{"id":86429,"date":"2007-03-19T00:00:00","date_gmt":"2007-03-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/pocker-sahib-memorial-orphanage-vs-the-government-of-kerala-on-19-march-2007"},"modified":"2017-09-20T21:50:18","modified_gmt":"2017-09-20T16:20:18","slug":"pocker-sahib-memorial-orphanage-vs-the-government-of-kerala-on-19-march-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/pocker-sahib-memorial-orphanage-vs-the-government-of-kerala-on-19-march-2007","title":{"rendered":"Pocker Sahib Memorial Orphanage vs The Government Of Kerala on 19 March, 2007"},"content":{"rendered":"
Kerala High Court<\/div>\n
Pocker Sahib Memorial Orphanage vs The Government Of Kerala on 19 March, 2007<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C) No. 20124 of 2005(U)\n\n\n1. POCKER SAHIB MEMORIAL ORPHANAGE\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. THE GOVERNMENT OF KERALA, REP. BY\n                       ...       Respondent\n\n2. THE DIRECTOR OF COLLEGIATE EDUCATION,\n\n3. THE DEPUTY DIRECTOR OF COLLEGIATE\n\n                For Petitioner  :SRI.V.M.KURIAN\n\n                For Respondent  :GOVERNMENT PLEADER\n\nThe Hon'ble MR. Justice A.K.BASHEER\n\n Dated :19\/03\/2007\n\n O R D E R\n                           A.K. BASHEER, J.\n\n                         --------------------------\n\n     W.P.(C).  NOS. 20124, 28031, 31070 OF 2005 &\n\n                             9876 OF 2006\n\n                            ---------------------\n\n\n              Dated this the 19th day of March, 2007\n\n\n                            J U D G M E N T\n<\/pre>\n
      The core issue, which has come up for consideration in<\/p>\n
these writ petitions is whether the Government is justified in<\/p>\n
directing   the   Private   Aided   Colleges   to   transfer   the<\/p>\n
accumulated funds in P.D. Accounts in the name of Principal<\/p>\n
of such colleges to the Government account.  By Circular dt.<\/p>\n
April   20,   2005,   a   copy   of   which   is   available   on   record   as<\/p>\n
Ext.P6 in W.P.(C)  No.20124\/05, and by letter dt. September<\/p>\n
20, 2005, a copy of which is available on record as Ext.P13<\/p>\n
in   W.P.(C)   No.9876\/06,   it   was   ordered   by   the   Director   of<\/p>\n
Collegiate Education that all amounts lying in such accounts<\/p>\n
in the name of Principal of the institutions till the last date of<\/p>\n
the   previous   academic   year   shall   be   transferred   to   the<\/p>\n
Government Account. The said orders are under challenge in<\/p>\n
these   writ   petitions,   which   are   at   the   instance   of<\/p>\n
management and heads of such aided institutions.<\/p>\n
WPC NO.21124\/05 & Conn. Cases        2<\/p>\n
      2.     A   brief   reference   to   the   essential   facts   may   be<\/p>\n
necessary   to   consider   the   question   whether   the   above<\/p>\n
circular   and   letter   issued   by   the   Director   of   Collegiate<\/p>\n
Education are legally valid and unsustainable.<\/p>\n
       3.   It is  not in dispute that  the Government  of Kerala<\/p>\n
had entered  into separate  individual agreements, known  as<\/p>\n
Direct   Payment   Agreement,   with   the   managements   of<\/p>\n
various aided colleges in the State.  As regards the collection<\/p>\n
of   fee,   the   following   clauses   were   incorporated   in   the<\/p>\n
agreements.   Ext.P1   is   stated   to   be   one   such   agreement<\/p>\n
entered into between the Government and the management<\/p>\n
of aided college in Malappuram district.  Since the clauses in<\/p>\n
all   the   agreements   are   identical,   the   following   clauses   in<\/p>\n
Ext.P1 are being extracted hereunder for convenience.<\/p>\n
   “2 .   The Educational  Agency  shall  cause  to  collect<\/p>\n
      through   the   Principal   of   the   institution   on   or<\/p>\n
