Facts:
Under the terms of the Orissa Education Act, 1969[i], non-government educational
institutions in the state of Odisha received a grant-in-aid. However, the Odisha
government approved an order in 1994 known as the "Orissa (Non-Government
Colleges, Junior Colleges, and Higher Secondary Schools) Grant-in-aid Order."
This order is also referred to as the order of 1994.
Amendments to Section 7-C
of the Act were made in 1994, which stated that the State Government would set
aside a sum of money each year to be given to private educational institutions
in the State, and stated that no private educational institution that has not
been recognised by the State Government under this Act would be eligible for
financial assistance from the State Government.
Additionally, it was stated that
no grant aid would be paid to any private educational institution after the
start date of the Odisha Education (Amendment) Act, 1994, or paid to any post,
or any employee of any such institution, except as specified in that rule and
the grant aid would be payable from that date.
Only certain types of private
educational institutions are eligible for grant-in-aid consideration (such as
Upper Primary Schools, High Schools that offer instruction or courses for the
High Schools Certificate Examination administered by the Board of Secondary
Education, and Colleges that offer B.A., B.Sc., or B.Com. degrees).
Grant-in-aid recipients must set up a board of directors or management committee
and submit an application for funding within a certain timeframe. Furthermore,
it must be guaranteed that an institution has been operating on a regular basis
after receiving recognition from the Government and affiliation with the
relevant University or Council for five years or three years in an educationally
backward area.
According to paragraph 5 of Order 1994, an educational
institution must have run continuously; maintained accurate records of student
admissions and attendance; maintained accounts of receipts and expenditure and
acquittal rolls of salary; and paid teaching and non-teaching employees of the
institution other allowances.
The governing body of the educational institution
has been properly formed and authorized in accordance with applicable
regulations. The educational institution's governing body submitted an
application in the proper format, following the steps outlined in the Order. All
of the requirements have been met by the educational institution, and the
Director has suggested notifying the grant-in-aid agency for such an
institution.
It is necessary to update any notice designating the institution as
an Aided Educational Institution in the event of such a change. To get grant
assistance, a proposal must be made by the Governing Body to the Director, and
only those who are legitimately and legally appointed as well as qualified and
experienced will be eligible for receiving grant money, as stated in paragraph
16 of the Order of 1994.
With the government's budget in short supply, it was decided to revoke the Order
of 1994 and replace it with the Order of 2004 with effect from 5.2.2004, issued
in accordance with Section 7C(4) of the Act. The notion of a salary cost to be
granted to the institution of the staff under the Order of 1994 has been
replaced by a block grant, which shall be a set amount of grant-in-aid decided
by the taking into consideration pay and allowances as of 1.1.2004, rather than
a salary cost. Section 7-C(1) of the Act states that the amount of a block grant
is based on the government's economic capability, and it does not deal with the
salaries and allowances paid to any employee by the Governing Body.
According to
the Grants in Aid Order, 1994, a fixed sum of grant-in-aid shall be paid to the
private educational institutions to cover the salaries and allowances of the
teaching and non-teaching employees, as of the 1st day of January 2004, of the
educational institutions that became eligible for grant-in-aid by June 1, 1994.
However, this fixed sum shall not be determined by the determination of the
quantum of such block grant.
Even though the Grant-in-Aid Order, 1994 has been
repealed, private educational institutions that received grant-in-aid under that
order prior to the date of this order's commencement will continue to receive it
as if the repeal had not occurred. Grant-in-aid Order of 2008, announced on
7.1.2009, has been issued by the State Government again. The Order of 2004 has
been abolished, although with certain cost-saving measures in place.
The
institutions' qualifying requirements were somewhat tweaked. As required by this
order, the educational institution must have received recognition and
affiliation for each academic year for a continuous period of a minimum of 5
years in respect of educationally advanced districts and 3 years in respect of
educationally backward districts and a Women's Educational Institution without
any break or discontinuity from those periods.
The applications were filed by the employees in the State Education Tribunal
during 2011 and 2012, to claim release of grant-in-aid under the repealed Order
of 1994. The tribunal entertained the claim and granted the aid. Thereafter, the
state government appealed against the order of the State Education Tribunal.
Legal Issues:
- The question involved in the appeals is whether the employees are
entitled to claim grant-in-aid as admissible under the Orissa (Non- Government Colleges,
Junior Colleges, and Higher Secondary Schools) Grant-in-aid Order, 1994 ), after
its repeal in the year 2004?
- Whether the decision given by the Tribunal and the High court
sustainable?
- Whether the order passed by the Hon'ble High court in the case of Loknath
Behera vs the state of Orissa, is constitutionally valid?
Identification of parties
Appellants: State of Orissa v/s Respondents: Anup Kumar Senapati and other employees
Citation: (2019) 19 SCC 626
Summary of arguments advanced
Appellant
The appellant argued that the employees filed late applications to the Tribunal
in 2011 and 2012 seeking the release of grant-in-aid under the now-revoked Order
of 1994. The Order of 1994 stated that they were ineligible for grant money. The
grant-in-aid cannot be claimed as a matter of right. Grant-in-aid decisions are
influenced by a wide range of circumstances.
