Case Note & Summary
The petitioners, a registered trust running a residential school for disabled children, filed a writ petition challenging the cancellation of their school license and its subsequent transfer to another trust. The school, started in 1992, had been receiving government grants, but the license was cancelled by the Commissioner Handicap Welfare on 07.07.2012, on grounds that the school was found non-functioning during multiple inspections between October 2011 and February 2012. The petitioners appealed to the Minister for Social Justice, who dismissed it on 03.12.2013; however, the High Court in an earlier writ petition quashed that order for lack of proper hearing and remanded the matter. After rehearing, the Minister again rejected the appeal on 06.09.2014, and the State issued a Government Resolution on 12.09.2014 transferring the school to respondent no.4 trust. The petitioners contended that the cancellation was unjustified because the closure resulted from non-receipt of salary and non-salary grants for several years, and that the transfer violated Clause 10 of the Government Resolution dated 24.01.2014, which required the transferee institution to have functioned for at least three years. They also argued that a consent resolution passed on 18.07.2012 had been revoked by a subsequent resolution on 15.08.2013. The respondents maintained that the school was non-functional, the petitioners had consented to the transfer, and they had suppressed material facts. The judgment was reserved on 5th December 2015 and pronounced on 29th February 2016, but the final reasoning and order are not included in the extracted text.
Issue of Consideration
Whether the order dated 07.07.2012 cancelling the license of petitioner no.2 school was legally valid; whether the appellate order dated 06.09.2014 confirming the cancellation was proper; and whether the Government Resolution dated 12.09.2014 transferring the school to respondent no.4 was in compliance with the provisions of Government Resolution dated 24.01.2014.
Case Details
2016 LawText (BOM) (02) 16
Writ Petition No. 8685 of 2014
V.D. Salunke for Petitioners; S.K. Tambe, AGP for Respondent Nos. 1 to 3; Sachin S. Deshmukh for Respondent No. 4
Madhukar Sikshan Prasarak Mandal, Khinala, and Jai Shankar Residential Handicap School, Jalkot
State of Maharashtra through Secretary, Social Justice Special Assistance Department, Minister for Social Justice, Commissioner Handicap Welfare, and Maharani Ahilyadevi Holkar Samajik Bahuuddeshiya Seva Bhavi Sanstha, Nerul
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India challenging administrative orders cancelling a school license and transferring the institution.
Remedy Sought
Petitioners sought quashment of orders dated 07.07.2012, 06.09.2014, and Government Resolution dated 12.09.2014.
Filing Reason
The petitioner trust's license to run a residential handicap school was cancelled by the Commissioner Handicap Welfare on grounds of non-functioning, and the school was transferred to another trust; the petitioners contended that cancellation was unjustified as non-functioning was due to non-receipt of government grants, and the transfer violated Government Resolution guidelines.
Previous Decisions
The Minister for Social Justice initially dismissed the appeal on 03.12.2013; the High Court in Writ Petition No. 5473/2012 quashed that order and remanded for fresh hearing; after rehearing, the Minister again rejected the appeal on 06.09.2014.
Issues
Whether the cancellation of license order dated 07.07.2012 was legally valid and justified.
Whether the appellate order dated 06.09.2014 failed to consider the grounds raised by the petitioners.
Whether the Government Resolution dated 12.09.2014 transferring the school to Respondent No.4 complied with Clause 10 of the Government Resolution dated 24.01.2014.
Submissions/Arguments
Petitioners argued that cancellation was unjustified as school closure was due to non-receipt of salary and non-salary grants, that the transfer order violated the requirement that the transferee institution must have functioned for three years under Clause 10 of GR dated 24.01.2014, and that they had revoked the consent resolution dated 18.07.2012.
Respondents contended that the school was found non-functioning on four visits, petitioners consented to transfer via resolution, failed to file appeal within time, and suppressed facts from court; Respondent No.4 added that it had already commenced the school and absorbed employees.
Judgment Excerpts
The notice dated 26.6.2012 was issued by Respondent No.3, relying on the report of District Social Welfare Officer, Zilla Parishad, Latur.
According to the petitioners, Petitioner No.2 school could not have been transferred to Respondent No.4 in view of Clause 10 of the Government Resolution dated 24th January, 2014, which prescribes that the institution, to which nonfunctioning or closed down handicapped school receiving grantinaid is to be transferred, must be functioning for more than three years; whereas Respondent No.4 has not completed the said period of three years.
Respondents contend that the petitioners themselves have consented for transfer of petitioner no.2school to Respondent no.4and as such, they are now estopped from taking any contrary plea.
Procedural History
The petitioner trust ran a school since 1992. License renewed until 31.03.2011. Show cause notice 26.06.2012. Order of cancellation 07.07.2012 by Commissioner. Appeal filed before Minister. Minister dismissed appeal 03.12.2013. In Writ Petition 5473/2012, High Court quashed the order and remanded for fresh hearing. After rehearing, Minister rejected appeal 06.09.2014. Government Resolution dated 12.09.2014 transferred school to Respondent No.4. Present writ petition filed challenging these three orders.
Acts & Sections
- Bombay Public Trusts Act, 1950:
