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THE STATE OF UTTAR PRADESH & ORS. versus PRINCIPAL ABHAY NANDAN INTER COLLEGE & ORS.

Citation: [2021] 10 S.C.R. 693 · Decided: 27-09-2021 · Supreme Court of India · Bench: SANJAY KISHAN KAUL · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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693
THE STATE OF UTTAR PRADESH & ORS.
v.
PRINCIPAL ABHAY NANDAN INTER COLLEGE & ORS.
(Civil Appeal No. 865 of 2021)
SEPTEMBER 27, 2021
[SANJAY KISHAN KAUL AND M. M. SUNDRESH, JJ.]
The Intermediate Education Act, 1921 – ss.9, 16G –
Regulations framed under Act – Regulation 101 – Amendment –
Permanent posts abolished – Recruitment by way of Outsourcing –
Permissibility of – Government passed Orders, applicable to govt.
departments and aided schools, followed by amended Regulation
101 – Accordingly, posts of Class IV employees were to be filled up
by the institutions through Outsourcing, permanent posts were
abolished – Recruitments made by the institutions de hors the same
– Writ petitions – High Court held Regulation 101 to be
unconstitutional – On appeal, held: By the policy decision made,
the appellants abolished the post though in an indirect way by
providing for outsourcing – A court cannot create or sustain the
said post – Nothing on record to hold that the decision made is
extraneous as it is applicable not only to the aided institutions but
also to all government departments – Entire litigation is triggered
only by the institutions – Idea was to create a new set of employees
introduced through Outsourcing – Impugned Regulation is only
reiteration, as the Government Orders by way of policy take care of
the aforesaid view – Further, an institution receiving aid is bound
by the conditions imposed and therefore expected to comply –
Appellants justified in passing the relevant Government Orders
followed by the impugned Regulation – Impugned Regulation upheld
– Judgment of the Division Bench and the consequential orders
passed are set aside – Service Law – Constitution of India – Articles
14, 30, 226 – Equity – Uttar Pradesh High Schools and Intermediate
Colleges (Payment of Salaries of Teachers and Other Employees)
Act, 1971.
The Intermediate Education Act, 1921 – Object of – Discussed.
Constitution of India – Article 30 – Held: Article 30 is subject
to its own restrictions being reasonable – A protection cannot be
[2021] 10 S.C.R. 693
693
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694
SUPREME COURT REPORTS
[2021] 10 S.C.R.
expanded into a better right than one which a non-minority institution
enjoys.
Educational Institutions – Right of Institutions qua the aid –
Held: Right to get an aid is not a fundamental right, the challenge
to a decision made in implementing it, shall only be on restricted
grounds – Further, when it comes to aided institutions, there cannot
be any difference between a minority and non-minority one.
Administrative Law – Subordinate legislation – Policy decision
– When cannot be challenged – Discussed.
Service Law – Recruitment by way of outsourcing – Held:
Outsourcing per se is not prohibited in law– A recruitment by way
of outsourcing may have its own deficiencies and pit falls, however,
a decision to take β€œoutsourcing” cannot be declared as ultra vires
of the constitution on the basis of mere presumption and assumption.
Constitution of India – Article 14 – Nature of – Discussed.
Interpretation of Statutes – Old enactment – Constructive &
purposive interpretation – Principle of interpretation – β€œAlways
speaking” principle – Discussed – The Intermediate Education Act,
1921.
Allowing the appeals, the Court
HELD: 1. RIGHT TO AID: -
A decision to grant aid is by way of policy. While doing so,
the government is not only concerned with the interest of the
institutions but the ability to undertake such an exercise. Financial
constraints and deficiencies are the factors which are considered
relevant in taking any decision qua aid, including both the decision
to grant aid and the manner of disbursement of an aid. Once it is
held that right to get an aid is not a fundamental right, the
challenge to a decision made in implementing it, shall only be on
restricted grounds. Therefore, even in a case where a policy
decision is made to withdraw the aid, an institution cannot question
it as a matter of right. Maybe, such a challenge would still be
available to an institution, when a grant is given to one institution
as against the other institution which is similarly placed.
Therefore, with the grant of an aid, the conditions come. If an
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695
institution does not want to accept and comply with the conditions
accompanying such aid, it is well open to it to decline the grant
and move in its own way. On the contrary, an institution can never
be allowed to say that the grant of aid should be on its own terms.

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