      before the date prescribed according to the rules<\/p>\n
      in   each   month   the   tuition   fees   prescribed   and<\/p>\n
      fines imposed on the students and remit all such<\/p>\n
      amounts   to   the   credit   of   the   Government   in   the<\/p>\n
      Treasury   at   Tirur   in   such   manner   as   may   be<\/p>\n
      prescribed by the Government from time to time.<\/p>\n
      The amounts collected on a day shall be remitted<\/p>\n
WPC NO.21124\/05 & Conn. Cases         3<\/p>\n
      in   the   said   Treasury   within   the   next   4   working<\/p>\n
      days.\n<\/p>\n<\/p>\n
     3.    The   Educational   Agency   shall   cause   to   collect<\/p>\n
      from the students such special fees at such rates<\/p>\n
      as may be prescribed by the University from time<\/p>\n
      to time.\n<\/p>\n<\/p>\n
     4.           (i)   The   Educational   Agency   shall   cause   to<\/p>\n
      remit   all   fee   collections   other   than   those<\/p>\n
      mentioned  in  clauses  1 and 2 in the Treasury  at<\/p>\n
      Tirur   in   a   separate   account   opened   in   the   name<\/p>\n
      of   the   Principal   of   the   Institution.            Such<\/p>\n
      remittance   shall   be   made   within   the   next   four<\/p>\n
      working days after collection.   The Principal shall<\/p>\n
      be   competent   to   draw   money   from   this   account<\/p>\n
      and incur necessary expenditure on the items for<\/p>\n
      which such fees were collected.\n<\/p>\n<\/p>\n
               (ii) The  special  fee collected  for a  purpose<\/p>\n
      shall be utlised only for the purpose for which it is<\/p>\n
      intended and for no other purpose.\n<\/p>\n<\/p>\n
               (iii)   The   special   fee   collected   from   the<\/p>\n
      students   of   a   college   under   the   Educational<\/p>\n
      Agency   shall   be   utilised   only   for   the   purpose   of<\/p>\n
      that college and not for the purpose of any other<\/p>\n
      college.\n<\/p>\n<\/p>\n
     5.   No fees other than those authorised under this<\/p>\n
      agreement shall be collected from the students of<\/p>\n
      the Institution.”\n<\/p>\n<\/p>\n
       4.   It is pertinent to note that the Educational Agency<\/p>\n
has   been   given   liberty   to   collect   special   fee   from   the<\/p>\n
WPC NO.21124\/05 & Conn. Cases         4<\/p>\n
students   at   such   rates   that   may   be   prescribed   by   the<\/p>\n
University   from   time   to   time.     The   special   fee   collected   by<\/p>\n
the institution has to be remitted in a separate account to be<\/p>\n
opened   in   the   name   of   the   Principal   of   the   institution.<\/p>\n
Clause  4(1) stipulates that the Principal  shall  be competent<\/p>\n
“to   draw     money   from   this   account  and   incur   necessary<\/p>\n
expenditure   on   the   items   for   which   such   fees   were<\/p>\n
collected” (Emphasis supplied).   It is further provided in the<\/p>\n
agreement that “the special fee collected for a purpose shall<\/p>\n
be utilised only for the purpose for which it is intended and<\/p>\n
for no other purpose” and that the special fee collected from<\/p>\n
the students of a college under the Educational Agency shall<\/p>\n
be “utilised only for the purpose of that college and not for<\/p>\n
the purpose of any other college.”\n<\/p>\n<\/p>\n
        5.  It appears that certain modifications were made in<\/p>\n
the   matter   of   collection   of   registration   fees,   between   the<\/p>\n
Government   and   the   managements   with   which   we   are   not<\/p>\n
concerned at this stage.\n<\/p>\n<\/p>\n
        6.     As   mentioned   earlier,   the   Director   of   Collegiate<\/p>\n
WPC NO.21124\/05 & Conn. Cases        5<\/p>\n
Education issued Ext.P6 circular and Ext.P13 letter directing<\/p>\n
