http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 111

PETITIONER:

UNNI KRISHNAN, J.P. AND ORS. ETC. ETC

Vs.

RESPONDENT:

STATE OF ANDHRA PRADESH AND ORS. ETC. ETC.

DATE OF JUDGMENT04/02/1993

BENCH:

SHARMA, L.M. (CJ)

BENCH:

SHARMA, L.M. (CJ)

BHARUCHA S.P. (J)

PANDIAN, S.R. (J)

JEEVAN REDDY, B.P. (J)

MOHAN, S. (J)

CITATION:

1993 AIR 2178 1993 SCR (1) 594

1993 SCC (1) 645 JT 1993 (1) 474

1993 SCALE (1)290

ACT:

Constitution of India, 1950:

HEADNOTE:

Articles 21, 41, 45 and 46-Right to education-Whether a

fundamental right-Held:Every child/citizen has a tight to

free education up to the age of 14 years and thereafter it

is subject to limits of economic capacity and development of

the State-State obliged to follow directions contained in

Article 45-Article 21 to be construed in the light of

Articles 41, 45 and 46.

Article 21-Right to Education-Whether implicit under the Ar-

ticle-Whether flows from right to life and personal liberty-

Extent and content of the right.

Parts III and IV-Fundamental Rights and Directive

Principles Whether complementary to each other-Whether a

right could be recognised as a fundamental rot even though

not expressly mentioned

Articles 14, 15, 21, 41, 45 and 46-Private unaided

recognised affiliated educational institutions running

professional courses like engineering and medical course-

Whether entitled to charge a fee higher than that charged by

Government institutions-Held:Entitled to charge a higher fee

but such a fee cannot exceed the ceding fixed in this

regard-However, commercialisation of education not

permissible fee-Meaning of.

Whether private aided recognised/affiliated educational

governed by rules and framed by Government in matters of

admission of students and fee chargeable as also recruitment

and conditions of service etc, of teachers and staff.

Whether private recognised/affiliated institutions obliged

to act fairly consistent with Articles 14 and 15 and in

accordance with conditions of grant of recognition

affiliation-Held: as conditions of grant of aid they were

governed by such rules and regulations-Private

institutions receiving aid

595

obliged to act fairly in consonance with fundamental rights

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 111

as well as regulations framed by Government-State, while

granting recognition/affiliation obliged to impose

conditions for maintaining standards and ensuring fairness,

inter alia, in respect of fees chargeable and admission.

Admission and charging of capitation fees in private

unaided/aided recognised/affiliated educational institution

conducting professional courses such as medical and

engineering courses-Scheme framed by Court eliminating

discretion of management in admissions in and fees payable

in such institutions and substituting merit of the students

as the sole criterion.

Article 12-Private insupplementing State function viz.,

imparting education-Whether aninstrumentality of State-

"ether public duty performed by it viz,imparting of

education would make it amenable to Pail III, such as

Articles 14 and15.

Articles 19(1)(g) and (6(-Right to establish and run

educational institutions-Whether a fundamental right-

Imparting education-Whether a commercial activity of

establishing an education institution Whether a profession-

Words 'Profession', 'Occupation, 'Trade' and 'Business'-

Meaning of.

Articles 12 14, A 19(1)(g), 21, 30, 41, 45 and 4 ether

private educational institutions have a fundamental right to

recognition/affiliation-Whether such a right can be inferred

by reading into Article 19(1) (g) a right in the of Article

30.

Articles 29 and 30-Rights conferred on minorities in a

positive way-Whether negate the assumption of such rights by

other citizens.

A.P. Educational Institutions (Regulation of Admission and

Prohibition of Capitation Fee) Act 1983.

Section 3-A-Power to grant admission to students who

qualified in entrance/qualifying examination irrespective of

their ranking in the examination and to charge any amount in

addition to tuition fee-Whether violative of Article 14 of

the Constitution.

Karnataka Educational Institutions (Prohibition of

Capitation Fee) Act 1984/Maharashtra Educational

Institutions (Prohibition of Capitation Fee) Act 1987/Tamil

Nadu Educational Institutions (Prohibition of Collec-

596

tion of Capitation Fee) Act 1992. Constitutional validity

of-Held: Constitutional as they do not contain provisions

offending Article 14 of the Constitution.

In the writ petitions flied before this Court, the

correctness of the decision of this Court in the case of

Mohini jain v. State of Karnataka and Others, [1992] 3 SCC

p. 666 was challenged by private educational institutions,

engaged in or proposing to engage in imparting medical and

engineering education in the States of Andhra Pradesh,

Karnataka, Maharashtra and Tamil Nadu.

In Mohini Jain's case, this Court had held, inter alit; that

every citizen has a right to education under the

Constitution; the State was under an obligation to establish

educational institutions to enable the citizens to enjoy the

said right; the State may discharge its obligation through

State owned or State-recognised educational institutions;

that when the State Government granted recognition to the

private educational institutions, it created an agency to

fulfil its obligation under the Constitution, that charging

capitation fee in consideration of admission to educational

institutions, was a patent denial of a citizen's right to

education under the Constitution and that the State action

in permitting capitation fee to be charged by State-

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 111

recognised educational institutions was wholly arbitrary

and, as such, violative of Article 14 of the Constitution;

that the capitation fee brought to the fore a clear class

bias; and that when the State Government permitted a private

medical college to be set up and recognised its curriculum

and degrees, then the said college was performing a funtion

which under the Constitution had been assigned to the State

Government and If the State permitted such institution to

charge higher fee from the students, such a fee was not

tuition fee, but in fact a capitation fee.

The aforesaid decision was followed by the Full Bench of the

A.P. High Court in Kranti Parishad v. N.J. Reddy, [1992] 3

ALT " while allowing the writ petitions filed before it

challenging the permission granted by the State Government

for the establishment of private Medical and Dental Colleges

in the State and also the constitutional validity of section

3-A of the Andhra Pradesh Educational Institution

(Prohibition of Capitation Fee) Act, 1983. The respondents

before the High Court, including the State, riled Special

Leave Petitions against the High Court's judgment Besides

several writ petitions questioning the correctness of the

decision of this Court in Mohini Jain's case also were

flied.

597

The validity of the State enactments of Karnataka, Tamil

Nadu and Maharashtra and the notifications issued thereunder

on the subject of charging of excess fee from the students

was also questioned In the writ petitions, civil appeals and

Special Leave Petitions filed before this Court.

It was contended that (a) the State had no monopoly in the

matter of imparting education; every citizen had the

fundamental right to establish an educational institution as

a part of the right guaranteed to him by Article 19(1)(g) of

the Constitution, which extended even to the establishment

of an educational institution with a profit motive i.e., as

a business adventure; the said right was absolute-subject,

of course, to such reasonable restrictions as may be placed

upon it by a law within the meaning of clause (6) of Article

19; (b) the vice was not in the establishment of educational

institutions by individuals and private bodies but in

unnecessary State control; the law of demand and supply must

be allowed a free play, (c) the establishment of an

educational institution was no different from any other

venture eg., starting a business or Industry, It was

immaterial whether the institution was established with or

without profit motive; only when there was profit motive

that persons with means would come forward to open more and

more schools and colleges; (d) even If It was held that a

person had no right to establish an educational institution

as a business venture, he had atleast the right to establish

a self-financing educational institution, which institution

might also be described as one providing cost-based

education; and thus, it was open to a person to collect

amounts from willing parties and establish an institution to

educate such persons or their children, as the case may be;

the quantum of the fees to be charged in such institution

should be left to the concerned institution and the

Government should have no say in the matter, it was not

possible for the Court in the very nature of things, to go

into the issue; these private educational institutions were

providing a large number of 'free seats' to the nominees of

the Government, and all these students would not have had an

opportunity of studying the course of their choice but for

the existence of these private educational institutions; (e)

in these circumstances, Mohini Jain's case was not right in

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 111

saying, that charging of any amount, by whatever name it was

called, over and above, the fee charged by the Government in

its own colleges, must be described as capitation fee, and

saying so amounted to imposing an impossible condition, it

was not possible for the private educational institutions to

survive if they were compelled to charge only that fee as

was

598

charged in Governmental institutions; the cost of educating

an engineering or a medical graduate was very high; all that

cost was home by the State in Governmental Colleges; since

the State was not subsidising the private educational

institutions, these institutions had to find their own and

that could come only from the students; (f) even if the

right to establish an educational institution was not trade

or business within the meaning of Article 19(1) (g), it was

certainly an 'occupation' within the meaning of the said

clause; the use of the four expressions-profession,

occupation, trade or business in Article 19(1)(g) was meant

to cover the entire field of human activity, and the

petitioners had the right to establish private educational

institutions- at any rate, self-financing/cost-based private

educational institutions, which would be restricted only by

a law as contemplated by clause (6) of Article 19; (g) the

right to establish and administer an educational institution

(by a member of the minority community, religious or

Lnguistic) arose by necessary implication from Article 30;

the Constitution could not have intended to confine the said

right only to minorities and deprive the majority

communities therefrom; (h) the Government or the University

could insist or stipulate as a condition of

recognition/affiliation that the private educational

institutions should admit students exclusively on merit:

moreover, there might be several kinds of private

educational institutions which might be established for

achieving certain specified purposes viz., to cater to the

needs of a particular region or a district, or to educate

children of members of a particular community, (1) by virtue

of mere recognition and/or affiliation these private

educational institutions did not become instrument of the

State within the meaning of Article 12 of the Constitution;

the concept of State action could not be extended to those

colleges so as to subject them to the discipline of Part

111; it might be a different matter V the institution was in

receipt of any aid, partially and wholly, from the State; in

such a situation, the command of Article 29 (2) came into

play, but even that did not oblige the institution to admit

the students exclusively on the basis of merit but only not

to deny admission to anyone on any of the, grounds mentioned

therein, and (i) that Article 21 was negative in character

and it merely declared that no person should be deprived of

his life or personal liberty except according to the

procedure established by law, and since the State was not

depriving the respondents-students of their right to

education, Article 21 was not attracted.

On behalf of the respondents and the Indian Medical Council

and

599

All India Council for Technical Education it was contended

that; (a) imparting of education bad always been recognised

from does immemorial as the religious duty and also as a

charitable object, and as a trade or , business, it was a

mission and not a trade, and commercialisation of education

has always been looked upon with disfavour, the Parliament

expressed its intention by enacting In 1956 the University

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 111

Grants Commission Act which specified the prevention of cow

motion of education as one of the duties of the University

Grants Commission which Intention had also been expressed by

several enactment made by the Parliament and State

Legislatures since then; (b) imparting of education was the

most important function of the State which duty might be

by State directly or through the instrumentality of private

educational Institutions; but when State permitted a private

body or an individual to perform the said function, It was

its duty to ensure that so one got an admission or an

advantage on account of his economic power to the detriment

of a more meritorious candidate; (c) the very concept of

collecting the cost of education that was what the concept

of cost-based or self-financing educational Institutions

meant- was morally abhorrent and was opposed to public

policy-, a capitation fee did not cease to be a capitation

fee just because it was called as cost-based education or by

calling the Institution concerned as a self-fianacing

Institution; these expressions were but a over for

collecting capitation fee-, It was nothing but exploitation,

and, was an elitist concept basically opposed to the

constitutional philosephy; the concept suffered from class

bias and by allowing such education, two classes would come

Into being; (d) even If It was held that a citizen or a

person had a dot to establish an educational institution,

the said right did not carry with it the right to

recognition or the right to affiliation, as the case may be;

even a minority educational institution was held by this

Court to have no fundamental right to recolor affiliation;

hence such a right could not be envisaged in the case of

majority community or In the case of individuals or persons,

and it was open to the State or the University according

recognition or affiliation to impose such conditions as they

think appropriate in the Interest of fairness, merit,

maintenance of standards of education and so on, Including

that the admission of students, In whichever category It

might be, should be on the basis of merit and merit alone;

the Institutions obtaining recognition/affiliation would be

bound by such condition and any departure therefrom rendered

the recognition/affiliation liable to be withdrawn;

600

and (e) even if such a condition was not expressly imposed,

it was implicit, by virtue of the fact that in such a

situation, the activity of the private educational

institution was liable to be termed as State action; the

fact that these institutions performed an important public

function coupled with the fact that their activity was

closely inter-twined with governmental activity,

characterised their action as State action; at the minimum,

the requirement would be to act fairly in the matter of

admission of students and probably in the matter of

recruitment and treatment of its employees as well; these

institutions were further bound not to charge any fee or

amount over and above what was charged in. similar

governmental institutions; and if they needed finances, they

must find them through donations or with the help of

religious or charitable organisations and they could not

also say that they would first collect capitation fees and

with that money, they would establish an institution; at the

worst, only the bare running charges could be charged from

the students and the capital cost could not be charged from

them.

On behalf of the Government of India it was submitted that

the Central Government did not have the resources to

undertake any aditional financial responsibility for medical

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 111

or technical education; it was unable to aid any private

educational institution financially at a level higher than

at present; therefore, the policy of the Central Government

was to involve private and voluntary efforts in the

education sector in conformity with accepted norms and

goals; however, the private educational institutions could

not be compelled to charge only that fee as was charged in

Governmental institutions; so far as engineering colleges

were concerned, permission was being granted by the

A.I.C.T.E. subject to the condition that they did not

collect any capitation fee;

It was also submitted that (a) conferring unconditional and

unqualified right to education at all- levels to every

citizen involving a constitutional obligation on the State

to establish educational institutions either directly or

through State agencies was not warranted by the Con-

stitution besides being unrealistic and impractical; (b)

when the Government granted recognition to private

educational institutions it did not create an agency to

fulfil its obligations under the Constitution and there was

no scope to import the concept of agency in such a

situation; (c) the principles laid down in Mohini Jain's

case required reconsideration; (d) it would be unrealistic

and unwise to discourage private initiative in provid-

601

ing educational facilities particularly for higher

education. The private section should be involved and

indeed encouraged to augment the much needed resources in

the field of education, thereby making as much progress as

possible in achieving the Constitutional goals in this

respect; (e) at the same time, regulatory controls had to be

continued and strengthened in order to prevent private

educational institutions from commercialising education; (f)

regulatory measures should be maintained and strengthened so

as to ensure that private educational institutions maintain

minimum standards and facilities; (g) admissions within all

groups and categories should be based on merit. There may

be reservation of seats In favour of the weaker sections of

the society and other groups which deserve special

treatment. The norms for admission should be predetermined

and transparent.

The four State Governments also took a similar stand.

It was submitted on behalf of the students who had obtained

admissions against the Management quota of 50% seats, that

they were Innocent parties and had obtained admission in a

bonafide belief that their admissions were being made

properly, they had been studying since then and in a few

months their academic year would come to a close; may be,

the managements were guilty of an irregularity, but so far

as the students were concerned they had done nothing

contrary to law to deserve the punishment awarded by the

Full Bench of the High Court.

Disposing of the Writ petitions and appeals, this Court,

HELD:By the Court,

1.The citizens of this country have a fundamental right

to education. The said right flows from Article 21. This

right is, however, not an absolute right. Its content and

parameters have to be determined in the light of Articles 45

and 41. In other words, every child/citizen of this country

has a right to free education until he completes the age of

14 years. Thereafter his right to education is subject to

the limits of economic capacity and development of the

State. [693B-C]

21.The obligations created by Articles 41, 45 and 46 of the

Constitution can be discharged by the State either by

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 111

establishing institutions of, Its own or by aiding,

recognising and/or granting affiliation to private

602

educational institutions. Where and not granted to private

educational institutions and merely recognition or

affiliation is granted It may a" be insisted that the

private education institution shall charge only that fee as

is charged for similar courses in governmental Institutions.

The private educational institutions have to and are

entitled to charge a higher fee not exceeding the ceiling

fixed in that behalf. The admission of students and the

charging of fee in these private educational institutions

shall be governed by the evolved by this Court [693D-E]

3.A citizen of this country may have a right to establish

an educational institution but no citizen, person or

institution has a right much less a fundamental right to

or recognition, or to grant-in-aid from the State. The

recognition and affiliation shall be given by the State

subject only to the conditions set out in, and In accordance

with, the scheme laid down by this Court. No

Government/University or authority shall be competent to

grant recognition or affiliation with the said scheme. The

said scheme shall constitute recognition or affiliation, as

the case may be, in addition except In accordance a

condition of such to such other conditions and terms which

such Government, University or other authority may choose to

impose. [693F-G]

4. Those institutions receiving aid shall howeverbe subject

to all so terms and conditions, as the aid giving authority

may impose In the interest of general public. [693H, 694A]

5. Section 3-A of the Andhra Pradesh Educational

Institutions (Regulation of Admission and Prohibition of

Capitation Fee) Act, 1983 Is violative of the equality

clause enshrined in 14 and is, therefore, void. [694B]

6.None of the provisions of the enactments of other three

States,viz., Karnataka, Tamil Nadu and Maharashtra says that

the Management of a private educational institution can

admit students, against "payment seats', 'irrespective of

the ranking assigned to them In such test (En Test) or

examination'. Much less do they say that to such

admissions, the provision prohibition capitation fee shall

not apply. No doubt they do not say expressly that such

admissions shall be made on the basis of merit, but that is

implicit If the notifications or orders issued thereunder

provide otherwise, either expressly or by Implication, they

would be equally bad. [690H, A-B]

603

Per Jeevan Reddy, J. (For himself and Pandian J.) Sharma, CJ

and S.P.Bharucha, J. Concurring except on the question of

rig to education being a fundamental right

11. Right to education is not statedexpressly as a

Fundamental Right in Part III of the Constitution of India.

However, having regard to the fundamental significance of

education to thelife of an individual and the nation,

right to education is implicit In and flows from the right

to life guarenteed by Article 21. That the right to

education has been treated as one of transcendental

importance in the life of an individual has been all over

the world. Without education being provided to the citizen

of this country, the objectives set forth in the Preamble to

the Constitution cannot be achieved. The Constitution would

fail. [644G, 652G-H, 653A-B),

Bandhua Mukti Morcha v. Union, of India; [1984] 2 S.C.R. 67,

to.

Miss Mohini jain v. State of Karnataka & Ors, [1992] 3 SCC

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 111

666, affirmed.

12. No doubt Article 21, which declares that no person

shall be of his fife or personal, liberty except according

to the procedure bed by law, is worded in negative terms,

but It Is now well that Article 21 has both a negative and

an affirmative dimension. It Is also well bed that the

provisions of Parts III and IV are supplementary and

complementary to each other and that Fundamental Rights are

but a to the goal indicated in Part IV, and that the

Fundamental Rights mad be construed in the not of the

Directive Principles. [645C, 652E]

Newspapers v. Union of India, [1959] S.C.L 12; Hussain Ara

v. Home Secretary, State of Bihar, [1979] 3 S.C.R. 532; A.R.

Antulay v.R.S. Nayak, [1992] Supp. 1 S.C.R. 225; Olga

Tellis v. Bombay Municipal Corporation, [1985] Suppl. 2

S.C.R. 51; Kharak Singh v. State of Uttar Pradesh and Ors

"[1964] 1 S.C.R 332; Vincent v. Union of India, [1967] 2

S.C.R. 468; M.C. Mehta v. Union of India, [1988] 1 S.C.R.

279,; Maneka Gandhi v. Union of India 1978 SC. 597; B.C.

Cooper v. Union of [1970] 'SC. 564; Bandhua Mukti Morcha v.

Union of India [1984] 2 S.C.R. 67; D.S. Nakara v. Union of

of India [1983] SCR 130; The State of Madras v.Champakan

Dorairajan, [1959] S.C.R. 995; Hanif v. State of

604

Bihar, [1959] S.C.R. 629; Keshavananda Bharati v. State of

Kerala 1973 Suppl. 521; U.P.S. C. Board v. Harishankar,

A.I.R. 1979 S.C. 65 and Minerva Mills v. Union of India,

A.I.R. 1980 S.C. 1789, referred to.

Munn v. Illinois, 1877 (94) U.S. 113/142 and Boiling v.

Sharpe, 98 Lawyers Ed. 884, referred to.

13. The fact that right to education occurs in as many as

three Articles in Part IV viz., Articles 41, 45 and 46 shows

the importance attached to it by the founding fathers. Even

some of the Articles in Part III viz, Articles 29 and 30

speak of education. [653F]

Brown v. Board of Education, 98 Lawyers Ed. 873 and

Wisconsin v. Yoder, 32 Lawyers Ed. 2d. 15, referred to.

14. The mere fact that the State is not taking away the

right at present does not mean that right to education is

not included within the right to life. The content of the

right is not determined by perception of threat The content

of right to life is not to be determined on the basis of

existence or absence of threat of deprivation. The effect

of holding that right to education Is implicit in the right

to life is that the state cannot deprive the citizen of his

right to education except in accordance with the procedure

prescribed by law. Therefore, it would not be correct to

say that Mohini Jain was wrong in so far as it declared that

the right to education flows directly from right to life.

[654E-G].

Miss Mohini Jain v. State of Karnataka and Ors, [1992] 3 SCC

666, referred to.

15.However, the citizens of this country cannot demand

that the State provide adequate number of medical colleges,

engineering colleges and other educational institutions to

satisfy all their educational needs. The right to education

which is implicit in the right to life and personal liberty

guaranteed by Article 21 must be construed in the light of

the directive principles in Part IV of the Constitution.

There are several articles in Part IV which expressly speak

of right to education. [654H, 655A-B]

Miss Mohini Jain v. State of Karnataka and Ors., [1992] 3

SCC 666, overruled.

16A. Education means knowledge and knowledge itself Is

power. The

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 111

605

preservation of means of Knowledge among the lowest ranks

Is of more importanceto the public than all the property

of all the rich men in the country. It Is this concern

which underlies Article 46. [655D-E]

John Adams: Desertation on Canon and Fuedal Law, 1765;

Rauschning. The Voice of Destruction: Hitler referred to.

1.7.A true democracy is one where education is universal,

where people understand what is good for them and the nation

and know how to govern themselves. Articles 45, 46 and 41

are designed to achieve the said goal among others. It is

In the Hot of these articles that the content and parameters

of the right to education have to be determined. [655F]

1.8.Thus, right to education, understood in the context of

Articles 45 and 41, means: (a) every child/citizen of this

country has a right to. free education until he completes

the age of 14 years, and (b) after a child/citizen completes

14 years, his right to education is circumscribed by the

limits of the economic capacity of the State and its

development. Article 45 assures right to free education for

all children until they complete the age of 14 Am. Among

the several articles in Part IV, only Article 45 speaks of a

time-limit; no other article does. This is very

significant. The State should honour the command of Article

45. It must be made a reality. A childhood has a

fundamental right to free education up to the age of 14

years. [655G, 656A, 658D]

Gunnar Myrdal, Asian Drain, referred to.

1.9.This does not, however, mean that this obligation can

be performed only through the State schools. It can also be

done by permitting, recognising and aiding voluntary

nongovernmental organisations, who are prepared to impart

free education to children. It does not also mean. that

unaided private schools cannot continue. They can, indeed

they too, have a role to play. They meet the demand of that

segment of population who may not wish to have their

children educated in State-run schools. They have

necessarily to charge fees from the students. [658E]

1.10.The right to education further means that a

citizen has a right to call upon the State to provide

educational facilities to him within the limits of its

economic capacity and development. This does not mean

transferring Article 41 from Part IV to Part 111. No State

would say that It need not provide education to its people

even within the limits of Its economic

606

capacity, and development. It goes without saying that the

limits-of economic capacity are, ordinarily speaking

matters within the subjective satisfaction of the State.

Therefore, it is not correct to say that reading the right

to education into Article 21, this Court would be enabling

each and every citizen of this, country to approach the

courts to compel the State to provide him such education as

he chooses. The right to free education is available only

to children until they complete the age of 14 years. There-

after, the obligation of the State to provide education is

subject to the limits of its economic capacity and

development.

[660E-H, 661A]

Francis C Mullin v. Administrator, Union Territory of Delhi,

[1981] 2 S.C.R. 516, referred to.

2.1.Private educational Institutions are a necessity in the

present day context. It is not possible to do without them

because the Governments are not in a position to meet the

demand particularly in the sector of medical and technical

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 111

education which call for substantial outlays. While

education is one of the most Important functions of the

Indian State, It has no monopoly therein. Private

educational institutions Including minority educational

institutions too have a role to play. Private educational

institutions may be aided as well as unaided. Aid given by

the Government may be cent per cent or partial. [674D-E]

2.2.So far as aided institutions are concerned, they have

to abide by all the rules and regulations as may be framed

by the Government and/or recognising(affiliating authorities

in the matter of recruitment of teachers and staff, their

conditions of service, syllabus, standard of teaching and so

on. In particular, in the matter of admission of students,

they have to follow the rule of merit and merit alone

subject to any reservations made under Article 15. They

shall not be entitled to charge any fees higher than what is

charged in Governmental institutions for similar courses.

These are and shall be understood to be the conditions of

grant of aid. The reason is simple: public funds, when

given as grant and not as loan carry the public

character wherever they go; public funds cannot be donated

for private purposes. The element of public character

necessarily means a fair conduct in all respects consistent

with the constitutional mandate of Articles 14 and 15. All

the Governments and other authorities in charge of granting

aid to educational institutions shall expressly provide for

such conditions (among others), If not already provided, and

shall ensure com-

607

pliance with the same. Again aid may take several forms.

For example a medical college doesnecessarily require a

hospital. The Government may permit it to avail of the

services of a Government hospital for the purpose of the

college free of charge. This would also be a form of aid

and the conditions aforesaid have to be imposed may be

with some relation in the of fees chargeable and observed.

The Governments (Central and State) and all other

authorities granting aid shall impose such conditions

forthwith, if not already imposed. These conditions shall

apply, to exist as well as proposed private educational

institutions. [674F-H, 675A-C]

23.So far as un-aided institutions are concerned they

cannot be compelled to charge the same fee as Is dunged in

Governmental institution, for the reason that they have to

meet the cost of imparting education from their own

resources and the main source, apart from dona-

tions/charities, Many, can only be the fees collected from

the students. It is here that the concepts of 'self-

financing educational institutions' and cost based

educational Institutions come in. However ,

commercialisation of education cannot and should not be

permitted. The Parliament as well as State Lagislatures

have expressed this intention in unmistakable terms. Both

In the light of our tradition and km the stand-point of

interest of public commercialisation is positively harmful;

it is opposed to public policy. [675D-E, 676B]

3.1. Article 19(1)(g) of the Constitution declares

that all citizens of country shall have the right to any

profession, or to carry on any occupation, trade or

business. No opinion Is expressed on the question whether

the right to established an education Institution can be

said to be on any 'occupation' within the meaning of Article

19(1)(g). As- suming that It Is occupation such activity

can In no event be a trade or business nor can it be a

profession within the meaning of Article 19 (1) (g). Trade

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 111

or business normally connotes an activity carried on with a

profit motive. Education has never been commerce In this

country. Making It one is opposed to the ethos, tradition

and sensibilities of ibis nation. The argument to the

contrary has an unholy ring to it. Imparting of education

has never been treated as a trade or business in this

country since times immemorial. It has been treated as a

religious duty, and a charitable activity, but never as

trade or business. Education in Its true aspect is more a

mission and a vocation rather than a profession, trade or

business,

608

however wide may be the denotation of the two latter words.

The Parliament too has manifested its Intention repeatedly

(by enacting the U.G.C. Act, I.M.C. Act and A.I.C.T.E. Act)

that commercialisation of education is not permissible and

that no person shall be allowed to steal a march over a more

meritorious candidate because of his economic power. The

very same intention is expressed by the Legislatures of

Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu In the

Preamble to their respective enactments prohibiting charging

of capitation fee. [676D-H, 677A-D]

3.2.Imparting education cannot be treated as a trade or

business. Education cannot be allowed to be converted into

commence nor can the petitioners seek to obtain the said

result by relying. upon the wider meaning of 'occupation'.

The content of the expression 'occupation' has to be ascer-

tained keeping in mind the fact that clause (g) employs all

the four expressions viz, profession, occupation trade and

business. Their fields may overlap, but each of them does

certainly have a content of its own, distinct from the

others. A law, existing or future, ensuring against the

conversion of imparting of education into commerce would be

a valid measure within the meaning of clause (6) of Article

19. [677F-G]

State of Bombay v. R.M.D. C., [1957] SCR 874, relied on.

The sabar kherda Education Society) Sabar kherda v.' State

of Maharashtra AIR 1968 Bombay 91; Andhra Kesari Education

Society v. Govemment of A.P., AIR 1984 AP. 251 and Bapuji

Educational Association v. State, AIR 1986 Karnataka 119

disapproved.

3.3.The activity of establishing an educational institution,

cannot be called a 'profession' within the meaning of

Article 19(1) (g). It is significant to notice the words

'to practice any profession'. Evidently, the reference is

to such professions as may be practised by citizens i.e,

individuals. [678G]

N.U.C. Employees v. Industrial Tribunal A.I.R. 1962 S.C.

1080, referred to.

3A. Establishing educational institutions can by no stretch

of inaginatiop be treated as 'practising any profession'.

Teaching may be a profession but establishing an

Institution, employing teaching and nonteaching staff,

procuring the necessary infrastructure for running a school

or college Is not 'practising profession'. It may be

anything but not practisIng a profession. It Is not

necessary to go into the precise meaning and

609

content of the expressions profession, occupation, trade or

business in the instant case. The main concern is only to

establish that the activity of establishing and/or running

an educational institution cannot be a matter of commerce.

[678H, 679A-B]

3.5.Assuming that a person or body of persons has a right

to establish an educational institution, this right is not

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 12 of 111

an absolute one. It is subject to such law as may be made

by the State in the interest of general public. However,

the right to establish an educational institution does not

carry with it the right to recognition or the right to

affiliation. [679C]

4.1.Recognition may be granted either by the Government or

any other authority or body empowered to accord recognition.

Similarly, affiliation may be granted either by the

University or any other academic or other body empowered to

grant affiliation to other educational Institutions. In

other words, it Is open to a person to establish an

educational institution, admit students, impart education,

conduct examination and award certificates to them. But be,

or the educational institution, has no right to insist that

the certificates or degrees (if they can be called as such)

awarded by such institution should be recognised by the

State muchless have they the right to say that the

students trained by the institution should be admitted to

examinations conducted by the University or by the

Government or any other authority, as the case may be. The

institution has to seek such recognition or affiliation from

the appropriate agency. [679F-G]

4..2.No educational institution except an University

can award degrees (Sections 22 and 23 of the U.G.C. Act).

The private educational institutions cannot award their own

degrees. Even if they award any certiricates or other

testimonials they have no practical value inasmuch as they

are not good for obtaining any employment under the State or

for admission into higher courses of study. No private

educational institution can survive or subsist without

recognition and/or affiliation. [680F-G]

4.3.The bodies which grant recognition and/or affiliation

are the authoritiesof the State. In such a situation, it

is obligatory in the interest of generalpublic upon

the authority granting recognition or affiliation to insist

upon such conditions as are appropriate to ensure not only

education of requisite standard but also fairness and equal

treatment in the matter of admission of students. Since the

recognising/affiliating authority is the State, it is under

an obligation to impose such conditions as part of Its duty

610

enjoined upon it by Article 14 of the Constitution. It

cannot allow Itself or main activity attach to supplemental

activity as well. Affiliation/recognition is not there for

anybody to get it gratis or unconditionally. No Government,

authority or University is justified or is entitled to grant

recognition/affiliation without imposing such conditions.

Doing so, would amount to abdicating its obligations

enjoined upon It by Part III, its activity Is bound to be as

unconstitutional and illegal [680H, 681A-C]

4.4 The private educational institutions merely supplement

the effort of the State in educating the people. It is not

an independent activity. It is an activity supplemental to

the principal activity carried on by the State. ore, what

applies to the main activity aplies equally to supplemental

activity. The State cannot claim immunity from the

obligations arising from Articles 14 and 15, and so, It

cannot confer such Immunity upon Its affiliates. [680G,

681D]

5.1.Keeping in view the positive features of the several

Central and State enactments, this Court has evolved a

scheme, which every authority granting

recognition/affiliation shall Impose upon the Institutions

seeking recognition/affiliation. The idea behind the scheme

Is to eliminate discretion In the management altogether In

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 13 of 111

the matter of admission. It is the discretion in the matter

of admission that is at the root of the several ills

complainedof and has mainly led to the

commercialisation of education. [681E-F]

5.2.'Capitation Fee' means charging or collecting amount

beyond what is permitted by law-, all the Acts have defined

this expression In this sense. A situation should be

brought where there Is no room or occasion for the

management or anyone on Its behalf to demand or collect any

amount beyond what is permitted. However, charging the

permitted fees by the private educational institutions

which Is bound to be higher than the fees charged in similar

governmental institutions by itself cannot be characterised

as capitation fees. This is the policy underlying all the

four States' enactments prohibiting capitation fees. All of

them recognise the necessity of charging higher fees by

private educational Institutions. They seek to regulate the

fees that can be charged by them which may be called

permitted fees and to bar them from collecting anything

other than the permitted fees, which is what'Capitation

fees' means.The attempt In evolving the scheme precisely is

to give effect to the said legislative policy. It

Its power and privilege to be used unfairly. The incidents

attaching to the

611

would be highly desirable If this scheme is given a

statutory shape by incorporating It in the Rules that may be

framed under these enactments. [681F-H, 682A-B]

53.The scheme evolved is in the nature of guidelines which

the appropriate Governments and recognising and affiliating

authorities should impose and implement in addition to such

other conditions and stipulations as they may think

appropriate as conditions for grant of permission, grant of

recognition or grant of affiliation, as the case may be.The

scheme for the present is confined only to 'professional

colleges' run by private educational institutions. [682C]

5.4.Only those institutions which seek permission to

establish and/or recognition and/or affiliation from the

appropriate authority shall alone be made bound by this

scheme. This scheme is not applicable to colleges run by

Government or to University colleges. Thus, the scheme

should be made a condition of permission, recognition or

affiliation, as the case may be. 'These conditions should

necessarily be imposed, in addition to such other conditions

as the appropriate authority may think appropriate. No

private educational institution shall be allowed to send its

students to appear for an examination held by any Government

or other body constituted by it or under any law or to any

examination held by any University unless the concerned

institution and the relevant course of study is recognised

by the appropriate authority and/or is affiliated to the

appropriate University, at the case may be. [693A-C]

5.5.It shall be open to the appropriate authority and the

competent authority to issue such further instructions or

directions, as they may think appropriate, not inconsistent

with this scheme, by way of elaboration and elucidation.

