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  REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 7295 OF 2019 (ARISING OUT OF S.L.P. (C) NO.8343 OF 2019)

STATE OF ODISHA & ANOTHER …PETITIONER(S)

VERSUS

ANUP KUMAR SENAPATI & ANOTHER …RESPONDENT(S)

WITH

CIVIL APPEAL NO. 7298 OF 2019 (ARISING OUT OF S.L.P. (C) NO.29313 OF 2018)

CIVIL APPEAL NO 7301 OF 2019 (ARISING OUT OF S.L.P. (C) NO.32409 OF 2018)

CIVIL APPEAL NO. 7296 OF 2019 (ARISING OUT OF S.L.P. (C) NO.16964 OF 2018)

CIVIL APPEAL NO. 7297 OF 2019 (ARISING OUT OF S.L.P. (C) NO.17416 OF 2018)

CIVIL APPEAL NO. 7304 OF 2019 (ARISING OUT OF S.L.P. (C) NO. 22309 OF 2019 ARISING OUT OF

DIARY NO.31807 OF 2018)

CIVIL APPEAL NOS.  7299­7300 OF 2019 (ARISING OUT OF S.L.P. (C) NOS.31110­31111 OF 2018)

CIVIL APPEAL NO. 7302 OF 2019 (ARISING OUT OF S.L.P. (C) NO.4261 OF 2019)

AND

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CIVIL APPEAL NO. 7303 OF 2019 (ARISING OUT OF S.L.P. (C) NO.6708 OF 2019)

J U D G M E N T  

ARUN MISHRA, J.

1. The question involved in the appeals is whether the employees

are entitled to claim grant­in­aid as admissible under the Orissa (Non­

Government Colleges, Junior Colleges and Higher Secondary Schools)

Grant­in­aid Order, 1994 (hereinafter referred to as the ‘the order of

1994’), after its repeal in the year 2004 by virtue of provisions

contained in Orissa (Non­Government Colleges, Junior Colleges and

Higher Secondary Schools) Grant­in­aid Order, 2004 (hereinafter

referred to as the ‘the order of 2004’). The order of 2004 has also been

repealed by Orissa (Aided Colleges, Aided Junior Colleges, and Higher

Secondary Schools) Grant­in­aid Order, 2008.

2. Before the  promulgation  of the  Order  of  1994, the  benefit of

grant­in­aid to non­Government educational institutions used to be

provided under instructions issued from time to time under the

provisions of  Orissa Education Act,  1969 (hereinafter referred to as

‘the Act').  The same has been amended in the year 1994 by insertion

of the provisions contained in Section 7­C, extracted hereunder:

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“7­C. Grant­in­aid –  (1)  The State Government shall  within  the limits of its economic capacity, set apart a sum of money annually for being given as grant­in­aid to private Educational Institution in the State.

(2) No order according permission or approval or recognition under this Act, whether prior to or after the commencement of the Odisha Education (Amendment) Act, 1994, shall entitle any private educational institution to receive grant­in­aid.

(3) Save as otherwise provided, no private Educational Institution which has not been recognized by the State Government under this Act shall be entitled to receive any aid from the State Government.

(4) Notwithstanding anything contained in any law, rule’ executive order or any judgment, decree or order any Court, no grant­in­aid shall  be paid and no payment towards salary costs or any other expense shall be made to any private educational institution or for any post or to any person employed in any such institution after the commencement of the Odisha Education (Amendment) Act, 1994, except  in accordance with an order or rule made under this Act. Grant­in­aid where admissible under the said rule or order, as the case may be, shall be payable from such date as may be specified in that rule or order or from such date as may be determined by the State Government:

Provided that pending framing of such rule or issue of order, the State Government may, without prejudice to such rule or order, direct that private educational institutions which were receiving grant­in­aid and the posts in such educational institutions in respect of which grant­in­aid was being released shall continue to be paid such amount as grant­in­aid as was being paid to them immediately prior to commencement of the Odisha Education (Amendment) Act, 1994.

