TaxTMI 
TaxTMI 
2016 (3) TMI 1477
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....ion of the Andhra Pradesh State Education Council of Higher Education now belong exclusively to the Telangana State Education Council for Higher Education. 3. The relevant facts which are required for us to appreciate the rival legal contentions are stated in brief hereunder: The Andhra Pradesh State Council of Higher Education (hereinafter referred to as the "APSC") was constituted under Section 3 of the Andhra Pradesh State Council of Higher Education Act, 1988, to advise the State government in matters relating to Higher Education in the State and to oversee its development with Perspective Planning. The APSC continued carrying out the various functions assigned to it under the Act of 1988, including conducting common entrance examinations for various courses in the State of Andhra Pradesh. 4. On 02.06.2014, the Andhra Pradesh Reorganisation Act, 2014 (hereinafter referred to as the "Reorganisation Act, 2014") came into force, which bifurcated the existing State of Andhra Pradesh into two separate States, namely, the State of Andhra Pradesh and the State of Telangana. The statement of objects and reasons of the Act provides, inter alia, as under: "a) it p....
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....Andhra Pradesh Re-Organisation Act, 2014 (Central Act No. 6 of 2014), the appropriate Government i.e. the State of Telangana is empowered by order, to make such adaptations and modifications of any law (as defined in section 2(f) of the Act)made before 02.06.2014, whether by way of repeal or amendment as may be necessary or expedient, for the purpose of facilitating the application of such law in the State of Telangana before expiration of two years from 02.06.2014; and thereupon every such law shall have effect subject to the adaptations and modifications so made until altered, repealed or amended by a competent Legislature or other Competent Authority; And whereas, it has become necessary to adapt the Andhra Pradesh State Council of Higher Education Act, 1988 and the Rules and Regulations made thereunder for the purpose of facilitating their application in relation to the State of Telangana......" Thus, the Telangana State Council of Higher Education (hereinafter referred to as the "TSC") came into existence to discharge the same functions for the State of Telangana as the APSC for the State of Andhra Pradesh. 6. Pursuant to the creation of the TSC, the Secretary to the Gov....
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.... 0 17 Drivers 3 2 1 18 Record Asst. 1 0 1 19 Roneo Operator 1 1 0 20 Office Subordinates 3 2 1 Total 34 20 14 Cadre wise posts to APSCHE & TSCHE S.No. Category Total Number of posts 58% to APSCHE 42% to TSCHE 1 Gazetted Cadres 10 6 4 2 Other cadres 24 14 10 Total 34 20 14 Number of employees based on nativity ( only Council employees) S.No. Category Total Employees Working Andhra Telangana 1 Gazetted cadres 4 4 0 2 Other cadres 19 5 14 Total 23 9 14 Number of vehicles (working and condemned) S.No. Category Total Vehicles 58% to APSCHE 42% to TSCHE 1 Serviceable 4 2 2 2 Condemned 5 3 2 Total 9 5 4 Number of Equipments S.No. Category Total Equipments 58% to APSCHE 42% to TSCHE 1 Computers 37 21 16 2 Printers 18 10 8 3 Others 27 16 11 Total 82 47 35 Number of Mo....
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....of the Constitution of India, the State Legislatures are competent to make laws in respect of their territory covered by the entries in List-II & III of the 7th schedule of the Constitution. Therefore, in terms of Section 75 of the Act, 2014, the specified institutions under the tenth schedule are governed by the laws of the respective States where they are located. Having regard to the aforesaid legal position, the institutions specified in the tenth schedule located in Telangana are governed by the law of the State of Telangana. 8...... The office of institution of petitioner No.2 formerly known as APSC, is now situated in the State of Telangana at Hyderabad. Therefore, the law enacted by the State of Telangana alone, necessarily, has application for administration of the institution. Consequently, any action taken or order now passed by the erstwhile body of the institution specified at Item No. 27 of tenth schedule is without jurisdiction and would be ultra vires. 9. The APSC, at the instance of the State of Andhra Pradesh, is now asserting its power and authority and physically occupying the premises without any authority of law. The APSC is not entitled to o....