This scheme shall apply to and govern the admissions to

professional colleges commencing from the academic year

1993-94. [687G-H]

6.1.Until the commencement of the current academic year,

the Andhra Pradesh was following a somewhat different

pattern in the matter of filling the seats in private

unaided engineering colleges. Though all the available

seats were being filled by the allottees of the Convenor

(State) and the managements were not allowed to admit any

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 14 of 111

student on their own a uniform fee was collected from all

the students. The concepts of 'free seats' and 'payment

seats' were, therefore, not relevant in such a situation

612

all were payment seats only. Such a system cannot be said

to be constitutionally provide more opportunities to

meritorious students who may not be the to pay the enhanced

free prescribed by the government for such colleges. The

system devised would mean correspondingly mm financed burden

on payment students whom in the system in vogue in the State

of Andhra Pradesh, the burden is equally distributed among

all the stu. dents. The theretical foundation for the

method devised by the court is that a candidate/studeut who

is stealing a march over his compatriot on account of his

economic power should be made not only to pay for himself

but also to pay for another meritorious student. This is

the social justification behind the 50% rule prescribed in

the scheme. In the interest of uniformity and in the light

of the above social theory, the State of Andhra Pradesh

should adhere to the system devised by the Court [688B-E]

6.2.In the circumstances, it is not necessary for this

Court to go into or answer the question whether grant of

permission to establish and the grant of affiliation Imposes

an obligation upon an educational institution to act fairly

in the matter of admission of the students and It requires

debate in a greater depth and any expression of opinion

thereon at this juncture is not really warranted. [631C,

688F]

7.1.Section 3-A of the Andhra Pradesh Educational

Institutions (Regulation of Admission and Prohibition of

Capitation Fee) Act, 1983 is, in the nature of an exception

to the other provisions of the Act The Sec. don, read as a

whole leads to the following consequences: (a) it is open to

the private eductional institutions to charge as much amount

as they can for admission. It will be a matter of bargain

between the Institution and the student seeking admission;

(b) the admission can be made without reference to inter-se

merit of paying candidates. The institution will be

entitled to pick and choose the candidates among the

applicants on such considerations as It may deem fit; (c)

Section 5, which prohibits collection of capitation fee by

an educational Institution, is expressly made inapplicable

to such admissions. This is not without a purpose. The

purpose Is to permit the institutions to charge as much as

they can in addition to the collection of the prescribed

tuition fee. [689E, G-H,69OA-B]

7.2.The educational activity of the private educational

institutions is supplemental to the main effort by the State

and what applies to the main activity applies equally to the

supplemental activity as well. Since Article 14

tionally not permissible. But the Idea in devising the

scheme has been to

613

of the Constitution applies to the State innstitutions and

compels them to admit students on the basis of merit and

merit alone (subject, of course, to any permissible

reservations wherein too, merit inter-se has to be fol-

lowed) the applicability of Article 14 cannot be excluded

from the supplemental effort/activity. Ile State

Legislature had, therefore, no power to say that a private

educational institution will be entitled to admit students

of its choice, irrespective of merit or that it is entitled

to charge as much as it can, which means a free hand for

exploitation and more particularly, commercialisation of

education, which is impermissible in law. No such immunity

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 15 of 111

from the constitutional obligation can be claimed or

conferred by the State Legislature. On this ground alone,

the Section is liable to fail. Mm section falls foul of

Article 14 and must accordingly fail. The offending

portions of Section 3-A cannot be severed from the main body

of the section and, therefore, the whole section is liable

to fall to the ground. [690C-G]

Kranti Sangran Parishad v. NJ. Reddy, (1992) 3 A.L.T. ",

affirmed..

7.3.Consequent on the striking down of Section 3-A, the

question which arises is as to what should happen to the

students who were admitted by the Private Engineering

Colleges in this State, at their own discretion, to the

extent of the 50% of the available seats. Though the High

Court has invalidated these admissions they are continuing

now by virtue of the orders of stay granted by this Court

Until the previous year, the State Government

has been permitting these private engineering colleges to

collect a higher fees from all the students allotted to

them. Of course, all the available seats were filled up by

students allotted by the convenor of the common entrance

exam; no one could be admitted by these colleges on their

own. For the current year, these colleges admitted 50% of

the students in their own discretion which necessarily

means collection of capitation fees and/or arbitrary

admissions for their own private masons. At the same time

these colleges have been collecting the same fees as was

charged last year both km the students allotted by the

convenor as also-from those admitted by themselves. Thus,

they have reaped a double advantage. Though the admissions

were made In a hurry, but the fact remains that they have

been continuing in the said course under the orders of this

Court over the last about four months. The present

situation has been brought about by a combination of

circumstances namely the enactment of Section 3-A. the

allotment of students to the extent of 50% only by the

convenor and

614

the failure of the Government to immediately rectify the

misunderstanding of the convenor. [691C-E, H, 692A]

7.4. In the circumstances, these students should not be sent

out at this stage. May be, the result Is rather unfortunate

but all the relevant circumstances have to be weighed. At

the same time, the managements of these private engineering

colleges should not be allowed to walk away with the double

advantage referred to above. Since they have admitted

students of their own choice to the extent of 50% and also

because It is not possible to investigate or verify for what

consideration those admissions were made, It is appropriate

that these colleges should charge only that fee from the 50%

free students as is charged for similar courses in the

concerned university engineering colleges. For the

remaining years of their course these colleges shall collect

only the said fee, which for the sake of convenience may be

called the 'government feel. The balance of the amount

which they have already collected during this year shall be

remitted Into the Government account within six weeks.

Whichever college fails to comply with this direction it

will stand disaffiliated on the expiry of six weeks of this

order and the recognition granted to it, if any, by any

appropriate authority shall also stand withdrawn. [692B-E]

Per L.M. Sharma, CJ. (for himself and Bharucha J.)

Concurring

1.1The question whether the right to primary education as

mentioned in Article 45 of the Constitution of India, Is a

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 16 of 111

Fundamental Right under Article 21 did not arises in Mohini

Jain's case and no finding or obserbation on that question

was called for. h cannot be accepted that since a positive

finding on that question was recorded in Mohini Jain's case

it becomes necessary to consider its correctness on merits.

this Court should follow the well established principle of

not proceeding to decide any question A" Is not necessary to

be decided In the case. Therefore. no opinion upon the

question is expressed. However, the finding given In Mohini

Jain's case on this question was not necessary in that case

and Is, therefore not binding law. If It becomes necessary

to decide this question In any subsequent case then having

regard to Its vast impact, inter alia, on the capacity

financial capacity, the question may be referred to a larger

Bench for decision. [622F-G, 623D-E]

Mohini Jain v. State of Karnataka, [1992] 3 S.C.C. 666,

referred to.

615

1.2. Suffice it to say that there is no Fundamental Right to

Education for a professional degree that flows from Article

21. [623F]

Per Mohan J (Concurring)

1.1.Article 21 acts as a shield against deprivation of life

or personal liberty since personal liberty and life have

come to be given expanded meaning It would not be incorrect

to hold that life which means to live with dignity takes

within it education as well. [697E, 705C]

Addl. Dist. Magistrate v. S.S. Shukla, [1976] Supp.

S.C.R. 172, relied on.

1.2.The fundamental purpose of Education is the same at all

times sad In all places. It is to transfigure the human

personality into a pattern of perfectionthrough a

synthetic process of the development of the body,the

enrichment of the mind, the sublimation of the motions

and the illumination of the spirit Education Is a

preparation for a living and for life,when and hereafter.

In the context of a democratic form of government which

depends for its sustenance upon the enlightenment of the

populace education is at once at once a social and political

necessity. Education is enlightenment If the one that leads

dignity to a man. [695C, E, 706G]

University of Delhi v. Ram Nath, [1964] 2 S.C.R. 703, relied

on.

Oliver Brown v. Board of Education of Topeka, US. Supreme

Court Reports 98 Law. Ed. U.S. 347, referred to.

13. It is not correct to say that because Article 21 is

couched in a negative languauge positive rights to life and

liberty are not conferred.The as to why Article 21 did not

positively confer a fundamental right to life or personal

liberty like Article 19 is that great concepts like liberty

and We were purposefully left to gather meaning from

experience. They relate to the whole domain of social and

economic fact. The drafters of the Constitution knew too

well that only a stagnant society remains unchanged. The

right to life and liberty inhere In every man. There is no

need to provide for the time in a positive manner.

Therefore, if really Article 21, which Is the heart of

fundamental brights, has received added meaning from time to

time,there is no justification as to why It cannot be

interpreted in the light of Article 45, wherein the State of

obligated to provide education up to 14 years of within the

prescribed time limit [699D, 697E, G, 701G]

616

Maneka Gandhi v. Union of India A.I.R. 1978 597; Kharak

Singh v. State of UP., [1964] S.C.R. 332; Kesavananda

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 17 of 111

Bharati v. Kerala, [1973] Supp. S.C.R. 1; Puthumma & Ors.

v. State of Kerala & Ors., [1978] 2 S.C.R. 537; American

Constitution in Mussorie v. Holland 252 U.S. 416; State of

M.P. v. Pramod Bhyaratiya & Ors., [1992] 2 Scale 791;

Satwant Singh v. A.P.O. New Deft [1967] 3 S.C.R. 525;

Govinda v. State of UP., [1975] 3 S.C.R. 946; Sunil Batra v.

Delhi Administration [1978] 4 S.C.C. 494; Charles Sobraj v.

Supt. Central Jail, [1979] 1 S.C.R. 111; Hoskot v. State of

Maharashtra, [1979] 1 S.C.R. 192; Hussaini Katoon v. State

of Bihar, [1979] 3 S.C.R. 169; Prem Shankar v. Delhi

Administration [1980] 3 S.C.R. 855; v. State of Maharashtra

[1983] 2 S.C.C. %; A.G. of India v. Lachmadevi, A.I.R. 1986

S.C. 467; Paramananda Katra v. Union of India, [1989] 4

S.C.C. 286; Santistar Builder v. N.K.I Totame, [1990] 1

S.C.C. 520; Bandhua Mukti Morcha v. Union of India [1984] 3

S.C.C. 161; Olga Tellis v. Bombay Municipal Corporation,

[1985] 3 S.C.C. 545; Mohini Jain v. State of Karnataka,

[1992] 3 S.C.C. 666 and State of Andhra Pradesh v. Lavu

Narendranath, [1971] 1 S.C.C. 607, referred to.

1.4.If life is so interpreted as to bring within it right

to education, it has to be interpreted in the light of

directive principles. Harmonious interpretation of the

fundamental rights vis-a-vis the directive principles must

be adopted. [706H, 707A]

State of Kerala & Anr. v. N.M. Thomas & Anr.[1976] 1 S.C.R.

906; Pathumma & Ors. v. State of Kerala & Ors., [1978] 2

S.C.R. 537 and Delhi Development Horticulture Employees'

Union v. Delhi Administration, Delhi & Ors., [1992] 4 S.C.C.

99, referred to.

Constituent Assembly Debates, 1948-49, Vol.VI, pp. 909 and

910, referred to.

2.1.A time limit was prescribed under Article 45. Such a

time limit is found only here. If, therefore, endeavour has

not been made till now to make this Article reverberate with

life and articulate with meaning, the Court should step in.

The State can be obligated to ensure a right to free

education of every child upto the age of 14 years. [713E]

Norma Bernstein, Human Rights and Education, Vol.. 3 p.41;

John Ziman, World of Science and the Rule of Law, 1986 Edn.

p.49, referred to.

617

2.2.Higher Education calls heavily on national economic

resources. The right to it must necessarily be limited in

any given country by its economic and social circumstances.

The State's obligation to provide it is, therefore, not

absolute and immediate but relative and progressive. It has

to take steps to the maximum of its available resources with

a view to achieving progressively the full realization of

the right of education by all appropriate means. But, with

regard to the general obligation to provide education, the

State is bound to provide the same, if it deliberately

starved its educational system by resources that it

manifestly had, unless it could show that it was allocating

them to some even more pressing programme. Therefore, by

holding education as a fundamental right up to the age of 14

years this Court is not determining the priorities. On the

contrary, reminding it of the solemn endeavour, it has to

take, under Article 45, within a prescribed time, which time

limit has expired long ago. [716D-F]

2.3.Therefore, right to free education up to the age of 14

years is a fundamental right. Since fundamental rights and

directive principles are complementary to each other, there

is no reason why this fundamental right cannot be

interpreted in this manner. Mohini Jain's case had laid

down the law somewhat broadly when it stated education at

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 18 of 111

all levels. This must be confined to what is envisaged

under Article 45. [719H, 717B, 716B]

San Antonio Independent School District v. Rodrigues, [1973]

411 U.S., referred to.

Mohini Jain v. State of Karnataka, [1992] 3 S.C.C. 666,

partly affirmed.

California Law Review, Vol. 57 19699 p. 380, referred to.

3.It cannot be said that establishment of an educational

institution would be 'business'. Nor again, could that be

called trade since no trading activities are carried on.

Equally, it is not a profession. It is one thing to say

that teaching is a profession but, it is a totally different

thing to plead that establishment of an educational

institution would a profession. It may perhaps fall under

the category of occupation provided no recognition is sought

from the State or affiliation from the University is asked

on the basis that it is a fundamental right. [724G-H]

P.V G. Raju v. Commissioner of Expenditure, I.T.R. Vol.

86 p.267; P.K Menon v. Income-tax Commissioner, [1959] Supp.

1 S.C.R. 133; Hindustan

618

Steel Limited v. State of Orissa, [1970] 1 S.C.R. 753 and

Barendra Prasad Ray v. The Income-tax Officer, A.I.R. 1981

S.C. 1047, referred to.

Water Supply and Sewerage Board v. R. Rajappa [1978] 3

S.C.R. 207 and Miss. Sundaranbai v. Government of Goa,

[1988] Suppl. 1 S.C.R. 604, distinguished.

P.Ramanatha Aiyar, Law Lexicon Reprint, Edn. 1987 p.897;

Black Law Dictionary, Fifth Edn. p.973 and Ramnath Iyer, Law

Lexicon, Edn. 1987, referred to.

4.1.Educational Institutions can be classified under two

categories (1) those requiring recognition by the State and,

(2) those who do not require such a recognition. [725F]

4.2.There is absolutely no fundamental right to recognition

in any citizen. The right to establishment and run the

educational institution with State's recognition arises only

on the State permitting, pursuant to a policy decision or on

the fulfilment of the conditions of the Statute. Therefore,

where It is dependent on the permission under the Statute or

the exercise of an executive power, it cannot qualify to be

a fundamental right. Then again the State policy may

dictate a different course. [725G-H, 726A]

4.3.The logical corollary of holding that a fundamental

right to establish an educational Institution is available

under Article 19(1)(g) would lead to the proposition, right

to establish a university also. [726B]

S.Azeez Basha & Anr. v. Union of India [1968] 1 S.C.R.

833, referred to.

4.4.If there is no fundamental right to establish a

university a fortiori a fundamental right to establish an

educational institution is not available. By implication

also, a fundamental right of the nature and character

conferred under Article 30 cannot be read into Article

19(1)(g). The conferment of such a right on the minorities

in a positive way under Article 30 negatives the assumption

of a fundamental right in this behalf in every citizen of

the country. [727A-B]

Ahmedabad St. Xaviers College Society v. State of Gujarat,

[1975] 1 S.C.R. 173, referred to.

619

4.5.Every activity or occupation by the mere fact of its

not being obnoxious or harmful to society cannot by Itself

be entitled to protection as fundamental right. Some

rights, by the my very nature cannot be qualified to be

protected as fundamental rights. [729B]

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 19 of 111

4.6.Accordingly, there is no fundamental right under

Article 19(1)(g) to establish an educational institution, if

recognition or affiliation is sought for such an educational

institution. However, anyone desirous of starting an

institution purely for the purposes of education the

students could do so, but 22 and 23 of the University grants

C ion Act Which prohibits the award of degrees except by

a University most be kept in mind. [729C-D]

5.It is not possible to hold that a private educational

institution either by recognition or affiliation to the

university could ever be called an instrumentality of State.

Recognition is for the purposes of conforming to the

standards laid down by the State. Affiliation is with

regard to the syllabi and the course of study. Unless and

until they are'in accordance with the prescription of the

university, degrees would not be conferred The educational

Institutions prepare the students for the examination

conducted by the university. Therefore, they are obliged to

follow the syllabi and the course of the study. [732B-C]

Ajay Hasia v. Khalid Mujib Sehravardi [1981] 2 S.C.R. 79;

Tekraj Vasandi v. Union of India, [1989] 1 S.C.C. 236 and

All India Sainik Schools Employees' Assn. v. Sainik Schools

Society, [1989] Supp. 1 S.C.C. 205, relied on.

6.1.These private institutions discharge a public duty. If

a student desires toacquire a degree, for example, In

medicine, he will have to route through a medical college.

These medical colleges are the Instruments to attain

thequalification. Therefore, since what Is discharged by

the educational institution is a public duty, that requires

it to act fairly. In such a case, it will be subject to

Article 14. [732D]

6.2.These educational institutions discharge public duties.

Irrespective of the educational institutions receiving aid,

it is a public duty. If absence of aid does not detract

from the nature of duty. [737C]

Andi Mukta Sadguru Shree Muktajee Vandas Swami Suvarna

Jayanti

620

Mahotsav Samarak Trust v. V.& Rudani [1989] 2 S.C.C. 691 and

R.V. Panel on Take-Overs, 1987 1 All England Reports 564,

relied on.

7.1.As on today, it would be unrealistic and unwise to

discourage private initiative in providing educational

facilities, particularly for higher education. The private

sector should be involved and indeed encouraged to augment

the much needed resources in the filed of education, thereby

making as much progress as possible In achieving the

constitutional goals in this respect Private colleges are

the felt necessities of time. That does not mean one should

tolerate the so-called colleges run In thatched huts with

hardly any equipment, with no or Improvised laboratories,

scam facility to learn in an unhealthy atmosphere, for from

conducive to education. Such of them most be put down

ruthlessly with an iron hand irrespective of who has started

the institution or who desires to set up such an

institution.They are poisonous weeds In the field of

education. Those who venture are financial adventurers

without morals or scruples. Their only aim is to make

money, driving a hard bargain, exploiting eagerness to

acquire a professional degree which would be a passport for

employment In a country rampant with unemployment. They

could be even called pirates In the high seas of education.

[742A-D)

7.2.However, not all the private Institutions belong to

this category There are institutions which have attained

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 20 of 111

great reputation by devotion and by nurturing high

educational standards. They surpass the colleges run by the

Government In many respects. They require encouragement

From this point of view regulatory controls have to be

continued and strengthened. The commercialisation of

education, the racketeering must be prevented. The State

should strive its utmost in this direction. [743C]

7.3.Regulatory measures must so ensure that private

educational institutions maintain minimum standards and

facilities. Admission within all groups and categories

should be based only on merit There may be reservation of

seats in favour of the weaker sections of the society and

other groups which deserve special treatment. The norms for

admission should be predetermined, objective and transparent

[743D-E]

7A. Profiteering is an evil. If a public utility like

electricity could be controlled, certainly, the professional

colleges also require to be regulated. [744A]

621

Kerala State Electricity Board v. S.N. Govinda Prabhu,

[1986] 3 S.C.R.; Suman Gupta and Ors. v. State of J & K and

Ors., [1983] 3 S.C.R. 985; Oil and Natural Gas Commission

and Anr. v. Association of Natural Gas Consuming Industries

of Gujarat and Ors., [1990] Supp. S.C.C. 397 and Hindustan

Zinc Ltd. v. A.P.S.E.B., [1991] 3 S.C.C. 2", referred to.

8.It is not correct to say that education must be

available free and it must be run on a charitable basis.

The time is not yet ripe to hold that education must be made

available on a charitable basis, though whenever trusts are

made for advancement of education it was held to be a

charitable purpose. [746C, 747H, 748A]

St. Stephen's College v. University of Delhi, [1992] 1

S.C.C. 558; Special Commissioners of Income-tax v. Pemsel, 3

Tax Cases 53; The king v. The Commissioner for Special

Purposes of the Income-tax, 5 Tax Cases 408 and The Abbey

Malvem Wells Ltd. v. Minister of Town and Country Planning

1951 (2) All England Law Reports 154, referred to.

P.R. Ganapathy Iyer. The Law relating to Hindu and

Mahomedan Endowments, Chap. III p.46 & 49; B.K. Mukherje :

The Hindu Law of Religious and Chariatable Trust, p.58 para

2.7A, referred to.

JUDGMENT:

CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No.607 of

1992.

Under Article 32 of the Constitution of India.

WITH

W.P.(C) Nos. 657, 602 & 678/92, SLP(C)No. 11852/92, W.P.(C)

No.701, 770 & 729/92 SLP(C) No. 13263, 12830 & 13913/92 with

I.A. Nos. 2-5, 13914 and 12845-58/92, W.P. (C) No. 785 &

836/92, SLP(C)No. 13940/92, W.P.(C) No. 779/92, 2337-

2338/83, C.A. No. 3573/92, W.P.(C) No.870/92, 855/92 &

SLP(C) No.15039 of 1992.

Milon Kumar Banerjee, Attorney General, Dipankar Prasad

Gupta, Solicitor General, V.R. Reddy, Additional Solicitor

General, K.K. Venugopal, Santosh Hegde, K. Parasam, Shanti

Bhushan, Kapil Sibal, R.K.Jain, Ms. Indira Jaising, C.S.

Vaidyanathan, D.D.Thakur, V.M.Tarkunde, Har Dev Singh,

Sushil Kumar, Rana Jois, S.S. Javeli, S.K Dholakia Ashok

Desai, C. Sitaramaiah Harish N. Salve, Madhunaik Nair,

622

Suchinto Chatterji, P.P. Tripathi, K.V. Mohan, Ejaz Maqbool,

Vijai Kumar, V. Balachandran, S.R. Bhat, A.V. Rangam, A.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 21 of 111

Ranganadhan, W.C. Chopra, Satish Parasaran, Jayant Bhushan,

A. Subha Rao, Ms. Bharati Reddy, Ms. Pramila, T.V.S.

Narasimhachari Naresh Kaushik, Navin Batra, B.

Veerabhadrappa, Shankar Divate, Mrs. Lalitha Kaushik, S.C.

Patel Mohan V. Katarki Shambhu Prasad Singh, Rajeshwar

Thakur, Ms. Rani Jethmalani, KV. Viswanathan, Madhu Naik,

K.V. Venkataraman, K. Ram Kumar, Vivek Gambhir, S.K Gambhir,

B.E. Avadh, M.D. Adkar, C.B. Babu, Smt. Ayajai C.V. Subba

Rao, A.Mariarputham, Mrs. Aruna Mathur, Dr. Sumant Bhardwaj,

Anuputham, Aruna & Co., Ms. Madhu Moolchandani S.A.

Sequeira, G.K Shevgoor, R.P. Wadhwani, Dr. J.P. Verghese,

M.P. Raju, LJ. Vadakara, P.R. Ramasesh, Anip Sachthey, S.S.

Khanduja, Yashpal Dhingra, B.K. Satija, A.M. Majumdar,

Sanjay Parikh, A.K. Panda, Karanja Wala, Ajay Malviya,

Ranjan Mukherjee, R.K. Mehta, J.R. Das, D.K. Sinha, Mrs.

Bharati Sharma, Mrs. Rani Chhabra, Dr. Sumant Bhardwaj, R.S.

Hegde, K.R. Nagaraja, Sunil Dogra, Smiriti Misra, Ms.

Madhavan, P.H. Parekh, A.S. Bhasme, Vimal Dave and B.

Rajeshwar Rao for the appearing parties.

The Judgments of the Court were delivered by

SHARMA, CJ. We have had the benefit of going through the

two judgments of our learned Brothers B.P Jeevan Reddy and

S. Mohan, JJ. We are in agreement with the judgment of

Brother B.P. Jeevan Reddy, J. except to the extent indicated

below.

2.The question which arose in the case of Miss Mohini

Jain v. State of Karnataka, [1992] 3 SCC 666, as also in the

present cases before us, is whether a citizen has a

Fundamental Right to education for a medical, engineering or

other professional degree. The question whether the right

to primary education, as mentioned in Article 45 of the

Constitution of India, is a Fundamental Right under Article

21 did not arise in Mohini Jain's case and no finding or

observation on that question was called for. It was

contended before us that since a positive finding on that

question was recorded in Mohini Jain's case it becomes

necessary to consider its correctness on merits. We do not

think so.

3.Learned arguments were addressed in support of and

against the aforesaid view which have been noticed in the

judgments of our learned Brothers. It was contended by

learned counsel appearing for some of the

623

parties before us that Article 37 in Part IV of the

Consititution expressly states that the provisions contained

in Part IV shall not be enforceable by any court and that,

therefore, assuming the right under Article 45 to be

included within the ambit of Article 21, it would still not

be enforceable. Emphasis was also laid upon the language

used in Article 45 which requires the State to "endeavour to

provide' for the free and compulsory education of children.

A comparison of the language of Article 45 with that of

Article 49 was made and it was suggested that whereas in

Article 49 an 'obligation' was placed upon the State, what

was required by Article 45 was "endeavour" by the State. We

are of the view that these arguments as also the arguments

of counsel on the other side and the observations in the

decisions relied upon by them would need a thorough

consideration, if necessary by a larger Bench, in a case

where the question squarely arises.

4.Having given our anxious consideration to the arguments

in favour of and against the question aforementioned, we are

of the view that we should follow the well established

principle of not proceeding to decide any question which is

not necessary to be decided in the case. We, therefore, do

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 22 of 111

not express any opinion upon this question except to hold

that the finding given in Mohini Jain's case on this

question was not necessary in that case and is, therefore,

not binding law. We are of the view that if it becomes

necessary to decide, his question in any subsequent case

then, for the reasons set out above and having regard to its

vast impact, inter alia on the country's financial capacity,

the question may be referred to a larger Bench for decision.

5.For the purposes of these cases, it is enough to state

that there is no Fundamental Right to education for a

professional degree that flows from Article 21.

B.P. JEEVAN REDDY, J. In these writ petitions, filed by

private educational institutions engaged in or proposing

to engage in imparting medical and engineering education

the correctness of the decision rendered by a Division Bench

comprising Kuldip Singh and R.M. Sahai JJ. in Miss Mohini

Jain V. State of Karnataka and Ors., is called in question.

The petitioners,running medical/engineering colleges in the

States of Andhra Pradesh, Karnataka, Maharashtra and Tamil

Nadu, say that if Mohini Jain is correct and is followed and

implemented by the respective State Governments as indeed

they are bound to they will have to close

624

down; no other option is left to them. It is, therefore,

necessary in the first instance to ascertain what precisely

does the said decision lay down.

2.The Karnataka Legislature enacted, in the Year 1984,

the Karnataka Educational Institutions (Prohibition of

Capitation fee) Act. The preamble to the Act recites:

"An Act to prohibit the collection of

capitation fee for admission to educations

institutions in the State of Karnataka and

matters relating thereto;

Whereas the practice of collecting capitation

fee for admitting students into educational

institutions is widespread in the State;

And whereas this undesirable practice beside

contributing to large scale commercialisation

of education has not been conducive to the

maintenance of educational standards;

And whereas it is considered necessary to

effectively curb this evil practice in public

interest by providing for prohibition of

collection or capitation fee and matters

relating thereto;

Be it enacted by the Karnataka State

Legislature in the

Thirty-Fourth Year of the Republic of India as

follows"

Clause (b) of Section 2 defines the expression

'Capitation fee in the following words:

"2(b)Capitation fee' means any amount, by

whatever name called, paid or collected

directly or indirectly in excess of the fee

prescribed under s"on 5, but does not include

the deposit specified under the proviso to

section 3."

Section 3 prohibits collection of. capitation fees by any

educational institution or anyone connected with its

management, notwithstanding any other law for the time being

in force. The Section along with its proviso reads thus.

625

"3. Collection of capitation fee prohibited.

Notwithstanding anything contained in any law

for the time being in force, no capitation fee

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 23 of 111

shall be collected by or on behalf of any

educational institution or by any person who

is incharge of or is responsible for the

management of such institution:

Provided.......................

Section 5, which is the other provision

referred to in the aforesaid definition reads

as follows:

5. Regulation of fees etc. (1) It shall be

competent for the Government, by notification,

to regulate the tuition fee or any other fee

or deposit or other amount that may be

received or collected by any educational

institution or class of such institutions in

respect of any of all class or classes of

students.

(2)No educational institution shall collect

any fees or amount or accept deposits in

excess of the amounts notified under sub-

section (1) or permitted under the proviso to

section 3.

(3)Every educational institution shall

issue an official receipt for the fee or

capitation fee or deposits or other amount

collected by it.

(4)All monies received by any educational

institution by way of fee or capitation fee or

deposits or other amount shall be deposited in

the account of the institution, in any

Scheduled Bank and shall be applied

and expended for the improvement of the

institution and the development of the

educational facilities and for such other

related purpose and to such extent and in such

manner as may be specified by order by the

Government.

(5)In order to carry out the purposes of

sub-section (4), the Government may require

any education institution to submit their

programmes or plans of improvement and

development of the institution for the

approval of the

626

Government."

3.Section 4 provides for regulation of admission in the

educational institutions in the State. According to sub-

section (1), the maximum number of students for admission

that can be admitted to a course of study and the minimum

qualifications shall be fixed by the Government. However,

in the case of a course of study in an institution

maintained by or affiliated to the University, the minimum

qualifications shall be fixed by the University and not by

the Government. Sub-sections (2) and (3) of Section 4

pertain to 'regulation of capitation fee during the period

specified under the proviso to Section 3. In view of their

importance, these sub-sections may be set out in full :

"(2) in order to regulate the capitation fee

charged or collected during the period

specified under the proviso to section 3, the

Government may, from time to time, by general

or special order, specify in respect of each

private educational institution or class or

classes of such institutions.

(a) the number of seats set apart as

Government seats:

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 24 of 111

(b) the number of seats that may be filled

up by the

management of such institution.

(i) from among Karnataka students on the

basis of merit, on payment of such cash

deposits refundable after such number of

years, with or without interest as may be

specified therein, but without the payment of

capitation fee; or

(ii) at the discretion

Provided that such number of seats as may be

specified by the Government but not less than

fifty per cent of the total number of seats

referred to in the clauses (a) and (b) shall

be filled from among Karnataka students.

Explanation. For the purpose of this section

Karnataka students means persons who have

studied in such educational institutions in

the State of Karnataka run or recog-

627

nised by the Government and for such number of

years as the Government may specify;

(3) an educational institution required to

fill seats in accordance with item (1) of sub-

clause (b) of clause (2) shall form a

committee to select candidates for such seats.

A nominee each of the Government and the

University to which such educational

institution is affiliated shall be included as

members of such committee."

These two sub-sections, in short, say: (i) it shall be open

to the Government to specify the number of seats that may be

set apart as "Government seats' in any private educational

institution or in a class or classes of such institutions;

(ii) The Government can also specify that out of the seats

to be filled by the Management (Management quota), a

particular number of seats may be filled from among

Karnataka students, on the basis of merit on payment of such

refundable deposit as may be prescribed; The government can

also specify the number of seats that may be filled at the

discretion of the management. (It is obvious that if the

seats to be filled on the basis of merit/refundable deposit

are not specified, all the seats other than "Government

seats" can be filled at the discretion of the management;)

(iii) the number of 'Karnataka students' (which expression

is defined by the explanation) should not be less than 50%

over-all; (iv) in case, the number of seats to be filled on

merit-cum-refundable deposit are specified, a selection

committee, as contemplated by sub-section (3) has to be

formed for making the selection. The expression "Government

seats" is defined in clause (e) of Section 2 in following

words:

"(e) "Government Seats" means such number of

seats in such educational institution or class

or classes of such institutions in the state

as the Government may, from time to time,

specify for being filled up by it in such

manner as may be specified by it by general or

special order on the basis of merit and

reservation for Scheduled Castes, Scheduled

Tribes, Backward Classes and such other

categories, as may be specified, by the

Government from time to time, without the

requirement of payment of capitation fee or

cash deposit."

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 25 of 111

4. In exercise of the power conferred by

section 5 of the Act, the

628

Government of Karnataka issued a notification on June 5,

1989. It provided that from the academic year 1989-90, the

fees payable in private medical colleges shall be Rs.2,000

p.a. in case of students admitted against 'Government Seats'

(the same as in the Government Medical Colleges), Rs.25,000

in the case of other Karnataka students and Rs.60,000 in the

case of non-Karnataka students.

5.Miss Mohini Jain, a non-Karnataka student (she was from

Meerut in Uttar Pradesh) applied for admission in M.B.B.S.

course in one of the private medical colleges in Karnataka.

She was informed by the college that if she pays Rs. 60,000

towards the first year's tuition fee and furnishes a bank

guarantee for the fees payable for the remaining years of

the M.B.B.S. course, she will be admitted. Her parents

were not in a position to pay the same and hence she could

not be admitted. Her further case, which was denied by the

Management of the college, was that she was asked to pay a

capitation fee of Rs.4,50,000 as a condition of admission.

She approached this court under Article 32 challenging the

aforesaid notification of the Karnataka Government and

asking for a direction to be admitted on payment of the same

fee as was payable by the Karnataka students admitted

against the "Government Seats".

6. The Bench which heard and disposed of the writ petition

framed four questions as arising for its consideration

viz., (i) Is there a 'right to education' guaranteed to

the people of India under the Constitution ? If so, does

the concept of 'capitation fee' infract the same ? (ii)

Whether the charging of capitation fee in consideration of

admission to educational institutions is arbitrary, unfair,

unjust and as such violates the equality clause contained in

Article 14 of the Constitution ? (iii) Whether the impugned

notification permits the Private Medical Colleges to charge

capitation fee in the guise of regulating fees under the Act

? and (iv) Whether the notification is violative of the

provisions of the Act which in specific terms prohibits the

charging of capitation fee by any educational institution in

the State of Karnataka ?

7. On the first question, the Bench held, on a consideration

of Articles 21, 38, 39(a) and (f), 41 and 45 of the

Constitution:

(a) "the framers of the Constitution made it obligatory for

the State to provide education for its citizens";

629

(b)the objectives set forth in the preamble to the

Constitution cannot be achieved unless education is provided

to the citizens of this country,

(c)the preamble also assures dignity of the individual.