(4­a) The grant­in­aid to be borne by the State Government on account of placement of a teacher in an aided educational institution  receiving  University  Grants  Commission scales  of  Pay under the  Career  Advancement Scheme, shall be limited to the extent  as  may be admissible  by computing the period of  service rendered by him against an approved post with effect from the date of completion of five years of service against such approved post:

Provided that nothing in this Sub­section shall be construed as to affect the seniority or any other conditions of service of such a teacher.

(4­b) Notwithstanding anything contained in any judgment, decree or order of any Court to the contrary, any instructions issued, actions  taken or  things done on or after  the 1st  day of  January, 1986  in regard to matters provided  in Sub­section  (4­a)  shall  be deemed to have been validly issued, taken or done as if the said Sub­section were in force at all material points of time.

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(5) Notwithstanding anything contained in any law, rule, executive order or any judgment, decree or order of any Court the following categories of private educational institutions shall only be eligible for consideration for payment of grant­in­aid.

(a) Upper Primary Schools imparting instructions or courses prescribed by the State Government to standards or classes VI and VII or Sanskrit Tolls imparting equivalent courses and Madrasas imparting equivalent courses in standards or classes from I to VII or any one or more of such classes.

(b) High Schools imparting instructions or course for High  Schools  Certificate  Examination conducted  by the Board of Secondary Education, Odisha or institutions imparting Madhyama Course of Sri Jagannath Sanskrit University and Madrasas imparting equivalent course.

(c) Higher Secondary Schools or junior Colleges imparting instructions or course for Higher Secondary Examination conducted by the Council of Higher Secondary Education, Odisha or institutions imparting Upasastri course of Sri Jagannath Sanskrit University and Madrasas imparting equivalent course.

(d) Colleges imparting  course for  B.A.  B.Sc.  or  B.Com. degrees of the Utkal, Berhampur and Sambalpur Universities and Shastri of Sri Jagannath Sanskrit University.

(6) No educational institutions imparting any other courses of studies except those provided in Sub­section (5) shall be eligible for a grant­in­aid from Government.   Educational institutions established and/or managed by Urban Local Bodies, Zilla Parishads, Panchayat Samitis, and Grama Panchayats, Public Sector Undertakings or Companies or statutory  bodies  shall  not  be  eligible for  grant­in­aid  under this Act.  

(7) A Governing Body or Managing Committee  desirous of availing the facility of grant­in­aid shall make an application for the  purpose  within  such  period  and  shall furnish  such information and documents including audited statement of accounts of the  institutions as may be prescribed.   It  shall furnish with the application an undertaking to the effect that grant­in­aid sanctioned for the  purpose or  meeting part or whole of the salary costs shall be disbursed directly to employees concerned and to refund any excess inadmissible payment that may have been made.

(8) Notwithstanding anything contained in any law, rule, executive order or any judgment, decree or order of any court, the private Educational Institutions covered under clauses (a) and (b) of sub­section (5) recognized after the 31   st   March, 2008

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shall not be entitled for any Grant­in­aid from the State Government save as provided in sub­section (9).

(9) The private Educational Institutions referred to in clause (b) of sub­section (5) located  in a Grama Panchayat or  in a Municipality,  which is first recognized  after the  31st  March 2011 shall not be entitled for any Grant­in­Aid from the State Government."                                           

(emphasis supplied)  

It is apparent from the provisions contained in Section 7­C(1)

that the aid to be provided by the Government shall  be within the

limits of its economic capacity and for that purpose money had to be

set apart annually to be disbursed to private Educational Institution.

Mere fact that an institution has been recognised under the Act, shall

not entitle a private Educational Institution to receive grant­in­aid as

of right and no private educational institution, which is not recognised

by the State, shall be entitled to claim any aid from the State

Government.   Section 7­C(4) provides notwithstanding any law, rule,

executive order or any  judgment, decree or order of  any court, the

private educational institution  shall  not  be entitled to receive aid

except under the order or rules under the Act after the commencement

of  Odisha Education (Amendment) Act, 1994.   The grant­in­aid to be

released under the provisions of the Order of 1994, shall be payable

from such date as may be determined by the State Government.  The

State  Government  has the right to  determine the  date for  making

payment of grant­in­aid.   The proviso to Section 7­C(4) enables the

State Government to continue grant­in­aid to institutions already

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receiving it.  Section 7­C(5) specifies the categories of the educational

institutions eligible to be considered for payment of grant­in­aid.

