STATE OF KERALA & ORS.ETC.ETC. Vs. ARUN GEORGE & ORS.ETC.ETC.
Supreme Court of India (Single Judge)
Appeal (Civil), 8459-8461 of 2010, Judgment Date: Jan 14, 2015
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL Nos. 8459-8461 OF 2010
State of Kerala & Ors. etc. etc. ...Appellants
Versus
Arun George & Ors. etc. etc. ...Respondents
WITH
CIVIL APPEAL Nos. 8463-8464/2010
The Deputy Director of Collegiate
Education & Ors. ...Appellants
Versus
Dr. Joseph Michael & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8466/2010
State Of Kerala & Ors. ...Appellants
Versus
Beena George & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8470/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager, Sacred
Heart College & Ors. ...Respondents
WITH
CIVIL APPEAL Nos. 8471-8472/2010
State Of Kerala & Ors. etc. etc. ...Appellants
Versus
N.A.M. College & Ors. etc. etc. ...Respondents
WITH
CIVIL APPEAL NO. 8473/2010
State Of Kerala & Ors. ...Appellants
Versus
Dr. A. Maria Starvin & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8474/2010
State Of Kerala & Ors. ...Appellants
Versus
Jesvin Jose & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8475/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager St. Plus
X College & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8476/2010
State Of Kerala ...Appellants
Versus
Dr. Anila. L. & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8477/2010
State Of Kerala & Ors. ...Appellants
Versus
Shacheendran V. & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8478/2010
State Of Kerala & Ors. ...Appellants
Versus
Salia Rex ...Respondent
WITH
CIVIL APPEAL NO. 8479/2010
State Of Kerala & Ors. ...Appellants
Versus
Dr. R. Sunil Kumar & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8480/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager, St. Michael's
College & Ors. ...Respondents
WITH
CIVIL APPEAL NOs. 8481-82/2010
State Of Kerala & Ors. etc. ...Appellants
Versus
Reena Nair & Ors. etc. ...Respondents
WITH
CIVIL APPEAL NO. 8483/2010
Deputy Director Of Collegiate
Education & Anr. ...Appellants
Versus
Omana Alex & Anr. ...Respondents
WITH
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL Nos. 8459-8461 OF 2010
State of Kerala & Ors. etc. etc. ...Appellants
Versus
Arun George & Ors. etc. etc. ...Respondents
WITH
CIVIL APPEAL Nos. 8463-8464/2010
The Deputy Director of Collegiate
Education & Ors. ...Appellants
Versus
Dr. Joseph Michael & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8466/2010
State Of Kerala & Ors. ...Appellants
Versus
Beena George & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8470/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager, Sacred
Heart College & Ors. ...Respondents
WITH
CIVIL APPEAL Nos. 8471-8472/2010
State Of Kerala & Ors. etc. etc. ...Appellants
Versus
N.A.M. College & Ors. etc. etc. ...Respondents
WITH
CIVIL APPEAL NO. 8473/2010
State Of Kerala & Ors. ...Appellants
Versus
Dr. A. Maria Starvin & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8474/2010
State Of Kerala & Ors. ...Appellants
Versus
Jesvin Jose & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8475/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager St. Plus
X College & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8476/2010
State Of Kerala ...Appellants
Versus
Dr. Anila. L. & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8477/2010
State Of Kerala & Ors. ...Appellants
Versus
Shacheendran V. & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8478/2010
State Of Kerala & Ors. ...Appellants
Versus
Salia Rex ...Respondent
WITH
CIVIL APPEAL NO. 8479/2010
State Of Kerala & Ors. ...Appellants
Versus
Dr. R. Sunil Kumar & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8480/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager, St. Michael's
College & Ors. ...Respondents
WITH
CIVIL APPEAL NOs. 8481-82/2010
State Of Kerala & Ors. etc. ...Appellants
Versus
Reena Nair & Ors. etc. ...Respondents
WITH
CIVIL APPEAL NO. 8483/2010
Deputy Director Of Collegiate
Education & Anr. ...Appellants
Versus
Omana Alex & Anr. ...Respondents
WITH
CIVIL APPEAL NOs. 1202-1203 of 2015
(Arising out of SLP (c) NOs. 29423-24/2010
The Director Of Collegiate
Education & Anr. ...Appellants
Versus
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL Nos. 8459-8461 OF 2010
State of Kerala & Ors. etc. etc. ...Appellants
Versus
Arun George & Ors. etc. etc. ...Respondents
WITH
CIVIL APPEAL Nos. 8463-8464/2010
The Deputy Director of Collegiate
Education & Ors. ...Appellants
Versus
Dr. Joseph Michael & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8466/2010
State Of Kerala & Ors. ...Appellants
Versus
