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Supreme Court of India

ALL SAINTS HIGH SCHOOL, HYDERABAD ETC. ETC.versusGOVERNMENT OF ANDHRA PRADESH & ORS. ETC.

Citation
1980 INSC 18
Decided
4 February 1980
Disposal
Remitted to Lower Court

Holding

Sections 3(1), 3(2), 4 and 5 of the Andhra Pradesh Recognised Private Educational Institutions Control Act, 1975 are unconstitutional as applied to minority institutions, while sections 3(3)(a), 3(3)(b), 6 and 7 are valid.

Summary

The Supreme Court examined whether several provisions of the Andhra Pradesh Recognised Private Educational Institutions Control Act, 1975 infringed the constitutional guarantee of minority institutions under Article 30(1). The appellants, Christian minority schools, challenged sections 3(1), 3(2), 4 and 5 as they required prior approval of an outside “competent authority” for dismissals, retrenchments and appeals, thereby interfering with the institutions’ right to manage their own affairs. The Court held that sections 3(1), 3(2), 4 and 5 were ultra‑vires as applied to minority institutions because they gave an unguided, discretionary power to an external authority and denied the management a right of appeal. By contrast, sections 3(3)(a), 3(3)(b), 6 and 7 were deemed valid regulatory measures that did not destroy administrative autonomy. The special leave appeals were allowed, the High Court judgment set aside, and the matters remitted to the Andhra Pradesh High Court for disposal on merits.

Issues considered

  • The constitutionality of sections 3(1) and 3(2) of the Andhra Pradesh Recognised Private Educational Institutions Control Act, 1975 in light of Article 30(1).
  • The validity of section 4 (right of appeal for teachers) and its impact on the management’s rights under Article 30(1).
  • The applicability of sections 5, 6 and 7 to minority educational institutions.
  • Whether regulatory measures concerning teacher service conditions can be imposed without violating the right to administer.

Legislation cited

Subjects

Article 30(1)minority educational institutionsadministrative autonomyteacher service conditionsconstitutional validityregulatory legislationappeal rightsultra vires

Judgment

         924

 A         ALL SAINTS HIGH SCHOOL, HYDERABAD ETC. ETC.
                                                v.
            GOVERNMENT OF ANDHRA PRADESH & ORS. ETC.
                              February 4, 1980
             [Y. V. CHANDRACHUD, C.J., S. MURTAZA fAZAL ALI AND
                            P. s. KAlLASAM, JJ.]
                                                                                                  •
         Andhra Pradesh Recognised Private Educational Institutions Control Act
      1975-Sections 3 to 1-Validity of-Provisions if violate constitutional
      guarantee in Art. 30(1).
          Constitution of India 1950-Article 30(1)-Andhra Pradesh Recognised
      Private Educational Institutions Control Act, 1915-lf offends against Art.
 c    30(1).
            The purported object of the Andhra Pradesh Recognised Private Educa-
       tional Institutions Control Act 1975 was to regulate the service conditions
        of teachers in private educational institutions and for ensuring the security of
        service of the teachers. Section 3 (I) of the Act provides : "Subject to any rule
        that may be made in this behalf, no teacher employed in any private educa·
        tional institution shall be dismissed, removed or reduced in rank nor shall his
 D      appointment be otherwise terminated except with the prior approval of the com-
       petent authority". The proviso to this sub-section states that if any educational      •
       management etc. contravenes the provisions of this sub-section, the teacher
       affected shall be deemed to be in service. Where a proposal to dismiss etc. any
       teacher is communicated to the competent authority, according to sub-section
        (2) of this section, that authority shall, if satisfied that there are adequate and       1
       reasonable grounds for such proposal, approve such dismissal, removal or reduc-
                                                                                              •
 E     tion in rank or termination of appointment. Clause (a) of sub-section (3) of
       this section states that no teacher employed in any private educational institu-
       tion shall be placed under suspension, except when an enquiry into the gross
     'misconduct of such teacher is conten1plated. Clause (b) provides that no such
      suspension shall remain in force for more than a period of two months from
      the date of suspension and if such inquiry is not completed within that period,
      such teacher shall, without prejudice to the inquiry, be deemed to have been
 F    restored as teacher. The proviso states that the competent authority may, for
      reasons to be recorded in writing, extend the said period of two months for a
      further period not exceeding two months, if in his opinion, the inquiry could
      not be completed within the said period of two months for reasons directly
      attnbutable to each teacher. Section 4 gives a right of appeal to teachers
      employed in private educational institutions against orders of punishment
      imposed on them.
G        Section 5 deals with special provisions regarding appeal in certain past dis·
     ciplinary cases.                                                                             f
         Section 6 which deals with retrenchment of teachers provides that where
     retrenchment of any teacher is rendered necessary consequent on any order of
     the Government relating to education or course of instructions or to any
     other matter, such retrenchment may be effeoted with the prior approval of
B    the competent authority.




¥-·-
        Section 7 · provides for payment of pay and allowances to teachers        in the
                              ALL SAINTS !IlGH SCHOOL V. GOVT. OF A.P.                   92 5

                The appellants who were minority educational institutions established       by     A
            members of the Christian commnnity filed writ petitions before the High Court
             impugning various provisions of the Act as being violative of the &'llarantee con·
            1ained in Article 30 (I) of the Constitution by permitting or compelling inter-
            ference with the internal administration of their private educational institutiions.
             In particular they challenged the provisions of sections 3 to 7 of the Act on
             the gronnd that they deprive them of their right to administer the affairs Of
•            minority institutions by vesting the ultimate administrative control in an out·       B
             side authority. The contentions having been rejected by the High Court they
             filed appeals by special leave.
                HELD s Permajorily-(Chandrachud, CJ., and Fazal Ali, J.-Kailasam, J.,
            dissenting.) :
               Sub-sections (I) and (2) of section 3 are invalid and cannot be applied to
            minority institutions.                                                                 C
                Per majorily-(Chandrachnd, C.J., and Kailasam J.-Fazal Ali, J. dissent.
             mg).
                Clauses (a) and (b) of section 3(3) do not offend against Art. 30(1) and
             are valid.
             By the Court: Sections 4 &. 5 are unconstitutional as being Yiolative of Art.
l'           SO(IJ.                                                                                D
             Per majority IChandrachnd, C.J., and Kailasam J-Fao:al Ali, J, dissenting) •
     •
                 Section 6 is valid.
             By the Court :          Section 7 is valid.
)            Per Chandrachud, C.J.
                Section 3 ( 1) and 3 (2) are unconstitutional in so far as they are made           E
             applicable to minority institutions since in practice these provisions are bound
             to interfere substantially With their right to administer institutions of their
             choice.      [937E]
                 I. (a) Section 3 (I) gives an unqualified mandate that no teache" shall be
             dismissed etc. except with the prior approval of the competent authority. Under
             the proviso, contravention of the !ection results in a total invalidation of the
             proposed action. lf the section is contravened the teacher shall be deemed to be
                                                                                                   F
             in service. Secondly, the sub-section applies not only to cases in which the
             teacher is punished by an order of dismissal etc. but to cases in which the
             appointment is otherwise terminated. An order of termination simpliciter is
     _> ,    also required to be submitted for the prior approval of the competent autbo~
              rity. All this shows that the true object of the sub-section is not that which
              one could liberally assume by reading down the section.         [935H; 936ABJ
                                                                                                   G
                    (b) In the absence of any rules furnishing guidelines on the subject, it is
              difficult to predicate that in practice the operation of the section would be
              limited to a certain class of cases only. The absence of rules on the subject
              makes the unguided discretion of the competent authority the sole arbiter of
              the question as to which cases would fall within the section and which would
              fall outside it.     [936 B-F]
                  (c) Section 3(2), nnder the guise on coaferring the power of approval,               B
               confers upon the competent authority an appellate power of great magnitude.
               That authority is made a judge both 'll facts and on law by the conferment upon
                926              SUPREME COURT REPORTS                     [1980] 2 S.C.R,

    A      it of a power to test the validity of the proposal on the vastly subjective touch-
           stone of adequacy and reasonableness. The sub-section leaves no scope for
           reeding down the provision of section 3 ( 1). The two sub-sections together con-
           fer upon the competent authority, in. the absence of proper rules, a wide and
           untrammelled discretion to interfere with the proposed orde.r whenever in its
           opinion the order is based on grounds \Vhich do not appear to it either ade-
           quate or reasonable. [936G-H; 937Al
    B          (d) Though the section provides that the competent authority "shall"                          •
           approve. the proposed order if it is satisfied th11t it is based on adequate and
          reasonable grounds, its plain and necessary implication is that it shall not ap-
          prove the proposal unless it is satisfied. The conferment of such a power on an
          outside authority, the exercise of which is ma.de to depend purely on subjective
          consideration 0rising out of twin formula of adequacy and reasonableness, can-
          not but constitute an infringement of the right guaranteed by article 30(1).
    c     [937C]
              State of Ker(lfu v. Very. Rev. Mothe1· Provincicil [197 lj 1 SCR 734,
          D.A.V. College v. State of Punjab [1971] Suppl. S.C.R. 688 and Alimedabad
          St. Xaviers College Society' v. State of Gujarat [1975] I S.C.R. 173; referred
          to.
             2. (a) Section 3(3)(a) and 3(3)(b) of the Act do not offond against the
    D     provisions of article 30(1) and are valid. [939B-Cl
          (b) Clause (a) contains but an elementary guarantee of freedom from
      arbitrariness to the teachers. The provision is regulatory in character since
                                                                                                         •
      it neither denies to the management the right to proceed against an erring
      teacher nor does it place an unreasonable restraint on its pov.'er to do so.
      It aBsumes the right of the managenient to suspend a teacher but regulates that
E right by directing that a teacher shall not be suspended unless an inquiry
      into his conduct is contemplated and unless the inquiry is in respect of a
      charge of gross misconduct. These restraints which bear a reasonable nexus
  irwith attainment of educational excellence cannot be considered to be/viola-
  } tive of the right given by article 30(1). The limitation of the period of sus-
     pension initially to two months, which can in appropriate cases be extended
      by another two months, as provided in clause (b) and its proviso, partakes of                 ..
F    the same character as the provisions contained in clause (a). A provision
     founded so patently on plain reason is difficult to construe as an invasion of
                                                                                                y
     the right to administer an institution unless that right carried with it the right
     to maladminister. [938G-H]
              3. Section 4 is unconstitutional as being violative of article 30(1)
          of the constitution. The section confers upon the government the power to
         provide by mies that an appeal might lie to such authority or officer as it desig-
G         nates, regardless of the standing or status of that authority or officer. Second-
         ly an appeal is provided for on all questions of fact and law, thereby
         throwing open the order passed by the management to the unguided
         scrutiny and unlimited review of the appellate authority, which would mean
         that, in the exercise of the appellate power, the prescribed authority or officer
         can substitute his own view for that of the management even in cases
        in which two views are reasonably possible. Lastly, while a right of appenl
        i! given to the aggrieved teacher ~ainst the order passed by the management,
R       no corresponding right is conferred on the management against the order
        passed by the competent authority under section 3(2) of the Act. In the
        absence of a provision for appeal against the order of the competent autho-
               ALL SAINTS HIGH SCHOOL V. GOVT. OF A.P.                     927

rit.f{' refusing to approve the action proposed by the management,            tbc       A-
m-.agemcnt is pleased in a gravely dis-advantageous position vis-a-vis        the
teadier who is given the right of appeal by section 4. [939D·H]
   Section 5 must fall with section 4.    [940B]
     4. Section 6 is valid. The section aims at affording a minimal guarantee
of ie.Curity of tenure to teachers by eschewing the passing of 1nala-fide orders
in the garb of retrenchment. It is implicit in the provisions of this section           B
tkat the limited jurisdiction which it confers upon the con1petent authority
is to examine whether, in cases \vhere 1he retrenchment is stated to have
become necessary by reason of an order passed by the Goven1ment, it has
in fact so hecon1e necessary. The conferment of a guided and limited pov.er
 on the competent authority for the purpose of finding out whether, in fact the
 retrenchment has bC:come necessary by reason of a Govemmentci1 order can        4




 net constitute an interference with the right of administration conferred by           c·
 article 30(1 ). [940D-F]
    Section 7 is regulatory in its character and is valid.   [940H]
 Per Fazal Ali, /.
     On an exhaustive analysis of the authorities of this Court on the various
 aspects of the fundamental right· enshrined in article 30(1) of the Constitu-
 tiOB the following propositions of law emerge : -                                       [)·
        (i) Article 30(1) enshrines th:e fundamental right of the miaority
            institutions to manage and administer their educational insti-
             tutions. [967H]
        (ii) Although, the right conferred by this article is absolute, un-
             fettered and unconditional, it does not mean that it gives a licence
             for maladministration so as to defeat the avowed object of the              E
             article, namely to advance excellence and perfection in the field.
             of education. [968B]
        (iii) \Vhile the State or any other statutory authority has no right to
              interfere with the internal administration of the 1ninority institu-
              tion, it could take regulatory measures to pron1ote the efl:iciency
              and excellence of educational standards and issue guidelines for
               ensuring the security of the services of the tt:achers and other          F
               employees of the institution. [968C]
        (iv) Under the garb of adopting regulatory measures. the State or any
             other authority cannot destroy the administrative a·ulonomy of the
             institution or interfere with the management ..._)f the institution
             so as to render the right of adn1inistration of the management
             of the institution illnsory. [968E]                                         G
         (v) By its very nature article 30 implies that where an affiliation is
              asked for, the university cannot refuse the same without sufficient
              reason or try to in1pose such conditions as \Vou!d cornplctely
              destroy the autonomott>; administration of the educational insti-
              tution. [968G]
         (vi) Induction of an outside authority in the governing body of the
              minority institution to conduct the affairs of the institution \\'ould.        Il
              be completely destructive of the fundamental right under <lrticle
               30(1), where a high authority like the Vice·Chancellor or his
   5-138SCI/80
          928                 SUPREME COURT REPORTS                           (1980] 2 S.C.R.

                    nominee   is   <1ppointed   in   the   administration,     such authorities
                    should not be thn1st so as to have          a    controlling voice    in   tbe
                    n1atter overshado\Ying the pOV.'ers    of       the   managing   commitlee.
                                                                                        [96BH]
               {vii) Jt is open to the Government or the University to fran1e rules
                   and regulations ,governing the conditions of 'iervice of teachers
                    in order to secure their tenure of service and to appoint n high
B                  authority to see that the rules are not violated or the mctnbcrs of
                   the staff are not victimised. Jn such .cases the purpose is not
                   to interfere with the autonomy of the institution but n1erc:1y to
                   improve the excellence and .efficiency of education.     Even f\O,
                   an authority should not be given a blanket uncanalised .and
                   arbitrary powers.   [969E-F)

c           (viii) \\'here a minority institution affiliated to a university is enjoUied
                   to adopt courses of study of the syllabi or the nature of books
                   prescn"bed and the ho1ding of examination to test the ability
                   of the students of the institution, it does not follow- that the free-
                   dom contained in article 30(1) of the Constitution is Yiolated.
                                                                                  [970AJ
               (ix) \Vhere a high authority is appointed to exercise vigilance on tbp
D                   work of the teachers and to ensure security of tenure for thCm
                    the authority must be given proper guidelines. Before cocting to
                    any decision which may be binding on the n1anaging committee
                    the head of the institution or the senior member. of the managing
                    conunittee must be associated and they should be allowed to have
                    a say in the matter. [970C]                  '
        Kera/a Education Bj[[, 1957, [1957] SCR 995; Sidliaibhai Sablwi and
    Ors. v. State of Bombay and Anr. [1963] 3 SCR &37; Rev. Father W. Proost
    & Ors. v. State of Bihar [1969.l 2 SCR 73; State of Kera/a etc. v. Yem
    Rev. Mother Provincial etc. [1971] 1 SCR 734; D.A.V. College etc. v. State
    of Puniab & Ors. [1971] Suppl. SCR 688 and The Al1medabad St. Xoviers
    College Society & Anr. etc. v. State of Guiarat [1975] I SCR 173; referred
    to.
F      1. (a) Section 3 in its entirety is ultra-vires as being violative of article
    30(1) and is wholly inapplicable to the appellants who are minority imti-
    tutions.     [975B]
        (b) The proviso enjoins that any contravention of the provisions would
    not affect the teachers who would be deemed to be in service. It i~ manifest
    that in the absence of any rules the proviso would have no application and
    even if it applied it would amount to a serious inroad on the fundamental
G
    right of the minority institutions to administer or manage their own affairs.
                                                                                         [971H]
        (c) Sub-section 2 of section 3 is unconstitutional as being vio1ative of article
    30(1). It suffers from the vice of excessive delegation of powers and con~
    fers undefined, absolute and arbitrary powers to grant or to refuse sanction
    to any action taken by the managing committee and almost reduces the
H   institution to a helpless position. [973B-C]
        (d) If the State wanted to regulate the conditions of service of the
    teachers, it should have taken care to make proper rules giving sufficient
                                 ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.                      929

                 wowers to the n1anagement in the manner in which it \Vas to act. fnduction              A'
                 ,of an outside authority into the institution and making bis decision final ·was
,J/i'
                 .a. blatant interference \vith the autonomy of the institution.     The words
                 ~·adequate and reasonable" are too vague and do not lay down any objective
                 "Standard to judge the discretion to be eixercised by the competent antho-
                  Tity whose order would be binding on the institution. f972F-G]
                      (e) While section 4 gives a right of appeal to the aggrieved· teacher no such
  •              right has been given to the management to/ file an appeal against the order of t)le     B
                 .competent authority if it refuses to grant sanction to the order of the ~.fana~
                 ging Committee of the institution. The competent authority is only the
 ,               District Educational Officer who is not a very high authority such lL"l
                 a Director of Public instruction or Vice-Chancellor of a University. No
                 time limit has been fixed by the statute \Vithin which the competent authority
                  is to give its approval. The cumulative effect of clause (a) and (b) of
                  section 3 (3) and the proviso is to interfere with the internal administration         c
                  of the rrtinority institutions and curb the power of suspension. It deprives
                  the institution of the right of taking any disciplinary action against a teacher.
                  The adjective "gross'' before the term "misconduct in clause (a) destroys the
                 power of suspension which the minority institution possesses. The provision
                  contained in clause (b) of section 3 (3) providing that no suspension shall
                  remain in force for a period of more than two months from the date of sus-
                  pension and if no inquiry is completed within this period the teacher \\'oulct         D
                  have to be reinstated. gives an unqualified right to a teacher in the matter of
      •           suspension which even a government servant does not enjoy. [973A, 974D-EJ
                      2. Section 4 is ultra-vires and is violative of article 30 of the Constitution.
                  It does not contain any guidelines as to the manner in which the pow·er could
                  ~e exercised, nor does it contain any provision which may entitle the minority
                  institution to be heard by the appellate authority. The conferment of an               E
                  abSOlute and unguided power on the appellate authority \VOuld amount to a
                  direct interference with the right enshrinecl in article 30(1) and makes the
                  minority institution a powerless body. [976B; 975GJ
                      3. If section 4 is inapplicable to the minority institution Section 5 also
          ~       follows the same fate. [976C]
        ;a.__•        4. Section '6 which contains an un-canalised and unguided power suffers            F
                  from the same vice as in the case of section 3. 'The words "administer edu-
                  cational institutions of their choice'' in article 30 clearly indicate that the
                  institution has an absolute right to select teachers, ret.1.in them or retrench them
                  at its sweet will according to the norms prescribed by the institution or by
                  the religious order "'·hich has founded the institution. [976HJ
                      5. Sectiori 7 is an innocuous provision and is valid.      [977C]
                                                                                                         G
                      6. Sections. 8, 9, 12 and 13 are inapplicable to the minority institutions.
                                                                                  [977D, 978B]
                        7. Section 16 suffers from a serious defect namely that the provision re-
                  garding appeal to the appellate authority v,;as valid then it completely bars
                   the right of the management to file a suit to challenge the validity of the
                  order of the appellant. To this extent the section makes serious inroad 011
                  the fundamental right of the minority institutions and is inapplicable to ti.          H
                  'illinority institutions. [978G]
                      Section 17 is inapplicable.    [978F]
           930                  SUPREME COURT REPORTS                       [1980] 2 S.C.lt. •

' A      Per Kailasam, J.
               1. A reading of the various decisions rendered by this Court on the inter-
          pretation of article 30(1) of the Constitution makes it clear that while the
          right to establish and administer a minority institutiOn cannot be interfered,
          with, restrictions by way of regulations for the purpose of maintaining the
          educational standards of the institution can be validly in1posed. For main-
    B     taining the educational standards of the institution as a whole, it is necessary                     •
          to ensure that it is properly staffed. Conditions imposing the minimum quall-
         fications of the staff, their pay and othar benefits, their service conditions, the-
          imposition of punishment will all be covered and regulations of such a nature
          are valid. In the case of institutions that receive aid it is the duty                                  '
         of the government who grants aid to see that the iunds are properly
          utilised. Regulations can be made by the government for ensuring the
          proper conditions of service of the teachers and for securing fair pro-
    c    cedure in the matter of disciplinary action against them. Prescribing uni-
         formity in the conditions of service and conduct of teachers in all non-govern-
         mental colleges would promote harmony, avoid frustration and, therefore, is
         permissible. Rules prescribed by the university or other authority may require
         that no member Of the teaching or non-teaching stafi of a recognised or ap-
         proved institution shall be dismissed etc., except after a proper cnquity. If
         the regulations require thei approval of the competent authority for safe-
    D    guarding the rights of the teachers and for securing the procedure there can
         be no objection. Such authority can also interfere with the decision of tl•ie                        •
         private institutions when ,the punishment awarded is malafide or by way of
         victimisation or for similar causes. [989B; 993D-G[

            Kera/a Education Bill [1959] SCR, 995, Rev. Sidhajbhai Sabhai & Ors,
        [1963] 3 SCR 837, Rev. Father W. Proost and Ors. v. State of Bihar & Ors.                         '
 E      [1969] 2 SCR 73, State of Kerala v. Very. Rev. Mother Provincial [19711 I
        SCR 734, D.A.V. College etc. v. State of Punjab & Ors. [1971] Suppl. &C.R.
        688 and Ahniedabad St. Xaviers College Society and A.rir. etc. v. State af
        Guiarat [1975] 1 S.C.R. 173, referred to.