3. In exercise of the powers under the provisions of Section 7­C of

the Act, the Order of 1994 was issued by the Government published in

the  Orissa  Gazette  on  21.11.1994.   It  provided grant­in­aid to be

released with to the approved posts only.  Paragraph 3 of the Order of

1994 specified the categories of the institutions eligible for being

notified as Aided Educational Institutions.   Paragraph 4 of the Order

of 1994 deals with the classification of the Educational Institutions

and the posts in such Institutions.   Paragraph 4 is extracted

hereunder:

“4.   For the purposes of this Order, Non­Government Educational Institutions specified  in Sub­Paras  (1)  and  (2)  of Para 3 and the posts in such institutions shall be classified into the following categories namely: ­  

A – Category I  (i)  Non­Government Educational Institutions and approved posts in such institution which have received grant­in­aid from Government or in respect of which grant­in­aid has been sanctioned by Government prior to the commencement of the Amendment Act,  

(ii)  Other posts  in non­Government Educational Institutions covered under Category­I (i) which were admissible on the basis of workload and prevalent yardstick  and had been  filled up prior to commencement of the Amendment Act, but in respect of which no grant­in­aid had been sanctioned.

Note – If a question arises whether a post was admissible on the basis of workload and prevalent yardstick, the decision of the Director shall be final.

B – Category II (i) Colleges imparting instructions in and presenting regular candidates for the B.A., B.Sc. or B.Com. Examinations with or without Honours of  any of the Universities  which have   been functioning regularly for five years or more by the 1st  June 1994

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after obtaining Government concurrence or recognition and affiliation of any University or for three years or more if such institution is located in an educationally backward district, which has not been notified as an Aided Educational Institution and has not received grant in aid from Government for any post.

(ii) Higher Secondary Schools and Junior Colleges conducting courses in Arts, Science and Commerce which have been functioning regularly for five years or more by the 1st  June, 1994 after obtaining Government concurrence or recognition and affiliation of the Council, or for 3 years or more if such an institution  is located  in any educationally  backward district,  but which have not been notified as Aided Educational Institution and have not received grant­in­aid from Government for any post.

C – Category III Non­Government Educational Institutions of the categories specified in Sub­Paras. – (1) and (2) of Para.3 which have already been established and have received recognition of Government and affiliation prior to the commencement of the Amendment Act but do not come within Categories I or II of this paragraph,  and such institutions  which  may be  established and granted recognition by Government under the Act or the provisions made thereunder and affiliation by the University or the Council, as the case may be, after the commencement of this Order.”

                                              (emphasis supplied)  

The Category I includes approved posts in Non­Government

Educational Institutions receiving grant­in­aid before the

commencement of  the  Amendment Act,  shall  continue to receive  it.

Other posts in Non­Government Educational Institutions admissible

for releasing of grant­in­aid were such which had been filled up before

the commencement of  Amendment Act.   Category II consisted of the

colleges which had been functioning regularly for 5 years or more by

1.6.1994, after obtaining Government recognition/concurrence and

affiliation of any University.  The period is reduced to 3 years for such

institutions which are located in educationally backward districts.

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Category III deals  with those  institutions  which  do  not fall in the

Category I or Category II and which have already been established and

have received recognition of Government and affiliation of University

or Council before the commencement of the Amendment Act or

thereafter.

Paragraph 5 of the Order of 1994 contains a provision that all

Educational Institutions in Category I(i) of Paragraph 4 shall be

deemed to be Aided Educational Institutions, however, in respect of

Categories II and III, as per provision contained in Paragraph 5(2) it is

necessary to fulfil the prescribed conditions. Firstly, an institution has

been functioning on regular basis after recognition from the

Government and affiliation from the concerned University or the

Council for 5 years  or  in the educationally  backward district for  3

years.  It is provided in Paragraph 5(2)(A)(iii)(a) that the number of

institutions to receive grant­in­aid is to be worked out as per

prescribed population ratio.  Under the provisions of Paragraph 5(2)(A)

(v) in case number of eligible institutions to be considered for release

of grant­in­aid during an academic year are more, the Director had to

select the educational institution/institutions on considerations of

average enrolment during the three preceding years; performance of

the institution; availability of infrastructural facilities; maintenance of

discipline and academic standards; and availability of Government or

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Aided Educational Institution nearby.  It is not a matter of right that

the institution is entitled to claim  grant­in­aid.   The  provision for

grant­in­aid is made in budget academic year wise.  

