Shri P.A. Inamdar And Ors.

vs State Of

Maharashtra And Ors

[AIR (2005) SC3226]

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PART –1

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 FACTS OF THE CASE

Upon the constitution of the Samiti, the Petitioners filed appeals in order to
press their claim for the enhancement of the management quota to cover all the
admissions at these institutions. On 19th August 2004, the Samiti maintained the
quota for the Academic Year 2004-05 since the admissions process had reached an
advanced stage, reserving liberty to the institutions to apply for an enhancement of
the quota during the next Academic Year. Accordingly, appeals were filed on 30th
November 2004 in order to challenge the Government Resolution of 16th February
2004. On 19th March 2005, the Samiti rejected appeals filed by the Institutions and
reiterated that the management quota for the Academic Year 2005-06 shall continue
to remain at 50%. The Samiti was of the view that since the issue was pending
before a Bench of seven Learned Judges of the Supreme Court, it should not
intervene at that stage. Subsequently, on 25th April 2005, the Samiti decided to have
a fresh look at the management quota for minority institutions and allowed the
institutions to submit data regarding (i) the number of seats or the strength of
admissions during the previous two years; (ii) the number of applications received;
(iii) the number of admissions granted; (iv) allotment of students received from the
Government; and (v) information in respect of local needs. The Petitioners thereupon
submitted by a letter dated 27th April 2005, data reflecting the seats which were filled
up against the management quota during the Academic Years 2003-04 and 2004-05,
the names of candidates who had applied for admissions and the candidates who
could not be eventually admitted. This data was submitted to the Samiti in support of
the contention of the Petitioners that the management quota was inadequate to meet
the needs and requirements of these minority institutions and the religious minorities
concerned. By a decision arrived at on 10th June 2005, the Samiti declined to revise
the quota and maintained the management quota at 50% for minority institutions.

The submission which has been urged in support of these petitions is that the
Samiti has furnished no reason whatsoever for declining to accede to the request
made by the managements for the enhancement of the management quota. It has

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been submitted that though data was produced by all the three institutions,
demonstrating that the quota which had been allowed was inadequate to meet the
needs of the institutions and of the Muslim minorities, leaving out in the process a
number of unaccepted applicants, the Committee has not applied its mind to the data
produced before it on the record. Moreover, it was urged that the committee has not
had regard to the principles which were laid down by the Supreme Court in its
decisions in T. M. A. Pai Foundation (supra) and in Islamic Academy of Education

In T. M. A. Pai Foundation v State of Karnataka, (supra) the Supreme Court

held that unaided professional institutions are entitled to autonomy in their
administration but, at the same time, they must not forgo or discard the principle of
merit. The Supreme Court held that it was open to the University or Government
while granting recognition to require a private unaided institution to provide for
meritbased selection while giving the management a sufficient discretion in admitting
students. For instance, a certain percentage of the seats can be reserved for
admission by the management out of those students who have passed the Common
Entrance Test held by itself or by the State or University and have applied to the
college concerned for admission while the rest of the seats may be filled up on the
basis of counseling by the State agency. The Court held that the prescription of
percentage for this purpose has to be done by Government according to local needs
and different percentages can be fixed for minority unaided and non-minority
unaided and professional colleges.

ISSUES

"Q.1. What is the meaning and content of the expression "minorities" in Article 30 of
the Constitution of India?

Q.2. What is meant by the expression "religion" in Article 30(1)? Can the followers of
a sect or denomination of a particular religion claim protection under Article 30(1) on
the basis that they constitute a minority in the State, even though the followers of
that religion are in majority in that State?

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Q.3 (a) What are the indicia for treating an educational institution as a minority
educational institution? Would an institution be regarded as a minority educational
institution because it was established by a person(s) belonging to a religious or
linguistic minority or its being administered by a person(s) belonging to a religious or
linguistic minority?

Q.3(b) To what extent can professional education be treated as a matter coming

under minorities' rights under Article 30?

"Q.4. Whether the admission of students to minority educational institution, whether

aided or unaided can be regulated by the State Government or by the university to
which the institution is affiliated?"

