Madras High Court
Sagayathottam Institute Of ... vs Government Of Tamil Nadu By Its ... on 13 March, 2003
Author: P. Sathasivam
Bench: P. Sathasivam
ORDER P. Sathasivam, J.
1. Aggrieved by the letter No. 69285/AU/92-7 dated 8-6-1992 of the first respondent, as confirmed in the subsequent letter Ms. No. 50, Agriculture dated 11-8-93, directing the petitioner Institution to create an endowment fund to the tune of Rs.10 lakhs, the petitioner has filed the above writ petition to quash those letters on various grounds.
2. The case of the petitioner is briefly stated hereunder:
The petitioner Institute, then agricultural training school was started by Salesian Society of Don Bosco in its farm in 1958 at Uriyur Kuppam village, Takkolam Post, then North Arcot District, imparting two years training of Maistry course to the young farmers, with the sanction and approval of then Government of Madras, first respondent herein in G.O.Ms. No. 2917 dated 21-8-58 under certain terms and conditions. It is a self financing institute and no aid from the Government was granted. It never contemplated creation of any endowment, much less for 10 lakhs. The services of this institute, then school of agriculture were recognised and the first respondent-Government of Tamil Nadu, accorded sanction of two years course of Certificate by its G.O.Ms. No. 1585 Agriculture dated 4-9-85. Even then, no endowment was insisted upon. Later, this course of certificate was converted into 2 years of diploma course, commencing from academic year 1987-88 and was affiliated to the Tamil Nadu Agriculture University, Coimbatore by its proceedings dated 31-7-87. Even then, no endowment was insisted upon. By G.O.Ms. No. 2007 dated 18-10-1983, the department of Education, Science and Technology, Government of Tamil Nadu has fixed creation of endowment for 10 lakhs as condition precedent for sanction of starting of new private polytechnics. The 2nd respondent by his letter dated 8-6-91, wanted the opinion of the petitioner institution about creation of endowment fund. The petitioner Institute opposed such creation. The 2nd respondent recommended for granting exemption from creation of endowment. However, on the basis of the said Government Order, the first respondent in the impugned letter dated 8-6-92, has rejected the recommendation of the 2nd respondent for exemption as far as the petitioner Institution only and directed the 2nd respondent to secure creation of endowment. Therefore, the petitioner made further representation to the Government and the same was rejected by the first respondent by the subsequent letter No. Ms.50 dated 11-8-93; hence the present writ petition.
3. On behalf of the respondents 1 and 2, Joint Secretary to the Government, Agriculture Department, Chennai-9 has filed a counter affidavit wherein it is stated that the Government have imposed condition for creation of Endowment fund for the private Polytechnics with a view to avoid mushroom growth of mismanaged private Institutions on business motive in G.O.Ms. No. 2007, Education Department, dated 18-10-1983. While granting recognition to Al-Ameen Institute of Agriculture and Rural Development, Kadayanallur, the Government had stipulated that an amount of Rs.10 lakhs be deposited as Endowment fund in one lumpsum or in installments. Further, as a regulatory measure and to have uniformity in all the Agricultural Institutes run by minority communities, the Government decided that Sagayathottam Institute of Agriculture and Rural Development should also create an Endowment fund to the tune of Rs.10/- lakhs and orders requiring Sagayathottam Institute of Agriculture and Rural Development to create an endowment fund of Rs.10 lakhs either in one lumpsum or in 5 monthly installments of Rs.2 lakhs each was issued by the Government letter No. 69285/AU/92-7 dated 8-6-92. The representation of the petitioner Institution and further representation as well as the appeal were rejected by the Government. As a regulatory measure and to have uniformity in all the Agricultural Institutes run by minority communities, it was decided that Sagayathottam Institute of Agriculture and Rural Development, which is a minority Christian Institution should also create an endowment fund of Rs.10 lakhs. Ramakrishna Mission Vidyalaya, Coimbatore, which is also conducting two year diploma course in agriculture, is not a minority institution and it is a Government aided institution and hence it is considered not necessary to demand endowment fund from the Institute. There has been no discrimination as claimed by the petitioner Institute.
4. Heard the learned counsel for the petitioner as well as respondents.
5. The only point for consideration in this writ petition is, whether the petitioner Institute is liable to create an endowment fund to the tune of Rs.10 lakhs as claimed by respondents 1 and 2?
