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Friday, September 9, 2011

SUPREME COURT JUDGEMENT ON AIDED POSTS



                                         REPORTABLE
              IN THE SUPREME COURT OF INDIA
                  CIVIL APPELLATE JURISDICTION
      SPECIAL LEAVE PETITION (CIVIL) NO.9541 of 2007
GOVT. OF A.P. & ORS.                     ...      PETITIONERS
           Vs.
SRI SEVADAS VIDYAMANDIR HIGH
SCHOOL & ORS.                            ...      RESPONDENTS
                                WITH
                   S.L.P.(C) No.10945 of 2007
                                AND
                    S.L.P.(C) No.469 of 2011
                                AND
              S.L.P.(C) No.15231-32 of  2011
                      J U D G M E N T
ALTAMAS KABIR, J.


1.     Two   Special   Leave   Petitions,   being   SLP   (C)
Nos.9541 of 2007 and 10945 of 2007, arising out of
the   judgment   and   final   order   dated   29th  December,
2006,  passed  by  the  Andhra  Pradesh  High  Court
been   taken   up   for   consideration   together,   along
with   SLP(C)No.469   of   2011,   which   is   directed
against the judgment and order dated 9th July, 2009,
passed  by  the  said  High  Court  in  W.A.M.P.No.661  of
2008   in   W.A.No.954   of   2009   and   SLP(C)Nos.15231-32
of   2011,   which   are   directed   against   the   judgment
and order 17th August, 2010, passed by the said High
Court   in   W.A.No.1868   of   2003   and   W.P.No.24066   of
2004.        Inasmuch   as,   SLP(C)Nos.469   of   2011   and
15231-32   of   2011   arise   out   of   different   orders   of
the   Andhra   Pradesh   High   Court,   the   same   will   be
dealt   with   separately,   although,   they   have   been
taken   up   for   hearing   along   with   the   other   Special
Leave Petitions.
2.    For the sake of convenience, we shall refer to
the   facts   in   SLP(C)No.9541   of   2007   (Government   of
Andhra   Pradesh   &   Ors.   Vs.   Sri   Sevadas   Vidyamandi
High School & Ors.) in deciding the matters.
                              3
3.    The   subject   matter   of   the   various   writ
petitions,   which   were   disposed   of   by   the   learned
Single   Judge   of   the   Andhra   Pradesh   High   Court,
culminating   in   the   various   appeals,   which   were
disposed   of   by   the   common   judgment   dated   29th
December,   2006,   is   the   effect   of   the   ban   order
imposed   by   the   State   Government   vide   Memo
No.1280/COSE/A2/2004-4   dated   20th  October,   2004,   on
the   filling   up   of   existing   vacancies   in   the   aided
posts   of   teachers   where   the   recruitment   process
had already been initiated by the management of the
private schools.  The learned Single Judge, who had
heard   the   writ   petitions,   had   declared   that   the
said ban would not be applicable to the recruitment
process   already   initiated   by   the   management   of   the
private   schools   for   filling   up   the   vacant   aided
posts   of   teachers   prior   to   the   coming   into   effect
of  the  aforesaid  memo.  The  learned  Judge  had  give
a   further   direction   to   the   said   authorities   to
allow   the   writ   petitioners   to   complete   the   process
                                4
of selection.   In some cases, a further prayer was
made   that   the   concerned   authorities   be   also
restrained   from   transferring   teachers   from   on
school  to  another  by  declaring  them  surplus  and  to
release   the   amount   of   salaries   payable   to   the
teachers appointed against the aided posts.
4.    For the sake of convenience, the Division Bench
of   the   Andhra   Pradesh   noted   the   facts   from   the
paper book of W.A.(S.R.)No.121938 of 2005, filed by
the Government of Andhra Pradesh and Others against
an   order   dated   9th     March,   2005,   passed   by   the
learned   Single   Judge   in   Writ   petition   No.22804   of
2004,   i.e.,   C.A.M.   High   School,   Nellore   Vs.
Government   of   Andhra   Pradesh   and   others,   wherein,
pursuant   to   leave   granted,   a   prayer   had   been   made
for   quashing   the   impugned   Memo   dated   20th  October,
2004,   along   with   Rc.No.140/B2-1/2005   dated   3rd