Beena George & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8470/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager, Sacred
Heart College & Ors. ...Respondents
WITH
CIVIL APPEAL Nos. 8471-8472/2010
State Of Kerala & Ors. etc. etc. ...Appellants
Versus
N.A.M. College & Ors. etc. etc. ...Respondents
WITH
CIVIL APPEAL NO. 8473/2010
State Of Kerala & Ors. ...Appellants
Versus
Dr. A. Maria Starvin & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8474/2010
State Of Kerala & Ors. ...Appellants
Versus
Jesvin Jose & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8475/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager St. Plus
X College & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8476/2010
State Of Kerala ...Appellants
Versus
Dr. Anila. L. & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8477/2010
State Of Kerala & Ors. ...Appellants
Versus
Shacheendran V. & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8478/2010
State Of Kerala & Ors. ...Appellants
Versus
Salia Rex ...Respondent
WITH
CIVIL APPEAL NO. 8479/2010
State Of Kerala & Ors. ...Appellants
Versus
Dr. R. Sunil Kumar & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 8480/2010
State Of Kerala & Ors. ...Appellants
Versus
The Manager, St. Michael's
College & Ors. ...Respondents
WITH
CIVIL APPEAL NOs. 8481-82/2010
State Of Kerala & Ors. etc. ...Appellants
Versus
Reena Nair & Ors. etc. ...Respondents
WITH
CIVIL APPEAL NO. 8483/2010
Deputy Director Of Collegiate
Education & Anr. ...Appellants
Versus
Omana Alex & Anr. ...Respondents
WITH
CIVIL APPEAL NOs. 1202-1203 of 2015
(Arising out of SLP (c) NOs. 29423-24/2010
The Director Of Collegiate
Education & Anr. ...Appellants
Versus
Sindhu P. Kauma & Ors. ...Respondents
WITH
CIVIL APPEAL No. 1368/2011
State of Kerala & Ors. ...Appellants
Versus
P.V. Sandhya & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 10865/2011
State Of Kerala & Anr. ...Appellants
Versus
Sreedevi S.R. & Ors. ...Respondents
WITH
CIVIL APPEAL NOs. 10867-68/2011
State Of Kerala & Anr. etc. ...Appellants
Versus
Dr. J. Leji & Ors. etc. ...Respondents
WITH
CIVIL APPEAL NO. 1552/2012
State Of Kerala & Anr. ...Appellants
Versus
Dr. N.B. Sreekala & Anr. ...Respondents
WITH
CIVIL APPEAL NOS. 8893-8894/2014
State Of Kerala & Ors. ...Appellants
Versus
St. Peter's College Trust & Ors. ...Respondents
WITH
CIVIL APPEAL NO. 10869/2011
State Of Kerala & Anr. ...Appellants
Versus
Sindhu K.V. & Ors. ...Respondents
J U D G M E N T
R. BANUMATHI, J.
1. Leave granted in Special Leave Petition (C) Nos. 29423-29424 of 2010.
2. State of Kerala has filed these appeals assailing the order passed
by the High Court allowing various review petitions filed by the
respondents and declaring that the conditions relied on by the Government
are violative of the provisions contained in Direct Payment Agreement and
the University Statutes and directing the State to pay salary and
allowances to the teachers who were appointed by the Private Managements
in the newly commenced courses.
3. The issue arising in these appeals being similar, the cases were
heard together and shall stand disposed of by this common order. For
convenience, the appeals filed by State of Kerala and others in C.A. Nos.
8459-8461 of 2010 challenging the order dated 07.10.2009 in R.P. Nos. 101 &
180 of 2008 and W.A. No. 2529 of 2005 are taken as lead case.
4. Briefly stated the background facts are as under:-
The State of Kerala accorded sanction on 09.11.1998 to the private
educational institutions and managements for starting few new courses
subject to the condition that there should be no additional financial
commitment on the part of the State on that account. The 8th respondent-
management applied to the Mahatama Gandhi University and the university
vide an order dated 13.11.1998 granted permission to start new
degree/graduate and post-graduate courses w.e.f. the academic session 1998-
99 without any additional financial commitment to the
University/Government. The managements for various aided colleges
including the 8th respondent - management applied for affiliation of new
courses. The Government issued an order dated 06.12.1999 according
sanction for starting the new courses as mentioned in the appendix to the
Government order subject to the condition that the expenditure will not
exceed the budget allotment for the purpose of any account. Respondent
Nos. 1 to 7 who were appointed by the 8th respondent-management to the
various new courses sanctioned by the Government, the management forwarded
the proposal for approval of their appointment to the university; but the
same was rejected on 31.05.2002. In the year 2003, staff fixation order
was issued to the Secretary of 8th respondent - management on 10.12.2003
for the years 2001-02 and 2002-03.
