IMPORTANT POINT
The Transfer of Management Act 1971 requires strict adherence to procedural safeguards, including the right to a fair hearing, before any drastic action such as transferring management can be taken against an educational institution.

JUDGMENT/ORDER

SHAILESH P.BRAHME,J. - Rule. Rule is made returnable forthwith. Heard learned counsel for the respective sides finally at the admission stage.

2. The petitioner is challenging Government Resolution dtd. 14/12/2017 transferring six residential schools run by it to the respondent Nos. 5 to 7. In pursuance of the impugned action the schools are actually transferred and they are in the management of the respondent Nos. 5 to 7.

3. The petitioner was granted permission to run six schools which are mentioned in paragraph No. 2 of the memo of the writ petition. The permission was on non grant basis granted vide order dtd. 29/3/1997. Thereafter, by order dtd. 31/4/1997 the grant in aid was provided to the schools. The schools are residential schools for differently-abled students namely mentally challenged, deaf and dumb and handicapped. By virtue of the impugned resolution, the respondent No. 5 is entrusted with three schools, the respondent No. 6 is entrusted with two schools and the respondent No. 7 is entrusted one school.

4. An administrator was appointed over four schools of the petitioner due to the disputes in the management by order dtd. 9/2/2005. That gave rise to Writ Petition No. 440 of 2008. The administrator was removed and the elected body was directed to be restored in the management by order of this Court dtd. 6/2/2009. Thereafter, order dtd. 6/2/2009 was recalled by order dtd. 23/9/2010 passed in Writ Petition No. 1579 of 2009. The then Administrator was directed to hear the rival groups and hand over the management to the duly elected body.

5. There were various complaints against the office bearers of the petitioner from the employees and the stake holders. The respondent No. 2/Commissioner received various complaints regarding lack of infrastructure in the school, non payment of salary, not having legally elected body, misuse of the grants, the service conditions were not being followed, etc. The respondent No. 2 received the recommendations from District Social Welfare Officers of Aurangabad and Jalna. A hearing was conducted by the respondent No. 2. A detailed report was prepared on 13/8/2013 and it was forwarded to the respondent No. 1 with a recommendation to appoint an administrator under the provisions of the Maharashtra Educational Institutions (Management) Act 1976 (herein after referred as "Management Act 1976" for the sake of brevity).

6. The respondent No. 1, however, by order dtd. 26/5/2014 returned the proposal of the respondent No. 2 for appointment of administrator. Considering the illegalities, it was opined that the action be taken against the petitioner for cancelling the recognition or transferring the schools to the competent educational institutions.

7. The respondent No. 2, thereafter, called upon the respondent No. 3 and 4/District Social Welfare Officers to conduct enquiry and submit the report. On 8/4/2015, the respondent No. 4 submitted a report. Similarly on 9/4/2015, the respondent No. 3 submitted a report to the Commissioner. After receiving the reports the respondent No. 2 submitted a proposal on 10/4/2015 to the respondent No. 1. Considering issues of the mismanagement of the six schools, illegalities, criminal proceedings against the office bearers, disputes in the management, it was recommended to transfer schools to the respondent Nos. 5 to 7 under the provisions of the Management Act 1976.

8. On 2/11/2017, the respondent No. 2 addressed a letter to the respondent No. 1 reiterating the recommendation of transfer of the management to the competent educational institutions as per the provisions of The Maharashtra Educational Institutions (Transfer of Management) Act 1971 (hereinafter referred as to the "Transfer of Management Act 1971" for the sake of brevity). Finally, the impugned government resolution dtd. 14/12/2017 was issued by the respondent No. 1 directing the petitioner to hand over the management of the six schools to the respondent Nos. 5 to 7 institutions.

9. It is