Case Note & Summary
The Borivali Education Society (Petitioner No.1), a society registered under the Societies Registration Act, 1860, established and administered three primary schools in Mumbai: Sheth Jadhavji Jethabai Primary School (Gujarati Medium), Borivali Education Society Primary School (Gujarati Medium), and R.G. Bajoria English Medium Primary School. These schools were recognized by the Municipal Corporation of Greater Mumbai (MCGM) and were eligible for grants-in-aid under the Grant-in-Aid Code applicable to approved private primary schools. The petitioner filed a writ petition under Article 226 of the Constitution seeking recovery of grants totaling Rs.47,21,007/- for the period from 1992-93 to 1996-97, along with interest at 18% per annum. The petitioner claimed to be a minority institution and argued that the denial of grants was arbitrary and violative of Article 30(1) of the Constitution. The respondents, MCGM and the Education Officer, contended that the grants were not payable due to certain deficiencies, but the court found that no valid reason was communicated to the petitioner. The court held that the denial of grants without justification was arbitrary and infringed the right of minority institutions to administer their affairs. The court directed the respondents to pay the principal amount of Rs.47,21,007/- with interest at 6% per annum from the date of filing of the petition (1997) until payment. The petition was allowed in part.
Headnote
A) Constitutional Law - Minority Educational Institutions - Article 30(1) of the Constitution of India - Right to administer and receive grants - The petitioner society, claiming to be a minority institution, sought recovery of grants-in-aid for its three primary schools from the Municipal Corporation. The court held that the denial of grants without any valid reason or justification is arbitrary and infringes the right under Article 30(1). The Corporation is bound to release grants in accordance with the Grant-in-Aid Code. (Paras 1-15) B) Education Law - Grant-in-Aid Code - Recognition and Grants - The schools were recognized and eligible for grants under the Grant-in-Aid Code. The court found that the Corporation had no power to withhold grants for the period in question, as the schools were duly recognized and the Code mandated payment. (Paras 2-10) C) Administrative Law - Arbitrariness - Denial of Grants - The Corporation's failure to pay grants for five years without any communication or reason was held to be arbitrary and violative of Article 14 of the Constitution. The court directed payment of the principal amount of Rs.47,21,007/- with interest at 6% per annum from the date of filing of the petition. (Paras 11-15)
Issue of Consideration
Whether the petitioners, claiming to be a minority educational institution, are entitled to recover grants-in-aid from the Municipal Corporation for the period from 1992-93 to 1996-97, and whether the denial of such grants is arbitrary and violative of Article 30(1) of the Constitution.
Final Decision
The petition is allowed in part. The respondents are directed to pay the principal amount of Rs.47,21,007/- with interest at 6% per annum from the date of filing of the petition (1997) until payment.
Law Points
- Minority educational institutions are entitled to grants-in-aid under Article 30(1) of the Constitution
- Grant-in-Aid Code
- Bombay Municipal Corporation Act
- 1888
- Societies Registration Act
- 1860
