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2007 Supreme(All) 1735

ALLAHABAD HIGH COURT
R.K.Agrawal, Vikram Nath
AMITY BUSINESS SCHOOL
Versus
ALL INDIA COUNCIL FOR TECHNICAL EDUCATION
Decided On : 01 June 2007
Special Appeal No. 843 of 2006

Advocates:
A.K.Goyal, A.K.SINGH, R.N.Singh, Ravi Kant, SUDHIR CHANDRA, VINAY GARG,

The AICTE's decision to withdraw approval was arbitrary and unreasonable because the AICTE had not considered the institution's reply to the show cause notice, had not provided the institution with a copy of the inspection report, and had applied different standards to the institution than it had to other similar institutions.

Headnote:

The Court held that the AICTE's withdrawal of approval for the institution's PGDM program was arbitrary and unreasonable. The Court found that the AICTE had not considered the institution's reply to the show cause notice and had not provided the institution with a copy of the inspection report. The Court also found that the AICTE had applied different standards to the institution than it had to other similar institutions. The Court directed the AICTE to reconsider the institution's application for approval in light of the Court's findings.

Fact of the Case:

The institution, Amity Business School, Noida, had been granted approval by the AICTE to offer a PGDM program. However, the AICTE later withdrew its approval, citing deficiencies in the institution's infrastructure, faculty, and admission process. The institution challenged the AICTE's decision in court.

Finding of the Court:

The Court found that the AICTE's decision to withdraw approval was arbitrary and unreasonable. The Court found that the AICTE had not considered the institution's reply to the show cause notice and had not provided the institution with a copy of the inspection report. The Court also found that the AICTE had applied different standards to the institution than it had to other similar institutions.

Issues: Whether the AICTE's decision to withdraw approval was arbitrary and unreasonable.

Ratio Decidendi: The Court held that the AICTE's decision to withdraw approval was arbitrary and unreasonable because the AICTE had not considered the institution's reply to the show cause notice, had not provided the institution with a copy of the inspection report, and had applied different standards to the institution than it had to other similar institutions.

Final Decision: The Court directed the AICTE to reconsider the institution's application for approval in light of the Court's findings.

R. K. AGRAWAL, J.

Amity Business School, Noida and Ritnand Balved Education Foundation, New Delhi, have preferred this special appeal under Chapter VIII, Rule 5 of the Rules of Court, 1952 against the judgment and order dated 23-12-2005 passed by a learned Single Judge of this Court whereby the Writ Petition, being Civil Misc. Writ Petition No. 65741 of 2005, filed by the aforementioned two persons, has been dismissed with certain observations.

Briefly stated, the facts giving rise to the present appeal are as follow :

2. Ritnand Balved Education Foundation, appellant No. 2, (hereinafter referred to as "the Society") is a Society registered under the provisions of the Societies Registration Act, 1860, with its registered office

situate at E-27, Defence Colony, New Delhi. Its aims and objects, inter alia, are to establish educational institution of all descriptions including public school, management training institution, colleges carrying out research in all aspect of education including applied science. It has established an institution in the name and style of Amity Business School (hereinafter referred to as "the Institution") at Sector 44, Noida, District Gautam Budh Nagar (U. P.), appellant No. 1. The Society runs various educational institution by the name of AMITY. According to it, at present it has more than 40,000 students, 130 programmes and 22 campus all over India. It is also offering various graduate and post graduate professional technical career decrees. It claims to be dedicated for the last more than 5 years in building the nation through world class education. It offers varied courses in engineering, bio-technology, computer science, information technology, nano-technology, medical science, research, management courses, communication, design, fashion technology, law and a number of international courses. Some of its institutes, as is being claimed, have been ranked as number one private Institution in the country, namely, the Amity School of Bio Technology and the Amity School of Engineering and Technology. It has also established the Amity University. U. P. , pursuant to an Act passed in the year 2005 by the Legislature of the State of U. P. . According to them, the Institution which has been established in the year 1994, is an autonomous institution. It does not receive any Government grant/aid. It is a private unaided institution and imparts only two programmes, viz. , Post Graduate Diploma in Management (Full Time) and (Part Time) (hereinafter referred to as "the PGDM (FT)" and "the PGDM (PT)" ). To that extent, aforesaid programmes which require approval of the All India Council for Technical Education (hereinafter referred to as "the AICTE") had been approved by the AICTE on 16- 12-1994 with annual intake of 120 and 60 students, respectively. The renewal has been continuously granted by the AICTE. The intake of students in PGDM (FT) has been increased to 150 students. The Association of Indian Universities has also recognised the PGDM course run by the institution as equivalent to MBA. The AICTE granted extension of approval to the Institution on 14-5-2004 for the period 2004-06. It claims to have been ranked at No. 8 in the whole country amongst top business schools in terms of availability of infrastructure and in the past 10 years, its students have been placed in top multinationals and the Indian Companies of repute. It is accredited with ISO 9001 : 2000 and ISO 14001 : 1996. The Institution is an independent entity having separate building, infrastructure for the two AICTE approved courses, viz. , PGDM (FT) and PGDM (PT) ever since 1995. According to them, the Amity Unversity has no correlation with the Institution. The Institution has separate faculty and other facilities, as per norms of the AICTE. It does not impart any other programme except PGDM (FT) and PGDM (PT ).

3. On 26-7-2005, a fax message under the signature of the Advisor (UG/pg) of the AICTE was received by the Institution, intimating

































































































































































































































































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