Bombay High Court Dismisses Petition Challenging 90% Salary Grant Clause in Government Resolution for Aided Technical Institutions. Clause No.10 of GR dated 21.08.2015 does not curtail right to 100% salary as grant-in-aid is limited to 90% under Rule 9 of GR dated 18.05.1978.

High Court: Bombay High Court
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Case Note & Summary

The petitioner, Government Aided Technical Institutes Employees Welfare Board (GATIWEB), a registered society representing employees of aided technical institutions, filed a writ petition under Article 226 of the Constitution of India challenging Clause No.10 of Government Resolution dated 21.08.2015 issued by the State of Maharashtra. The GR introduced HTE-Sevarth Pranali, a computerized system for processing salary bills, but Clause No.10 stipulated that aided non-government technical institutions are eligible for 90% grants. The petitioner contended that prior to this GR, employees received 100% salary from grant-in-aid, and Clause No.10 curtailed their right to full salary, causing financial hardship. They sought a mandamus to direct the respondents to release 100% salary through the portal. The respondents, including the State and Directorate of Technical Education, filed an affidavit-in-reply stating that under Rule 9 of the Government Resolution dated 18.05.1978, maintenance grant has always been 90% of admissible expenditure, and institutions are required to meet the balance 10% from fees or other sources. They argued that the GR dated 21.08.2015 merely introduced an online payment system for the 90% grant, and the State cannot bear additional burden due to revenue deficit. The court examined the submissions and documents, noting that the policy of 90% maintenance grant existed since 1977. The court held that grant-in-aid is not a right and is subject to fund availability. Clause 6(i) of the 1978 GR makes entire salary expenditure admissible for grant, but Rule 9 limits the grant to 90%. The HTE-Sevarth system only facilitates payment of the admissible grant; institutions must arrange the remaining 10%. The court found no arbitrariness or violation of rights and dismissed the petition, relying on earlier judgments in Swargiya Raghobaji Bachale Shikshan Prasarak Mandal and Keraleeya Samajam.

Headnote

A) Constitutional Law - Writ Jurisdiction - Grant-in-Aid Policy - Article 226 of Constitution of India - Challenge to Clause No.10 of Government Resolution dated 21.08.2015 - Petitioner sought mandamus for release of 100% salary - Court held that grant-in-aid is not a right and is subject to availability of funds - Maintenance grant has been 90% since 1977 under Rule 9 of GR dated 18.05.1978 - Institutions are required to meet balance 10% from fees or other sources - Clause No.10 does not curtail any right as 100% salary grant was never guaranteed - Petition dismissed (Paras 11-14).

B) Service Law - Salary - Grant-in-Aid - Government Resolution dated 18.05.1978 - Rule 9 - Maintenance grant @ 90% of admissible expenditure - Petitioner's contention that entire salary expenditure is admissible under Clause 6(i) - Court clarified that admissibility does not mean 100% grant; grant is limited to 90% under Rule 9 - Institutions must arrange 10% - No violation of employees' right to salary (Paras 6-10).

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Issue of Consideration

Whether Clause No.10 of Government Resolution dated 21.08.2015, which provides for release of 90% salary grants through HTE-Sevarth Pranali, is arbitrary and violates the right of employees to receive 100% salary?

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Final Decision

The petition is dismissed. Clause No.10 of Government Resolution dated 21.08.2015 is not arbitrary. The State is not obligated to release 100% salary grant; grant-in-aid is limited to 90% under Rule 9 of GR dated 18.05.1978. Institutions must arrange balance 10% from fees or other sources.

Law Points

  • Grant-in-aid is not a right
  • maintenance grant limited to 90% of admissible expenditure
  • institutions must arrange balance 10%
  • HTE-Sevarth Pranali is a payment mechanism
  • no violation of Article 226
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Case Details

2024 Lawtext (BOM) (6) 104

Writ Petition No.10874/2017

2024-06-10

S. G. Chapalgaonkar, J.

Mr. V. D. Hon (Senior Advocate for petitioner), Mr. Rajendra Deshmukh (Senior Advocate) and Mr. Swapnil Rathi (Advocate for respondent-institutions), Mr. P. S. Patil (Addl. GP for respondent nos.1 and 2)

Government Aided Technical Institutes Employees Welfare Board (GATIWEB)

State of Maharashtra through its Higher and Technical Department and others

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Nature of Litigation

Writ petition under Article 226 challenging Clause No.10 of Government Resolution dated 21.08.2015 and seeking mandamus for release of 100% salary.

Remedy Sought

Petitioner sought quashing of Clause No.10 of GR dated 21.08.2015 and direction to respondents to release 100% salary and allowances to its members through HTE-Sevarth Pranali.

Filing Reason

Petitioner alleged that Clause No.10 of GR dated 21.08.2015 arbitrarily curtailed the right of employees to receive 100% salary by limiting grant-in-aid to 90%.

Issues

Whether Clause No.10 of Government Resolution dated 21.08.2015 is arbitrary and violates principles of natural justice? Whether the State is obligated to release 100% salary grant to aided technical institutions? Whether the petitioner is entitled to a writ of mandamus for release of 100% salary?

Submissions/Arguments

Petitioner argued that under Clause 6(i) of GR dated 18.05.1978, entire salary expenditure is admissible for grant, and prior to 2015, 100% salary was paid. Clause No.10 of GR dated 21.08.2015 curtailed this right, causing financial hardship. Respondent-Institutions supported petitioner, stating they lack funds to meet 10% liability as fees are regulated. Respondent nos.1 and 2 argued that under Rule 9 of GR dated 18.05.1978, maintenance grant is 90% of admissible expenditure, and institutions must arrange 10%. HTE-Sevarth only facilitates payment of 90% grant. State cannot bear additional burden due to revenue deficit.

Ratio Decidendi

Grant-in-aid is not a right and is subject to availability of funds. Under Rule 9 of Government Resolution dated 18.05.1978, maintenance grant is limited to 90% of admissible expenditure. Clause 6(i) making salary expenditure admissible does not guarantee 100% grant. The HTE-Sevarth system introduced by GR dated 21.08.2015 only facilitates payment of the admissible 90% grant; institutions are responsible for the remaining 10%. There is no violation of employees' right to salary as the State never guaranteed 100% salary grant.

Judgment Excerpts

The petitioner approaches this Court under Article 226 of the Constitution of India, assailing Clause No.10 of the Government Resolution dated 21.08.2015... As per Rule 9, maintenance grant @ 90% of the total admissible expenditure including salary and non salary components have been made admissible. The grant-in-aid is subject to availability of the funds and cannot be claimed as a right by grantee Institutions. We have considered the submissions advanced by the learned Advocates appearing for the respective parties.

Procedural History

The petitioner filed Writ Petition No.10874/2017 before the Bombay High Court, Nagpur Bench, challenging Clause No.10 of Government Resolution dated 21.08.2015. Rule was issued and the matter was taken up for final hearing at the stage of admission with consent of parties. Affidavit-in-reply was filed by respondent nos.1 and 2. The court heard arguments and dismissed the petition.

Acts & Sections

  • Constitution of India: Article 226
  • Bombay Public Trust Act, 1950:
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