DAMA SESHADRI NAIDU, J.

Introduction:

An unaided school applies for grant-in-aid. The authorities subject it to scrutiny and find it eligible. Despite the in-principle approval, the school does not get the grant immediately, for the disbursement depends on fund availability. The grant is discretionary. As the school waits, the Government changes the eligibility criteria: the school must have followed the rule of reservation. Then, it insists that the school should have implemented the reservation policy in recruiting its staff-even before it has applied for the grant-in-aid and it rejects the school's claim for the grant.

2. Aggrieved, the School-besides a few other similarly placed schools- challenges the government refusal. So the issues we should resolve are these:

(A) Does the G.R. No. ee'kev 2009@¼411@01¼@ee'k'k&1, dated 15th November 2011, apply to the petitioner schools?

(B) If it does, should it apply prospectively or retrospectively? In other words, should the schools comply with the reservation policy by the date they have applied for the grant-in-aid or only from the date the grant is given?

Facts:

3. The Petitioner is a registered Educational Institution, running a