all Deputy Directors and Principals of Colleges to transfer the<\/p>\n
accumulated funds lying to the credit of the Principals of the<\/p>\n
institutions   in  their  respective  personal   deposit  accounts  to<\/p>\n
the Government fund.\n<\/p>\n<\/p>\n
        7. In the counter affidavit reference has been made to<\/p>\n
Article   282.5(D)   of   Kerala   Financial   Code   Vol.I.   It   is<\/p>\n
contended   that   in   terms   of   the   above   article,   the<\/p>\n
accumulated   unspent   balance   has   to   be   refunded   to<\/p>\n
Government   Account.     It   is   further   contended   that   the<\/p>\n
Government   is   spending   crores   of   rupees   for   running   the<\/p>\n
aided   private   colleges   in   the   State.            Moreover,   the<\/p>\n
management’s   major   portion   of   the   fee   collected   from   the<\/p>\n
students   can   also   be   spend   for   the   college.     However,<\/p>\n
University Grants Commission’s fund also were provided for<\/p>\n
financial help to the colleges for infra structural facilities.   It<\/p>\n
is   the   case   of   the   respondents   that   the   Circular   does   not<\/p>\n
impose any restrictions on the Educational Agencies in using<\/p>\n
the   current   collections.     What   has   been   taken   away   is   the<\/p>\n
WPC NO.21124\/05 & Conn. Cases        6<\/p>\n
right to utilise the accumulated funds till March 2005.   I am<\/p>\n
afraid   the   above   unilateral   view   taken   by   the   Government<\/p>\n
cannot be justified.\n<\/p>\n<\/p>\n
        8.  As mentioned earlier, the Government had entered<\/p>\n
into   individual   agreements   with   the   management   of   aided<\/p>\n
colleges.     The   Clauses   contained   in   the   agreement   will<\/p>\n
have to be respected by both sides.   The Government could<\/p>\n
not   have   unilaterally   issued   a   direction   to   the   Director   of<\/p>\n
collegiate   education   to   issue   a   circular   appropriating   the<\/p>\n
accumulated funds to its fund without affording opportunity<\/p>\n
to   the   management   concerned   to   be   heard.   Therefore,<\/p>\n
Ext.P6   circular   shall   not   be   enforced   or   implemented   till   a<\/p>\n
final   decision   is   taken   by   the   Government   of   course,   after<\/p>\n
holding   discussions   with   all   the   respective   managements.<\/p>\n
Till   such   time   a   decision   is   taken   and   appropriate   new<\/p>\n
clauses are incorporated in the agreement in modification of<\/p>\n
the existing ones, the directions contained in Ext.P6 shall be<\/p>\n
kept in abeyance.\n<\/p>\n<\/p>\n
        9.     Learned   counsel   for   the   petitioner   in   W.P.C.   No.<\/p>\n
WPC NO.21124\/05 & Conn. Cases           7<\/span><\/p>\n
20124\/05 has invited my attention to the judgment rendered<\/p>\n
by   a   Division   Bench   of   this   Court   in   W.A.   No.380\/06.     It   is<\/p>\n
true that the Division Bench had confirmed the judgment of<\/p>\n
the   learned   Single   Judge   against   which   the   above   appeal<\/p>\n
was preferred.  The issue in that case related to registration<\/p>\n
fee collected by aided colleges.  It appears that the said fee<\/p>\n
is to be remitted to the treasury in a specified account.  The<\/p>\n
Deputy Director of Education on receipt of instructions from<\/p>\n
the  Directorate  had ordered  that  the accumulated amounts<\/p>\n
of registration fee lying to the credit of the personal deposit<\/p>\n
account of the Principal of the colleges be transferred to the<\/p>\n
Government   fund.     The   learned   Single   Judge   took   the  view<\/p>\n
that   such   a   decision   could   not   have   been   taken   by   the<\/p>\n
Government in view of the agreement executed between the<\/p>\n
Government   and   the   management.     The   learned   Single<\/p>\n
