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The Management Of Sri Raghavendra Aided ... vs The State Of Andhra Pradesh
2024 Latest Caselaw 9494 AP

Citation : 2024 Latest Caselaw 9494 AP
Judgement Date : 21 October, 2024

Andhra Pradesh High Court - Amravati

The Management Of Sri Raghavendra Aided ... vs The State Of Andhra Pradesh on 21 October, 2024

APHC010575952023

                   IN THE HIGH COURT OF ANDHRA PRADESH
                                 AT AMARAVATI             [3330]
                          (Special Original Jurisdiction)

          MONDAY, THE TWENTY FIRST DAY OF OCTOBER
              TWO THOUSAND AND TWENTY FOUR

                      PRESENT
 THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO

                     WRIT PETITION No: 30150/2023
Between:
The Management of St.mary Fathima,                  ...PETITIONER
                              AND
The State of A.P. and Others                   ...RESPONDENT(S)

Counsel for the Petitioner:
  1. K N VIJAYA LAXMI

Counsel for the Respondent(S):
  1. GP FOR EDUCATION
  2. GP FOR FINANCE PLANNING

                     WRIT PETITION No: 34371/2013
Between:
Sri Sangameswara High School,                       ...PETITIONER
                             AND
The Government Of Andhra Pradesh and Others    ...RESPONDENT(S)

Counsel for the Petitioner:
  1. K N VIJAYA LAXMI
Counsel for the Respondent(S):
  1. GP FOR EDUCATION

                      WRIT PETITION No: 319/2024
Between:
Nava Bharat Aided Em High School                    ...PETITIONER
                               AND
The State Of Andhra Pradesh and Others         ...RESPONDENT(S)
                                 2




Counsel for the Petitioner:
  1. SRI VIJAY MATHUKUMILLI
Counsel for the Respondent(S):
  1. GP FOR FINANCE PLANNING
  2. GP FOR SCHOOL EDUCATION (AP)

                  WRIT PETITION No: 16549/2024
Between:
The Management Of Sri Raghavendra Aided Primary    ...PETITIONER
School
                               AND
The State Of Andhra Pradesh and Others        ...RESPONDENT(S)

Counsel for the Petitioner:
  1. K N VIJAYA LAXMI

Counsel for the Respondent(S):
  1. GP FOR SCHOOL EDUCATION
  2. GP FOR FINANCE PLANNING


The Court made the following:
                                      3




COMMON ORDER:

The issue in all the Writ Petitions is for payment of maintenance

grant @ 6% to the petitioners-institutions. As such, all the Writ Petitions

are being disposed of by this common order.

2. Averments made in the writ affidavits filed in support of the Writ

Petitions:

The case of the petitioners-institutions is that their institutions are

aided by the Government and they are entitled for the maintenance

grant to meet the expenditure, like electricity charges, telephone

charges, water supply, stationery, salaries of the contingent staff, etc.

The Government initially paying maintenance grant @ 10%, however,

presently releasing maintenance grant @ 2% and the petitioners-

institutions are doing yeomen service to society by catering to the

educational needs to the majority of school going children. The

releasing of maintenance grant by the Government is not doing any

favour to the private management but helping for serving the cause of

education which duty is cast upon the Government through directive

principles enshrined in the Constitution. Releasing the maintenance

grant @ 2% will discourage the management and would not be

conducive for the proper administration of the institution and the

Government has promulgated Act reducing the maintenance grant to

2% in contravention of the orders of the composite High Court in

W.P.No.1159 of 1991 and the High Court has directed the Government

to release 6% of the maintenance grant and showing utter disrespect to

the orders of the High Court, the Government continued in releasing

maintenance grant of 2% and the same was questioned by Sarada

Committee Aided Elementary Schools in W.P.No.3449 of 2003 and the

common High Court decided the matter on 30.09.2016 and the

operative portion of the said order reads as follows:

"Hence, the Respondents are directed to work out maintenance grant @ 6% and arrange to pay the same within a period of three months from the date of receipt of copy of this order to the petitioner's educational institution, on par with other schools."

