Supreme Court Examines State Power to Grant and Withdraw Permission for Technical Institutions Under Central Act 1987. The Court Considered Whether the State Act and University Act Were Repugnant to the Central Act and Entry 66 of List I of the Constitution in the Context of Self-Financing Engineering Colleges in Tamil Nadu.

Writ petitions and appeals challenging the power of the State Government and University to withdraw permission and affiliation of private self-financing engineering colleges after the All India Council for Technical Education Act, 1987 came into force.

The first respondent Trust sought a writ of prohibition against the Director of Technical Education from proceeding with the show cause notice and a writ to quash the University Syndicate resolution rejecting affiliation and to direct grant of provisional affiliation.

The Director of Technical Education issued a show cause notice to withdraw permission and the University resolved to reject affiliation based on a High Power Committee report alleging deficiencies in infrastructure and non-fulfillment of conditions.

The learned Single Judge allowed the writ petition against the State Government, holding that the State had no power to cancel permission after the Central Act; dismissed the writ petition against the University, holding that the University could act under Statute 44[A] due to non-fulfillment of condition of obtaining Council concurrence. On appeal, the Division Bench allowed the Trust's appeal, quashing the University Syndicate resolution and dismissing the appeals of the State and University, holding that neither State nor University could act based on the High Power Committee report and that condition No.18 requiring concurrence of the non-statutory predecessor Council was beyond jurisdiction.

Whether after the coming into force of the All India Council for Technical Education Act, 1987, the State Government has power to grant and withdraw permission to start a technical institution as defined in the Central Act. Whether the University could refuse affiliation based on non-fulfillment of a condition requiring concurrence of the non-statutory predecessor Council after the Central Act came into force. Whether the Tamil Nadu Private Colleges (Regulation) Act, 1976 and the Madras University Act, 1923 are repugnant to the Central Act and Entry 66 of List I of the Constitution.

The State Government and University contended that they had power to withdraw permission and affiliation based on the High Power Committee report and non-fulfillment of conditions imposed at the time of grant. The Trust contended that after the Central Act, the State Government and University lacked jurisdiction to derecognise or disaffiliate the college, and that the condition requiring concurrence of the non-statutory Council was invalid.

The short question involved in these matters is whether after the coming into force of the All India Council for Technical Education Act, 1987 the State Government has power to grant and withdraw permission to start a technical institution as defined in the Central Act. Entry 66 of List 1, i.e, the Union List of Seventh Schedule of the Constitution reads as follows: '66. Co-ordination and determination of standards in institutions for higher education or research and scientific and technical institutions.' after the passing of the Central Act the State Government had no power to cancel the permission granted to the Trust to start the College and it could not rely for the purpose on a report of the High Power Committee appointed by it

In 1984, the State Government permitted private managements to start new Engineering Colleges under self-financing scheme. In 1987, the Trust obtained permission to start Adhiyaman College of Engineering at Hosur. The College started functioning in July 1987. On 27 March 1989, the State Government appointed a High Power Committee to assess self-financing Engineering Colleges; its report alleged non-fulfillment of conditions. On 16 July 1989, Director of Technical Education issued a show cause notice to withdraw permission. On 21 July 1989, University Syndicate resolved to reject affiliation for 1989-90 and to cancel earlier affiliations based on the High Power Committee report. The Trust filed writ petitions; Single Judge allowed the writ against State Government and dismissed the writ against University. On appeals, the Division Bench allowed the Trust's appeal, quashed the University Syndicate resolution, and dismissed the appeals of the State Government and University.

• All India Council for Technical Education Act, 1987:
• Tamil Nadu Private Colleges (Regulation) Act, 1976:
• Tamil Nadu Private Colleges (Regulation) Rules, 1976:
• Madras University Act, 1923:
• Constitution of India: Entry 66 List I, Entry 11 List II, Entry 25 List III, Entry 63 List I, Entry 64 List I, Entry 65 List I