Without education, dignity of the individual cannot be

assured;

(d)Parts III and IV of the Constitution are supplementary

to each other. Unless the 'right to education' mentioned in

Article 41 is made a reality, the fundamental rights in Part

III will remain beyond the reach of the illiterate majority,

(e)Article 21 has been interpreted by this Court to

include the right to live with human dignity and all that

goes along with it. "The 'right to education' flows

directly from right to life.' In other words, 'right to

education' is concomitant to the fundamental right enshrined

in Part III of the Constitution. The State is under a

constitutional mandate to provide educational institutions

at all levels for the benefit of citizens." The benefit of

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 26 of 111

education cannot be confined to either classes.

(f)Capitation fee is nothing but a consideration for

admission. The concept of "teaching shops" is alien to our

Constitutional scheme. Education in India has never been a

commodity for sale.

(g)"We hold that every citizen has a 'right to education'

under the Constitution. The State is under an obligation to

establish educational institutions to enable the citizens to

enjoy the said right. The State may discharge its

obligation through state-owned or state-recognised

educational institutions. When the State Government grants

recognition to the private educational institutions it

creates an agency to fulfil its obligation under the

Constitution. The students are given admission to the

educational institutions whether state-owned or state-

recognised in recognition of their 'right to education'

under the Constitution. Charging capitation fee in

consideration of admission to educational institutions, is a

patent denial of a citizen's right to education under the

Constitution."

8.On the second question, the Bench held that "the State

action in permitting capitation fee to be charged by state-

recognised educational institutions is wholly arbitrary and

as such violative of Article 14 of the Constitution of

India........... The Capitation fee brings to the fore a

clear class bias." Admission of non-meritorious students by

charging capitation

630

fees in any form whatsoever strikes at the very root of

the constitutional scheme and our educational system. D.P.

Joshi does not come to the rescue of the private

institutions.

9.On the third question, the Bench held that having regard

to the scheme of the Act, charging of Rs. 60,000 for

admission is 'nothing but a capitation fee'. The private

medical colleges have further been given a free hand in the

matter of admission of non-Karnataka students irrespective

of merit. It held further : "if the State Government fixes

Rs. 2000 per annum as the tuition fee in government colleges

and for "Government Seats' in private medical colleges then

it is the state-responsibility to see that any private

college which has been set up with Government permission and

is being run with Government recognition is prohibited from

charging more than Rs. 2000 from any student who may be

resident of any part of India. When the State Government

permits a private medical college to be set-up and

recognises its curriculum and degrees then the said college

is performing a function which under the Constitution has

been assigned to the State Government. We are therefore of

the view that Rs. 60,000 per annum permitted to be charged

from Indian students from outside Karnataka in Para 1 (d) of

the notification is not tuition fee but in fact a capitation

fee and as such cannot be sustained and is liable to be

struck down."

10.The notification impugned was accordingly held to be

outside the scope of the Act and bad. (It was declared that

the judgment shall not be applicable to foreign students and

N.R.Is.). The Writ petition was allowed accordingly but

Mohini fain was denied admission since "she was not admitted

to the college 3n merit and secondly the course commenced in

March-April, 1991." (The decision was rendered on

30.7.1992). It was directed that the said decision shall

have only prospective operation and shall not affect the

admissions already made in accordance with the said

notification.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 27 of 111

It is the above propositions that have provoked this batch

of writ petitions.

11. Mohini Jain was followed by a Full Bench of the Andhra

Pradesh High Court in Kranti Sangram Parishad v. NJ. Reddy,

(1992) 3 A.L.T. 99. the Respondents in those writ petitions

including the State of Andhra Pradesh have filed a number of

S.L.Ps. seeking leave to appeal against the said judgment.

In the said S.L.Ps., certain issues peculiar to those

matters

631

arise, which we are not dealing with herein. This decision

is concerned mainly with the correctness of Mohini jain and

the following three questions, which were framed by us at

the hearing. The three questions are:

(1)Whether the Constitution of India guarantees a

fundamental right to education to its citizens ?

(2)Whether a citizen of India has the fundamental right to

establish and run an educational institution under Article

19(1)(g) or any other provision in the Constitution ?

(3)Whether the grant of permission to establish and the

grant of affiliation by a University imposes an obligation

upon an educational institution to act fairly in the matter

of admission of the students ?

Before we deal with the above questions, it would be

appropriate to notice the legal and relevant factual

position obtaining in three others States, namely Andhra

Pradesh, Maharashtra and Tamil Nadu. All the matters before

us arise from these four States only. Notice in these

matters were however directed to all the States in the

country. None has appeared excepting the above four States.

ANDHRA PRADESH

12.The Andhra Pradesh Education Act, 1982 was enacted by

the State Legislature with a view to consolidate and amend

the laws relating to the educational system in the State of

Andhra Pradesh, for reforming, organising and developing the

said educational system and to provide for matters connected

therewith or incidental therewith. By virtue of sub-section

(3) of Section 1, it applies to all educational institutions

and tutorial institutions in the State except those governed

by the University Acts or the A.P. Intermediate Education

Act, 1971. Section 2 defines certain expressions occurring

in the Act. Clause (11) defines the expression 'college' to

include a medical college established or maintained and ad-

ministered by or affiliated to or associated with or

recognised by any University in the State. Clause (18)

defines 'educational institution' to mean recognised schools

and colleges including Medical Colleges. Chapter-VI

(Sections 18 to 33) deals with establishment of educational

institutions, their administration and control. Section 18

says that Government may, for the purpose of implementing

the provisions of the Act, provide adequate

632

facilities for imparting education either by establishing

and maintaining educational institutions by itself or by

permitting any local authority or private body of persons to

establish and maintain educational institutions. Section 19

classifies the educational institutions into (a) State

institutions (b) local authority institutions and (c)

private institutions. Section 20 deals with grant of

permission for establishment of educational institutions.

It says that the competent authority (as defined in Clause

(12) of Section 2) shall from time to time conduct a survey

to identify the educational needs of the locality under its

jurisdiction and notify in the prescribed manner through the

local newspapers calling for applications from the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 28 of 111

educational agencies desirous of establishing educational

institutions. In pursuance of such notification,

applications may be filed either by existing institutions or

new institutions as also by local authorities for

establishment of new institutions or for expansion of the

existing ones. Sub-section (3) prescribes the requirements

which have to be satisfied by an applicant, the matters with

respect to which the competent authority has to be satisfied

before grant of permission and the steps that have to be

taken by the person (to whom the permission is granted)

within the specified period. According to the sub-section,

an application has to be accompanied by (1) title deeds

relating to the site for building, play-grounds and garden

proposed to be provided. (2) Plans approved by the local

authorities concerned which shall conform to the rules

prescribed therefore and (3) documents evidencing

availability of the financing needed for constructing the

proposed buildings. The Authority must be satisfied before

granting the permission that there is a need for providing

educational facilities to the people in the locality, that

there is adequate financial provision for continued and

efficient maintenance of the institution as prescribed by

the competent authority and evidence that the institution

is proposed to be located in sanitary and healthy

surroundings. The local authority or the body of persons to

whom the permission is granted has to appoint the teaching

staff qualified according to the rules made by the

Government in this behalf and satisfy other requirements

laid down by the Act, rules and the orders made thereunder,

within the period specified by the authorities. In

default of such compliance, it shall be competent to the

Authority to cancel the permission. Sub-section (4) makes

it punishable for anyone to establish an educational

institution otherwise than in accordance with the provisions

of the Act Anyone running an institution after cancellation

of the permission is also punishable.

633

13.Section 20-A declares that on and from the commencement

of the A.P. Education (Amendment) Act, 1987, no individual

shall establish a private institution. The institutions

already established by individuals however are not affected

by the said provision. Section 21 deals with grant and

withdrawal of recognition of institution. It provides that

the competent authority may by order in writing grant

recognition to an educational institution permitted to be

established under Section 20 subject to such conditions as

may be prescribed in regard to the accommodation, equipment,

appointment of teaching staff and so on. It further

provides that if any local authority or other private

educational institution fails to fulfil all or any of the

conditions of recognition or commits any of the other

irregularities mentioned in sub-section (2), its recognition

may be withdrawn. It is not necessary to notice to other

provisions in the Act.

14.In the year 1983, the Legislature of Andhra Pradesh

enacted the Andhra Pradesh Educational Institutions

(Regulation of Admission and Prohibition of Capitation Fee)

Act, 1983. The Act was made to provide for regulation of

admission into educational institutions and to prohibit the

collection of capitation fee in the State of Andhra Pradesh.

It would be appropriate to notice the preamble to the Act.

It reads:

"Whereas the undesirable practice of

collecting capitation fee at the time of

admitting students into educational

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 29 of 111

institutions is on the increase in the State;

And whereas, the said practice has been

contributing to large scale commercialisation

of Education;

And whereas, it is considered necessary, to

effectively curb this evil practice in order

to avoid frustration among the meritorious and

indigent students and to maintain excellence

in the students of education;

Be it enacted by the Legislature of the State

of Andhra Pradesh in the Thirty-fourth year of

the Republic of India as follows:'

15.The Act was brought into force on and with effect from

30th January, 1983. Section 2 contains the interpretation

Clause. Clause (b) defines the expression 'capitation fee"

to mean any amount collected in

634

excess of the fee prescribed under section 7. Section 3

provides that admission into educational institutions in the

State shall be made on the basis of the marks obtained in

the qualifying examination or on the basis of the ranking

assigned in the entrance test conducted by such authority

and in such manner as may be prescribed. So far as Medical

and Engineering colleges are concerned, it is provided that

admission thereto shall be made exclusively on the basis of

the ranking assigned in the entrance test. The State has

also reserved to itself the power to specify seats for

Scheduled Castes, Scheduled Tribes and Backward classes.

Section 4 provides that even a minority educational

institutions shall have to admit students on the basis of

merit while admitting the students belonging to that

minority or other students. Section 5 prohibits the

capitation fee. It says 'the collection of any capitation

fee by any educational institution or by any person who is

incharge of or is responsible for the management of the

institution is hereby prohibited.' Section 6 says that any

donations made to educational institution shall be made only

in the prescribed manner and not otherwise, and that the

money so received shall be deposited and applied in the

prescribed manner.

Section-7 regulates the fee that can be charged by an

educational institution. It would be appropriate to read

the section here in its entirety:

7. (1) 'It shall be competent for the

Government by notification, to regulate the

tuition fee or any other fee that may be

levied and collected by any educational

institution in respect of each class of

students.

(2)No educational institution shall collect

any fees in excess of the fee notified under

sub-section (1).

(3)Every educational 'institution shall

issue an official receipt for the fee

collected by it."

Section 9 provides for penalties in case of contravention of

the provisions of the Act. The punishment prescribed is not

less than three years and not exceeding seven years, in

addition to fine. Section 15 confers upon the Government

the power to make rules to carry out the purposes of the

enactment.

16. The 1983 Act was amended in the year

1992 by inserting Section

635

3-A, which section reads as follows:

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 30 of 111

"Notwithstanding anything contained in Section

3, but subject to such rules as may be made in

this behalf and the Andhra Pradesh Educational

Institutions (Regulation of Admission) Order

1974, it shall be lawful for the management of

any un-aided private Engineering College,

Medical College, Dental College and such other

class of un-aided educational institutions as

may be notified by the Government in this

behalf to admit students into such Colleges or

educational institutions to the extent of one

half of the total number of seats from among

those who have qualified in the common

entrance test or in the qualifying

examination, as the case may be, referred to

in sub-section (1) of Section-3 irrespective

of the ranking assigned to them in such test

or examination and nothing contained in

Section 5 shall apply to such admission."

It is necessary to notice what precisely this Section

provides for. It starts with a non-obstante clause

'Notwithstanding anything contained in Section 3, but

subject to such rules as may be made in this behalf and the

Andhra Pradesh Educational Institutions (Regulation of

Admission) Order 1974 (Presidential order issued under

Article 371-D of the Constitution)"; it then says that it

shall be lawful for the management of any un-aided private

Engineering college, Medical College, Dental College and

such other class of un-aided educational institutions as may

be notified by the Government in this behalf to admit

students into such Colleges or educational institutions to

the extent of 50 per cent of the seats from among those

qualified in the entrance test or the qualifying

examination, as the class may be; the section says further

rather curiously that the educational institution shall be

entitled to admit them irrespective of the ranking assigned

to them in the entrance test or qualifying examination and

further that nothing contained in Section 5 shall apply to

such admission. In short it means that it is open to a

private medical/engineering college to admit students of its

choice to the extent of 50 per cent so long as they have

qualified in the common entrance test without regard to

the ranking and/or merit. The dispensing with of the

Section 5 for the above purpose is a clear indication that

it is open to the institution to collect such capitation fee

as it can from such students. Of course, the tuition fee'

shall be same as is prescribed by

636

the Government under Section 7.

Section 3-A came into force on 15.4.1992. No Rules have been

made by the Government under the Section so far.

17.On 25.5.1992, the Government issued a notification

inviting applications for permission to establish Medical,

Dental and Engineering Colleges. The last date prescribed

for receipt of applications was 8.6.1992. The applicants for

Medical Colleges had to deposit within the said date a sum

of rupees one crore in cash, furnish bank guarantee for

another one crore and produce evidence of financial

viability to the extent of four crores. A committee was

appointed to inspect the land and other facilities offered

by the applicants. The Committee formulated its guidelines

on 28.6.1992 and submitted its report on 21.7.1992

recommending as many as 12 Medical Colleges and 8 Dental

Colleges. The then Chief Minister approved the same on

27.7.1992 and a G.O. was issued on the same day granting

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 31 of 111

permission. A number of Writ Petitions were immediately

filed in the High Court challenging the said grant as well

as Section 3-A.

18.There are a number of private engineering colleges in

the State. Until the current academic year (1992-1993), all

the seats in these colleges were filled in by the convenor

of the common entrance examination. The management had no

discretion or choice in the matter of admission of students.

They were, however, permitted to charge a particular fees

which was relatively higher than the fees charged in the

Government Engineering Colleges. Nothing more. But when

Section 3-A was introduced in the 1983 Act on 15.4.1992,

these private engineering colleges took the stand that they

are entitled to admit students to the extent of 50 per cent

of the seats according to their choice, irrespective of

merit, so long as they have qualified in the entrance test.

It is obvious that such a stand meant collection of

capitation fee as much as they could. There was an uproar

among the student and teaching community against such

admissions. Even the Government could not ignore the said

protest and intimated the private engineering colleges on

26.7.1992 not to make any admissions till the Rules are made

under Section 3-A. The engineering colleges, however, took

the stand that they have already made the admissions

according to their choice to the extent of 50 per cent.

Indeed all this was facilitated by the fact that convenor

allotted students to these engineering colleges only to the

extent of 50 per cent of their respective capacity instead

of 100% as usual

637

thereby sending an explicit signal that the colleges were

free to fill up the rest on their own. Be that as it may,

these admissions led to the filing of a batch of Writ

petitions in the Andhra Pradesh High Court. Following

Mohini Jain and also on certain other grounds, a Full Bench

of the Andhra Pradesh High Court allowed the Writ Petitions.

It declared Section 3-A up-Constitutional. It also declared

that the admissions made by the private Engineering Colleges

to the extent of 50 per cent at their own choice was

illegal. The Court further declared that the grant of

permission to 12 Medical and 8 Dental Colleges was equally

invalid. It is against the said decision that the State of

Andhra Pradesh, certain educational institutions and the

students admitted at the choice of the managements have come

forward with a number of Special leave petitions.

19.Leave is granted in all the Special leave petitions

preferred against the Full Bench decision of the Andhra

Pradesh High Court dated 18th September, 1992 in Writ

Petition No. 8248 of 1992 and batch. Besides the appeals,

there are a few writ petition-, from this State questioning

the correctness of the dicta in Mohini Jain.

STATE OF MAHARASHTRA

20.The Maharashtra Legislature enacted the Maharashtra

Educational Institutions (Prohibition of Capitotion Fee)

Act, 1987 (being Maharashtra Act No. VI of 1988) to prohibit

collection of capitation fee for admission of students to,

and the: promotion to a higher standard or class in, the

educational institutions in the State of Maharashtra and to

provide for matters connected therewith. The Preamble to

the Act declaims:

"WHEREAS the practice of collecting capitation

fee for admitting students into educational

institutions and at the time of promoting

students to a higher standard or class at

various stages of education is on the increase

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 32 of 111

in the State;

AND WHEREAS this undesirable practice has been

contributing to large scale commercialisation

of education which is not conducive to the

maintenance. of educational standards;

AND WHEREAS the National Policy on Education

1986

638

envisages that the commercialisation of

technical and professional education should be

curbed and that steps should be taken to

prevent the establishment of institutions set

up to commercialise education;

AND WHEREAS with a view to effectively curb

this evil practice, it is expedient in the

public interest to prohibit collection of

capitation fee for admission of students to,

and their promotion to a higher standard or

class in, the educational institutions in the

State of Maharashtra and to provide for

matters connected therewith; it is hereby

enacted in the Thirty- eighth year of the

Republic of India as follows:"

21. Section 2 defines certain expressions occurring in the

Act. Clause (a) defines capitation fee to mean "any

amount, by whatever name called, whether in cash or kind,

paid or collected, directly or indirectly, in excess of the

prescribed or, as the case may be, approved, rates of fees

regulated under section-4". Sub-Section (1) of Section 3

prohibits the collection of capitation fee either for

admission of a student or for his promotion to higher class.

Sub-Section (2), however, permits the management of an

educational institution to collect and accept donations from

benevolent persons, organisations, trusts and other

associations but says that no seats shall be reserved in

consideration thereof. The moneys so received shall have to

be deposited and dealt with in the prescribed manner. Sub-

section (3) provides that if in any case it is found that

any private educational institution has contravened any

provisions of the Act or the. Rules made thereunder, it

shall be directed to refund the same to the person from whom

it was collected. Section 4 empowers the Government to

regulate the tuition fee that may be received or collected

by any educational institution for admission to any course

of study in such institution. Separate fee shall have to be

prescribed for aided institutions and un-aided institutions.

In the case of un-aided institutions, the tuition fee shall

be prescribed "having regard to the usual expenditure

excluding any expenditure on lands and building or on any

such other item as the State Government may notify."

Different scales of tuition fee can be prescribed for

different institutions or different areas or different

courses of study, as the case may be. Section 7 provides

for punishment which may extend to three years and fine in

case of contravention of any provisions of Act or Rules.

639

22.It is stated that the government of Maharashtra had

prescribed an uniform fee of Rs. 6,500/- per annum in the

case of private un-aided engineering colleges, which was

raised to Rs. 8,500/ in 1991. In 1992, the fees was raised

only in the case of outside students (students outside the

Maharashtra State) to Rs. 17,000/.

It is also stated that the government of Maharashtra has

issued a notification directing that 90% of the seats in any

private engineering college shall be filled by nominees of

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 33 of 111

the Government and the remaining 10 per cent by the

management at its discretion. In the case of medical

colleges, the fee prescribed in the case of private un-aided

medical colleges for the current academic year is Rs.

30,000/ for Maharashtra students and Rs. 60,000/ in the case

of outside students. In the case of medical colleges, 20%

of the seats are allowed to be filled by the management at

their discretion. Remaining 80% seats are to be filled by

the Government nominees.

23.Mahatma Gandhi Mission, Nanded, the appellant in C.A.

No. 3573 of 1992 was permitted by the State Government to

start an un-aided medical college at Aurangabad. It is

stated that the appellant is a Public Charitable Trust

registered under Societies Registration Act, 1860 as well as

Bombay Public Trusts Act, 1950. The medical college is

affiliated to Marathwada University and is also recognised

by the Maharashtra medical council. The total intake

capacity is to seats each year. The permission to start

medical college was accorded to the appellant on

no-grant-in-aid basis. The appellant was allowed to fill

20% of the seats at their discretion from among those

students who have obtained a minimum of 50% of the marks in

the aggregate in specified subjects and have passed the

qualifying examination in their first attempt. (There is no

system of common entrance test in Maharashtra). Admissions

were accordingly made for the current academic year. Soon

after the decision of this court in Mohini Jain a large

number of students filed a writ petition in the High Court

of Bombay (Aurangabad Bench) claiming refund of the fee

collected from them in excess of the fee prescribed by the

Government for students admitted in government medical

colleges for such course. A Division Bench made an interim

order on 27th August, 1992 directing the appellant

institution to furnish a bank guarantee to the extent of 50%

of the excess amount collected by them from the students,

i.e., in a sum of Rs. 42 lakhs pending

640

disposal of the writ petition. It was further directed that

pending disposal of the writ petition, the institution shall

not collect any amount in excess of Rs. 3,000/ from any of

the students. The said interlocutory order is challenged by

the appellant in Civil Appeal No. 3572 of 1992.

24.Writ Petition 855 of 1992 is filed by Jammu and Kashmir

Parents Association of Students questioning the notification

issued by the Government of Maharashtra obligating the

outside-Maharashtra students to pay double the tuition fee

payable by the Maharashtra students.

25.Writ Petition 678 of 1992 is preferred by Maharashtra

Institute of Technology, Pune questioning the correctness of

Mohini fain and praying for issuance of a declaration that

the petitioner has a fundamental right under Article 19(1)

(g) of the Constitution of India to establish and run a

self-financing engineering college subject to compliance

with the regulatory requirements of the statute. The

petitioner has also invoked Article 19(1) (c) as conferring

upon him a right to establish/form any association to run an

engineering college on self-financing basis.

TAMIL NADU

26.Soon after the decision in Mohini Jain, the Governor of

Tamil Nadu promulgated an ordinance being ordinance No. 10

of 1992 called the Tamil Nadu Educational Institutions

(Prohibition of collection of capitation fee) Ordinance,

1992. The ordinance has since been substituted by an Act

Tamil Nadu Educational Institutions (Prohibition of

collection of capitation fee) Act, 1992, being Act No. 57 of

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 34 of 111

1992. The Act is designed to prohibit the collection of

capital fee for admission to educational institutions in the

State of Tamil Nadu and provide for matters relating

thereto. The preamble to the Act recites:

"WHEREAS the practice of collecting capital

fee for admitting students into educational

institutions is widespread in the State;

AND WHEREAS this undesirable practice, besides

contributing a large scale commercialisation

of education, has not been conducive to the

maintenance of educational standards;

641

AND WHEREAS it is considered necessary to

effectively curb this undesirable practice, in

public interest, by prohibiting the collection

of capitation fee and to provide for matters

relating thereto;

BE it enacted by the Legislative Assembly of

the State of Tamil Nadu in the Forty-third

year of the Republic of India as follows:"

27.The Act has been given effect from 20th day of August,

1992, the date on which the ordinance was issued. The

expression 'capitation fee' is defined in Clause (a) of

Section 2 to mean "any amount, by whatever name called, paid

or collected, directly or indirectly, in excess of the fee

prescribed under Section 4." Section 3 prohibits the

collection of capitation fee by any educational institution

or by any person on its behalf. Section 4 empowers the

government to regulate the fee chargeable in educational

institutions. Once such a notification is issued, no

institution can charge or collect any fee over and above the

fee prescribed. The Section reads thus:

"4. (1) Notwithstanding any contained in any

other law for the time being in force, the

Government may, by notification, regulate the

tuition fee or any other fee or deposit that

may be received or collected by any

educational institution or class or classes of

such educational institutions in respect of

any or all class or classes of students:

Provided that before issuing a notification

under this subsection, the draft of which

shall be published in the Tamil Nadu

Government Gazette stating that any objection

or suggestion which may be received by the

Government, within such period as may by

specified therein, shall be considered by

them.

(2)No educational institution shall receive

or collect any fee or accept deposit in excess

of the amount notified under sub-section (1).

(3)Every educational institution shall

issue an official receipt for the fee or

deposit received or collected by it."

Section 5 empowers the Government to regulate the

maintenance of

642

accounts by the educational institutions in such manner as

may be prescribed. Similarly, Section 6 empowers the

Government to call upon the educational institutions to

submit such returns or statements in such form and in such

manner as may be prescribed or carrying out the purposes of

the Act. Section 7 Provides for penalties in case of

contravention of any of the provisions of the Act or the

rules made thereunder. The minimum punishment is three

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 35 of 111

years imprisonment which may extend up to seven years in

addition to fine. Besides penalty, the educational

institution is also made liable to refund the excess

amount/capitation fee collected to the concerned

students/persons. Section 12 gives an overriding effect to

the provisions of the Act over any other law for the time

being in force. Section 14 confers upon the Government the

power to make rules to carry out the purposes of the Act.

It is not brought to our notice that rules have been made

under the Act as yet. Sri P.R. Seetharaman, learned counsel

for the State of Tamil Nadu, however, filed a statement 'THE

PRESENT ADMISSION FORMULA IN RESPECT OF SELF-FINANCING

PRIVATE MEDICAL COLLEGES AND ENGINEERING COLLEGES IN TAMIL

NADU'. It is necessary to set out the statement in full.

It reads:

"The Government of Tamil Nadu has also

recently constituted a committee for examining

proposals regarding regulation of fixation of

fees in respect of self-financing colleges of

medical and engineering and of Art and Science

as well as unaided courses of private aided

colleges. True copy of the order is annexed

hereto. The self-financing Medical Colleges

in Tamil Nadu are allowed to admit candidates

of their choice up to 60% of the approved

intake of the college adhering to the minimum

mark rule prescribed for Government Medical

Colleges. The remaining 40% of the seats are

allowed by the Director of Medical Education

every year and this is filled from among the

approved list of candidates selected for

admission to Government and Private Medical

Colleges. The self-financing private

Engineering Colleges are allowed to admit

candidates of their choice up to 50% of

approved intake of the college under

Management quota. The remaining 50% of the

seats are allowed by the Director of Technical

Education every year from among the approved

list of candidates selected for admission to

Government

643

and aided colleges. True copies of the orders

passed by the Government of Tamil Nadu are

annexed hereto.

DATED AT DELHI THIS 10TH DAY OF DECEMBER,

1992.

COUNSEL FOR TAMIL NADU."

28.Sri Seetharaman further stated that the Government will

insist that from the students admitted against 40%

government seats, only the fee collected in government

medical colleges will be allowed to be collected. He also

brought to our notice that the government has constituted a

committee to go into and frame rules regulating the fee

structure in self-financing medical engineering and other

colleges. (vide G.O.M.S. 1172 Education (JI) Deptt. dated

30.11.1992.).

29.Writ Petition 701 of 1992 is filed by the Annamalai

University and its Pro-Chancellor, Dr. M.A.M. Ramaswamy

questioning the provisions of the above Act and the

correctness of the principles enunciated in Mohini Jain. A

writ of mandamus is sought by this institution directed to

the respondents (State of Tamil Nadu, Union of India and the

University Grants Commission) 'to forbear from in any manner

interfering with the right of the petitioner to collect

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 36 of 111

capitation fees by whatever nomenclature the said fee or

payment may be described from the students seeking admission

into various degree courses in the colleges under the

control of the petitioner University to cover a reasonable

return on the capital investment and meet the recurring

expenditure every year for running the course in the

colleges including for running Rajah Sir Muthiah Medical

College and Hospital from the various students who seek

admission and who have the requisite merit to be admitted

and who are ready and @g to pay such amount.' 'Yet another

mandamus is sought directing the respondents to ensure that

the petitioners are not compelled to charge merely the rates

of fees as charged by colleges run by the State Government

from the students who have the requisite merit for admission

irrespective of their capacity to contribute for the

maintenance and running of the college as and by way of

payment of fees by whatever nomenclature it may be called.

30.The petitioners have come forward with the following

case: Annamalai University is an autonomous residential

unitary university es-

644

tablished and incorporated under the Annamalai University

Act, 1928 enacted by the then Madras Legislature. It has 45

faculties including Engineering and Technology and Medicine.

So far as the medical college is concerned, the annual

intake is 125. Against this strength of 125, the petitioner

admits 50 students belonging to Scheduled Castes, Scheduled

Tribes and backward classes. Only a nominal fee is

collected from them. From the remaining 75 students, a sum

of Rs. 4 lakhs is collected by way of fees. This sum of Rs.

4 lakhs is hardly sufficient to meet the cost of medical

education. Unless this minimum fee of Rs. 4 lakh is

collected from at least 75 students, it is not possible for

the petitioner to run the medical college which is attached

to a hospital. While so, the Governor of Tamil Nadu has

issued the aforesaid ordinance prohibiting the capitation

fee. This ordinance has evidently been issued pursuant to

the decision of this Court in Mohini Join. if the petitioner

is compelled to collect only that fee which is charged by

the Government in Government Medical Colleges, it would be

impossible to run the medical college. It has to close

down. The impugned ordinance (by the date of filing of writ

petition the Act replacing the ordinance had not yet come

into force) is violative of the fundamental right of the

petitioners to establish and administer a medical college by

collecting appropriate amounts from the students who are

ready and willing to pay the same for their admission into

the medical college, says the petitioner.

PART II

Question No. 1.- "Whether the Constitution of Inda

guarantees a fundamental right to education to its

citizens?'

31.Right to education is not stated expressly as a

fundamental right in Part Ill. This Court has, however, not

followed the rule that unless a right is expressly stated as

a fundamental right, it cannot be treated as one. Freedom

of Press is not expressly mentioned in Part III, yet it has

been read into and inferred from the freedom of speech and

expression. Express Newspapers v. Union of India,,[1959]

S.C.R. 12. More particularly, from Article 21 has sprung up

a whole lot of human rights jurisprudence viz., right to

legal aid and speedy trial Hussain Ara Khatoon [1979] 3

S.C.R. 532 to A.R. Antulay, [1992] 1 S.C.R. 225, the right

to means of livelihood Olga Tellis, [1985] Supp. 2 S.C.R.

51, right to dignity and privacy, Karak. Singh [1964] 1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 37 of 111

S.C.R. 332, right to health Vincent, v. Union of India

[1987]

645

2 S.C.R. 468), right to pollution-free environment M.C.

Mehta v. Union of India 119881 1 S.C.R. 279 and so on. Let

us elaborate.

32.In Express Newspapers V. Union of India, [1959] S.C.R.

12 it has been held.

"The freedom of speech comprehends the freedom

of press and the freedom of speech and press

are fundamental and personal rights of the

citizens.'

33.Article 21 declares that no person shall be deprived of

his life or personal liberty except according to the

procedure established by law. It is true that the Article

is worded in negative terms but it is now well-settled that

Article 21 has both a negative and an affirmative dimension.

As far back as 1962, a Constitution Bench (comprising of six

learned Judges) in Singh v. State of Uttar Pradesh and Ors.,

[1964] 1 S.CR. 332 decided on 18th December, 1962 considered

the content of the expression "personal, liberty" occurring

in Article 21. Rajgopala Ayyangar, J. speaking for the

majority, observed:

"We shall now proceed with the examination of

the width, scope and content of the expression

"Personal liberty" in Article 21. We feel

unable to hold that the term was intended to

bear only this narrow interpretation but on

the other hand consider that "personal

liberty' is used in the Article as a

compendious term to include within itself all

the varieties of rights which go to make up

the 'personal liberties" of man other than

those deal with in the several clauses of Art.

19(1). In other words, while Art. 19(1) deals

with particular species or attributes of that

freedom, "personal liberty' in Art. 21 takes

in and comprises the residue."

The leaned Judge quoted the dissenting opinion of Field, J.

(one of those dissenting opinions which have out-lived the

majority pronouncements) in Munn v. Illinois, (1877 (94)

U.S. 113/142 attributing a broader meaning to the word

"fife' in the fifth and fourteenth amendments to the U.S.

Constitution, which correspond inter alia to Article 21 of

our Constitution. The learned Judge held that the word

'personal liberty' would include the privacy sanctity of a

man's home as well as the dignity of the individual.

646

The minority Judges, however, placed a more expansive

interpretation on Article 21. They said:

"No doubt the expression' personal liberty' is

a comprehensive one and the right to move

freely is an attribute of personal liberty.

It is said that the freedom to move freely is

carved out of personal liberty and, therefore,

the expression 'personal liberty' in Art. 21

excludes that attribute. In our view, this is

not a correct approach. Both are independent

fundamental rights, though there is

overlapping. There is no question of one

being carved out of another. The fundamental

right of life and personal liberty has many

attributes and some of them are found in Art.

19. If a person's fundamental right under

Art. 21 is infringed, the State can rely upon

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 38 of 111

a law to sustain the action, but that cannot

be a complete answer unless the said law

satisfies the test laid down in Art. 19(2) so

far as the attributes covered by Art. 19(1)

are concerned."

34. In Maneka Gandhi v. Union of India, [1978] S.C. 597

Bhagwati, J. held that the judgment in, R. C. Cooper v.

Union of India, 1970 S.C. 564 has the effect of overruling

the majority opinion and of approving the minority opinion

in Kharak Singh.

35.In Bolling v. Sharpe, 98 Lawyers Ed. 884 Warren, CJ.

speaking for the U.S. Supreme Court observed "although the

court has not assumed to define "liberty' with any great

precision, that term is not confined to mere freedom from

bodily restraint. Liberty under law extends to the full

range of conduct which the individual is free to pursue, and

it cannot be restricted except for a proper governmental

objective." Having said so, the learned Judge proceeded to

observe "segregation in public education is not reasonably

related to any proper governmental objective,, arid thus it

imposes on Negro children of the District of Columbia a

burden that constitutes an arbitrary deprivation of their

liberty in violation of the Due Process Clause.'

36.The word "life" occurring in Article 21 too has

received a broad and expansive interpretation., While it is

not necessary to refer to all of them, reference must be

made to the decision in Olga Tellis v. Bombay

647

Municipal Corporation [1985] Suppl. 2 S.C.R. 51.

Chandrachud, CJ. speaking for a Constitution Bench of this

court observed:

"The sweep of the right to life conferred by

Article 21 is wide and far reaching. It does

not mean merely that life cannot be

extinguished or taken away as, for example, by

the imposition and execution of the death

sentence, except according to procedure

established by law. That is but one aspect of

the right to life. An equally important facet

of that right is the right to livelihood

because, no person can live without the means

of living, that is, the means of livelihood.

If the right to livelihood is not treated as a

part of the constitutional right to life, the

easiest way of depriving a person his right to

life would be to deprive him of his means of

livelihood to the point of abrogation. Such

deprevation would not only denude the fife of

its effective content and meaningfulness but

it would make life impossible to live. And

yet, such deprivation would not have to be in

accordance with the procedure established by

law, if the right to livelihood is not

regarded as a part of the right to fife.

