Supreme Court Upholds NCTE's Power to Seek Annual Performance Appraisal Reports From TEIs

Bench of Justices PS Narasimha and Alok Aradhe rules that statutory regulators possess both express and incidental powers to enforce accountability, reversing a Delhi High Court order.

The Supreme Court on Thursday delivered a landmark judgment affirming the regulatory authority of the National Council for Teacher Education (NCTE) to require all recognised Teacher Education Institutions (TEIs) to submit annual Performance Appraisal Reports (PAR). The bench set aside a March 2023 Division Bench ruling of the Delhi High Court that had quashed a September 2019 Public Notice mandating the PAR.

The Dispute Over a Public Notice

The controversy began when the Member Secretary of the NCTE Executive Committee issued a Public Notice on September 22, 2019, directing all TEIs running NCTE-recognised courses to upload an annual PAR along with chartered accountant-audited financial statements on a designated online portal. The notice prescribed a processing fee of ₹5,000 for government institutions and ₹15,000 for private institutions, and warned that non-compliance would invite action under Section 17(1) of the NCTE Act, 1993.

The Association of NCTE Approved Colleges Trust and other bodies challenged the notice before the Delhi High Court. While a Single Judge dismissed the writ petitions, the Division Bench allowed the appeal, holding that there was no material showing the PAR proforma had been evolved or approved by the full Council. The High Court also noted that the function of evolving a performance appraisal system under Section 12(k) could not be delegated to the Member Secretary.

Arguments: TEIs vs. NCTE

The TEIs contended that only the Council itself, and not its Executive Committee or Member Secretary, had the statutory authority to issue such a mandate. They argued that the Council's decision in its 48th General Body Meeting merely authorised the NCTE to proceed with a proforma to be developed, and there was no evidence that the proforma was ever placed before and approved by the Council.

The NCTE, represented by Solicitor General Tushar Mehta , countered that the Council had deliberately replaced the earlier proposal of "annual renewal of recognition" with the PAR system to avoid litigation. The Executive Committee, as the executive arm of the Council, was fully empowered to implement the decision. The power to call for PAR was traceable to Section 12(k) of the NCTE Act , which enables the Council to "evolve suitable performance appraisal systems, norms and mechanisms for enforcing accountability on recognised institutions."

Legal Analysis: Incidental Powers and Accountability

The Supreme Court disagreed with the High Court's "technical and pedantic" approach. The bench observed that when a High Court examines the exercise of power by a statutory regulator, the approach must be to see whether the functioning violates any mandatory provision or transgresses vested power.

The court found ample empowerment for the PAR requirement. It noted that the Council, in its 48th meeting, had approved the PAR system and authorised its implementation. The Executive Committee was merely carrying forward that mandate when it issued the notice. Even without specific statutory language, the court held, a regulatory measure can be incidental and ancillary to the regulator's duties.

The judgment emphasised that accountability is an essential principle of administrative law, resting on responsibility, answerability, and enforceability. Since the Comptroller and Auditor General of India conducts performance audits of the NCTE itself, it is natural for the Council to seek appraisal reports from the institutions it governs.

In a notable development, the court expanded the recognised "duty bearers" responsible for free and compulsory elementary education under Article 21A and the RTE Act from five to seven. Drawing from its earlier decision in Dinesh Biwaji Ashtikar v. State of Maharashtra , the court added Teacher Education Institutions as the sixth duty bearer and the NCTE as the seventh. The court declared that the duties of the Council and its committees "are perhaps the highest of all the duty bearers ."

Key Observations

"We fail to understand as to how a regulatory measure of a statutory body, empowered to achieve planned and coordinated development of teacher education system in the country could be restrained from calling upon the TEIs to file Performance Appraisal Report."

"We are of the opinion that even without a specific empowerment under the statute, such a regulatory measure can always be incidental and ancillary to the duties and functions of a regulator."

"Apart from the duty to ensure that the executive authority/statutory bodies do not exercise powers that are not vested in them, Constitutional courts also have a positive duty to ensure that Authorities, more particularly, the regulators do exercise their powers effectively, efficiently and in an accountable manner."

Decision and Implications

The Supreme Court allowed the appeal, set aside the Delhi High Court's judgment, and held that the September 22, 2019 Public Notice was "legal and valid." The court clarified that the NCTE and its Executive Committee are within their jurisdiction to require TEIs to upload PARs.

The ruling has significant implications for India's approximately 16,000 recognised teacher education institutions. The PAR mechanism will serve as a key tool for the NCTE to monitor standards, enforce accountability , and take action against non-compliant institutions. In 2025 alone, the NCTE had derecognised over 2,500 TEIs for failing to meet norms. NCTE Chairman Pankaj Arora welcomed the verdict, calling it "a landmark victory" that strengthens the regulator's resolve to "clean up substandard teacher education institutions."

The judgment also reinforces the constitutional linkage between teacher quality and the fundamental right to education under Article 21A, underscoring the critical role of teacher education in nation-building.