November,   2005,   issued   by   the   Director   of   School
Education, Andhra Pradesh, Hyderabad.
                          5
5.    C.A.M. High School, Nellore, is a private aided
school   established   by   Samavesam   of   Telugu   Baptist
Churches,   wherein   all   the   posts   of   teachers
sanctioned   for   the   school   are   aided   posts.     In
2004,   the   management   of   the   school   approached   the
District   Education   Officer,   Nellore,   for   grant   of
permission   to   fill   up   the   existing   vacant   posts.
The   said   officer,   by   his   letter   dated   17th
September,   2004,   to   the   Regional   Joint   Director,
School   Education,   Guntur,   recommended   grant   of
sanction to the management of the school to fill up
the   vacant   aided   posts.   Such   permission   was   duly
granted  by  letter  dated  22nd  September,  2004,  which
has been reproduced in full in the judgment of the
Division   Bench   of   the   Andhra   Pradesh   High   Court.
Pursuant   to   such   permission   being   granted   by   the
Regional   Director   of   School   Education,   Guntur,   the
management   of   the   school   initiated   the   recruitment
process   by   requesting   the   District  
Officer,   Nellore,   to   forward   the   names   of   eligible
candidates and also by publishing advertisements in
two   daily   newspapers   inviting   applications   for
filling up the vacant posts.
6.  While the recruitment process was underway, the
school   was   informed   that   the   Government   had   issued
the   above-mentioned   Memo   dated   20th  October,   2004,
imposing   a   ban   on   the   filling   up   of   the   vacant
posts   and,   therefore,   the   selection   process   could
not   be   completed.     The   management   thereupon   filed
Writ   Petition   No.22804   of   2004   for   a   declaration
that  the  decision  contained  in  the  said  Memo  dated
20th  October,   2004,   was   not   retrospective   and   the
same   could   not,   therefore,   be   applied   to   the
ongoing   process   of   recruitment   initiated   for   the
purpose   of   filling   up   the   vacant   aided   posts   for
which   permission   had   already   been   granted   by   the
competent  authority.    As  was  noted  by  the  Division
Bench,   in   the   counter   filed   by   the 
Education   Officer,   Nellore,   it   was   not   disputed
that  in  furtherance  of  the  sanction  granted  by  the
Regional   Joint   Director,   Guntur,   the   process   of
recruitment of 8 teachers had been initiated by the
management   of   the   school   and   that   Shri   M.
Ramalingam,   Deputy   Educational   Officer,   had   been
nominated as the departmental representative on the
Staff   Selection   Committee.     In   fact,   the   date   of
interview   had   been   fixed   in   consultation   with   Shri
Ramalingam,  but  the  same  could  not  be  completed  on
account  of  the  promotion  of  Shri  Ramalingam  as  the
District Education Officer.
7.     Thereafter,   the   management   of   the   school  suo
motu  fixed   14th  December,   2004,   as   the   date   of   the
interview, but, although, the interviews were held,
no   further   steps   could   be   taken   up   on   account   of
the  ban  order  imposed  by  the  State  Government  vide
Memo   dated   20th  October,   2004.     The   Division   Bench
observed   that   the   learned   Single   Judge   had   taken
note   of   the   fact   that   while   permission   had   been
given to fill up the vacant posts on 22nd September,
2004,   the   Memo   in   question   was   issued   subsequently
on 20th October, 2004.
8.    Various appeals had been filed by the State of
Andhra   Pradesh   against   the   said   decision   of   the
learned   Single   Judge   before   the   Division   Bench.
While   the   appeals   were   pending,   the   Government
began   a   process   of   rationalization   for   filling   up
all the vacant posts.  Taking note of the same, the
Division Bench adjourned the hearing of the appeals
with   liberty   to   the   counsel   for   the   writ
petitioners   in   one   of   the   cases   to   comprehensively
amend   the   pleadings   and   also   to   challenge   the