That, which alone makes it possible to live,

leave aside what makes life viable, must be

deemed to be an integral component of the

right to life. Deprive a person of his right

to livelihood and you shall have deprived him

of his life.........

Article 39(a) of the Constitution, which is a

Directive Principle of State Policy, provides

that the State shall, in particular, direct

its policy towards securing that the citizens,

men and women equally, have the right to an

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 39 of 111

adequate means of livelihood. Article 41,

which is another Directive Principle provides,

inter alia, that the State shall, within the

limits of its economic capacity and

development, make effective provision for

securing the right to work in cases of

unemployment and of undeserved want. Article

37 provides that the Directive Principles,

though not enforceable by any court, are

nevertheless fundamental in the governance of

the country. The Principles contained in

Articles 39(a) and 41 must be regarded as

equally fundamen-

648

tal in the understanding and interpretation of

the meaning and content of fundamental rights.

If there is an obligation upon the State to

secure to the citizens an adequate means of

livelihood and the right to work, it would be

sheer pedantry to exclude the right to

livelihood from the content of the right to

life."

37.In Bandhua Mukti Morcha v. Union of India [1984] 2

S.C.R. 67 Bhagwati J. while affirming the proposition that

Article 21 must be construed in the light of the Directive

Principles of the State Policy observed thus:

"This right to live with human dignity

enshrined in Article 21 derives its life

breath from the Directive Principles of State

Policy and particularly clauses (e) and (f) of

Article 39 and Articles 41 and 42 and at the

least, therefore, it must include protection

of the health and strength of workers men and

women, and of the tender age of children

against abuse, opportunities and facilities of

children to develop in a healthy manner and in

conditions of freedom and dignity, educational

facilities, just and humane conditions of work

and maternity relief. These are the minimum

requirements which must exist in order to

enable a person to live with human dignity

In D.S. Nakara v. Union of India, [1983] S.C.R. 130, a

Constitution Bench explained the significance of the

addition of the expression "Socialist" in the preamble of

our Constitution in the following words:

"During the formative years.... socialism aims

at providing all opportunities for pursuing

the educational activity There will be

equitable distribution of national cake....

In Vincent v. Union of India, [1987] 2 S.C.R. 468, it was

held by a Division Bench of this Court that:

"In a welfare State, therefore, it is the

obligation of the State to ensure the creation

and the sustaining of conditions congenial to

good health In a series of pronouncements,

during the recent years, this court has culled

out

649

from the provisions of Part IV of the

Constitution, the several obligations of the

State and called upon it to effectuate them in

order that the resultant pictured by the

Constitution fathers may become a reality.'

In A.R.Antulay v. R.S. Naik, [1992] 1 S.C.R. 225, a

Constitution Bench of this Court held that Article 21

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 40 of 111

creates a right in the accused to be tried speedily and that

the said right encompasses an the stages of a criminal case.

It was held that the violation of this right of the accused

may entail the very quashing of the charges.

Interplay of parts III and IV/-

38.This Court has also been consistently adopting the

approach that the fundamental rights and directive

principles are supplementary and complementary to each other

and that the provisions in Part III should be interpreted

having regard to the Preamble and the directive principles

of the State policy. The initial hesitation to recognise

the profound significance of Part IV has been given up long

ago. We may explain.

While moving for consideration the interim report on

fundamental rights, Sardar Vallabhai Patel described both

the rights mentioned in Pam III and IV as 'fundamental

rights' one justificiable and other non-justiciable. In

his supplemental report, he stated:

"There were two parts of the report; one

contains fundamental rights which were

justiciable and the other part of the report

refers to fundamental rights which were not

justiciable but were directives."

This statement indicates the significance attached to

directive principles by the founding fathers. It is true

that in The state of Madras v. Champakam Dorairajan 119591

S.C.R. 995, fundamental rights were held preeminent vis-a-

vis Directive Principles but since then there has been a

perceptible shift in this Court's approach to the inter-play

of Fundamental Rights and Directive Principles.

39.As far back as in 1958, in the Kerala Education Bill a

Special Bench of this Court speaking through S.R. Das, CJ.,

while affirming the primacy of Fundamental Rights, qualified

the same with the following

650

observations:

Nevertheless' in determining the scope and

ambit of the fundamental rights relied upon by

or on behalf of any person or body, the court

may not entirely ignore these directive

principles of State policy laid down in Part

IV of the constitution but should

adopt the principle of harmonious construction

and should attempt to give effect to both as

much as possible "

This is also the view taken in Hanif v. State of Bihar,

[1959] S.C.R. 629 at 655.

In Keshavanda Bharati v. State of Kerala, 1973 Suppl. 521

more than one learned Judge adverted to this aspect. In the

words of Hegde and Mukherjee. JJ.:

"The Fundamental Rights and Directive

Principles con Part IV is to ignore the

sustenance provided for in the Constitution,

the hopes held out to the nation and the very

ideals on which our Constitution is built

There is no anti-thesis between the

Fundamental Rules and the Directive

Principles .... One Supplements the other."

Shelat and Grover, JJ. in their judgment

observed:

"Both Parts HI and IV .... have to be balanced

and harmonised then alone the dignity of the

individual can be achieved They (Fundamental,

Rights and Directive Principles)were meant

to supplement each other."

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 41 of 111

Mathew, J. while adopting the same approach

remarked:

"The object of the people in establishing the

Constitution was to promote justice, social

and economic liberty and equality. The modus

operandi to achieve these objectives, is set

out in Parts III and IV of the Constitution.

Both Parts III and IV enumerate certain moral

rights. Each of these Parts represents in the

main the statements in one sense of certain

aspirations whose fulfilment was regarded as

essens-

651

tial to the kind of society which the

Constitution-makers wanted to build. Many of

the articles, whether in Part III or Part IV,

represent moral rights which they have recog-

nised as inherent in every human being in his

country. The task of protecting and realising

these rights is imposed upon all the organs of

the State, namely, legislative, executive and

judicial. What then is the importance to be

attached to the fact that the provisions of

Part III are enforceable in a Court and the

provisions in Part IV are not? Is it that the

rights reflected in the provisions of Part III

are somehow superior to the moral claims and

aspirations reflected in the provisions of

Part IV? I think not. Free and compulsory

education under Article 45 is certainly as

important as freedom of religion under Article

25. Freedom from starvation is as important

as right to life. Nor are the provisions in

Part III absolute in the sense that the rights

represented by them can always be given full

implementation."

Y.V. Chandrachud, J. (as he then was) put the

same idea in the following words:

"As I look at the provisions of Parts III and

IV, I feel no doubt, that the basic object of

conferring freedoms on individuals is the

ultimate achievement of the ideals set out in

Part IV..... May I say that the directive

principles of State policy should not be

permitted to become 'a mere rope of sand'. If

the State fails to create conditions in which

the fundamental freedoms can be enjoyed by

all, the freedom of the few will be at the

mercy of the many and then all freedoms will

vanish."

40. In State of Karnataka v. Ranganatha

Reddy, Krishna Iyer, J. stated:

"Our thesis is that the dialectics of social

justice should not. be missed if the systhesis

of Part III and Part IV is to influence State

action and Court pronouncements."

In U.P.S.C Board v. Harishankar, A.I.R. 1979 S.C. 65 it was

observed: Addressed to courts, what the injunction (Article

37) means is that while

652

courts are not free to direct the making of legislation,

courts are bound to evolve, affirm and adopt principle of

interpretation which will further and not hinder the goals

set out in the Directive Principles of State Policy. This

command of the constitution must be everpresent in the minds

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 42 of 111

of the Judges while interpreting statutes which concern

themselves directly or indirectly with matters set out in

the Directive Principles of State Policy." This is on the

view that the 'State' in Article 36 read with Article 12

includes the judiciary as well.

In Minerva Mills v. Union of India A.I.R. 1980 S.C. 1789,

Chandrachud, CJ. quoted with approval the similie of

Granvlle Austin that Parts III and IV are like two wheels of

a chariot and observed that "to give absolute primacy to one

over the other is to disturb the harmony of the

Constitution.' The learned Chief Justice obserned further:

"Those rights (Fundamental Rights) are not an

end in themselves but are the means to an end.

The end is specified in Part IV.'

41.It is thus well established by the decisions of this

Court that the provisions of Parts III and IV are

supplementary and complementary to each other and that

Fundamental Rights are but a means to achieve the goal

indicated in Part IV. It is also held that the Fundamental

Rights must be construed in the light of the Directive

Principles. It is from the above stand point that Ouestion

No.1 has to be approached.

ARTICLE 21 AND RIGHT TO EDUC4TION.

42.In Bandhua Mukti March this court held that the right

to life guaranteed by Article 21 does take in 'educational

facilities". (The relevant portion has been quoted

hereinbefore). Having regard to the fundamental

significance of education to the life of an individual and

the nation, and adopting the reasoning and logic adopted in

the earlier decisions of this Court referred to

hereinbefore, we hold, agreeing with the statement in

Bandhua Mukti Morcha, that right to education is implicit in

and flows from the right to life guaranteed by Article 21.

That the right to education has been treated as one of

transcendental importance in the life of an individual has

recognised not only in this country since thousands of

years, but all over the world. In Mohini Jain the

importance of education has

653

been duly and rightly stressed. The relevant observations

have already been set out in para 7 hereinbefore. In

particular, we agree with the observation that without

education being provided to the citizens of this country,

the objectives set forth in the Preamble to the Constitution

cannot be achieved. The Constitution would fail. We do not

think that the importance of education could have been

better emphasised than in the above words. The importance

of education was emphasised in the 'Neethishatakam' by

Bhartruhari (First Century B.C.) in the following words:

"Translation:

Education is the special manifestation of man;

Education is the treasure which can be

preserved without the fear of loss;

Education secures material pleasure, happiness

and fame; Education is the teacher of the

teacher;

Education is God incarnate;

Education secures honour at the hands of the

State, not money-

A man without education is equal to animal."

The fact that right to education occurs in as many as three

Articles in Part IV viz., Articles 41, 45 and 46 shows the

importance attached to it by the founding fathers. Even

some of the Articles in Part III viz., Articles 29 and 30

speak of education.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 43 of 111

43.In Brown v. Board of Education, 98 Lawyers Ed. 873,

Earl Warren, CJ., speaking for the U.S. Supreme Court

emphasised the right to education in the following words:

"Today, education is perhaps the most

important function

of state and eats........ It

is required in the performance of our most

basic responsibilities, even service in the

armed forces. It is the very foundation of

good citizenship. Today it is the principal

instrument in awaken-

654

ing the child to cultural values, in preparing

him for later professional training, and in

helping him to adjust normally to his

environment. In these days, it is doubtful

any child may reasonably be expected to

succeed in life if he is denied the

opportunity of an education."

In Wisconsin v. Yoder, 32 L.Ed. 2d, 15 the

Court recognised that:

"Providing public schools ranks at the very

apex of the function of a State."

The said fact has also been affirmed by eminent

educationists of modern India like Dr. Radhakrishnan, J.P.

Naik, Dr. Kothari and others.

44.It is argued by some of the counsel for the petitioners

that Article 21 is negative an character and that it merely

declares that no person shall be deprived of his life or

personal liberty except according to the procedure

established by law. Since the State is not depriving the

respondents-students of their right to education, Article 21

is not attracted, it is submitted. If and when the State

makes a law taking away the right to education, would

Article 21 be attracted, according to them. This argument,

in our opinion, is really born of confusion; at any rate, it

is designed to confuse the issue. The first question is

whether the right to life guaranteed by Article 21 does take

in the right to education or not. It is then that the

second question arises whether the State is taking away that

right. The mere, fact that the State is not taking away the

right as at present does not mean that right to education is

not included within the right to life. The content of the

right is not determined by perception of threat. The

content of right to life is not to be determined on the

basis of existence or absence of threat of deprivation. The

effect of holding that right to education is implicit in the

right to fife is that the State cannot deprive the citizen

of his right to education except in accordance with the

procedure prescribed by law.

45.In the above state of law, it would not be correct to

contend that Mohini Jain was wrong in so far as it declared

that "the right to education flows directly from right to

life.' But the question is what is the content of this

right? How much and what level of education is necessary to

make the life meaningful? Does it mean that every citizen

of this country can call upon the State to provide him

education of his choice? In other words, whether the

citizens of this country can demand that the State provide

655

adequate number of medical colleges, engineering colleges

and other educational institutions to satisfy all their

educational needs? Mohini Jain seems to say, yes. With

respect, we cannot agree with such a broad proposition. The

right to education which is implicit in the right to fife

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 44 of 111

and personal liberty guarenteed by Article 21 must be

construed in the fight of the directive principles in Part

IV of the Constitution So far as the right to education is

concerned, there are several articles in Part IV which

expressly speak of it. Article 41 says that the "State

shall within the limits of its economic capacity and

development make effective provision for securing the right

to work, to education and to public assistance in cases of

unemployment, old age, sickness and disablement, and in

other cases of underserved want.' Article 45 says that "the

State shau endeavour to provide, within a period of ten

years from the commencement of this Constitution, for free

and compulsory education for all children until they

complete the age of fourteen years.' Article 46 commands

that 'the State shall promote with special care the

educational and economic interests of the weaker sections of

the people, and, in particular, of the Scheduled Castes and

the Scheduled Tribes, and shall protect them from social

injustice and all forms of exploitation." Education means

knowledge and Knowledge itself is power.' As rightly

observed by Johan Adams, 'the preservation of means of

knowledge among the lowest ranks is of more importance to

the public than all the property of all the rich men in the

country" (Dissertation on canon and fuedal law, 1765). It

is this concern which seems to underlie Article 46. It is

the tyrants and bad rulers who are afraid of spread of

education and knowledge among the deprived classes. Witness

Hitler railing against universal education. He said:

'Universal education is the most corroding and

disintegrating poison that liberalism has ever invented for

its own destruction.' (Rauschning, The voice of destruction:

Hider speaks). A true democracy is one where education is

universal where people understand what Is good for them and

nation and know how to govern themselves. The three

articles 45, 46 and 41 are designed to achieve the said goal

among others. It is in the light of these articles that the

content and parameters of the right to education have to be

determined. Right to education understood in the context of

Articles 45 and 41, means. (a) every child/citizen of this

country has a right to free education until he completes the

age of fourteen years and (b) after a child/citizen

completes 14years, his right to education is circumscribed

by the

656

limits of the economic capacity of the State and its

development We may deal with both these limbs separately.

Right to free education for all children until they complete

the age of fourteen years (45-A). It is noteworthy that

among the several articles in part IV, only Article 45

speaks of a time-limit; no other article does. Has it no

significance? Is it a mere pious wish, even after 44 years

of the Constitution? Can the State flout the said direction

even after 44 years on the ground that the article merely

calls upon it to "endeavour to provide" the same and on the

further ground that the said article is not enforceable by

virtue of the declaration in Article 37. Does not the

passage of 44 years more than four times the period

stipulated in Article 45 convert the obligation created by

the article into an enforceable right? In this context, we

feel constrained to say that allocation of available funds

to different sectors of education in India discloses an

inversion of priorities indicated by the Constitution. The

Constitution contemplated a crash programme being undertaken

by the State to achieve the goal set out in Article 45. It

is relevant to notice that Article 45 does not speak of the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 45 of 111

limits of its economic capacity and development' as does

Article 41, which inter alia speaks of right to education.

What has actually happened is more money is spent and more

attention is directed to higher education that to and at

the cost of primary education. (By primary education, we

mean the education, which a normal child receives by the

time he completes 14 years of age). Neglected more so are

the rural sectors, and the weaker sections of the society

referred to in Article 46. We clarify, we are not seeking

to lay down the priorities for the government we are only

amphasising the constitutional policy as disclosed by

Articles 45, 46 and 41. Surely the wisdom of these

constitutional provisions is beyond question. This

inversion of priorities has been commended upon adversely by

both the educationists and economists.

Gunnar Myrdal the noted economist and sociologist, a

recognised authority on South Asia, in his book "Asian

Drama" (abridged Edition published in 1972) makes these

perceptive observations at page 335:

"But there is another and more valid criticism

to make. Although the declared purpose was to

give priority to the increase of elementary

schooling in order to raise the rate of

literacy in the population, what has actually

happened is that secondary schooling has been

rising much faster and

657

tertiary schooling has increased still more

rapidly. There is a fairly general tendency

for planned targets of increased primary

schooling not to be reached, whereas targets

are over-reached, sometimes substantially, as

regards increases in secondary and,

particularly, tertiary schooling. This has

all happened in spite of the fact that

secondary schooling seems to be three to five

times more expensive than primary schooling,

and schooling at the tertiary level five to

seven times more expensive than at the

secondary level.

What we see functioning here is the distortion

of development from planned targets under the

influence of the pressure from parents and

pupils in the upper strata who everywhere are

politically powerful. Even more remarkable is

the fact that this tendency to distortion from

the point of view of the planning objectives

is more accentuated in the poorest countries,

Pakistan, India, Burma and Indonesia, which

started out with far fewer children in primary

schools and which should therefore have the

strongest reasons to carry out the programme

of giving primary schooling the highest

priority. It is generally the poorest

countries that are spending least, even

relatively, on primary education, and that are

permitting the largest distortions from the

planned targets in favour of secondary and

tertiary education.'

In his other book 'Challenge of World Poverty' (published in

1970) he discusses elaborately in chapter 6 'Education'

the reasons for and the consequences of neglect of basic

education in this country. He quotes J.P. Naik, (the

renowned educationist whose Report of the Education

Commission, 1966 is still considered to be the most

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 46 of 111

authoritative study of education scene in India) as saying

'Educational development......... is benefiting the 'haves'

more than the "have not'. This is a negation of social

justice and 'planning' proper' and our constitution speaks

repeatedly of social justice (Preamble and Article 38(1)).

As late as 1985, the Ministry of Education has this to say

in para 3.74 of its publication "Challenge of Education a

policy perspective". It is stated there:

658

"3.74. Considering the constitutional

imperative regarding the universalisation of

elementary education it was to be expected

that the share of this sector would be

protected from attribution. Facts, however,

point in the opposite direction. From a share

of 56 per cent in the First Plan, it declined

to 35 per cent in the Second Plan, to 34 per

cent in the Third Plan, to 30 per cent in the

Fourth Plan. it started going up again only in

the Fifth Plan, when it was at the level of 32

per cent, increasing in Sixth Plan to 36 per

cent, stiff 20 per cent below the First Plan

level. On the other hand, between the First

and the Sixth Five Year Plans, the share of

university education went up from 9 per cent

to 16 per cent."

Be that as it may, we must say that at least now the State

should honour the command of Article 45. It must be made a

reality atleast now. Indeed, the 'National Education

Policy 1986' says that the promise of, Article 45 will be

redeemed before the end of this century. Be that as it may,

we hold that a child (citizen, has a fundamental right to

free education up to the age of 14 years.

46.This does not however mean that this obligation can be

performed only through the State schools. It can also be

done by permitting, recognising and aiding voluntary non-

governmental organisations, who are prepared to impart free

education to children. This does not also mean that unaided

private schools cannot continue. They can, indeed, they too

have a role to play. They meet the demand of that segment

of population who may not wish to have their children

educated in State-run schools. They have necessarily to

charge fees from the students. In this judgment, however,

we do not wish to say anything about such schools or for

that matter other private educational institutions except

'professional colleges, This discussion is really

necessitated on account of the principles enunciated in

Mohini jain and the challenge mounted against those

principles in these writ petitions.

47.At this juncture, it would be appropriate to refer to

the additional affidavit filed by the Union of India. In

this affidavit. the present state of primary and upper

primary education is set out. (Primary stage means Classes I

to V. Upper primary stage means classes VI to VIII). After

659

setting out the particulars of number of schools and

enrollment therein, it is stated in para 3 that 'this

increase provided Indian Education System with one of the

largest systems in the world, providing accessibility within

1 Km. distance of Primary schools to 8.26 habitations con-

taining about 94% of the country's population. Growth in

enrolment in the decade of 80s showed an acceleration that

has now brought enrolment rates close of 100% at primary

stage.' Again in para 4, under the sub-heading "Free

education", the following statement occurs:

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 47 of 111

"4. In the endeavour to increase enrolment

and achieve the target of UEE, all State

Governments have abolished tuition fees in

Government Schools run by local bodies and

private aided institutions is mostly free in

these States; however, in private unaided

schools which constitute 3.7.% of the total

elementary schools in the country, some fee is

Charged. Thus, overall it may be said that

education up to elementary level in

practically all schools is free. Other costs

of education, such as text books, uniforms,

schools bags, transport etc. are not borne by

States except in a very few cases by way of

incentives to children of indigent families or

those belonging to Scheduled Caste/Scheduled

Tribes categories. The reason why the State

Government are unable to bear this additional

expenditure is that 96% of expenditure on

elementary education goes in meeting the

salaries of teaching and non-teaching staff."

Para 5 of the affidavit deals with "Compulsory

education". It reads as follows:

"5. 14 States and 4 Union Territories have

enacted legislation to make educational

compulsory but the socioeconomic compulsions

that keep the children away from schools have

restrained them from prescribing the rules and

regulations whereby those provisions can be

endorsed."

The affidavit also mentions the steps taken by Central and

State Governments in pursuance of Naitonal Education Policy

including "Operation Blackboard" and its contribution to the

increase in primary education. It was indeed gratifying to

note these facts, though much more remains to

660

be done to raise the quality of instruction.

Before proceeding further we think it right to say this: We

are aware that "Education is the second highest sector of

budgeted expenditure after the defence. A little more than

three per cent of the Gross National Product is spent in

education", as pointed out in para 231 of 'Challenge of

Education. But this very publication says that "in

comparison to many countries, India spends much less on

education in terms of the proportion of Gross National

Product' and further 'in spite of the fact that educa-

tional expenditure continues to be the highest item of

expenditure next only to Defence the resource gap for

educational needs is one of the major problems. Most of the

current expenditure is only in the form of salary payment.

It hardly needs to be stated that additional capital

expenditure would greatly augment teacher productivity

because in the absence of expenditure on other heads even

the utilisation of staff remains low.' We do realise that

ultimately it is a question of resources and resources-wise

this country is not in a happy position. AR we are saying

is that while allocating the available resources, due regard

should be had to the wise words of Founding Fathers in

Articles 45 and 46. Not that we are not aware of the

importance and significance of higher education. What may

perhaps be required is a proper balancing of the various

sectors of education.

Right to education after the child/citizen completes the age

of 14 years.

48.The right to education further means that a citizen has

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 48 of 111

a right to call upon the State to provide educational

facilities to him within the limits of its economic capacity

and development. By saying so, we are not transferring

Article 41 from part IV to Part III we are merely relying

upon Article 41 to illustrate the content of the right to

education flowing from Article 21. We cannot believe that

any State would say that it need not provide education to

its people even within the limits of its economic capacity

and development. It goes without saying that the limits of

economic capacity are, ordinarily speaking, matters within

the subjective satisfaction of the State.

49.In the fight of the above enunciation, the apprehension

expressed by the counsel for the petitioners that by reading

the right to education into Article 21, this Court would be

enabling each and every citizen of this country to approach

the courts to compel the State to provide him such education

as he chooses must be held to be unfounded. The right to

free

661

education is available only to children until they complete

the age of 14 years. Thereafter, the obligation of the

State to provide education is subject to the limits of its

economic capacity and development. Indeed, we are not

stating anything new. This aspect has already been

emphasised by this Court in Francis C Mullin v.

Administrator, Union Territory of Delhi, [1981] 2 S.C.R.

516. While elaborating the scope of the right guaranteed

under Article 21, this court stated:

"But the question which arises is whether the

right to life is limited only to protection of

limb or faculty or does it go further and

embrace something more. We think that the

right to life includes right to live with

human dignity and all that goes along with it

viz., the bare necessities of life such as

adequate nutrition, clothing and shelter and

facilities for reading, writing and expressing

oneself in diverse forms, freely moving about

the mixing and commingling with fellow human

beings. Of course, the magnitude and content

of the components of this right would depend

upon the extent of the economic development of

the country, but it must in any view of the

matter, include a right to the basic

necessities of life and also the right to

carry on such functions and activities as

constitute the bare minimum expression of the

humanself"

50.We must hasten to add that just because we have relied

upon some of the directive principles to locate the

parameters of the right to education implicit in Article 21,

it does not follow automatically that each and every

obligation referred to in Part IV gets automatically

included within the purview of Article 21. We have held the

right to education to be implicit in the right to fife

because of its inherent fundamental importance. As a matter

of fact, we have referred to Articles 41, 45 and 46 merely

to determine the parameters of the said right.

PART III

Question Nos. 2 and 3.

51.It would be convenient to deal with question Nos.2 and 3

together. The contentions urged by the counsel for the

petitioners can be broadly summarised in the following

words:

662

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 49 of 111

(a)The State has no monopoly in the matter of imparting

education. Every citizen has the fundamental right to

establish an educational institution as a part of the right

guaranteed to him by Article 19(1)(g) of the Constitution.

This right extends even to the establishment of an

educational institution with a profit motive i.e., as a

business adventure. The said right, no doubt, is subject to

such reasonable restrictions as may be placed upon it by a

law within the meaning of clause (6) of Article 19. But for

the said restrictions, the right is absolute.

(b)The vice lies not in the establishment of educational

institutions by individuals and private bodies but in

unnecessary State control. The law of demand and

supply..... what may be called the 'market forces.......

must be allowed a free play. Because there are more number

of persons seeking admission that the existing institutions

can provide that the several ins complained of have

developed.

(c)The establishment of an education institution is no

different from any other venture e.g., starting a business

or industry. It is immaterial whether the institution is

established with or without profit motive. Indeed, only

when there is profit motive that persons with means would

come forward to open more and more schools and colleges.

There are not many persons available today who are prepared

to donate large funds for establishing such institutions by

way of charity or philantrophy.

(d)Even if it is held, for any reason, that a person has

not right to establish an education institution as a

business venture, he has atleast the right to establish a

self-financing educational institution. Such a institution

may also be described as an institution providing cost-based

education. This means that it is open to a person to

collect amounts from willing parties and establish an

institution to educate such persons or their children, as

the case may be. Even in an established institution, the

fees that may collected from the students must be such as

not only to defray the expenditure of running the

institution but also for improvement. expansion,

diversification and growth. In such institutions, the

quantum of the fees to be charged should. be left to the

concerned institutions. The Government should have to say

in the matter. So far as the court is concerned, it is not

possible for it, in the very nature of things, to go into

this issue. The needs of each educational institution may

be different. The standard of education imparted and the

facilities provided may be different

663

from institution to institution. May be, the Government or

the Court may insist that as a condition for running such

institution, a reasonable number of seats should be allotted

to students purely on merit, who shall be asked to pay only

such fees as is charged in similar Governmental

institutions. If this is done to which the petitioners

have no objection it will not only meet the needs of

education of those who have the capacity to pay but it will

also meet the needs of other meritorious students who are

not able to obtain admission in the Governmental

institutions and are also not in a position to pay the fees

normally charged such private institutions. Several facts

and figures are furnished to us to show how in each State

these private educational institutions are providing a large

number of "free seats' to the nominees of the Government.

It is pointed out that all these students would not have had

an opportunity. of studying the course of their choice but

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 50 of 111

for the existence of these private educational institutions.

(e)Mohini Jain's case was not right in saying, in the

above situation, that charging of any amount, by whatever

name it is called, over and above' the fee charged by the

Government in its own colleges, must be described as

capitation fee. Saying so amounts to imposing an impossible

condition. It is simply not possibly for the private

educational institutions to survive if they are compelled to

charge only that fee as is charged in Governmental

institutions. The cost of educating an engineering or a

medical graduate is' very high. All that cost is borne by

the State in Governmental colleges but the State does not

subsidise the private educational institutions. The private

educational institutions have to find their own finances and

that can come only from the students.

(f)Even if the right to establish an educational

institution is not trade or business within the meaning of

Article 19(1)(g), it is certainly an 4occupation' within

the meaning of the said clause. Indeed, the use of the four

expressions profession, occupation, trade or business in

Article 19(1)(g) was meant to cover the entire field of

human activity. In such a situation, it is not necessary

for the petitioners to pinpoint to which particular

expression does their activity relate. It is enough to say

that the petitioners do have the right to establish private

educational institutions at any rate, self-financing/cost-

based private educational institutions. This right can be

restricted only by a law as contemplated by clause (6) of,

Article 19.

664

(g)The right to establish and administer an educational

institution (by a member of the majority community, religion

or linguistic) arises by necessary implication from Article

30. The Constitution could not have intended to confine the

said right only to minorities and deprive the majority

communities therefrom.

(h)The Government or the University cannot insist of

stipulate as a condition of recognition/affiliation that the

private educational institutions should admit students

exclusively on merit. It has been well recognised by this

court that one who pays for the education is also entitled

to stipulate the manner in which he well admit students'.

There is no reason why such a right should not be recognised

in the case of the private educational institutions.

Moreover, there may be several kinds of private educational

institutions; they may be established for achieving certain

specified purposes. For example, medical or engineering

college may be established to cater to the needs of a

particular region or a district. Similarly, another

educational institution may have been established by members

of a particular community to educate their own children.

The Gulburga Medical College in the State of Karnataka, it

is pointed out, is established to meet the educational needs

in the field of medicine to the students belong to Gulburga,

Raichur and Bidar districts, formerly included within the

Nizam's dominions and which were included in the State of

Karnataka on the reorganisations of States. Similarly, the

Kempe Gowda Medical College in Karnataka, it is submitted,

has been established by members of Vokkaliga community.

Their wishes and objectives have to be respected. There may

be yet another institution which may have been established

with the and of a large donation made by a charitable-minded

person e.g., Annamalai University in Tamil Nadu. If such

University stipulates that members of the founder's family

or their nominees will be admitted every year to the extent

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 51 of 111

of a certain percentage, no fault can be found therewith.

(i)By virtue of mere recognition and/or affiliation these

private educational institutions do not become

instrumentalities of the State within the meaning of Article

12 of the Constitution. The concept of 'State action'

cannot be extended to these colleges so as to subject them

to the discipline of Part III. It may be a different matter

if the institution is in receipt of any aid, partially and

wholly, from the State. In such a situation, the command of

Article 29(2) comes into play but even that does not oblige

the institution to admit the students exclusively on the

basis of merit but only not to

665

deny admission to anyone any of the grounds mentioned

therein.

52.On the other hand, it is contended by the learned

counsel for the respondents as also by the learned counsel

for the India Medical Council and All India Council for

Technical Education that: (a) imparting of education has

always been recognised in this country from times immemorial

as the religious duty. Both Hinduism and Islam treated it

as such. It has also been recognised as a charitable

object. But never has it been recognised as a trade or

business. It is a mission, not a trade. Commercialization

of education has always been looked upon with disfavor in

this country. As far back as in 1956, the Parliament

expressed its intention by enacting the University Grants

Commission Act which specified the prevention of

commercialization of education as one of the duties of the

University Grants Commission. The same intention has been

expressed by several enactments made by the Parliament and

State Legislatures since then.

(b)Imparting of education is the most important function

of the State. This duty may. be discharged by the State

directly or through the instrumentality of private

educational institutions. But when the State permits a

private body or an individual to perform the said function

it is its duty to ensure that no one gets an admission or an

advantage on account of his economic power to the detriment

of a more meritorious candidate.

(c)The very concept of collecting the cost of the

education that is what the concept of cost-based or self-

financing educational institutions means is morally

abhorrent and is opposed to public policy. A cavitation fee

does not cease to be a capitation fee just because it is

called cost-based education or by calling the institution

concerned as a self-financing institution. These

expressions are but a cover a mere pretence for

collecting capitation fee. It is nothing but exploitation.

It is an elitist concept basically opposed to the

constitutional philosophy By allowing such education, two

classes will come into being. The concept suffers from

class bias.

(d)If, for any reason, it is held that a citizen or a

person has a right to establish an educational institution,

the said right does not carry with it the right to

recognition or the right to affiliation, as the case may be.

It has been repeatedly held by this court that even a

minority educational institution has no fundamental right to

recognition or affiliation. If so, no such right can be

envisaged in the case of majority community or in the case

666

individuals or persons. Once this is so, it is open to the

State or the University according recognition or affiliation

to impose such conditions as they think appropriate in the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 52 of 111

interest of fairness, merit, maintenance of standards of

education and so on. In short, it is open to the Government

or the University to make it a condition of

recognition/affiliation that the admission of students, in

whichever category it may be, shall be on the basis of merit

and merit alone. The institutions obtaining

recognition/affiliation will be bound by such condition and

any departure therefrom renders the recognition/affiliation

liable to be withdrawn.

(e)Even if the Government or the University does not

expressly impose such a condition, such condition is

implicit by virtue of the fact that in such a situation, the

activity of the private educational institution is liable to

be termed as 'State action'. The fact that these

institutions perform an important public function coupled

with the fact that their activity is closely inter-twined

with governmental activity, characterises their action as

'State action'. At the minimum, the requirement would be to

act fairly in the matter of admission of students and

probably in the matter of recruitment' and treatment of its

employees as well. These institutions are further bound not

to charge any fee or amount over and above what is charged

in similar governmental institutions. If they need

finances, they must find them through donations or with the

help of religious or charitable organisations. They cannot

also say that they will first collect capitation fees and

with that money, they will establish an institution. At the

worst, only the bare running charges can be charged from the

students. The capital cost cannot be charged from them.

53.Before we express ourselves upon the rival contentions

urged by the parties, it would be appropriate to notice the

relevant statutory provisions-.

UNIVERSITY GRANTS COMMISSION ACT.

54.The University Grants Commission Act was enacted by the

Parliament in 1956 to provided for the ordination and

determination of standards in Universities and for that

purpose to establish a University Grants Commission.

Chapter III deals with the powers and functions of the

Commission. Section 12 empowers the Commission to take, in

consultation with the Universities and other concerned

bodies, all such steps as it may think fit for the promotion

and ordination of University education

667

and for, the determination and maintenance of standards of

teaching, examination and research in the Universities.

Section 12-A is relevant for our purposes. Clause (a) in

Sub-section (1) defines the expression 'affiliation'. It

reads:

"Affiliation' together with its grammatical

variations, includes in relation to a college,

recognition or such college, association of

such college with, and admission of such

college to the privileges of a University."