Besides, there are other requirements as specified in Paragraph

5 of the Order of 1994, such as, the educational institution has run

continuously; maintained correct record of admissions and attendance

of students; accounts of receipts and expenditure  and  acquittance

rolls of salary; and other allowances paid to teaching and non­

teaching employees of the institution.  The educational institution has

a Governing Body duly constituted and approved under relevant rules.

The Governing Body of the educational institution has applied in the

prescribed form complete in all respects and in accordance with the

procedure laid down in the said Order.   The educational institution

has fulfilled  all the criteria  and the Director  has  recommended  for

notification of such an institution for grant­in­aid.   The provisions of

Paragraph 5 is extracted hereunder:

 “5. (1) All Non – Government Educational Institutions included in Category I  (i)  of Para 4 shall be deemed to be Aided Educational Institutions for purposes of this Order.

(2) No Non­Government Educational Institution falling within Category II or Category III or Para 4 shall be eligible to be notified as an Aided Educational Institution under  this  Order  unless it  has fulfilled the following conditions, namely:­

(A) (i) An institution being a Non­Government Educational Institution falling within Category II has been functioning on a regular basis  after receiving recognition from Government and affiliation from the concerned University or the Council, as the case may be, for 5 years or more, or for 3 years or more if such

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educational institution is located in an educationally backward district, prior to 1st day of June 1994.  

(ii) An institution being a Non­Government Educational Institution falling within Category II has been established and has been functioning on regular basis after receipt of recognition and affiliation for a qualifying period of five years:

Provided that the qualifying period shall mutatis mutandis be three years if such an institution is located in an educationally backward district or is a women's educational institution imparting education exclusively to women.

NOTE: For the purposes of this Order, no educational institution shall be deemed to be a women's educational institution unless it has received recognition and affiliation as such and any such  institution shall  cease to be a women's educational institution if  subsequently  it is converted into a co­educational  institution.   In the event of such conversion, the notification declaring it to be an Aided Educational Institution, if any, shall be modified.

(iii) Notwithstanding anything contained in this Order, no Junior College or Higher Secondary School or college as the case may be, falling under Category III shall be eligible to be notified as an Aided Educational Institution if, ­  

(a) in the case of a Junior College or a Higher Secondary School, there are already two aided Junior Colleges/ Higher Secondary Schools in that Block or if the institution is located within an urban area, there are more Aided Higher Secondary Schools/ Junior Colleges than one for every 50,000 population subject to a minimum of one. (b) In case of a College, there is already one aided Degree College in that Block or if the Institution is located in an urban area, there is one Aided College for every one lakh population subject to a minimum of one.

NOTE – An educational institution conducting B.A., B.Sc. or B.Com. Degree Courses and Junior College or Higher Secondary Courses shall, for the  purposes  of this  Para,  be treated  as two  separate institutions.”

4. As per the provisions contained in Paragraph 9(1) of the Order of

1994, a teaching or non­teaching post in Category I institution shall

be deemed to be an approved post  for which grant­in­aid has been

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sanctioned  at any time  before insertion  of  Section  7­C.   The  post

which is not covered by Paragraph 9(1), shall be eligible for approval

inter alia subject to conditions that the post was admissible as per the

work­load and the prevalent yardstick before insertion of Section 7­C.

A post in an Educational  Institution falling in Category II  was also

admissible  inter alia  as per work­load and yardstick prescribed vide

Annexure III.  For Category III  post in the institution, more or less

similar riders have been made.  

5. Paragraph 9(2)(E) provides that post has to be filled up for the

qualifying period on a full­time basis, not on an honorary or part­time

basis, as per the procedure laid down in the Act, Rules, and

instructions  and  persons  should  be  qualified to  hold  such  a  post.