PROVISION OF LAW

Article 30 in The Constitution Of India 1949

30. Right of minorities to establish and administer educational institutions

(1) All minorities, whether based on religion or language, shall have the right to
establish and administer educational institutions of their choice

(1A) In making any law providing for the compulsory acquisition of any property of an
educational institution established and administered by a minority, referred to in
clause ( 1 ), the State shall ensure that the amount fixed by or determined under
such law for the acquisition of such property is such as would not restrict or abrogate
the right guaranteed under that clause

(2) The state shall not, in granting aid to educational institutions, discriminate against
any educational institution on the ground that it is under the management of a
minority, whether based on religion or language

Article 19(1)(g) in The Constitution Of India 1949

(g) to practise any profession, or to carry on any occupation, trade or business

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Article 26 in The Constitution Of India 1949

26. Freedom to manage religious affairs Subject to public order, morality and health,
every religious denomination or any section thereof shall have the right

(a) to establish and maintain institutions for religious and charitable purposes;

(b) to manage its own affairs in matters of religion;

(c) to own and acquire movable and immovable property; and

(d) to administer such property in accordance with law

Article 29(2) in The Constitution Of India 1949

(2) No citizen shall be denied admission into any educational institution maintained
by the State or receiving aid out of State funds on grounds only of religion, race,
caste, language or any of them

Article 19(6) in The Constitution Of India 1949

(6) Nothing in sub clause (g) of the said clause shall affect the operation of any
existing law in so far as it imposes, or prevent 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 sub 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 prevent 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) the carrying on by the State, or by a corporation owned or controlled by the State,
of any trade, business, industry or service, whether to the exclusion, complete or
partial, of citizens or otherwise

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 ARGUMENT BY PETITIONER

On behalf of the petitioners/applicants it was also submitted that fixation of

percentages of seats that could be filled, in title unaided professional colleges both
minority and non minority by the management, an done by various State
Governments, was impermissible. It is further submitted that the private, unaided
professional educational institutions, had been given complete autonomy not only as
regards the admission of students but also as regards the termination of their own
fee structure. If was submitted that these institutions could fix their own fee structure,
which could include a reasonable revenue surplus for purposes of development of
education and expansion of the institution, and that so long as there was no
profiteering or charging of capitation fees, there could be no interference by the
Government. It was submitted that the right to admit students is an essential facet of
the right to administer, and so long as admission to the unaided educational
institutions is on a fair and transparent basis and on the basis of merit, government
cannot interfere.

It was submitted that these institutions are entitled to fill up all their seats by
adopting/evolving a rational and transparent method of admission which ensures that
merit is adequately taken care of. It was submitted that in any event the institutions
should be given a choice and be allowed to admit students on basis of the ICSC or
SSC or other such examination. It was also suggested that educational institutions of
a particular type may be permitted to associate themselves for the purposes of
holding a common entrance test in each State. On behalf of minority institutions, it
was submitted that they are entitled to fill up ail the seats with students of their own
community/language. On behalf of non-minority institutions, it was submitted that
they also had a fundamental right to establish and administer educational institutions

and that the majority Judgment puts them on a par with the minority institutes .

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 While deciding upon this issue, the Supreme Court held that the right to admit
students being an essential facet of the right of religious and linguistic minorities to
administer educational institutions of their choice under Article 30 of the Constitution,
the State Government or the University may not be entitled to interfere with that right
so long as admissions to unaided educational institutions are on a transparent basis
and merit is adequately taken care of. The Supreme Court held that even an aided
minority institution does not cease to be a minority institution upon the receipt of aid
and it would be entitled to admit students belonging to its own minority while at the
same time being required to admit a reasonable extent of non-minority students.
What would constitute a reasonable extent would vary, having regard to the type of
the institution, the course of education for which admission is sought and other
factors like educational needs.