Clause (b) defines the expression 'college' in

the following words:

" 'College' means any institution whether

known as such or by any other name which

provides for a course of study for obtaining

any qualification from a University and which

in accordance with the rules and regulations

of such University is recognised as competent

to provide for such course of study and

present students undergoing such course of

study for the examination for the award of

such qualification."

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 53 of 111

Sub-secton (2) empowers the Commission inter alia to

regulate the fee chargeable in constituent and affiliated

colleges, if such a course is found to be necessary to

ensure that "no candidate secures admission to such course

of study by reason of economic power and thereby prevents a

more meritorious candidate from securing admission to such

course of study." It would be appropriate to set out Sub-

section (2) in its entirety. It reads:

"Without prejudice to the generality of the

provisions of

Section if, having regard to,

(a) the nature of any course of study for

obtaining any qualification from any

University,

(b) the types of activities in which persons

obtaining such qualification are likely to be

engaged on the basis of such qualification,

(c) the minimum standards which a person

possessing

such qualification should be able to maintain

in his

668

work relating to such activities and the

consequent need for ensuring, so far as may

be, that no candidate secures admission to

such course of study by reason of economic

power and thereby prevents a more meritorious

candidate from securing admission to such

course of study-, and

(d) all other relevant factors,

the Commission is satisfied that it is

necessary so to do in the public interest, it

may, after consultation with the University or

Universities concerned, specify the regula-

tions the matters in respect of which fees may

be charged, and the scale of fees in

accordance with which fees shall be charged in

respect of those matters on and from such date

as may be specified in the regulations in this

behalf, by any college providing for such

course of study from or in relation to any

student in connection with his admission to

and prosecution of such course of study-

Provided that different matters and different

scales of fees may be so specified in relation

to different Universities or different classes

of colleges or different areas."

Sub-Section (3) then says that where regulations of the

nature referred to in sub-section (2) have been made, no

college shall levy or charge fees in excess of what is

specified. Sub-section (4) provides the consequence of

violation by any college of such regulations. Sub-section

(5) says that violation shall also mean disaffiliation.

Section 14 prescribes the consequences of failure of

Universities to comply with the recommendations of the

Commission. It includes withholding of funds. Sub-section

(1) of Section 22 which occurs in Chapter IV declares that

'the right of conferring or granting degree shall be

exercised only by a University established or incorporated

by or under a Central Act, a provincial Act or a State Act

or an institution deemed to be a University under Section 3

or ,in institution specially empowered by an Act of

Parliament to confer or ,;rant degrees." Sub-section (2)

emphatically declares that "save as provided in Sub-section

(1), no person or authority shall confer or grant or hold

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 54 of 111

self or itself out as entitled to confer or grant any

degree.' Sub-section (3) defines the expression 'degree'.

It means "any such degree as may, with

669

the previous, approval of the Central Government, by

specified in this behalf by the on by notification in the

official gazette." Section 23 prohibits the use of the word

'University' in the name of any on other than a University

established or incorporated under an enactment or a deemed

University. Section 24 provides for penalties for violation

of Sections 22 and 23. Section 25 confers the rule making

power upon the central Government while Section 26 confers

the regulation power upon the Commission.

INDIAN MEDICAL COUNCIL ACT:

55. The Indian Medical Council Act, 1956 was enacted by the

parliament to provide for the reconstitution of the Medical

Council of India and the maintenance of a medical register

for India and for matters connected therewith. The

expression 'recognised medical qualification' is defined in

clause (h) of Section 2 to mean "any-of the medical

qualifications included in the schedules." The expression

'approved institution' has been defined in clause (a) to

mean 'a hospital, health centre or every such institution

recognised by a University as an institution in which a

person may undergo training, if any, required by his course

of study before the award of any medical qualification to

him." Section 11 declares that the medical qualifications

granted by any University or medical institution in India

which are included in the first schedule to the Act shall be

recognised medical qualifications for the purposes of the

Act. It also provides the procedure for any University or

Medical institution applying to the Central Government for

recognising new or other qualifications. Section 13 says

that the medical qualifications granted by medical

institutions in India not included in the First Schedule but

included in Part I of the Third Schedule shall also be

recognised medical qualifications for the purposes of the

Act. Section 19 provides for withdrawal of recognition in

cases where the Council finds lowering of standards of

proficiency, knowledge or skill. Section 21 provides for

the maintenance of an Indian Medical Register. Section 27

says that a person registered in the Indian Medical Council

Register shall be entitled to practice as a medical

practitioner in any part of India and to recover in due

course of law in respect of such practice any expenses,

charges or fees to which he is entitled. Section 32 confers

the rule making power upon the Government while Section 33

confers the regulation making power upon the Council. The

First Schedule mentions the names of the Universities and

the recognised medical qualifications

670

awarded by them. Same is done by Part I of the Third

Schedule.

ALL INDIA COUNCIL FOR TECHNICAL EDUCATION ACT, 1987.

56.This Act has been made by the Parliament for the

establishment of the 'All India Council for Technical

Education' with a view to the proper planning and

coordinated development of the technical education system

throughout the country, promotion of qualitative improvement

of such education and other allied matters. Section 3 of

the Act provides for the establishment of the Council while

Section 10 specifies the functions of the Council. Apart

from directing generally that the Council shall take all

such steps as it may think fit for ensuring coordinated and

integrated development of technical education and

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 55 of 111

maintenance of standards, the Act specifically empowers the

Council, inter alia, to "(j) fix norms and guidelines for

charging tuition and other fees; (k) grant approval for

starting new technical institutions and for introduction of

new courses or programmes in consultation with the agencies

concerned, and (n) take an necessary steps to prevent

commercialisation of technical education." It is true, there

is no express provision in the Act which says that no

engineering college or any other college or institution

imparting technical education shall be established except

with the permission of the Council. But this may be for the

reason that such a power was intended to be exercised by the

Council itself if it thinks necessary to do so. We are of

the opinion that the vast powers conferred upon the Council

by Section 10, 'including those specified above, do extend

to and entitle it to issue an order to the above effect. It

can also say that even in the existing institutions, no new

course, faculty or class shall be opened except with its

approval. It can also pass appropriate directions to the

existing institutions as well for achieving the purposes of

the Act. Such an order may indeed be necessary for a proper

discharge of the wide-ranging functions conferred upon the

Council.

57.It is brought to our notice by the learned counsel

appearing for the Council that the Council has evolved a

proforma of undertaking which should be executed by the

person-in-charge of any institution proposed to be

established stating inter alia that such institution will

not only observe the several orders and instructions issued

by the Council but it shall not charge any capitation fee

from the students/guardians of the students in any form.

The proforma further stipulates that in the event of

non-com-

671

pliance of any of the orders and directions issued by the

Council or the terms of the undertaking, it shall be open to

the Council to take appropriate action including withdrawal

of its approval or recognition, which automatically entails

stoppage of financial grant or assistance from the Central

and State Government. It is also brought to our notice that

the Council has issued guidelines for admission to

Engineering Degree and Engineering Diploma programmes in

G.S.R. 320 dated 15th June, 1992 in exercise of the power

conferred upon it by Section 23(1) of the Act (Section 23 of

the Act confers the regulation making power upon the

Council).

STATE ENACTMENTS:

58.As mentioned in Part I of this judgment, the States of

Andhra Pradesh, Karnataka, Maharashtra and recently the

state of Tamil Nadu have all enacted legislation prohibiting

the charging of capitation fee. We had also set out the

Preamble to the Andhra Act which Preamble is to be found

almost in every such enactment. We had referred to the A.P.

Education Act, 1982 as well which provides that no

educational institution shall be established in the State

except with the permission of the competent authority

INDIAN MEDICAL COUNCIL (AMENDMENT) ORDINANCE, 1992:

59.The last of the statutory provisions to be noticed is

of great relevance herein viz., the Indian Medical Council

(Amendment) Ordinance, 1992 being Ordinance No. 13 of 1992

issued by the President of India on 27th August, 1992. By

this Ordinance, Section 10-A to 10-C have been added besides

amending Section 33. Section 10-A provides that

notwithstanding anything contained in the Indian Medical

Council Act or any other law for the time being in force, no

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 56 of 111

medical college shall be established nor any new or higher

course of study or training opened in an existing

institution nor shall it increase its admission capacity in

any course of study or training, except with the previous

permission of the Central Government obtained in accordance

with the provisions of the said section. The section

prescribes the procedure for submitting the application, the

matters which the Central Government shall take into account

while considering the said application, the obligatory

consultation with the Council and the manner in which the

application shall be disposed of. It also

672

provides the matters which the Council should take into

consideration while making its recommendation to the Central

Government. Suffice it to mention that the several matters

which the Council and the Central Government are directed to

take into consideration are designed to ensure that a

properly equipped institution is in place before it is

permitted to impart medical education. Section 10-B

provides for non-recognition of medical qualifications

awarded by institutions which have been established without

the previous permission of the Central Government or by an

institution which violates any of the conditions in Section

10-A. Section 10-C provides that if any person has

established a medical college or has opened a new or higher

course of study in an existing college, he shall, within one

year from the date of the commencement of the Ordinance,

seek permission of the Central Government in accordance with

Section 10-A.

GROUND REALITY:

60.Notwithstanding the fact that education is the second

highest sector of budgeted expenditure after the Defence,

the outlay on education is woefully inadequate to the needs

of the people. Whereas many other countries spend six to

eight per cent of their Gross National Product on education,

our expenditure on education is only three per cent of the

Gross National Product. Seventy five to eight per cent of

the expenditure goes in paying the salaries of the teachers

and other connected staff. These are the statements made in

the Government of India publication 'Challenge of Education a policy pe

rspective" referred to hereinbelow. Even so,

on account of lack of proper supervision, lack of self-

discipline and commitment, the quality and standard of

instruction in most of the Government schools and colleges

except the professional colleges is woeful. This has

provided an occasion and an opportunity to private

educational institutions to fill the void, both in terms of

meeting the need and more particularly in the matter of

quality of instruction. Because, the State is in no

position to devote more resources and also because the need

is constantly growing, it is not possible to do without

private educational institutions. In this context, it is

appropriate nay, necessary, to notice the stand of the

Government of India in this behalf. It is thus: the Central

Government does not have the resources to undertake any

additional financial responsibility for medical or technical

education; it is unable to aid any private educational

institution financially at a level higher than at present;

therefore the policy

673

of the Central Government is to involve private and

voluntary efforts in the education sector in conformity with

accepted norms and goals; however, the private educational

institutions cannot be compelled to charge only that fee as

is charged in Governmental institutions; in 1986, the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 57 of 111

Central Government has evolved the 'New Education Policy'

according to it, 'in the interests of maintaining the

standards and for several other valid reasons, the

commercialisation of technical and professional education

will be curbed. An alternative system will be devised to

involve private and voluntary effort in this section of

education, in conformity with accepted norms and goals.'

(vide parts 6-20); the amendments proposed to I.M.C. Act,

1956 in 1987 have not materialised so far; so far as

engineering colleges are concerned, permission is being

granted by the A.I.C.T.E. subject to the condition that they

do not collect any capitation fee; according to the

guidelines issued by the A.I.C.T.E., the technical colleges

will be permitted to recover 'only a graded percentage of

the average cost of student education, depending on whether

the institution is Government-funded, Government-aided or

unaided.' (According to the these guidelines, it is stated,

the students will be asked to pay 20% of the cost in

Government funded institutions, 30-35% in Government-aided

and 70% in unaided institutions). It is finally submitted

that:

"(a) Conferring unconditional and unqualified right to

education at all levels to every citizen involving a

constitutional obligation on the State to establish

educational institutions either directly or through State

agencies is not warranted by the Constitution besides being

unrealistic and impractical.

(b)When the Government grants recognition to private

educational institutions it does not create an agency to

fulfill its obligations under the Constitution and there is

no scope to import the concept of agency in such a

situation.

(c)The principles laid down in Mohini Jain's case do

require reconsideration.

(d)It would be unrealistic and unwise to discourage

private initiative in providing educational facilities

particularly for higher education. The private sector

should be involved and indeed encouraged to augment the much

needed resources in the field of education, thereby making

as much progress as possible in achieving the Constitutional

goals in this respect.

674

(e)At the same time, regulatory controls have to be

continued and strengthened in order to prevent private

educational institutions from commercializing education.

(f)Regulatory measures should be maintained and

strengthened so as to ensure that private educational

institutions maintain minimum standards and facilities.

(g)Admissions within all groups and categories should be

based on merit. There may be reservation of seats in favour

of the weaker sections of the society and other groups which

deserve special treatment. The norms for admission should

be pre-determined and transparent."

The stand of the State Governments of Andhra Pradesh,

Karnataka, Maharashtra and Tamil Nadu is no different.

61.The hard reality that emerges is that private

educational institutions are a necessity in the present day

context. It is not possible to do without them because the

Governments are in no position to meet the demand

particularly in the sector of medical and technical

education which call for substantial outlays. While

education is one of the most important functions of the

Indian State it has no monopoly therein. Private

educaitonal institutions including minority educational

institutions too have a role to play.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 58 of 111

62.Private educational institutions may be aided as well

as un-aided. Aid given by the, Government may be cent per

cent or partial. So far as aided institutions are

concerned, it is evident, they have to abide by all the

rules and regulations as may be framed by the Government

and/or recognising/affiliating authorities in the matter of

recruitment of teachers and staff, their conditions of

service, syllabus, standard of teaching and so on. In

particular, in the matter of admission of students, they

have to follow the rule of merit and merit alone subject

to any reservations made under Article 15. They shall not

be entitled to charge any fees higher than what is charged

in Governmental institutions for similar courses. These are

and shall be understood to be the conditions of grant of

aid. The reason is simple: public funds, when given as

grant and not as loan carry the public character

wherever they go; public funds cannot be donated for private

purposes. The element of public character necessarily mean

a fair conduct in all respects consistent with the

constitutional mandate of Article 14 and

675

15.All the Governments and other authorities in charge of

granting aid to educational institutions shall expressly

provide for such conditions (among others), if not already

provided, and shall ensure compliance with the same. Again

aid may take several forms, For example, a medical college

does necessarily require a hospital. We are told that for a

100 seat medical college, there must be a fully equipped

700-bed hospital. Then alone, the medical college can be

allowed to function. A private medical college may not have

or may not establish a hospital of its own. It may request

the Government and the Government may permit it to avail of

the services of a Government hospital for the purpose of the

college free of charge. This would also be a form of aid

and the conditions aforesaid have to be imposed may be

with some relaxation in the matter of fees chargeable and

observed. The Government (Central and State) and all other

authorities granting aid shall impose such conditions

forthwith, if not already imposed. These conditions shall

apply to existing as well as proposed private educational

institutions.

63.So far as un-aided institutions are concerned, it is

obvious that they cannot be compelled to charge the same fee

as is charged in Governmental institutions. if they do so

voluntarily, it is perfectly welcome but they cannot be

compelled to do so, for the simple reason that they have to

meet the cost of imparting education from their own

resources and the main source, apart from

donations/charities, if any, can only be the fees collected

from the students. It is here that the concepts of 'self-

financing educational institutions' and 'cost-based

educational institutions' come in. This situation presents

several difficult problems. How does one determine the

'cost of education' and how and by whom can it be regulated?

The cost of education may very, even within the same

faculty, from institution to institution. The facilities

provided, equipment, infrastructure, standard and quality of

education obtaining may vary from institution to

institution. The court cannot certainly do this. It must

be done by Government or University or such other authority

as may be designated in that behalf. Even so, some

questions do arise whether cost-based education only means

running charges or can it take in capital outlay? Who pays

or who can be made to pay for establishment, expansion and

improvement/diversification of a private educational

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 59 of 111

institutions? Can an individual or body of persons first

collect amounts (by whatever name called) from the intending

students and with those monies establish an institution an

activity similar to builders of apartments in the cities?

How much should

676

the students. coming in later years pay? Who should work

out the economics of each institution? Any solution evolved

has to take into account all these variable factors. But

one thing is clear: commercialisation of education cannot

and should not be permitted The Parliament as well as State

Legislatures have expressed this intention in unmistakable

terms. Both in the light of our tradition and from the

stand-point of interest of general public, commercialisation

is positively harmful; it is opposed to public policy. As

we shall presently point out, this is one of the reasons for

holding that imparting education cannot be trade, business

or profession. The question is how to encourage private

educational institutions without allowing them to

commercialise the education? This is the troublesome

question facing the society, the government and the courts

today. But before we proceed to evolve a scheme to meet

this problem, it is necessary to answer a few other

questions raised before us.

RIGHT TO ESTABLISH AN EDUCATIONAL INSTITUTION-

64.Article 19(1)(g) of the Constitution declares that all

citizens of this country shall have the right "to practice

any profession, or to carry on any occupation, trade on

business". Clause (6) of Article 19, however, says:

"Nothing in sub-clause (g) of the said clause

shall affect the operation of any existing law

in so far as it imposes or prevents the State

from making any law imposing, in the interests

of the general public, reasonable restrictions

on the exercise of the right conferred by the

said clause and, in particular, nothing in the

said sub-clause shall affect the operation of

any existing law in so far as it relates to or

prevents the State from making any law

relating to:

(i)the professional or technical

qualifications necessary for practising any

profession or carrying on any occupation,

trade or business, or

(ii)carrying on by the State, or by a

corporation owned or controlled by the State

or any trade, business, industry or service

whether to the exclusion, complete or partial,

of citizens or otherwise.'

While we do not with to express any opinion on the question

whether

677

the right to establish an educational institution can be

said to be carrying on any "occupation' within the meaning

of Article 19(1)(g), perhaps, it is we are certainly of

the opinion that such activity can neither be a trade or

business nor can it be a profession within the meaning of

Article 19(1)(g). Trade or business normally connotes an

activity carried on with a profit motive. Education has

never been commerce in this country. Making it one is

opposed to the ethos, tradition and sensibilities of this

nation. The argument to the contrary has an unholy ring to

it. Imparting of education has never been treated as a

trade or business in this country since times immemorial.

It has been treated as a religious duty. It has been

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 60 of 111

treated as a charitable activity. But never as trade or

business. We agree with Gajendragadkar, J. That "education

in its true aspect is more a mission and a vocation rather

than a profession or trade or business, however wide may be

the denotation of the two latter words........ (See

University of Delhi [1961] 1 SCR 703). The Parliament too

has manifested its intention repeatedly (by enacting the

U.G.C. Act, I.M.C. Act and A.I.C.T.E. Act) that

commercialisation of education is not permissible and that

no person shall be allowed to steal a march over a more

meritorious candidate because of his economic power. The

very game intention is expressed by the Legislatures of

Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu in the

Preamble to their respective enactments prohibiting charging

of capitation fee.

65.We are, therefore, of the opinion, adopting the line of

reasoning in State of Bombay v. R.M.D.C, 1957 S.C.R. 874,

that imparting education cannot be treated as a trade or

business. Education cannot be allowed to be converted into

commerce nor can the petitioners seek to obtain the said

result by relying upon the wider meaning of 'occupation'.

The content of the expression "occupation" has to be

ascertained keeping in mind the fact that clause (g) employs

all the four expressions viz., profession, occupation, trade

and business. Their fields may overlap, but each of them

does certainly have a content of its own, distinct from the

others. Be that as it may, one thing is clear imparting

of education is not and cannot be allowed to become

commerce. A law, existing or future, ensuring against it

would be a valid measure within the meaning of clause (6) of

Article 19. We cannot, therefore, agree with the contrary

proposition enunciated in 1968 Bombay 91, 1984 A.P. 251 and

1986 Karnataka 119.

678

66.The learned counsel for the petitioners relied upon

certain decisions in support of their contention that right

to establish an educational institution flows from Article

19(1)(g). The first is in Bharat Sevashram Sangh v. State

of Gujarat [1986] 3 S.C.R. 602, a decision of a Bench

consisting of E.S. Venkataramiah and Ranganath Misra, JJ.

At page 609, while dealing with Section 33 of the Gujarat

Secondary Education Act empowering the Government to take

over an educational institution in certain situations for a

period not exceeding five years, the teamed Judges observed

that "the said provision is introduced in the interest of

the general public and does not in any way affect

prejudically the fundamental right of the management

guaranteed under Article 19(1)(g) of the Constitution."

Actually, the issue now before us was not raised or

considered in the said decision. Moreover, the decision

does not say whether it is a profession, occupation, trade

or business.

Reliance is then placed upon the Seven Judge Bench decision

in Bangalore Water Supply and Sewerage Board v. Rajappa,

[1978] 3 S.C.R. 207. Krishna Iyer, J. dealing with the

meaning of the expression "industry" in I.D. Act observed

that even educational institutions would fall within the

purview of "Industry". We do not think the said observation

in a different context has any application here.

So far as the other decision in State of Maharashtra v. Lok

Shikshan Sanstha, [1971] Suppl. S.C.R. 879 is concerned,

all that the court held there was that is view of the

operation of emergency, Article 19 is not available to the

petitioners seeking to establish an educational institution.

Article 358 was held to be a bar. But the decision does not

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 61 of 111

say that such a right does inhere in the petitioners.

67.We are also of the opinion that the said activity

cannot be called a 'profession' within the meaning of

Article 19(1)(g). It is significant to notice the words "to

practice any profession. Evidently, the reference is to

such professions as may be practised by citizens i.e.,

individuals. (See N.U.C Employees v. Industrial Tribunal,

A.I.R. 1962 S.C. 1080 at 1085). Establishing educational

institutions can by no stretch of imagination be treated as

'practising any profession'. Teaching may be a profession

but establishing an institution employing teaching and non-

teaching staff, procuring the necessary infrastructure for

running a school or college is

679

not 'practising profession'. It may be anything but not

practising a profession. We must make it clear that we have

not gone into the precise meaning an content of the

expressions profession, occupation, trade or business for

the reason that it is not necessary for us to do so-in view

of the approach we are adopting hereinafter, which would be

evident from the succeeding paragraphs. Our main concern in

the entire preceding discussion is only to establish that

the activity of establishing and/or running an educational

institution cannot be a matter of commerce.

68.For the purpose of these cases, we shall proceed on the

assumption that a person or body of persons has a right to

establish an educationtal institution in this country. But

this right, we must make it clear, is not an absolute one.

It is subject to such law as may be made by the State in the

interest of general public.

69.We must, however, make it clear, and which is of

crucial importance herein, that the right to establish an

educationcal institution does not carry with it the right to

recognition or the right to affiliation. In St. Xaviers

College v. Gujarat, [1975] 1 S.C.R. 173 it has been held

uniformly by all the nine learned Judges that there is no

fundamental right to affiliation. Ray, C.J., stated that

this has been "the consistent view of this court." They also

recognised that recognition or affiliation is essential for

a meaningful exercise of the right to establish and

administer educational institutions. Recognition may be

granted either by the Government or any other authority or

body empowered to accord recognition. Similarly,

affiliation may be granted either by the University or any

other academic or other body empowered to grant affiliation

to other educational institutions. In other words, it is

opento a person to establish an educational institution,

admit students, imparteducation, conduct examination and

award certificates to them. But he,or the educational

institution has no right to insist that the certificates

ordegree (if they can be called as such) awarded by such

institution should be recognised by the State much less

have they the right to say that the students trained by the

institution should be admitted to examinations conducted by

the University or by the Government or any other authority,

as the case may be. The institution has to seek such

recognition or affiliation from the appropriate agency.

Grant of recognition and/or affiliation is not a matter of

course nor is it a formality. Admission to the privileges

of a University is a power to be exercised with

680

great care, keeping in view the interest of the general

public and the nation. it is a matter of substantial

significance the very life-blood of a private educational

institution. Ordinarily speaking, no educational

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 62 of 111

institution can run or survive unless it is recognised by

the Government or the appropriate authority and/or is

affiliated to one or the other Universities in the country.

Unless it is recognised and/or affiliated as stated above,

it's certificates will be of no use. No one would join such

educational institution. As a matter of fact, by virtue of

the provisions of the U.G.C. Act, noticed hereinabove, no

educational institution in this country except a University

is entitled to award degrees. It is for this reason that

all the private educational institutions seek recognition

and/or affiliation with a view to enable them to send the

students trained by them to appear at the examinations

conducted by the Government/University. The idea is that if

such students pass the said examination, the

Government/University will award its degree/diploma/cer-

tificate to them. These educational institutions follow the

syllabus prescribed by the Government/University, have the

same courses of study, follow the same method of teaching

and training. They do not award their own

degrees/qualifications. They prepare their students for

University/Government examinations, request the

University/Government to permit them to appear at the

examinations conducted by them and to award the appropriate

degrees to them'. Clearly and indubitably, the

recongnised/affiliated private educational institutions,

supplement the function performed by the institutions of the

State. Theirs is not an independent activity but one

closely allied to and supplemental to the activity of the

State. In the above circumstances, it is idle to contend

that imparting of education is a business like any other

business or that it is an activity akin to any other

activity like building of roads, bridges etc. In short the

position is this. No educational institution except an

University can award degrees (Sections 22 and 23 of the

U.G.C. Act). The private educational institutions cannot

award their own degrees. Even if they award any

certificates or other testimonials they have no practical

value inasmuch as they are not good for obtaining any

employment under the State or for admission into higher

courses of study. The private educational institutions

merely supplement the effort of the State in educating the

people, as explained above. It is not an independent

activity. It is an activity supplemental to the principal

activity carried on by the State. No private education

institution can survive or subsist without recognition

and/or

681

affiliation. The bodies which grant recognition and/or

affiliation are the authorities of the State. In such a

situation, it is obligatory in the interest of general

public upon the authority granting recognition or

affiliation to insist upon such conditions as are

appropriate to ensure not only education of requisite

standard but also fairness and equal treatment in the matter

of admission of students. Since the recognising/affiliating

authority is the 'State' it is under an obligation to impose

such conditions as part of its duty enjoined upon it by

Article 14 of the Constitution. It cannot allow itself or

its power and privilege to be used unfairly. The incidents

attaching to the main activity attach to supplemental

activity as well. Affiliation/recognition is not there for

anybody to get it gratis or unconditionally. In our

opinion, no Government, authority or University is justified

or is entitled to grant recognition/affiliation without

imposing such conditions. Doing so would amount to

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 63 of 111

abdicating its obligations enjoined upon it by Part III; its

activity is bound to be characterised as unconstitutional

and illegal. To reiterate,, what applies to the man

activity applies equally to supplemental activity. The

State cannot claim immunity from the obligations arising

from Articles 14 and 15. If so, it cannot confer such

immunity upon its affiliates. Accordingly, we have evolved with the

help of the counsel appearing before us and

keeping in view the positive features of the several Central

and State enactments refeffred to hereinbefore the

following scheme which every authority granting

recognition/affiliation shall impose upon the institutions

seeking such recognition/affiliation.

The idea behind the scheme is to eliminate discretion in the

management altogether in the matter of admission. It is the

discretion in the matter of admission that is at the root of

the several ills complained of It is the discretion that has

mainly led to the commercialisation of education.

'Capitation fee' means charging or collecting amount beyond

what is permitted by law; all the Acts have defined this

expression in this sense. We must strive to bring about a

situation where there is no room or occasion for the

management or anyone on its behalf to demand or collect any

amount beyond what is permitted. We must clarify that

charging the permitted fees by the private educational

institutions which is bound to be higher than the fees

charged in similar governmental institutions by itself

cannot be characterised as capitation fees. This is the

policy underlying all the four States enactments prohibition

capitation fees. All of them recognise the necessity of

charging higher fees by private educational institutions.

682

They seek to regulate the fees that can be charged by them

which may be called permitted fees and to bar them from

collecting anything other than the permitted fees, which is

what 'Capitation fees' means. Our attempt in evolving the

following scheme precisely is to given effect to the said

legislative policy. It would be highly desirable if this

Scheme is given a statutory shape by incorporating it in the

Rules that may be framed under these enactments.

SCHEME

70.The scheme evolved herewith is in the nature of

guidelines which the appropriate Governments and recognising

and affiliating authorities shall impose and implement in

addition to such other conditions and stipulations as they

may think appropriate as conditions for grant of permission,

grant of recognition or grant of affiliation, as the case

may be. We are confining the scheme for the present

only to 'professional colleges.'

The expression Professional colleges' in this

scheme includes:

(i) medical colleges, dental colleges and

other institutions and colleges imparting

Nursing, Pharmacy and other courses allied to

Medicine, established and/or run by private

education institutions,

(ii)colleges of engineering and colleges and

institutions imparting technical education

including electronics, computer sciences,

established and/or run by private educational

institutions, and

(iii)such other colleges to which this scheme

is made applicable by the Government,

recognising and/or affiliating authority."

The expression "appropriate authority" means the Government,

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 64 of 111

University or other authority as is competent to grant

permission to establish or to grant recognition to a

professional college.

The expression 'competent authority' in this scheme means

the Government/University or other authority, as may be

designated by the Government/University or by law, as is

competent to allot students for admission to various

professional colleges in the given State.

683

It is made clear that only those institutions which seek

permission to establish and/or recognition and/or

affiliation from the appropriate authority shall alone be

made bound by this scheme. This scheme is not applicable to

colleges run by Government or to University colleges. In

short, the scheme hereinafter mentioned shall be made a

condition of permission, recognition or affiliation, as the

case may be. For each of them viz., grant of permission,

grant of recognition, grant of affiliation, these conditions

shall necessarily be imposed, in addition to such other

conditions as the appropriate authority may think

appropriate. No Private educational institutaion shall be

allowed to send its students to appear for an examination

held by any Government or other body constituted by it or

under any law or to any examination held by any University

unless the concerned institution and the relevant course of

study is recognised by the appropriate authority and/or is

affiliated to the appropriate University, as the case may

be.

(1)A professional college shall be permitted to be

established and/or administered only by a Society registered

under the Societies Registration Act, 1860 (or the

corresponding Act, if any, in force in a given State), or by

a Public Trust, religious or charitable, registered under

the Trusts Act, Wakfs Act (or the corresponding legislation,

if any, e.g., Tamil Nadu Religious and Charitable Endowments

Act and A.P. Religious and Charitable Endowments Act). No

individual, firm, company or other body of individuals, by

whatever appellation called except those mentioned above

will be permitted to establish and/or administer a

professional college. All the existing professional

colleges which do not conform to the above norm shall be

directed to take appropriate steps to comply with the same

within a period of six months from today. In default

whereof, recognition/affiliation accorded shall stand

withdrawn. (In this connection reference may be had to Rule

86(2) of Maharashtra Grant-in-aid code (referred to in State

of Maharashtra v. Lok Shikshan Sanstha, [1971] Suppl.

S.C.R. 879 which provided that schools which are not

registered under the Societies Registration Act, shall not

be eligible for grant. Grant of recognition and affiliation

is no less significance).

(2)Atleast, 50% of the seats in every professional college

shall be filled by the nominees of the Government or

University, as the case may be, hereinafter referred to as

"free seats". These students shall be selected on the basis

of merit determined on the basis of a common entrance

684

examination where it is held or in the absence of an

entrance examination, by such criteria as may be determined

by the competent authority or the appropriate to authority,

as the case may be. It is, however, desirable and

appropriate have a common entrance exam for regulating

admissions to these colleges/institutions, as is done in the

State of Andhra Pradesh. The remaining 50% seats (payment

seats) shaft be filled by those candidates who are prepared

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 65 of 111

to pay the fee prescribed therefor and who have complied

with the instructions regarding deposit and furnishing of

cash security/Bank guarantee for the balance of the amount.

The allotment of students against payment seats shall also

be done on the basis of inter se merit determined on the

same basis as in the case of free seats. There shall be no

quota reserved for the management or for any family, caste

or community which may have established such college. The

criteria of eligibility and all other conditions shall be

the same in respect of both free seats and payment seats.

The only distinction shall be the requirement of higher fee

by the 'payment students'. The Management of a professional

college shall not be entitled to impose or prescribe any

other and further eligibility criteria or condition for

admission either to free seats or to payment seats. It

shall, however, be open to a professional college to provide

for reservation of seats for constitutionally permissible

classes with the approval of the affiliating University.

Such reservations, if any, shall be made and notified to the

competent authority and the appropriate authority atleast

one month prior to the issuance of notification @ for

applications for admission to such category of colleges. In

such a case, the competent authority shall allot students

keeping in view the reservations provided by a college. The

rule of merit shall be followed even in such reserved

categories.

(3)The number of seats available in the professional

colleges (to which this scheme is made applicable) shall be

fixed by the appropriate authority. No professional college

shall be permitted to increase its strength except under the

permission or authority granted by the appropriate

authority.

(4)No professional college shall call for applications for

admission separately or individually. AD the applications

for admission to all the seats available in such,colleges

shall be called for by the competent authority alone, along

with applications for admission to Government/University

colleges of nature. For example, there shall be only one

notification

685

by the competent authority calling for applications for all

the medical colleges in the State and one notification for

all the engineering colleges in the State and so on. The

application forms for admission shall be issued by the

competent authority (from such offices, centres and places

as he may direct). The application form shall contain a

column or a separate part wherein an applicant can indicate

whether he wishes to be admitted against a payment seat and

the order of preference, up to three professional colleges.

(5)Each professional college shall intimate the competent

authority, the State Government and the concerned University

in advance the fees chargeable for the entire course

commencing that academic year. The total fees shall be

divided into the number of years/semesters of study in that

course. In the first instance, fees only for the first

year/semester shall be collected. The payment students will

be, however, required to furnish either cash security or

bank grantee for the fees payable for the remaining

years/semesters. The fees chargeable, in each professional

college shall be subject to the ceiling prescribed by the

appropriate authority or by a competent Court. The

competent authority shall issue 'a brochure, on payment of

appropriate charges, along with the application form for ad-

mission, giving full particulars of the courses and the

number of seats available, the names of the colleges their

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 66 of 111

location and also the fees chargeable by each professional

college. The brochure win also specify the minimum

eligibility conditions, the method of admission (whether by

entrace test or otherwise) and other relevant particulars.

(6)(a) Every State Government shall forthwith constitute a

Committee to fix the ceiling on the fees chargeable by a

professional college or class of professional colleges, as

the case may be. The Committee shall consist of a Vice-

Chancellor, Secretary for Education (or such Joint

Secretary, as he may nominate) and Director, Medical

Education/Director Technical Education. The committee shall

make such enquiry as it thinks appropriate. It shalt

however, give opportunity to the professional colleges (or

their association(s), if any) to place such material, as

they think fit. It shall, however, not be bound to give any

personal hearing to anyone or follow any technical rules of

law. The Committee shall fix the fee once every three years

or at such longer intervals, as it may think appropriate.