             2. It is not only reasonable but proper that a restricted meaning is given
                                                                                                 •
                                                                                                      ..
                                                                                                      I
        to the power of prior approval conferred on the competent aU:thority under sec·              /"·
 F      tion 3 of the Act. It is a well established principle of interpretation that the
        statement of objects and reasons could\ be referred to for the limited purpose of
        ascertaining the conditions prevalent at the time which actuated the sponsor
        <>f the Bill to introduce the same and Iha extent of urgency and the e"11 songht
        to be remedied. Clearly the legislation was intended to regulate the service
        conditions of teachers employed in the private educational institutions and for
        the security of service of the teachers. Tile power contained in section 3(t)
G       and 3(2) is reStricted to regulating the service conditions of teachers and for                        ,,
        ensuring their security of se-rvice. [1001C; 998A-B]
                                                                                                              ,r
            3. While interpreting a provision of law the Court will presume that the
        legislation was intended to be intra vires and also reasonable. The section ought
        to be interpreted consiste-nt with the presumption which imputes to the legis-
        lature an intention of limiting the direct operation of its enactmerit to the
 H      extent that is permissible. A reading down of a provision of a statute puts into
        operation the principle that so far as it is reasonably possible to do so, the legis-
        lation should be construed as being within its power. It has the principle effect
            •                    ALL SAINTS HIGH SCHOOL V. GOVT. OF A.P .                     931

                <that where an Act is expressed in language of generality, which makes it cap-         A
                able, if read literally, of applying to matters beyond the relevant legislative
                powers, the Court will construe it in a more limited sense so as to keep it
                within power. [998E-F]

                    The State of West Bengal v. Sub/wdh Gopal Bose and Ors. (1954] SCR
                :i87, Att. Genl. v. HRH Prince Earnest Augstas of Hanover, [1957] AC. 436,
                 Keshavananda Bharti v. State of Kerala [1973] Suppl. S.C.R. 1, 101, Towns v.          B
                .Eigner 245 U.S. 413·62 Led. 372, 376 and Kedar Nath Singh v. State of Bihar
                 [1962] 2 Suppl. SCR 769; referred to.
,                   In the instant case it must be presumed that the legislature was conscious
                of the limitations of the po\ver which the competent authority can have in
                 granting or withholding apprQ!Val in the c:ase· of disciplinary proceedings con·
                -ducted by private institutions. The object of the legislation in this case was
                 very different from ether cases in which 1h~ legislation was aimed &t depriving
                                                                                                       c
                 the minority institutions' of all their powers. Its only aim is to provide security
                of service. There are sufficient guidelines ~ the objects and reasons as well
                 as in the preamble. [I 00 I B-C]

                   4. (a) The contention that section 3(1) and (2) lack guidelines
                and have conferred a blanket power cannot be accepted. Section 3(1)
                                                                                                       D
                and (2) must be read together. The wordsi "ad~quate and reasonable"
                should be given a re~tricted meaning so as to validate· the provisions of the
    •           section. The approval of an order contemplated by sub-section (2) will have
                to be read with sub·section (1). Sub-section (2) required the competent autho-
                rity to approve such a proposal if it is satisfied that there are adequate and
                J.easonable grounds for such proposal. The words "adequate and reasonable"
        )
                furnish sufficient guidelines. The competent authority can interfere if there
                                                                                                       E
                are no materials at all for sustaining the order of punishment or when on the
                materials found chc charge is completely baseless and preserve. The word "ade~
                quate" will have to bC' understood as being confined to such examination of
                the proposal. The y.;ord "reasonable·~ would indicate that the power of the
                competent authority is confined to the power of an authority to interfere
                with the enquiry and the conclusions arrived at by the domestic tribunal. It
                cannot be understood as conferring nbsolute power to interfere '\Vith the enquiry      F
                by the tribunal as a Court of appeal on merits. [1002E; 1001G-H]

                    (b) The plea that the "competent authority" may be any petty officer can-
                not be upheld because it is defined in section 2(1) to mean "any authority,
                officer or person authorised by notification perfomling the functions of com-
                petent authority". The officers of the educational dtpartment who are in-
                charge of the administration of educational institutions in the area cannot be         G
                called petly officers. [I002H]

                      (c) Clauses (a) and (b) of sub·section (3) cannot be said to interfere
                with the right of administratio;n of the, private institutions. 1b.e two clauses
                are regulatory in nature and are intended to safeguard the teachers from
                being, suspended for unduly long periods ·without there being an enquiry into
                1
                  'gross mis·conduct." [1003C]
                                                                                                       H
                     (d) Sub-section (4) of section 3 which states that every teacher pla<:ed
                ·.under suspension shall be paid subsistence allowance at such rates as may be
    •1



                                                                                            ----~~
-1.




            932                 SUPREME COURT REPORTS                     (1980] 2 S.C.R. •

      A   prescribed during the period of his suspension is purely regulatory in -n~ture­
          and. therefore, un-objectionable. [1003D]
             5. Section 4 is invalid. The vice contained in this section is that the riiht
          of appeal which is confined only to the teachers is not available to institutions.
                                                                                    1003Fl
              6. Section 5 which! confers poWer on the competent authority to hear
      B   appeals in certain, past disciplinary cases will have to fall' along with-           •
          section 4. [1003G]
              7. Section 6 is also regulatory in nature and its validity cannot be ques-
          tioned. [ 1003H]                                                                     '
             8. Section 7 is :egulatory in nature and is intended for securing regular
          payment to the teachers. [1004A]
      c
             CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 1280, 1279,
           1327-1330 of 1978 and 35 of 1979.
              Appeals by special leave from the Jndgment and Order dateci'
          2-8-1978 of the Andhra Pradesh High Court in Writ Petition Nos.
          718, 5505. 3618, 5506, 5518, of 1975 and 604/78 and 4814/1975.
      D
              L. N. Sinha, K. Srinivasa Murthy, Naunit Lal and M. Panduranga
          for the Appellants in CA Nos. 1279, 1280, 1327-1330/78.                              •
             S. N. Kackar, Sol. Genl., Venkatarao and G. N. Rao for R. 1
          in CA 1280, RR 1-3 in CAs. 1327 & 1329 and RR 1 & 2 in 1328 &
          1330.
      E
             II. S. Gururaja Rao and S. Markendaya for RR 2-3 in CA 128()
          and R. 4 in CA 1279.
              K. M. K. Nair for R. 4 in CA 1329
              S. Balakrishnan for R. 8 in CA 1329
      F      G. Narasimhulu for R. 3 in CA 1330
              B. Parthasarthi for the Appellant in CA 35/79.
              B. Kanta Rao for the RR 4-5 in CA 35/79.
                                                                                 •
              The following Judgments were delivered
      G      CHANDRACHUD, C.J.-Article 30(1) of the Constitution pro-
          vides:
               All minorities, whether based on religion or language,
               shall have the right to establish and administer educational
              institutions of their choice.
      H    The question which arises in these appeals is whether certain provi-
          sions of the Andhra Pradesh Recognised Private Educational Insti-
          tutions Control Act, 11 of 1975, offend against the fundamental right
             ~ ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Cha11draclmd, C.J.) 933


               conferred on mioorities by Art. 30 ( 1). The appellants are un-             A
,>             questiOlll!bly minority educational institutions, having been establish-
               ed by members of .the Christian community .
                    . My learned Brothers, Murtaza Fazal Ali and Kailasam, have
                examined the authorities bearing on the question before us. The
•               reilSons which impelled me to write a separa~ judgment are my in-          B
                ability to agree wholly with the various observations made by Justice
                Fazal Ali and with some of the prO]JOsitions which he has formulated
,               as etlh,"t"ging from the decisions referred to by him, as also with the
                conclusion to which Justice Kailasam has come. I do not consider
                it necessary to examine all the decisions of this Court in which Art.
               30(1) has received a full and careful consideration. These deci-            c
               sions are reported in Re Kera/a Education Bill(!) 1957,, Rev. Sidhaj-
               bhai Sabhai v. State of Bombay( 2 ) Rev. Father W. Proost v. The
               State of Bihar(') State of Kera/av. Very Rev. Mother PrGvincial( 4 )
               D. A. V. College v. State of Pu'njab(') The Ahmedabad St. Xaviers
               College Society v. State of Gujarat(") Gandhi Faizeam College Shaha-
               jalzanpur v. University of Agra(') and Lilly Kurian v. Sr. Lewina(')        u
                Almost each succeeding judgment has considered and analysed the
    •           previow judgment or judgments. I regard the matter arising before
                us as well-settled, especially after the 9-Judge Bench decision in
                Alunedabad St. Xaviers College Society (supra) and the recent judg-
               ment of the CQ!lstitution Bench in Lilly Kuria11,(') All that we have
               to do iil this case is to apply the law laid down in these decisions.       E

        0L- /      Tiie.se decisions show that while the right of the religious and
        ""     linguistic minorities to establish and administer educational institu-
               tions of their choice cannot be interfered with, restrictions by way of
               regulations for the purpose of ensuring educational standards ond
               maintaining the excellence thereof can be validly prescribed. For           F
               maintaining educational standards of an institution, it is necessary to
               ensure that it is competently staffed. Conditions of service which
               prescrif:le minimum qualifications for the staff, their pay scales. their
               entillcment to other benefits of service and the laying down of safe-
               guaids which must be observed before they are removed or dismisse([         G'
              from service or their services are terminated are all pcrmis>ib!e measures
                  ({j [1959] S.C.R. 995.
                  (2) (1963] 3 S.C.R. 837.
                  (3) [1969] 2 S.C.R. 73.
                  (4) [1971] l S.C.R. 734.
                  (SJ [1971] Supp. S.C.R. 688.
                   (lij [1975] 1 S.C.R. 173.
                  (7) [1975] 3 S.C.R. 810.
                  (8) (1979] l S.C.R. 820.
         934               SUPREME COURT REPORTS                  [1980] 2 S.C.R.     •

  A    of a regulatory character. As observed by Das C.J., in Re :
        Kera/a Education Bill, (supra) "Right to administer cannot obviously
        include the right to mal-administer", and in the words of Shah J., in
       Rev. Sidhajbhai, (supra) "The right is subject to reasonable restric-
        tions in the interest of efficiency of instruction, discipline, health,
. JI    sanitation, morality, public order and the like". Hidayatnllah C.J.               •
       said in Very Rev. Mother Provincial (supra) that "Standards of
        education are not a part of management as such", that the "minority
        institutions cannot be permitted to fall below the standard of excel-             •
       lence expected of educational institutions" and that "the right of the
       State to regulate education, educational standards and the allied
        matters cannot be denied". Justice Jaganmohan Reddy, in D. A. V.
       College (supra) reiterated while upholding clause 18 of the Guru
        Nanak University, Amritsar Act, 1961 that regulations governing
       recruitment and service conditions of teachers of minority institutions,
        which are made in order to ensure their efficiency and excellence do
       not offend ·against their right to administer educational institutions of
  fl    their choice
             In the case of institutions that receive State aid, it is the duty and       •
        obligation of the Government which grants aid to see that pablic
        funds are usefully and properly expended. If the expenditure incur-
        red for paying the emoluments of the staff is subsidised or financed
  E     from out of State funds, it becomes the duty of the State to se~ that
        no one who does not possess the minimum qualifications is zppointed
        on the staff, the pay and other emoluments of the staff are guaranteed
        and their service conditions secured. Minority institutions which
        receive State aid cannot complain of conditions subject to which the
        aid is granted, so long as such conditions do not amount to discrimi-
. F     nation against them on the ground of language or religion nnd so
        long as the aid is not made to depend upon the performance or obser-
        vance of conditions which amount to deprivation of the right guaran-
       teed by article 30( l). There is also no doubt that minority insti-
       tutions cannot be discriminated against in the matter of granting State
        aid.
             No institution, minority or majority, has a fundamental right to
        recognition by the State or affiliation to the University, but ~ince
        recognition and affiliation are indispensable for an effective and fruit-
        ful exercise Of the fundamental right of minorities to establish and
        administer educational institutions of their choic_e, they are entitled
  B    to recognition and affiliation if they agree to accept and comply with
       regulatory measures which are relevant for granting recognition and
       affiliation, which are directed to ensuring educational excellence of
    • ALL SAINTS HIGH SCHOOL I'. GOVT. OF A.P.     (Chandrachud, C.J.) 935

     the institution concerned and which, largely and substantially, leave       A
J    uJlimpaired the right of administration in regard to internal affairs of
     the institution.
          The impugned Act, by reason of section 1 (3), applies to all
      private educational institutions, whether or not they are established
     by minorities. The appellants' contention is that several provisions        B
    ·of the Act violate the guarantee contained in Art. 30(1) by permit-
      ting or compelling interference with the internal administration of
      private edncational institutions established by minorities. The
     'appellants are particularly aggrieved by the provisions of sections 3
      t() 7 of the Act, the validity whereof in challenged on the ground that
      they deprive the appellants of their right to administer the affairs of    c
      minority institutions by vesting th.e ultimate administrative control in
      an outside authority. These contentions having been rejected by the
     High Court of Andhra Pradesh, the appellants hav~ filed these appeals
      by special leave.
           Section 3 ( 1) of the Act provides that, subject to any rule that     D
       may be made in this behalf, no teacher employed in any private edu-
       cational institution shall be dismissed, removed or reduced in rank
       nor shall his appointment be otherwise terminated, except with the
       prior approval of the competent authority. The proviso to the sec-
       tion says that if any educational institution contravenes the aforesaid
      provision, the teacher affected by the contravention shall be deemed       E
      to be in service. Section 3 (2) requires that where the proposal to
      dismiss, remove or reduce in rank or otherwise terminate the appoint-
       ment of any teacher employed in any private educational institution
       is communicated to the competent authority, that authority shall
       approve the proposal, if it is satisfied that there are adequate and      F
    . reasonable grounds for the proposal.

         For appreciating their trne meaning and effect, sections 3 (1) and
    3 (2) have to be read together. The requirement of prior approval
    of the competent authority to an order of dismissal, removal, etc.
    may not by itself be violative of article 30 ( 1) because it may still
                                                                                 G
    ~e possible to say, on a reasonable construction of the provision lay-
    mg down that requirement, that its object is to ensure compliance
    with the principles of natural justice or the elimination of malll fide;j
    or victimisation of teachers. But I find it difficult to read down
    section 3 (I) so as to limit its operation tn these or similar consi-
    det'ations. In the first place, the section does not itself limit its        H
    operation in that manner; on the contrary, it gives an unqualified
    mandate that no teacher shall be dismissed, removed, etc. exc~pt with
     936                SUPREME COURT REPORTS                 (1980] 1 S.C.R •.

A   the prior approval of the competent authority. Under the proviso,.
    contravention of the section results in a total invalidation of the pro-·
    posed action. If the section is contravened the teacher shall be;
    deemed to be in service. Secondly, section 3 ( 1) not only applies.
    to cases in which a teacher is, what is generally termed as 'punished',
    by an order of dismissal, removal or reduction in rank, but it also
B   applies to cases in which an appointment is otherwise terminated. An
    order of termination simpliciter which involves no stigma or asper-
    sion and which does not result in any evil consequences is also re-
    quired to be submitted for the prior approval of the competent
    authority. The argument that the principles of natural justice have·
c   not been complied with or the argument of ma/a fide~ andi victimisa-
    tion has seldom any relevance if the services are terminated in accor-
    dance with the terms of a contract by which the tenure of the employ-
    ment is limited to a specified period. This shows that the true
    object of section 3 ( 1) is not that which one could liberally assume·
    py reading down the section.
D        Section 3 (1) is subject to any rules that may be made in behalf
    of the matter covered by it. If the State Government were to frame
     rules governing the matter, there would have been some tangible.
    circumstances or situations in relation to which the practical opeca-
    tion of section 3 (1) could have been limited. But in the abselll:e
    of any rules furnishing guidelines on the subject, it is difficult to
E
     predicate that, in practice, the operation of the section will be limited
     to a certain class of cases only. The absence of rules on the subject
     makes the unguided discretion of the competent authority the sole.
     arbiter of the question as to which cases would fall within the section·
     and which would fall outside it.
F        Any doubt as to the width of the area in which section 3(1)
     operates and is intended to operate, is removed by the provision con-
     tained in section 3 (2), by virtue of which the competent authority
     "shall" approve the proposf!), "if it is satisfied that there are adequate·
     and reasonable grounds" for the proposal. This provision, under
G    the guise of conferring the power of approval, confers upon the com-
    petent authority an appellate power of great magnitude. The com-
     petent authority is made by that provision the sole judge of the pro-
    priety of the proposed order since it is for that authority to see whether
    there are reasonable grounds for the proposal. The authority is in-
    deed made a judge both of facts and law by the conferment upon it of
    a power to test the validity of the proposal on the vastly subjective
    touch-stone of adequacy and reasonableness. Section 3 (2), in my
     opinion, leaves no scope for reading down the provisions of sectioro
                   '
            ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Chandrachud, C.J.) 937


            3 ( ! ) . The two sub-sections together confer upon the competent
            authority, in the absence of proper rules, a wide and untrammelled
             discretion to interfere with the proposed order, whenever, in its
            opinion, the order, is based on grounds which do not appear to it
             either adequate or reasonable.

                 The form in which Section 3 (2) is couched is apt to mislead by
            creating an impression that its real object is to cast an obligation on
             the competent authority to approve a proposal under certain condi-
,            tions. Though the section provides that the competent authority
            "shall" approve the proposed order if it is satisfied that it is based on
             adequate and reasonable grounds, its plain and necessary implication
        j
            is that it shall not approve the proposal unless it is so satisfied. The                                c
            confernment of such a power on 1lll outside authority, the exer-
             cise of which is made to depend on purely subjective considerations
             arising out of the twin formula of adequacy and reasonableness, can-
            not but constitute an infringement of !)le right guaranteed by Art. 30
            (1).
•                                                                                                               D
                 I find it difficult to save sections 3 ( 1) and 3 (2) by reading
    •        them down in the light of the objects and reasons of the impugned
             Act. The object of the Act and the reasons that led to its passing
             are laudable but the Act, in its application to minority institutions,
             has to take care that it does not violate the fundamental right of the
        >
            minorities under Art. 30(1). Sections 3(1) and 3(2) are in my                                           E
            opinion unconstitutional in so far as th~ made applicable to
             minority institutions since, in praetice) 1hese. provisions are bound
             to interfere substantially with their riglit to administer institutions of
            their choice. Similar provisions were held to be void in V rry l?ev.
             Mother Provincial, D. A. V. College and Lilly Kurian. (supra) There
             is no distinction in principle between those provisions and the ones                               F
             contained in sections 3 (1) and 3 (2).
                For these reasons, I am in agreement with Brother Fazal Ali that
            Sections 3 (1) and 3 (2) of the impugned Act cannot be applied
            to minority institutions, since to do so will offend against Article 30
             (1 ).

                Section 3 (3) (a) provides that no teacher employed in any pri-
            vate educational institution shall be placed under suspension except
            when an inquiry into the gross misconduct of such teaci1er is con-
            templated. Section 3 (3) (b) provides that no such suspension
            sball remain in force for more than a period of two months and if                                   H.
            the inquiry is not completed within that period the teacher shall,
            without prejudice to the inquiry, be deemed to have been restored as




                     -..---- . --   ----...-~·---=----=----=-· "111:11:"   -~·~,.........._-y._...,,....   ......       -   -~---
        938               SUPREME COURT REPORTS                [1980] 2 S.C.R.

 .A    a teacher. The proviso to the sub-section confers upon the e-0m-
       petent authority the power, for reasons to be recorded in writing, to
       extend the period of two months for a further period not exceeding
       two months if, in its opinion, the inquiry could not be completed
       within the initial period of two months for reasons directly attribut-
       able to the teacher.
  B
          With respect, I find it difficult to agree with Brother Fazal Ali       '
      that these provisions are violative of article 30 (1). The question
      which one has to ask oneself is whether in the normal course of
      affairs, these provisions are likely to interfere with the freedom of
      minorities to administer and manage educ:,itional institutions of their
 c choice. It is undoubtedly true that no educational institution can
      function efficiently and effectively unless the teachers observe at least
     the commonly accepted norms of good behaviour. Indisciplined
      teachers can hardly be expected to impress upon the students the
     value of discipline, which is a sine qua non of educational excellence.
     They can cause incalculable; harm not only to the cause of education
 D but to the society at large by generating a wrong sense of values in
     the minds of young and impressionable students. But discipline is
     not to be equated with dictatorial methods in the treatment of               •
     teachers. The institutional code of discipline must therefore con-
    form to acceptable norms of fairness and cannot be arbitrary or fanci-
     ful. I do not think that in the name of discipline and in the purport-
E    ed exercise of the fundamental right of administration and manage-
     ment, any educational institution can be given the right to 'hire and
    fire' its teachers. After all, though the management may be left free
    to evolve administrative policies of an institution, educational instruc-
   tion has to be imparted through the instrumentality of the teachers;
F and unless, they have a constant assurance of justice, security and
    fair play it will be impossible for them to give of their best which
    alone can enable the institution to attain the ideal of educational
    excellence. Section 3 (3) (a) contains but an elementary guarantee
    of freedom from arbitrariness to the teachers, The provision is
   regulatory in character since it neither denies to the management the
G  right to proceed against an erring teacher nor indeed does it place an
    unreasonable restraint on its power to do so. It assumes the right
   of the management to suspend a teacher but regulates that right by
   directing that a teacher shall not be suspended unless an inquiry into
   his conduct is contemplated and unless the inquiry is in respect of
   a charge of gross misconduct. Fortunately, suspension of teachers
H is not the order of the day, for which reason I do not think that these
   restraints which bear a reasonable nexus with the attainment of edu-
   cational excellence can be C-Onsidered to be violative of the right given
             ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Chandrachud, C.J.) 939


             by Art. 30 ( 1). The limitation of the period of suspension initially     A
              to two mo)lths, which can in appropriate cases be extended by
              another two months, partakes of the sa.!!le character as the provision
             contained in section 3 (3) (a). In the _generality of cases, a domes-
              tic inquiry against a teacher ought to be completed within a period
•             of two months or say, within another two months. A provision
                                                                                       B
              founded so patently on plain reason is difficult to construe as an
              invasion of the right to [ldminister an institution, unless that right
            . carried with it the right to maladminister. I therefore agree with
              Brother Kai!asam that sections 3 (3) (a) and 3 (3) (b) of the Act
              do not offend against the provisions of Art. 30 (1) and are valid.
                                                                                       c
                  Section 4 of the Act provides that any teacher .employed in a
            private educational institution (a) who is dismissed, removed or
            reduced in rank or whose appointment is otherwise terminated; or
             (b) whose pay or allowances or any of whose conditions of service
             are altered or interpreted to his disadvantage, may prefer an appeal
•           to such authority or officer as may be prescribed. This provision in D
             my opinion is too broadly worded to be sustained on the touchstone
    •
             of the right conferred upon the minorities by Art. 30 ( l). In the
             first place, the section confers upon the Government the power to
             provide by rules that an appeal may lie to such authority or officer
             as it designates, regardless of the standing or status of that authority
            or officer. Secondly, the appeal is evidently provided for on all E.
             questions of fact and law, thereby throwing open the order passed
             by the management to the unguided scrutiny and unlimited review
             of the appellate authority. It would be doing no violence to the
             language of the section to interpret it to mean that, in the exercise
             of the appellate power, the prescribed authority or officer can substi-
             tute his own view for that of the management, even in cases in which F
             two views are reasonably possible. Lastly, it is strange, and perhaps
             an oversight may account for the lapse, that whereas a right of
             appeal is given to the aggrieved teacher against an order passed by
             the management, no corresponding right is conferred on lhe manage-
             ment against an order passed by the competent authority under sec- G-
              tion 3 (2) of the Act. It may be recalled that by section 3 (1), no
              teacher can be dismissed, removed, etc. except with the prior appro-
              val of the competent authority. Section 3 (2) confers power on the
              competent authority to refuse to accord its approval if there are no
              adequate and reasonable ground for the proposal. In the absence of
              the µrovision for an appeal against the order of the competent autho-
              rity refusing to approve the '¥'lion proposed by the management, the

    '   .      management is placed in a gravely disadvantageou§ position vis-a-vis
      940                SP~REME    COURT REPORTS             [1980] 2 s.c.R. ·

A    the teacher who is given the right of appeal by section 4. By reason
     of these infirmities I agree with the conclusion of my learned Brothers      ~,_._
     that section 4 of the impugned Act is unconstitutionai, as being
     violative of article 30 (1).
         Section 5 is consequential upon section 4 and must fall witk it.
B         Section 6 provides that where any retrenchment of a teacher is
     rendered necessary consequent on any order of the Government relat-
      ing to education or course of instruction or to any other matter, such
     retrenchment may be effected with the prior approval of the compe-
     tent authority. With respect, I find myself unable to share the view
     of Brother Fazal Ali that retrenchment of teachers is a purely domes-
c    tic affair of minority institutions and that the decisions of the manage-
     ment in the matter of retrenchment of teachers is beyond the scope
     of statutory interference by reason of Art. 30 (1). Section 6 aims
     at affording a minimal guarantee of security of tenure to teachers by
     eschewing the passing of mnla fide orders in the garb of retrench-
     ment. As I look at the section, I consider it to be implicit in its              •
     provisions that the limited jurisdiction which it confers upon the           •
     competent authority is to examine whether, in cases where the
     retrenchment it stated to have become necessary by reason of an
    order passed by the Government, it has in fact so become necessary.
    It is a matter of common knowledge that Governmental orders
E   relating to courses of instruction are us~d as a pretence for terminat-
    ing the services of teachers. The conferment of a guided and limited
    power on the competent authority for the purpose of finding out
    whether, in fact, a retrenchment has become necessary by reason of
    a Government order, cannot constitute an interference with the right
    of administration conferred by Art. 30 (1). Section 6 is therefore
F
    valid. I would, however, like to add that in the interests of equal
    justice, the legislature ought to provide for an appeal against the
    orders passed by the competent authority under section 6. If and
    when the provision for an appeal is made, care must be taken to
    ensure that the appeal lies to an officer not below the prescribed
G   rank.
       Section 7 provides that the pay and allowances of a teacher shall
    be paid on or before such day of a month, in such manner and by
    or through such authority, officer or person, as may be prescribed.
    I agree with my learned Brothers that this provision is regulatory In
    character and is, therefore, valid.
        These are all the sections the validity of which was questioned in
    the Writ Petitions filed in the Hjgh Court. It is therefore not neces"        •
                       ALL SAINTS HIGH SCHOOL v. GOYT, OF A,P,     (Fazal Au, !,) 941

                 osary to consider whether the ot]!er provisions of the Act are valid        A
,,}<             .or not.
                      I concur in the final order proposed by Brother Kailasam that we
                 -need not go into the merits of each of the Writ Petitions filed in the
                 Righ Court, Learned counsel appearing for the schools sought the
     •            decision of the High Court on the constitutional issue only, He            B
                  specifically asked the High Court not to decide each case on its
                  merits, That may, accordingly, be left to the High Court to decide
                  in the ligh~ of the majority opinion re!Jdered by us. We have, by a
                  majority, held that sections 3 (3) (a), 3 (3) (b), 6 and 7 are valid
                  while sections 3 ( 1), 3 (2), 4 and 5 are invalid in their
                 ;application to minority education institutions. It must follow             c
                  that such institutions cannot be proceeded against for violation of
                  provisions which are not applicable to them,
                       in conclusion, all the Civil Appeals before us will go back to the
                   High Court of Andhra Pradesh for final disposal on merits in the
 (                'light of our decision, There will be no order as to costs.                D
                      FAZAL Au, J. : This batch of civil appeals by special leave is
         '       directed against the judgment of the Andhra Pradesh High Court be-
                  fore whom the appellants filed writ petitions under Article 226 of the
                  Constitution challenging the constitutional validity of several sections
             )
                 'of the Andhra Pradesh Recognised Private Educational Institutions          E
                  Control Act, 1975, hereinafter referred to as the Act which contained
                   21 sections in five Chapters and was brought into force with effect
                  from 5th October, 1974. This Act was also applicable to 19 Edn-
                  cational Institutions situated in the State of Andhra Pradesh and the
                   appellants being admittedly minority educational institutions within
                  'the meaning of Article 30 of the Constitution of India have challenged    F
                   the vires various sections of the Act which we shall indicate later.
                       Some of the 'appeals have been filed by Christian Schools estab-
                  lished by Roman Catholic Church and some by Christian Colleges
                   established by the Christian community :
                                                                                             G
     .                 The main grounds of challenge are that the provisions of the Act
                   directly interfere with the internal management of the institutions and
                  ·has completely curbed the constitutional freedom which has been
                  ·guaranteed to them by Article 30(1) of the Constitution of India 'and
                  'being violative of Article 30(1) of the Constitution are ultra vires
                   and therefore, wholly inapplicable to the appellants institutions.
                                                                                                 H
                     · It is now well settled by a long course of decisions of this Court
                  •that our Constitution which seeks to establish a secular State contains




                                              -·- -- - -   -
            942                 SUPREME COURT REP OR TS             [1980] 2 S.C.R •.