The judgment of the Supreme Court in T. M. A. Pai Foundation was

thereafter, considered in the subsequent decision of the Constitution Bench
in Islamic Academy of Education v. State of Karnataka, (2003) 6 SCC 697. The
Supreme Court held that the observation in para 68 of the majority judgment in T. M.
A. Pai Foundation made it clear that the same yardstick cannot be applied to minority
and non-minority professional colleges. The Court noted that in the case of non-
minority professional colleges, a "certain percentage of seats" can be reserved for
admission by the management. However, in the case of minority run professional
institutions, the expression "different percentage" had been used. The two
expressions did not have the same connotation. The Supreme Court held thus:

"The expression "different percentage for minority professional institutions"

carries a different meaning than the expression "certain percentage for unaided
professional colleges". In fixing the percentage for unaided minority professional
colleges the State must keep in mind, apart from local needs, the interest/need of
that community in the State. The need of that community, in the State, would be
paramount vis-a-vis the local needs.

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 ARGUMENT BY RESPONDENT

As against this, on State Governments and some students, who sought to

intervene, it was submitted that the right to set up and administer an educational
institution was not an absolute right, and this right is subject to reasonable
restrictions and that this right is subject (even in respect of minority institutions) to
national interest. It was submitted that imparting education was a State function but,
due to resources crunch, the States were not in a position to establish sufficient
number of educational institutions. It was submitted that, because of such resources
crunch, the States were permitting private educational institutions to perform State
functions. It was submitted that the Union of India, the States, Universities had
statutory rights to fix the fees and to regulate admission of students in order to
ensure (a) that there was no profiteering; (b) capitation fees were not charged; (c)
admissions were based on principles of merit and (d) to ensure that persons from the
backward classes and poorer sections of society also had an opportunity to receive
education, particularly, professional education. It was submitted that if these
educational institutions were permitted to have their own tests for admission, the
students would be put to undue harassment and hardship inasmuch as they would
have to pay for application forms in various colleges and appear for tests in various
colleges. It was pointed out that even if each institution charged Rs. 500 to Rs. 1000
a student would ultimately have to pay a large amount by way of application fees as,
in the absence of a common entrance test and admission procedure the students
would have to apply to a number of colleges.

It is submitted that the students would also have to spend for transport from
and to each college and may find it difficult, if not impossible to travel from one
college to another, to appear in all the tests. It was submitted that unless it was
ensured that colleges admit students strictly on the basis of merit at a common
entrance test, it would be impossible to ensure that capitation fees were not charged
and that there was no profiteering. It was pointed out that some colleges do not even
issue admission forms unless and until the student agrees to pay a hefty sum. It was

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submitted that the majority Judgment clarified that Article 30 had been enacted not
for the purposes of giving any special right or privileges to the minority educational
institutions, but to ensure that the minorities had equal rights with the majority. It was
submitted that minority educational institutions cannot claim any higher or better
rights than those enjoyed by the non-minority educational institutions.

The attention of the Court has also been drawn to a subsequent order of the
Supreme Court dated 15th July 2004 in P.A. Inamdar and Ors. v. State of
Maharashtra and Ors. (SLP (Civil) No. 9932 of 2004 and connected matters). A
Bench of the Supreme Court consisting of Mrs.Justice Ruma Paul and Mr. Justice
Arun Kumar has observed that prima facie, the phrase "their need" in the decision in
Islamic Academy referred to the need of the institutions and not of the State.

We have adverted to these binding principles which have been laid down by
the Supreme Court since, it is on the basis of these principles that the prescription of
the management quota must be arrived at by the Pravesh Niyantran Samiti. The
Samiti has been set up in pursuance of the directions issued by the Supreme Court
in para 19 of its decision in Islamic Academy of Education. Para 19 of the judgment
contains the following observations which must govern the decision making process
of the Samiti:

"It is clarified that different percentage of quota for students to be admitted by

the management in each minority or nonminority unaided professional college(s)
shall be separately fixed on the basis of their need by the respective State
Governments and in case of any dispute as regards fixation of percentage of quota,
it will be open o the management to approach the Committee."

DECISION OF COURT[JUDGEMENT]

The petitions are accordingly disposed of. In the circumstances of the case, there
shall be no order as to costs.

