, 1993
– r. 39 – Private Respondents engaged as Assistant/Lab boy,
sweeper, waterman and mechanic respectively in the non-
Government College of the appellant – Managing Committee of the
appellant abolished the said posts – Tribunal and the High Court
held the abolition of posts bad in law – On appeal, held: Managing
Committee of the appellant was facing financial constraints and
running in heavy losses – There was no finding that the decision of
the Management to abolish posts was malafide and/or with the
oblique motive – Further, the question before the Tribunal was with
respect to the removal and not with respect to abolition of the posts
– Also, the entire financial position of the appellant was not
considered by the High Court – Therefore, in absence of challenge
to the Managing Committee to abolish the posts in question and
non-consideration of the financial position of the appellant –
Reasoning given by the Tribunal and the High Court to hold the
abolition of posts bad in law, unsustainable.
Allowing the appeals, the Court
HELD: 1. On a fair reading of Section 18 of the Rajasthan
Non-Government Educational Institutions Act, 1989 and Rule
39 of the Rajasthan Non-Government Educational Institutions
(Recognition, Grant-In-Aid and Service Conditions etc.) Rules,
1993, this Court is of the opinion that Section 18 of the Act and
Rule 39 would not be applicable in case of removal of an employee
due to the abolition of posts, more particularly when the post to
which the employee is working was not aided and that his
appointment was not approved by the Education Department.  In
the case of Shri Maheshwari Senior Higher Secondary School v.
Bhikha Ram Sharma , this Court has specifically observed and
held that in case of termination of the service of the employee
KHETRI VIKAS SAMITI v. DIR. COLLEGE EDUCATION,
GOVERNMENT OF

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