Judge was particularly  referring  to the retrospectivity of the<\/p>\n
above   order   issued   by   the   Directorate.     The   learned   Single<\/p>\n
Judge   held   that   the   Government   was   not   justified   in   giving<\/p>\n
retrospectivity  to  the above  order.    The said  view  taken  by<\/p>\n
WPC NO.21124\/05 & Conn. Cases        8<\/p>\n
the learned Single Judge was affirmed by the Division Bench<\/p>\n
in writ appeal mentioned above.\n<\/p>\n<\/p>\n
        10.   It is true that the Division Bench had referred to<\/p>\n
special fees in the judgment.  Obviously, this appears to be a<\/p>\n
mistake   because,   registration   fee   was   only   one   of   the<\/p>\n
components of special fee and what the leaned Single Judge<\/p>\n
dealt with was only the transfer of accumulated registration<\/p>\n
fees.   Anyhow, for the reasons stated in the judgment, I am<\/p>\n
satisfied that the decision rendered by the Division Bench in<\/p>\n
the   Writ   Appeal   mentioned   above   may   not   have   any<\/p>\n
application in the facts of this case.  Similarly, the petitioner<\/p>\n
in   W.P.C.   No.   9876\/06   has   produced   Ext.P13   in   addition   to<\/p>\n
Ext.P6 which is a subsequent order issued by the Secretary<\/p>\n
in the Department of Higher Secondary education.<\/p>\n
        In   the   above   facts   and   circumstances,   these   writ<\/p>\n
petitions   are   disposed   of   with   a   direction   that   before<\/p>\n
enforcing   Ext.P6   circular   the   Government   shall   hold<\/p>\n
discussions   with   the   respective   managements   and   take   a<\/p>\n
decision   in   the   matter   with   regard   to   the   transfer   of   the<\/p>\n
WPC NO.21124\/05 & Conn. Cases          9<\/span><\/p>\n
accumulated   funds   lying   to   the   credit   of   the   Principals   of<\/p>\n
various   aided   colleges   with   whom   the   Government   has<\/p>\n
entered   into  separate   agreements.    If   the   Government   and<\/p>\n
the   respective   managements   agree   upon   the   appropriation<\/p>\n
of   the   accumulated   funds,   it   will   be   open   to   the   parties   to<\/p>\n
incorporate such a clause in the addenda of the agreement,<\/p>\n
which may be executed between the parties.   Till such time<\/p>\n
a   decision   is   taken   in   the   matter,   Ext.P6   shall   not   be<\/p>\n
enforced.     The   Government   shall   take   a   decision   in   the<\/p>\n
matter   as   expeditiously   as   possible,   at   any   rate,   within   a<\/p>\n
period of three months from the date of receipt of a copy of<\/p>\n
this judgment.<\/p>\n
\n\n\n\n\n                                                 A.K. BASHEER, JUDGE\n\nvps\n\n\nWPC NO.21124\/05 & Conn. Cases    10\n\n\n\n\n\n                                       KURIAN JOSEPH, JUDGE\n\n\n\n\n                                                     OP NO.\n\n\n\n\n\n                                                  JUDGMENT\n\n\n\n\n                                        21st  DECEMBER, 2006\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court Pocker Sahib Memorial Orphanage vs The Government Of Kerala on 19 March, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C) No. 20124 of 2005(U) 1. POCKER SAHIB MEMORIAL ORPHANAGE … Petitioner Vs 1. THE GOVERNMENT OF KERALA, REP. BY … Respondent 2. THE DIRECTOR OF COLLEGIATE EDUCATION, 3. THE DEPUTY […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-86429","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nPocker Sahib Memorial Orphanage vs The Government Of Kerala on 19 March, 2007 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/pocker-sahib-memorial-orphanage-vs-the-government-of-kerala-on-19-march-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pocker Sahib Memorial Orphanage vs The Government Of Kerala on 19 March, 2007 - 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