Gujarat High Court
Judgename :B.C.PATEL, RAVI R.TRIPATHI
INDIAN INSTITUTE OF MANAGEMENT - Appellant
Versus
UKAKANT SHRIVASTVA - Respondent
L.P.A. 451 of 1993
Decided On : 04/20/2001
Constitution of India - Articles 226, 12, 45, 226 (1) - Societies Registration Act, 1860 - Public Trust Act - University Act - Section 51, 51. A - Bank Act, section 30, 9 - Shops and Establishment Act - Section 66 - Industrial Disputes - Sections 25. F, 25 FFA, 25. N and 25. 0 - University Act - Section 37, 35,38 and 38aa - Appeal is directed against the judgment and order delivered by the learned Single Judge of this Court in Special - Petitioner filed the aforesaid petition under Art. of the Constitution of India against the order of termination of his services - Respondent No. 1 was Professor in the Indian Institute of Management - By the letter dated vide Annexure : A to the petition his services were terminated - Appellant Institute was of the view that it is not in the interest of the Institute to continue the respondent No. 1 in services and therefore, his services were terminated with immediate effect - Along with the letter a sum of towards three months salary by bankers pay order was forwarded giving particulars - Respondent No. 1 was requested to settle the accounts with Finance and Accounts office in the course of time - Respondent No. 1 was requested to surrender the library books and other articles belonging to the Institute - Respondent No. 1 was requested to give vacant possession of the respondent No. 1 s faculty house to the Housekeeping Officer on or before - registered under the Societies Registration Act and is also registered under the Bombay Public Trust Act - There is Board of Governors looking after the property and affairs of the Institute - It is contended that the Institute was established in the year by the Government of India and Government - It is contended in the petition that the Indian Industry also participated in the establishment of the Institute - Such Institutes are also at Calcutta and Bangalore - Held, Court in the case of and we are not in agreement with the views expressed by the learned Single Judge that because the Institute is in the field of management education and research it could be a State within meaning of Article of the Constitution of India - One should not lose sight of the fact that in the modern concept of welfare State, independent institution corporation and agency are generally subject to the State control - State control does not render such bodies as State under Article - In the case Apex Court has pointed out after considering the various decisions rendered earlier in paragraph that it is impossible to hold that a private educational Institute either by recognition or by affiliation to the University could ever be called a instrumentality of the State - We have considered the case wherein the functions of the NCERT were examined and the Court pointed out that it cannot be said to be a state - Division Bench of this Court, in the case of and another Division Bench in the case considered earlier decisions and applying the tests laid down in the - Court pointed out that the decision of nowhere lays down that school run by a public trust is State or other authority or instrumentality of State as envisaged under Article 12 of the Constitution - Opinion it is not correct to say that IIMA is performing public function in the field of management education training and research and is also involved in like such activities and therefore it is a State within the meaning of Article of the Constitution of India - We would like to clarify here that if IIMA acts in breach of Article 14 of the Constitution of India in connection with admission of students in the Institute - Court may invoke its jurisdiction under Article and grant relief to the students, not because it is a State under Article but because granting admission to students involve public duty and calls for and violation thereof would tantamount to breach of Article 14 of Constitution of India - Court pointed out this distinction in paragraph and has held that what is discharged by an educational institution is a public duty that requires to act fairly and in such a case it will be subject to Article - In our opinion therefore the decision - Appeal is required to be allowed and is hereby allowed.
( 1 ) ). This appeal is directed against the judgment and order delivered by the learned Single Judge of this Court in Special Civil Application NO. 77/93 on 29. 9. 93.
( 2 ) ). Respondent No. 1 herein, the original petitioner, filed the aforesaid petition under Art. 226 of the Constitution of India against the order of termination of his services. The respondent No. 1 was Professor in the Indian Institute of Management, Ahmedabad (hereinafter to be referred to as "the Institute and/or IIMA" ). By the letter dated 5. 1. 93 vide Annexure : A to the petition, his services were terminated. The appellant Institute was of the view that it is not in the interest of the Institute to continue the respondent No. 1 in services and therefore, his services were terminated with immediate effect. Along with the letter, a sum of Rs. 30,660/towards three months salary by bankers pay order was forwarded giving particulars. The respondent No. 1 was requested to settle the accounts with Finance and Accounts office in the course of time. The respondent No. 1 was requested to surrender the library books and other articles belonging to the Institute. The respondent No. 1 was requested to give vacant possession of the respondent No. 1 s faculty house no. 304 to the Housekeeping Officer on or before 31st January, 1993.
( 3 ) ). The Indian Institute of Management is a society registered under the Societies Registration Act, 1860 and is also registered under the Bombay Public Trust Act. There is Board of Governors looking after the property and affairs of the Institute. It is contended that the Institute was established in the year 1962 by the Government of India and Government of Gujarat. It is contended in the petition that the Indian Industry also participated in the establishment of the Institute. Such Institutes are also at Calcutta and Bangalore.
( 4 ) ). It is contended by the respondent No. 1 that the Government of India bears the main financial burden through consolidated funds of the Government of India and ultimate control of the Institute is with the Government of India. According to the respondent No. 1, in view of the Memorandum of Association, the rules and the affidavit-in-reply in Special Civil Application No. 889/80 filed by one A. K. Rajan, it is clear that there is complete control of the Institute by the Government of India. The respondent No. 1, relying upon the decision of the Apex Court in the case of RAMANNA D SHETTY VS. INTERNATIONAL AIRPORT AUTHORITY [air 1979 SC 1638] contended that the Institute is an instrumentality of the State under Art. 12 of the Constitution and therefore is amenable to writ jurisdiction of this Court under Art. 226 of the Constitution.
( 5 ) ). It is further contended that the Institute is engaged in imparting education which is one of the public functions of the Institute in the field of management, education, training and research which is vitally essential for the rapid economical and social development of the country. Therefore also it must be deemed to be a State under Art. 12 of the Constitution of India.
( 6 ) ). A student of the Institute addressed a letter to the Coordinator, Student Activity Centre on 29th June, 1992 and forwarded a copy of the same to the Director, I. I. M. , Chairman, Research and Publications, Professors of PGP Executive Committee, CMA Chairman and P and QM Area Chairman. The student, in the aforesaid letter raised a grievance that the standards of morality is applied only for students found copying in the examinations, quizzes and assignments, and not for the Professors. It is pointed out in the letter as under. (relevant portion is reproduced):"while doing my summer project, I had to do some modelling and data analysis. I had carried my copies of Levin (Statistics for Management), and Baumol (Economic Theory and Operations Analysis) along. From the organisation I was in, I borrowed copies of Wagner (Principles of Operations Research) and
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