legality of the Memo dated 20th October, 2004, if so
advised.     In   furtherance   of   such   leave,   the   writ
petition   filed   by   the   C.A.M.   High   School,   Nellore,
was   amended   to   challenge   the   legality   of   the   said
Memo   dated   20th  October,   2004.  
Division   Bench   dismissed   the   appeals   filed   by   the
Government   of   Andhra   Pradesh   and   allowed   the   writ
petitions   filed   by   the   management   of   the   private
schools   and   directed   that   they   would   be   free   to
appoint   selected   candidates   and   seek   approval   of
such   appointments   from   the   Competent   Authority.
The   Division   Bench   also   quashed   the   exercise   of
rationalization   undertaken   in   furtherance   of   the
interim   order   dated   31st  October,   2005,   together
with   the   directions   contained   in   the   letter   dated
3rd November, 2005, issued by the Director of School
Education,         with         liberty         to         the         Competent
Authorities   to   undertake   a   fresh   exercise   of
rationalization,   which   might   lead   to   certain
teachers   being   declared   surplus   and   for   their
absorption.
9.    Appearing for the Government of Andhra Pradesh,
Mr. P. Vishwanatha Shetty, learned Senior Advocate,
submitted   that   the   ban   order   imposed   by   the   State
Government, vide Memo dated 20th October, 2004, came
into   operation   in   respect   of   appointments   of
teachers   in   private   aided   institutions   in   the
State.  Mr. Shetty submitted that the Government of
Andhra   Pradesh,   which   had   the   full   authority   to
extend   grant-in-aid   to   educational   institutions,
also   possessed   the   consequential   and   incidental
power  to  adjust  the  posts  covered  under  the  grant-
in-aid   scheme   and   to   transfer   personnel   from   one
institution  to  another.    Since  a  decision  had  been
taken up by a High Power Committee presided over by
the   Chief   Minister,   its   decision   was   final   and
conclusive and it was not open to the High Court to
scrutinize   the   same.     It   was   submitted   that   in
certain   eventualities   it   could   become   necessary   to
declare   staff   of   a   school   to   be   surplus   and   to
transfer them to other schools and the power of the
Government   in   such   cases   could   not   be   curtailed.
Mr.   Shetty   submitted   that   it   is   to   meet   such
eventualities that a decision had been taken by the                   
State   Government   to   rationalize   the   staff   pattern
of   the   different   institutions   on   a   need-based
basis.
10.    On   the   other   hand,   it   was   emphatically   argued
on   behalf   of   the   respondent   School   that   the   Memo
dated 20th October, 2004, did not have retrospective
effect   and   could   not,   therefore,   stultify   the
recruitment   process   initiated   by   the   management   of
private   aided   schools   where   permission   of   the
Competent   Authority   had   been   given   prior   to   20th
October,   2004.     Accordingly,   it   was   incumbent   on
the   part   of   the   Competent   Authority   to   grant
approval   for   the   appointments   made   pursuant   to   the
permission   granted   prior   to   20th  October,   2004,   to
the private aided schools for filling up the vacant
posts in the school.
11.    Holding the brief on behalf of Ms. Sunita Rao,
learned   Advocate,   appearing   for   the   respondent
schools,   Ms.   Mahalakshmi   Pavani,   learned   Advocate,                     
submitted   that   as   had   been   held   by   the   Division
Bench   of   the   Andhra   Pradesh   High   Court,   the
rationalization   process   was   violative   of   Rule
10(17)   of   the   A.P.   Educational   Institutions
(Establishment,   Recognition,   Administration   and
Control of Schools Under Private Management) Rules,
1993,   inasmuch   as,   although,   the   said   statutory
Rules   stipulated   that   the   strength   of   students   in
private   aided   schools   for   two   consecutive   years
would   be   the   determining   factor   for   transfer   of