3. The said order in W.P.No.3449 of 2003 dated 30.09.2016 was

carried by the Government by way of Writ Appeal, vide W.A.No.1296 of

2016 and the same was dismissed on 03.08.2018, observing in the

following manner:

"At any rate, we do not see that this is an intra-court appeal which should be entertained by us at the instance of the

State Government on the scales of justice. The Writ Appeal fails and is, accordingly, dismissed."

4. Learned counsel appearing for the petitioners-institutions would

submit that the said judgment rendered by the common High Court in

W.P.No.3449 of 2003 can only be said to be the judgment in "rem" but

not as judgment in "personum" and it is equally apply to all the aided

schools and the petitioners-institutions are also entitled to maintenance

grant at 6% along with arrears and the issue was already settled by this

Court and as well as the common High Court at Hyderabad and it is no

more res-integra and even the Hon'ble Supreme Court has dismissed

the SLP filed against W.A.No.1296 of 2016 and the release of

maintenance grant is a policy decision and cannot discriminate the

institutions in the State and the Government ought not have issued any

proceedings dated 09.10.2023 raising certain hyper technical grounds,

which is extracted hereunder:

"a. Audit reports - not submitted.

b. Cadre strength particulars - not submitted

c. Roll particulars from 2003-2004 to 2022-23 - not submitted."

5. And the objections mentioned are not tenable and that could not

be a reason for not granting the maintenance grant to the petitioners-

institutions as claimed. Therefore, humbly prayed this Court to direct

the respondents to release the maintenance grant @ 6% and for other

appropriate reliefs.

6. Counter contentions filed by the learned Government Pleader:

Respondent No.5, on his behalf and on behalf of respondent

Nos.1 to 4, filed counter and denied all the contentions raised by the writ

petitioners and, inter alia, would contend that the writ petitioners have to

submit the annual audit report for each financial year and also

contended that as per Rule 28 of the Grant-in-aid Code of the Andhra

Pradesh Educational Department, the management of the school shall

submit financial statement in the prescribed formate to the competent

authority not later than 1st May of each year and as per said Rule 28,

the private managements have to submit annual administration report

by 30th September every year. And in the case on hand, the petitioners

have not submitted any annual administration reports, as contemplated

under G.O.Ms.No.1 dated 01.01.1994 or under the Grant-in-aid Code

and the petitioners have taken more than a reasonable time knocking

the doors of the Hon'ble High Court for grant of arrears.

7. And further contended that after amendment brought to the

Andhra Pradesh Private Educational Institutions Maintenance Grants

(Regulation) Act, 1995, vide Act 34 of 2007 dated 19.09.2007, regarding

the limitation to claim the arrears of maintenance grant is three years

from the date on which it has become due and all such arrear claims

shall lapse and the judgment relied on by the learned counsel for the

writ petitioners in W.P.No.3449 of 2003 is with regard to the payment of

maintenance @ 6% only and not for payment of arrears and the

judgment relied on by the petitioners is prior to the issuance of

amendment of Section 3(1) of the Andhra Pradesh Private Educational

Institutions Maintenance Grants (Regulation) Act, 1995, and as per the

amendment, the maintenance grant cannot be allowed beyond the

period of three years from the date on which it has become due and all

such arrear claims shall be lapsed automatically and they agreed that

the Government is bound to pay maintenance @ 6% and relied on the

judgments of the Hon'ble Supreme Court in Ayaaubkhan Noorkhan

Pathan v. State of Maharashtra1, for the proposition that a person

aggrieved must show how he suffered legal injury, and also relied on

another judgment of the Hon'ble Supreme Court in Rajasthan State

(2013) 4 SCC 465

Industrial Development & Investment Corpn. v. Subhash Sindhi Coop.

Housing Society2, for the proposition that the statutory authority cannot

be asked to act in contravention of law, and also relied on in another

judgment of the Hon'ble Supreme Court in Bihar Public Service

Commission v. Kamini3, for the proposition that even some ineligible

candidates for wrongly treated as eligible, it could not give raise doctrine

of equality and the equality doctrine cannot be invoked to perform an

illegality and unless and until, the petitioners submit the audit reports on

or before 30th September on every financial year and unless and until

the said reports were submitted, maintenance grant cannot be released

and Rule 28 of the Grant-in-aid Code of the Andhra Pradesh

Educational Department.