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 REASON FOR THE DECISION

There is merit in the submission which has been urged on behalf of the Petitioners
that the Samiti having not furnished any indication of reasons in its decision should
be requested to reconsider its decision in the light of the principles of law which have
been laid down by the Supreme Court. Each of the institutions before the Court has
submitted data in support of its application for enhancement of the percentage in the
management quota. This data will have to be considered by the Samiti in the light of
the principles enunciated by the Supreme Court. We, therefore, request the Samiti to
reconsider the matter and in order to facilitate a fresh determination, we set aside the
impugned decision dated 10th June 2005. Having regard to the urgency of the
matter, we request the Samiti to expedite its decision. Since admissions have to be
completed at an early date, the Samiti is requested to render its decision by 19th
July 2005. In the meantime, having regard to the fact that the Supreme Court has on
15th July 2004 in its order passed in P.A. Inamdar and Ors. v. State of Maharashtra
and Ors. (SLP (Civil) No. 9932 of 2004 together with connected matters), allowed a
management quota of 75%, we direct the State of Maharashtra at the present stage
to fill up 25% of the total seats in the three institutions before the Court. The final
distribution of the quota shall abide by the order that may be passed by the Samiti on
reconsideration in the light of this judgment.

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PART 2

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 CRITICAL COMMENT

This case has very much importance in legal history as it was an

interpretation over state powers extent and minority rights .It is unfortunate that a
Constitution Bench had to be constituted for interpreting a 11-Judge Bench
judgment. Probably in judicial history of India, this has been done for the first time. It
is equally unfortunate that all of us cannot agree on all the points, despite the fact
that the matter involves construction of a judgment. In the name of interpretation we
have to some extent, however little it may be re-written the judgment. We have laid
down new laws and issued directions purported to be in terms of Article 142 of the
Constitution.

We have interpreted T.M.A. Pai; but we have also made endeavours to give
effect to it. In some areas it was possible; in some other it was not.We have refrained
ourselves from expressing any opinion at this stage as to whether grant of settlement
of Government land at a throw-away price or allowing the private institutions to avail
the facilities of Government hospitals would amount to grant of aid or not. We have
also not expressed any opinion on cross-subsidy.The supervisor courts in India exist
for interpretation of Constitution or interpretation of statutes. They cannot evolve a
fool-proof system on the basis of affidavits filed by the parties or upon hearing their
counsel. Certain details of vexing problems on the basis of the interpretation given
by this Court must be undertaken by the statutory bodies which have the requisite
expertise. It is expected that statutory bodies would be able to perform their duties
for which they have been established. The doors of the Court should not be knocked
every time, if a problem arises in implementation of the judgment, however slight it
may be.

The court has its own limitations. The problems which can be sorted at the
ground level by holding consultations should not be allowed to be brought to the
Court. It is, in that view of the matter, we have thought it fit to direct setting up of
committees for the aforementioned purposes.In the present constitutional set up
having regard to Entry 66, List I of the Constitution of India, the legislative power of
the State may be very limited; the extent whereof may have to be determined in

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appropriate cases. But the sake of the State in such matters is also not minimal. The
State has to evolve its own policies generating the source of employment

.We have come across several schemes framed by the States in terms
whereof incentives are being given to the private industries for generating
employment or reduction in taxes is being proposed if graduates are employed. The
respective States, therefore, must apply its mind while granting essentiality certificate
inasmuch as the human resource development problems will have to be faced by it.
In evolving a sound policy decision in this behalf, the statutory bodies shall also have
to lend their ears to the respective State Governments while granting permission for
establishment of the professional educational institutions. The Human Resource
Development Ministry of the Central Government should also play its role.The I.As.
for clarification are,thus, disposed of. The writ petitions may now be placed before
appropriate Benches for disposal. In the facts and circumstances of this case, there
shall be no order as to costs.

And the court decided as The petitions are accordingly disposed of. In the
circumstances of the case, there shall be no order as to costs. Which was very much
clear stand by court over the judicial interpretation and over constitution.

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