(b) It would be appropriate if the U.G.C. frames

regulations under

686

Section 12A (3) of the U.G.C. Act, regulating the fees which

the affiliated colleges, operating on no-grant-in-aid basis,

are entitled to charge. The Council for Technical Education

may also consider the advisability of issuing directions

under Section 10 of the A.I.C.T.E. Act regulating the fees

that may be charged in private unaided educational

institutions imparting technical education. The Indian

Medical Council and Central government may also consider the

advisability of such regulation as a condition for grant of

permission to new medical colleges under Section 10-A and to

impose such a condition on existing colleges under Section

10-C.

(c)The several authorities mentioned in sub-paras (a) and

((1) shall decide whether a private educational institution

is entitled to charge only that fee as is required to run

the college or whether the capital cost involved in

establishing a college can also be passed on to the students

and if so, in what manner. Keeping in view the need, the

interest of general public and of the nation, a policy

decision may be taken. It would be more appropriate if the

Central Government and these several authorities (U.G.C.,

I.M.C. and A.I.C.T.E.) cordinate their efforts and evolve a

broadly uniform criteria in this behalf. Until the Central

Government, U.G.C., I.M.C. and A.I.C.T.E. issue

order/regulations in this behalf, the committee referred to

in the sub-para (a) of this para shall be operative. In

other words, the working and orders of the committee shall

be subject to the orders/regulations, issued by Central

Government, U.G.C., I.M.C. or A.I.C.T.E., as the case may

be.

(d)We must hasten to add that what we have said in this

clause is merely a reiteration of the duty nay, obligation placed up

on the Governments of Andhra Pradesh,

Maharashtra, Karnataka and Tamil Nadu by their respective

legislatures to wit, Section 7 of Andhra Pradesh Act 5 of

1983, Section 4 of Maharashtra Act 6 of 1988, Section 5 of

Karnataka Act of 1984 and Section 4 of Tamil Nadu Act 57 of

1992. Other States too may have to have similar provisions,

carrying statutory force.

(7)Any candidate who fulfils the eligibility conditions

would be entitled to apply for admission. After the free

seats in professional colleges are filled up, atleast 10

days' time will be given to the candidates (students) to opt

to be admitted against payment seats. The candidates shall

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 67 of 111

be entitled to indicate their choice for any three colleges

(if available). In such a case, he shall comply with the

deposit and cash security/Bank guarantee

687

- taking the institution charging the highest fees as the

basis within the said period of ten days. If he is admitted

in an institution, charging less fee, the difference amount

shall be refunded to him. (The cash security or Bank

guarantee shall be in favour of the competent authority, who

shall transfer the same in favour of the appropriate college

if that student is admitted).

(8)The results of the entrance examination, if any, held

should be published atleast in two leading newspapers, one

in English and the other in vernacular. The payment

candidates shall be allotted to different professional

colleges on the basis of merit-cum-choice. The allotment

shall be made by the competent authority. A professional

college shall be bound to admit the students so allotted.

The casual vacancies or unfilled vacancies, if any, shall

also be filled in the same manner. The management of a

professional college shall not be permitted to admit any

student other than the one allotted by the competent

authority whether against free seat or payment seat, as

the case may be. It is made clear that even in the matter

of reserved categories, if any, the principle of inter se

merit shall be followed. All allotments made shall be

published in two leading newspapers as aforesaid and on the

notice boards of the respective colleges and at such other

places as the comptent authority may direct, along with the

marks obtained by each candidates in the relevant entrance

test or qualifying examination, as the case may be. No

professional college shall be entitled to ask for any other

or further payment or amount, under whatever name it may be

called, from any student allotted to it whether against

the free seat or payment seat.

(9)After making the allotments, the competent authority

shall also prepare and publish a waiting list of the

candidates along with the marks obtained by them in the

relevant test/examination. The said list shall be followed

for filling up any casual vacancies or 'drop-out'-vacancies

arising after the admissions are finalised. These vacancies

shall be filled until such date as may be prescribed by the

competent authority. Any vacancies still remaining after

such date can be filled by the Management.

It is made clear that it shall be open to the appropriate

authority and the competent authority to issue such further

instructions or directions, as they may think appropriate

not inconsistent with this scheme, by way of elaboration and

elucidation.

The scheme shall apply to and govern the admissions to

professional

688

colleges commencing from the academic year 1993-94.

We are aware that until the commencement of the current

academic year, the Andhra Pradesh was following a somewhat

different pattern in the matter of filling the seats in

private unaided engineering colleges. Though all the

available seats were being filled by the allottees of the

Convenor (State) and the managements were not allowed to

admit any student on their own a uniform fee was collected

from all the students. The concepts of 'free seats' and

'payment seats' were therefore not relevant in such a

situation all were payment seats only. We cannot say that

such a system is constitutionally not permissible. But our

idea in devising this scheme has been to provide more

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 68 of 111

opportunities to meritorious students, who may not be able

to pay the enhanced fee prescribed by the government for

such colleges. The system devised by us would mean

correspondingly more financial burden on payment students

whereas in the aforesaid system (in vogue in Andhra Pradesh)

the financial burden is equally distributed among, all the

students. The theoretical foundation for our method is,

that a candidate/student who is stealing a march over his

compatriot on account of his economic power should be made

not only to pay for himself but also to pay for another

meritorious student. This is the social justification

behind the fifty per cent rule prescribed in clause (2) of

this scheme. In the interest of uniformity and in the fight

of the above social theory, we direct the State of Andhra

Pradesh to adhere to the system derived by us.

71.In view of the above, we do not think it necessary to

go into or answer Question No. 3. In our opinion, the said

question requires debate in a greater depth and any

expression of opinion thereon at this juncture is not really

warranted.

PART IV

VALIDITY OF SECTION 3-A OF THE ANDHRA PRADESH

EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSION

AND PROHIBTION OF CAPITATION FEE) ACT 1983.

72.Section 3-A of the aforesaid Act, as introduced by the

Andhra Pradesh Amendment Act 12 of 1992, read as follows:

"Notwithstanding anything contained in Section

3, but subject to such rules as may be made in

this behalf and the

689

Andhra Pradesh Educational Institutions

(Regulation of admission) Order, 1974, it

shall be lawful for the management of any

unaided private engineering college, medical

college, dental college and such other class

of unaided educational institutions as may be

notified by the Government in this behalf to

admit students into such colleges or

educational institutions to the extent of one

half of the total number of seats from among

those who have qualified in the common

entrance test or in the qualifying examina-

tion, as the case may be, referred to in sub-

section (1) of Section 3 irrespective of the

ranking assigned to them in such test or

examination and nothing contained in Section 5

shall apply to such admissions."

A Full Bench of the Andhra Pradesh High Court has struck it

down as being violative of Article 14 of the Constitution

and also on the ground of repugnancy with Section 12-A of

the University Grants Commission Act, 1956 Kranti Sangram

Parishad v. Sri N.J. Reddy, (1992) 3 A.L.T. 99. The

correctness of the said decision is assailed before us.

73.This Section is in truth, in the nature of an exception

to the other provisions of the Act. It says that

notwithstanding anything contained in Section 3, but subject

to the rules as may be framed by the Government in this

behalf, the private educational institutions of the nature

mentioned therein, shall be entitled to admit students to

the extend of half the number of seats from among those who

have qualified in the common entrace test or the qualifying

examination, as the case may be. This statement is

accompanied by two significant features viz., (1) admission

of such students could be irrespective of the ranking

assigned to them to the common entrance test or other

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 69 of 111

qualifying examination, as the case may be; and (2) it is

made clear that nothing contained in Section 5 shall apply

to such admissions. The Section is, thus, an exception to

Section 3, 5. Section 3, it may be remembered, provides that

admissions have to be made, to all categories, strictly in

accordance with merit. The section, read as a whole, leads

to the following consequences:

(a)It is open to the private educational institutions to

charge as much amount as they can for admission. It will be

a matter of bargain between the institution and the student

seeking admission.

690

(b)The admission can be made without reference to inter-se

merit of paying candidates. The institution will be

entitled to pick and choose the candidates among the

applicants on such considerations as it may deem fit.

(c)Section 5, which prohibtis collection of capitation fee

by an education institutions, is expressly made inapplicable

to such admissions. This is not without a purpose. The

purpose is to permit the institutions to charge as much as

they can in addition to the collection of the prescribed

tuition fee.

74.We have held hereinbefore that the educational activity

of the private educational institutions is supplemental to

the main effort by the State and that what applies to the

main activity applies equally to the supplemental activity

as well. If Article 14 of the Constitution applies as it

does, without a doubt to the State institutions and

compels them to admit students on the basis of merit and

merit alone (subject, of course, to any permissible

reservations wherein too, merit inter-se has to be

followed) the applicability of Article 14 cannot be excluded

from the supplemental effort/activity. The State

Legislature had, therefore, no power to say that a private

educational institution will be entitled to admit students

of its choice, irrespective of merit or that it is entitled

to charge as much as it can, which means a free hand for

exploitation and more particularly, commercialisation of

education, which is impermissible in law. No such immunity

from the constitutional obligation can be claimed or

conferred by the State Legislature. On this ground alone,

the Section is liable to fail.

In the circumstances, it is not necessary for us to go into

the question whether the section is bad on account of

repugnancy with Section 12-A of the University Grants

Commission Act. It is enough to say that the said section

falls foul of Article 14 for the reasons given above the

must accordingly fail. We agree that the offending portions

of Section 3-A cannot be severed from the main body of the

section and, therefore, the whole section is liable to fall

to the ground.

It is not brought to our notice that the enactments of other

three States viz., Karnataka, Tamil Nadu and Maharashtra

contain similar offending provisions. Indeed, they do not.

None of their provisions says that, the Management of a

private educational institution can admit students, against

"payment seats", "irrespective of the ranking assigned to

them in

691

such test (entrance test) or examination." Much less do they

say that to such admissions, the provision prohibiting

capitation fee shall not apply. True, they do not say

expressly that such admissions shall be made on the basis of

merit, but that, according to us, is implicit. If the

notifications or order issued thereunder provide otherwise,

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 70 of 111

either expressly or by implication, they would be equally

bad for the reason given above.

75.Once Section 3-A is struck down, the question arises as

to what should happen to the students who were admitted by

the Private Engineering Colleges in this State, at their own

discretion, to the extent of the 50% of the available seats.

The High Court has invalidated these admissions but they are

continuing now by virtue of the orders of stay granted by

this Court. A fact which must be kept in mind in this

behalf is this: Until the previous year, the Government of

Andhra Pradesh has been permitting these private engineering

colleges to collect a higher fees from all the students

allotted to them. (We are told that the fees permitted to be

collected was Rs. 10,000 per annum for the previous year).

Of course, all the available seats were filled up by

students allotted by the convenor of the common entrance

exam; no one could be admitted by these colleges on their

own. Now, for the current year, these colleges admitted 50%

of the students in their own discretion which necessarily

means collection of capitation andior arbitrary admissions

for their own private reasons. At the same time, these

colleges have been collecting the same fees (Rs. 10,000 per

annum) both from the students allottee by the convenor as

also from those admitted by themselves. Thus they have

reaped a double advantage.

76.It is submitted by Shri Shanti Bhushan the learned

counsel for these students that they were innocent parties

and had obtained admission in a bona fide belief that their

admissions were being made properly. They have been

studying since them and in a few months their academic year

will come to a close. May be, the managements were guilty

of irregularity, he says, but so far as the students are

concerned they have done nothing contrary to law to deserve

the punishment awarded by the Full Bench of the High Court.

77.It is true. as pointed out by the High Court that these

admissions were made in a hurry but the fact remains that

they have been continuing in the said course under the

orders of this Court over the last about four months. As

stated hereinbefore, the present situation has been brought

692

about by a combination of circumstances, namely the

enactment of Section 3-A, the allotment of students to the

extent of 50% only by the convenor and the failure of the

Government to immediately rectify the misunderstanding of

the convenor. In the circumstances we are not satisfied

that these students should be sent out at this stage. May

be, the result is rather unfortunate but we have to weigh

all the relevnt circumstances. At the same time we are of

the opinion that the managements of these private

engineering colleges should not be allowed to walk away with

the double advantage referred to above. Since they have

admitted students of their own choice to the extent of 50%

and also because it is not possible to investigate or verify

for what consideration those admissions were made, we think

it appropriate to direct that these colleges should charge

only that fee from the 50% 'free students' as is charged for

similar courses in the concerned university engineering

colleges. For the remaining years of their course these

colleges shall collect only the said fee, which for the sake

of convenience may be called the 'government fee'. The

balance of the amount which they have already collected

during this year shall be remitted into the Government

account within six weeks from today, in default whereof the

recognition and affiliation given to these colleges shall

stand withdrawn. In other words whichever college fails to

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 71 of 111

comply with the above direction it will stand disaffiliated

on the expiry of six weeks from today and the recognition

granted to it, if any, by any appropriate authority shall

also stand withdrawn.

78.So far as Writ Petition 855 of 1992 is concerned, it

complains of charging of double the tuition fee is case of

students coming from outside the Maharashtra. The matter

stand concluded against the petitoners by a decision of a

Constitution Bench of this Court in D.P. Joshi v. State of

Madhya Pradesh, [1955] 1 SCR 1215. This Writ Petition is

accordingly dismissed.

79.Coming to Civil Appeal No. 3573 of 1992 filed by Mahatma

Gandhi Mission, we are inclined, in all the facts and

circumstances of the case to stay the operation of the

impugned order which is only an interlocutory order

effective till the disposal of the main Writ Petition. Writ

Petition may be disposed of according to law and in the

light to this Judgment.

693

PART V

80. For the above reasons the Writ Petitions and Civil

Appeals except (W.P. (C) 855/92, C.A. 3573/92 and the Civil

Appeals arising from S.L.Ps. 13913 and 13940/92) are

disposed of in the following terms:

1. The citizens of this country have a fundamental right

to education. The said right flows from Article 21. This

right is, however, not an absolute right. Its content and

para meters have to be determined in the light of Articles

45 and 41. In other words every child/citizen of this

country has a right to free education until he completes the

age of fourteen years. Thereafter his right to education is

subject to the limits of economic capacity and development

of the State.

2. The obligations created by Articles, 41, 45 and 46 of

the Constitution can be discharged by the State either by

establishing institutions of its own or by aiding,

recognising and/or granting affiliation to private educa-

tional institutions. Where aid is not granted to private

educational institutions and merely recognition or

affiliation is granted it may not be insisted that the

private education institution shall charge only that fee as

is charged for similar courses in governmental institutions.

The private educational institutions have to and are

entitled to charge a higher fee, not exceeding the ceiling

fixed in that behalf. The admission of students and the

charging of fee in these private educational institutions

shall be governed by the scheme evolved herein set out in

Part III of this Judgment.

3. A citizen of this country may have a right to establish

an educational institution but no citizen, perosn or

institution has a right much less a fundamental right, to

affiliation or recognition, or to grant-in-aid from the

State. The recognition and/or affiliation shall be given by

the State subject only to the conditions set out in, and

only accordance with the scheme contained in Part III of

this Judgment. No Government/University or authority shall

be competent to grant recognition or affiliation except in

accordance with the said scheme. The said scheme shall

constitute a condition of such recognition or affiliation,

as the case may be, in addition to such other conditions and

terms which such Government, University or other authority

may choose to impose.

Those receiving aid shall however, be subject to all such

terms and

694

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 72 of 111

conditions, as the aid giving authority may impose in the

interest of general public.

4. Section 3-A of the Andhra Pradesh Educational

Institutions (Regulation of Admission And Prohibition of

Capitation Fee) Act, 1983 is violative of the equality

Clause enshrined in Article 14 and is accordingly declared

void. The declaration of the Andhra Pradesh High Court in

this behalf is affirmed.

5. Writ Petition No. 855 of 1992 is dismissed.

Civil Appeal No. 3573 of 1992 is allowed and the impugned

order is set aside. The main Writ Petition wherein the said

interim order has been passed may now be disposed of

according to law.

6. Civil Appeals arising from S.L.Ps. 13913 and 13940/92

(preferred by students who were admitted by private unaided

engineering colleges in Andhra Pradesh, without an allotment

from the convenor of the common entrance examination) are

allowed. The students so admitted for the academic year

1992-93 be allowed to continue in the said course but the

management shall comply with the directions given in para 77

hereinabove.

MOHAN, J. I have had the advantage of perusing the judgment

of my learned brother Justice B.P. Jeevan Reddy. Though, I

am in agreement with his conclusion, I would like to give my

own reasonings. Since my learned brother has set out the

facts, I will confine myself to answering the three

questions, namely:

1. Whether the Constitution of India

guarantees a fundamental right to education to

its citizens?

2. Whether there is a fundamental right to

establish an educational institution under

Article 19(1)(g)?

3. Does recognition or affiliation make the

educational institution an instrumentality?

All the these matters raise a burning issue;

as to how to put an end to the evil of

capitation fee or at least to regulate it.

As a prelude, the importance of education may

be set out.

695

The immortal Poet Valluvar whose Tirukkural

will surpass all ages and transcend all

religions said of education:

"Learning is excellence of wealth that none

destroy; To man nought else affords reality of

joy."

Therefore, the importance of education does

not require any emphasis.

The fundamental purpose of Education is the same at all

times and in all places. It is to transfigure the human

personality into a pattern of perfection through a synthetic

'process of the development of the body, the enrichment of

the mind, the sublimation of the emotions and the illumina-

tion of the spirit. Education is a preparation for a living

and for life, here and hereafter.

An old Sanskrit adage states: "That is Education which leads

to liberation" liberation from ignorance which shrouds the

mind; liberation from superstition which paralyses effort,

liberation from prejudices which bring the Vision of the

Truth.

In the context of a democratic form of government which

depends once a social and political necessity. Even several

decades ago, our leaders harped upon universal primary

education as a desideratum for national progress. It is

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 73 of 111

rather sad that in this great land of ours where knowledge

first lit its torch and where the human mind soared to the

highest pinnacle of wisdom, the percentage of illiteracy

should be appalling. Today, the frontiers of knowledge are

enlarging with incredible swiftenss. The foremost need to be

satisfied by our education is, therefore, the eradication of

illiteracy which persists in a depressing measure, Any

effort taken in this direction of be deemed to be too

much.

Victories are gained, peace is preserved, progress is

achieved, civilization is build up and history is made not

on the battle-fields where ghastly murders are committed in

the name of patriotism, not in the Council Chambers where

insipid speeches are spun out in the name of debate, not

even in factories where are manufactured novel instruments

to strangle life, but in educational institutions which are

the seed-beds of culture, where children in whose hands

quiver the destinies of the future,

696

are trained From their ranks will come out when they grow

up, statesmen and soldiers, patriots and philosophers, who

will determine the progress of the land.

The importance of education has come to be recognised in

various judicial decisions.

In Oliver Brown v. Board of Education of Topeka, U.S.

Supreme Court Reports 98 Law. Ed. U.S. 347 at page 880 it

was observed:

"Today, education is perhaps the most

important function of state and local

governments. Compulsory school attendance

laws and the great expenditures for education

both demonstrate our recognition of the

importance of education to our democratic

society. It is required in the performance of

our most basic public responsibilities, even

service in the armed forces. It is very

foundation of good citizenship. Today it is a

principal instrument in awakening the child to

cultural values, in preparing him for later

professional training, and in helping him t

o

adjust normally to his environment."

Various fundamental rights enumerated under Part III of our

Constitution can be divided into two classes.

1. Injuction restraining the State from denying certain

fundamental rights like Articles 14 and 21.

2. A positive conferment of such fundamental rights under

Articles 19, 25 and 26 etc.

In this connection, the following passage from Addl. Dist.

Magistrate v. S.S. Shuukla, [1976] Supp. SCR 172 @ 229-230

may be quoted:

"Part III of our Constitution confers

fundamental rights in positive as well as in

negative language. Article 15(1), 16(1) 9

22(2), 22(5), 25(1), 26, 29(1), 30 and 32(1)

can be described to be Articles in positive

language. Articles 14, 15(2), 16(2), 20, 21,

22(1), 22(4), 27, 28(1), 29(2), 31(1) and (2)

are in negative language. It is apparent that

most categories of fundamental rights are in

positive as well as

697

in negative language. A fundamental right

couched in negative language accentuates by

reason thereof the importance of that right.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 74 of 111

The negative language is worded to emphasise

the immunity from State action as a

fundamental right. (See The State of Bihar v.

Maharajadhuraja Sir Kameshwar Singh of

Darbhanga and Ors.) These fundamental rights

conferred by our Constitution have taken

different forms. Some of these fundamental

rights are said to have the texture of Basic

Human Rights (See A.K Gopalan's case (supra)

at pp. 96-97, 248-293 and Bank nationalisation

case (Supra) at pp. 568-71, 576-78)."

Article 21 reads as follows:

"Perfection of life and personal liberty:- No

person shall be deprived of his life or

personal liberty except according to procedure

established by law."

It would be clear that it acts as a shield against

deprivation of fife or personal liberty.

A question may be asked as to why it did not positively

confer a fundamental right to life or personal liberty like

Article 19. The reason is, great concepts like liberty and

life were purposefully left to gather meaning from

experience. They relate to the whole domain of social and

economic fact. The drafters of. this Constitution knew too

well that only a stagnant society remains uncharged.

Unlike such rights as required to be enumerated it has long

been recognised that the individual shall have full

protection in person. It is a principle as old as law.

However, it has been found necessary from time to time to

define a new the exact nature and the extent of such

protection. Political social and economic changes entail

the recognition of new rights and the law in its eternal

youth grows to meet the demands of society. The right to

life and liberty inhere in every man. There is no need to

provide for the same in a positive manner.

While dealing with the scope of Article 21 it was observed

in Maneka Gandhi v. Union of India, AIR 1978 597 @ 620-21

that:

"It is obvious that Art. 21, though couched in

negative

698

language, confers the fundamental right to

life and personal liberty. So far as the

right personal liberty is concerned, it is

ensured by providing that no one shall be

deprived of personal liberty except according

to procedure prescribed by law. The first

question that arises for consideration on the

language of Art. 21 is: what is the meaning

and content of the words 'personal liberty' as

used in this Article? This question

incidentally came up for discussion in some of

the judgments in A.K Gopalan v. State of

Madras, [1950] SCR 88 : (AIR 1950 SC 27) and

the observations made by Patanjali Sastri, J.,

Mukherjee, J. and S.R. Das, J. seemed to place

a narrow interpretation on the words 'personal

liberty' so as to confine the protection of

Art. 21 to freedom of the person against

unlawful detention. But there was no definite

pronouncement made on this point since the

question before the Court was no so much the

interpretation of the words 'personal liberty,

as the inter-relation between Arts. 19 and 21.

It was in Kharak Singh v. State of UP., [1964]

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 75 of 111

1 SCR 332; (AIR 1963 SC 1295) that the

question as to the proper scope and meaning of

the expression 'personal liberty' came up

pointedly for consideration for the first time

before this Court. The majority of the Judges

took the view 'that 'personal liberty' is used

in the article as a compendious term to

include within itself all the varieties of

rights which go to make up the 'personal

liberties' of man other than those dealt with

in the several clauses of Art. 19(1). In

other words, while Art. 19(1) deals with

particular species of attributes of that

freedom, 'personal libertyin Art. 21 takes in

and comprises the residue". The minority

Judges, however, disagreed with this view

taken by the majority and explained their

position in the following words:

"No doubt the expression 'personal liberty' is

a comprehensive one and the right to move

freely is an attribute of personal liberty.

It is said that the freedom to move freely is

carved out of personal liberty and therefore

the expression 'personal liberty' in Art. 21

excludes that attribute. In our view, this is

not a correct approach. Both

699

are independent fundamental rights, though

there is overlapping. There is no question of

one being carved out of another. The

fundamental right of fife and personal liberty

has many attributes and some of them are found

in Art. 19. If a person's fundamental right

under Art. 21 is infringed, the State can rely

upon a law to sustain the action, but that

cannot be a complete answer unless the said

law satisfies the test laid down in Art. 19(2)

so far as the attributes covered by Art. 19(2)

so far as the attributes covered by Art. 19(1)

are concerned."

There can be no doubt that in view of the

decision of this Court in R. C. Cooper v.

Union of India, [1970] 3 SCR 530: (AIR 1970 SC

564) the minority view must be regarded as

correct and the majority view must be held to

have been overruled."(Emphasis supplied)

Therefore, it is not correct to state that because the

article is couched in a negative language, positive rights

to life and liberty are not conferred as argued by Mr.

Tarkunde, learned counsel.

This Court in Choarak Singh v. State of U.P., 119641 1 SCR

332, (345, 347 and 349) interpreted the word "liberty" on

the lines of the meaning accorded to liberty in the 5th and

14th amendments to the U.S. Constitution by in Munshi v.

Illuonis, [1877] 94 U.S. 113. Accordingly it was held:

" 'Personal Liberty' in Art. 21 takes in all the rights of

man."

The 4th Amendment of U.S. Constitution guaranteed "the right

to be secure on their persons, houses......."

This right was read into Article 21 and it was held that

"there cannot be an unauthorised intrusion into a person's

home".

In Kesavananda Bharati v. Kerala, [1973] Supp. SCR page 1

Mathew, J. stated therein that the fundamental rights

themselves have no fixed content, most of them are empty

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 76 of 111

vessels into which each generation must pour its content in

the light of its experience. It is relevant in this context

to remember that in building up a just social order it is

sometimes imperative that the fundamental rights should be

subordinated to directive principles.

700

In Puthumma's case, [1978] 2 SCR 537, it has been stated:

"The attempt of the court should be to expand the reach and

ambit of the fundamental rights rather than accentuate their

meaning and content by process of judicial construction...

Personal liberty in Article 21 is of the widest amplitude';,

In this connection, it is worthwhile to recall what was said

of the American Constitution in Mussorie v. Holland 252 U.S.

416 at 433:

"When we are dealing with words that also are

constituent act, like the constitution of the

United States, we must realize that they have

called into fife a being the development of

which could not have been foreseen completely

by the most gifted of its begetters."

In State of M.P. v. Pramod Bhyaratiya and

others, (1992) 2 Scale 791 it is stated:

Because clause (d) of Article 39 spoke of

"equal pay for equal work" for both men and

women it did not cease to be part of article

14. To say that the rule having been stated

as a directive principle of State Policy, and

no enforceable in court of law is to indulge

in sophistry. Parts IV & III of Constitution

are not supposed to be exclusion any of

each other. They are complementary to each

other.The rule is as much a part of Article

14 as it is of clause

(1) of Article 16."

This Court has held that several unenumerated rights fall

within Article 21 since personal liberty is of widest

amplitude.

The following rights are held to be covered

under Article 21:

1. The right to go abroad

Satwant Singh v. A.P. O. New Delhi [1967] 3

SCR page 525.

2. The right to privacy

Govinda v. State of U.P., [1975] 3 SCR 946

701

In this case reliance was placed on the

American decision in Griswols v. Connecticut,

381 US 479 at 510

3. The Right against solitary confinement

Sunil Batra v. Delhi Administration, [1978] 4

SCC 494 at 545

4. The Right against Bar fetters

Charles Sobraj v. Sup(. Central fail, [1979]

1 SCR Ill

5. The Right to legal aid

Hoskot v. State of Maharashtra, [1979] 1 SCR

192

6. The Right to speedy trial

Hussainuia Katoon v. State of Bihar, [1979] 3

SCR 169

7. The Right against Handcuffing

Prem Shankar v. Delhi Administration [1080] 3

SCR 855

8. The Right against delayed execution

TV. Vatheeswaran v. State of Tamil Nadu, AIR

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 77 of 111

1983 SC 361

9. The Right against custodial violence

Sheela Bhasre v. State of Maharashtra, [1983]

2 SCC 96

10. The Right against public hanging

A.G. of India v. Lachmadevi AIR 1986 SC 467

11. Doctor's Assistance

Parantananda Katra v. UOI, [1989] 4 SCC 286

12. Shelter

Santistar Builder v. N.KI. Totame, [1990] 1

SCC 520

If really Article 21, which is the heart of fudamental

rights has received expanded meaning from time to time there

is no justification as to why it cannot be interpreted in

the light of Article 45 wherein the State is obligated to

provide education up to 14 years of age, within the

prescribed time limit.

So much for personal liberty.

Now coming to life: this Court interpreted in

Bandhua Mukti Morcha

702

v. Union of India, [1984] 3 SCC 161 @ 183-

84:

"It is the fundamental right of everyone in

this country, assured under the interpretaiton

given to Article 21 by this Court in Francis

Mullin's case, to live with human dignity,

free from exploitation. This right to live

with human dignity, free from exploitation.

This right to live with human dignity

enshrined in Article 21 derives its life

breath from the directive Principles of State

Policy and particularly clauses (e) and (f) of

Article 39 and Article 41 and 42 and at the

least, therefore, it must include protection

of the health and strength of workers, men and

women, and of the tender age of children

against abuse, opportunities and facilities

for children to develop in a healthy manner

and in conditions of freedom and dignity,

educational facilities, just and humane

conditions of work and maternity relief.

These are the minimum requirements which must

exist in order to enable a person to five with

human dignity and no State neither the

Central Government nor any State Government

has the right to take any action which will

deprive a person of the enjoyment of these

basic essentials. Since the Directive

Principles of State Policy contained in

clauses (e) and (f) of Article 39, Articles 41

and 42 are not enforceable in a court of law,

it may not be possible to compel the State

through the judicial process to make provision

by statutory enactment or executive fiat for

ensuring these basic essentials which go to

make up a life of human dignity but where

legislation is already enacted by the State

providing these basic requirements to the

workmen and thus investing their right to live

with basic human dignity, with concrete

reality and content, the State can certainly

be obligated to ensure observance of such

legislation for inaction on the part of the

State in securing implementation of such

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 78 of 111

legislation would amount to denial of the

right to live with human dignity enshrined in

Article 21, more so in the context of Article

256 which provides that the executive power of

every State shall be so exercised as to ensure

compliance with the laws made by Parliament

and any existing laws which apply in

703

that State."

This, was elaborated in Olga Tellis v. Bombay

Municipal Corporation, 119851 3 SCC 545 @ 571-

573:

"As we hive stated while summing up the

petitioners case, the main plank of their

argument is that the right to fife which is

guaranteed by Article 21 includes the right to

livelihood and since, they will be deprived of

their livelihood if they are evicted from

their slum and pavement dwellings their

eviction is tantamount to deprivation of their

life and is hence unconstitutional. For

purposes of argument, we will assume the

factual correctness of the premise that if the

petitioners are evicted from their dwellings,

they will be deprived of their livelihood

.

Upon that assumption, the question which we

have to consider is whether the right to fife

includes the right to livelihood. We see only

one answer to that question, namely, that it

does. The sweep of the right to life

conferred by Article 21 is wide and far

reaching. It does not mean merely that life

cannot be extinguished or taken away as, for

example, by the imposition and execution of

the death sentence, except according to

procedure established by law. That is but one

aspect of the right to life. An equally

important facet of that right is the right to

livelihood because, no person can live without

the means of livingn that is, the means of

livelihood. If the right to livelihood is not

treated as a part of the constitutional right

life, the easiest way of depriving a person of

his right to life would be to deprive him of

his means of livelihood to the point of

abrogation. Such deprivation would not only

denude the life of its effective content and

meaningfulness but it would make life impos-

sible to live. And yet such deprivation would

not have to be in accordance with the

procedure established by law, if the right to

livelihood is not regarded as a part of the

right to live. That, which alone makes it

possible to live, leave aside what makes life

livable, must be deemed to be an integral

component of the right to life. Deprive a

person of his right to livelihood and you

shall have deprived him

704

of his life. Indeed, that explains the

massive migration of the rural population to

big cities. They migrate because they have no

means of livelihood in the villages. The

motive force which peoples their desertion of

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 79 of 111

their hearts and homes in the village is the

struggle for survival that is, the struggle

for fife. So unimpeachable is the evidence of

the nexus between fife and the means of

livelihood. They have to eat to live: Only a

handful can efford the luxury of living to

eat. That they can do, namely, eat, only if

they have the means of livelihood. That is

the context in which it was said by Douglas,

J. in Baksey that the right to work is the

most precious liberty that man possesses. It

is the most precious liberty because, it

sustains and enables a man to live and the

right to life is a precious freedom. 'Life',

as observed by Field, J. in Munn v. Illinois,

means something more than mere animal

existence and the inhibition against the

deprivation of fife extends to all those

limits and faculties by which life is enjoyed.

This observation was quoted with approval by

this Court in Singh v. State of UP.

Article 39(a) of the Constitution, which is a

Directive Principle of State Policy, provides

that the State shall in particular, direct its

policy towards securing that the citizens, men

and women equally, have the right to an

adequate means of livelihood. Article 41,

which is another Directive Principle,

provides, inter alia, that the State shalt

within the limits of its economic capacity and

development make effective provision for

securing the right to work in cases of

unemployment and of undeserved want. Article

37 provides that the Directive Principles,

though not enforceable by any court, are

nevertheless fundamental in the governance of

the, country. The principles contained in

Articles 39(a) and 41 must be regarded as

equally fundamental in the understanding and

interpretation of the meaning and content of

fundamental rights. If there is an obligation

upon the State to secure to the citizens an

adequate means of livelihood and the right to

work it would be sheer pedantry to exclude the

right to livelihood from the content of the

right to life. The State may

705

not by affirmative action, be compellable to

provide adequate means of livelihood or work

to the citizens. But, any person, who is

deprived of his right to livelihood except

according to just and fair procedure

established by law, can challenge the

deprivation as offending the right to life

conferred by Article 21."(Emphasis supplied)

If thus, personal liberty and life have come to be given

expanded meaning, the question to be addressed is, whether

life which means to live with dignity, will take within it

education as well? To put it more emphatically, whether

right to education flows from right to life? Before we go

to Mohini Jain's case [1992] 3 SCC 666 it may be necessary

to refer to State of Andhra Pradesh v. Lavu Narendranath,

[1971] 1 SCC 607. At page 614 it is stated:

"Lastly it was urged that such test affected

the personal liberty of the candidates secured

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 80 of 111

under Article 21 of the Constitution. We fail

to see how refusal of an application to enter

a medical college can be said to affect one's

personal liberty guaranteed under that

article. Everybody, subject to the

eligibility prescribed by the University, was

at liberty to apply for admission to the

medical college. The number of seats being

limited compared to the number of applicants

every candidate could not expect to be

admitted. Once it is held that the test is

not invalid the deprivation of personal

liberty, if any, in the matter of admission to

a medical college was according to procedure

established by law. Our attention was drawn t

o

the case of Spottwood v. Sharpe, in which it

was held that due process clause of the Fifty

Amendment of the American Constitution

prohibited racial segregation in the District

of Columbia. Incidentally the Court made a

remark (at p. 887):

"Although the Court has not assumed to define

"liberty". with any great precision, that term

in not confined to mere freedom from bodily

restraint. Liberty under law extends to the

full range of conduct which the individual is

free to pursue, and it cannot be restricted

except for a proper

706

governmental objective. Segregation in public

education is not reasonably related to any

proper governmental objective, and thus it

imposes on Negro children of the District of

Columbia a burden that constitutes an

arbitrary deprivation of their liberty in

violation of the Due Process Clause.

