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2008 Supreme(Ker) 418

Judgename : H.L.DATTU,A.K.BASHEER
Rev.Mathew Maleparambil - Appellant
Versus
State Of Kerala - Respondents
Case No : W.A.No.1217 OF 2002, O.P. Nos. 1609/03, 1774/03, W.P.(C) Nos. 8298/04 AND 6511/04
Decided On : 08/11/2008

Advocates Appeared:For the Petitioner:Baby Issac Illickal, Advocate. For The Respondents: Government Pleader.

Headnote:

Education -Whether the Government is justified in directing the private aided colleges to transfer the unclaimed caution deposits collected from the students to the Government treasury -Held, Court have carefully perused the various clauses in the agreement Government could not have unilaterally issued a direction to the managements to transfer the unclaimed caution deposit to the treasury account trite that the parties to a contract shall be bound by the terms of the contract -One of the parties to the contract cannot unilaterally try to enforce its own decision on the other party, especially, when none of the clauses in the agreement gives such an authority to either of them -Petitioners are amply justified in contending that the impugned order issued by the Government and the two consequential circulars issued by the Director and Deputy Director of Collegiate Education are arbitrary, illegal and unenforceable -Appeal are allowed

Judgment :-

A.K. Basheer, J.

The question that arises for consideration in this bunch of cases is whether the Government is justified in directing the private aided colleges to transfer the "unclaimed caution deposits" collected from the students to the Government treasury.

2. The writ appeal is filed by the principal of an aided private college at Pala, challenging the judgment of the learned single Judge upholding the above order issued by the Government. The learned Judge took the view that the appellant/management was not justified in retaining the unclaimed caution deposit and therefore the management was bound to transfer the same to the treasury account, especially since the Government is paying salary to the teaching and non-teaching staff in the college. Since the same issue arises in the remaining original petitions also, they have been referred to the Division Bench to be heard along with the writ appeal. Therefore, these cases are being disposed of by this common judgment.

3. In the Government Order, [GO(MS) No.150/2001/H.Edn. Dated 11.2001], it was ordered that unclaimed caution deposits lying in the PD accounts of the principals of the aided colleges shall be transferred to the treasury account The Director of Collegiate Education and Director of Technical Education were directed by the Government to issue necessary instructions to the principals of all private colleges in this regard. A copy of the said order is available on record in OP No.1774/03.

4. Pursuant to the above order, the Deputy Director of Collegiate Education had issued a Circular, on December 20, 2001 informing the principals of all private colleges to comply with the direction contained in the Government Order. Thereafter, on November 18, 2002, the Director of Collegiate Education had also issued a Circular to all heads of institutions and managements to comply with the above direction. The said order issued by the Government and the two circulars issued by the Deputy Director and Director of Collegiate Education are primarily under challenge in this bunch of cases.

5. It is contended by the learned counsel for the petitioners that the Government is not entitled to issue a direction to the managements to transfer the unclaimed portion of caution deposit to the treasury account, ignoring or overlooking the clauses contained in the individual agreements executed between the Government and the managements. It is beyond controversy that the Government of Kerala had entered into separate individual agreements, i.e., Direct Payment Agreement with the managements of aided colleges in the State. A copy of one such agreement is marked as Ext.P1 in WP(C) No.6511/04. Clauses 1 to 5 in the said agreement deal with collection of fees in aided colleges. These Clauses are extracted hereunder:

"1. The Educational Agency shall cause to collect tuition fees including fines, if any, from the students admitted or to be admitted to the institution only at the rates prescribed by the University from time to time.

2. The Educational Agency shall cause to collect through the Principal of the institution on or before the date prescribed according to the rules in each month the tuition fees prescribed and fines imposed on the students and remit all such amounts to the credit of the Government in the Treasury at Tirur in such manner as may be prescribed by the Government from time to time. The amounts collected on a day shall be remitted in the said Treasury within the next 4 working days.

3. The Educational Agency shall cause to collect from the students such special fees at such rates as may be prescribed by the University from time to time.

4. (i) The Educational Agency shall cause to remit all fee collections other than those mentioned in clauses 1 and 2 in the Treasury at Tirur in a separate account opened in the name of the Principal of the Institution. Such remittance shall be made within the next four working days after collection. The Principal shall be competent











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