surplus   staff,   the   State   had   resorted   to   a   wholly
whimsical   and   arbitrary   method   to   determine   such
surplus   staff.     Ms.   Pavani   submitted   that   in   any
event,   having   permitted   the   schools   in   question   to
fill   up   the   vacant   grant-in-aid   posts   after   taking
into   account   the   need   and   the   roll   and   attendance
of   students,   it   was   no   longer   open   to   the   State
Government   to   adopt   a   different   posture   on   account
of the Memo dated 20th  October, 2004, which was, in
any   event,   prospective   and   not   retrospective.     Ms.
Pavani   submitted   that   interviews   had   been   duly
conducted on 14th December, 2004, for filling up the
vacant   posts   in   question,   but   the   State   Government
had   quite   unreasonably   refused   to   allow   the
recruitment   process   to   be   completed   and   to   grant
approval   to   candidates   who   had   already   been
interviewed and had been selected for appointment
12.     Having   considered   the   submissions   made   on
behalf   of   the   respective   parties,   we   are   of   the
view   that   no   interference   is   called   for   with   the
judgment   and   order   of   the   Division   Bench   of   the
High   Court.     There   is   no   dispute   that   the   Memo
dated   20th     October,   2004,   imposing   a   ban   on
recruitment   to   grant-in-aid   posts   was   issued   after
the   schools   in   question   had   been   given   permission
by   the   State   authorities   to   fill   up   the   vacant
posts   in   the   schools   being   managed   and   run   by   the
writ   petitioners,   who   are   the   respondents   in   these
Special  Leave  Petitions.    There  is  also  no  dispute
that   the   said   Memo   was   not   given   retrospective
effect   so   as   to   negate   the   approval   already   given
for   filling   up   the   grant-in-aid   posts.     The   State
Government and  its authorities could not
therefore, contend that the rationalization process
which   had   been   introduced,   would   also   apply   in
respect   of   the   private   aided   schools,   where   the
process   of   recruitment   had   already   been   commenced
pursuant  to the approval  granted  earlier.
Furthermore,   as   was   submitted   by   Ms.   Pavani,   even
the   approval   which   was   granted   for   filling   up   the
vacant   aided   posts,   had   been   granted   after   due
scrutiny   as   to   the   requirements   of   the   schools   in
question. Since it   is  well-settled that
administrative   orders   are   prospective   in   nature,
unless   they   are   expressly   or   by   necessary
implication   made   to   have   retrospective   effect,
there is no need to refer to the decisions cited by
Ms.   Pavani,   appearing   on   behalf   of   the   respondent
schools.
13.    As   indicated   hereinbefore,   we,   therefore,   see
no  reason  to  interfere  with  the  judgment  and  order
of   the   Division   Bench   of   the   Andhra   Pradesh   High
Court impugned in these Special Leave Petitions and
the same are accordingly dismissed.
14.    As   far   as   SLP(C)Nos.15231-32   of   2011   are
concerned,   the   same   have   been   filed   by   the
Government   of   Andhra   Pradesh,   represented   by   its
Principal          Secretary,            Education              Department,
Hyderabad,   against   Shaik   Lal   Mohammed   and   others.
These   Special   Leave   Petition   are   directed   against
the   orders   in   the   Writ   Appeals   filed   by   the
Correspondent,           Asafia         High         School,         Malakpet,
Hyderabad,   against   Shaik   Lal   Mohammed   and   others.
The   school   was   aggrieved   by   the   order   of   the
learned   Single   Judge   in   a   writ   petition   filed   by
two   employees   of   the   school   for   a   direction   upon
the   State   authorities   to   convert   their   posts   into
Class   IV   posts   with   effect   from   9th  June,   1980   and
16th  March,   1981,   respectively,   and   to   pay   them
their   arrears   of   salaries,   which,   according   to
them, were due.   The two respondents had worked as
