A single Bench of Rajasthan High Court comprising Justice Dinesh Mehta opined that the intake capacity of private institutions cannot be limited by the decision of a committee who are entitled to increase their intake capacity.
Background
In the present case, the Petitioner-institution submitted an application for grant of NOC and also for seeking approval for increasing the capacity of students from 60 to 120 in its Agriculture college.
The State Government though granted temporary NOC for the academic session 2021- 22, however, did not grant sanction for enhancement of intake capacity of students from 60 to 120.
Submission made
Mr. B.S. Sandhu, learned counsel for the petitioner invited Court’s attention towards the recommendation given by the competent committee constituted by the State Government and highlighted that the committee had categorically pointed out that the petitioner-institution had been functioning in accordance with law/norms and hence, its NOC be extended for the academic session 2021-22 and at the same time it was also recorded that the petitioner-institution is having requisite infrastructure for enhanced intake capacity from 60 to 120 seats and, therefore, seat allocation of petitioner-institution be enhanced to 120 seats.
Challenging the order, Mr. Sandhu submitted that in furtherance of the recommendation dated 30.06.2021, the State Government has granted NOC for the academic session 2021-22, while completely withholding the sanction of enhancement of seats from 60 to 120, without any rhyme and reason.
Learned counsel argued that once the State Government has constituted a committee and such committee has made favourable recommendations, there was no reason for the State Government to deny or withhold grant of permission or NOC for increasing the capacity from 60 to 120.
The Additional Advocate General submitted that the recommendation made by the committee was not binding upon the State Government and the State Government has the power to refuse enhancement of seats. He argued that the State Government has constituted a five-member committee of Ministers of the State Government for regulating the establishment of private colleges and for the setting of parameters for the same and thus, the enhancement of the intake capacity was kept in abeyance.
Observation of the Court
The court after taking into consideration the rival submissions was of the view that the State’s action of not permitting the enhancement of the intake capacity of the petitioner- the institution was arbitrary and illegal. Once, the competent committee, constituted by the State Government, had conducted the inspection and given a favourable report, while categorically indicating that the petitioner-institution was having requisite infrastructure and capacity to impart education to 120 students, there was no reason for the State Government to sit over the matter and refuse to permit enhancement of the intake capacity of the petitioner-institution.
It was stated in the order that in any case, if the State Government was of the view that the petitioner-institution was not entitled to enhancement of the intake capacity, it was required to assign valid reasons for the same. Neither in the order impugned, nor in the reply, any reason worth the name had been given owing to which, the request of the petitioner-institution for enhancement of the intake capacity had been turned down.
As a matter of fact, it was taken into consideration that the order dated 04.08.2021, which was absolutely silent in relation to the petitioner’s request for enhancement of the intake capacity from 60 to 120 students amounts to a rejection of the petitioner’s request for enhancing the student capacity.
State’s relied upon the communication whereby a five-member committee of the Ministers of the State Government had been constituted, was absolutely misplaced and held,
"A perusal of the communication dated 12.07.2021 reveals that the State Government has constituted a five member committee of the Ministers of the State Government in order to take policy decisions in relation to establishment of and setting standard or parameters for private colleges. Mere formation of a committee cannot take away rights of a private college/institution, which is otherwise eligible and entitled for enhancement of the intake capacity."
Furthermore, the Court elaborated that it is Needless to observe that only a committee has been constituted and such a committee as of today has not given any recommendation or framed any policy or guidelines. That apart, if any policy is framed by the State Government, the same will apply prospectively. In absence of any guideline, rights of the petitioner-institution, which have accrued, cannot be stalled by the State Government, more particularly in the face of the recommendation dated of any committee.
At last, the State Government was directed to issue NOC to the petitioner-institution for enhancement of the intake capacity to the extent of 120 students within four weeks. Accordingly, the Petition was disposed of.
Case Details
Case Title: Shyam Seva Samiti v. State of Rajasthan and Ors.
Bench: Justice Dinesh Mehta
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