The court ruled that principles of natural justice do not apply when a contract has expired and the relationship is merely ad-hoc, prioritizing compliance with UGC regulations.

JUDGMENT :

Alpesh Y. Kogje, J.

1. Rule returnable forthwith. Learned advocate Mr. Jigar Patel waives service of rule on behalf of respondents.

2. In view of the detailed arguments advanced by both the sides and considering the nature of grievance pertaining to students education, the matter is taken up for final disposal.

3. This petition is filed under Article 226 of the Constitution of India seeking issuance of writ to quash and set aside the order/communication dated 04.07.2024 issued by the respondents as also Resolution No. 102.16 dated 06.06.2024 with a further direction to the review committee which is constituted through Resolution No. 88.18 dated 21.12.2020 to submit its report.

4. The case of the petitioner is that the petitioner is a knowledge partner with the respondent-University and by the impugned order/communication, the respondents have terminated the long standing relationship by which the petitioner has to impart knowledge and prepare course material to the students of the University based on an agreement entered into between the respondent and one Institute of Hotel and Tourism Management (hereinafter referred to as "IHTM" for short), which is the predecessor of the petitioner. According to the petitioner, to carry out the activity as per the agreement, the petitioner was also provided with a space within the University office which also the petitioner will now have to vacate.

5. Learned senior advocate Mr. Asim Pandya with learned advocate Mr. Shushil Shukla, appearing for the petitioner, has argued that the termination of the arrangement as per the contract was abrupt and in complete violation of principles of natural justice as though the action was adversely affected to the petitioner, no show-cause notice has been issued to the petitioner. It is submitted that the action on the part of the respondents which is a State within the meaning of Article 13 of the Constitution of India is arbitrary and high handed.

5.1. Learned senior advocate has argued that as per the contract, the petitioner was to impart knowledge to the students of the respondent-University in all nine courses, where under the guise of directions by the UGC, that four courses have to be closed down as the same are not being conducted in accordance with UGC. The entire contract came to be terminated though out of nine courses, five courses are still continued.

5.2. It is argues that The petitioner has invested man-powers in creating the course material to cater to the requirement of the students and if at this stage, abruptly contract is terminated then not only the petitioner will be affected adversely, but future of the students who have undertaken these courses will also to be jeopardized.

5.3. Learned senior advocate has relied upon the Clause-3.12 of the agreement dated 23.04.2007 (Annexure-P2) and submitted that the said clause provides for termination for the agreement only upon a mutual agreement between the parties and there was no scope of unilateral action. It is further submitted that though it was agreed upon in Clause-3.12 that the agreement will have to be continued till compliance last batch of students and therefore, the last batch of students which began in the academic year 2023 would last for the period of three years i.e. till 2026 and therefore, terminating the contract midway is in clear breach of Clause-3.12.

5.4. Learned senior advocate has then drawn attention of this Court to Clause-3.14 of the aforesaid agreement and has submitted that this clause provides for resolving any issue by mutual negotiation between the heads of two organizations or their representatives and their unanimous decision was to be treated as final and binding. However, without resorting to this modality provided, the respondents have terminated the contract. Learned advocate has argued that though the period of agreement/contract was ten years from 23.04.2007, which has expired on 22.04.2017, there was an extension of agreement for a period of three