The main legal point established is that the AICTE's approval rejection must be based on valid grounds and should consider the existing status and compliance of the institution seeking approval.

1. The petitioner trust represented by its Honorary Secretary, has filed the present writ petition seeking to challenge an order dated 27.06.2012 issued by the respondents All India Council for Technical Education (for short AICTE) and after setting aside the same, seeks for a direction to grant approval for the courses to be run by the college established by the Trust in respect of MBA and MCA for the current academic year 2012-2013.

2. When the writ petition came up on 26.7.2012, this court ordered notice on admission and directed Ms.AL.Gandhimathi, learned Standing Counsel for the AICTE to get instructions from the respondents. Accordingly, a counter affidavit, dated 02.08.2012, has been filed on behalf of the respondents.

3. It is seen from the records that the petitioner trust was registered on 21.10.1974 constituted by Sri Ahobila Mutt in the name of Sri Malolan Educational Trust. The Founder Trustee had transferred the immovable properties belonged to the Mutt set out in the Trust deed. The schedule to the property was consisting of Nanja land comprising in S.No.1335 to an extent of 6 acres and 41 cents. The object of the Trust was to establish a Sanskrit Vidyapeeth and to start a Sanskrit college as well as institutions for Vedas, Prabhandas and Sastras. It also provides for establishment of schools and colleges providing modern school and university education. Initially, a Sanskrit college and Oriental school were started at Madurantakam. It has been functioning for more than three decades. The trust was reconstituted during the period 2008-09. The trustees desired to start an Arts and Science College known as Sri Malolan College of Arts and Science with five UG courses. A No Objection Certificate was also obtained from the State Government to start the college on self financing basis. The college was located at Mocheri Road, Madurantakam. The University of Madras had granted affiliation to the college on 24.07.2010 to run 5 UG courses from the academic year 2010-2011. Since there was a case pending in A.S.Nos.92 and 97 of 2001 before this court with reference to the land in S.No.1335, it was stated that it will be subject to the outcome of the case pending before this court. Sri Kothandaramaswamy Devasthanam, Madurantakam had filed a civil suit in O.S.No.174 of 1990 before the Sub Court, Madurantakam stating that the suit land in which the trust had constructed a building belonged to them. They sought for a declaration of title and recovery of possession. The trial court had decreed the suit. As against the same, the trust had preferred appeals in A.S.Nos.92 and 97 of 2001. This court by judgment dated 10.6.2011 had allowed the appeal filed by the Mutt and dismissed the suit filed by the Devasthanam. This judgment was also produced before the State Government and the University. On satisfied with the rights of the petitioner Trust owning the land, the affiliation was granted for the subsequent academic years.

4. It was stated that as the College was growing, they also wanted to start courses in MBA and MCA and made an application to the AICTE for the grant of permission to start MBA and MCA courses. They had requested to grant permission for 180 seats, which consists of MBA (Finance) – 60 seats, MBA (Marketing)- 60 seats and MCA 60 seats. Online application was filed together with the process fee and that the hard copy was also sent to the Regional Office. The application was sent for verification and for scrutiny by the experts on 15.02.2012. The scrutiny committee which examined the documents as per the check list did not clear the academic, legal and architect papers. Subsequently, the re-scrutiny committee had granted an another opportunity to the petitioner for removal of discrepancies and for compliance for the grant of approval. The re-scrutiny committee meeting was also held on 25.2.2012 and papers relating to academic were cleared. The approval for construction of the building by the Directorate o