8. Hence, learned Government Pleader would contend that the writ

petitioners herein have not submitted their audit reports, as

contemplated under Rule 20 of G.O.Ms.No.1 dated 01.01.1994 and

Rule 28 of Grant-in-aid Code and as such, the petitioners are not

entitled to any relief, as the claim is barred by limitation in view of the

amendment to Section 3 of the Andhra Pradesh Private Eduicational

(2013) 5 SCC 427

(2007) 5 SCC 519

Institutions Maintenance Grant (Regulation) Act, 1995. Hence, prayed

to dismiss the Writ Petitions.

9. After considering the arguments of learned counsel for both sides,

it is necessary to extract the aforesaid Rule 20 of G.O.Ms.No.1 dated

01.01.1994 and Rule 28 of the Grant-in-aid Code of the Andhra Pradesh

Educational Department, which read thus:

10. Rule 28 of the Grant-in-aid Code of the Andhra Pradesh

Educational Department reads thus:

"28. Financial statement.-- The management of every aided Secondary School shall submit to the Regional Deputy Director through the District Educational Officer not later than 1st May of each year a Financial Statement in the form prescribed in Appendix-(E)."

11. Rule 20 of the G.O.Ms.No.1 dated 01.01.1994: Submission of

Annual Administration Report by the Educational Agency:

"The Educational agency shall submit the annual administration report in the prescribed proforma to the competent authority for very financial year by the 30th September at the latest. Such report shall be supported by the audited statement of accounts of the school duly audited

by Chartered Accountant. Separate accounts shall be maintained for each school. Similarly the educational agency, which is running more than one school, shall also submit such returns within the stipulated time to the competent authority."

12. Section 3 of the Andhra Pradesh Private Educational Institutions

Maintenance Grant (Regulation) Act, 1995, reads thus:

"3. Powers to fix quantum of Maintenance Grant:- (1) Notwithstanding anything contained in any judgment, decree or order of any Court, Tribunal or other authority or the grants-in-aid Code or any rules or instructions issued by the Government from time to time, it shall be competent for the Government to specify by order such percentage of the teaching grant as maintenance grant payable to private educational institutions receiving grant-in-aid from the Government.

[Provided that no arrear claim for Maintenance Grant shall be allowed beyond a period of three years from the date on which it has become due and all such arrear claims shall lapse.]"

13. The contention raised by the learned counsel for the petitioners,

Sri Vijay Mathukumilli, that the audit must be conducted by the state

government is fundamentally flawed in light of Rule 20 of G.O.Ms.No.1

Education (P.S.2) dated 01.01.1994. The learned counsel has

attempted to mislead the court. In contrast, the learned designated

Senior Counsel, Sri N. Subba Rao, has aptly clarified Rule 20

G.O.Ms.No.1, which states that institutions are required to submit their

annual administration report to the competent authority, supported by an

audit statement. If the authority disagrees with the audit report

submitted by the institution, it retains the right to conduct a separate

audit.

14. Even Rule 28 of the Grant-in-Aid Code of the Andhra Pradesh

Educational Department which reads as follows: The management of

every aided Secondary School shall submit to the Regional Deputy

Director through the District Educational Officer not later than 1st May of

each year a Financial Statement in the Form prescribed.

15. Upon reviewing Rule 20 of G.O.Ms.No.1 in conjunction with Rule

28 of the Grant-In-Aid Code, it is imperative that institutions submit a

financial statement accompanied by an audit report. If the authority or

government disagrees with the submitted audit report, it reserves the

right to conduct an independent audit through its designated agency.

16. Therefore, the argument presented by the counsel for the

institutions is not valid, as Rule 20 of G.O.Ms.No.1 and Rule 28 of the

Grant-In-Aid Code clearly permit the government to conduct an audit if it

disagrees with the audit conducted by the institutions.

17. Upon reviewing the contentions raised by the respondents and

considering Rule 20 of G.O.Ms.No.1, Rule 28 of the Grant-in-Aid Code,

and the limitation prescribed under Section 49 of the (Education Act,

1987), it is clear that the petitioners' institutions may claim the

maintenance grant only upon fulfilling the specified requirements.

