The court emphasized the importance of adhering to the affiliation bye-laws and directed CBSE to take strict action against schools violating these bye-laws.

JUDGMENT

Satish Chandra Sharma, C.J. The Petitioners before this Court have filed this Writ Petition as a Public Interest Litigation (PIL) under Article 226 of the Constitution of India, aggrieved by the commercialization of education and corrosion of standards of education management, especially with reference to Respondent No. 5 herein, the Delhi Public School Society ("DPSS"). Accordingly, the Petitioners have sought, inter-alia, directions to Respondent No. 1, the Central Board of Secondary Education ("CBSE"), to inquire into and regulate the transactions between Education Societies and Franchise Schools and, more specifically, inspect the affairs of the schools operated by DPSS.

2. The Petitioners' contention is that the Respondent No. 5, Delhi Public School Society is a Society registered under the Societies Registration Act, 1860, and the Society through its Chairman i.e. Respondent No.6 Mr. V.K. Shunglu has executed various joint venture agreements with several schools (franchisees agreements) for permitting certain other schools to use the name of Delhi Public School (DPS), its logo and motto.

3. It has been stated that large number of agreements have been executed between the Respondent Society and certain schools, and the Petitioners have given examples of certain schools. The Petitioners have stated that one such agreement has been executed with M/s Rachna Educational Society, Warangal, Andhra Pradesh, for setting up of a school at Warangal. The M/s Rachna Educational Society as per the agreement has to pay sum of Rs.12 lakhs to the DPSS.

4. Similar agreement has been executed in respect of Delhi Public School, Kashipur, Uttarakhand for sum of Rs.27,57,500/-, and other agreements have been executed in favour of DPS, Pinjore, Haryana and DPS Allahabad, Uttar Pradesh as well.

5. The Petitioners have given examples of various franchisee agreements executed from time to time and have alleged a large number of irregularities in respect of management of DPS Society.

6. The Petitioner has prayed for the following reliefs in the Writ Petition:

"a. Issue a writ of Mandamus directing Respondent No. 1to inquire into the nature of agreements and transactions between Education Societies and Franchisee schools and take, appropriate action against them, and

b. Issue a writ of Mandamus directing Respondent No. 1 to 3 to conduct an inquiry into the affairs of Respondent No. 5 and' other Societies and Trust, to take appropriate action against the erring members and office bearers, and

c. Issue a writ of Mandamus directing Respondent No. 2 to inspect the affairs of the schools run by Respondent No. 5 as per Rule 170 of the Delhi School Education Rules, 1973, and

d. Quash and set aside the illegal Joint Venture Agreements and Memorandum of Understandings such as entered into by Respondent No. 5 and other similarly placed Societies pertaining to granting of/operation of franchisee schools. Pass any such further orders or directions as this Hon'ble High Court may deem fit and proper in the facts and circumstances of the case."

7. The Petitioners have impleaded the State Government, the Central Board of Secondary Education as well as other authorities as Respondents.

8. By filing interlocutory applications, the Petitioners have brought on record various other agreements executed by the Respondent Society as well as their balance sheets. The CBSE has filed a detailed and exhaustive reply and it has been stated that the Board, in accordance with the Affiliation By-laws, grants affiliation to the schools subject to fulfilment of the norms, and By-law 21 provides for power and functions of the School Management Committee. Affiliation By-law 21 under Chapter VI of the By-laws, reads as under:

"21. Powers and Functions of the School Management Committee

Subject to overall control of the Society/Trust/Company Registered under Section 25 of the Companies Act, 1956 the School Managing Committee shall have the following powers/functions:

i. It shal