Employees failed to submit any
submissions or writ petitions or original applications until after the
applicable time period had passed. The High Court has adopted a variety of
positions in various instances.
However, in
Lokanath Behera v. the State of
Odisha [ii], a Division Bench of the High Court ruled that grant-in-aid could no
longer be claimed under the 1994 Order after its repeal, contrary to what the
High Court and the Tribunal had said in many challenged judgements and
decisions.
Respondents
As argued by counsel on behalf of employees, those who have worked for the
government for at least five years or three years are entitled to a grant-in-aid
under the Order of 1994, which was in effect at the time of the employee's
appointment. In another case from the year 2010, the Tribunal granted the
request.
Following this, writ petitions were filed on the basis of parity to
seek the same remedy, and representations were made in accordance with the High
Court's judgement, which the State Government improperly refused. As a result,
new applications were submitted to the Tribunal, and the same was granted.
The
ruling in Loknath Behera does not accurately put forth the law since once the
right to claim grant-in-aid has accrued and vested, it cannot be revoked, and
the rulings of the Tribunal and High Court awarding relief cannot be questioned.
The decision in Loknath Behera deserves to be struck down. Order of 1994 stated
that the workers were entitled to approval of their appointment and payment of
grant funding.
It is clear from the Order of 1994 that the government intends to
continue providing grant funding to educational institutions for a long time to
come. Candidates for the positions in question were selected and qualified using
the same process. In this case, after a time of qualifying, the grant-in-aid
should be released. It was announced on the 5th of July 2011, that the
recipients of a Block Grant will receive 40 percent of their grant money in
accordance with an Office of 2008 rule.
After then, the Tribunal heard cases. An
order denying a benefit because certain universities are situated in
educationally disadvantaged areas does not make sense. Both the Tribunal and the
High Court have given similar privileges to a significant number of
institutions.
Under the Order of 2008, which allows for 40 percent of Block
Grant when grant-in-aid is available under the Order of 1994 of pay, yearly
increments, dearness allowance, etc., which are not included in the Order of
2008, workers cannot be compelled to get less favourable treatment.
Decision
The Supreme Court upheld the decision of the High Court in the case of Loknath
Behera, stating that it is clear from paragraph 4 of the Order of 2004 that only
the right to receive the block grant is saved, and that if a grant in aid was
received on or before the repeal of the Order of 2004, it shall not be affected,
and the Order of 1994 shall continue only for that purpose, and no other rights
are saved.
Furthermore, the court determined that the orders issued by the Tribunal and the
High Court in favour of workers are not legally binding. As a result, the
appeals filed by the State of Orissa were accepted, while the appeals submitted
by workers were rejected.
Summary of judgment
When the Amendment Act of 1994 included section 7C, it was interpreted as
meaning that a grant in assistance is voluntary, and an application must be
submitted within the time limit set by an institution in order to receive it. If
you apply to the State Government, your request will not be automatically
granted. To obtain grant help from the State Government, the governing body of
the institution must apply for it during the current academic year, which means
that the State Government must make a budgetary allocation for that reason.
If a valid and adequate reason can be proven, then the Director may extend the
deadline for claiming grant-in-aid, otherwise, it cannot be claimed. This is
clearly stated in the Order of 1994. No automatic entitlement to grant
assistance accrues at the end of the 5-year or 3-year term, as the case may be,
regardless of the length of the period. The finest educational institution or
institutions to meet the needs of the region will be determined by the director.
Material on record shows no evidence to indicate that institutions applied for
financial aid on time and in accordance with an order issued in 1994 and that
the necessary information was provided. There aren't any records of this kind of
supporting documentation. Whatever the case, I'll take it. No ruling has been
issued to show that the institution's plea was denied as per the Order of the
Supreme Court.
It was too late to submit original applications or writs in the year 2011–12,
claiming the benefit of grant-in-aid under the 1994 Order, since the
grant-in-aid is yearly, based on the economic restrictions and financial
sustainability of the State Government. Accordingly, if employees/institutions
were interested in receiving a grant-in-aid under the Order of 1994, they should
have taken action within a reasonable time, as it is not a matter of right, but
rather depends on the annual budget and the fulfillment of various factors as
stated in its provisions.
As the court saw it, the request made under the Order
of 1994 to provide grant-in-aid after its repeal was misconceived and would not
be conceivable for any government with the economic ability to give grant-in-aid
retroactively. The institution's right to claim the grant-in-aid, if any, is
forfeited if it does not apply for it in a timely manner. They may decide not to
apply for the grant-in-aid since the government has attached various conditions
to it.
Since the Order of 1994 was repealed, original petitions made after the
repeal could not have been accepted, and the workers who filed applications
after the repeal of the Order of 1994 cannot claim any remedy since latches
slept over their rights, if any.
The next question which was taken up for consideration is concerning the effect
of the repeal of the Order of 1994, by the Order of 2004. After the repeal of
the 1994 order, paragraph 4(2) of the order of 2004 states the private
educational institutions that are now receiving grant assistance would continue
to do so as if the 1994 order hadn't been abolished, despite the order's repeal.