Paragraph 9(4) provides for the date of eligibility of a post.   The

provisions contained in Paragraph 9(4) are extracted hereunder:

“9. (4) (i) The date of eligibility of a post in respect of which grant­in­ aid has been sanctioned prior to commencement of the Amendment Act shall be the date on which the posts were admitted to the fold of grant­in­aid for the first time.

(ii) The date of eligibility of a post for which grant­in­aid has not been sanctioned shall be the first day of the academic year following the date on which an approved post completes the qualifying period as applicable to the post:

Provided that the date of eligibility in respect of a post in an educational institution coming within category II or III shall in no case be a date prior to 1­6­1994.”

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6. As per Paragraph 10(3), a post in Category I institution for which

no grant­in­aid has been sanctioned before the commencement of the

Amendment Act shall be eligible to receive grant­in­aid at the rate to

be increased phase­wise manner.

7. As per provisions in Paragraph 16 of the Order of 1994, a

proposal for obtaining grant­in­aid has to be submitted by the

Governing Body to the Director and unless a person is lawfully and

validly appointed and possesses qualification and experience shall be

not eligible for receiving grant­in­aid.   Paragraph 16 is extracted

hereunder:

 “16. (1) On receipt of a proposal from the Governing Body under Para 15, the Director shall examine each case and if he is satisfied that the person proposed by the Governing Body is eligible to receive  grant­in­aid against  an approved post,  he shall  make  an order to that effect.   Where the Director is satisfied that a person proposed by the Governing Body is not eligible to receive grant­in­ aid, his decision shall be communicated to the Governing Body.  For the purpose of satisfying himself as to the eligibility of a person to receive grant­in­aid, the Director may call for any information, clarification or document that he considers necessary for the purpose.

(2)  No  person  shall  be  eligible to  receive  grant­in­aid  against  an aided post unless –  

(i) he has been lawfully and validly appointed to that post by the competent authority in accordance with the law, rules, and instructions in force at the time of his appointment and has been continuing to hold that post on and beyond the date of eligibility of the post to receive grant­in­aid; and

(ii) he possessed educational qualifications and experience required for holding that post at the time of his recruitment or on the date the post was admissible to grant­in­aid, whichever is later.”

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8. It is apparent from the provisions that grant­in­aid cannot be

claimed as a matter of right merely on completion of the prescribed

period.   It  is dependent upon fulfilment of various conditions.   The

Director is competent to examine the case concerning the post filled

up before 1.6.1994. Moreover, it is discretionary to avail the benefit of

grant in aid. There is no compulsion for the institution to apply for it.

9. The Government considering the financial constraint has decided

to repeal the Order of 1994 substituting it by Order of 2004 with effect

from 5.2.2004,  promulgated in exercise  of  powers conferred  under

Section 7­C(4)  of the  Act.  A  significant  departure  had been made

instead of salary cost to be given to the institution of the staff under

the  Order  of  1994, the  concept  has  been  changed to  block  grant,

which shall be a fixed sum of grant­in­aid determined by the taking

into account salary and allowance as on 1.1.2004.   The quantum of

block grant has been made dependent upon the economic capacity of

the Government as provided in Section 7­C(1) of the Act and it shall

not deal with the salary and allowance payable to any such employee

by the Governing Body from time to time.  Paragraph 3 is reproduced

hereunder:

 “3. Admissibility of  Grant­in­aid­ (1)  Every private educational institution being a Non­Government college, Junior College or Higher Secondary School which has become eligible by the 1st June 1994 to be notified as aided educational institution pursuant to the Grant­in­aid Order, 1994 shall  be notified by the Government as required under Clause (b) of Section 3 of the Act and the institution

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so notified shall be entitled to receive grant­in­aid, by way of block grant, determined in the manner provided in the sub­para (2) :  

Provided that a college, in order to be eligible to be notified as an aided educational institution, must not have more than two ministerial staff and two peons.