sweeper   and   gardener-cum-watchman   from   9th  June,
1980   and   16th  March,   1983,   respectively.     It   was
their   claim   that   since   their   posts   had   been
admitted   into   the   grant-in-aid   scheme   and   they   had
been   appointed   as   full-time   contingent   employees,
they  were  entitled  to  claim  the  benefit  of  certain
Government Orders under which they were entitled to
be converted as employees on the last grade service
and the salary attached to such grade.
15.     Claims   of   the   said   respondents   were   rejected
by   the   State   authorities   on   the   ground   that   the
posts had not been created under the orders of the
Competent   Authority   and   they   had   not   been   in
service   for   a   period   of   10   years   as   on   1st  April,
1985.        Furthermore,   they   had   not   acquired   the
minimum   educational   qualification   of   Class   VII   as
on the day G.O.Ms.No.259 dated 18th  June, 1993, had
been published.  The learned Single Judge held that
the   said   G.O.Ms.   dated   18th        June,   1993,   was
applicable   to   the   said   two   respondents,   who   were
the   writ   petitioners,   and   since   the   said   findings
had not been challenged by the Government, they had
become final and, accordingly, the said respondents
were   entitled   to   have   their   posts   converted   into
Class   IV   posts.         Consequently,   the   order   of
rejection   passed   by   the   Regional   Joint   Director,
Hyderabad, dated 6th  April, 2004, was set aside and
the writ appeal filed by the State against the said
decision   of   the   learned   Single   Judge   was   dismissed
and the writ petitions filed by the said respondent
Nos.1 and 2 were allowed.
16.    It   is   in   the   light   of   the   finding   of   the
Division   Bench   of   the   High   Court   that   findings   of
the   learned   Single   Judge,   had   not   been   challenged,
that   G.O.Ms.No.259   dated   18th  June,   1993,   was   made
applicable   to   the   petitioners.     As   the   same   had
become   final   as   between   the   writ   petitioners   and
the State and it was no longer open to the State to
come to a different conclusion, we see no reason to
interfere   with   the   impugned   decision   of   the   High
Court   and   the   said   Special   Leave   Petitions   are,
accordingly, dismissed also.
17.    As   far   as   SLP(C)No.469   of   2011   is   concerned,
the   same   has   been   filed   against   the   judgment   and
order   dated   9th  July,   2007,   passed   by   the   Division
Bench   of   the   Andhra   Pradesh   High   Court,   rejecting
the   prayer   made   on   behalf   of   the   State   and   the
State  authorities  to  condone  the  delay  of  366  days
in   filing   the   writ   appeal.   Even   the   filing   of   the
Special   Leave   Petition   was   delayed   by   107   days.
Since   the   subject   matter   of   the   writ   petition   was
also   with   regard   to   the   application   of   the   ban
order imposed by the Memo dated 20th  October, 2004,
which we have already considered in SLP(C) Nos.9541
and   10945   of   2007   decided   in   the   earlier   part   of
the judgment, we are not inclined to interfere with
the order of the Division Bench dismissing the writ
appeal  on  the  ground  of  delay.  The  SLP(C)No.469  of
2011   is,   therefore,   dismissed   in   the   light   of   the
decision   rendered   in   the   aforesaid   Special   Leave
Petitions and also on the ground of delay.
18.    Having regard to the different circumstances in
which   the   Special   Leave   Petitions   have   been   filed,
the parties will bear their own costs therein
                                      ............................................................J.


                                      (ALTAMAS KABIR)
                                      ............................................................J.


                               (CYRIAC JOSEPH
                                      ............................................................J.


                                     (SURINDER SINGH NIJJAR)


New Delhi,


Dated: 06.09.2011    



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