6. It is seen from the particulars furnished in the affidavit that the petitioner Institution was granted sanction and approval by the then Government of Madras in G.O.Ms. No. 2917 dated 21-8-1958 on certain terms and conditions as to admission of boys, syllabus for agricultural education, as prescribed by the 2nd respondent. It is the case of the petitioner that their institution was a self-financing one and they are not getting aid from the Government. It is further seen that in G.O.Ms. No. 1585 Agriculture dated 4-9-85, the first respondent-Government of Tamil Nadu accorded sanction of two years course of Certificate to the petitioner Institution. It is further seen that while such sanction and approval was accorded in the year 1985, no endowment was insisted upon. Only by G.O.Ms. No. 2007 dated 18-10-1983, the Department of Education, Science and Technology, Government of Tamil Nadu, first respondent herein has fixed creation of endowment for Rs.10 lakhs, as condition precedent for sanction of starting of new private Polytechnics. The said Government Order finds a place at page 3 of the typed-set of papers. It is seen from the said order that any private management who intends to start a new private Polytechnic on self-financing basis, the management should provide an endowment fund to the tune of Rs.10 lakhs in cash, jointly in the name of a trust formed for the purpose, and in the name of the Director of Technical Education. The endowment fund of Rs.10 lakhs can be created either in one lumpsum, before starting of the polytechnic or in four installments. The money may be invested in a Nationalized Bank or in a Government Undertaking and the income from the endowment fund should be utilised fully to meet the recurring and non-recurring expenditure of the Institution without insisting any aid from the Government for any purpose at any time, now or in future. As rightly pointed out, first of all, the said Government Order is applicable to those who desire to start a new private Polytechnic. I have already referred to the fact that the petitioner Institution was granted permission to impart 2 years training Maistry course to the young farmers and the same was sanctioned and approved by the first respondent in G.O.Ms. No. 2917 dated 21-8-1958. At that time, no endowment was insisted upon. Subsequently, the Government of Tamil Nadu also accorded sanction of two years course of certificate in G.O.Ms. No. 1585 Agriculture dated 4-9-85. Even then no endowment was insisted upon. The said Government Orders show that the petitioner Institution was initially started in 1958 for imparting two years training course and subsequently 2 years course of certificate in 1985 with the approval and sanction of the first respondent Government. Further, the said Institution is not a Polytechnic as claimed by the respondents 1 and 2.
7. It is also relevant to refer the communication of the Director of Technical Education in letter No. 78410/G1/85 dated 3-5-89 wherein they informed the petitioner Institute as well as 19 other Institutions that the Government Order creation of endowment fund for Rs.10 lakhs is not applicable to the institutions which were started prior to 3-3-78. The relevant portion from the said letter is reproduced hereunder:
"From The Director of Technical Education, Madras-25.
To The Principals of
1. xx xx
2. xx xx Lr. No. 78410/61/85 dated 3-5-89.
Sir, Sub: Technical Education- Establishment of Aided polytechnic-creation of Endowment - Regarding.
Ref: 1. This Office letter No. 78410/ 61/85 dated 25-11-88.
2. G.O.Ms. No. 419 Education Department dt. 19-4-89.
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In the letter first cited, you were requested to create an endowment of Rs.5.00 lakhs in cash in the Joint account of the Director of Technical Education and the management before 31-12-1988 based on Government's earlier direction.
The Government have in their G.O. second cited clarified that such creation of cash endowments is only for those polytechnics started after 3-3-78 and not for those Polytechnics started before 3-3-78.
In the light of the Government's above clarifications, the letter first cited may be treated as withdrawn.
Sd/-.xx xx xx For Director of Technical Education."
It is clear from the above correspondence that the Government in G.O.Ms. No. 419 dated 19-4-89 clarified that such creation of cash endowment is only for those Polytechnics started after 3-3-78 and not for those Polytechnics started before 3-3-78. I am satisfied that the Government failed to take note of the relevant fact that the petitioner Institution was started in 1958 and the same was recognized and approved by the Government as well as the Director/Commissioner of Agriculture. Further, G.O.Ms. No. 2007 dated 18-10-83 is applicable only for new private Polytechnics. Further, the communication of the Director of Technical Education dated 3-5-89 strengthens the case of the petitioner. All these aspects have not been considered by the Government. Accordingly the condition, namely, creation of endowment as provided in G.O.Ms. No. 2007 dated 18-10-1983 is not applicable to the petitioner Institution.
8. In the light of what is stated above, the impugned Government letter dated 8-6-1992, as confirmed in the subsequent Government letter dated 11-8-93 are quashed and the Writ Petition is allowed. No costs.