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Issues: (i) Whether the impugned rules, orders and directions infringed the petitioners' fundamental rights under Article 19(1)(f) and Article 19(1)(g) of the Constitution of India. (ii) Whether the impugned rules, orders and directions requiring reservation of seats for Government-nominated teachers and threatening withdrawal of grant and recognition infringed the petitioners' right under Article 30(1) of the Constitution of India.
Issue (i): Whether the impugned rules, orders and directions infringed the petitioners' fundamental rights under Article 19(1)(f) and Article 19(1)(g) of the Constitution of India.
Analysis: The measures did not divest the petitioners of any proprietary right protected by Article 19(1)(f), nor did they prevent the petitioners from practising any profession or carrying on any occupation, trade or business within Article 19(1)(g). Interference with the bare management of the institution was not treated as an invasion of property rights, and no deprivation of the protected freedom under Article 19(1)(g) was shown.
Conclusion: The challenge under Article 19(1)(f) and Article 19(1)(g) failed and was against the petitioners.
Issue (ii): Whether the impugned rules, orders and directions requiring reservation of seats for Government-nominated teachers and threatening withdrawal of grant and recognition infringed the petitioners' right under Article 30(1) of the Constitution of India.
Analysis: Minority institutions have an absolute right to establish and administer educational institutions of their choice, though the State may impose regulations that are reasonable and directed to making the institution an effective educational institution. Regulations that are conceived not in the interest of the institution as an educational institution but in the interest of outsiders, and which substantially restrict the right of administration by controlling admissions through the threat of withdrawing grant or recognition, amount to an indirect invasion of the protected freedom. The impugned reservation requirement and the consequential coercive directions were treated as serious inroads on the petitioners' right to administer the college.
Conclusion: The impugned provisions and directions violated Article 30(1) and were invalid to that extent.
Final Conclusion: The petitioners succeeded only on the minority administration challenge, and the Court protected the college against compulsory seat reservation and the connected threat to grant and recognition while rejecting the challenge based on Article 19.
Ratio Decidendi: Regulations imposed on a minority educational institution as a condition of aid or recognition must be reasonable and must regulate the educational character of the institution so as to make it an effective vehicle of education; measures that substantially impair the substance of the right to administer under Article 30(1) are void.