18. Learned counsel Smt. K.N.Vijayalakshmi submits that the

limitation prescribed under Proviso to Section 3 of the Andhra Pradesh

Private Educational Institutions Maintenance Grant (Regulation) Act,

1995, is not applicable, as it was incorporated by way of amendment

and is only prospective in nature, given that the section does not

explicitly state it applies retrospective. She contends that the

respondents have paid the maintenance grant at a rate of 2% instead of

the stipulated 6%. Therefore, she argues that the limitation under

Proviso to Section 49 of the (Education Act) has no application in this

case and prays for the writ petition to be allowed.

19. The learned counsels have not provided any evidence to support

their contention that the authorities paid the maintenance grant at the

rate of 2% instead of the stipulated 6%. In the absence of relevant

material, this court cannot presume the veracity of this claim. Moreover,

the issue of limitation is a disputed question of fact that necessitates

evidentiary support; therefore, this Court cannot adjudicate on the

matter by collecting evidence. Such facts must be determined by the

appropriate authorities.

20. After considering the arguments presented by both the

petitioners' counsel and the Government pleader, it is clear from Rule

20 of G.O.Ms.No.1 and Section 28 of the Grant-In-Aid Code that the

petitioners' institutions must submit their statements along with the audit

report to the authorities annually. Furthermore, according to the proviso

appended to Section 3 of Andhra Pradesh Private Educational

Institutions Maintenance Grant (Regulation) Act 1995, petitioners'

institutions are required to claim their maintenance grant within three

years from the date it became due, with this limitation having been in

effect since 2007. The judgment cited by the petitioners state that the

institutions are entitled to a 6% grant, a point not disputed by the

respondents. However, the respondents contend that the petitioners

must submit their statements and reports annually, and that claims for

maintenance grants cannot be accepted beyond the three year period

from when they became due; any arrears beyond this timeframe shall

lapse. Since the law explicitly states that claims lapse after three years,

the petitioners cannot seek to compel the respondents to pay

maintenance grants that are contrary to the provisions and regulations

of the respective acts and rules.

21. In the case on hand, the proviso is clear and unambiguous, it

should be applied according to its plain meaning. The amendment

made to Proviso to Section 3 of Andhra Pradesh Private Educational

Institutions Maintenance Grant (Regulation) Act 1995 in 2007, is

prospective, as it does not specify any retrospective effect. Therefore,

the limitation prescribed applies only for claiming the maintenance grant

after 2007. Institutions are entitled to the maintenance grant upto 2007,

even though the amendment is now in force.

22. In relation to maintenance grant claims beyond the year 2007,

following the amendment, it is for the respondents to determine whether

the petitioning institutions have submitted their statements and audit

reports as required under the relevant rules and sections. The

amendment to Proviso to Section 3 of the Andhra Pradesh Private

Educational Institutions Maintenance Grant (Regulation) Act, 1995,

applies to the petitioning institutions; therefore, the petitioners are

referred to the respondents' authorities to pursue their claims for the

maintenance grant. The respondents are hereby directed to adjudicate

the claims for the maintenance grant in accordance with the applicable

provisions and rules. It is understood that the concerned authority shall

make a decision within three months from the date of application for the

maintenance grant filed by the petitioners' institutions. If they meet the

legal requirements and the grant was denied, they might have grounds

to appeal the decision or seek a remedy.

23. As seen from the prayer in W.P.No.34371 of 2013, the petitioner

is claiming maintenance grant for the period 2010-2011 and 2011-2012

and the said Writ Petition was filed in the year 2013. Claim of the

petitioners is within the limitation, as prescribed under the Andhra

Pradesh Private Educational Institutions Maintenance Grant

(Regulation) Act, 1995, hence the petitioners are entitled for such relief

not beyond the said relief.

24. Accordingly, all the Writ Petitions are disposed of, however no

costs.

As a sequel thereto, Miscellaneous Petitions pending, if any, shall

stand closed.

__________________________________ JUSTICE TARLADA RAJASEKHAR RAO Date: 21.10.2024 siva

THE HON'BLE SRI JUSTICE TARLADA RAJASEKHAR RAO

WRIT PETITION Nos.30150 of 2023, 34371 of 2013, 319 of 2024 and 16549 of 2024

Date: 21.10.2024

siva

 
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