The problem before is altogether different.

In this case everybody subject to the minimum

qualification prescribed was at liberty to

apply for admission. The Government objective

in selecting a number of them was certainly

not, improper in the circumstances of the

case,."

It requires to be carefully noted that deprivate of personal

liberty if done by a valid procedure established by law, the

fundamental right under Article 21 was not, in any manner,

affected. That is the crux of this ruling.

Now, coming to Mohini Jain's case (supra) it

was observed at pages 679-80:

"Right to life" is the compendious expression

for all those rights which the courts must

enforce because they are basic to the

dignified enjoyment of life. It extends to

the full range of conduct which the individual

is free to pursue. The right to education

flows directly from right to life. The right

to life under Article 21 and the dignity of an

individual cannot be assured unless it is

accompanied by the right to education. The

State Government is under an obligation to

make endeavor to provide educational

facilities at all levels to its citizens."

Education is enlightenment. It is the one that lends

dignity to a man as was rightly observed by Gajendragarkear,

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 81 of 111

J. (as he then was) in University of Delhi v. Ram Nath,

[1964] 2 SCR 703 at 710:

"Education seeks to build up the personality

of the pupil by assisting his physical,

intellectual, moral and emotional

development."

If life is so interpreted as to bring within it right to

education, it has

707

to be interpreated in the light of directive principles.

This Court has uniformly taken the view that harmonious

interpretation of the fundamental rights vis-a-vis the

directive principles must be adopted. We will now refer to

some of the important cases.

In State of Kerala & Anr. v. N.M. 7homas &

Anr., [1976] 1 SCR 906, at 914 it was held:

"There is complete unanimity of judicial

opinion of this Court that the Directive

Principles and the Fundamental Rights should

be construed in harmony with each other and

every attempt should be made by the Court to

resolve apparent inconsistency.

The Directive Principles contained in Part IV

constitute the stairs to climb the High

edifice of a socialistic State and the

Fundamental Rights are the means through which

one can reach the top of the edifice.

The Directive Principles form the fundamental

feature and the social conscience of the

Constitution which enjoins upon the State to

implement these Directive Principles. The

Directives, thus provide the policy, the

guidelines and the end of socioeconomic

freedom and Arts. 14 and 16 are the means to

implement the policy to achieve the ends

sought to be promoted by the Directive

Principles. So far as the Courts are

concerned where there is no apparent

inconsistency between the Directive Principles

contained in Part IV and the Fundamental

Rights mentioned in Part III, there is no

difficulty in putting a harmonious

construction which advances the object of the

Constitution.'

In Pathumma and others v. State of Kerala and

others, [1978] 2 SCR 537 at 545-46 it was

observed:

"In fact in the case of His Holiness

Kesavananda Bharati Sripadagalavaru v. State

of Kerala all the Judges constituting the

Bench have with one voice given the Directive

Priciples contained in the Constitution a

place

708

of honour. Hegde and Mukhejea, JJ. as they

they were have said that the fundamental

rights and the Directive Principles constitute

the "conscience' of our Constitution. The

purpose, of the Directive Principles is to fix

certain social and economic goals for

immediate attainment by bringing about a non-

violent social revolution. Chandrachud, J.

observed that our Constitution aims at

bringing about a synthesis between

'Fundamental Rights' and the 'Directive

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 82 of 111

Principles of State Policy' by giving to the

former a place of pride and to the latter a

place of permanence.

In a latter case State of Kerala & Anr. v.

N.M. Thomas & Ors., [1976] 2 SCC 310 one of us

(Fazal Ali, J.) after analysing the Judgment

delibered by all the Judges in the Kesvananda

Bharati's case (supra) on the importance of

the Directive Principles observed as follows:

"In view of the principles adumbrated by this

Court it is clear that the Directive

Principles form the fundamental feature and

the social conscience of the Constitution and

the Constitution enjoins upon the State to

implement these directive principles. The

directives thus provide the policy, the

guidelines and the end of socioeconomic

freedom of Articles 14 and 16 are the means to

implement the policy to achieve the ends

sought to be promoted by the directive

principles. So far as the courts are con-

cerned where there is no apparent

inconsistency between the directive principles

contained in Part 111, which in fact

supplement each other, there is no difficulty

in putting a harmonious construction, which

advances the object of the Constitution. Once

this basic fact is kept in mind, the

interpretation of Articles 14 and 16 and their

scope and ambit become as clear as day'.

In the case of The State of Bombay v. R.M.D.

Chamarbaugwala this Court while stressing the

importance of directive principles contained

in the Constituion observed as follows:

709

The avowed purpose of our constitution is to

create a welfare State. The directive

principles of State Policy set forth in Part

IV of our Constitution enjoin upon the State

the duty to strive to promote the welfare of

the people by and protecting, as effectively

as it may, a social order in which justice,

social economic and political shall inform all

the institutions of the national life.'

In the case of Fatehchand Himmatlal & Ors. v.

State of Maharashtra etc. (supra) the

Constitution Bench of this Court observed as

follows:

"Incorporation of Directive Principles of

State Policy casting the high duty upon the

State to strive to promote, the welfare of the

people by securing and protecting as

effectively as it may, a social order in which

justice social economic and political

shall inform all the institutions of the

national life, is not idle point but command

to action. We can never forget, except at our

peril that the Constitution obligates the

State to ensure an adequate means of

livelihood to its citizens and to see that the

health and strength of workers, men and women,

are not abused, that exploitation, moral and

material, shall be extradited. In short,

State action defending the weaker sections

from social injustice and all forms of

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 83 of 111

exploitation and raising the standard of

living of the people, necessarily imply that

economic activities, attired as trade or

business or commerce, can be de-recognised as

trade or business."

In Delhi Development Horticulture Employees'

Union v. Delhi Administration, Delhi and

others, [1992] 4 SCC 99 at 110 it was

observed:

"There is no doubt that broadly interpreted

and as a necessary logical corollary, right to

life would include the right to livelihood

and, therefore, right to work. It is for this

reason that this Court in Olga Tellis v.

Bombay Municipal Corporation while considering

the consequences of eviction of the pavement

dwellers had pointed out that in that case the

eviction not merely resulted in deprivation of

shelter but also deprivation of livelihood

710

inasmuch as the pavement dwellers were

employed in the vicinity of their dwellings.

The Court had, therefore, emphasised that the

problem of eviction of the pavement dwellers

bad to be viewed also in that context. This

was, however, in the context of Article 21

which seeks to protect persons at

the deprivation of their life except according

to procedure established by law. This Country

has so far not found it feasible to

incorporate the right to livelihood as a

fundamental right in the Constitution. This

is because the country has so far not attained

the capacity to guarantee it, and no because

it considers it any the less fundamental to

life. Advisedly, Article 41 of which enjoins

upon the State to make effective provision for

securing the same "within the limits of its

economic capacity and development". Thus even

while giving the direction to the State to

ensure the right to work, the Constitution

makers though it prudent not to do so without

qualifying it."

Such a conclusion may not be open to

criticism. So interpreted it advances social

justice.

In Vol. VII at pages 909 and 910 of the

Constitutent Debates (1948-49) it is stated:

"The Honourable Shri K. Santhanam : Sir, you

will remeber that throughout Europe, after the

First World' War, all that the minorities

wanted was the right to have their own

schools, and to conserve their own cultures

which the Fascist and the Nazis refused them.

In fact, they did not want even the State

schools. They did not want State aid, or

State assistance. They simply wanted that

they should be allowed to pursue their own

customs and to follow their own cultures and

to establish and conduct their own schools.

Therefore I do not think it is right on the

part of any minority to depreciate the rights

given in article 23(1).

Sir, in clause (2) of article 23 they are

protected against discrimination. It is just

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 84 of 111

possible that there may be many provinces

based on language and therefore the Govern-

711

ment, the ministry and the legislature will be

composed dominantly by members of the majority

language. This right of non-discrimination

will then become fundamental and valuable.

And then in clause (3) of this article, it is

provided that when the State gives aid to

education, it shall not discriminate against

any educational institution, on the ground

that it is under the management of a minority.

Whether based on community or on language, and

this will be particularly applicable to the

linguistic minorities. In every province,

there are islands of these linguistic

minorities. For instance, in my own province

of Tamil Nadu there are islands, in almost

every district, of villages where a large

number of Telugu-speaking people reside. In

this connection we have to hold the balance

even between two different trends. First of

all, we have to give to large linguistic

minorities their right to be educated

especially in the primary stages in their

own language. At the same time we should not

interfere with the historical process of

assimilation. We ought not to think that for

hundred and thousands of years to come these

linguistic minorities will perpetuate

themselves as they are. The historical

processes should be allowed free play. These

minorities should be helped to become

assimilated with the people of the locality.

They should gradually absorb the language of

the locality and become merged with the people

there. Otherwise they will be aliens, as it

were, in those provinces. Therefore, we

should not have rigid provisions by which

every child is automatically protected in what

may be ,called his mother-tongue. On the

other hand, this process should not be sudden,

it should not be forced. Wherever there are

large numbers of children, they should be

given education primary education in their

mother-tongue. At the same time, they should

be encouraged and assisted to go to the

ordinary schools of the provinces and to

imbibe the local tongue and get assimilated

with the people. If feel this clause does

provide for these contingencies in the most

practicable fashion.

712

Sir, Mr. Lari wanted an amendment which seeks

to provide that every child, rather that every

section of the citizens, shall be entitled to

have primary education imparted to its

children through the medium of the language of

that section. I suppose what he means is that

wherever primary education is imparted at the

expense of the State, such provisions should

be made. But this, I think, would give the

minority or section of people speaking a

language the complete and absolute right to

have primary education which the people of

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 85 of 111

this country do not have today. In the

directives we have provided that in fifteen

years' time there should be universal primary

education. But no one knows whether the

financial and other conditions in the country

would permit of universal primary education to

be established even then. Today no one in

India can ask for primary education as a right

as only ten per cent of the population get

primary education. Therefore, it is not

possible to accept Mr. Lari's amendment,

because that would lead to all kinds of

difficulties. If it were passed, then anyone

can go to the Supreme Court and say that his

child must get education in a particular

language. That is not practicable, and I do

not think even his intention is at all that.

At the same time, I think, what he has pleaded

for must be kept in mind as a general policy.

It should be direction of the Central and the

Provincial Governments to see that wherever

there are congregations of boys and girls

having a distinct mother tongue, schools

should be provided in that language. I hope,

that will be the policy adopted all over the

country, especially as, if there is going to

be new linguistic revisions of the boundaries

,

all the border areas will be full of this

problem. I hope the respondent of the

Linguistic Provinces Commission will contain

some wise provisions to be adopted in this

behalf. There should be no difficulty or

hardship whatsoever in provinces when they are

rearranged on a linguistic basis. For

instance, if a Telugu goes to one area or the

other, he should not have any hardship. As I

said, this is a most difficult and com-

713

plicated problem and it cannot be dealt with

in detail in the fundamental rights. This

article 23 provides as much security as can be

done in the Constitution. Other securities

will have to be provided for both by

Parliamentary and provincial,legislation, and

I hope it will be done in due course.'

It is true the framers of the Constitution took that view.

But the position as on today is very different. The reason

is Article 45 States as under:

"Provision for free and compulsory education

for children. The State shall endeavor to

provide, within a period of ten years from the

commencement of this Constitution, for free

and compulsory education for all children

until they complete the age of fourteen

years."

14 years, spoken to under the Article, had long ago come to

an end. We are in the 43rd year of Independence. Yet, if

Article 45 were to r a pious wish and a fond hope, what good

of it having regard to the importance of primary education?

A time limit was prescribed under this Article. Such a time

limit is found only here, If, therefore, endeavor has not

been made till now to make this Article reverberate with

life and articulate with meaning, we should think the Court

should step in. The State can be objected to ensure a right

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 86 of 111

to free education of every child up to the-age of 14 years.

On this aspect a useful reference could be made to what have

been observed in Human Right and Education Vol. 3 edited by

Norma Bernstein Tarrow at page 41:

"The State is directed to strive for the right

to education, make provision for free and

compulsory, education (Article 45) and promote

the. educational interests of Scheduled Castes

and Tribes, and other weaker sections

(including women).

Education is primarily the responsibility of

the State Governments, but the Union

Government has certain responsibilities

specified in the Constitution on matters such

as promote higher education and promotion of

education for weaker sections. Most states

have enacted

714

legislation for compulsory education. At the

end of the Sixth Five Year Plan (1985) primary

education for ages 6-11 is free in all states,

and for age group 11-14 it is free in all

except Orissa, Uttar Pradesh and West Bengal.

In these States, girls and members of

Scheduled Castes and Tribes get free

education, and incentives such as mid-day

meals, free books and uniforms, are provided.

At the secondary stage several states have

free education for all children and those

which do not make free education available to

all do so for girls, Scheduled Castes and

Tribes. Thus free education in all states is

provided at the primary and secondary stages

for girls, Scheduled Castes and Tribes."

Again at page 43 it is stated:

'Useful measures of achievement in terms of

the right to education are literacy and

enrollment levels. The contemporary picture,

however, is not as good as one would expect

after 39 years of independence. The literacy

rate has risen from 16.6. per cent in 1951 to

36.6 per cent according to the 1981 census.

But regional variations indicate a range of

above 60 per cent literacy in Kerala to below

20 per cent in some states. Nearly 120

million in the functional age group of 15-35

are still illiterate (Bhandari 1981).

Over the last three decades of planned

development, rapid growth in facilities has

attempted to provide access for minorities and

girls. The number of educational institutions

has more than doubled, while the number. of

teachers and students has multiplied many

tunes. But despite the fact that 93 per cent

of the rural population have access to schnook

nearly 30 per cent of 6-14 year old (60

million) do not go to school and T7 per cent

drop out. A large percentage of the dropouts

are grids and Scheduled Caste and Tribe

members. The main problems are socioeconomic

constraints which result in educational

constraints. Poverty is a majory cause for

keeping chidren

715

away from school."

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 87 of 111

Article 26(1) of the Universal Declaration of

Human Rights states:

"Everyone has the right to education.

Technical and professional and professional

education shall be made generally available

and higher education shall be equally

accessible to all on the basis of merit."

(Emphasis supplied)

In the World of Science and the Rule of Law by

John Ziman 1986 Edition at page 49 if is

stated:

"The principal global treaty which covers this

right is the ICESCR, whose Article 13

recognizes the general right to education

enunciated by the UDHR, but then goes on to

add the following more specific provisions:

(2) The States Parties to the present

Covenant recognize that, with a view to

achieving the full realization of this right:

(a) Primary education shall be compulsory

and available fee to all;

(b) Secondary education in its different

forms, including technical and vocational

secondary education, shall be made generally

available and accessible to all by every

appropriate means, and in particular by the

progressive introduction of free education:

(c) Higher education shall be made equally

accessible to all on the progressive

introduction of free education;

(d) Fundamental education shall be

encouraged or intensified as far as possible

for those persons who have not received or

completed the whose period of their primary

education;

(e) The development of a system of schools

at all levels shall be actively pursued, an

adequate fellowship system shall be

established, and the material conditions of

teach-

716

ing staff shall be continuously improved.

The status of this Article is a useful

reminder of the problems inherent in any

attempt to create a 'social' right of this

kind for individuals against their states."

No doubt, the above extract from Mohini Jain's case (supra)

states "education at all levels", but we 'consider the law

has been somewhat broadly stated and, therefore, must be

confined to what is envisaged under Article 45.

The criticism by Mr. Ashok Desai, learned counsel that

Article 37 has not been adverted to and the reliance on

directive principles is untenable, in view of what we have

stated above.

Higher education calls heavily on national economic

resources. The right to it must necessarily be limited in

any given country by its economic and social circumstances.

The State's obligation to provide it is, therefore, not

absolute and immediate but relative and progressive. It has

to take steps to the maximum of its available resources with

a view to achieving progressively the full realization of

the right of education by all appropriate means' But, with

regard to the general obligation to provide education, the

State is bound to provide the same, if it deliberately

starved its educational system by resources that it

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 88 of 111

meanifestly had available unless it could show that it was

allocating them to some even more pressing programme. fore,

by holding education as a fundamental right up to the age of

14 years this Court is not determining the priorities. On

the contrary, reminding it of the solemn endeavour, it has

to take, under Article 45, within a prescribed time, which

time limit was expired long ago.

Mr. K.K. Venugopal, learned counsel contends that in the

U.S. Supreme Court in the case of San Antonio Independent

School District v. Rodrgues, 1973 411 U.S. it was observed:

"It is not province of this Court to create

substantive constitutional rights in the name

of guaranteeing equal protection of the laws.

Thus the key to discovering whether education

is 'Fundamental" is not to be found

(imcomparisons) of the relative societal

significances of

717

education as opposed to subsistence or

housing... Rather, the answer lies in

assessing whether there is a right to

education explicitly or implicity guaranteed

by the Constitution.

But if in reality, the, fundamental rights and the directive

principles are complementary to each other we are unable to

see why this fundamental right cannot be interpreted in this

manner. The American Constitution does not have a directive

principle like, Article 45. Therefore, the contraly view

was struck in San Antonio Independent School District

(supra).

While dealing with the American Law on this aspect in Vol.

57 1969 Califomia Law Review at page 380 it was stated:,

"It is true that the quotation from the Brown

opinion seems stunningly relevant. Taken

literally it would be decisive in some sense

upon the question of this Article. Education

;must be made available to @ on equal terms."

From the vantage point of 1968, however, it is

no longer clear that Brown was specially

concerned about the interest in education.

The decision had scarcely appeared before the

"ftmdamental" character of education become

the fundamental character of golf and swimming

rights, and all the cases since Brown, even

the cases involving education, have shown

complete preoccupation with the racial factor.

Meanwhile the Court has done nothing further

to suggest that education enjoy as a

constitutional life of its own.'

As to the present position of primary education in India,

the additional affidavit on behalf of Union of India filed

by Mr. H.C. Baveja, Assistant Education Advisor in the

Ministry of Human Resources Development, Government of

India, Department of Education, New Delhi, puts the position

thus:

STATUS OF ELEMENTRY EDUCATION IN INDIA

1. Provision of free and compulsory

education to all children until they complete

the age of 14 years is a Directive Principle

of the Constitution. Recognising the

718

need for literate population and provision of

elementary education as a crucial input for

nation building, the policy of the Government

has been to provide all children the free and

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 89 of 111

compulsory education at least up to elementary

level (primary and upper primary level). The

6th Five Year Plan document made a serious

reference to the desirability of a time bound

plan to achieve universal enrolment. The 7th

Plan conveyed a sense of urgency about the

need to achieve this objective. This was

reinforced mid-way by the National Policy on

Education, 1986.

Progress over the years.

2. Concerted efforts to reach the target

has led to manifold increase in institutions,

teachers and students as shown in the table

below.-

Number of Institution (in lakhs)

---------------------------------------------------

1950-51 1990-91

----------------------------------------------------

Primary Schools 2.10 5.58

(Class I-V)

---------------------------------------------------

Upper Primary Schools 0.13 1.46

(Class VI-VIII)

----------------------------------------------------

Total 2.23 7.04

----------------------------------------------------

Number of Teachers (In lakhs)

----------------------------------------------------

Primary Schools 5.38 16.36

----------------------------------------------------

Upper Primary Schools O.36 10.59

-----------------------------------------------------

Total 6.24 26.95

-----------------------------------------------------

Gross Enrolment

------------------------------------------------------

Primary Enrolment (in 192 991

------------------------------------------------------

Gross Enrolment Ratio 43.1% 101.03%

--------------------------------------------------------

Upper Primary State

--------------------------------------------------------

Total Enrolment (in lakhs) 31 333

---------------------------------------------------------

Gross Enrolment Ratio 12.9% 60.11%

---------------------------------------------------------

719

3. This increase provided Indian Education

System with one of the largest systems in the

world, providing accessibility within 1 km.

walking distance of Primary schools to

8.26lakhs habitations containing about 94% of

the country's population. Growth in enrolment

in the decade of 80s showed an acceleration

that has now brought enrolment rates close of

100% at primary stage.

FREE EDUCATION.

4. In the endeavour to increase enrolment and

achieve the target of UEE, all State

Governments have abolised tuition fees in

Government Schools run by local bodies and

private aided institutions is mostly free in

these States. However, in private unaided

schools which constitute 3.7. of the total

elementary schools in the country, some fee is

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 90 of 111

charged. Thus, overall it may be said that

education up to elementary level in

practically all schools is free. Other costs

of education such as text books, uniforms,

school bags, transport etc. are not borne by

States except in a very few cases by way of

incentives to children of indigent families or

these belonging to Scheduled Caste/Scheduled

Tribes categories. The reason why the State

Government are unable to bear this additional

expenditure is that 96% of expenditure on

elementary education goes in meeting the

salaries of teaching and non-teaching staff.

COMPULSORY EDUCATION

5.14 States and 4 Union Territories have

enacted legislation to make education

compulsory but the socioeconomic compulsions

that keep the children away from schools have

restrained them from prescribing the rules and

regulations whereby those provisions can be

endorsed.

Thus, it has to be concluded that the right to free

education up to the age of 14 years is a fundamental right.

720

The next question is whether there is a fundamental right to

establish an educational institution. That takes us to

Article 19(1)(g). That reads as follows:

to practise any profession, or to cam on any

occupation, trade or business.'

The question now is: what is the meaning to be attributed to

the words 'profession, "occupation", "trade" or "business".

In P. Ramanatha Aiyar's Law Lexicon Reprint Edition 1987 at

page 897 'Occupation means:

"The principal business of one's life,

vocation,trade, the business which a man

follows to procure a living or obtain wealth:

that which occupies or engages one's time or

attention, vocation, employment, calling

trade; the business in which a man is usually

engaged, to the knowledge of his neighbour."

According to Black's Law Dictionary Fifth Edition at page

973 'Occupation' means:

"Possession; control; tenure; use. The act or

process by which real property is possessed

and enjoyed. Where a person exercises

physical control over land'.

That which principally takes up one's time,

thought, and energies, especially, one's

regular business or employment; also, whatever

one follows as the means of making a

livelihood. Particular business, profession,

trade, or calling which engages individual's

time and efforts; employment in which one

regularly engages or vocation of his life."

In P. V. G. Raju v. Commissioner of Expenditure, ITR Vol. 86

page 267 it is observed thus:

"The activity termed as 'Occupation'. if of

wider import than vocation or profession. It

is also distinct from a hobby which can be

resorted to only in leisure hours for

721

the purpose of killing time. Occupation,

therefore, is that with which a person

occupies himself 'either temporarily or

permanently or for a considerable period with

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 91 of 111

continuity of activity. It is analogous to a

business, calling or pursuit. A person may

have more than one occupation in a previous

year. The Occupations may be seasonal or for

the whole year."

"Firstly, there can be a business, profession,

vocation or occupation without any profit

motive or on 'no profit no loss basic. To,

illustrate, co-operative societies or mutual

insurance companies may carry on business

without earning any income or without any

profit motive. The vocation or occupation to

do social service of various kinds for the

uplift of the people would also come under

this category. The profit motive or earning

of income is not an essential ingredient to

constitute the activity, termed as business,

profession, vocation or occupation."

"If any authority is needed, we find it in

Commissioner of Expenditure Tax v. Mrs.

Manorama Sarabhai, (1966) 59 ITR 262 (Guj.)

wherein it was held that the educational

activities of the assessees amounted to an

occupation within the meaning of Section 5(a)

and that no profit motive is necessary to

treat an activity as a vocation or occupation

within the meaning of Section 5(a). For all

these reasons, we must negative this

submission of Mr. Ramarao relating to the

interpretation of the words "business,

profession, vocation or occupation' in section

5(a) of the Act."

In P.K Menon v. Income-tax Commissioner,

[1959] Supp. 1 SCR 133 at p. 137 this Court

observed as follows:

"We find no difficulty in thinking that

teaching is a vocation if not a profession.

It is plainly so and it is not necessary to

discuss the various meanings of the word

"vocation' for the purpose or to cite

authorities to support this view. Nor do we

find any reason why, if teaching is a

vocation, teaching of Vedanta is not. It is

just as much

722

teaching and therefore, a vocation, as any

other teaching. It is said that in teaching

Vedanta the appellant was only practising

religion. We are unable to see why teaching

of Vedanta as a matter of religion is not

carrying on of a vocation.'

"It is-said that as the word 'Vocation' has

been used along with the words 'business" and

"profession" and the object of business and a

profession, is to make a profit, only such

activities can be included in the word

'Vocation" the object of which likewise is to

make a profit. We think that these

contentions lack substance. We do not

appreciate the significance of saying that in

order to become a vocation an activity must be

organised. If by that a continuous, or as was

said, a systematic activity, is meant,we have

to point out that it is well known that a

single act may amount to the carrying on of a

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 92 of 111

business or profession".

The meaning of "business" can be gathered from Law Lexicon

Edition 1987 by Ramnath Iyer:

"Business is that which engages the time, talent and

interest of a man" and is what a man proposes to himself.

There may be a "Business" without precuniary profit being at

all contemplated.

"Business" and "Trade" : "Business" has a more

extensive meaning that "Trade" (per Willes, J.

Hariis v. Amery 35 L.J. C.P.92) But

"Ordinarily speaking, Business is synonymous

with 'Trade", (per Chatterton V. C. Delany v.

Deleny, 15 L.R. Ir. 67). There may, however,

be a "Business" without pecuniary profit being

at all contemplated. In such connection,

"Business' is a very much larger word than

'Trade' and the word "Business" is employed in

order to include occupations which would not

strictly come within the meaning of the word

"Trade (per Person, J. Rolls v. Miller, 53 LJ.

Ch. 101) per Scruitton. L.J. The words

'Trade" and 'Business" do not mean the same

thing ..... ;on business, though usually

business is carried on for profit. It is to

be presumed that the Railways are run on a

profit, though it may be that occasionally

they are run

723

at a loss."

"Monetary consideration for service is,

therefore, not an essential characteristic of

industry in a modern State".

In Hindustan Steel Limited v. State of Orissa,

[1970] 1 SCR 753 it is observed:

"A person to be a dealer within the meaning of

the Act must carry on the business of selling

or supplying goods in Orissa. The expression,

'business' is not defined in the Act. But as

observed by this Court in State of Andhra

Pradesh v. Abdul Bakshi, [1964] 7 SCR 664:

"The expression 'business' though extensively

used as a word of indefinite import, in taxing

statutes it is used in the sense of an

occupation, or profession which occupies the

time, attention and tabour of a person

,

normally with the object of making profit. To

regard an activity as business there must be a

course of dealings either actually continued

or contemplated to be continued with a profit

motive, and no for sport of pleasure."

In Barendra Prasad Ray v. The Income-tax Officer, AIR'1981

SC 1047: [1981] 3 SCR 387 at 400 B and H and 401 A and B it

is observed:

"The expression 'business does not necessarily

mean trade or manufacture only. It is being:

used as including within its scope profession,

vocations and calling from a fairly long time.

The Shorter Oxford English Dictionary defines

'Business" as stated occupation, profession or trade' and a

man of business is defined as

meaning "an attorney' also. In view of the

above dictionary meaning of the, word

'business' it cannot be said that the

definition of business given in Section 45 of

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 93 of 111

the Partnership Act, 1890 (53 & 54 Vict. C.

39) was an extended definition intended for

the purpose of that Act only. Section 45 of

that Act says:

The expression 'Business" includes every

Trade, occupation, or profession".

724

"Section 2(b) of the Indian Partnership Act,

1932 also defines 'Business' thus:-

"Business' includes every trade, occupation

and profession."

"The observation of Rowlatt, J. in,

Christopher Barker & Sons v. Commissioner of

Inland Revenue, (1919) 2 KB 222 at p.228. 'All

professions are businesses, but all businesses

are not professions, ..." also supports the

view that professions are generally regarded

as business. The same learned Judge in an

other case Commissioner of Inland Revenue v.

Marine Steam Turbine Co. Ltd., (1920) 1.KB.

193 held:

"The word 'Business' however is also used in

another and a very different sense, as meaning

an active occupation or profession

continuously carried on and it is in this

sense the word is used in the Act with which

we are here concerned".

"The word "Business" is one of wide import and

it means an activity carried on continuously

and systematically by a person by the

application of his labour skiff with a view to

earning an income. We are of the view that in

the context in which the expression "business"

is used in Section 9(1) of the Act, there is n

o

warrant for giving a restricted meaning to it

excluding professional connections from its

scope."

In each of these cases, depending upon the statute, either

"occupation" or 'business' has come to be defined.

Certainly, it cannot be contended that establishment of an

educational institution would be "business". Nor again,

could that be called trade since no trading activities

carried on. Equally, it is not a profession. It is one

thing to say that teaching is a profession but, it is a

totally different thing to urge that establishment of an

educational institution would a profession. It may perhaps

fall under the category of occupation provided no

recognition is sought from the State or affiliation from the

University is asked on the basis the it is a fundamental

right. This position is explained, below:

725

However, some of the learned counsel relied on Bangalore

Water Supply and Sewerage Board v. R Rajappa, [1978] 3 SCR

207 to urge that the activity of running an educational

institution was an industry. In that case, Krishna Iyer, J.

observed:

"To Christian education as a mission, even if

true, is not to negate it being an Industry,

we have to look at education activity from the

angle of the Act and so viewed the ingredients

of education are fufiled. Education is,

therefore, an industry nothing can stand in

the way of that conclusion."

This ruling was relied on in Miss Sundarambai

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 94 of 111

v. Government of Goa, [1988] Suppl. 1 SCR 604

at page 608B. It was held:

"Thus it is seen that even though an

educational institution has to be treated as

an industry in view of the decision in the

Bangalore Water Supply and Sewerage Board v.

R. Rajappa (supra) the question whether

teachers in an educational institution can be

considered as workmen still remains to be

decided.'

It requires to be carefully noted that while considering as

to what would constitute an industry under the Industrial

Disputes Act, these observations came to be made.

Certainly, that is very different from claiming a

fundamental tat right under Article 19(1) (g).

Even on general principles, the matter could be approached

this way. Educational institutions can be classified under

two categories:

1. Those requiring recognition by the State and

2. Those who do not require such a recognition..

It is not mere an establishment of educational institution,

that is urged by the petitioners, but, to run the educational

institution dependent on recognition by the

State. There is absolutely no fundamental right to

recognition in any citizen. The right to establishment and

run the educational institution with State's recognition

arises only on the State permitting pursuant to a policy

decision or on the fulfilment of the conditions of the

Statute. Therefore, where it is dependent on the permission

under the

726

statute or the exercise of an executive power, it cannot

qualify to be a fundamental right. Then again, the State

policy may dictate a different course.

The logical corollary of holding that a fundamental right to

establish in educational institution is available under

Article 19(1) (g) would lead of the proposition, right to

establish a university also. In fact, this Court had

occasion to point out in S. Azeez Basha and Anr v. Union of

India, 19681 1 SCR 833 at page 848 thus:

"Before we do so we should like to say that

the words educational institutions" are of

very wide import and would include a

university also. This was not disputed on

behalf of the Union of India and therefore it

may be accepted that a religious minority had

the right to establish a university under Art.

30(1). The position with respect to the

establishment of Universities before the

Constitution came into force in 1950 was this.

There was no law in India which prohibited any

private individual or body from establishing a

university and it was therefore open to a

private individual or body to establish a

university. There is a good deal in common

between educational institutions which are not

universities and those which are universities.

Both teach students and both have teachers for

the purpose. But what distinguishes a

university from any other educational

institution is that a university grants

degrees of its own while other educational

institutions cannot. It is this granting of

degrees by a university which distinguishes it

from the ordinary run of educational

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 95 of 111

institutions. (See St. David's College,

Lampeter v. Ministry of Educations 1951 1 All

E.R. 559). Thus in law in India there was no

prohibition against establishment of

universities by private individuals or bodies

and if any university was so established it

must of necessity be granting degrees before

it could be called a university. But though

such a university might be granting degrees it

did not follow that the Government of the

country was bound to recognise those degrees."

727

It there is no fundamental right to establish a university a

fortiori a fundamental right to establish an educational

institution is not available.

By implication also a fundamental right of the nature and

character conferred under Article 30 cannot be read into

Article 19(1) (g). The conferment of such a right on the

minorities in a positive way under Article 30 negatise the

assumption of a fundamental right in this behalf in every

citizen of the country.

In Ahmedabad St. Xaviers College Society v. State of

Gujarat, [1975] 1 SCR 173 at page 191 it is observed:

"The tight to establish and administer

educational institutions of their choice has

been conferred on religious and linguistic

minorities so that the majority who can always

have their tights by having proper legislation

do not pass a legislation prohibiting

minorities to establish and administer

educational institutions of their choice. If

the scope of Article 30(1) is made an

extension of the right under Article 29(1) as

the right to establish and administer

educational institutions for giving religious

instruction or for imparting education in

their religious teachings 'or tenets the

fundamental right of minorities to establish

and administer educational institution of

their choice will be taken away.

(Emphasis Supplied)

At page 192 it is observed:

"Article 30 is a special right to minorities

to establish educational institutions of their

choice. This Court said that the two Articles

create two separate rights though it is

possible that the rights might meet in a given

case.

