Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Bom) 3829

Madhav J. Jamdar, Pravin S. Patil, JJ
Sahyadri Shikshan Sanstha – Appellant
Versus
State Of Maharashtra – Respondent
WRIT PETITION NO. 1932 OF 2026 | WRIT PETITION NO. 1934 OF 2026 | WRIT PETITION NO. 1935 OF 2026 | WRIT PETITION NO. 1936 OF 2026 | WRIT PETITION NO. 1937 OF 2026 | WRIT PETITION NO. 1938 OF 2026 | WRIT PETITION (ST) NO.3481 OF 2026 | WRIT PETITION NO.1876 OF 2026 | WRIT PETITION (ST) NO.3479 OF 2026 | WRIT PETITION (ST) NO.3593 OF 2026 | WRIT PETITION (ST) NO.3591 OF 2026 | WRIT PETITION NO.3609 OF 2026 | WRIT PETITION NO.1875 OF 2026 | WRIT PETITION NO.1807 OF 2026 | WRIT PETITION (ST) NO.3622 OF 2026

Advocates:
For the Appellants/Petitioners: Utkarsh Desai, P. S. Bhavake, Arvind G. Ambetkar, Narendra V. Bandiwadekar, Sagar Mane
For the Respondents: V. M. Mali, Tejas Kapre, S.B. Kalel, A.A. Naik

State administrative actions that result in the termination of financial aid or institutional recognition are invalid if they are taken without granting a prior opportunity of hearing, thereby violating the fundamental principles of natural justice and the rule of law.

Headnote:(A) Maharashtra Self-Financed Schools (Establishment and Regulation Act, 2012 - Secondary School Code - Government Resolutions dated 01.04.2026 and 02.04.2026 - Grant-in-aid qualification - Administrative action - Disqualification of schools from receiving grant-in-aid and forced conversion to self-financed status - Lack of opportunity of hearing to affected institutions and staff constitutes violation of principles of natural justice - Exercise of executive discretion must be guided by law and clear principles rather than arbitrary shifts in policy. (Paras 2, 10, 11, 13, 16, 17, 19)

(B) Administrative Law - Rule of Law - Arbitrary executive action - Requirement for reasoned orders - Any adverse order affecting rights must disclose application of mind and reasons to ensure predictability and fairness - Exercise of state authority without adherence to due process of law is unsustainable. (Paras 3, 16, 17)

Facts of the case:
The state government issued resolutions disqualifying primary and secondary schools from receiving government grant-in-aid due to repeated failure to satisfy assessment criteria. Affected schools were directed to apply for conversion to self-financed status by a specific deadline, failing which their recognition would be cancelled and students absorbed into other institutions. Petitioners challenged this action, asserting a total lack of hearing opportunity and the illegality of the forced status conversion.

Findings of Court:
Administrative authorities failed to provide the mandatory opportunity of being heard before passing a drastic order affecting the existence of schools and the livelihood of staff. The criteria for disqualification lacked transparency, and the state failed to demonstrate that the specific facts and individual statuses of the petitioner institutions were considered prior to the mass issuance of the orders.

Issues: Whether the state government's decision to disqualify schools from grant-in-aid and force their conversion to self-financed status is legally valid without granting an opportunity for a hearing to the concerned managements.

Ratio Decidendi: State power must be exercised within defined limits guided by law. In the absence of a fair hearing, any administrative decision leading to the closure of recognized institutions that impacts staff and students is in breach of the principles of natural justice and is inherently arbitrary.

Result: Petitions allowed; impugned government resolutions held not applicable to the petitioners; government directed to delete petitioner institutions from the disqualification lists.

Table of Content
1. state government cannot cancel school recognition and funding without due process. (Para 1)
2. administrative actions by the state must be supported by reasons and procedural fairness. (Para 2 , 3 , 4)
3. assessment processes for grant-in-aid must strictly adhere to established departmental guidelines. (Para 5 , 6)
4. disqualification must follow a transparent evaluation process and address prior legitimate claims. (Para 7 , 8 , 9)
5. administrative orders must consider societal and individual impacts of school facility closures. (Para 10 , 11 , 12 , 13 , 14 , 15)
6. executive discretion must be exercised logically and in accordance with the rule of law. (Para 16 , 17 , 18)
7. procedural failure to grant a hearing renders adverse administrative actions unsustainable. (Para 19 , 20 , 21)

ORAL JUDGMENT (PER: PRAVIN S. PATIL, J.)

1. By these petitions, the challenge is to the Government Resolutions dated 01.04.2026 and 02.04.2026, whereby the State Government, has disqualified Primary and Secondary Schools permanently from receiving grant-in-aid from State Government, as those schools repeatedly failed to satisfy the norms of assessments and directed them to submit applications under the provisions of the Maharashtra Self-Financed Schools (Establishment and Regulation) Act, 2012 (hereinafter referred to as the “Self-Finance Act”) on or before 30.04.2026. It is further clarified in the said Resolutions that, in case the managements/schools failed to submit their applications on or before 30.04.2026, their recognition shall stand cancelled automatically, and the students in such schools will be absorbed into nearby grant-in-aid schools or other schools run by local authorities.