(2) The block grant payable to the private educational institutions under sub­para (1) shall be a fixed sum of grant­in­aid, which shall be determined by taking into account the salaries and allowances, as on the 1st  day of January, 2004, of the teaching and non­ teaching employees of the educational institution which has become eligible to receive grant­in­aid by the 1st  day of June, 1994 in accordance with the Grant­in­aid Order, 1994, but the determination of the quantum of such block grant shall be within the limits of economic capacity of Government as mentioned in Sub­ section (1) of Section 7­C of the Act and shall have no linkage with the salary  and  allowance  payable to any such employee  by the Governing Body from time to time :

Provided that no educational institution shall be notified to receive such block grant unless it satisfies the performance criteria as envisaged in Clause (ii) and (vii) of Sub­section (1) of Section 7­D of the Act.”

10. The provision as to repeal and saving contained in Paragraph 4

of the Order of 2004 is extracted hereunder:

“4. Repeal and saving – (1) The Odisha (Non­Government Colleges, Junior Colleges, and Higher Secondary Schools) Grant­in­aid Order, 1994 is hereby repealed, save for the purposes mentioned in sub­ para (1) of para 3.  

(2) Notwithstanding the repeal under sub­para (1), the private educational institutions  which  are in receipt of any  grant­in­aid from Government under the Order so repealed immediately before the date of commencement of this Order shall continue to receive such grant­in­aid, as if the Grant­in­aid Order, 1994 had not been repealed.”

The  Order of 1994  has  been repealed save for the  purposes

mentioned in Paragraph 3(1).   Paragraph 4(2) of  the Order of  2004

contains provisions concerning private educational institutions which

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are in receipt of any grant­in­aid under the Order so repealed, shall

continue to receive the same.  

11. Later  on, the State  Government has promulgated grant­in­aid

Order of 2008 notified with effect from 7.1.2009.   The Order of 2004

has been repealed with certain savings. The eligibility of educational

institutions is dealt with in Paragraph 3 of the Order of  2004. The

eligibility criteria for consideration  of  Block  Grant is  prescribed in

Paragraph 4.  Paragraph 16 provides for components and admissibility

of Block Grant and Paragraph 20 deals with repeal and saving.

Paragraphs 3, 4, 16 and 20 are extracted hereunder:

 "3. Eligible Educational Institutions—The following Non­ Government Educational Institutions shall only be eligible for consideration for Block grant for being notified as Aided Educational Institutions under Clause (b) of Section 3 of the Act, namely:­  

(1) Higher Secondary Schools or Junior Colleges recognised by Government and affiliated to the Council imparting instructions and presenting regular candidates for Higher Secondary Examination in Arts, Science or Commerce streams conducted by the said Council.

(2) Colleges recognised by Government and affiliated to any of the Universities imparting instruction and presenting regular candidates for the +3 Arts, +3 Science and +3 Commerce Degree  Examinations of the  Utkal,  Berhampur,  Sambalpur, Fakir Mohan, North Orissa Universities and Ravenshaw Unitary University with or without Honours.

*** *** ***

4.  Eligibility criteria for consideration for  Block  Grant—(1) The educational institutions described in Para 3 which have been established with recognition of  Government  and affiliation of the Council or the Universities as the case may be on or before the 1st

June 1998  in respect  of  Educationally Advanced Districts,  on or before the  1st  June  2000  in respect of  Educationally  Backwards

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Districts and Women’s Educational Institutions established with such recognition and affiliation on or before the 1st  June 2000 in both Educationally Advanced Districts and Educationally Backwards Districts are eligible for Block Grant to be determined in the manner specified in Paragraph­16.  

(2) The educational institution to be considered for Block Grant in accordance with this order shall have received recognition and affiliation for each course, stream and subject taught in that institution for each academic year for a continuous period of minimum 5 years in respect of Educationally Advanced District and 3 years in respect of Educationally Backward District and a Women’s Educational Institution without any break or discontinuity from the date of establishment subject to the provisions of sub­Para (1) :

Provided that in case of break or discontinuity, to acquire eligibility, the said qualifying period shall be computed from the date of revival.