The real reason embodied in Article 30 (1) of

the Constitution is the conscience of the

nation that the minorities, religious as well

as linguistic, are not prohibited from

establishing and administering educational

institutions of their choice for the purpose

of giving their children the best general

education to make them com-

728

plete men and women of the country. The

minorities are given this protection under

Article 30 in order to preserve and strengthen

the integrity and unity of the country. The

sphere of general secular education is

intended to develop the commonness of boys and

girls of our country. This is in the true

spirit of liberty, equality and fraternity

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 96 of 111

through the medium of education. If religious

or linguistic minorities are not given

protection under Article 30 to establish and

administer educational institutions of their

choice, they will feel isolated and separate.

General secular education will open doors of

perception and act as the natural fight of

mind for our countrymen to live in the whole."

Then again, at page 224 it is observed:

"The idea of giving some special rights to the

minorities is not to have a kind of privileged

or pampered section of the population but to

give to the minorities a sense of security and

a feeling of confidence. The great leaders of

India since time immemorial had preached the

doctrine of tolerance and cathnolicity of

outlook. Those noble ideas were enshrined in

the Constitution. Special rights for

minorities were designed not to create

inequality. Their real effect was to bring

about equality by ensuring the preservation of

the minority institutions and by guaranteeing

to the minorities autonomy in the matter of

the administration of these institutions. The

differential treatment for the minorities by

giving them special rights is intended to

bring about an equilibrium, so that the ideal

of -quality may not be reduced to a mere

abstract idea but should become a living

reality and result in true, genuine equality,

an equality not merely in theory but also in

fact. The majority in a system of adult

franchise hardly needs any protection. It can

look after itself and protect its interests.

Any measure wanted by the majority can without

much difficulty be brought on the statute

book because the majority can get that done by

giving such a mandate to the elected

representatives. It is only the

729

minorities who need protection, and article

30, besides some other articles, is intended

to afford and guarantee that protection.

(Emphasis supplied)

The argument that every activity or occupation by the mere

fact of its not being abnoxious or harmful to society-,

cannot by itself be entitled to protection as fundamental

right. As pointed out above, some rights, by the very

nature, cannot be qualified to be protected as fundamental

rights.

Accordingly, it is held that there is no fundamental right

under Article 19(1) (g) to establish an educational

institution, if recognition or affiliation is sought for

such an educational institution. It may be made clear that

any one desirous of starting an institution purely for the

purposes of educating the students he could do so but

Sections 22 and 23 of the University Grants Commission Act

which prohibits the award of degrees except by a University

must be kept in mind.

The next question which calls for determination is; does

recognition or affiliation make the educational institution

an instrumentality ? We propose to examine this question

with reference to the following cases.

In Ajay Hasia v. Khalid Mujib Sehravardi, [1981] 2 SCR 79 at

pages 96 and 97 it was observed:

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 97 of 111

"The tests for determining as to when a

corporation can be said to be an

instrumentality or agency of Government may

now be called out from the judgment in the

Intemational Airport Authority's case. These

tests are not conclusive or clinching, but

they are merely indicative indicate which have

to be used with care and caution, because

while stressing the necessity of a wide

meaning to be placed on the expression "other

authorities', it must be realised that it

should not be stretched so far as to bring in

every autonomous body which has some nexus

with the Government within the sweep of the

expression. A wide enlargement of the meaning

must be tempered by a wise limitation. We may

summarise the relevant tests gathered from the

decision in the Intemational Airport

730

Authority's case as follows:

(1)"One thing is clear that if the entire

share capital of the corporation is held by

Government it would go a long way towards

indicating that the corporation is an

instrumentality or,agency of Government."

(2)"Where the financial assistance of the

State is so much as to meet almost entire

expenditure of the corporation, it would

afford some indication of the corporation

being impregnated with governmental

character."

(3)"It may also be a relevant factor...

whether the corporation enjoys monopoly status

which is the State conferred or State

protected."

(4)"Existence of deep and pervasive State

control may afford an indication that the

Corporation is a State agency or

instrumentality.'

(5)"If the functions of the corporation of

public importance and closely related t

o

governmental functions, it would be a relevant

factor in classifying the corporation as an

insmmentality or agency of Government."

(6)"Specifically, if a department of

Government is transferred to a corporation, it

would be a strong factor supportive of this

inference of the corporation being an

instrumentality or agency of Government."

If on a consideration of these relevant

factors it is found that the corporation is an

instrumentality or agency of government, it

would, as pointed out in the Inter alia

Airport Authority's case, be an 'authority'

and, therefore, 'State' within the meaning of

the expression in Article 12.

We find that the same view has been taken by

Chinnappa Reddy, J. in a subsequent decision

of this Court in the UP. Warehousing

Corporation v. Vijay Narain [1980] 3 SCC 459

and the observations made by the learned Judge

in that case strongly reinforced the view,we

are

731

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 98 of 111

taking particularly in the matrix of our

constitutional system."

Ranganath Mishra, J. (as he then was), speaking for the

Court, after a succinct analysis of the entire case law on

the subject concludes in Tekraj Vasandi v. Union of India

[1988] 1 SCC 236 at page 257 as under:

"We have several cases of societies registered

under Societies Registration Act which have

been treated as 'State' but in each of those

cases it would appear on analysis that either

governmental business had been undertaken by

the Society or what was expected to be the

public obligation of the 'State' had been

undertaken to be performed as a part of the

Society's function. In a Welfare State, as

has been pointed out on more than one occasion

by this Court, governmental control is very

pervasive and in fact touches all aspects of

social existence. In the absence of a fair

application of the tests to be made, there is

possibility of turning every non-governmental

society into an agency or instrumentality of

the State. That obviously would not serve the

purpose and may be far from reality. A broad

picture of the matter has to be taken and a

discerning mind has to be applied keeping the

realities and human experiences in view so as

to reach a reasonable' conclusion. Having

given our anxious consideration to the facts

of this case, we are not in a position to hold

that ICPS is either an agency or

instrumentality of the State so as to com

e

within the purview of 'other authorities' in

Article 12 of the Constitution. We must say

that ICPS is a case of its type typical in

many ways and the normal tests may perhaps not

properly apply to test its character.'

The same learned Judge, after referring to the tests

adumberated in Ajay Hasia (supra), holds in All India Sainik

Schools Employees Assn. v. Sainik Schools Society, [1989]

Supp 1 SCC 205 at 212:

"...... that the Sainik School Society is also

'State'. The entire funding is by the State

Governments and the Central Government. The

overall control vests in the governmental

authority. The main object of the Society is

732

to run schools and prepare students for the

purpose of feeding the National Defence

Academy. Defence of the country is one of the

regal functions of the State."

Applying these tests, we find it impossible to hold that a

private educational institution either by recognition or

affiliation to the university could ever be called an

'instrumentality of State. Recognition is for the purposes

of conforming to the standards laid down by the State.

Affiliation is with regard to the syllabi and the course of

study. Unless and until they are in accordance with the

prescription of the University, degrees would not be

conferred. The educational institutions prepare the

students for the examination conducted by the university.

Therefore, they are obliged to follow the syllabi and the

course of the study.

As a sequel to this, an important question arises: what is

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 99 of 111

the nature of functions discharged by these institutions ?

they discharge a public duty. If a student desires to

acquire a degree, for example, in medicine, he will have to

route through a medical college. These medical colleges are

the instruments to attain the qualification. If, therefore,

what is discharged by the educational institution, is a

public duty that requires, duty and act fairly.

In such a case, it will be subject to Article 14.

Andi Mukta Sadguru Shree Muktajee Vandas Swami Suvama

Jayanti Mahotsav Samarak Trust v. VR. Rudani, [1989] 2 SCC

691 is an interesting case where a writ of mandamus was

issued to a private college. In paragraph 12 at page 697 it

was held:

"The essense of the attack on the

maintainability of the writ petition under

Article 226 may now be examined. It is argued

that the management of the college being a

trust registered under the Bomaby Public Trust

Act is not amenable to the writ jurisdiction

of the High Court. The contention in other

words, is that the trust is a private

institution against which no writ of mandamus

can be issued. In support of the contention,

the counsel relied upon two decisions of this

Court: (a) Executive Committee of Vanish

Degree College, Shamli v. Lakshmi Narain,

[1976] 2 SCC 58 and (b) Deepak Kumar Biswas v.

Director of Public Instructions, [1987] 2 SCC

252. In the first of the

733

two cases, the respondent institution was a

Degree College managed by a registered co-

operative society. A suit was filed against

the college by the dismissed principal for

reinstatement. It was contended that the

Executive Committee of the college which was

registered under the Co-operative Societies

Act and affiliated to the Agra University (and

subsequently to Meerut University) was a

statutory body. The importance of this

contention lies in the fact that in such as

case, reinstatement could be ordered if the

dismissal is in violation of statutory obliga-

tion. But this Court refused to accept the

contention. It was observed that the

management of the college was not a statutory

body since not created by or under a statute.

It was emphasised that an institution which

adopts certain statutory provisions will not

become a statutory body and the dismissed

employee cannot enforce a contract of personal

service against a non-statutory body."

At paragraphs 15 to 20 it was held:

"If the rights are purely of a private

character no mandamus can issue. If the

management of the college is purely a private

body with no public duty mandamus will not

lie.These are two exceptions to mandamus. But

once these are absent and when the party has no other equa

lly convenient remedy, mandamus

cannot be, denied. It has to be appreciated

that the appellants-trust was managing the

affiliated college to which public money is

paid as government aid. Public money paid as

government aid plays a major role in the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 100 of 111

control maintenance and working of educational

institutions. The aided institutions like

government institutions discharge public

function by way of imparting education to

students. They are subject to the rules and

regulations of the affiliating University.

Their activities are closely supervised by the

University authorities Employment in such

institutions, therefore, is not devoid of any

public character. (See The Evolving Indian I

Administrative Law by M.P. Jain (1983) p. 226)

So are the service conditions of the academic

staff. When the

734

University takes a decision regarding their

pay scales, it will be binding on the

management. The service conditions of the

academic staff are, therefore, not purely of a

private character. It has super-added

protection by University decisions creating a

legal right-duty relationship between the

staff and the management. When there is

existence of this relationship, mandamus

cannot be refused to the aggrieved party.

The law relating to mandamus has made the most

spectacular advance. It may be recalled that

the remedy by prerogative writs in England

started with very limited scope and suffered

from many procedural disadvantages. To

overcome the difficulties, Lord Gardiner (the

Lord Chancellor) in pursuance of Section 3(1)

(e) of the Law Commission Act, 1965, requested

the Law Commission 'to review the existing

remedies for the judicial control of

administrative acts and omissions with a view

to evolving a simpler and more effective

procedure'. The Law Commission made their

report in March 1976 (Law Commission Report

No. 73). It was implemented by Rules of Court

(Order 53) in 1977 and given statutory force

in 1981 by Section 31 of the Supreme Court

Act, 1981. It combined all the former

remedies into one proceeding called Judicial

Review. Lord Denning explains the scope of

this "judicial review:

"At one storke the courts could grant whatever

relief was appropriate. Not only certiorari

and mandamus, but also declaration and

injunction. Even damages. The procedure was

much more simple and expeditious. Just a

summons instead of a writ. No formal

pleadings. The evidence was given by

affidavit. As a rule no cross-examination, no

discovery, and so forth. But there were

important safeguards. In particular, in order

to qualify, the applicant had to get the leave

of a judge.

The statute, is phrased in flexible terms. it

gives scope for development. It uses the

words 'having regard to

735

Those words are indefinite. The result is

that the courts are not bound hand and foot by

the previous law. They are to 'have regard

to' it. So the previous law as to who are

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 101 of 111

and who are not public authorities, is not

absolutely binding.. Nor is the previous law

as to the matters in respect of which relief

may be granted. This means that the judges

can develop the public law as they think best.

That they have done and are doing. (See The

Closing Chapter by Rt. Hon. Lord Denning p.

122)"

There, however, the prerogative writ of

mandamus is confined only to public

authorities to compel performance of public

duty. The 'public authority' for them mean

every body which is created by statute and

whose powers and duties are defined by

statute. So government departments, local

authorities, police authorities, and statutory

undertakings and corporations, are all 'public

authorities'. But there is no such limitation

for our High Courts to issue the writ in the

nature of mandamus. Article 226 confers wide

powers on the High Courts to issue writs in

the nature of prerogative writs. This is a

striking departure from the English law.

Under Article 226, writs can be issued to "any

person or authority". It can be issued 'for

the enforcement of any of the fundamental

rights and for any other purpose".

226.Power of High Courts to issue certain

writs. (1) Notwithstanding anything in

Article 32, every High Court shall have power,

throughout the territories in relation to

which it exercises jurisdiction, to issue to

any person or authority including in

appropriate cases, any government within those

territories directions orders and writs,

including writs in the nature of habeas

corpus, mandamus, prohibition quo warranto and

certiorari or any of them for the enforcement

of any of the rights conferred by Part III and

for any other purpose.

The scope of this article has been explained

by Subba

736

Rao, J., In Dwarkanath v. ITO, [1965] 3 SCR 536:

This article is couched in comprehensive

phraseology and it ex-facie confers a wide

power on the High Courts to reach injustice

wherever it is found. The Constitution

designedly used a wide language in describing

the nature of the power, the purpose for which

and the person or authority against whom it

can be exercised. It can issue writs in the

nature of prerogative writs as understood in

England; but the scope of those writs also is

widened by the use of the expression "nature",

for the said expression does not equate the

writs that can be issued in India with those

in England, but only draws an analogy from

them. That apart, High Courts can also issue

directions, orders or writs other then the

prerogative writs. It enables the High Court

to would the reliefs to meet the peculiar and

complicated requirements of this country. Any

attempt to equate the scope of the power of

the High Court under Article 226 of the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 102 of 111

Constitution with, that of the English courts

to issue prerogative writs is to introduce the

unnecessary procedural restrictions grown over

the years in ,a comparatively small country

like England with a unitary form of government

into a vast country like India functioning

under a federal structure. Such a

construction a construction defeats the

purpose of the article itself.

The term "authority" used in Article 226, the

context must receive a liberal meaning unlike

the term in Article 12. Artcle 12 is

relevant only for the purpose of enforcement

of fundamental rights under Article 32.

Article confers power on the High Courts to

issue writs for enforcement of the fundamental

rights as well as non-fundamental rights. The

words "any person or authority' used in

Article 226 are, therefore, not to be confined

only to statutory authorities and

instrumentalities of the State. They may

cover any other person or body performing

public duty. The form of the body concerned

is not very much relevant. What is relevant

is the nature of the duty imposed on the

body.The duty must be judge in the light

737

of positive obligation owed by the person or

authority to the affected party. No matter by

what means the duty is imposed, if a positive

obligation exists mandamus cannot be denied.

The emphasis in this case is as to the nature of duty

imposed on the body. It requires to be observed that the

meaning of authority under Article 226 came to be laid down

distinguishing the same term from Article 12. In spite of

it, if the emphasis is on the nature of duty on the same

principle it has to be held that these educational

institutions discharge public duties. Irrespective of the

educational institutions receiving aid it should be held

that it is a public duty. The absence of aid does not

detract from the nature of duty.

In R. v. Panel on Take-Overs, 1987 (1). All England Reports

564 at page 568 it is observed:

"The principal issue in this appeal, and the

only issue which may matter in the longer

term, is whether this remarkable body is above

law. Its respectability is beyond question.

So is its bona fides. I do not doubt for one

moment that it is intended to and does operate

in the public interest and that the enormously

wide discretion which it arrogates to 'itself

is necessary if it is to function efficiently

and effectively. While not wishing to become

'involved in the political controversy on the

relative merits of self-regulation and

governmental or statutory regulation, I am

content to assume for the purposes of this

appeal that seff-regulation is preferable in

the public interest. But that said, what is

to happen if the panel goes off the rails ?

Suppose, perish the thought, that it were to

use its powers 'in a way in which was

manifestly unfair. What then ? Counsel for

the panel submits that the panel would lose

the support of public opinion in the financial

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 103 of 111

markets and would be unable to continue to

operate. Further or alternatively, Parliament

could and would intervene. Maybe but how long

would that take and who in the meantime could

or would come. to the assistance of those who

were being oppressed by such conduct"?

738

At page 574 it is held:

"The picture which emerges is clear. As an

act of government it was decided that, in

relation to takeovers, there should be a

central self-regulatory body which would be

supported and sustained by a periphery of

statutory powers and penalties wherever non-

statutory powers and penalties were

insufficient or non-existent or where EEC

requirements called for statutory provisions."

At page 577 it is held:

"In fact, given its novelty, the panel fits

surprisingly well into the format which this

court had in mind in R.v. Criminal Injuries

Compensation Board. It is without doubt

performing a public duty and an important one.

This is clear from the expressed willingness

of the Secretary of State for Trade and

Industry to limit legislation in the field of

takeovers and mergers and to use the panel as

the centerpiece of his regulation of that

market. The rights of citizens are indirectly

affected by its decisions, some, but by no

means all of whom, may in a technical sense be

said to have assented to this situation, e.g.

the members of the Stock Exchange. At least

in its determination of whether there has been

a breach of the code, it has a duty to act

judicially and it asseas that its raison deter

is to do equity between one shareholder and

another. Its source of power is only partly

based on moral persuasion and the assent of

institution and their members, the bottom line

being the statutory powers exercised by the

Department of Trade and Industry and the Bank

of England. In this context I should be very

disappointed if the courts could not recognise

the realities of executive power and allowed

their vision to the clouded by the subtlety

and sometimes complexity of the way in which

it can be exerted.

Given that it is really unthinkable that, in

the absence of legislation such as affects

trade unions, the panel should go on its way

cocooned from the attention of the courts, in

defence of the citizenry, we sought to

investigate

739

whether it could conveniently be controlled by

established forms of private law e.g. torts

such as actionable combinations in restraint

of trade, and, to this end, pressed counsel

for the applicants to draft a writ. Suffice

it to say that the result was wholly

unconvincing and, not surprisingly, counsel

for the panel did not admit that it would be

in the least effective."

At page 584 it is held:

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 104 of 111

"More recently in R.v. BBC, ex p Lavelle,

(1983) 1 AU. ER 2451 (1983) 1 WLR Woolf J had

to consider an application for judicial review

where the relief sought was an induction under

Ord 53, 1 (2). The case was brought by an

employee of the BBC. In refusing relief Woolf

J said (1983) 1 AD ER 241 at 249, 1983 1 WLR

23 at 31:

"Paragraph (2) of r 1 of Ord 53 does not

strictly confine applications for judicial

review to cases where an order for mandamus,

prohibition or certiorari could be granted.

It Merely requires that the court should have

regard to the nature of the matter 'in respect

of which such relief may be granted. However,

although applications for judicial review are

not confined to those cases where relief could

be granted by way of prerogative order, I

regard the wording of Ord 53, r 1 (2) and sub-

s (2) of s 31 of the Supreme Court Act 1981 as

making it clear that the application for

judicial review is confined to reviewing ac-

titivities of a public nature as opposed to

those of a purely private or domestic

character. The disciplinary appeal procedure

set up by the BBC depends purely on the

contract of employment between the applicant

and the BBC, and therefore it is a procedure

of a purely private or domestic character."

739

PRIVATE COLLEGES AND THEIR ROLE.

The Union of India takes the stand that the Central

Government does not have the resources to undertake any

additional financial responsibility for medical or technical

education. Taking the case of medical

740

education, the total plan outlay for the health sector is

3.2 per cent and medical education gets a pro-rata share

after apportionment of priorities and allocation of

available funds. Priorities include promotions of primary

health, hospital services etc. The Government in particular

is unable to aid any private educational institution

financially at levels higher than at present. Certain

statistical details regarding the cost of medical education

have been given in the counter affidavit of the Central

Government. Paragraphs 5 to 9 of the affidavit may kindly

be seen in this connection.

It has, therefore, been the policy of the Central Government

to involve private and voluntary efforts in the sector of

education in conformity with accented norms and goals. The

adverse consequences which will follow if private

educational institutions have to limit themselves to a fee

structure which is charged in Government medical and

technical educational institutions have been enumerated in

paragraph 9 of the counter affidavit of the Union of India.

The Central Government's policy on education was formulated

in the year 1986. Modifications were undertaken in 1992.

The relevant extracts from the National Policy on

Education, being paragraph 6.20, 10.1, 10.9 and 11.2 are set

out herein below:

"6.20 In the interests of maintaining

standards and for several other valid reasons,

the commercialisation of technical and

professional education will be curbed. An

alternative system will be devised to involve

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 105 of 111

private and voluntary effort in this sector of

education, in conformity with accepted norms

and goals."

"10.1 An overhaul of the system of planning

and the management of education will receive

high priority. The guiding considerations

will be:

(a) Evolving a long- term planning and

management perspective of education and its

integration with the country's developmental

and manpower needs:

(b) Decentralisation and the creation of a

spirit of autonomy for educational

institutions;

741

(c)Giving pre-eminence to people, involvement,

including association of non-governmental

agencies and voluntary effort;

(d)Inducting more women in the planning and

management of education;

(e)Establihing the principle of accountability

in relation to given objectives and norms."

"10.9 Non-Government and voluntary effort

including social activist groups will be

encouraged, subject to proper management, and

financial assistance provided. At the same

time, steps will be taken to prevent the

establishment of institutions set up to

commercialise education."

"11.2 Resources, to the extent possible, will

be raised by mobilising donations, asking the

beneficiary communities to maintain school

buildings and supplies of some consumables,

raising fees at the higher levels of education

and effecting some savings by the efficient

use of facilities. Institutions involved with

research and the development of technical and

scientific manpower should also mobilize some

funds by levying a cress or charge on the user

agencies, including Government departments,

and entrepreneurs. All these measures will be

taken not only to reduce the burden on State

resources but also for creating a greater

sense of responsibility within the educational

system. However, such measures will

contribute only marginally to the total

funding. The Government and the community in

general will find funds for such programmes

as; the universalisation of elementary

education; liquidating illiteracy; equality of

access to educational opportunities to all

sections throughout the country; enhancing the

social relevance, quality and functional

effectiveness of educational programmes;

generating knowledge and developing

technologies in scientific fields crucial to

self-sustaining economic development and

creating a critical consciousness of the

values and imperatives of national survival."

742

Therefore, as on today, it would be unrealistic and unwise

to discourage private initiative in providing educational

facilities, particularly for higher education. The private

sector should be involved and indeed encouraged to augment

the much needed resources in the field of education, thereby

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 106 of 111

making as much progress as possible in achieving the

constitutional goals in this respect. It could be concluded

that the private colleges are the felt necessities of time.

That does not mean one should tolerate the "so-called

colleges" run in thatched huts with hardly any equipment,

with no or improvised laboratories, scarce facility to learn

in an unhealthy atmosphere, far from conducive to education.

Such of them must be put down ruthlessly with an iron hand

irrespective of who has started the institution or who

desires to set up such an institution. They are poisonous

weeds in the field of education. Those who venture are

financial adventurers without morals or scrupules. Their

only aim is to make money, driving a hard bargain,

exploiting eagerness to acquire a professional degree which

would be a passport for employment in a country rampant with

unemployment. They could be even called pirates in the high

seas of education.

At this juncture, it is worthwhile to refer to the

Resolution passed at the 48th AR India Medical Conference:

"Resolution No. 2

Racketeering in Medical Education:

Whereas, a number of institutions have sprung

up in the country that style themselves as

Medical College; and

Whereas, such institutions charge large sums

as capitation fees, a practice which the

Indian Medical Association and the Medical

Council of India have opposed a number of

times; and Whereas, such institutions neither

have suitable buildings, nor proper equipment

and even lack adequate staff of requisite

qualifications and further it has come to

light that these institutions swindle the

public by taking large sums, of money from

students although these institutions have not

been recognised by the authorities;

743

This 48th All India Medical Conference urges

upon the Governments to take stringent

measures against persons/institutions

who/which run such medical colleges and close

them and recommend to the Medical Council of

India not to grant them recognition.

(48th Conference Dec. 29, 31, 1972 at Ahmedabad)"

However, a word of caution requires to be uttered. Not all

the private instutions belong to this category. There are

institutions which have attained great reputation by

devotion and by nurturing high educational standards. They

surpass the colleges run by the Government in many respects.

They require encouragement. From this point of view

regulatory controls have to be continued and strengthened.

The commercialisation of education, the racketeering must be

prevented. The State should strive its utmost in this

direction.

Regulatory measures must so ensure that private educational

institutions maintain minimum standards and facilities.

Admission within all groups and categories should be based

only on merit. There may be reservation of seats in favour

of the weaker sections of the society and other groups which

deserve special treatment. The norms for admission should

be pre-determined, objective and transparent.

Before the scheme, a question may arise whether a mandamus

could issue for the enforcement of scheme if proposed by the

Court. For this, we may look up at Suman Gupta and Ors. v.

State of J & K and Ors., [1983] 3 SCR 985 at page 991:

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 107 of 111

"The Medical Council of India is directed to

formulate a proper constitutional basis for

determining the selection of candidates for

nomination to seats in Medical Colleges

outside the State in the light of the

observations contained in this judgment.

Until a policy is so formulated and concrete

criteria are embodied in the procedure

selected, the nominations shall be made by

selecting candidates strictly on the basis of

merit, the candidates nominated being those,

in order of merit, immediately below the

candidates selected for admission to the

Medical Colleges of the home State."

744

It cannot be gainsaid that profiteering is an evil. If a

public utility like electricity could be controlled,

certainly, the professional colleges also require to be

regulated.

In Kerala State Electricity Board v. S.N. Govinda Prabhu,

[1986] 3 SCR it is held:

"It is a public utility monopoly undertaking

which may not be driven by pure profit motive

not that profit is to be shunned but that

service and not profit should inform its

actions. It is not the function of the Board

to so manage its affairs as to earn the

maximum profit even as a private corporate

body may be inspired to earn huge profits with

a view to paying large dividends to its

shareholders. But it does not follow that the

Board may not and need not earn profits for

the purpose of performing its duties and

discharging its obligations under the statute.

It stands to common sense that the Board must

manage its affairs on sound economic

principles. Having ventured into the field of

Commerce, no public service urdertaking can

afford to say it will ignore business

principles which are as essential to public

service undertakings as to Commercial

ventures."

At pages 650-51 it is held:

"The Board may not allow its character as a

public utility undertaking to be changed into

that of a profit motivated private trading or

manufacturing house. Neither the tariffs nor

the resulting surplus may reach such heights

as to lead to the inevitable conclusion that

the Board has shed its public utility

character. When that happens the Court may

strike down the revision of tariffs as plainly

arbitrary."

In Oil and Natural Gas Commission and Anr v.

Association of Natural Gas Conmming Industries

of Gujarat and others, [1990] Supp. SCC 397

at 399 it is held:

The notion that the 'cost plus' basis can be

the only criterion for fixation of prices in

the case of public

745

enterprises stems basically from the concept

that such enterprises should function either

on a no profit no loss basis or on a minimum

profit basis. This is not a correct approach.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 108 of 111

In the case of vital commodities or services,

while private concerns must be allowed a

minimal return on capital invested, public

undertakings or utilities may even have to run

at losses, if need be and even a minimal

return may not be assured. In the case of

less vital, but still basic commodities, they

may be required to cater to needs with a

minimum profit margin for themselves. But

given a favourable area of operation,

"commercial profits' need not be either

anathema or forbidden fruit even to public

sector enterprises."

In Hindustan Zinc Ltd v. A.P.S.E.B., [1991] 3

SCC 299 at pages 306-307 it is held:

"This Court expressly rejected the submission

which had found favour with the Kerala High

Court that in the absence of a specification

by the State Government, the position would be

as it was before the 1978 amendment, that is,

the Board was to carry on its affairs and

adjust the tariffs in such a manner as not to

incur a loss and no more. While rejecting the

submission, this Court held as under: (SCC pp.

213-14, para 10)

"We are of the view that the failure of the

government to specify the surplus which may be

generated by the Board cannot prevent the

Board from generating a surplus after meeting

the expenses required to be met. Perhaps, the

quantum of surplus may not exceed what a

prudent public service undertaking may be

expected to generate without sacrificing the

interests it is expected to serve and without

being obsessed by the pure profit motive of th

e

private entrepreneur. The Board may not allow

its chara cter as a public utility undertaking

to be changed into that of a profit motivated

private trading or manufacturing household.

Neither the tariffs nor the resulting surplus

may reach such heights as to lead to the

inevitable conclusion

746

that the Board has shed its public utility

character. When that happens the Court may

strike down the revision of tariffs as plainly

arbitrary. But not until then. Not, merely

because a surplus has been generated, a

surplus which can by no means be said to be

extravagant. The court will then refrain from

touching the tariffs. After all as has been

said by this Court often enough 'price

fixation' is neither the forte nor the funtion

of the Court."

It cannot be conteded that education must be available free

and it must be run on a charitable basis. In this

connection, we may usefully quote P.R. Ganapathy Iyer's The

Law relating to Hindu and Mahomedan Endowments, as to the

concept of charity which is elastic. At page 46 of Chap.

III it is stated:

"A charitable establishment is a choultry,

college, dispensary etc., while a religious

establishment is a mosque, temple etc. For

these endowments may be made.'

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 109 of 111

At page 47 it is stated:

"In English law the word 'charity' has both a

popular and a technical meaning. The popular

meaning of the word does not coincide with its

legal or technical meaning. Even according to

the popular or ordinary meaning the word is

used in more senses than one. In a narrow and

limited sense the ordinary acceptation of the

word is "relief of physical necessity or

want". (Per Lord Shand in Baird's Trustees v.

Lord Advocate, 15 Sess. Cas. 4th Series 682)

In a somewhat more extended sense, the

ordinary and popular acceptation of the word

is 'refief of poverty' and "a charitable act

or purpose" consists in refieving poverty or

want. (bid per Lord President (Ingfis). In a

still more extended sense and in its popular

and ordinary acceptation 'charity' comprehends

all benefits, whether religious, intellectual

or physical bestowed upon persons who, by

reason of their poverty, are unable to obtain

such benefits for themselves withou

t

assistance. (Per Lord Watsom in Commissioners

for special purposes of Income-tax v. Pemsel

(1891) A.C. 531 (557)."

747

At page 49 it is stated:

"Charity in its legal sense as understood in

the English Law comprises four principal

divisions:- (1) trusts for the relief of

poverty-, (2) trusts for the advancement of

education; (3) trusts for advancement of

religion; (4) and trusts for other purposes

beneficial to the community not falling under

any of the preceding heads.'

In B.K. Mukherjee on the The Hindu Law of

Religious and Charitable Trust at page 58 para

2.7A it is stated:

"2.7A. Education:- The second category on

charitable trusts in Lord McNaghten's

classification comprises trusts for education.

These trusts need not be meant exclusively for

the poor. Of course, there must be a public

purpose, something tending to the benefit of

the community. There must be general public

benefit through the advancement or furtherance

of some educational purpose. But if this

important condition is satisfied, the scope of

"education" would appear to be fairly wide in

several respects.'

In St. Stephen's College v. University of

Delhi, [1992] 1 SCC 558 at page 609-10 it is

held:

"The educational institutions are not business

houses. They do not generate wealth. They

cannot survive without public funds or private

aid. It is said there is also restraint on

collection of students fees. With the

restraint on collection of fees, the

minorities cannot be saddled with the burden

of maintaining educational institutions

without grant-in-aid. They do not have

economic advantage over others. It is not

possible to have educational institutions

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 110 of 111

without State aid. This was also the view

expressed by Das, CJ., in Kerala Education

Bill case, (1970) 2 SCC 417: [1971] 1 SCR 734.

The minorities cannot, therefore, be asked to

maintain educational institutions on their

own."

The time is not yet ripe to hold that education must be made

available on a charitable basis. It is true whenever trusts

are made for

748

advancement of education it was held to be a charitable

purpose. In Special Commissioners of Income-tax v. Pemsel,

3 Tax Cases 53 at 96 the dictum of Lord Macnaghten is as

follows:

"No doubt, the popular meaning of the words

"charity' and "charitable" does not coincide

with their legal meaning, and no doubt it

is easy enough to collect from the books a few

decisions which seem to push the doctrine of

the Court to the extreme, and to present a

contrast between the two meanings in an aspect

almost ludicrous. But still it is difficult

to fLx the point of divergence, and no one has

yet succeeded in defining the popular meaning

of the word "charity'. The learned counsel

for the Crown did not attempt the task. Even

the paraphrase of the Master of the Rolls is

not quite satisfactory.......... "Charity' in

its, legal sense comprises four principal

divisions: trusts for the relief of poverty,

trusts for the advancement of education,

trusts for the advancement of religion, and

trusts for other purposes beneficial to the

community not falling under any of the

preceding heads. The trusts last referred to

are not the less charitable in the eye of the

law because incidentally they benefit the rich

as well as the poor, as indeed every charity

that deserves the name must do, either

directly or indirectly."

The next case to which reference can be made is The King v.

The Commissioner for Special Purposes of the Income-tax, 5

Tax cases 408. The question arose whether the University

College of North Wales could be held as established for

charitable purposes. Fletcher Moulton, LJ. relying on

Pemsel's case (supra) held that a trust for advancement of

edur-ation was charitable.

In The Abbey Malvem Wells, Ltd v. Minister of Town and

Country Planning, 1951 (2) All England Law Reports 154 at

pages 160-161 it was held:

"In the present case, it seems to me that one

is entitled, and indeed, bound, to look at the

constitutional of the company to see who, in

fact, is in control. I find that, by Art. 3

of the company's articles, the company is

controlled

749

entirely by a body called a council a body of

persons, and, by Art. 64 that body of persons

must be the trustees of the trust deed.

Therefore, while the company, theoretically,

has the power to apply its property and assets

for the purpose of making profits and devoting

the resulting profit to the distribution of

divident among the members, I find that the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 111 of 111

persons who regulate the operations of the

company are not free persons unrestricted in

their operations, but are the trustees of the

trust deed, and, under the terms of the trust

deed, they may use the property of the company

only in a particular way and must not make us

of the assets of the company for the purpose

of a profit-making concern. I find that they

are strictly bound by the trusts of the trust

deed, and that those trusts are charitable

trusts. It seems to me, therefore, that,

while nominally the property of the company is

held under the provisions of the memorandum

and articles of association, in actual fact

the property of the company is regulated by

the terms of the memorandum and articles of

association plus the provisions of the trust

deed, and, therefore, the company is

restricted in fact in application of its

property and assets and may apply them only

for the charitable purposes which are

mentioned in the trust deed."

This may be so, for the purpose of defining charity, but' in

a country like ours it is impossible to hold that such

theories could be advanced or implemented.

N.P.V. Petitions and Appeals disposed of

750