  A       sufficient checks and balances, safeguards and guarantees to protect
          the rights of the minorities, the establishment of educational institu-
          tions being one of them. Article 46 which contains the constitutional         C'\,"'
          directive to promote educational and economic interests of the weaker
          sections runs thus : -

     B             "46. Promotion of educational and economic interests
               of Scheduled Castes, Scheduled Tribes and other weaker
               sections :
                    The State shall promote with special c•Jre the educa-
               tional and economic interests of the weaker sections of the
               people, and, in particular, of the Scheduled Castes and the
  c            Scheduled Tribes, and shall protect them from social injus-
               tice and all forms of exploitation.
          Article 30(1) confors a fundamental rights on the minorities to estab-
          lish and administer educational institutions of their choice. Article
          30(2) enjoins on the State that in granting aid to the educational
 D        institutions it shall not discriminate against any educational institution
          on the ground that it is nnder the management of a minority, whether                •
         based on religion or language. Thus, it would appear that Article              •
         30(2) extends the guarantee contained in Article 30(1) even in the
         matter of receiving aid by the cdurntional institution established by
         the minority community. While adverting to this aspect of the
 E       matter this Conrt in Re: Kerala Education Bill, 1957(') observed as
         follows:-
                  "Nevertheless, in determining the scope and ambit of
             fundamental rights relied on by or on behalf of any person
             or body the court may not entirely ignore these directive
 F           principles of State policy laid down in Part IV of the Cons-
             titution but should udopt the principle of harmonious cons-
             truction and should attempt to give effect to both as much
             as possible''.
        Another important factor which has to be noticed is that the terms
    in which Article 30 is couched are absolute and unconditional as com-
 G
    pared to Article 19 which is hedged in by reasonable restrictions
    which may be imposed by the State in public interest. Thus, in a                    ...
    way the fundamental right contained in Article 30 is more effective
    and wider than the fundamental rights contained in Part III of the
   Constitution. This, however, docs not mean that the State is com-
H pletely deprived of even the right to regulate the working of the mino-
   rity institutions and to make rules in order to improve the standards.
           (1) [1959] S.C.R. 995.
           ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Fazal Ali,!.)     943


    of education imparted therein so as to achieve excellence and effi- A
    ciency in the educational standards of these institutions. Regula-
    tory measures cannot in any sense be regarded as placing restrictions
    or curbing the administrative autonomy of the institutions concerned.
    But care must be taken by the State to see that in passing regulatory
    measures it does not transcend its limits so as to interfere with the
    internal administration of the management of the institutions concern- B
    ed so as to violate the spirit and policy of Article 30. The question
    of the scope and ambit of Article 30 of the Constitution of India was
    very exhaustively considered as far back as in 1959 in Re : Kera/a
    Education Bill (Supra). This case arose when the President of India
    called for the opinion of the Supreme Court on a Reference being
     made to it under Article 143 (1) of the Constitution of India. The
                                                                             c
     Reference was heard by 7 Judges of this Court out of which 6 of them
     excepting Venkatararna Aiyar, J. gave a unanimous opinion regarding
     various clauses of the Bill. The provisions of the Kerala Education
     Bill are not pari materia with the provisions of the Act with which
     we are concerned in this case, bnt this Court while delivering its opi- D
     nion has laid down a number of salutary principles which throw a
•    flood of light on the scope and interpretation of Article 30 of the
     Constitution of India.
         T would, therefore, like to extract certain important passages from
    the opinion of the Court which dealt with the scope and application
                                                                               E
    of Article 30. I would, however, like to mention that some of the
    principles laid down by this Court in the aforesaid case may not apply
    to the present day conditions because there have been numerous
    changes in all aspects of life and even the concept of equality ha$
    undergone a revolutionary change. But the observations made by
    this Court would afford a very valuable guideline to determine the         F
    question in controversy in the present case. While indicating the
    width of the right conferred on the minority institutions by Article
     30(1) this Court pointed out that the right to administer does not en-
     visage a right to indulge ·in mal-administration. In this connection,
    Das, C.J. speaking for the majority observ"ed as follows : -
                                                                               G
              'The right to administer cannot obviously include the
          right to maladminister. The minority cannot surely ~sk for
1         aid or recognition for an educational institution run by them
          in unhealthy surroi;ndings, without any competent teachers,
          possessing 11ny semblance of qualification, and which does
          not maintain even a fair standard of teaching or which               H
          teaches matters subversive of the welfare of the scholars. It
          stands to reason, then, that the constitutional right to ad-
       6--138SCI/80
            944               SUPREME COURT REPORTS               [1980] 2 S C.1<.

    A          minister an education-al institution of their choice does not
               necessarily militate against the claim of the State to insist
               that in order to grant aid the State may prescribe reasonable
               regulations to ensure the excellence of the institutions to be
               aided".
    B    Again, while sounding -a note of caution to the Government that no
         step should be taken by it which amounts to the institution surrender-
         ing its personality merely because the institution is receiving aid from
         the State, said the Chief Justice thus : -
                   "No educational institution can in actual practice be
              carried on without aid from the State and if they will not get
    c         it unless they surrender their rights they will, by compulsion
              of financial necessities, be compelled to give up their rights
              under Article 30(1) ........... .
                 The State Legislatures cannot, it is clear, disregard or
             override those provisions merely by employing indirect
D            methods of achieving exactly the same result. Even the
                                                                                         •
             Legislature cannot do indirectly what it certainly cannot do
             directly".                                                              •
              Considering the provisions of the Kera/a Education Bill particu-
          larly Clauses 6, 7, 9, 10, 11, 12, 14 and 15 the Court held that al-
E        though these provisions constitute serious inroads on the right of
         administration of the institution and appear perilously near violating
         that right, yet in view of the peculiar facts of that case and having
         regard to the fact that clauses 9, 11 and 12 were designed to give
         protection and security to the ill paid teachers who are engaged in
         rendering service to the nation and protect the backward classes the
F       Court as at present advised may treat these clauses -as permissible
        regulations. These observations were based on the peculiar circum-
        stances of the provisions of the Education Bill and the objects which
        they sought to sub-serve may not be applicable to the present case
        where the circumstances me quite different because admittedly most
G       of the appellant institutions are not receiving any aid from the Govern-
        ment. Even so, this Court found it impossible to support clanses
        14 and 15 which according to them were totally destructive of the            •
        rights guaranteed by Article 30 ( 1).
           In this connection, the Court observed as follows : -
B               "But considering that those provisions are applicable to
            all educational institutions and that the impugned parts of
            clauses 9, 11 and 12 are designed to give protection and
     '        ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Fazal Ali,!.)        945


             security to the ill paid teachers who are engaged in render-          A
             ing service to the nation and protect the backward classes,
·'           we are prepared, as at present advised, to treat those clauses
             9, 11(2) and 12(4) as permissible regulations which the
             State may impose on the minorities as a condition for grant-
              ing aid to their educational institutions. We, however, find
              it impossible to support els. 14 and 15 of the said Bill as          B
              mere regulations. The provisions of those clause,;_ may be
              totally destructive of the rights under Article 30(1)".
             The Court had made it very clear that the observations extracted
         above applied to those categories of educational institutions which had
         sought not only recognition but also aid from the State. In the ins-      c
         tant case. however, most of the appellant institutions have been
         established by mustering their own resources and have not been
         receiving substantial aid from the Government. Similarly, the Court
         made it clear that although the minority institutions had no funda-
          mental right to recognition by the State yet to deny recognition on
•        terms which may amount to complete surrender of the management of
         the institution to the Government would be violative of Article 30( 1)
                                                                                   D

          of the Constitution. In this connection, Das, C.J. observed as
          follows:-
                    "There is, no doubt, no such thing as fundamental right
               to recognition by the State but to d$ny recognition to the
               educational institutions except. upon terms tantamount to the       E
               surrender of their constitutional right of administration of
               the educational institutions of their choice is in truth and
               in effect to deprive them of their rights under Article 30(1).
               We repeat that the legislative power is subject to the funda-
               mental rights and the legislature cannot indirectly take away       F
                or abridge the fundamental rights which it could not do
                directly and yet that will be the result if the said Bill con-
                teining any offending clause becomes law".
              Again dwelling on the special character of the minority institu-
          tions Das, C.J. speaking for the Court observed thus :
                                                                                       G
                   "It is obvious that a minority community can effectively
•              conserve its language, script or culture by and through edu-
               cational institutions and, therefore, the right to establish and
               maintain educational institutions of its choice is a necessary
               concomitant to the right to conserve its distinctive language,
               script or culture and that is what is conferred on all min-             n
               orities by Article 30(1) which has hereinbefore been
               quoted in full."
     946                 SUPREME COURT REPORTS                [1980] 2 S.C.R.

A      Describing the nature of the fundamental rights enshrined in Article
    30 the Court observed as follows :-
              "There can be no manner of doubt that our Constitution                 \
         has guaranteed certain cherished rights of the minorities con·
         ceming their language, culture and religion. These conces-
         sions must have been made to them for good and valid
         reasons. Article 45, no doubt, requires the State to provide
         for free and compulsory education for all children, but there
         is notJ1ing to prevent the State from discharging that solemn
         obligation through Government a'nd aided schools and Article
          45 does not require that obligation to be discharged at the
c        expense of the minority communi ties. So long as the Cons-
         titution stands as it is and is not altered, it is, we conceive,
         the duty of this Court to uphold the fundamental rights and
         thereby honour our sacred obligation to the minority commu-
         nities who are of our own."

D       Similarly, Venkatarama Aiyer, J. who gave a dissenting opinion
    agreed however with the scope of Article 30 as expounded by the majo-
    rity opinion. In this connection, the learned Judge observed as fol-
    lows:-
             "Article 30(1) belongs to the same category as Arts. 25,
         26 and 29, and confers on minorities, religious or linguistic,
E        the right to establish and maintain their own educatiQnal insti-
         tutions without any interference or hindrance from the State.
         The true intention of that Article is to equip minorities with a
         shield whereby they could defend themselves against attacks


F
         by majorities, religious or linguistic, and not to arm them
         with a sword whereby they could compel the majorities to
         grant concessions."
                                                                                . ..'
                                                                                    /'


        Various shades and aspects of the matter were again considered by
    this Court in the case of Rev. Sidhajbhai Sabhai and Ors. v. State
    of Bombay & Anr. (') In this case it appears that the Government
    of Bombay issued an order directing the concerned institution which
G
    was controlled by the United Church of Northern India to reserve 80%
    of the seats in the training colleges run by the institutiQn for teachers
    in non-Government training colleges. These teachers, were to tJe
    nominated by the Government. Accordingly, the Educational Inspec-
    tor ordered the Principal of the Training College not to admit without
    specific permissiQn of the Education Department private students in
B
    excess of 20% of the total strength in each class. The institution took
        (I) [1963] 3 S.C.R. 837.




                                                                                I
      •
                ALL SAINTS lllGH SCHOOL v. GOVT. OF A.P. (Fazal Ali, J.)       947

          ·serious exception to this order of the Government as amounting to            A
           direct interference in the management of the affairs of the institution.
           The institution filed a writ petition under Article 32 of the Constitution
           before this Court which was heard by 6 Judges who after considering
           the facts of the case and the natnre of the order passed by the Govern·
           ment obserYed as follows : -
                                                                                        B
                    "Unlike Article 19, the fundamental freedom under clause
               (1) of Article 30, is absolute in terms; it is not made subject
               to any reasonable restrictions of the nature the fundamental
:"             freedoms enunciated in Article 19 may be subjected to. All
I.             minoriiies, linguistic or religious have by Article 30(1) an
               absolute right to establish and administer educational insti-            c
               tutions of their choice; and any law or executive direction
               which seeks to infringe the substance of that right under
               Article 30(1) would to that extent be void. This, how-
               ever, is not to say that it is not open to the State to impose
               regulations upon the .exercise of this right ...... Regulation
               made in the true interests of efficiency of instruction, discip-         D
               line, health, sanitation, morality, public order and the like
               may undoubtedly be imposed. Such regulations are not res-
               trictions on the substance of the right which is guaranteed;
               they secure the proper functioning of the institution, in matters
               educational".
                                                                                        E
          This Court refused to uphold the order of the Government on the
          ground, that this was only a regulatory measure. The Court pointed
          out that the regulation in order to be valid must satisfy ·a dual test,
          namely, (1) that it should be reasonable, (2) that it should be purely
I
l •       regulative of the educational character of the institution so as to make
          the institution an effective vehicle of education for the minority com-       F
          munity. This Court observed thus;-
                   "The right established by Article 30(1) is a fundamen-
               tal right declared in terms absolute. Unlike the fundamen-
               tal freedoms guaranteed by Article 19, it is not subject to
               reasonable restrictions. It is intended to be a real right               G
               for the protection of the minorities in the matter of setti~g
                up of ~ucational institutions of their own choice. The
               right is intended to be effective and is not to be whittled down
               by so called regulative measures conceived in the interest
               not of the minority educational institution, but of
               the public or the nation as a whole. If every order which                H
               while maintaining the formal character of a minorny institu-
               1ion destroys the power of administration is held justifiable
     948                 SUPREME COURT REPORTS               (1980] 2 S.C.R.

A        because it is in the public or national interest, though not in
         its interest as an educational institution, the right guaranteed
         by Article 30(1) will be put a "teasing illusion", a promise
         of unreality. Regulations which may lawfully be imposed
         either b]' legislative or executive action as a condition of re-
         cei<ving grant or of recognition must be directed to making
B        the institution while retaining its character as a minority
         institution effective as an educational institution. Such re-
         gulation must satisfy a dual test-the test of reasonableness,
         and the test that it is regulative of the educational character
         of the institution and is conducive to making the institution
         an effective vehicle of education for the minority community
c        or other persons who resort to it."

        On an examination of the provisions of the impugned Act in the
    instant case, it is manifest that the Act contains provisions harsher and
    more offensive than the order passed by the Government of Bombay
    in the Bombay case (supra) referred to above.
D
       In the case of Rev. Father W. Proost & Ors. v. The State of Bihar
    and Ors.(') Hidayatullah, C. J. speaking for the Court observed as
    foUows :-
              "In our opinion, the width of Article 30(1) cannot be
E        cut down by introducing in it consideration on which Article
          29(1) is based. The latter article is a general protection
         is given to minorities to conserve their language, script or
         culture. The former is a special right to minorities to estab-
         lish educat.ional institutions of their choice. This choice is
         not limited to institution seeking to conserve language, script        . ..
                                                                                 ;...
         or culture and the choice is not taken away if the minority
         community having established an educational institution of
         its choice also admits members of other communities. That is
         a circumstance irrelevant for the application of Article 30
          ( 1) sine~, no such limitation is expressed and none can be
         implied. The two Article create two separate rights, although
G        it is possible that they may meet in a given case."
        The extent to which the State could interfere with the administra-
    tive autonomy of the minority institutions in view of the guarantee
    contained in Article 30 (1) of the Constitution was again fully dis-
    cussed and explained in the case of State of Kera/a etc. v. Very Rev.
H   Mother Provincial etc. (2) .. JP. this case the Court was considering the
       (I) [1969] 2 S.C.R. 73.
      (1) [1971] I S.C.R. 734.
       ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Fazal Ali, J.)       949


constitutionality of certain provisions of the Kerala University Act,         A
 1969 which was passed with a view to reorganise the University of
Kerala and establish a teaching, residential and affiliating University
of private Colleges including institutions founded by the minority
community. The Court was concerned only with some of the pro-
visions of the aforesaid Act and struck down the offending provi-
sions as amounting to a blatant interference with the rights guaranteed       B
to the minorities under Article 30(1) of the Constitution. Before
analysing the facts of that case, I might indicate that in the instant case
it is not disputed by the parties that all the appellants are minority
institutions and had a governing body of their own. It is also not
disputed that apart from the Christians others were also admitted to
the institutions and received education. Even some of the members
                                                                              c
of the staff were also non-Christians. In the background of these
facts. I have to see how far the decision of this Court referred to
above applies to the present appeals. While explaining the scope
and ambit of management or administration Hidayatullah, C.J. speak-
ing for the Court observe as follows : -                                      D
         "Administration means 'management of the affairs' of the
     institution. This management must be free of control so
     that the founders or their nominees can mould the institution
     as they think fit, and in accordance with their ideas of how
     the interests of the rommunity in general and the institution
     in particular will be best served. No part of this manage-
                                                                              E
     ment can be taken away and vested in another body without
     an encroachment upon the guaranteed right.
         TI1ere is, however, an exception to this and it is that the
     standards of education are not a part of management as such.
     These standards concern the b,cidy politic and are dictated by           F
     considerations of the advancement of the country and its
     people. Therefore, if universities establish syllabi for exa-
     minations they must be followed, subject however to special
     subjects which the institutions may seek to teach, and w a
     certain extent the State may also regulate the conditions of             G
     employment of teachers and the health and hygiene of
     students. Such regulations do not bear directly upon manage-
     ment as such although they may indirectly affect it. Yet
     the right of the State to regulate educati<:m, educational stan-
    dards and the allied matters cannot be denied. The mino-
    rity institutions cannot be allowed to fall below the standards           H
    of excellence expected of educational institutions, or under
    the guise of exclusive right of -management, to decline to
                                                                                       •
           950                SUPREME COURT REPORTS                 [1980] 2 s.c.R.

     A         follow the general pattern. While the management must be
               left to them, they may be compelled to keeQ. in step with
               otl1ers".

         These observations, therefore, establish three important tests which
          would determine whether or not the action of the Government amounts
     B    to interference with the management of the institution ( 1) In order
          that the management of the institution is free from outside control, the
          founders must be permitted to mould the institution as they think
          fit; (2) no part of the management could be taken away by the Gov-
                                                                                           4
          ernment and vested in anoilier body withont an encroachment upon                 "\
         the guaranteed right enshrined in Article 30(1) of the Constitution;                   f
     C    (3) There is however an exception W this general rule which is that                   1
         the Government or the University can adopt regulatory measures in
         order to improve the educational standards which concern the body
         politic and are dictated by considerations of the advancement of the
         country and its people, so that the managing institution may not under
         the guise of autonomy or exclusive right of management be allowed to
     D   fall below the standard of_ excellence that is required of educational
         institutions.

               Having laid down these tests the Court proceeded to analyse some
          of the offending sections of the Kerala Act and came to the conclusion
          that according to some of the sections the governing body set up by
     E    education society was to consist of 11 members and the Managing
          Council of 21 members. 11 members of the government body were
           (i) the principal of the private college, (ii) the manager of the private
          college, (iii) a person nominated by the University in accordance with
          the provisions in that behalf contained in the statute (iv) a person
          nominated by the Government and ( v) a person elected in accordance
     F
         with the procedure laid down on the Act. Sub-section (2) had the
          effect of making these bodies into bodies corporated having perpetual
          succession and a common seal. Sub-section ( 6) laid down the powers
         and functions of the governing body, the removal of members thereof
         and the procedure to be followed by it, including the delegation of its
     G    powers to persons prescribed by the Statutes. Sub-section (7) laid
          down that the decision in either of the two bodies shall be taken at the
         meetings on the basis of simple majority of the memb.,_rs present and
         voting. Thus, if these provisions were to apply to the minority insti-
         tutions, it is manifest that it would amount to a direct interference in
         the internal management of the institution and would tantamount to the
     H   institution surrendering its educational personality. In other words,
         the governing body appointed by the University would replace the
         governing body of the founders of the institutipils and thus the founders


if
    '
              ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Fazal Ali, l.)      951

        would have no right to administer the institution iu any way they like.   A
        Adverting to this aspect of the matter Hidayatullah, C.J. observed as
        follows:-
               "These sections were partly declared ultra vires of Article
            30(1) by the High Court as they took away from the foun-
            ders the right to administer their own institution. It is             B
            obvious that after the election of the governing body or the
            managing council the founders or even the community, has
            no band in the administration. The two bodies are vested
            with the complete administration Of the institutions. These
            bodies have a legal personality distinct from the educational
            agency or the corporate management. They are not ans_wer-             c
            able to the founders iu the matter of administration ..... .
                 The Constituti()n contemplates the administration to be in
            the bands of the particular community. However desirable
            it might be to associate nominated members of the kind men-
             tioned in ss. 48 and 49 with other members pf the govern-            D
            ing body or the managing council nominees, it is obvious that
             their vr0ice must play a considerable part in management.
            Situations might be conceived when they may have a pr~­
            ponderating voice. In any event, the administration goes td
;           a distinct corporate body which is in no way answerable to
             the educational agency or the corporate management. The              E
            founders have no say in the selection of the members nomi-
             nated by them. It is, therefore, clear that by the force of sub-
             sections (2), (4) and (6) of sections 48 and 49 the minority
            community loses the right to administer the institution it has
             founded. Sub-section (5) also compels the governing body
             or the managing council to follow the mandates of the                F


,
             University in the administration of the institution."
            Their Lordships then proceeded to consider the vires of sub-sec-
        tions (2) and ( 4) of section 56 which laid down the conditions of
        service of the teachers of private colleges. Sub-section (2) provided
        !hat no teacher of a private college could be dismissed, removed or       G
        reduced in rank by the governing body or managing council witbont
        the previous sanction rOf the Vice Chancellor or {llaced under suspen-
        sion by the governing body or managing council for a continuon~
        period exceeding fifteen days without such previous sanction. Further
        sub-section ( 4) provided that a teacher against whom disciplinary
        action is taken shall have a right of appeal to the Syndicate, and the    H
        -Syndicate shall have, power to order reinstatement of the teacher in
        cases of wrongful removal or dismissal and to order such other reme-
      952                ;;UPREME COURT REPORTS               (1980] 2 S.C.R.

