Case Note & Summary
The Supreme Court considered a civil appeal by special leave against a Division Bench judgment of the Gujarat High Court dated March 3, 1994, which had allowed a writ petition filed by a trust running a recognized primary school. The dispute concerned grant-in-aid for non-teaching staff, specifically one clerk and one peon. The trust claimed that denial of such grant to a single-school institution, while institutions running multiple schools were entitled to overhead expenditure grant under Rule 115(3) of the Bombay Primary Education Act, 1949, was discriminatory under Article 14 of the Constitution. The High Court accepted this contention and directed the State to pay grant-in-aid for non-teaching staff. The State appealed. Before the Supreme Court, the State clarified its position through an additional affidavit filed by the Director of Primary Education. The affidavit stated that the controversy was limited to non-teaching staff; grant for teaching staff was paid to all private schools irrespective of whether they ran one or multiple schools, at rates varying from 85% to 95% of salary expenses. However, no grant was ever paid for non-teaching staff to any primary school in Gujarat, whether government, municipal, or private. The affidavit further explained that even government primary schools did not appoint non-teaching staff like clerks or peons; if a school had more than 200 students, an additional teacher was permitted, and teachers often performed administrative, clerical, and miscellaneous work. Salaries of teachers were directly paid by the government through cheque. The core legal question was whether Rule 115(3) of the Bombay Primary Education Act, 1949 entitled a single approved school to overhead expenditure grant for non-teaching staff. The Supreme Court examined the rule, which provided that 'educational bodies or associations conducting a number of approved schools shall be entitled to grant on overhead expenditure at three fourths of their approved expenditure under that head.' The Court held that this provision applied only to institutions conducting multiple schools, not to single schools. The High Court had misread the rule to infer that because multi-school institutions received such grant, refusal to a single school was discriminatory. The Supreme Court found no discrimination because the State's practice showed that no primary school in Gujarat, including government schools, received grant for non-teaching staff; administrative work was handled by teachers or additional teachers. Therefore, the denial to a single-school institution was not arbitrary or violative of Article 14. Accordingly, the appeals were allowed, the High Court direction was set aside, and no costs were awarded.
Headnote
A) Education Law - Grant-in-Aid - Rule 115(3) of Bombay Primary Education Act, 1949 - Overhead Expenditure Grant - A single approved private primary school is not entitled to grant-in-aid for non-teaching staff (clerk and peon) because sub-rule (3) confers such overhead expenditure grant only on educational bodies or associations conducting a number of approved schools; the State clarified that no primary school in Gujarat, government or private, receives grant for non-teaching staff and administrative work is performed by teachers or additional teachers if enrollment exceeds 200; the High Court's finding of discrimination under Article 14 was erroneous; Held that the appeals are allowed and the High Court's direction to pay grant is set aside.
Issue of Consideration
Whether institutions running a single approved primary school are entitled to grant-in-aid for non-teaching staff such as a clerk and peon under Rule 115(3) of the Bombay Primary Education Act, 1949 and whether denial of such grant to a single-school institution while granting it to multi-school institutions violates Article 14 of the Constitution of India.
Final Decision
Appeals allowed; High Court judgment set aside; no costs.
Law Points
- Rule 115(3) of Bombay Primary Education Act
- 1949 grants overhead expenditure only to educational bodies or associations conducting a number of approved schools
- not to single schools
- denial of non-teaching staff grant to a single school is not discrimination under Article 14 where no primary school in State receives such grant and administrative work is performed by teachers
- grant for teaching staff is paid to all private schools irrespective of number of schools run.



