Introduction

The case of Keraleeya Samajam And Others v. State Of Maharashtra And Others, adjudicated by the Bombay High Court on December 11, 2003, examines whether an educational institution permitted to operate a secondary school on a permanent no grant basis can later claim grant-in-aid from the Government of Maharashtra. The petitioner, a society registered under the Societies Registration Act and Bombay Public Trust Act, manages a secondary school that was granted permission to operate without government financial assistance. The central issue revolves around the interpretation of grant-in-aid eligibility under the Secondary School Code and the implications of prior undertakings made by the petitioner.

Summary of the Judgment

The Bombay High Court dismissed the petition filed by Keraleeya Samajam, holding that the institution, having been granted permission to operate on a permanent no grant basis, is not entitled to claim grant-in-aid from the government. The court emphasized adherence to the existing legal framework, particularly the Secondary School Code, which clearly stipulates eligibility criteria for receiving government grants. The petitioners failed to demonstrate any breach or prejudice resulting from the denial of aid, and the court found no basis to compel the state to alter its established policies.

Analysis

Precedents Cited

The petitioners referenced several Supreme Court judgments to support their claim:

• Unni Krishnan, J.P v. State of Andhra Pradesh (AIR 1993 SC 2178)
• Dwarkadas Marfatia and Sons v. Board of Trustees of the Port of Bombay (AIR 1989 SC 1642)
• State of Maharashtra v. Manubhai Pragaji Vashi (AIR 1996 SC 1)

These cases primarily dealt with the right to educational aid and the non-discriminatory allocation of grants. However, the Bombay High Court differentiated the present case by emphasizing the lack of a constitutional or legal entitlement to grant-in-aid, as established under the Secondary School Code.

Legal Reasoning

The court's reasoning hinged on the following key points:

• Compliance with Secondary School Code: The Code explicitly excludes schools permitted on a no grant basis from claiming any form of grant-in-aid. The petitioners had duly executed the undertaking rejecting such grants, making their claim inadmissible.
• No Constitutional Right to Aid: The court highlighted that there is no provision in the Constitution that grants an absolute right to educational aid. The policies governing grant distribution prioritize specific criteria, and deviations from these policies require robust justification, which was absent in this case.
• Discretionary Nature of Grants: Grants are dispensed at the discretion of the sanctioning authority, contingent upon factors like availability of funds and adherence to eligibility criteria. The absence of a guaranteed right further invalidates the petitioners' claims.
• Policy Adherence: The State's policy to promote education through the mother tongue and limit grants to such institutions was upheld. The petitioners' institution, operating in English medium, fell outside the purview of eligible beneficiaries.

Impact

This judgment reinforces the principle that grant-in-aid is not a fundamental right but a discretionary benefit governed by established legal frameworks. Educational institutions must adhere to eligibility criteria set forth by governing bodies. The decision discourages institutions from seeking retrospective claims for aid if they have previously accepted no grant status. Furthermore, it delineates the boundary between state policies and institutional rights, ensuring that government resources are allocated in alignment with broader educational objectives.

Complex Concepts Simplified

Grant-in-Aid

Grant-in-aid refers to financial assistance provided by the government to educational institutions to support their operations, staff salaries, infrastructure, and other educational activities.

Permanent No Grant Basis

An educational institution operating on a permanent no grant basis has agreed not to receive ongoing financial assistance from the government. This status is typically granted under specific conditions and entails certain obligations from the institution.

Secondary School Code (SS Code)

The Secondary School Code is a set of administrative rules and guidelines that govern the establishment, recognition, and funding of secondary educational institutions. It outlines eligibility criteria, grant structures, and compliance requirements.

Article 14 of the Constitution of India

Article 14 ensures equality before the law and prohibits arbitrary discrimination by the state. It mandates that the state should treat similar individuals equally and prohibits unfair or unreasonable distinctions.

Conclusion

The Bombay High Court's decision in Keraleeya Samajam And Others v. State Of Maharashtra And Others underscores the discretionary nature of government grants to educational institutions and the importance of adhering to established eligibility criteria. By reinforcing the significance of the Secondary School Code, the court clarified that acceptance of a no grant basis precludes future claims for financial aid. This judgment serves as a critical reminder to educational institutions about the binding nature of undertakings and the necessity to align with state policies to qualify for government support. It ultimately fortifies the framework within which educational funding is administered, ensuring consistency, fairness, and alignment with broader educational objectives.