Bombay High Court Allows Writ Petition for Grant-in-Aid to Law College Despite Undertaking Not to Claim Financial Help. Undertaking Not Contemplated Under Policy Cannot Deny Claim When Similarly Situated Institutions Received Phase-wise Grants.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The petitioner, Shri Shikshan Prasarak Sanstha and its law college, filed a writ petition seeking grant-in-aid from the State of Maharashtra. The college was established in 1998 with permission from the Bar Council of India and Pune University, but the State granted permission without any grant-in-aid. The petitioner submitted a proposal in 1994 and the State granted permission on 23rd June 1998 for the academic year 1998-99 onwards, but without grant. The petitioner contended that similarly situated institutions were receiving phase-wise grants under the then-existing policy prior to 2001, and that the denial was based on an undertaking given by the petitioner not to claim financial help. The petitioner restricted its claim to grant from 27th March 2008, the date of the last representation. The respondents opposed the petition, arguing that the petitioner had given an undertaking not to claim financial help and that the college would charge fees as per State norms. The Court observed that such an undertaking was never contemplated under the then-existing policy and that the State had been providing phase-wise grants to other institutions. The Court held that the undertaking could not be a ground to deny the claim, as all other similarly situated institutions were getting grants. The Court directed the respondents to consider the petitioner's claim for grant-in-aid from 27th March 2008 and pass appropriate orders within three months, treating the petitioner at par with other institutions. The writ petition was allowed with no order as to costs.

Headnote

A) Education Law - Grant-in-Aid - Undertaking - The petitioner law college, established in 1998 with permission from the State without grant-in-aid, sought grant based on the then-existing policy. The State opposed relying on the petitioner's undertaking not to claim financial help. The Court held that such undertaking, not contemplated under the policy, cannot deny the claim when other similarly situated institutions received phase-wise grants. (Paras 4-6)

B) Education Law - Grant-in-Aid - Phase-wise Grant - The Court directed the State to consider the petitioner's claim for grant-in-aid from 27th March 2008, the date of the last representation, and to pass appropriate orders within three months, as the petitioner is entitled to be treated at par with other institutions. (Paras 7-8)

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Issue of Consideration

Whether the petitioner education institution is entitled to grant-in-aid from the State despite having given an undertaking not to claim financial help, when similarly situated institutions have been receiving phase-wise grants.

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Final Decision

The writ petition is allowed. The respondents are directed to consider the petitioner's claim for grant-in-aid from 27th March 2008 and pass appropriate orders within three months, treating the petitioner at par with other similarly situated institutions. Rule made absolute. No order as to costs.

Law Points

  • Grant-in-aid
  • Undertaking
  • Estoppel
  • Policy
  • Phase-wise grant
  • Similarly situated institutions
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Case Details

2017 LawText (BOM) (07) 2

Writ Petition No. 1255 of 2015

2017-07-05

Anoop V. Mohta, Sunil K. Kotwal

Mr. A.S. Bajaj for petitioner, Mrs. M.A. Deshpande for respondents

Shri Shikshan Prasarak Sanstha, Sangamner and Shri Omkarnath Malpani Law College, Sangamner

State of Maharashtra, Director of Higher Education, Joint Director of Higher Education

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Nature of Litigation

Writ petition seeking grant-in-aid for a law college from the State.

Remedy Sought

Petitioner sought a writ of mandamus directing respondents to allow the proposal for grant-in-aid and to give grant as given to other similarly situated colleges.

Filing Reason

The State granted permission to start the law college without grant-in-aid, and the petitioner's subsequent representations for grant were not considered.

Issues

Whether the petitioner is entitled to grant-in-aid despite giving an undertaking not to claim financial help. Whether the State can deny grant-in-aid to the petitioner when similarly situated institutions have been receiving phase-wise grants.

Submissions/Arguments

Petitioner argued that similarly situated institutions have been getting phase-wise grants under the then-existing policy, and the undertaking was not contemplated under the policy. Respondents argued that the petitioner gave an undertaking not to claim financial help, and the college would charge fees as per State norms.

Ratio Decidendi

An undertaking not to claim financial help, which was not contemplated under the then-existing policy, cannot be a ground to deny grant-in-aid when all other similarly situated institutions have been receiving phase-wise grants. The State must treat the petitioner at par with other institutions.

Judgment Excerpts

Such undertaking was never contemplated under then existing policy. Such under influence undertaking, in the present facts and circumstances, can not be the ground to deny the claim of grant, as all other similarly situated institutions have been getting phase wise grant since the date of permissions.

Procedural History

The petitioner submitted a proposal in 1994 for opening a new law college. Permission was granted by Bar Council of India on 14th May 1997, and by Pune University. On 23rd June 1998, the State granted permission without grant-in-aid. The petitioner made representations, including on 27th March 2008, but no grant was given. The petitioner then filed the present writ petition in 2015.

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High Court Bombay High Court Allows Writ Petition for Grant-in-Aid to Law College Despite Undertaking Not to Claim Financial Help. Undertaking Not Contemplated Under Policy Cannot Deny Claim When Similarly Situated Institutions Received Phase-wise Grants.
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