Case Note & Summary
The dispute arose from the State of Kerala's decision to cancel the sanction granted to educational agencies for opening new unaided recognized schools. The respondents, who were running private schools, had applied for permission to open or upgrade schools based on a government notification listing areas for new schools. Initially, the State granted sanction on February 4, 1987, but later, under a new ministry, revoked this sanction on May 19, 1987, citing various administrative reasons. The respondents challenged this cancellation in the High Court, which ruled in their favor, leading the State to appeal to the Supreme Court. The Supreme Court upheld the High Court's decision, emphasizing that the cancellation violated principles of natural justice as the respondents were not given a chance to contest the revocation. The court noted that recognition is crucial for students in unaided schools to participate in state examinations and access higher education. The court found that the Government's actions were not justified under the Kerala Education Act, as the cancellation order did not follow the required procedural safeguards. The court ultimately dismissed the State's appeals, reinforcing the rights of educational agencies under the Act and the necessity of adhering to established procedures (Paras 107B-C, 122E).
Headnote
A) Administrative Law - Cancellation of Sanction - Authority of Government - Kerala Education Act, 1957, Sections 2(7), 2(8), 37 - The Government's cancellation of the sanction for opening new schools was held invalid due to non-observance of natural justice principles, as the respondents were not given an opportunity to be heard before the cancellation. The court emphasized the importance of recognition for educational agencies and the procedural rights conferred by the Act. Held that the cancellation order was vitiated (Paras 107B-C, 122E).
Issue of Consideration
Whether the State Government had the authority to cancel the sanction for opening new schools without following the principles of natural justice.
Final Decision
The Supreme Court dismissed the appeals filed by the State of Kerala, affirming the Division Bench's ruling that the cancellation of the sanction was invalid due to non-observance of natural justice principles.
Law Points
- Natural justice
- Educational agency rights
- Cancellation of sanction
- Kerala Education Act
- 1957
- Administrative discretion