The relevant extract of G.R. dated 01.04.2026 is reproduced as under :

"व कायम िवना अनुद ान त्वावर मा्यता िदले्या तथाि

मु्यांकना्या अनुदाना्या िनकषांम्ये वारवं ार अार झाले्या

खाजगी राथिमक शाळा व तुकडयांबाबत.

महाराटर शासन

शालेय िशषण व रीडा िवभाग

शासन िनण.य रमांक: माशाअ २०२५/र.र. ५२/एसएम-४,

हुता्मा राजगुु चौक, मादाम कामा माग.,

मंरालय, मुंबई ४०० ०३२,

िदनांक :- ०१ एिरल, २०२६

शासन िनण.य

१. रा्य शासनावारे वेळोवेळी मु्यांकन होवूनही वारंवार अार ठरले्या या शासन िनण.यासोबत जोडले्या रर- अ व ब म्ये नमूद

राथिमक शाळा व तुकडयांना वेतन अनुदानाकरीता कायम्वुी अार घोिषत कर्यात येत आहे.

शाळेचा ्तर	शाळा (रर अ)	शाळांवरील तुकडया (रर ब)
राथिमक	४३३	३३ ( शाळांवरील तुकडया)

२. रर- अ व ब येथे नमूद शाळांना ्वयंअथ.सहािFयत अिHिनयमातील तरतुदंनुसार शासन मा्यतेसाठी अज. कर्याकरीता

िद.३०.०४. २०२६ ावेतो अखेरची मुदत दे्यात येत आहे. सदर िदनांकाूवJ रर- अ व ब म्ये नमूद शाळांनी ्वयंअथ.सहािFयत

त्वावर मा्यतेसाठी िशषण संचालक (राथिमक), महाराटर रा्य, ुणे यांचेकडे अज. दाखल करणे अिनवाय. राहील. या शाळांना

्वयंअथ.सहािFयत त्वावर मा्यता देताना ्वयंअथ.सहािFयत अिHिनयमा ्या कलम ४ मHील दानिनHीची तरतूद तसेच

अिHिनयमा्या अनुसूची "क" मHील िर्छेद र. १२ येथील जमीनीबाबत्या तरतूदीमHुन सुट अनुञेय राहील.

रर- अ व ब म्ये नमूद शाळांनी खाली नमूद कागदरे अजा.सोबत जोडणे आव्यक राहील;

१) शाळा मा्यता आदेश

२) अययावत आHार िरोट.

३) आरटीई मा्यता

िवहीत मुदतीत िरूण. अज. सादर करणा्या शाळांना ्वयंअथ.सहािFयत अि Hिनयमातील तरतूदंनुसार मा्यता अनुञेय

राहील.

३. रर- अ व ब म्ये नमूद शाळांैकी ्या शाळा िर्छेद र. २ म्ये नमूद के ्यारमाणे िवहीत मुदतीत संचालक (राथिमक),

राथिमक िशषण संचालनालय , ुणे यांचेकडे अज. दाखल करणार नाहीत, अशा शाळांबाबत संदभ. र. १ येथील शासन िनण.यातील

िर्छेद र. १२ मHील तरतूदंनुसार अशा शाळांची मा्यता आोआ रद होईल. या शाळांमHील िवयांयाVचे समायोजन सोयीनुसार

नजीक्या खाजगी अनुदािनत / ्थािनक / नागरी ्वरा्य सं्थे्या राथिमक शाळांम्ये िवहीत काय.्दतीनुसार कर्यात यावे.

संबंिHत िशषणािHकारी ( राथिमक / मा्यिमक) यांनी िविहत काय.धती नुसार अशा शाळांमHील िवयांयाVचे समायोजन

कर्याबाबतचे िरूण. िनयोजन िद .०१.०५. २०२६ ते िद.३१.०५. २०२६ या कालावHीत ूण. करावे व सुटी्या कालावHीम्ये

र्यष समायोजनाची काय.वाही ूण. करावी .

४. मा्यता रद झाले्या शाळा UDISE + ोट.लमHून कमी कर्याबाबतचा र्ताव संबंिHत िशषणािHकारी यांनी रा्य रक्

संचालक, महाराटरराथिमक िशषण िरषद, मुंबई यांना िद.३१.०५. २०२६ ावेतो सादर करावा. रा्य रक् संचालक, महाराटर

राथिमक िशषण िरषद , मुंबई यांनी अशा रकारे रात झाले्या र्ताव

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2026 Supreme(Online)(Bom) 3829

State administrative actions that result in the termination of financial aid or institutional recognition are invalid if they are taken without granting a prior opportunity of hearing, thereby violating the fundamental principles of natural justice and the rule of law.

Cases Referred (1)