5. Being aggrieved by the non-approval of the appointment of respondent
nos. 1 to 8, respondents preferred Writ Petition (c) No. 482 of 2005
seeking a writ of mandamus and also to quash the staff fixation orders.
Vide a judgment dated 12.08.2005, learned Single Judge allowed the writ
petition holding that the Government is liable to pay the salary and other
allowances to the teachers appointed to the new courses by the managements.
6. Aggrieved by the said order, State of Kerala preferred an appeal
bearing W.A. NO. 2529 of 2005. In the meantime, many writ petitions were
filed on similar grounds. By the common judgment dated 18.08.2007, Division
Bench allowed the appeal filed by the State of Kerala and dismissed the
other writ petitions. Division Bench held that the State can always impose
conditions while according sanction and the condition so imposed, that the
new appointments are without any additional financial commitment to the
State, is perfectly legal and valid and the private college managements are
bound by it.
7. Aggrieved by the same, various review petitions were preferred by the
respondents and also other private college managements contending that the
said judgment dated 18.08.2007 was rendered without adverting to the
provisions of the University Act, the Statutes, the Direct Payment
Agreement and various judgments of the Apex Court as also that of the High
Court. Vide a common order dated 7.8.2009, the Division Bench allowed the
review petitions holding that the conclusion of the Division Bench in W.A.
No. 2529 of 2005 (dated 18.08.2007) that Direct Payment Agreement do not
apply to courses subsequently commenced, is directly contrary to Clause 35
of the Agreement. While allowing the review petitions, the Court directed
the State to pay salary and allowances to the teachers who were appointed
by the private managements in the newly commenced courses. Being
aggrieved, the State has filed these appeals assailing the said order.
8. Mr. C.S. Rajan, learned senior counsel for the appellants contended
that Government should not be compelled to bear the salary and expenses of
those teachers who were appointed by the private managements, as private
managements got the approval of the new courses subject to the condition
that there will be no additional financial commitment. Further, learned
senior counsel for the State submitted that the private colleges, after
accepting the conditions in the Government Orders that there will be no
additional financial commitment, are estopped from contending the contrary
and the University has rightly rejected the approval of the appointment of
respondent nos. 1 to 7 for want of posts/strength fixed for the academic
year.
9. Per contra, Mr. Babu Varghese, learned senior counsel appearing for
respondent no. 8 submitted that in the guise of imposing restriction of
financial commitment the Government is violating the statutory provisions
as well as the clauses in the Articles of Direct Payment Agreement. It
was further contended that they have fully discharged their obligation in
terms of the provisions of Direct Payment Agreement, in terms of admission
of students, collection of fees, reservation of seats as prescribed by
Government and remitted the same in the Government treasury and, therefore,
the State is also obliged to perform its mutual obligation under the
Articles of Direct Payment Agreement. It was also submitted that the
documents obtained under the provisions of Right to Information Act which
are annexed would clearly show that there had been budget allocation for
sanctioning aided courses and some of the teachers appointed in the new
courses were paid the salary.
10. Mr. Mathai M. Paikeday, learned senior counsel for respondent nos. 1
to 7 reiterated the above submissions and additionally submitted that the
Government is bound to pay the salaries of the teachers as both the
selection of respondent nos. 1 to 7 and their appointment were in
accordance with the provisions of the University Laws and Articles of the
Direct Payment Agreement.
11. We have also heard the learned counsel for all other respondents who
are represented before us in other connected matters.
12. We have carefully considered the rival contentions and perused the
impugned order and other materials on record. The main point falling for
consideration is in respect of newly commenced courses for which
affiliation was granted whether the State Government is bound to pay the
salary to the teachers for the relevant period?
13. Direct Payment System was evolved by the State Government vide GOMS
No. 185/72/Edn. dated 30.08.1972 for all the private Arts and Science
colleges. Under the Direct Payment Agreement, Government decided to
introduce a scheme of direct payment of salaries to the teaching and non-
teaching staff of private colleges, the management of which agree to
Government control in the matter of appointment of the teaching and non-
teaching staff and in the admission of students. The control would be in
the form of laying down general principles to be followed and by
participation of representative of the Government and the Universities in
the selection and appointment of staff and in the admission of students.
Thus, a scheme for direct payment of salaries in private Arts and Science
colleges in consultation with the Universities, the representatives of the
private college managements and the teaching and non-teaching staff
representatives of the private colleges have been evolved. The 8th
respondent - management executed and agreed to the same and is said to have
complied with all the rules of the agreement.