A  dial ~easures as it deems fit, and the !jOVerning body or managing
   council, as the case may be, shall comply with the order. It is thus
   obvious that in view of the provisions of sub-sections (2) and (4)
  of section 56 the managing body bad no discretion in the matter and
  the right of the management was completely taken away and vested
  in some other body. In the instant case, although the Act does not
B at all provide any rules or regulations by which the conditions of
  service of the teachers are to be governed yet it prohibits dismissal or
  removal of teachers without prior sanction of a competent authority
  to be declared by the Government. Similarly, it provides for an appeal
  to an appellate authority without laying down any guidelines and no
  right of appeal is given to the management. These provisions are con-
c tained in section 3, sub-sections (2), (3) and (4) and section 4. This
  Court also considered the effect of section 58 of the Kerala Act by which
  a teacher of a college who was elected as a member of the Legislative
  Assembly or Parliament could not be debarred on bis election, but
  would be allowed to continue. Upholding the decision of the High
D Court  and commenting on the unconstitutionality of section 5 6 sub-sec-
  tions (2) and ( 4) and section 58 this.Court observed as follows : -
             "These provisions clearly take away the disciplinary
         action from the governing body and the managing council
         and confer it upon the University."
E             ''This enables political parties to come into the picture
         of the administration of minority institutions which may not
         like this interference. When this is coupled with the choice
         of nominated members left to Government and the Univer-
         sity by sub-s. 1 ( d) of ss. 4 8 and 49 it is clear that there is
         much room for interference by persons other than those in
F        whom the founding community would have confidence."

        In the end while making it clear that there was no element of mala-
    fides in the Act passed by the Legislature, the provisions of the Act
    unfortunately robbed the founders of their right of administration and
    were, therefore, hit by Article 30 ( 1) of the Constitution. In this
G   connection, the Court observed as follows : -
              "We have no doubt that the provisions of the Act were
         made bona fide and in the interest of education but un-
          fortunately they do affect the administration of these insti-
         tutions and rob the founders of that right which the
H         Constitution desires should be theirs. The provisions,
         even if salutary, cannot stand in the face of the constitu-
         tional guaravtees".
•
        ALL SAINTS HIGH SCHOOL V. GOVT. OF A.P. (Faz.al Ali, J.) 95 3


        In the case of D.A.V. College etc. v. State of Punjab & Ors. (') this   A
    Court was considering the provisions of Chapter V Clauses 2(1)(a),
    17 and 18 read with clauses 1(2) and (3). Clause 2(1) (a) pro-
    vided that a college applying for admission to the privileges of the
    University had to send a letter of application to the Registrar and
    would have to satisfy the Senate ( 1) that the College shall have a
                                                                                B
    regularly constituted governing body consisting of not more than 20
    persons approved by the Senate (2) that among those persons there
    should be two representatives of the University and the Principal of
    the College Exofficio. Clause 17 provided that any staff initially ap-
    pointed shall be approved by the Vice-Chancellor and any subsequent
    changes made must be reported to the University for approval. It was        c
    also provided that in the case of training institutions the teacher pupil
    ratio shall not be less than 1: 12. The constitutional validity of these
    provisions was challenged before this Court on the ground that it
    violated Article 30( 1) of the Constitution because the College was
    a minority institution being a College established by the Arya Samaj.
    On a consideration of these provisions, this Court upheld the conten-       D
    tion of the appellants and observed thus:-

              "It will be observed that under clause 1 (3) if the peti-
         tioners do not comply with the requirements under 1 (a) their
         affiliation is liable to be withdrawn. Similarly it is stated
          that clause 17 also interferes with the petitioners                   E
         right to administer their College as the appointment
         of all the staff has to be approved by the Vice-Chancellor and
         that subsequent changes will also have to be reported to, the
         University for Vice-Chancellor's approval. We have already
         held that the Petitioners institutions are established by a reli-
         gions minority and therefore under Article 30 this minority            F
         has right to administer their educational institutions according
         to their choice. Clause 2(a)(a) and 17 of Chapter Vin our
         view certainly interfere with that right."

        The matter was again fully considered by this Court by a Bench
                                                                                G
    consisting of 9 Judges in all its aspects. In the case of The Ahmedabad
    St. Xaviers College Society & Anr. etc. v. State of Gujarat & Anr. (')
    and this is the leading case on the subject. This case has been relied on
    by counsel for both the parties in support of their respective oo'nten-
    fons. In this case it appears that certain provisions of the Gujarat
    University Act 1949 were challenged. Section 5 of the Act provided          II
       (l) [1971] Supp. S.C.R. 688.
       (2) [1975] I S.C.R. 173.
                                                                                 •
     954                SUPREME COURT REPORTS                [19801 2 s.c.R.

A   that no educational institution situated within the University cou1d be
    associated in any way with or seek admission to any privilege of any               l

    other University save and except with the sanction of the State Govern-
    ment. Section 33A(l)(a) of the Act provided that every college other
    than a Government college or a college maintained by the Government
    shall be under the management of a governing ~ody which includes
8   among others, the Principal of the College, a representative of the
    University nominated by the Vice-Chancellor and (ii) in the case of
    selection of a member of the teaching staff of the College a selection
    committee would be constituted consisting of the Principal and a rep-
    resentative of the University nominated by the Vice-Chancellor. Sub-
    section (3) of the section provided that the provisions of section 33A
c   ( 1) shall be deemed to be a condition of affiliation of every College
    referred to in that sub-section. In other words, according to this pro-
    vision, even the Colleges which were minority institutions would fall
    within the mischief of the section. Section 39 provided that within the
    University area all post-graduate instruction, teaching and training shall
D   be condncted by the University or by such affiliated College or insti-
    tution and in such subjects as may be prescribed by statutes. Section
    40(1) enacted that Court of the University may determine that all
    instructions, teaching and training in the courses of studies in respect
    of which the University was to hold examinatipn shall be conducted
    by the University and shall be imparted by the teachers of the Uni-
E   versity. Section 41 (1) stated that all Colleges within the University
    area which were admitted to the privilege of the University under
    section 5(3) and all Colleges within the said area which may here-
    after be affiliated to the University shall be constituent colleges of
    the University, and their relations with the University would be govern-
    ed by statutes made by the University in that behalf.                            • •'
F
         As regards the conditions of service of the teachers appointed by
    the University section 51A(a) (b) enacts that no member of the
    teaching or other academic and non teaching staff of an affiliated
    college shall be dismissed, or removed or reduced in rank except after
    an enquiry in accordance with the procedure prescribed in clause (a)
G   and the penalty to be inflicted on him is to be approved by the Vice-
    Chancellor or any other officer of the University authorised by the
    Vice-Chancellor in this behalf. Sectip'n 52A( 1) provided that any
    dispute between the governing body and any member of the teaching
    staff shall on a request of the governing body or pf the member con-
    cerned be referred to a Tribunal or arbitration consisting of one
H   member nominated by the governing body of the college, one member
    nominated by the membe~r concerned and an umpire appointed by
    the Vice-Chancellor. In view of the provisions referred to above,
        ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.       (Fazal Ali, J.)   955
s

    the question that fell for consideration in that case was whether these     A
    provisions interfere with the internal management of the minority
    institutions so as to compel them to surrender all their administrative
     powers to the University or the Vice-Chancellor or the officers nomi•
     na!OO by the Vice-Chancellor. There can be no doubt that if these
     provisions are construed against the background of the objective of
     the Act the idea was not lo leave any controlling voice either in the      B
     courses of studies or in the matter of disciplinary action against the
     staff and the teacher in the management of the institution but to take
     over the entire management by the University authorities giving
     nominal representation to the management of the institntion.
        Before we analyse the decision in St. Xaviers case (supra) we must      c
    note that as far back as 1959 in Re Kerala Education Bill this Court
    had clearly pointed out that while the minority institution had no
    constitutional right to be affiliated to any college or University the
    right to .be affiliated flowed from the language of Article 30( 1) of
    the Constitution and the University concerned could not either refuse
    affiliation or impose such conditions which may resnlt in complete          D
    surrendering of the management of the minority institution. Thus,
     the central question to be decided. in Ibis case was whether by virtue
     of the provisions of the Act set out above, Article 30( 1) had been
     violated and if so to what extent.
         So far as the question of afliliation was concerned the entire courl       E
     held that although there was no fundamental right ta affiliation but
     recognition or affiliation was necessary for meaningful exercise of the
     right to establish and administer educational institution conferred on
     the minority institutions under Article 30(1) of the Constitution.
     In this connection, the Court observed as follows : -
                                                                                    F
                 "The consistent view of this Court has been that there
           is no fundamental right of a minority institution of affiliation.
           An explanation has ocen put upon that statement of law.
           It is that affillation must be a real and meaningful exercise
           for minority institutions in the matter of imparting general
           secular education. Any law which provides for affiliation on             G
           terms which will inv91ve abridgement of the right of
           linguistic and religious minorites to administer and establish
            educational institutions of their choice will offend Article
            30( 1). The educational institutions set up by minorities
            will be robbed of their utility if boys and girls cannot be
             trained in such institutions for University degrees. Minori-           H
            ,ties will virtually lose their right to equip their children
              for ordinary careers if affiliation be on tenns which would
       956                SUPREME COURT REPORTS                 [ 1980] 2 S.C.R.

A         make them surrender and lose their rights to establish and
          administer educational institutions of their choice nnder
          Article 30 ............................ ..
          The establishment of a minority institution is not only
          ineffective but also unreal unless ·such institution is affiliated
          to a University for the purpose of .conferment of degrees
B         on students".
     Relying on the previous decision in the case of State of Kera/a etc.
     v. Very Rev. Mother Provincial etc. (supra) Ray, C.J. reiterated the
     principles laid down by the previous case and observed as follows : -
               "W11en minority applies for affiliation, it agrees to follow
c         the uniform courses of study. Affiliation is regulating the
          educational character and content of the minority institu-
          tions. These regulations are not only reasonable in the
          interest pf general secular education but also conduce to ·
          the improvement in the stature and strength of the minority
D         institutions.. .. .. . . .. . . . . . . .. .. . .. . .. .. . .....
          ........................................
          Affiliation mainly pertains to the academic and educational
          character of the institution. Therefore, measures which
          will regulate the courses of study, the qualifications and
          appointment of teachers, the conditions of employment of
E         teachers; the health and hygiene of students, facilities for
         libraries and laboratories are all comprised in matters
         germane to affiliation of minority institutions. These regula-
         tory measures for affiliation are tor uniformity, efficiency
         and excellence in educational courses and do not violate any
         fundamental right of the minority institutions under Article
F
         30".
          Thus, to a limited extent affiliation of the minority institution to
     the University or Colleges concerned was held to be a regulatory
     measures provided it was aimed at improving the educational standards
    'lllld laying down the conditions of employment of the teachers. This
G   Court repeated that the minority institutions have the right to adminis-
    ter the institution and shorn of some checks and balances in the shape
    of regulatory measures the right to administer cannot be tampered
    with. In this connection, Ray, C.J. observed as follows:-
            "The minority institutions have the right to administer
        institutions. The right implies the obligation and duty of
        the minority institutions to render the very best to the stu-
        dents. Iu the rights of administration, checks and balances
             ALL SAINTS IDGH SCHOOL v. GOVT. OF A.P. (Fazal Ali,!.)       957


            in the shape of regulatory measures are required to ensure          A
            the appointment of good teachers and their conditions of
            service. The right to administer is to be tempered with
            regulatory measures to facilitate smooth administration. The
            best administration will reveal no trace or colour of mino-
            rity. A minority institution should shine in exemplary
 •          eclectism in the administration of the institution ....... .        B
            Regulations which will serve the interest of the students,
            regulations which will serve the interests of the teachers
 •          are of paramount importance in good administration .
            Regulations in the interest of effciency of teachers, discip-
            line and fairness in administration are necessary for pre-
            serving harmony among affiliated institutions".
                                                                                c
            As regards the provision of the Act concerned by which the
        minority institution became a constituent College this was expressly
        struck down by thb Court where Ray, C.J. speaking for the Court
        observed as follows : -
                                                                                D
                 "Once an alfi!iated coQege becomes a constituent col-
             lege within the meaning of section 41 of the Act pursuant
             to a declaration under section 40 of the Act it becomes
             integrated to the university. A constituent college does not
             retain its former individual character any longer. The
' ...        m•nority character of the college is lost. Minority institu-       E
             tions become part and parcel of the university. The result
             is that section 40 of the Act cannot have any compulsory
             application to minority institutions because it will take away
             their fundamental right to administer the educational institu-
             tions of their choice".
                                                                                F
            Explaning w.hat the concomitants of an autonomy in administra-
        tion meant Ray, CJ. observed as follows : -
            "Autonomy in administration means right to administer
             effectively and to manage and conduct the affairs of the
             institutions. The distinction is between a restriction on the
                                                                                G
             right of administration and a regulation prescribing the
             manner of administration. The right of administration is
             day to day administration. The choice in the personnel of
             management is a part of the administration. The university
             will always have a right to see that there is no mal-adntinis-
              tration. If there is mal-administration, the nniversity will      B
              take steps to cnre the same. There may be control and
             <:heck on administration in order to find out whether the
       958              SUPREME COURT REPORTS               (1980] 2 s.c.R.
A         minority institutions are engaged in activities which are not
          conducive to the interest of the minority or to the require-
          ments of the teachers and the students ................ .
          The provisions contained in section 33A(l) (a) of the Act
          have the effect of displacing the management and entrusting
          it to a dillerent agency. The autonomy in administration
B         is lost. New elements in the shape of representatives of
          different type are brought in. The calm waters of an insti-
          tution will not only be disturbed but also mixed. These
          provisions in section 33A(l)(a) cannot therefore apply to
          minority institution".
                                                                                •
 c      It follows from what had been held in the aforesaid case was that
    there should be no interference in the right of day to day adminis-
   tration of the institution of in the choice ·of the personality of the
   managing committee or governing body of the institution. This Court
    struck down section 33A(l) (a) of the Gujarat Act on the ground
   that the management of the college was completely displaced and was
D substituted by the university authorities. In other words, the posi-
   tion appears to be that although the university to which the minority
   institution was affiliated may exercise supervision in so far as the
   syllabi or the courses of studies are concerned, it cannot be allowed
   to be associated with the managing committee or the governing body
E
   of the institution so as to have a controlling voice in the matters at     ... ,
   issue and thereby destroy the very administrative autonomy of the
   minority institution. This appears to be the main reason why Ray,
  C.J. was of the opinion that section 33A(l)(a) was violative of
  Article 30 (1), and, therefore, not applicable to the minority institu-
  tions. The Court then dealt with the provisions of sections 5 lA
F and 52A of the Gujarat Act. Under section 51A no member of the
  teaching, other academic and non-teaching staff of an affiliated col-
  lege should be dismissed, removed or reduced in rank except after
  an enquiry in which he has been informed of the charges and giwn
  a reasonable opportunity of being heard and until he had been given
  a reasonable opportunity of making a representation on any such
G penalty proposed to be inflicted on him and the penal!y to be inflicted
  on him was to be approved by the Vice-Chancellor or any officer o~
  the University authorised by him. This Court held that this is a
  blanket power given to the Vice-Chancellor without any guidance,
  and pbserved as follows :
                                                                                \
             "The approval of the Vice-Chancellor may be intended
B       to be a check on the administration. The provision con-
        tained in section 51A, clause (b) of the Act cannot be said
        to be a permissive regulatory measure inasmuch as it confers
        ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Faza/ Ali,!.)      959


        arbitrary power on the Vice-Chancellor to take oaway the              A
        right of administration of the minority institutions, Section
        _?IA of the Act cannot, therefore, apply to minority insti-
        tutions."

        Dealing with the provisions contained in Section 52A of ·the
•                                                                           B
    Gujarat Act which contemplated a reference of any dispute between
    the governing body and any member of the teaching or oacademic and
}
    non-teaching staff of an affiliated college which was connected with
    the conditions of service of such member to a.Tribunal of Arbitration
    consisting of one member nominated by the governing body of the
    college, one member nominated by the member concerned and an             c
     Umpire appointed by the Vice;-Chancellor, the learned Chief Justice
     was of the opinion that the introduction of such an arbitration to a
     Tribunal would start a spate of fruitless litigation and was likely to
     impair the excellence and efficiency maintained by the educational
     institution concerned. In this connection, the learned Chief Justice
                                                                                      ,.
     observed as follows : -                                                 D

              "These references to arbitration will introduce an area
          of litigious controversy inside the educational institution.
          The atmosphere of the institution will be vitiated by such
          proceedings. The governing body has its own disciplinary
          authority. The governing body has its domestic jurisdic-
          tion. This jurisdiction will be displaced. A new jurisdic-
          tion will be created in administration. The provisions con-
          tained in section 52A of the Act cannot, therefore, apply to
           minority institution."

         Jaganmohan Reddy, J. agreeing with the majority judgment deli-           F
     vered by the Hon'ble Chief Justice endorsed his conclusions regarding
     the constitutional validity to sections 40, 41, 33A(l)(a), 33A(l)(b),
     51A and 52A of the Act and observed thus : -

                "We agree with the Judgment of Hon'ble the Chief
           Justice just pronounced and with his conclusions that sec-             G
           tions 40, 41, 33A(l) (a), 33A(l) (b), 51A and 52A of the
           Act violate the fundamental rights of minorities and cannot,
           therefore, apply to the institutions established and adminis-
            tered by them."
         Dwelling on the importance of the fundamental right enshrined            H
      in Article 30, the learned Judge held that the right under Article 30
      7-138 SCJ/80
              960               SUPREME COURT REPORTS                  (1980) 2 S.C.R.

        A     could not be exercised in vacuo, and in this connection observed as
              follows :·-·
                        "The right under Article 30 cannot be exercised in
                   vacuo. Nor would it be right to refer to affiliation or
                   recognition as privileges granted by the State. In a demo-
        B         cratic system of Government with emphasis on edncation
                   and enlightenment of its citizens, there must be elements
                  which give protection to them. The meaningful exercise of
                  the right under Article 30(1) would and must necessarily
                  involve recognition of the secular education imparted by the
                  minority institutions without which the right will be a mere
    c            husk. This Court has so far consistently struck down all
                 attempts to make affiliation or recognition on terms tenta-
                 mount to surrender of its rights under Article 30(1) as
                 abridging or mking away those rights. Again as without
                 affiliation there can be no meaningful exercise of the right
                 under Article 30 (l), the affiliation to be given ~hould be
    D            consistent with that right, nor can it indirectly try to achieve
                 what it cannot directly do."
                 Similar view was taken by Khanna, J. who also held that manage-
             ment of a minority institution should be kept free from governmental
             or ether interference because the worrls "of their choice" appear-
    E       ing in Article 30 have special significance and would actually lose
            their value and utility if too much interference or unnecessary
            curbs are placed in the administration of the affairs of the minority
            institution. The learned Judge observed thus :
                  "Administration connotes management of the affairs of the
F                institution. The management must be free of control so
                 that the founders or their nominees can mould the insti-
                 tution as they think fit and in accordance with their ideas
                 of how the interest of the community in general and the
                 inslitution in particular will be best served. The words
                "of their choice" qualify the educational institutions estab-
G               lished and administered by the minorities need not be of
               some particular class; the minorities have the right anrl
               freedom to establish and administer such educational
               institutions as they choose".
            Similarly, explaining the scope and ambit of Articles 29 and 30
        the learned Judge observed as follows :
H
               "The broad approach has been to see that nothing is done
               to impair the rights of the minorities in the matter of their
     ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Fazal Ali, !.)         961

     educational institutions and that the width and scope of              A,
    the provisions of the Constitution dealing with those rights
    are not circumscribed. The principle which can be dis-
    cerned in the various decisions of this Court is that !he
     Catholic approach which led to the drafting of the
    provisions relating to minority rights should not be set
    ~ naught by narrow judicial interpretation.        The minc>-          B
    rities are as much children of the soil as the ma1ority
    and the approach has been to ensure that nothing should
    •be done as might deprive the minorities of a sense of
    belonging, of a feeling of security, of a consciousness of
     equality and of the awareness that the. conservation of
     their religion, culture, language and script as also the pro-
                                                                           c
     tection of their educational institutions is a fundamental
     right enshrined in the Constitution. The same generous,
     liberal and sympathetic approach should weigh with the
     courts in construing Articles 29 and 30 as marked the
     deliberations of the Constitution-makers in drafting these            D
     Articles and making them part of the fundamental
     rights".
The learned Judge held that although it was permissible for the
 authority concerned to prescribe regulations but such regulations
 should not impinge upon the right conferred on the minority insti-        E
·tutions under Article 30(1). A just balance had to be struck
 between the two objectives, namely, passing of regulatory measures
 and preserving the fundamental rights of the minority institutions. The
learned Judge observed as follows : -
     "It is, therefore, permissible for the authority concerned            F    .
      to prescribe regulations which must be complied with
      before an institution can seek and retain affiliation and
     .recognition. Question can arise whether there is any limi-
      tation on the prescription of regulations for minority edu-
     ·cational institutions. So f,ar as this aspect is concerned,
     the authority prescribing the regulations must bear in mind           G
      that the Constitution has guaranteed a fundamental right
      to the minorities for establishing and administering their
       educational institutions. Regulations made by the autho-
       rity concerned should not impinge upon that right. Balance
      bas, therefore, to be kept between the two objectives, that
       of ensuring the standard of excellence of the institution           B
       and that of preserving the right of the minorities to estab-
      1ish and administer their educational institutions. Regula-
              962                 SUPREME COURT REPORTS               [1980] 2 s.c.R.