This means that a college that is currently receiving grant-in-aid for a
particular post will continue to do so under the Order of 1994; however, a
college that was not previously receiving grant-in-aid under the Order of 1994
is only eligible for a block grant under Paragraph 3(1) and thus is not eligible
to receive grant-in-aid under the Order of 1994.
That the institution will
continue to receive grant-in-aid for those positions which had been approved
before the repeal of Order 1994 is a restricted aim of the order's preservation,
as stated above. This law was also cited as a source by the court in its
decision. It is clear from the above explanation that a right that has been
gained or accrued is not impacted by the repeal of a legislation, but rather a
right that has been acquired or accrued.
Section 6 of the General Clauses Act [iii] grants some rights, but only if the
repealing Act expresses an opposite purpose. Whether or not Section 6 of the
General Clauses Act applies to a thoroughly stated repeal and saving clause
depends on what is being kept alive and what is being destroyed. Here, it is
clear that the 1994 Order does not provide an absolute right to anybody. For the
grant-in-aid to be issued or not, the inquiry was required.
After the removal of
the restrictions of the Order of 1994, it was just a matter of hope and
expectation that the grant in help would be released. The Order of 2004
repealing and preserving the Order of 1994 makes it plain that no such
entitlement is preserved if grant-in-aid was not received at the time of repeal,
as stated in paragraph 4 of the Order.
As a result of repealing the Order of
1994, it is not possible to claim the benefits of pending and/or still pending
applications under the Order of 1994. The grant was given on a yearly basis,
depending on the budget. A timely application is required.
The High Court in Loknath Behera correctly concluded that the Order of 1994
cannot be used to get grant funding since it was repealed. Justifiably, the High
Court referred to this Court's comments in
State of Uttar Pradesh and others v. Hirendra Pal Singh
[iv], and others, and others, respectively. repeal and
suspension of statutory provisions are unique from one another in that repeal
eliminates all of the law, while suspension just suspends a portion of it and
does not affect the rest of the law. When the legislation is abolished, it means
the end of it. It is held in limbo by a temporary suspension.
Critical analysis and viewpoint of the judgment
It is clear from the above-mentioned directives issued under Section 7-C of the
Act that the Government originally included full-cost pay requirements in the
Order of 1994. According to the Order of 2004, it was renamed to Block Grant.
Orders of 2008 and 2009 revised and clarified the parameters for calculating the
Block Grant, based on the financial capabilities of the State Government.
When
an Act is repealed, it must be treated as if it had never been in the first
place. For the purposes of Section 6 of 1897's General Clauses Act, 1897, the
Act is to be obliterated from the legislative records. Repeal is more than just
a formality; it has real meaning. As a result, when a law is repealed, the
provisions that preceded it are null and void, or "pro tanto" repealed.
Aside
from institutions receiving grant-in-aid or posts for which grant-in-aid was
being provided, it is clear that the requirements of Section 7C of the Act and
the Order of 1994 protect them. Posts are included in the institution's
definition. They can't be taken as a stand-alone text. Because of the repeal of
the 2004 order, it cannot be argued that the right to seek grant assistance had
been established, accumulated, or resolved at the time of the repeal.
It is for this reason that this Court should not interfere with the Tribunal's
decisions, which the High Court upheld and for which grants-in-aid were granted
in accordance with the Order of 1994. There was no question that there was a
wide range of views on the subject at hand. In my perspective, the court was
correct in finding that, under Article 14 of the Constitution, there is no idea
of negative equality[v]. When a person has a right, he or she must be treated
equally; but, when a person does not have a right, he or she cannot claim the
right to be treated equally since the right does not exist.
A citizen or court cannot enforce equality since it is a cliche that cannot be
asserted illegally. Persons or groups of individuals cannot use the authority of
the higher or superior court to repeat or multiply the same irregularity or
illegality, or to pass a similarly erroneous ruling if it has already been
committed in favour of an individual or group of individuals.
Even if an
incorrect order or decision favours one party, no other party has the right to
profit from that improper choice. Even if Article 14 were to be carried too far,
it would render the administration's ability to carry out its duties
impossible[vi].
If a wrong has been done in the past, it cannot be repeated in the future. It's
impossible to claim equality illegally, hence it can't be enforced negatively by
a citizen or court. Persons or groups of individuals cannot use the authority of
the higher or superior court to repeat or multiply the same irregularity or
illegality, or to pass a similarly erroneous ruling if it has already been
committed in favour of an individual or group of individuals.
Any other party
cannot claim advantages because of an incorrect order or judgement in favour of
one party. Even if this were not the case, Article 14 could not be pushed too
far since doing so would render the administration ineffective.
End-Notes:
- The Orissa Education Act, 1969 (IND)
- Lokanath Behera v. the State of Odisha 2020 SCC OnLine Ori 683
- General Clauses Act, 1897 (IND)
- State of Uttar Pradesh and others v. Hirendra Pal Singh (2011) 5 SCC 305
- D.S. Laungia v. State of Punjab, AIR 1993 P&H 54
- Chandigarh Admn. v. Jagjit Singh, (1995) 1 SCC 745
Please Drop Your Comments