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....rtionment of assets and liabilities'. Section 47 of the Reorganisation Act, 2014 reads as under: "47. (1) The provisions of this Part shall apply in relation to the apportionment of the assets and liabilities of the existing State of Andhra Pradesh immediately before the appointed day. XXX XXX XXX (3) The apportionment of assets and liabilities shall be subject to such financial adjustment as may be necessary to secure just, reasonable and equitable apportionment of the assets and liabilities amongst the successor States. (4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual agreement, failing which by order by the Central Government on the advice of the Comptroller and Auditor-General of India." (emphasis laid by this Court) Further, Section 49, which deals with Treasury and Bank Balances, reads as under: "49. The total of the cash balances in all treasuries of the existing State of Andhra Pradesh and the credit balances of the existing State of Andhra Pradesh with the Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be di....
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....lation ratio, and the same must be implemented in its true spirit. 13. On the other hand, Mr. T.R. Andhyarujina, the learned senior counsel appearing on behalf of the State of Telangana contends that the term 'facilities' used in Section 75 of the Reorganisation Act, 2014 should also be understood to include assets and liabilities of those respective institutions. If an institution falls within the territory of Telangana, then it cannot be disturbed, and the new State of Andhra Pradesh cannot stake any claim in it whatsoever. 14. Mr. K. Ramakrishna Reddi, learned Advocate General for the State of Telangana contends that the specified institutions in the tenth Schedule of the Reorganisation Act, 2014 are partly corporate personalities, in the nature of state owned institutions, without any commercial element and are non-profit in nature. The learned Advocate General places reliance on the decision of this Court in the case of Electricity Employees Union v. Union of India [(2000) 7 SCC 339], wherein this Court, while interpreting the provisions of the Punjab Reorganisation Act held as under: "11. Part VI of the Act as stated above deals with apportionment of assets and....
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....r submits that since all statutory corporations and Public Sector Undertakings are the instrumentalities created by the existing State of Andhra Pradesh in the context of reorganization of the existing State, their assets and liabilities are liable to be apportioned between the two States as per the population ratio stipulated under the provisions of Section 2(h) of the Reorganisation Act, 2014. The APSC, being an asset of the existing State, created by the Act of 1988, it became necessary to provide for bifurcation of APSC and allocation of fixed deposits, Bank balances, cadre strength, vehicles, equipment, movable assets etc. The learned senior counsel submits that subsequent to the impugned judgment and order passed by the High Court, TSC has been operating the bank accounts of APSC, which includes the money collected from the thirteen districts of the successor State of Andhra Pradesh. 18. We have heard the learned senior counsel appearing on behalf of the parties. The short point which arises for our consideration is whether the High Court was right in upholding the action of the Banks in freezing the accounts of APSC. 19. We are unable to agree with the contentions adva....
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.... a new State by separation of the territory from any State or by uniting two or more States or parts of States or by uniting any territory to a part of any State, and in so doing to increase or diminish the area of any State and to alter its boundaries......" 22. The issue of bifurcation of states is both sensitive as well as tricky. Adequate care has to be taken by the legislature while drafting legislations such as the Reorganisation Act, 2014 to ensure a smooth division of all assets, liabilities and funds between the states to make sure that the interests of the citizens living in these states are protected adequately. Therefore, care must be taken to ensure that no discrimination is done against either of the successor state. Thus while interpreting statutes of such nature, the courts must ensure that all parts of the statute are given effect to. An eleven Judge Bench of this Court in the case of H.H. Maharajadhiraja Madhav Rao Jivaji Rao Scindia Bahadur of Gwalior & Ors. v. Union of India [(1971) 1 SCC 85] has held as under: "The Court will interpret a statute as far as possible, agreeably to justice and reason and that in case of two or more interpretations, one ....
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....s we must look at the Act as a whole and discover what each section, each clause, each phrase and each word is meant and designed to say as to fit into the scheme of the entire Act. No part of a statute and no word of a statute can be construed in isolation. Statutes have to be construed so that every word has a place and everything is in its place." " (emphasis laid by this Court) 24. It is natural that when an existing State if bifurcated to form two new States, there must be an equitable bifurcation of the assets and liabilities of the statutory bodies among the two successor States as well, to ensure welfare of the public at large residing within these territories. 25. In the instant case, the State of Telangana has claimed ownership over the entire funds and assets of the (erstwhile) APSC. This could surely not have been the intention of the legislature while enacting the Reorganisation Act, 2014. The main thrust of the argument of both the learned senior counsel appearing on behalf of State of Telangana, as well as the impugned judgment and order passed by the High Court is that the successor State of Andhra Pradesh has absolutely no right over the institutions in th....