        A           tions which embrance and reconcile the two objectives can
                    be considered to be reasonable."
                 The learned Judge further held that any law which inter£eres with
             the minorities choice of a governing body would be violative of
             Article 30 (1) and observed thus : -
        8         "In the light of the above principles, it can be stated that a
                  law which interferes with the minorities choice of a
                  governing body or management council would be violative
                  of the right guaranteed by Article 30(1) ."
                 Criticising the constitutional validity of Section 52A of the Gujarat
             Act Khanna, J. shared the view taken by Ray, C.J. which has been
      . c
             referred to above. The learned Judge observed as follows : -
                   "The provisions of section 52A would thus not as a spoke
                   in the wheel of effective administration of an educational
                   institution. It may also be stated that there is nothing
                   objectionable to selecting the method of arbitration for
      . D          settling major disputes connected with conditions of ser-
                   vice of staff of educational institutions. It may indeed be a
                   desideratum. What is objectionable, apart from what
                   has been mentioned above, is the giving of the power
                  to the Vice.Chancellor to nominate the Umpire. Nor-
                  mally in such disputes there would be hardly any
       E           agreement between the arbitrator nominated by the govern-
                  ing body of the institution and the one nominated by the
                  concerned member of the staff. The result would be that
                   the power would vest for all intents and purposes in the
                  nominee of the Vice-Chancelloc to decide all disputes
                  between the governing body and the member of the staff
       F          connected with the latter's conditions of service.          The
                . governing body would thus be hardly in a position to take
                  any effective disciplinary action against a member of the
                  staff. This must cause an inroad in the right of the govern-
                  ing body to administer the institution. Section 52A should,
                  therefore, be held to be violative of Article 30 ( 1) so far as
       G          minority educational institutions are concerned."
            Similarly, while striking down sections 40 and 41 of the Gujarat
            Act, the learned Judge found that the affiliated colleges would become
            constituent colleges as a result of the provisions of these sections and
            11eld that these provisions could not apply to the minority institutions.
       B    In this connection, Khanna, J. observed as follows : -
                 "A provision which makes it imperative that teaching in

··•              under-graduate courses can be conducted only by the Uni-
          ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Fazal Ali, J.)          963

        versify and can be imparted only by the teachers of the                  A
        University plainly violates the rights of minorities to estab-
        lish and administer their educational institution. Such ·a
        provision must consequently be held qua minority institu-
        tions to resqlt in contravention of Article 30(1). I would,
        therefore, strike down section 40 so far as minority edn-
        cational institutions are concerned as being violative of                B
        Article 30(1)".                                         ·
        Mathew, J. while striking down the constitutional validity of
    lieCtion 33A(l) of the Gujarat Act observed as follows : -

1       "The heart of the matter is that no educational institution
        established by a religious or linguistic ·minority can claim
                                                                                 c
                                                                                 .J

        total immunity from regulations by the legislature or the uni-
        versity if it wants affiliation or recognition; but the charac-
        ter of the permissible regulations must depend upon their
        purpose ........ In every case, when the reasonableness of
        a regulation comes up for consideration before the court,                D
•       the question to be asked and answered is whet11er the
        regulation is calculated to subserve or will in effect sub-
        serve the purpose of recognition or affiliation, namely, the
        excellence of the institution as a vehicle for general secular
        education to the minority community and to other persons
        who report to it. The question whether a regulation is in                E
        the general interest of the public has no relevance, if it
        does not advance the excellence of the institution as a
        vehicle for general secular education as, ex-hypothesi, the
        only permissible regulations are those which secure the
        effectiveness of the purpose of the facility, namely, the excel-         F ,
        lence of the educational institutions in respect of their
        educational standards."
        Similarly, the learned Judge took strong exception to the pro-
    visions of section 33A which required that the college should have a
    governing body which should include persons other than those who
    are members of the society of Jesus, struck provisions of section 33A        G
•   and observed as follows : -
        "We think that the provisions of sub-sections (l)(a) and
        (l) (b) of section 33A abridge the right of !he religious
        minority to administer edncational institutions of their choice.
        The requirement that the college shollld have a governing                H
        body which shall include persons other than those who are
        members of the governing body of the society of Jesus
       964               SUPREME COURT REPORTS               (1980] 2 S.C.lt.

 A        would take away the management of the college from
          the governing body constituted by the Society of Jesus and            '
          vest it in a different body. The right to administer the
          educational institution established by a religious minority is
          vested in it. It is in the governing body of the Society of
          Jesus that the religious minority which established the
 B        college has vested the right to >!dminister the same. The
          requirement that the college should have a governing body
          including persons other than those who constitute the
          governing body of the Society of Jesus has the effect of
          divesting that body of its exclusive right to manage the
          educational institution ....... .
 c
         The learned Judge further pointed out that under the guise of
     preventing ma1-administration the right of the governing body to
     manage the affairs of the minority institution should not be taken
     away and in the same token observed as follows : -       -
         "Under the guise of preventingi mal-administration, the right
 D
         of the governing body of the college constituted by the re-
         ligious minority to administer the institution cannot be taken          '
         away. The effect of the provision is that the reli-
         gious minority virtually loses its right to administer
         the institution it has founded. "Administration" means
 E       'management of the affairs' of the in~titution.           This
         management must be free of control so that the
         founders or their nominees can mould the institution
         according to their way of thinking and in accordance with
         their idea of how the interests of the community in general
          and the institution in particular will be best served. No
 F       part of this management can be taken away and vested in
         another body without an encroachment upon the guaranteed
         right."
          Similarly, analysing various provisions of the Gujarat Act like       ).   .
     sections 51A(l) (a) and 51A(l)(b) etc. the learned Judge observed
     as follows : -
G
         "The relationship between the management and a teacher                      •
         is that of an employer and employee and it passes one's
         understanding why the management cannot terminate the
         servicei; of a teacher on the basis of the contrac~ of em-
         ployment. Of course, it is open to the State in the exer-
ft       cise of its regulatory power to require that before the ser-
         vices of a teacher are terminated he should he given an
         opportunity of being heard in his defence. But to requir<'
                             8'0~ - 62-. 71"?

       ALL SAINTS IIlGH SCHOOL v. GOVT. OF A.P. (Fazal Ali,].)           965


      that for terminating the services of a teacher after an                  A
      inquiry has been conducted, the management should have
      the approval of an outside agency like the Vice-Chancellor
      or of his nominee would be an abridgement of its
      right to administer the educational institution. No guide-
     lines are provided by the legislature to the Vice-Chancellor
     for the exercise of his power. The fact that the power can                B
     be delegated by the Vice-Chancellor to any officer of the
     university means that any petty officer to whom the power
     is delegated can exercise a general power of veto. Theri:i is
     no obligation under the sub-sections (l)(b) and (2)(b)
     that the Vice-Chancellor or his nominee should give any
     reason for disapproval. As we said a blanket power without
                                                                               c
     any guideline to disapprove the action of the management
     would certainly encroach upon the right of the management
     to dismiss or terminate the services of a teacher after an
     enquiry."
   Beg, J. speaking in the same strain observed as follows : -                 D
      "It is true that, if the object of an enactment is to compel
      a minority institution even indirectly, to give up t.he exercise
      of its fundamental rights, the provisions which have this
      effect will be void or inoperative against the minority insti-
      tution. The price of affiliation cannot be a total abandon-              E
     ment of the right to establish and administer a minority
     institution conferred by Article 30(1) of the Constitution .
    . This aspect of the matter, therefore, raises the question
      whether any of the provisions of the Act are intended to
      have that effect upon a minority institution. Even if that
     intention is not manifest from the express terms of statutory
     provisions, the provisions may be vitiated if that is their
      necessary consequence or effect."
    Even Dwivedi, J. who had sounded a discorded note held that so
far as section 33A(l) (a) was concerned it was obnoxious to Article
30 (I ) of the Constitution.
                                                                               G
    In the case of Gandhi Faizeam College Shahajahanpur v. Univer-
sity of Agra and Anr.(I) the majority judgment consisting of V. R.
Krishna Iyer and A. C. Gupta, JJ. observed as follows :-
    "What is the core of the restriction clamped down by
    Statute 14-A ? What is the conscience and tongue of Arti-                  H
    cle 30? If the former is in,~ongruous with the latter, it
  (1) [1975] 3 S.C.R. 810.
      966                  SUPREME COURT REPORTS              [1980] 2 S.C.R.
A        withers as void; otherwise, it prevails and binds.     That is
         the crux of the contro¥ersy."
         "The thrust of the case is that real regulations are
         desirable, necessary and constitutional but, when they
         operate on the 'administration' part of the right, must be
B        confined to chiselling into shape, not cutting down out of
         shape, the individual personality of the minority."
        Mathew, J. who gave a dissenting opinion and whose opinion fol-
    lows the principles laid down by t~ Court in St. Xavier's case (supra)
    observed as follows : -
c       "The determination of the composition of the body to
        administer the educational institution established by a reli-
        gious minority must be left to the ntlnority as that is the
        core of the right to ailminister. Regulations to prevent mal-
        administration by that body are permissible. As the right
        to determine the composition of the body which will ad-
D       ntlnister the educational institution is the very essence of the
        right to administer guaranteed to the religious or linguistic
        minority nnder Article 30(1), any interference in that area
        by an outside authority cannot be anything but an abri<)ge-
        rnent of that right. The religious or linguistic mino1ity must
E       be given the freedom to constitute the agency through
        which it proposes to administer the educational institution
        established by it as that is what Article 30(1) guarantees.
        The right to shape its creation is one thing : the right to
        regulate the manner in which it would function after it has
        come into being is another. Regulations are pennissible to              ._,.,.,
                                                                                   r
F       prevent rnal-adntlnistration but they can only relate to the            _
        manner of administration after the body which is to adminis-
        ter has come into being."
        The entire case law as fully reviewed by this Court recently in
    the case of Lilly Kurian v. Sr. Lewlna & Ors.('). Jn this case, Sen,
G
    J. speaking for the court and after a deep dischotomy and adroit
    analysis of St. Xavier's case (supra) and the case• which preceded
    that case summed up the law thus : -
        "An analysis of the judgments in St. Xavier. Coll<ge's case
         (supra) clearly shows that seven out of nine Judge,, held that
                                                                                    '
                                                                                    f

        the provisions contained in clauses (b) of sub-sections ( 1)
H       and (2) of section SIA of the Act were not applicable
        to an educational institution established and managed by
      (1) [1979] l S.C.R. 820.
         ALL SAINTS HIGH SCHOOL     v. GOVT. OF A.P. (Fazal Ali, !.) 967

         religious or linguistic minority as they interfere with the       A
        diSciplinary control• of the management over the staff of its
         educational institutions. The reasons given by the majority
        were that the power of the management to terminate the ser-
         vices of any members of the teaching or other academic and
•       non-academic staff was based on the relationship between
        an employer and his employees and no encroachment could            B
        be made on this right to dispense with their services under
        the contract of employment, which was an integral part of
        the right to administer, and that these provisions conferred
        on the Vic~hancellor or any other officer of the Uni-
        versity authorised by him, uncanalised, unguided and un-
        limited power to veto the actions of the management."              c
        "The power of appeal conferred on the Vice-Chancellor
        under Ordinance 33 ( 4) is not only a grave encroachment
        -0n the institution's right to enforce and ensure discipline in
        Hs administrative affairs but it is uncanalised an,J nnguided
        in the sense that no restrictions are placed on the exercise       D
        of the power. The extent of the appellate power of the
        Vice-Chancellor is not defined; and, indeed, his powers
         arn unlimited. The grounds on which the Vice-Chancel-
        lor can interfere in such appeals are also not defined. He
r        may not only set aside an order of dismissal of a teacher
                                                                           E
I       and order his reinstatement, but may also interfere with any
        of the punishments enumerated in items (ii) to (v) of
        Ordinance 33(2); that is to· say, he can even interfere
        against the infliction of minor punishments. In the absence
        of any guidelines, it cannot be held that the power of the
         Vice-Chancellor under Ordinance 33 ( 4) was merely a              F
         check on maladministration.
            As laid down by the majority in St. Xavfrrs College's
        case (supra) such a blanket power directly interferes with
        the disciplinary control of the managing body of a
        minority educational institution over its teachers".
                                                                           G
        Thus, on an exhasutive analysis of the authorities of this Court
    and the views taken by it from time to time during the last two
    decades on various aspects, shades and colours, built-in safeguards,
    guarantees, scope and ambit of the fundamental right enshrined in
    Atticles 30(1), the principles and propositions that emerged may
    be summarised as follows : -                                           H
            1. 1hat from the very language of Article 30 (1) it is
               clear that it enshrines a fundamental right of the
    968               SUP'l.EME COURT REPORTS             [l 980l 2 s.c.a.

A            minority institutions to manage and administer their
             educational institutions which is completely in conso-
             nance with the secular nature of our democracy and
             the Directives contained in the Constitution itself.
          2. That although unlike Article 19 the right conferred on
             the minorities is absolute, unfettered and unconditional
B
             but this does not mean that this right gives a free
             licence for maladministration so as to defeat the avowed
             object of the Article, namely, to advance excellence
             and perfection in the field of education.
                                                                             ,..   \


          3. While the State or any other statutory authority has
c            no right to interfere with the internal administration or
             management of the minority institution, the State can
             certainly take regulatory measures to promote the
             efficiency and excellence of educational standards and
             issue guidelines for the purpose of ensuring the se-
             curity of the services of the teachers or other employees
D            of the institution.
          4. At the same time, however, the State or any University
             authority cannot under the cover or garb of adopting
             regulatory measures tend to destroy the administrative
             autonomy of the institution or start interfering willy
E            nilly with the core of the management of the institution
             w as to render the right of the administration of the
             management of the institution concerned nugatory or
             illusory. Such a blatant interference is clearly viola-
             tive of Article 30(1) and would be wholly inapplicable
             to the institution concerned.
F         5. Although Article 30 does not speak of the conditions
             under which the minority educational institution can be
             affiliated to a college or University yet the section by
             its very nature implies that where an affiliation is
             asked for, the University concerned cannot refuse the
             same without sufficient reason or try to impose such
G
             conditions as would completely destroy the autono-
             mous administration of the educational institution.
          6. The induction of an outside authority however high
             it may be either directly or through its nominees in the
             governing body or the managing committee of the
H            minority institution to conduct the affairs of the insti-
             tution would be completely destructive of the funda-
             mental right guaranteed by Article 30(1) of the
    ALL SAINTS HIGH SCHOOL V. GOVT. OF A.P. (Faz.al Ali, J.) 969


         Constitution and would reduce the management to a
         helpless entity having no real say in the matter and
         thus destroy the very personality and individuality of
         the institution which is fully protected by Article 30 of
         the Constitution. Perhaps there may not be any serious
•        objection to the introduction of high authorities like the
                                                                       B
         Vice-Chancellor or his nominee in the admiuistration
         particularly that part of it which deals with the condi-
         tions of service of the teachers yet such authorities
        should not be thrust so as to have a controlling voice in
         the matter and thus over-shadow the powers of the
        managing committee. Where educational institutions             c
        have set up a particular governing body or the manag-
        irig committee in which all the powers vest, it is desir-
        able that such powers should not be curbed or taken
        away uDJ.ess the Government is satisfied that these
        powers are grossly abused and if allowed to continue
        may reduce the efficacy or the usefulness of the insti-        I)
•       tution.

     7. It is, therefore, open to the Government or the Uni-
         versity to frame rules and regulations governing the con-
         ditions of service of teachers in order to secure their
         tenure of service and to appoint a high authority armed       E
         with sufficient guidance to see that the said rules are not
         violated or the members of the staff are not arbitrarily
        treated or innocently victimised. In such a case the pur-
        pose is not to interfere with the internal administration
         or autonomy of the institution, but it is merely to
        improve the excellence and efficiency of the education         F
        because a really good education can be received only 1f
        the tone and temper of the teachers are so framed as tc
        make them teach the students with devotion and dedi-
f       cation and put them above all controversy. But while
       setting up such an authority care must be taken to see          G
        that the said authority is not given blanket and uncana-
        lised a.nd arbitrary powers so as to act at their own sweet
        will ignoring the very spirit and objective of the insti-
        tution. It would be better if the authority concerned
        associates the members of the governing body or its
        nominee in its deliberation so as to instil confidence in
        the founders of the institution or the committees cons-
        tituted by them.
         970               SUPREME COURT REPORTS                  [1980] 2 s.c.R.

A              8. Where a minority institution is affiliated to a University
                  the fact that it is enjoined to adopt the courses of
                  study or the syllabi or the nature of books prescribed
                  and tht1 holding of examination to test the ability of
                  the students of the Institution concerned does not
                  violate the freedom contained in Art. 30 of the Consti-
B                 tution.

               9. While there could be no objection in setting up a high
                  authority to supervise the teaching staff so as to keep a
                  strict vigilance on their work and to ensure the security
                  of tenure for them, but the authority concerned must
                  be provided with proper guidelines under the restricted
                  field which they have to cover. Before coming to any
                  decision which may be binding on the managing com-
                  mittee, the Head of the institution or the senior members
                  of the managing committee must be associated and they
                  should be allowed to have a positive say in the matter.
D
                   In some cases the outside authorities enjoy absolute
                   powers in taking decisions regarding the minority
                   institutions without hearing them and these orders are
                   binding on the institution. Such a course of action is
                   not constitutionally permissible so far as minority insti-
    E               tution is concerned because it directly interferes with
                    the administrative autonomy of the institution. A pro-
                    vision for an appeal or revision against the order of the
                    authority by the aggrieved member of the staff alone or
                    the setting up of an Arbitration Tribunal is also not
                    permissible because Ray, C.J. pointed out in St.
    F               Xaviers case (supra) that such a course of action
                    introduces an arena of litigation and would involve the
                    institution in unending litigation, thus imparing educa-
                     tional efficiency of the institution and create a new field
                     for the teachers and thus draw them out of purely
                     educational atmosphere of the minority institutions for
    ·G               which they had been established. In other words, notl1-
                     ing should be done which would seek to run counter
                      to the intentions of the founders of such imtitutions.
             These are some of the important principles that have been clearly
         laid down by the Supreme Court in the cases discussed above. I shall
    H    now endeavour to examine the provisions of the impugned Act in the
         light of the principles enunciated above. I shall point out hereafter
         that some of the provisions of the Act arc so harsh and arbitrary and
          ALL SAINTS HIGH SCHOOL V. GOVT. OF A.P.         (Faz.al Ali, J.) 971

     confer uncanalised powers on some of the authorities appointed under            A
     the Act so as to amount to a direct and thoughtless interference with
     the management of the institution.
         Coming to the provisions of the Act one significant fea_ture may
     be noticed here. Unlike other' Acts passed by some of the States the
     impugned Act, while it takes within its sweep even the minority insti-
                                                                                     B
     tutions, does not at all lay down any rules, regulations governing the
     conditions -of service of the teachers of the institution, nor does it pro-
      vide any guidelines on the basis of which the rules could be m<.de, nor
      does it contain a mandate directing the minority institution to frame
1"    proper rules and conditions of service of its teachers. Mr. Lal Narayan
      Sinha appearing for the appellants submitted that this is a most serious
      lacnna in the Act which makes it completely violative of Article 30 of
                                                                                     c
      the Constitution and othec provisions read in the light of this lacuna
      also lose their legal sanctity.
           Section 1 ( 3) provides that th~ Act applies to all private educational
      institutions that is to say including minority institutions. In the
      instant case all the appellants are -institutions established by the           D
      Christian community. Sub-section ( 4) of section 1 says that the Act
      shall be deemed to have come into force on the 5th October, 1974.
       Sections 2 is the definition clause which defines various terms used
       in the Act and it is not germane for our purpose to deal with the
       various definitions which is more or less a foIDiality. Learned counsel           E
       appearing for the appellants has challenged the constitutional validity
       of sections 3, 4, 5, 6, 7, 10, 11, 12, 16 and 17 of the Act.
          Section 3(1) of the Act may be extracted thus:--
                "3 ( 1) Subject to any rule that may be made in this
            behalf, no teacher employed in any private educational insti-                F
            tution shall be dismissed removed or reduced in rank nor
            shall his appointment be otherwiSe terminated. except with
            the prior approval of the competent authority.;
                Provided that if any educational management, agency
            or institution contravenes the provisions of this sub-section,
            the teachers affected shall be deemed to be in service".                     G

        A perusal of this section would clearly reveal that while no rules
        regulating the conditions of Service of the teachers employed in private
        Institutions had been made, the power to do so h~s been reserved
         with the Government. The proviso enjoins that any contravention ot
         the provisions would not affect the teachers who would be deemed to             H
         be in service. It is manifest that in the absence of any rules the pro-
         viso would have no application. Even if the proviso applies it wonld
        972               SUPREME COURT REPORTS                [1980] 2 s.c.R.

 A    amount to a serious inroad on the fundamental right of the minority
      institutions to administer or manage their own affairs. Thus s. 3 (1)
      as also the proviso is clearly violative of own affairs Art. 30 i1
      wholly inapplicable to the minority institutions. Serious exception has
      been taken by counsel for the appellants to sub-sections (2), (3) and
      ( 4) of section 3.
B          Section 3(2) may be extracted thus:--
                "3 (2) Where the proposal to dismiss, remove or reduce
            in rank or otherwise terminate the appointment of any teacher
            employed in any private educational institution is communi-
            cated to the competent authority that authority shall, if it
c           is satisfied that there are adequate am:! reasonable grounds
            for such proposal, approve such dismissal, removal, reduc-
            tion in rank or termination of appointment".
      This sub-section seeks to control the power of the institution concern-
      ed in the matter of dismissal, removal or reduction in rank or termi-
      nation of the appointment of any teacher employed by any private
0     educational institution and enjoins that any action taken against the
      teacher will be of no consequence unless it is approved by the
      ~aid competent authority. It will be rather interesting to note that the
      competent authority has not been given any guidelines under
      which it can act. The Solicitor General (Mr. S. N. Kacker) sub-
      mitted that the word 'satisfy' as nsed in the section is a strong term
E     and regulates the powers of the competent authority and the words
       "adequate and reasonable grounds" contain sufficient guidelines to
      exclude exercise of any arbitrary power. I am, however, unable to
      agree with this contention. In the first place, it was the inherent
      and fundamental right of the institution to deal with its employees
F     or teachers and take necessary action against them. If the State
      wanted to regulate the conditions of service of the teachers it should
      have taken care to make proper rules giving sufficient powers to
      the management in the manner in which it was to act. Secondly,
      the induction of an outside authority over the head of the institu-
      tion and making its decision final and binding on the institution was
      a blatant interference with the administrative autonomy of the insti-
      tution. Sub-section (2) does not contain any provision that while
      giving approval the competent anthority was to ascertain the views
      of the governing body or the managing committee so as to know
      their view point and the reason why action has been taken against
      a particular teacher or teachers. Similarly, the words "adequate and
:II   reasonable" are too vague and do not lay down any objective stand-
      ard to judge the discretion which is to be exercised by the compe-
      tent authority whose order Will be binding on the institution. Thirdly,
         ALL SAINTS HIGH SCHOOL V. GOVT. OF A.1'.       (Fazal Ali; J,)   973


    while section 4 gives a right to the aggrieved teacher to file an A
    appeal before the appellate authority, no such right has been given
    to the management to file an appeal against the order of the competent
    authority if it refuses to grant sanction to the order of the managing com-
    mittee of the institution. Thus, in my opinion, sub-section (2) suffers
    from the vice of excessive delegation of powers and confers unde.
    fined, uncanalised, absolute and arbitrary powers to grant or to re- B
    fuse sanction to any action taken by the managing committee and
    almost reduces the institution to a helpless position. Such a provi-


,
r
    sion, therefore, not only interferes with the right of the management
    of the institution but is completely destructive of the right conferred
    on th~ institution under Article 30(1) of the Constitution. Even
    the competent authority mentioned in the sub-section is merely the
    District Educational Officer and it appears from the record that >t
    is not a very high authority such as; the Director of Public Instruction
                                                                                c

    or the Vice-Chancellor which may be presumed to act objectively and
    reasonably. Another material defect in section 3 (2) is that no time
    limit has been fixed by the statute within which the competent authority D
     is to give its approval. If the competent authority either due to over
    work endeavours or some other reason chooses to sit over the matter
    for a pretty long time a stalemate would be created which will seriously
     impair the smooth running of the institution. Indeed if sub-section (2)
     would have been cast in a negative form so as to provide that the sanc-
     tioning authority was bound to give approval to any action taken by the E
     institution against its teachers unless it was, after hearing the teacher
     and the management of the institution, satisfied that the order passed
     by the institution or the action taken by it was in violation of the prin-
     ciples of natural justice, against the statutory provisions of law or tainted
     with factual or legal malice no objection could be taken. If the section
     would have been worded in this manner, then its validity could have F
     been upheld on the ground that it was a sound regulatory measure which
     does not destroy the administrative autonomy of the institution but
     is meant to ensure the security of tenure of the teaching staff of the
     institution. But as this is not so, the validity of the provision cannot .
     be supported. For these reasons, therefore, I am satisfied that sub-
     section (2) is unconstitutional being violative of Article 30(1) of G
     the Constitution and would have no app!i'Cation to any minority insti-
     tution.                                                                     •1

        Sub-section (3) ad' section 3 runs thus:-
                                                                                 H
     "3 (3) (a) No teacher employed in any private educational
               institution shall be placed under suspension, except
     974               SUPREME COURT REPORTS                [1980] 2 S.C.R.

A               when an inquiry into the gross misconduct of such
                teacher is contempleted.
           (b) No such suspension shall remain in force for more
               than a period of two months from the date of sus-
               pension and if such inquiry is not completed within
B               that period, such teacher shall, without prejudice to
               the inquiry, be deemed to have beeu restored as
               teacher.

