2021 (9) TMI 1570 - SC - Indian Laws

Supreme Court validates Regulation 101 under Intermediate Education Act 1921 for Class IV recruitment in aided institutions

The SC upheld the constitutional validity of Regulation 101 under The Intermediate Education Act, 1921, concerning Class IV employee recruitment in aided ... Constitutional validity of Regulation 101 framed under The Intermediate Education Act, 1921 - implications on the recruitment process of Class 'IV' employees in aided institutions in Uttar Pradesh. Right to aid - HELD THAT:- The right to get an aid is not a fundamental right, the challenge to a decision made in implementing it, shall only be on restricted grounds. Therefore, even in a case where a policy decision is made to withdraw the aid, an institution cannot question it as a matter of right. Maybe, such a challenge would still be available to an institution, when a grant is given to one institution as against the other institution which is similarly placed. Therefore, with the grant of an aid, the conditions come. If an institution does not want to accept and comply with the conditions accompanying such aid, it is well open to it to decline the grant and move in its own way. On the contrary, an institution can never be allowed to say that the grant of aid should be on its own terms. Minority and non-minority - HELD THAT:- When it comes to aided institutions, there cannot be any difference between a minority and non-minority one. Article 30 of the Constitution of India is subject to its own restrictions being reasonable. A protection cannot be expanded into a better right than one which a non-minority institution enjoys. Law has become quite settled on this issue and therefore does not require any elaboration. Policy decision - HELD THAT:- The challenge is to the amendment to the Regulation 101. This Regulation is in the form of a subordinate legislation. A subordinate legislation can also be in the form of a policy decision. It is already noted that a policy decision has come into force in the year 2010 itself. A challenge to a Regulation stands on a different footing than the one that can be made to an enactment. However, when the Regulation is nothing but a reiteration of a policy reinforcing the decision of the Government made earlier, then the parameters required for testing the validity of an Act are expected to be followed by the Court - An executive power is residue of a legislative one, therefore the exercise of said power i.e., the amendment of the impugned Regulation, cannot be challenged on the basis of mere presumption. Once a Rule is introduced by way of a policy decision, a demonstration on the existence of manifest, excessive and extreme arbitrariness is needed. Conclusion - i) The constitutionality of Regulation 101 upheld. ii) The right to receive aid is not a fundamental right, and institutions must comply with conditions attached to aid. iii) Article 14 allows for valid discrimination, and the policy to outsource Class 'IV' vacancies was neither arbitrary nor unconstitutional. iv) The State Government has broad authority under Section 9(4) to amend regulations, and the amendment of Regulation 101 was within its powers. v) The regulation did not infringe on the rights of minority institutions under Article 30(1), as it applied uniformly to all aided institutions. The impleadment/intervention applications are allowed. ISSUES PRESENTED and CONSIDEREDThe core legal questions considered in this judgment revolve around the constitutionality of Regulation 101 under the Intermediate Education Act, 1921, as amended, and its implications on the recruitment process of Class 'IV' employees in aided institutions in Uttar Pradesh. The issues include:1. Whether Regulation 101, which mandates outsourcing for filling Class 'IV' vacancies, violates Article 14 of the Constitution of India.2. Whether the State Government has the authority under Section 9(4) of the Intermediate Education Act, 1921, to amend Regulation 101.3. Whether the policy decision to outsource Class 'IV' vacancies infringes on the rights of minority institutions under Article 30(1) of the Constitution.4. Whether the policy decision and subsequent regulation are arbitrary or unconstitutional.ISSUE-WISE DETAILED ANALYSIS1. Constitutionality of Regulation 101 and Article 14:The legal framework involves Article 14 of the Constitution, which guarantees equality before the law. The Court examined whether Regulation 101, mandating outsourcing for Class 'IV' vacancies, violated this provision. The Court noted that Article 14 does not prohibit discrimination but requires valid discrimination. The policy was applied uniformly across all departments of the State, aiming for efficiency and economy, thus not arbitrary or unconstitutional.2. Authority under Section 9(4) of the Intermediate Education Act:Section 9(4) grants the State Government the power to make, modify, or rescind regulations without reference to the Board. The Court held that this power is broad and allows the State to amend Regulation 101. The amendment was a policy decision, and the Court found no manifest arbitrariness in its exercise.3. Rights of Minority Institutions under Article 30(1):The Court considered whether the regulation infringed on minority institutions' rights under Article 30(1). It concluded that the right to aid is not a fundamental right, and conditions attached to aid must be complied with by both minority and non-minority institutions. The regulation applied uniformly, ensuring equal treatment, and did not violate Article 30(1).4. Arbitrariness and Unconstitutionality of the Policy Decision:The Court evaluated the policy decision's rationality, emphasizing that policy decisions are presumed to be in the public interest unless proven otherwise. The decision to outsource was based on financial constraints and efficiency, and the Court found no extreme arbitrariness. The policy was not unconstitutional, as it was applied consistently across the State.SIGNIFICANT HOLDINGSThe Court upheld the constitutionality of Regulation 101, emphasizing the following principles:1. The right to receive aid is not a fundamental right, and institutions must comply with conditions attached to aid.2. Article 14 allows for valid discrimination, and the policy to outsource Class 'IV' vacancies was neither arbitrary nor unconstitutional.3. The State Government has broad authority under Section 9(4) to amend regulations, and the amendment of Regulation 101 was within its powers.4. The regulation did not infringe on the rights of minority institutions under Article 30(1), as it applied uniformly to all aided institutions.The Court set aside the judgment of the Division Bench of the Allahabad High Court, upheld Regulation 101, and directed that:(i) Respondents in Civil Appeal No. 2753 of 2021 be confirmed as Class 'IV' employees with prior approval.(ii) Institutions bear the financial responsibility for employees recruited contrary to the regulation.(iii) The State ensure proper implementation of outsourcing, considering the Seventh Central Pay Commission's recommendations.