The impugned resolution passed by the governing council is constitutionally invalid and quashed.

( 1 ) THE two employees' associations of the respondent-indian institute of sciences (hereinafter, 'the institute') have preferred these two writ petitions questioning the reasonableness and constitutional permissibility of the resolution xii passed by the governing council of the institute at fits meeting held at 20-12-1996 by which retrospective amendments have been made to the "scheme for career advancement of the employees of the institute". Both the associations feel aggrieved by the clauses which benefits the members of the other counterpart.

( 2 ) THE institute was established in 1909 with two departments. Today, it has 43 departments/centers/units/labs covering a wide range of engineering and basic sciences. It has about 500 faculties, 1700 students and 1500 support staff. It has the largest computing facility for any academic institute in the country and has the best library in science and technology. It has acquired a place of pride in the national endeavours to progress through science and technology.

( 3 ) THE central government, pursuant to the powers conferred on it under Section 3 of the university grants commission act, 1956, on the advice of the commission adding the institute to be an institution of higher education by the notification No. F. 8-77 of 1957-t. 1 dated 12-5-1958 declared it to be a deemed university for the purposes of the said act.

( 4 ) THE institute is mainly funded for its maintenance by the ministry of human resources and development. The extract of the accounts as placed on record shows that out of the actuals/budget estimate for the financial years 1995-96, 1996-97 and 1997-98 being Rs. 40,36,14,822, Rs. 40,00,01,112 and Rs. 51,59,12,000 respectively, the grants of the central government figure at Rs. 31,73,00,000, Rs. 31,64,00,000 and Rs. 45,36,00,000 respectively. Thus, the government grant is almost 90% of the total receipt.

( 5 ) THE properties and the affairs of the institute are administered and managed by the "board of management" and the "governing council" constituted under a statutory scheme framed by the central government under Section 5 of the charitable endowments act, 1890. The said scheme has been published in the official gazette in s. o. 2084 dated 22-5-1967. The said notification reads as under:"notification in the matter of charitable endowments act, 1890 s. o. 2084. upon the application of the council of the Indian institute of science, bangalore and the board of the management of the said institute being the persons acting in the administration of the trust and in exercise of the powers conferred by Section 5 of the charitable endowments act, 1890 (act vi of 1890), the central government with the concurrence of the said council and the said board of management and the joint consent of the trustees of the public charities known as sir dorabji tata trust and the sir ratan tata trust and with the approval of the visitor of the said institute, pleased to declare that in the place and stead of the scheme for the administration and management of the properties and funds of the Indian institute of science, bangalore, set forth in schedule-h to the vesting Order made on the 27th may, 1909, in the above mentioned matters in pursuance of sections 4 and 7 of the aforesaid act, and as modified from time to time, the revised scheme as set forth in the schedule-h hereto annexed be substituted with effect from the 22nd may, 1967".

( 6 ) FROM the above facts, it can plainly be concluded that. (I) the institute is an educational institution engaged in discharging a governmental function, that is, imparting of education; (II) it is a deemed university regulated by the statutory provisions of the university grants commission act; (III) it is administered and managed under a statutory scheme framed under charitable endowments act; (IV) for its day-to-day management, it primarily depends on public funds.

( 7 ) DESPITE the above, Sri lakshminarayana, the learned senior co