            Provided that the competent authority may, for reasons
        to be recorded in writing, extend the said period of two
        months, for a further period not exceeding two months, if,
c       in the opinion of such competent authority, the inquiry
        could not be completed within the said period of two
        months for reasons directly attributable to such teacher".

    These provisions deprive the minority institution of the power to
    suspend any teacher unless an inquiry into the gross misconduct of
D   such teacher is contemplated. One could understand if the word
    'misconduct' alone was used in sub-section (3) (a) but as it is quali-
    fied by the adjective gross, it almost destroys the power of suspen-
    sion which the minority institution might possess. Even so, sub-
    section (3)(b) makes it clear that no suspension shall remain in
E   force for a period of more than two months from the date of suspen-
    sion ahd if no inquiry is completed within this period, the teacher
    WOl!ld have to be reinstated. This is indeed a most peculiar provi-
    sion and gives an unqualified right to a teacher in the matter of
    supension. Even a Government servant to whom Article 311 of
    the CrnJstitution or the statutory rules apply does not enjoy such a
F   liberal facility. Moreover, the rules make a mockery of any order
    of suspe'nsion passed pending an inquiry. It is very difficutt to
    predicate how long an inquiry would last and yet to limit the period
    of suspension to two months irrespective of the nature, length and
    the scope of the inquiry to only two months is really to completely
    cnrb the power of suspension.
G
        The proviso to section 3 ( 3) again empowers the competent
    authority to extend the, period of suspension. Thus the cumula-
    tive effect of sub-sections (3) (a), 3(b) and the proviso is to inter-
    fere · with the internal administration of the minority institution
    and curb the power of suspension a'ng thus deprive the institution
H   of the right of or taking any discipli'nary action against the teacher
    to such an extent that the inslit,ution becomes almost a figure-head.
    Such a provision, therefore, cannot be upheld as it is clearly violative
,

        ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.        (Fazal Ali, !.) 975

    of Article 30 ( 1) of the Constitution of India. It is obvious that      A
    whenever an institution suspends a teacher, it is bound to pay sub-
    sistance allowahce and any express provision like sub-section ( 4)
    of section 3 is wholly unnecessary and makes a serious inroad on
    the internal autonomy of the institution. Thus, in our op1mon,
    section 3 in its entirety is ultra vires as being violative of Article
    30(1) of the Constitution and is wholly inapplicable to the appellants   .B
    who are admittedly minority institutions.

       Section 4 of the Act may be quoted thus :-
            " 4. Any teacher employed in       any private    education
        institution-                                                         c
         (a) who is dismissed, removed or reduced in rank            or
             whose appointment is otherwise terminated; or

         (b) whose pay or allowances or any of whose conditions
             or service are altered or interpreted to his disadvant-
             age, by any order;                                              D

         may prefer an appeal against the order to such authority
         or officer as may be prescribed; and different authorities
         or officers _may be prescribed for different classes of private
         educational institutions.
                                                                             E
        Explanation : In this section, the expression 'Order' includes
        any order made on or after the date of the commencement
        of this Act in any disciplinary proceeding which was pend-
        ing on that date".

    This section gives a right of appeal to a teacher who is dismissed,      F
    removed or reduced in rank and whose services are terminated. No
    guidelin•cs arc provided in which manner this pow~r is to be exercis-
    ed nor does it contain any provision which may entitle the minority
    in,titution '.o be heard by the appellate authority. No principles
    or norms are laid down on the basis of which the order passed by
    the institution could be examined by the appellate authority. Even       G
    what would amount to misconduct has not been defined or quali-
    fied in sections 2, 3 or 4. I: is, 1hercfc1'e, difficult to understand
    how the appellate court would exercise this power in deciding
    whether or not the teacher was guilty of misconduct and what is the
    correlation between the degree of misconduct and the appropriate
     punishment which may have been awarded by the institution and           H
     approved by the competent authority. The conferment of such an
    8-138 SC!/80
'
                                                                                     •
         976                SUPREME COURT REPORTS                [1980] 2 s.c . P.

        absolute and unguided power on the appellate authority which if
        passed against the management it cannot even file a civil snit to set
        aside ;his order amounts not only to a direct interference with the
        right e11shrined in Article 30 ( 1) of the Constitution but makes the
        minority institution a limp, lifeless and powerless body incapable of
       effective teaching and/ or attaining excellence in the standards of
  B    education. Such a course of action is bound to hurt ti;~ feelings of
       the founders of the institution. For these reasons, therefore, I am
       of the opinion that scctio'n 4 is also ultra vires as violative of Article
       30 of the Constitution and would, therefore, have no application to
       the minority institutions who are appellants in this case.
 c        Section 5 merely provides for transfer of an appeal pending
      before any authority to the appellate authority and if section 4. falls
      and is inapplicable to the minority institution section 5 also follows
      the same fate and will not apply to the minority institution.
          Section 6 runs thus :-
 D             "6. Where any retrenchment of any teacher employed
           in any private educational institution is rendered necessary
           consequent on any order of the Government relating to
           education or course of instruction or to any other matter,
           such retrenchment may be effected with the prior approval
           of the competent authority".
      This section deals with the contingencies under which the i'nStitu·
      tion may be compelled to retNnch any teacher employed in the
      school. Whatever be the position in other private educational insti-
      tutions so far as the minority institution is concerned, this is purely a
     domestic matter of the institution and cannot be interfered with by
 F any statute. The words "administer educational institutions of their
     choice" clearly indicate that the institution has an absolute right to
   · select teachers, retain them or retrench them at its sweet will accord·
     ing to the norms prescribed by the institution or by the religious
     Order which has founded the ins'itution. As almost all the minority
     institutions in the present case are not receiving any substantial aid
G   from    the Government but have established the institution by their
    own moneys and are bearing all the expenses themselves, it is none
    of the business of any outside authority to interfere with or dictate
    to the institution as to which member of the staff should be retrench-
    ed and which should be retained. The provisions of section 6
    directly interfere with this valuable right of the institution by pro-
H viding that the retrenchment shall be made with the approval of the
    competent au'hority. The power is uncanalised and unguided and
    suffers from the same vices as has been pointed out in the case of
                                                        ;;                           --
         ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Fawl Ali, J.) 9'17


    aection 3 of the Act. For these reasons, therefore, section 6 will          A
'   fiave no application to the institution.

        Section 7 may be extracted thns : -
             "7. The pay and allowances of any teacher employed
         in any private educational institntion shall be paid on or
         before such day of every month, in such manner and by or
                                                                                a1
         through such authority, officer or person, as may be pres-
         cribed".
    This is purely an innocuous provision which is meant for the benefit
    of the institution itself by providing how the salaries of the emplo-
    yees of the institution should be paid and is purely a regulatory           C
    measure which does not at all touch or effect the administrative
    autonomy of the mi'nority institution.
         So far as sections 8 and 9 are concerned, they wonld obviously
    not apply to the minority institutions because these institutions do
    not receive any aid from the Government and are, therefore, not             D
    liable to maintain or furnish accounts to the University authorities or
    to the Goven1111ent, nor the prescribed anthority has any right to ins-
    pect or pass audit of the accounts kept by the institution. For these
    reasons, sections 8 and 9 also do not apply to the minority institu-
    tions.
                                                                                E
        Section 10 relates to the inspection or inquiry in respect or private
    educational institution, its buildings, laboratories etc., or any other
    matter connected with the institution which may be necessary. Sub-
    sections (2), (3) and (4) of section 10 provide the mode in which
    the inspection or inquiry is· to be made a'nd a report submitted to
    the concerned authority. These provisions are also in the nature of         F
    sound regulatory measures and appear to be in the larger interest of
    the functioning of the institution itself and, therefore, do not offend
    Article 30 of the Constitution.

       Section 11 runs thus : -
            "11. Every educational agency shall, within such time               G
        or within such extended time as may be fixed by the compe-
        tent authority in this behalf, furnish to the competent autho-
        rity such returns statistics and other information as the
        competent authority may, from time to time require."
    This section also contains purely a regulatory measure and is in the        H
    best interest of the institution and cannot be said to violate Article
    30( 1) of the Constitution.
        978                SUPREME COURT REPORTS                ll980] 2 S.C.R.

1A         Section 12 and 13 relate to penalties for contravention of the
      provisions of the Act which have been held by me to be violative
      of Article 30 and, therefore, inapplicable to the appellants because
      that would amol!nt to destroying the very foundation and personality of
      the minority institution. These sections are also not applicable to
      the minority institl!tion except n respect of provisions of the Act
 B    which have been upheld by me.

           Section 15 contains the revisional power and provides that the
       Government may delegate its powers, or make rules regarding the
       exercise of such a power. I have already pointed out that the setting
       up of a competent authority to sanction or approve the order passed
 c     by the institution in respect of a member of the staff where sufficient
      guidelines and grounds for approval have been prescribed is purely
      a regulatory measure and does not attract Art. 30 of the Constitu-
      tion. The conferment of a right of revision against any order of the
      minority institution under the Rules framed which provide sufficient
       guidelines and allow the minority institutions an opportunity to be
,D
      heard, is an innocuous provision and does not impinge on the auto-
      nomy of the minority imtitution. I am, therefore, of opinion that
      such a provision is in the best interests of the institution and does
      not in any way harm the personality of the institution or destroy the
      image so as to interfere with its autonomous functioning. I, there-
 E    fore, hold that section 15 is constitutionally valid and I might hasten
      to add that its constitutionality was not challenged before this
      Court.

           'section 16 bars a civil court from deciding the questions which
      fall under this Act and section 17 contains an indemnity clause. As I
 F    have held that almost all the operative and important provisions of
      this Act are ultra vires, these sections also would have no application
      to the minority institution. In fact, section 16 suffers from a serious
      defect, viz., that if it was held by me that the provision regarding
      appeal to the appellate authority was valid then section 16 completely
       bars the right of the management to file a suit to challenge the validity
 G    of the order of the appellate authority. To this extent, therefore, this
       Section makes a serious inroad on the fundamental right of the mino-
      rity institution and must be held to be inapplicable to the minority
       institution.

          I have gone through the judgment of the High Court which does
 11   not apear to have comidered the various aspects and features of the
      matter set out by me, 'nor has it properly applied the propositions
      summarised by me as culled out from the various decisions of this
          ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.        (Kailasam, !.) 979

    Court starting from 1959 (Re: Kerala Education Bill's case) (supra)          A
    to 1979 (Lily Kurian's case) (supra).
        For these reasons, I hold the sections 3 ( alongwith its sub-sec-
    tion), 4, 5, 6, 8, 9, 12, 13, 16 and 17 are violative of Article 30
    of the Constitution and have no application to the appellants which
•   are minority instilutions and which fall withih the protection gnarante-     B
    ·ed by the Constitution under Article 30. I accordingly allow all
    these appeals, set aside the order of the High Court and quash all
    the directions which may have been issned by the Government or
    other authorities under the Act to the appeCants except such steps
    as are taken under those provisions of the Act which have been up-
    held by me, viz., sectiohs 7, JO, 11, 14 and 15. In the peculiar             C
    circumstances of the case, I leave the parties to bear their own costs.
        KAILASAM, J. These appeals are by special leave against the
    judgment of the High Court of Judicature at Andhra Pradesh.
         Several writ petitions questioning the validity of certain provisions
    of the Andhra Pradesh Recognised Private Educational Institutions            D
    Control Act, 1975 (hereinafter called the Act) were heard. These
    writ petitions were disposed of by a common judgment by the Andhra
    Pradesh High Court. Aggrieved by the judgment of the High Court
    holding that the impugned sections of the Act is intra vires of the Cons-
    titution, not void and operative on schools and institutions of the mino-
                                                                                 E
    rities, the present appeals by special leave have been preferred.

       The purpose of the legislation is set out in the Statement of Objects
    and Reasons to the Bill. It is statod : -
             "Of late, several instances have come to the notice of the
         State Government regarding the various irregularities com-              F
         mitted by the managements of private educational institutions
         in matters relatir.g to suspension, dismissal, removal or other-
         wise termination, of members of the teaching staff on flimsy
         grounds without framing charges and without giving an oppor-
         tunity to explain. The said managements are .also flouting
         the orders or instructions of Director of Pubiic Instruction or         G
         the Universities or the Government in respect of such matters.
         Having regard to the above circumstances, the Government
         have decided to regulate the service conditions of teachers
         employed in the private educational institutions to ensure
         security of service of the said teachers, and also to exercise
         certain control on such institutions in the matter of their             H
         accounts, etc., by undertaking suitable legislation in this
         regard."
    980                SUPREME cot.RT REPORTS               [1980] 2 s.c.R..

A      The salient features of ·the Bill are given as under : -
           (i) to safeguard the service cohditions of teaching staff
               in the recognised private educational institutions in
               the matter of suspension, removal, dismissal and
               retrenchment;
B          (ii) to make it compulsory for the private managements to
                obtain the prior permission of the competent autho-
                rity before a teacher is visited with any of the afore-
                said ma jar penalties;
          (iii) to provide that the suspension of a teacher pending
c               enquiry, should be for a period of two months only
                after which the teacher should be deemed to have
                been restored to duty, unless the competent autho-
                rity extends the suspension period by another two
                months; thereby making it specific that in any case
                the teachers shall not be under suspension for more
D               than four months;
          (iv) to provide that no teacher should be retrenched with-
               out the prior permission of the competent authority;
           (v) to provide for payment of salaries to teachers on the
               specified day of the month in such manner and by or
                                                                               .
E              through such authorities, officer or persons, as may
               be laid down in the rules;
           (vi) to provide for conducting enquiries into the affairs of
                the recognised private educational institutions and
                also for issue of suitable directions to the manage-
F               ments of such institutions based on such enquiry,
                which shall be binding on the monagcments.
        The writ petitions challenged the validity of sections 3 to 7 of the
    Act. Sections 3 to 7 occur in Chapter II relating to terms and condi-
    tions of service of. teachers. It is necessary to set out the impugned
G   sections ;.....
       "Dis1nissal, ren1oval or reduction in rank or suspension of teachers.
    employed in private educational institutions.
        3(1). Subject to any rule that may be made in this behalf, no
    teacher employed in any private educational institution shall be dis-
R   missed, removed or reduced in rank nor shall bis appointment be other-
    wise terminated, except with the prior approval of the comDetent
    authority.
                ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.         (Kailasam, J.) 981

              Provided that if any educational management, agency or institution
          contravenes the provisions of this sub-section, the teachers affected
          shall be deemed to be in service.
              (2) Where the proposal to dismiss, remove or reduce in rank or
          otherwise terminate the appointment of any teacher employed in any
      •   private educational institution is communicated to the competent
          authority, that authority shall, if it· is satisfied that there are adequate   B
          and reasonable grounds for such proposal, approve such dismissal,
          removal, reduction in rank or termination of appointment.
              (3a) No teacher employed in any private educational institution
          shall be placed under suspension, except when an inquiry into the. gross
          misconduct of such teacher is contemplated.                                    c
              (b) No such suspension shall remain in force for more than a period
          of two months from the date of suspension and if such inquiry is not
          completed within that period, such teacher shall, without prejudice to
          the inquiry, be deemed to have been restored as teacher.
              Provided that the competent authority may, for reasons to be               D
          recorded in writing, extend the said period of two months for a further
          period not exceeding two months, if, in the opinion of such competent
          authority, the inquiry could not be completed within the said period of
          two months for reasons directly attributable to such teacher.
               ( 4) Every such teacher as is placed under suspension under snb-
          section (3) shall be paid subsistence allowance at such rates as may be        E
          prescribed during the period of his suspension.
              Appeal against orders of punishment imposed on teachers employ-
          ed in private educational institutions.
              4. Any teacher employed in any private educational institution-
                  ( a) who is dismissed, removed or rednced in rank or whose             F
                       appoinment is otherwise terminated; or
                 (b) whose pay or allowances or any of whose conditions of
').
                     service are altered or interpreted to his disadvantage, by
                     any order;
          may prefer an appeal against the- order to such authority or officer as        G
          may be prescribed; and different auth_9Jities or officers may be pres-
          cribed for different classes of private educational institutions.
             Explanation-In this section, the expression 'order' includes any
          order made on or after the date of the commencement of this Act in
          any disciplinary proceeding which was pending on that date.
                                                                                         H
              Special provision regarding appeal in certain      past   disciplinary
          cases.
     982                SUPREME COURT REPORTS                [1980] 2 s.c.R.

A       5. (I) If, before the date of the commencement of this Act, any
    teacher employed in any private educational institution has been dis-
    missed or removed or reduced in rank or his appointment has been
    otherwise terminated and any appeal preferred before that date-
        ( a) by him against such dismissal or removal or reduction in rank
B   or termination; or                                                           •
        (b) by him or the educational agency against any order made
    before that date in the appeal referred to in clause (a); is pending on
    ihat date, such appeal shall stand transferred to the appellate authority
    prescribed under section 4.
         (2) If any such appeal as is preferred in sub-section (1) has been
c   disposed of before the date of the commencement of this Act, the order
    made in any such appeal shall be deemed to be an order made under
    this Act and shall have effect accordingly.
        Retrenchment of teachers.
        6. Where any retrenchment of any teacher employed in private
D   educational institution is rendered necessary consequent on any order
    of the Government relating to education or course of instruction or to
    any other matter, such retrenchment may be affected with the prior
    approval of the competent authority.
        Pay and allowances of teachers employed in private educational
E   institution to be paid in the prescribed manner.
        7. The pay and allowances of any teacher employed in any private
    educational institution shall be paid on or before such day of every
    month, in such mauuer and by or through such authority, officer or
    person, as may be prescribed."
F   The object of the legislation in general and the impugned provisions in
    particnlar is to regulate the service conditions of the teachers and to
    ensure their security of service.
        The main attack on the validity ot the impugned sections is that
    the provisions are violative of the rights conferred on the minorities to
    establish and administer their institutions under Arts. 29 and 30 of the
G   Constitution. The plea is that their right to administer their institu-
    tions is taken away by imposing unjustified and complete control with
    the authorities specified in the Act.
         Before considering the provisions of each of the sections impugned
    it is necessary to refer to the nature of the right conferred on the mino-
H   rities. The relevant article is Art. 30 of the Constitution and it is
    necessary to refer to the Art. and the important decisions rendered by
    this Court under the Article.
                                                                                 '
              Al.1 SAINTS HIGH SCHOOL v. GOVT. OF A.P.        (Kailasam, !.) 9S3

            "Right of minorities to establish and' administer educational insti-      A
       tutions.
            Art. 30. (I) All minorities, whether based on religion or language,
       ·shall have the right to establish and administer educational institutions
        of their choice .
 •                                                                                    B
           (2) The State shall not, in granting aid to educational institutions,
       discriminate against any educational institution on the ground that it is
       under the management of a minority, whether based on religion or
       language."

            The educational institutions established and administered by the
       minorities in the exercise of the rights conferred under Art. 30 may be        c
       classified into 3 categories (1) those which do not seek either aid or
       recognition from the State or affiliation from the University; (2) those
       which seek aid and (3) those that seek either recognition or affiliation
       but not aid. We are not concerned with institutions which do not seek
       either aid or recognit'on from the State or affiliation from the Univer-
                                                                                      D
       sity. The institutions which require aid may again be classified into
>      two classes namely those which are by Constitution expressly made
       eligible for receiving grants and (2) which are not entitled to any grant
       by virtue of the express provisions of the Constitution. Here again
       we are not concerned with the first category. We are only concerned
       with the institutions which are no: entitled to any grant by any express       E
       provision in the Constitution.

            Articles 28(1), 29(2) and 30(2) deal v1ith educational institutions
        receiving aid out of State Funds. Certain restrictions are placed and
       obligations cast on institutions recognised by the State or receiving aid
~ ..    Art. 28(3) provides "No person attending any educational institutional
                                                                                      F
       recognised by the State or receiving aid out of State funds shall be
       required to take part in any religious instrucfons that may be imparted
       in such institutions or to attend any religious worship that may be
       conducted in such institution or in any premises attached thereto unless
       such person or, if such person is a minor. his guardian has given his
       consent thereto. Under the sub-article a peroan attend:ng an institution       G
       recognised by the State or receiving aid cannot be compelled by the
       institution to take part in any religious instruction or to attend relig'ous
       worship without his consent. Art. 29(2) provides that no citizen shall
       be denied admission into any educational institution maintained by the
       State or receiving aid out of State funds on grounds only of religion,
       race, caste, language or any of them. Under Art. 29(2) in institu-             H
       tions receiving aid, a citizen is entitled to seek admission and the
       institutions is forbidden to deny admission to a citizen on grounds of
      984                  SUPREME COURT REPORTS                [1980] 2 S.C.R.

A    religion, race, caste or language. While Art. 28(3) and 29(2) impose
     certain restrictions on institutions receiving aid, Art. 30(2) forbids the
     State from discriminating against any educational institution in granting
     aid on the ground that it is under the management of a minority,
     whether based on religion or language. The Constitution does not con-
     fer any right on the institution to receive any aid. It however forbids
B    the State in granting aid to educational institutions from discriminating
     an educational institution on the ground that it is under the manage-
     ment of a minority whether based on religion or language. This would          •
     imply that the State has right to grant or not to grant aid. It may be
     that the State is not in a position to grant aid to education institutions.
     In such circumstances nobody can force the State to grant aid. But if
c     the State grants aid to educational institutions there should not be any
     discrimination. It is open to the State to prescribe relevant conditions
     and insist on their being fulfilled before any institution becomes entitled
      to aid. No institution which fails to1 conform to the requirements thus
      validly prescribed would be entitled to any aid. Educational institutions
      receiving aid whether they are' managed and administered by minorities
D
      or not have to conform to the requirements prescribed by the State in
      order to enable the institutions to receive aid. The requirements pres-
      cribed shall not be discriminatory on the ground that it is under the
      management of a minority whether based on religion or language. The
       character of the minority institution should not also be destroyed. The
E     right of the State to ensure that its funds are properly spent cannot be
       denied.
         In Re: Kera/a Education Bill,(') at p. 1062 Chief Justice Das
     ruled that "the minority cannot surely ask for aid or recognition for an
     educational institution run by them in unhealthy surroundings, without
     any competent teachers possessing any semblance of qualification, and
F
     which does not maintain even a fair standard of teaching or which
     teaches matters subversive of the welfare of the scholars."
         The learned Chief Justice proceeded to observe :---
                "It stands to reason, then, that the constitutional right to
            administer an educational institution of their choice docs not
G           necessarily milita•e against the claim of the State to insist
            that in order to grant aid the State may prescribe reasonable
            regulations to ensure the excellence of the institution to be
            aided."
     The scope of the reasonable regulations that can be imposed is clearly
ff   explained by the question framed by the Attorney General and the
     answer furnished by the Court at p. 1063. The State cannot say "I
         !l) !l959] S.C.R. 995.
               ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.      (Kailasam, J.)   9g5,


         have money and I shall not give you any aid unless you surrender to         A.
         me your right of administration" (emphasis supplied) The Court held
         that regulations prescribed under the various clauses except sub-clause
         ( 5) of CL 3 which made the educational institutions subject to clauses
         14 and 15, valid .
    •         The Kerala Education Bill which was referred to this Court for the
          purpose of opinion contained several clauses. A summary of the
    ,     clauses is given in the judgment from pages 1023 to 1030 of the Reports,
         Clauses 6, 7, 9, 10, 11, 12, 14, 15 and 20 relate to the management of
          aided schools. The Court expressed its view that the provisions in
         clauses 7, 10, 11(1), 12(1), (2), (3) and (5) may easily be regarded
          as reasonable regulations or conditions for the grant of aid- (Vide p.     c
          1064) . Clause 7 is extracted at p. 1025. It confers powers enumerated
         in the clause on the managers. Clause 10 requires the Government to
         prescribe the qualifications to be possessed by persons for appointment
         as teachers in Government Schools and in private schools which by the
         definition means aided or recognised schools. The State Public Service
         Commission is empowered to select candidates for appointment as
         teachers in Government and aided schools according to the procedure
         laid down in cl. 11. Clause 12 prescribes the conditions of service of
         the teachers of aided schools obviously intended to afford some security
         of tenure to the teachers of aided schools. It provides that the scales
         of pay applicable to the teachers of Government schools shall apply
         to all the teachers of aided schools whether appointed before or after      E
         the commencement of this clause. Rules applicable to the teachers
         of the Government schools arc also to apply to certain teachers of aided
         schools as mentioned in sub-cl, (2). Sub-cl. (4) provided that no
         teachers of an aided school shall be dismissed, removed or reduced in
         rank or suspended by the Manager without the previous sanction of           F
         the authorised oflker. With regard to sub-cl. l2(1) (2) and (3) which
        related to conditio.ns of service and security of tenure, the Court held
        that the purpose may easily be regarded as reasonable regulations or
        conditions for grant of the aid. It was submitted that claus,s 9, 11 (2)
        and 12 ( 4) went beyond the permissible limit as by taking over the
         collections of fees, etc. and by undertaking to pay the salaries of the     G
•       teachers and other staff the Government is in reality confiscating the
        -;chool fund and under cl. 11 the power of management is taken away
        by providing that the appointment of a teacher should be out of the
        panel to be prepared by the Public Service Commission. Similarly it
        was submitted that by requiring previous sanction by the authorised offi-
        cer before dismissal, removal or reduction in rank of a teacher, the         n
        right to administer was taken away. Chief Justice Das observed at p.
        1064 of the Reports : "These are no doubt serious inroads on the right
    '
     9SS                 SUPREME COURT REPORTS                 [1980] 2 S.C'. R . .

    of administration and appear perilonsly near violating that right. Bm
    considering that those provisions arc applicable to all educational
    institutions and that the impugned parts of els. 9, II and 12 are designed
    to give protection and security to the ill paid teachers who arc engaged
    in rendering service to the nation and protect the backward classes, we
    are prepared, as .at present advised, to treat these clauses 9, 11 (2) and
B   12(4) as permissible regulations which the State may impose on the
    minorities as a condition for granting aid to the'r educational institu-
    tions." It is clear that so far as aided institutions are concerned con-
    ditions similar to those that are mentioned can be validly imposed on
    the institutions. The only prohibition is that the conditions should not
    be of such a nature as to deprive the character of the minority institu-
c   tions in their exercise of the rights conferred on them as minority
    institutions. So long as there are rules for the purpose of maintaining
    the excellence of educational institutions and not discriminating against
    the minority educational institutions they will be valic!.

