TaxTMI 
TaxTMI 
1984 (12) TMI 269
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent and for contribution 5% of the expenses claims thoroughly arbitrary powers to be presently pointed out which appears to be anachronistic. The action of the Managing Committee of the school in dispensing with the services of both the aforementioned persons is questioned in these two matters on more or less identical grounds and therefore they were heard together and are being disposed of by this judgment. In Re: C.A. No. 2137/84: Pursuant to an advertisement inviting application for the post of Headmaster of the School, appellant- Shri Manmohan Singh Jaitla applied for the same. He was interviewed on March 28, 1976 and on the same day by the order of the same date, he was offered the post of Headmaster in the school in the prescribed scale with usual allowances sanctioned by the Education Department, Chandi- garh Administration for grant-in-aid Schools. The order of appointment provided that the appointee will be on probation for a period of one year and that he will be required to enter into an agreement with the school. The appellant accepted the appointment order and joined service. As required by the regulations of the Education Department of Chandigarh Administration,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to terminate the service of the petitioner as no longer required with effect from the fore-noon of March 4, 1983 in terms of first part of clause (6) of the agreement entered into between the petitioner and the Management. The petitioner approached the Deputy Commissioner and the Commissioner without success. Thereupon he filed present petition under Art. 32 of the Constitution. It is not in dispute that the school is governed by the 1969 Act. It is an aided school receiving aid from the State Government to the tune of 95% of its expenses. Sec. 3 of the 1969 Act provides that no employee shall be dismissed or removed or reduced in rank except after an inquiry to be held in the manner prescribed therein. Sub-sec. (2) provides that no order of dismissal or removal or reduction in rank of an employee shall take effect unless it has been confirmed by the Deputy Commissioner who may refuse to do so, if in his opinion, the provisions of sub-sec. (1) have not been complied with. Sub-sec. (5) permits an aggrieved person to prefer an appeal against any decision or order of the Deputy Commissioner under the section within a period of thirty days to the Commissioner. Sub-sec. (6) provides tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... We repeatedly asked Mr. Prithvi Raj, learned counsel for the respondent-school management as to how it would run a school without a Headmaster. We naggingly persisted with the question as to why it became necessary, obviously in the middle of the term or session on January 31, 1983, to dispense with the service of a Head Master and a Drawing teacher on the ground that they were no longer required. We waited for the answer in vain. Obviously, there could be none and that provides proof, if any was needed, to expose the chink in the cupboard revealing the malafides of the newly elected Managing Committee. We cannot efface the feeling that ignoring the meritorious service for a period of seven years the service of the appellant was dispensed with for a reason wholly untenable but only because he was appointed by the outgoing Managing Committee ignoring that his appointment was confirmed by the competent authority of the Chandigarh Administration. Coupled with this is the fact that a charge-sheet was served on the appellant on April 9, 1979 and a disciplinary enquiry was commenced by the school management. But the same was withdrawn and the power to terminate the service under the ag....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rt in Ajay Hasia etc.v. Khalid Mujib Sehrvardi & Ors. etc-( [1981] 2 S.C.R. 79.) the aided school receiving 95%- of expenses by way of grant from the public exchequer and whose employees have received the statutory protection under the 1969 Act and who is subject to the regulations made the Education Department of the Union Territory of Chandigarh as also the appointment of Head Master to be valid must be approved by the Director of public Instructions, would certainly be amenable to the writ jurisdiction of the High Court. The High Court unfortunately, did not even refer to the decision of the Constitution Bench in Ajay Hasia's case rendered on November 13, 1980 while disposing of the writ petition in 1983. In Ajay Hasia's case, Bhagwati, J. speaking for the Constitution Bench inter alia observed that 'the financial assistance of the State is so much as to meet almost entire expenditure of the corporation, it would afford some indication of the corporation being impregnated with governmental character.' Add to this the existence of deep and pervasive State control may afford an indication that the Corporation is a State agency or instrumentality Substituting the words 'public trus....