14. Vide Government Order No. GOMS 134/98/H.Edn. dated 09.11.1998
sanction was accorded for starting new courses subject to the condition
that there will be no additional financial commitment on the part of
Government. Pursuant to the same, Vice-Chancellor of Mahatma Gandhi
University vide an order dated 13.11.1998 sanctioned the affiliation of the
new courses in the private colleges from the Academic Year 1998-99 subject
to ratification by the Syndicate and without any additional financial
commitment. Vide order dated 06.12.1999, Government granted approval for
new courses subject to stipulation that the expenditure will not exceed the
budget allotted for this purpose and University also approved the same vide
an order dated 10.12.1999 subject to the same conditions as stipulated in
the order dated 13.11.1998.
15. It appears that new courses so sanctioned led to the increase of work
load. So the private college managements acting in consonance with the
provisions of the University Statutes and Direct Payment Agreement
constituted Statutory Selection Committee, the Committee comprised of both
the representatives of the Government and the University. It is stated that
respondent nos. 1 to 7 were also appointed by the said Statutory Selection
Committee. Respondent Nos.1 to 4, 6 and 7 were appointed on 01.07.2002 and
respondent no. 5 on 07.01.2002.
16. Learned senior counsel appearing for the respondent nos. 1 to 7 has
urged that GOMS No. 134/98/H/Edn. dated 09.11.1998 and GOMS No.
162/99/H/Edn. were issued only to accommodate the lecturers who were
rendered surplus due to de-linking of pre-degree courses from the colleges
and the same fact is evident from annexure R1/3. It is stated that due to
de-linking of pre-degree courses, Pre-degree Courses (Abolition) Act, 1997
was passed and as per Section 5 of the Act, a statutory ban was imposed on
appointments for a period of three years commencing from 03.06.1997 to
02.06.2000. However, after the expiry of the period, the State has not
fixed staff pattern. Hence, respondent no. 8 and Kerala Private College
Management Association and other private colleges approached the High
Court by OP No. 21268 of 2002 which was disposed of directing the
university to fix the staff strength in the respondents' colleges and to
consider the representations of the private colleges in accordance with the
Statutes and Ordinances. As the University did not comply with the order,
contempt proceedings were initiated against the University and it has
later approved certain appointments; but rejected the appointment of
respondent nos. 1 to 7 due to want of vacancy and also due to the fact
that the courses were sanctioned without any financial commitment on the
part of the Government. Appointments of respondent nos. 1 to 7 were thus
not approved and, hence, they were not getting salary.
17. Although, initially approval was not granted for the appointments of
respondent nos. 1 to 7, the University granted approval to these
appointments vide its order No. AC.B1/1/3169/05 dated 29.10.2005. As
noticed earlier, sanction of new courses led to the increase of work load
and the services of respondent nos. 1 to 7 were utilised by the 8th
respondent - management. The courses are purely aided courses and
therefore, the provisions of Direct Payment Agreement are undoutedly
applicable. The State administration cannot shirk its responsibility of
ensuring proper and quality education in Schools and Colleges on the plea
of lack of resources. In the facts and circumstances of the case in hand,
we do not deem it necessary to consider this question in further detail.
18. It is also to be noted that by perusal of the records viz. Annexures
R8/14, 15, 16, 17 & 18, it is evident that respondent nos. 1 to 7 were
appointed only against sanctioned posts. It is not the case of the
Government that 8th respondent - management violated the terms of the
Direct Payment Agreement. For many years i.e. from 2002, services of
respondent nos. 1 to 7 have been utilized for imparting instruction,
invigilation and other duties. By perusal of the information obtained
under Right to Information Act that the Government has paid salaries and
emoluments to some of the lecturers appointed in other private colleges.
When the respondent nos. 1 to 7 were appointed by the Statutory Selection
Committee, we find no reason as to why respondent nos. 1 to 7 should be
denied the payment of salary. When respondent nos. 1 to 7 have been
appointed by the Statutory Selection Committee, it becomes obligatory for
the Government to honour these appointments and pay the salary.
19. In our considered view, the learned Single Judge of the High Court
and the Division Bench in review petitions rightly held that respondent
nos. 1 to 7 are entitled to the payment of salary for the relevant period
and we find no reason to interfere with the same.
20. In the result, these appeals are dismissed and consequently, the
other connected appeals stand dismissed.
..........................J.
(V. GOPALA GOWDA)
..........................J.
(R. BANUMATHI)
NEW DELHI;
JANUARY 14, 2015.