        The decisions rendered (ubsequent to the Kcrala Education Bill
D
    case may now be referred to see how for the views exprcss·od had been
                                                                                      <
    modified. In Rev. Sidhajbhai Sabhai & Ors. v. State of Bombay &
    A nr. CJ a Bench of 6 Judges held that the order of the Government
    directing that 80% of seats in the training coH ..~gcs should be re~crved for
    Government nominee with a threat that if the order was disobeyed,
E   grant and recognition would be withdrawn, was invalid. The Court
    !aid down that reasonable restrictions in !lie interest of the cffici<':ncy
    of instruction, discipline, health, sanitation and the like may be imposed
    as those regulations will not be restrictions on the substance of the right
    guaranteed, for they secured the proper functioning of the institution
    in educational matters. The Court held that "if every order which
F   while maintaining the formal character of a minority institution destroys
    the power of administration is held justifiable because it is in !he public
    or national interest, though not in its interest as an educational institu-
    tions, the right guaranteed by Art. 30 (1) will be but a "teasing illu-
    sion", a promise of unreality. Regulations which may lawfully be
    imposed either by legislative or executive action as a condition of
G   receiving grant or of recognition must be directed to making the institu-
    tion while retaining its character as a minority institution effective as
    an educational institution- The dual test prescribed is the test of
    reasonableness and the test that is regulat:ve of the educational character
    of the institution and is conducive to making the institution an effective
    vehicle of the education of the minority community or the persons who
H   resort to it. The requirements of reservation of 80% of the seats will
            ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.      (Kailasam, !.)    9Si

      destroy the right to management as a minority institution and as such
      cannot be imposed even in the case of institutions receiving aid.
      Conditions of such a nature that would result in surrender of the funda-
      mental right to administer cannot be imposed. After referring to the
      decision in the Kerala Educational Bill case, the Court observed that
      it did not decide that a regulation would be deemed unreasonable only
      if it was totally destructive of the right of the minority to administer
      the educational institution. This view was affirmed in the St. Xavier's



,
      College case [1975] 1 SCR 173. The test laid down requires that
      the regulation must be for regulating the educational institution for the
r'    minority committee as well other persons who resort to it. (emphasis
      supplied)
                                                                                      c
            The case of Rev. Father W. Proost and Ors. v. The State of Bihm
      and Ors. CJ relates to affiliation. This Court was considering tbe vali-
      dity of s. 48-A of the Bihar University Act. Under s. 48-A a Un;versity
      Service Commission for affiliated Colleges was established. It was
      provided amongst others that subject to the approval of the Unhcrsity,
      appointments, dismissals, removals, termination of service or reduction         D
      in rank of teachers of an affiliated college not belonging to the State
      Government shall be made by the governing body of the Collci;c on
      the recommendation of the Commission. While the petition was pend-
      ing before this Court the Governor of Bihar promulgated an Ordinllilce
       by inserting Sec. 48-B which exempted Colleges established and admi-
                                                                                      E
       nistered by the minorities from the operation of the provisions of clauses
       (6), (7), (8), (9), (10) and (11) of s. 48-A. After the introduc-
       tion of s. 48-B the petitioners before this Court claimed protection
       under S. 48-B and submitted that affiliated Colleges established by
       minorities arc exempt from the operation of the impugned provisions
       of s. 48-A. It may be noted that nnder s. 48-B the governing body              F
       of an affifattcd college established by a minority shall be entitled to
       make appointments, dismissals, removals, termination of service or
        reduction in rank of teachers or take other disciplinary action subject
        only to the approval of the Commission and the Syndicate of the f!ui-
        versity. The petitioners did not challenge the provisions which oro-
        vided that appointments, dismissals, removals, termination 0f senice          G
        and reduction in rank of teache.rs or other disciplinary measures will
        be subject to the approval of the Commission and the Syndicate of the
        University. What was objected to was the provisions under s. 48-A
        which esrablished an University Service Commission on whose
         recommendations alone appointments, dismissals, removals, termma-
         tions of service or reduction in rank of teachers of an affiliated college   H

            (I) [1969] 2 S.C.R. 73 .
.'1
            988                SUPREME COURT REPORTS                ! 1980] 2 S.C.H.

    A     can be effected. A provision requiring prior approval uf the Commis;
          sion or Syndicate was not challenged as objectionable'.

              In State of Kera/a v. Very Rev. Mother Provincial('), the consti-
          tutional validity of certain provisions were challenged on the grounJ
          that they interferred with the rights of the minority institutions. The
          Kerala University Act, 1979 was passed to re-organise the University
          of Kerala with a view to establishing a teaching, residential and affiliat-
          ing University for the Southern Districts of the State of Kerala. Ss. 4d
          and 49 dealt with the Governing Bodies of private colleges. The
          Edncational Agency of a private College was required to set up a
         Governing Body for a private College or a managing council for
         private-colleges under one corporate management. The section pro-
         vided for the composition of two bodies so as to include Principals and
         Managers of private colleges, nominees of the University and Govern-
         ment as well as elected representatives of teachers. Sub-s. (2) pro-
                                                                                        -
         vided that the new bodies would be having corporate perpetual suc-
         cession and the members would bold ofti.ce for four years. Sub-section
D
         cast a duty on the new governing body or the managing council to
        administer the private college or colleges in accordance with the pro-
        visions of the Act. The provisions of s. 53, sub-ss. (1), (2), (3) and
         (9) conferred on the Syndicate of the University power to veto the
        decision of the Governing Council. A right of appeal was provided
E       for any person aggrieved. Section 56 conferred ultimate power on
        the University and the Syndicate in disciplinary matters in respect of
        teachers. This Court held that sub-s. (2) and ( 4) of Ss. 48 and 49
        as ultra vires. The Court agreed that the High Court was right in
        declaring that sub-ss. (1) and (2), (9) and of s. 53, sub-ss. (2) and
        (4) of s. 56 as ultra vires.
F
             In D.A.V. College etc. v. State of Punjab & Ors(') the validity
        of cl. 18 which required that non-govermnental Colleges shall comply
        with the requirements laid down in the ordinances governing service
        of teachers in non-govermnental Colleges as may be framed by the
        University was considered. Clause 18 so far as it is applicable to the
        minority institutions empowered the University to prescnbe by regula·
        tion governing the service of teachers which is enacted in the larger
        interest of the institution to ensure their efficiency and excellance. The
        Court held : "It may for instance issue an ordinance in respect of age
        of superannuation or prescribe minimum qualifica:: 1ns for teachers to
H       be employed by such institutions either generally or in particular sub-
           (!) [1971] 1 S.C.R. 734.
           (2) [1971] Supp. S.C.R. 688.
              AJ,L SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Kailasam, 1.)         989


        jects. Uniformity in the conditions of service and conduct of teuchers          A
        in all non-Government Colleges would make for harmony and avoid
        frustration."
            A reading of the decisions referred to above make it clear that
        while the right to establish and administer a minority institution can-
•       not be interferred with restrictions, by way of regulations for the             B
        purpose of maintaining the educational standards of the institution can
        be validly imposed. For maintaining the educational standard of the
        institution as a whole it is necessary to ensure that it is properly staffed.
    r   Conditions imposing the minimum qualifications of the staff, their pay
        and other benefits, their service conditions, the imposition of punish-
A       ment will all be covered and regulations of such a nature have been             c
I
        held to be valid. In the case of institutions that receive aid it is the
        duty of the Government who grants aid to see that the funds are pro-
        perly utilised. As the Government pays for the staff it is their
        bounden duty to see that well-qualified persons are selected their pay
        and other emoluments are guaranteed and service conditions secured.             D
         So far as the institutions receiving aid are concerned if the regulations
         are made for the purpose of safeguarding the rights of the staff the
         validity cannot be questioned as long as the regulations do not discrimi-
         nate the minority institution on the ground of religion or language.
             The minority institutions have no fundamental right to demand re-
        cognition by the State or affiliation by the University but as recogni-         E
        tior: and affiliation is necessary for the effective exercise of the funda-
        mental right of minorities to establish and administer their institu-
        tions, they are entitled to recognition and affiliation if reasonable con-
        ditions that are imposed by the Government or the University relevant
        for the purpose of granting recognition or affiliation are complied with.       F
         Before granting recognition or affiliation it is necessary that the con-
         cerned Government or the University is satisfied that the institution
         keeps up with the required minimum standard. As has been held by
         Das CJ., ''Right to administer cannot obviously inclnde the right to
         mal-administer" and in the words of Shah, J. "The right is subject to
        reasonable restrictions in the interest of efficiency of instruction, discip-       G
         line, health, sanitation and the like." Jnstice Jaganmohan Reddy has
'        made it clear in upholding cl. 18 of the Guru Nanak University, Amrit-
         sar Act, 1961 that regulations relating to the recruitment and service
         conditions of the teachers of the institution are valid.
             The decision of 9 Judges' Bench in The Ahmedabad St. Xaviers                   H
         College Society & Anr. etc. v. State of Gujarat & Anr. (') may now
             '(I) [1975] l S.C.R. 173.
      990                 SUPREME COUi<T REPORT':           [ 1980] ~   J.C.R.


A  be considered. AU the 9 Judges were unanimous th11t the right to aid
   or recognition was not a fundamental right but that aid or recognition
   cannot be offered on conditions which would involve a surrender of
   those rights. But the rights of recognition and affiliation are subject
   to regulations which are necessary for maintenance of the educational
   institutions. In the St. Xaviers College case (supra), S. 33A(l)(a)
B was challenged. It provided that every college was to be under the
   management of a governing body which must include a representative
   of the University and representatives of teachers, non-teaching staff and     •
   students of the college. Eight of the nine Judges held that S. 33A
    (1) (a) violated Art. 30(1) and could not be applied to minority
   institutions. This Court in a subsequent decision in G.F. College Shaha-
c jahanpur v. University of Agra and Anr.C) held that it would not be
    unconstitutional to direct that the Principal and the Senior Teacher
    appointed by the Governing body itself be tnken into the manag·ng
    committee. The Court in St. Xavier's College case also considered
    the validity of S. 51-A(l)(a), (2) (a) and 51-A(l) (b). Section
D 51-A(l) (a) and (2) (a) provided that no member of the teaching,
    other academic and non-teaching staff was to be dismissed, removed
    or reduced in mnk except after an inquiry in which he had been in-
    formed of the charges against him and bad been given a reasonable
    opportunity of being beard and making a representation on the penalty
    proposed to be inflicted. No termination of service not amounting to
E dismissal or removal was to be V'a!id unless such member had been
    given a reasonable opportunity of showing cause against the proposed
    termination. The two clauses were held to be valirl, as being rea-
    sonable. However, the Court held that S. 51-A(l) (a) and (2) (b)
     as violative of Art. 30(1). Section 51-A(l) (b) provided that the
     penalty to be inflicted on him must be approved by the Vice-Ch11ncellor
F    or any other officer of the University authorised by the Vice-Chancellor
     ln this behalf. Similarly, S. 51-A(2) (b) provided that "such ter-
     mination is approved by the Vice-Chancellor or any officer of the Uni-
     versity authorised by the Vice-Chancellor in this behalf." Section          ..I'

     51-A(l) (b) required the approval of the Vice-Chancellor, or other
G
     officer authorised by him. for the penalty to be inflicted under sub-s.
     1 (a), and S. 51-A(2)(h) required similar approval for the termina-             '
     tion of service under sub-s. (2) (al. The Court also held that S. 52-A
     which required that any dispute between the governing body and anv
     member of the teaching, other academic and non-teaching s'aff of an
     affiliated college, connected with the terms of service of such member.
 H must be referred to a Tribunal of Arbitration consist;ng of O"e mem-
     [;c:· each appointed by the governing body acd hv the member of the
            ·-   -   -.
         (I) (19751 3 S C.R. 810.
              ALL SAINTS HIGH SCHOOL v. GOVr. OF A.P. (Kwlusam, !.)          991


        staff and an umpire appointed by the Vice-Chancellor was not V'alid.         A
        Seven out of 9 Judges held that S. 52-A violated Art. 30(1) and coulc:\
        not be applied to minority institution.
         · Minority institutions seeking affiliation will have to follow statutory
        measures intended to regulate the conduct of the educational institu-
•       tion. Ray, C.J. p. 193 held:-                                                B
                  ·'With regard to affiliation a minority institution must
             follow the statutory measures regulating educational standards
             and efficiency the prescribed courses of study, cours@s of ins-
             tructions and the principles regarding the qualification of
             teachers, educational qualifications for entry of students into
             educational institutions etc. When a minority institution               c
             applies to a University to be affiliated, it expresses its choice
             to participate in the system of general education and courses
             of instruction prescribed by that University*''"'*'''' There-
             fore. the meamres which will regulate the courses of study.
             the qualifications and appointment of teachers, the conditions
                                                                                     D
             of employment of teachers,*******''"'* are all comprised
             in matters germane to affiliation of minority institutions.
             These regulatory measures for affiliation are for uniformity,
             efficiency and excellence in educational courses and do not
             violate any fundamental l'ight of the minority institutions
             under Art. 30" (emphasis supplied)                                      E
        Ray C.J. held thats. 51A(l) (b) and S. 51A(2) (b) i' not applicable
        to minority institutions as they "cannot be said to be pern1issive regu-
        latory mc~surcs inasmuch as it confers arbitrary power on the Vice-
        Chanccllor to take away the right of administration of the minority
        institutions."
                                                                                     F
            Agreeing with the view of the Chief J us ti cc, regarding his con-
        clusio~ about S. 5!A(l)(a) and (2)(b), Khanna, J. at p. 243 ob-
        served :--
                    "Although disciplinary control over the teachers of a
                minority educational institution would be with the governing
                                                                                     G
    •           council, regulations in niy opinion, can be nzade for ensuring
                proper conditions of service of the teachers and for securing
                a fair procedure in the matter of disciplinary action against
        .. · -· the teachers. Such provisions which are calculated to safe~
                guard the interest of teachers would result in security of
                tenure and thus inevitably attract competent persons for             H
                the posts of teachers. * • * • * Regulations made for this
        9-138 SCJ/80
           992               SUPREt1E COlJf-..T REPO~T3          [1980] 2 ~.•:·.n .•
                                                                   '
    A         purpose should be considered to be in thC' interests of mino-
                                                                                  ;
              rity educational institutions and as such they would not
              violate Art. 30(1) ". (emphasis supplied)
     Regarding S. 5 lA, the learned Judge while holding that prov1s10ns
     under CL (a) of sub-ss. (1) & (2) of s. SlA which make provision
 B for giving a reasonable opportunity of showing cause against a penalty
     to be proposed on a member of the staff would be valid. Cl. (b) of
     the sub-s. which gives a power to the Vice-Chancellor and officer of
     the University authorised by him to veto the action of the managing
     body of an educational institution in awarding punishment to a mem-
    ber of the staff, interferes with the disciplinary control of the managing
c body over its teachers. He was of the view that the power conferred
    on the Vice-Chancellor or other officer is a blanket power and no guide-
    lines were laid down for the exercise of that power and it is not pro-
    vided that the approval is to be withheld only in case the dismissal,
    removal, reduction in rank or termination of service is roala fide by
   way of victimisation or other similar cause. The conferment of such
D blanket power on the Vice-Chancellor or other officers authorised for
   vetoing the disciplinary action of the managing body of a educational
   institutional made scrious inroads on the right of the managing body to
   administer an educational institution.
           Mathew, J. in dealing with S. 51A(l) (a) and (b) at p. 273 ob-
E       served:-
                The exact scope of the power of the Vice-Chancellor or
            of the officer of the University authorised by him in this sub-
            section is not clear. If the purpose of the approval is to see
           that the provisions of sub-section 51A(l)(a) are complied
F          with, there can possibly be no objection in lodging the
           power of approval even in nominee of the Vice-Chancellor.
           But an micanalised power without any guidline to withhold
           approval would be a direct abridgement of the right of the
           management to dismiss or remove a teacher or inflict any
           other penalty after conducting an enquiry." (emphasis sup-
G
           plied)
          The learned Judge proceeded to observe :
                "Of course it is open to the State in the exercise of its
           regulatory power to require that before the services of a
H          teacher are terminated, he should be given oppor-
           tuility of being heard in his defence. But to require
           that .for terminating the services of a teacher after
         ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Kailasam, J.)         9 :) 3


        an enquiry has been conducted, the management                            A
        should have the approval of an outside agency like
        the Vice-Chancellor or of his nominee would be an ab-
        ridgement of its right to administer the educational institution.
        No guidelines are provided by the legislature to the Vice-
        Chancellor for the exercise of his power. The fact that the
•       power can be delegated by the Vice-Chancellor to any officer             B,
        of the university means that any petty officer to whom the
        power is delegated can exercise a general power of veto.
        There is no obligation under the sub-sections l(b) and 2(b)
        that the Vice-Chancellor or his nominee should give any
        reason for disapproval. As we said a blanket power with-                 c
        out any guideline to disapprove the action of the management
        would certainly encroach upon the right of the management
        to dismiss or terruinate the services of teacher after an en-
        quiry".
        The extracts from the judgments of Ray, J. Khanna, J. and
    Mathew, J. show that regulations can be made for ensuring the pro-           D
    per conditions of service of the teachers and for securing fair prn-
    cedure in the matter of disciplinary action against them. Prcscribirg
    uniforruity in the conditions of service and conduct of teachers in ail
    non-govern1nental colleges would promote har1nony, avoid frustration
    and is permissible. It is thus seen that the university or the authcrity     E
    granting recognition can prescribe the conditions of service of tcachc,·s
    providing them with security of service. The rules may require that
    no Principal of the teaching or non-teaching staff of •a recognised or a
    approved institution shall be dismissed, removed or reduced in rank
    except after an enquiry in which he has been informed the charges
    against him and given a reasonable opportunity of being heard in res-        F
    pect of those charges und making representation on any penalty pro-
    posed to be inflicted on him. The Government which grants recog-
    nition or the University which gives affiliation are entitled to sec that
    proper conditions of service of the teachers are ensured and fair pro-



'   cedure is observed by the institutions when disciplinary action is taken
    against them. If the regulations require the approval by the competent
    authority for safeguarding the rights of the teachers and for securing
    the procedure there could be no objection. Such authority can also
    interfere with the decision of the private institutions when the punish-
    ment is awarded mala fide or by way of victimisation or for similar
                                                                                 G




    causes.                                                                      H'
        In Kerala Education Bill, 1957 Cl. 14(4) provided that no teacher
    of an uided school shall be dismissed, removed or reduced in rank or
      994                SUPREME l;OUaT REPORTS               [1980] 2 S.C.R.'

A    suspended by the Manager without the previous sanction of the autho-
     rised officer. This requirement of sanction related to schools that
     sought aid from the Government. While upholding the validity of
     cl. 14, Das CJ. observed that there could be no doubt that these are
     serious inroads in the right of the administration and appe-ar perilously
     near violating that right. But considering that those provisions '.Ire
B    applicable to all educational institutions and that the impugned parts
                                                                                   •
     of els. 9, 11 and 12 'are designed to give protection and security to the
     ill-paid teachers who are engaged in rendering service to the nation              '

c
     and protect the backward classes we are prepared, "as at present
     advised to treat clauses 9, 11 (2) and 12 (4) as permissible regula-
     tions the State may impose on the minorities as a condition for grant-
     ing aid to their educational institutions. Ray CJ. in St. Xavier Col-
                                                                                 l:-
                                                                                 . \

     lege case, observed that though the opinion was given in Kerala Educa-
     tion Bill on an order of reference under Art. 143 is not binding on this
     court in any subsequent matter wherein a concrete case the infringe-
     ment of the rights under any analogous provision may be called in
D    question, it is entitled to great W•ight. Ray C.J. proceeded to observe
    that nonetheless the exposition of the various facets of the rights under
     Art. 29(1) and 30 by Das, C.J. speaking for the majority, with utmost
     cfarity, great perspicuity and wisdom ha; been the text from which
     Court has drawn its sustenance in the subsequent decisions. To the
    extent that this Court has applitd these principles to concrete cases
E   there can be no question of there being any conflict with what has
    been observed by Das, CJ. Ray, C.J. was of the view that similar pro-
    visions were held to be invalid as they fell with S. 48 and 49 of the
    Kerala Education Act, which was similar to cl. 12( 4) was held invalid.
    Matbew, J. was of the view that though in the Kerala Education Bill
    case, the Court upheld the provisions similar to those in S. 51A(l) (b)
F   and 51 (A) (2) (b), the subsequent decisions of this Court left no doubt
    that the. requirement of subsequent approval for dismissing or terminat-
    ing the services of teachers would be offending Art. 30. (Learned
    Judge referred to D.A.V. Coll'g' case).


