JUDGMENT

KULDIP SINGH, J.— The question for consideration is whether the teachers employed in various recognised aided private schools in the State of Himachal Pradesh are entitled to the pay scales which are being paid to their counterparts in the government schools? If so, whether such schools are entitled to receive grants-in-aid to meet 95 per cent of the net approved expenditure?

2. Respondents, in the appeal herein, are teachers employed in various recognised aided private schools (aided schools) in the State of Himachal Pradesh. These schools are being maintained by the private management. They receive aid from the State Government. The respondents approached the Himachal Pradesh High Court seeking a direction that they are entitled to parity in the matter of salary, allowances etc. with the teachers employed in the government schools. They further sought a direction to the State Government to pay grants-in-aid to meet 95 per cent of the expenditure incurred by the aided schools. A Division Bench of the High Court allowed the writ petitions. These appeals by way of special leave are against the judgment of the High Court.

3. The Central Government appointed Kothari Commission to examine the conditions of service of teachers with the object of improving the standard of education in the country. Kothari Commission, inter alia, recommended that the scales of pay of school teachers working under different managements such as Government, local bodies or private management should be the same. Almost all the States in the country, including the State of Himachal Pradesh, agreed to implement the recommendations of the Kothari Commission. The adjoining State of Haryana declared, as back as January 1968, that the grades of teachers of privately managed schools would be revised on the pattern of the grades of teachers working in government schools.

4. The State of Himachal Pradesh framed rules called Grants-in-Aid Rules (the Rules) which are incorporated in the Himachal Pradesh "Education Code".

5. Rules 45-Q and 45-J which are in conformity with the recommendations of the Kothari Commission are as under:

"45-Q. Management shall introduce such scales of pay and allowances for teachers and to other staff members as are prescribed by the Government for corresponding staff in government schools.

45-J. That the income from subscription, endowments and other sources (excluding fees) suffices to ensure that the management can contribute at least 5 per cent of the net expenditure from their own funds after the school is aided."

6. The State of Himachal Pradesh, therefore, is committed to implement the Kothari Commission recommendations regarding parity in the pay scales of the teachers working in the government schools and the aided schools. While agreeing in principle to revise the pay scales of the teachers in the aided schools and also to meet 95 per cent of the net approved expenditure, the Himachal Government has fixed the maximum limit up to which the grant can be paid to various schools. In this respect we may notice Rule 47(2) of the Rules which is as under:

"47. (2) Management of the aided schools shall be required to meet 5 per cent of the net approved expenditure in any school year. The balance of the expenditure being met from the Government grant, the net approved expenditure being the total expenditure approved by the Education Department minus the income from the fees, fines, etc. In case of girls schools and schools located in scarcely populated area the Government may, at its discretion authorise payment of grants-in-aid to the full extent of the difference between approved expenditure and approved income. This authority shall be exercised by the Government only in special circumstances where the school management is unable to meet the deficit from its own financial resources. The grants as assessed above shall be admissible subject to the maximum amount shown against each category of institutions:"

The Government have laid down