Case Note & Summary
The petitioner, Pipla Education Society, challenged an order dated 31/12/1997 passed by the Deputy Director of Education, Nagpur, imposing a 25% penal cut on the non-salary grant payable to the society for the year 1997-98 under Clause 97.2 of the Secondary School Code. The dispute arose when the society terminated the services of one Shri D.C. Karvekar, the headmaster of the school, after the school was derecognized. Karvekar filed an appeal under Section 9 of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977, and also applied for stay of termination, which was not granted by the Tribunal. During the pendency of the appeal, the Deputy Director of Education, acting on a communication from the State Government, directed the society to allow Karvekar to rejoin as headmaster. When the society failed to comply, the Deputy Director imposed the penal cut. The petitioner contended that the Deputy Director had no authority to issue such a direction based solely on a government communication, and that under Clause 97.2, the Deputy Director alone is entitled to exercise power and issue directions to the management. The court agreed, holding that the Deputy Director must exercise his own discretion and cannot act merely on the basis of a government communication. The impugned order was quashed and set aside, and the respondents were directed to release the amount of the penal cut to the petitioner within three months.
Headnote
A) Education Law - Secondary School Code - Clause 97.2 - Penal Cut on Grant - The Deputy Director of Education imposed a 25% penal cut on non-salary grant payable to the petitioner society for the year 1997-98 based solely on a communication from the State Government directing reinstatement of a headmaster. The court held that the Deputy Director must exercise his own discretion and cannot act merely on the basis of a government communication. The impugned order was quashed and set aside. (Paras 2-4)
Issue of Consideration
Whether the Deputy Director of Education can impose a penal cut on non-salary grant under Clause 97.2 of the Secondary School Code solely on the basis of a communication from the State Government without independent application of mind.
Final Decision
The impugned order dated 31/12/1997 is quashed and set aside. The respondents are directed to release the amount of the penal cut to the petitioner within three months.
Law Points
- Clause 97.2 of Secondary School Code
- Deputy Director of Education must exercise independent discretion
- Penal cut on grant cannot be based solely on government communication
- Natural justice requires hearing before imposing penalty