G
         In the Kerala Education Act case (supra), the validity of sub-ss.
    2 & 4 of S. 48, S. 49, S. 53, Sub-ss. 1-9 and sub-ss. 2 and 4 of S. 56
    were challenged. Hidayatullah, CJ. speaking for the Court observed
                                                                                 .1
    tlrat after the erection of the Governing Body of the Managing Council,
    the founders or even the minority conimunity had no hand in the ad-
H   ministration. The two bodies were vested with the complete adminis-
    tration of the institution and were not answerable to the founders in
    this respect. Sub-ss. (2), ( 4) and (5) and (6) of ss. 48 and 49 clearly
                                   'b.DJ - G..f. jfY)


          ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P. (Kailasam, J.)        995


    vest the management and administration in the hands of the two bodies        A.
    with mandates from the university. Coupled with this is the power of
    the Vice Chance!lor and the Syndicate under sub-sections (2) and ( 4)
    of S. 56 to have the final say in respect of disciplinary proceedings
    against the teachers. In striking down clauses (2) and (4) of S. 56,
    the Learned Chief Justice at p. 746 stated that the result was that
    sub-ss. (2) and (4) of S. 56 are ultra vires as they fail with ss. 48        B
    and 49. The Scheme of the Act was that a Governing Body or
    Managing Council was to be set up for private colleges and it was pro-
    vided that the composition of the bodies were to include Principals,
    Managers of private Colleges and nominees of the University and Gov-
    ernment as well as elected representatives of the teachers. This out-
    side body was entrusted with the administration. These two sections
                                                                                 c
    48 and 49 which provide for administration by the Governing Body or
    the Managing Council was held io be ultra vires. Apart from it, the
    powers were conferred on the Syndicate of the University to veto the
    decision of the Governing Council. Regarding disciplinary matters,
    S. 56 conferred ultimate power on the University and the Syndicate in        D
     respect of teachers. As the power to take disciplinary action was taken
    away from the Priv'atc or the Minority Institutions and conferred on
     the Governing Body or the Managing Council constituted under the
     Act and a provision was made requiring the previous sanction on the
     Vice-Chancel!or and provided an unrestricted right to the Syndicate.
     It will be noted that the Chief Justice found Ss. 56(2) and (4) ultra       E
     vires as they had to fail ·alongwith Ss. 48 and 49 which deprived the
     institution of the right to manage its own affairs.
        In the case of D.A.V. College v. State of Punjab (supra), cl. 17
~    provided that the staff initially appointed shall be approved by the
'--- Vice-Chancellor and all subsequent changes shall be reported to !he         I'.
     University for Vice-Chancellor's approval. S. 17 does not, in fact,
     confer on the Vice-Chancel!or the power to veto the disciplinary action
     taken by the private institution.
         In St. Xavier College case, also the management of the institution
     was completely taken away under Ss. 40 and 41 of the Act. The               G
     Private Institution was required to bo a constituent College of the
     University and was to be governed by the Statutes that may be framed
     by the University. Ss. 31A (l) (a) set up a Governing Body which
     to include amongst its Principals the representatives of the University
     nominated by the Vice-Chancellor and representatives of the Teachers
     of the non-teac.hing staff and students of the, college. In the circum-     H
     stances, the Court held that the right to administer and to conduct
     the affairs of the institution, were taken away from the institution. The
      996                 SUPREME COUkT REPORrs          f1980] 2 S.C.R. '

A   disciplinary proceedings ·which were to be conducted against the
    teachers was required to obtain approval of the Vice-Chancellor or
   any other officer of the University authorised by the Vice-Chancellor.
   ~part from the objection to the power conferred on the Vice-Chancel-
   lor to nominate any of its subordinate, the power conferred on the
   Vice-Chancellor was found to be unconstitutional as it was a blanket
B power unguided and uncanalised.
        In Ully Kurian v. Sr., Lewina and Ors.('),' the provisions of Ordi-
   nance 33, Chapter 67 of the Ordinances framed by the
   Syndicate of the University of Kerala, under S. 19 (1) of \.]-
   the Kerala University Act, 1957 was challenged. S. 33 (1)                .
   provided that the management may at any time place a teacher under
c suspension where a disciplinary proceedings against him is contem-
   plated or is pending. He shall be paid subsistence allowance and
   other allowances by the Man·agement during the period of suspension
   at such rates as may be specified by the university. The teacher shall
   have the right to appeal against the order of suspension to the Vice-
D  Chancellor   of the University within a period of two months from the
   date on which he receives the order of suspension. Cl. 4 of Ordinance
   33 provided that the teacher shall be entitled to appeal to the Vice-
   Chanccllor of the University against any order passed by the Manage-
   ment in respect of the penalties referred to in items (ii) to (v). Ordi-
   nance 33 ( 4) conferred a right of appeal on the teacher to prefer an
E appeal against the order of Management to the Vice-Chancellor in
  respect of the penalties imposed on him. Ordinances 33(1) and
   33 ( 4) were struck down by this Court on the ground that the confer-
   ment of right of appeal an outside authority like the Vice-Chancellor
   under Ordinance 33(4) took away the disciplinary power of the min-
   ority institution. The Vice-Chancellor was given power to veto the -./'
F disciplinary control which amounted to clear interference with discip-
  linary power of the minority institution. It was found to be a fetter
  on the right of administration conferred under Art. 30(1). The
   main ground on which the powers were found to be violative of the
  right conferred under Art. 30 was that the right of appeal was provid-
G ed without defining the scope of the appellate authority. In the cases
  referred to, namely, Very Rev. Mother Provincial, D.A.V. College and
  Lilly Kurian, the powers conferred on the Vice-Chancellor were held
  to be blanket power, unguided and uncanalised. The background of
  the decisions was that the minority institutions were deprived of the
  powers of administration by forming a body which deprived the insti-
n tution  of all its powers. In such circumstances, it was found that the
  power was uncana!ised. In the case of Rev. Father W. Proost and
       (1) [1979] 1 S.C.R. 820.
                ALL SAINTS HIGH SCHOOL v. GOVT, OF A.P. (Kailasam, J.)        997


         Ors. (supra), S. 48 was enacted providing that the minority institu-          A
         tion shall be entitled to make appointments, dismissal, removal, termi-
         nation of service and reduction in rank of teachers, subject only to the
         approval of the Syndicate of the University, which was not challenged.
         The institution claimed exemption under s. 48B. Bearing the facts
    •    of the cases set out above, we have to consider the impugned Act and
                                                                                       B
         determine whether the impugned provisions infringe the rights confer-
         red on the minority institutions under Art. 30.
               The statements of object and reasons and the salient features of the
          bill as stated in the objects and reasons and the impugned sections have
          been set out in full at the beginning of the judgment. The main ob-
          ject of the legislation is to regulate the service conditions of the teachers c
          in the private educational institutions and for ensuring the security of
          service of the teachers. It is further stated that private institution
          were punishing teachers on flimsy grounds without framing charges
          and without giving an opportunity to explain. In the preamble it is
          also stated that the Act is to provide for terms and conditions of ser-
          vice of teachers and to control of the recognised private educational D
'        institution. S. 3 of the Act provides that no teacher employed in any
         private educational institution shall be dismissed, removed or reduced
         in rank nor shall hls appointment be otherwise terminated except with
         the prior approval of the competent authority. S. 3 (2) will have to be
         read alongwith S. 3 (1) which provides that when a proposal to dismiss, E
         remove or reduced in rank or otherwise terminate the appointment of
         any teacher employed in any private educational institution is communi-
         cated to the competent authority, the competent authority shall if it is
         satisfied that there are adequate and reasonable grounds for such pro-
         posal, approve such dismissal, removal. reduction in rank or termina-
         tion of appointment. The Proviso to S. 3 (1) states that if any educa- F
         tional management, agency or institution contravenes the provtsions of
        this sub-section, the teacher affected shall be deemed to be in service.
         This section was challenged as conferring a power of taking disciplinary
        proceedings on an outside authority and as such it should be held as
        violative of the rights conferred on the minority institutions. If the
..      power of approval conferred on the competent authority is a blanket G
        power uncanalised and without guidelines, it will have to be held as
        invalid.
             The question, therefore, arises whether the section provides suffi-
        cient guidelines for the exercise of the power by the competent autho-
        rity. In the State of West Bengal v. Subodh Gopal Bose and Ors.(') it         II
        was l1eld that the statement of objects and reasons could be referred to
           (l) [1954] S.C.R. 587.
      998                SUPREME COURT REPORTS                   [1980] 2 S.C.R.

A   for the limited purpose of ascertaining the conditions prevalent at the
     time which actuated the sponsor of the bill to introduce the same and
     the extent of urgency and the evil which he sought to remedy since
     these matters were relevant for deciding whether the restrictions were
     reasonable within the meaning of Art. 19 (2) to ( 6). The object
     and reasons for the legislation make it very clear that the legislation
B    was intended to regulate .the service conditions of teachers employed
    in private educational insti1utions and for ·the security of service of
     the said teachers. The preamble is also an aid in construing the
     provisions of the Act. The House of Lords in A It. Gen. v. H.R.H.
                                                                                   ...~
     Prince Earnest Augustus of Hanover('), held that when there is a
    preamble it is generally in its recitals that the mischief to be r~medied
c   and the scope of the Act are described. It is, therefore. permissible
    to have recourse to it as an aid to construing the enacting provisions.
    Tl1e preamble states that the Act it to provide for terms and servke
    conditions of teachers. If the power conferred under S. 3(1) and
     s. 3(2) is restricted to regnlating the service conditions of teachers and
D   for ensuring their security of service, the power conferred would be
    valid. It was submitted by Mr. Lal Narain Sinha the learned counsel
    for the appellants that the power i<; uncanalised because the approval
     can be withheld even on merits which would in fact deprive the dis-
    ciplinary powers of the minority institutions.
         It is a well settled rule that in interpreting the provisions of a
E    statute, the court will presume that the legislatio;1 was intended to be
    intra vi res and also reasonable. The rule followed is that the section
    ought to be interpreted consistent with the presumption which imputes
    to the le!!is!ature an intention of limitin!! the, direct operatiO(l of its
    enactment to the extent that is permissible('). Maxwell on lnterpre-
    tation of Statutes, Twelfth Edn., P. 109 under the Caption : "Restric-
F
    tion of Operation" States : -
               "Sometimes to keep the Act within the limits of it<
          scope, and not to distnrb the Cxistitlg liw beyond what the
          object requires, it is construed as operative between cer-
         tain persons, or in certain circumstance:is, or for certain pur-
G        poses only, even though the langnage expresses no such
         circumscription of the field of operation."
    The following passage in Bidie v. General Accident, Fire and Life
    Assurance Corporation(') was cited with approval in Kesavananda
    Bharti v. State of Kerala (4 ) :
       (I) [1957] A C. 436.
H      (2) Street on Doctrine of Ultr01 Vires 1930 Edn. P.444.
       (3) [1948] 2 All. E. R. 995, 998.
       (4) [1973) Supp. S.C.R. 1 (101).
       ALL SAINTS HIGH SCHOOL v. GOVT. OF A.l'.     (Kailfrsam, J.) 999

          "The first thing . one has to do, I venture to think, in         A
     construing words in a section of an Act of Parliament is
     not to take those words in vacue, so to speak, and attri-
     bute to them what is sometimes called their natural or
     ordinary meaning. Few words in the English Jangnage
     have a natural or ordinary meaning in the sense that they
     must be so read that their meaning is entirely independent of         B
      their context. The method of construing statutes that I
     prefer is not to take particular words and attribute to them
     a sort of prima facie meaning which may have to displace
     or modify. It is to read the statute as a whole and ask
     oneself the question : "In this state, in this context, relat-        c
     ing to this subject-matter, what is the true meaning of that
     word?"
According to Holmes, J. in Towne v. Eigner(l), a v.ord is not crystal,
transparent and unchanged; it is the skin of living thought and may
vary greatly in colour and content according to the circumstances and
the time in which it is used. Gwyer, J. in Central Provinces and           D
Berar A ct('), held :
     "A grant of the power in general terms, standing by itself,
     would no doubt be construed in the wider sense; but it may
     be qualified by other express provisions in the satne enact-
     ment, by the implication of the context. and even by the              E
     consideratrons arising out of what appears to be the general
     scheme of the Act."
To the same effect are the observations of this Court in Kedar Nath
Singh v. State of Bihar: ( 3 )
         "It is well settled that in interpreting an enactment the
     Court should have regard not merely to the literal meaning
     of the words used, but also take into consideration the an-
     tecedent history of the Jcgis!ation, its purpose and the mis-
     chief it seeks to supress.    (The Bengal Immunity Co. Ltd.
     v. The State of Blhar [1955] 2 S.C.R. 603 and R.M.D.
                                                                           G
     Chamaurbaugwalla v. The Union of Indici fl 957] S.C.R.
     930 cited with approval."
This Court has in several cases adopted the principle of reading down
the provisions of the Statute. The reading down of a provision of
a statute puts into operation the principle that so far as it is reaion-
   (1) 245 u. s. 418~62 L. ed. 372, 376.                                   H
   (2) [1939] F. C.R. 18 & 12.
   (3) [1962] 2 Suppl. S.C.R. 769.
     rooo                 SUPREME COURT REPORTS                [19SO] 2 S.C'.R.

     ably possible to do so, the legislation should be construed as being
     within its power. It has the principle effect that where an Act" is
     expressed in language of a generality which makes it capable, if read
     literally, of applying to matters beyond the relevant legislative power,
     the Court will construe it in a more limited sense so as to · keep it
     within power.                                                                   •
B
            Applying the principles laid down in the cases cited above, the
       power conferred under S. 3 (1) and (2) of the impugned Act will               •
       have to be construed. This Court has in St. Xcn-ier's College . case
       (supra) held t.hat the proviskms of S.51A(l) of the impugned Act
       in that case which provided that no member of the other academic
c and non-teaching staff of an affiliated college and recognised or appro-
       ved institution shall be dismissed. or removed or reduced in rank
       except . after an enquiry in which he has been informed of the
       charges against him and "given a reasonable opportunity of being
        heard in respect of those charges and until he has been given a
        reasonable opportunity of making representation on any such penal-
D       ty proposed to be inflicted on him,' as a valid condition. Mathew, J.
        affirmed that if the purpose of the approval is to see that the provisions   •
        of sub-sec. 51 (A) (1) ('l)·are complied with, there can possibly be no·
         objection in lodging the power of approval even in nominee of the
        Vice-Chancellor. Khanna, J. has held that if the power is confined only
         to cases of dismissal, removal or reduction in rank .or termination of
  E
         service as mala fide and by way of victimisation, the power would be
         valid. Regarding the power of interference with the conclusion of a
         domestic tribunal in disciplinary matters, this Court has held that the
         decis\on can be interfered with if there is want of good faith or when
         there is victimisation or when the management has been guilty of basic
· F .' error or violation of principles of natural justice or when the material
      . findings are completely baseless or perverse_ (Indian Iron and Sieel Co.
         Ltd. v. Their Workmen('). It has also been held that the authority
        interfering is not a Court of Appeal and cannot substitute its own judg-
         ment.
          The impugned legislation was passed in the year 1975. It must be
 G
      presumed that the legislature was conscious of the limitations of the          ....
      power which the competent anthority can have in granting or with-
      holding approval in the ,case of disciplinary proceedings conducted by ·
      private institution. cl. 12( 4) of the Kera la Education Bill (supra) was
    · held io be valid on the ground that it was designed to give protection
 JI and security to the ill-paid teachers who are engaged in rendering ser-
      vice to the natiol) and protect the backward classes. If the power is
          (1) [1958] S.C.R. 667.
           ALL SAINTS IIIGH SCHOOL v. GOVT. OF A.P.       (Kailasam, J.)   1001


     constrused as conferring unrestricted power and if the provisions are          A
     held invalid, it will result in considerable mischief and would result in
     depriving the protection that is available to the poor teacher regarding
     their security of service. The legislation was for the specific purpose
     of regulating the service conditions and providing security of service
     and for preventing teachers from being punished on flimsy grounds
     without framing charges and with,out giving an opportunity to explain.
     Jt is very different from other cases, in which the legislation was aimed
•\
     at depriving the minority institutions of all its powers. The only aim

,~   of the impugned legislation is to provide security of service. As pointed
     out there are sufficient guidelines in the objects and reasons in the legis-
     lation as well as in the preamble. In the circumstances, it is not only
     reasonable but proper that a restricted meaning is given to the power
                                                                                    c
     of prior approval c.onfcrred on the competent authority under s.3.

          S.3(1) and (2) will have to be read together. The procedure con-
     templated is that when the educational insitution proposes io dismiss, re-
     move or reduce in rank or otherwise terminate the appointment of any
     teacher it should communicate to the competent authority its proposal.
     The latter part of S.3 (2) mentions that the competent authority shall !f
     it is satisfied that there arc adequate and reasonable grounds for such
     proposal approve such dismissal, removal, reduction in rank or other-
     wise termination of appoinment. The approval of an order of dismissal
     or removal etc. will have to be read alongwith S.3 (1) which provides          E
     that no teacher shall be dismissed etc. without the previous approval
     of the competent authority. When a domestic enquiry has been con-
     ducted and the teacher is given an opportunity to rebut the charges
     and show cause against the punishment proposed and when fair pro-
     cedure has been followed and the authority comes to the conclusion
                                                                                    F
     that the disciplinary action should be taken against the teacher the pro-
     posal w;u have to be sent to the competent authority. The competent
     authority will examine the proposal alongwith the procedure adopted by
     the institution and such dismissal, removal or reduction in rank or ter-
     mination of appointment. Sub. s(2) requires the competent authority to
     approve such a proposal if it is satisfied that there are adequate and         G
     reasonable grounds for such proposal. The two words "adequate and
     reasonable" in our opinion furnish sufficient guidelines. The competent
     authority can interfere if there are no material at all for sustaining the
     order of punishment or when on the materials found the charge is
     completely baseless and perverse. The word "adequate" in sub-section
     wil! have to be understood as being confined to such examination of            It
     the proposal. The word "reasonable" would indicate the power of the
     competent authority is confined to the power of an authority to inter-
     1002                 SUPREME COURT REPORT5                  (1980] 2 s.;;.R..

A   fere with the enquiry and conclusions arrived at by the domestic Tribu-
    nal. The competent authority may satisfy itself that the rules of natural-
  . Justice has been satisfied, that the teacher was given an opportunity to
    defend the charges against him and to show cause against the punish-
   ·ment proposed to be awarded to him and that a fair procedure has
  . been observed. The authority may also be entitled to interefere when               •
B the punishment was imposed by the institution due to ma/a fides er
    with a view to victimised. him or such like grounds. The word "reaso-
    nable" cannol be nnderstood as conferring a power to interfere with
    the enquiry by the domestic tribunal as· a Court of Appeal on merits.
    The law relating to the circumtances under which the proceedings of
    the tribunal can be interferred with has been clearly laid down.
    Sufficient guidelines are discernible from the Statements of objects and
    reason which state that the enactment was for the purpose of preven-
     ting private institutions from talcing disciplinary action on flimsy grounds
     without framing charges and with.out giving an opportunity to explain
     and for regulating the service conditions of teachers and for ensuring
D    their security of service. Wre are satisfied that sufficient guidelines are
     indicated in the Act. The.words "adequate and reasonable" should be
     given a restricted meaning so as to validate the pr,ovisions of the section.      '
     Thus, understood, the objecti6n raised by . Mr. Lal Narain Sinha,
     !earned counsel for the appellant, that S.3 (1) and (2) lack guidelines
     and have conferred a blanket power, cannot be uphold.
E
          It was next contended by Mr. Lal Narain Sinha that no question
     of principles of natural justice arised when the conditions of· service
     between the institution.and the teacher are regulated by contract. We
     are unable to accept this contention for the legislature is competent
     to enact provisions limiting the power of dismissal and removal. The
F
     Legislature has given security of service ·to employees in industries and
     in other institutions. It Wl!S submitted by the learned counsel that the
     offence of misconduct has not been clas·sificd in the Act and that no pro-
     cedure for conducting disciplinary enqui,Y. has been prescribed. Such
   · d<!tails are not essential. It is within the jurisdiction of the institution to
G conduct an enquiiy and impose punishments. It is also the right of the
    'competent authority to withhold approval on adequate and reasonable               •
     grounds. The plea that the competent authority may be any petty officer
     cannot also ]Je upheld as the competent authority is defined under
     S.2(1) as meaning any auth,ority. officer or person authorised by noti-
     fication performing the functions of competent authority under this Act.
ll The competent authority or officers of the educational department who
     are incharge of administration of educational institutions in the area,
      cannot be. called petty officers.
            ALL SAINTS HIGH SCHOOL v. GOVT. OF A.P.        (Kailasam, !.)   I 003


           Section 3(3) (a) am! 3(3)(b) relate to suspension of a teacher            A
       Sub. s.3(a) requires that a teacher employed in a private institution
       shall not be placed under suspension. Without an enquiry into the
       gross-misconduct of such teacher is contemplated and sub. s.3(b) re-
       quires that the period of suspension shall n,<Yt exceed two months. If
       it exceeds two months and the enquiry is not completed within that
       period, such teacher shall, without prejudice to the enquiry, he deemed       B
       to have been restored as teacher. But the proviso enables the autho-
       rity to extend the period of suspension for another two months if in his
,...    opinion the enquiry could not be completed within the period of two
        months. Sub. ss.(a) & (b) of S. 3 which relate to suspension are regu-
l       latory in nature and are intended to safeguard the teachers from being
                                                                                     c
        suspended for unduly long periods without there being an enquiry into
        gross misconduct. We arc unable to say that these provisions interfere
        with the right of administration of the private institutions. S.3 ( 4)
        states that every teacher placed under suspension shall be paid subsis-
        tence allowance at "1ch rates as may be prescribed during the period
        cf his suspension. This sub-section is purely regulatory in nature and       D
         unobjectionable.

            S.4 confers a right of appeal against the order of punishment im-
        posed on teachers employed in private educati,onal institutions. A tea-
        cher who is dismissed. removed or reduced in rank or whose appoint-
        ment is otherwise terminated or whose pay and allowances' or any of          E
        the whose conditions of service arc altered ,or interpreted to his dis-
        advantage may prefer an appeal to such authority as may be prescribed.
        This section was challenged by Mr. L. N. Sinha, learned counsel, on
        the ground that the right of appeal conferred is a blanket power without
        any restriction. In any event, the submission that the right of appeal
        is conferred only on the teacher and not on the institution. Though NO       F
        restriction arc placed on the appellate power, we feel it may be possi-
        ble to read down the section. But the learned counsel is on firm ground
         when he submits that the right of appeal is confined only to the teachers
        and not available to institution. This infirmity invalidates S.4.

            Section 5 is consequential of S.4 in which power is conferred on the G
        competent authority to hear appeal in certain past disciplinary cases.
        S.5 also will have to fail alongwith S.4. S.6 relates to retrenchment of
        teachers under certain conditions. It provides that when any retrench-
        ment is rendered necessary, consequeut on any order of the Govern-
        ment relating to educational institutions ,or course of instruction or any .
        other matter such retrenchment may be effected with the prior appro-         H
         val of the competent authority. This section is also intended to pro-
        vide security of service of the teachers and is regulatory in nature and
      1004                ~I rrPE!\.1E   CC.l.iRT REPORT'}    i.1Y~~(:j   2 S.(.'.R.

A    !he validity of which cannot be qnestioncd. S. 7 requires the pay and
     all,o'wances of any teacher employed in any private educational institu-
     tion shall be paid on or before such day of every month, in such manner
     and by or through such authority, officer or person as may be prescrib-
     ed. This section is also regulatory in nature and is mtcnded for secur-
     ing regular payment of the teachers.
B
         The validity of other sections was not questioned in the writ peti-
     tions, and, therefore, it is not permissible to go into it.
         In the view we have taken, we do not think that we should go into             \.
     the merits of each of the cases. In C.A. No. 1280 of 1978-The All
     Saints High School Hyderabad v. The Govt. of ,Jndhra Pradesh and
c    Ors.-the learned cow1sel appearing for the school before the High
     Court sought the decision only on the legal issues and the questions
     emanating from the provisions of the Act and specifically requested
     the court not to decide the merits of the case. In some of the petition
    the facts have been gone into but we would refrain from going into
D   the facts for it has to be decided as to whether the competent autho-
    rity has acted within the restricted jurisdiction which have been stated
    with in our judgment. If the competent authority bad exceeded its
    jurisdiction, it would be apen to the aggrieved institution to question
    the validity of such action. These matters will have to be decided on
    merits. In the circumstances, we remit all the Civil Appeals to the High
E   Court for disposal on merits in the light of this Judgment.
                                          ORDER
         In the view of the majority, sections 3(3) (a), 3(3) (b), 6 and
     7 of the Andhra           Pradesh Recognised Private Educational
    Institutions Control Act, 1975 are valid while sections 3(1), 3(2), 4
F   and 5, of the Act are invalid in their application to minority educa-
    tional institutions. It must follow that such institutions cannot be pro-
    ceeded against for violation of provisions which are not applicable to
    them. The matters are remanded to the High Court of Andhra Pradesh
    for final disposal on merits in the light of the judgments.
G      There will be no order as to costs.

    N.K.A.


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