*** *** ***

16.   Components and admissibility of Block Grant – (1) The Block Grant payable to the Non­Government Educational Institution under paragraph 9 shall be a fixed sum of Grant­in­aid, which shall be determined at the rate of 40% of the emoluments calculated at the initial of the existing time scale of pay applicable to the employees including existing. Dearness Pay and existing Dearness Allowance as admissible prospectively from the date of Notification of the Grant­in­Aid Order, 2008 in favour of the teaching and non­ teaching employees of the educational institution who have become eligible to receive Grant­in­aid by 1st day of June 2003.   

(2)  The balance emoluments including Dearness Pay and Dearness Allowance after payment under sub­Para. (1) shall be borne by the concerned Governing Body of the Aided Education Institution.

*** *** ***

20.   Repeal and Saving—(1) The Orissa (Non­Government Colleges, Junior Colleges and Higher Secondary Schools) Grant­in­aid Order, 2004  hereinafter referred to  as the  Grant­in­aid  order is  hereby repealed, save for the purposes of such private educational institution being a non­Government College, Junior College or Higher Secondary School which has become eligible under the said order to be notified as Aided Educational Institution to be entitled to receive Grant­in­aid by way of Block Grant determined in the manner provided in the sub­Para. (2) of Paragraph 3 of the Grant­ in­aid Order, 2004.  

(2)    Notwithstanding the repeal  under sub­Para. (1), the private educational institutions which are in receipt of any Grant­in­aid or

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Block Grant from Government under the orders so repealed immediately before the date of commencement of this Order, shall continue to receive such Grant­in­aid or Block Grant as the case may be as if the Orissa (Non­Government Colleges, Junior Colleges, and Higher Secondary Schools) Grant­in­Aid Order, 1994 and the Grant­in­Aid Order, 2004 had not been repealed."

It is provided that such institutions established with

Government recognition and affiliation of Council or Universities, as

the case may be, on or before 1.6.1998 and in respect of Educationally

Backward Districts and Women's Educational Institutions on or before

1.6.2000 were eligible for Block Grant to be determined in the manner

specified in Paragraph 16.  The rate of Block Grant and management's

liability has been provided in Paragraph 9.   The institution shall be

eligible to grant­in­aid in the shape of Block Grant towards 40% of the

salary cost  of the approved  teaching and non­teaching posts.  The

balance salary cost to be borne by the Governing Body of the

institutions.  The eligibility of posts for Block Grant is to be as per the

work­load and yardstick, as provided in Paragraph 10.  The work­load

shall be determined regarding the actual enrolment, strength of

students, number of candidates presented at the Higher Secondary or

Degree Examination, etc.   Paragraph 11 deals with the disbursement

of  Block Grant.  As per  Paragraph 12, the Governing Body has  to

apply in respect  of eligible  persons to receive  Block  Grant  against

approved posts.  Eligibility  is  conditioned,  inter alia,  with aforesaid

riders.   Paragraph 14 limits the liability of the State Government to

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provide grant­in­aid in the shape of Block Grant to the person

appointed lawfully and validly against one notified post at any time.

The repealing  and saving clause  contained  in  Paragraph 20 of the

Order of 2008.  There is saving to the institution receiving Block Grant

in the manner provided in the Orders of 1994 and 2004, shall

continue to receive the same.

12. Thereafter,  Order of  2009 has been promulgated, notified and

implemented with effect from 6.6.2009, containing various provisions

in Paragraph 3 concerning eligible educational institutions,

admissibility of the Block Grant is contained in Paragraph 4 and rate

and disbursement  of  Block  Grant  as  per  Paragraph 5.  Under the

Order of 2009, the Block Grant payable shall be a fixed sum of grant­

in­aid, which shall be determined by taking into account the initial

basic pay at the pre­revised time scale of pay plus 7 increments plus

Dearness Allowance at the rate of 41% as on 1.1.2004 for teaching

and non­teaching employees of such institutions.   The determination

of the Block Grant shall be within the economic capacity of the

Government.

It is apparent from the aforesaid Orders promulgated from time

to time under the provisions of Section 7­C of the Act that initially the

Government made the provisions of  full cost salary in the Order of

1994.  It  was changed to Block Grant as specified  in the Order of

19

2004.  The Block Grant  was as per  criteria  changed and specified

further in the Orders of 2008 and 2009, depending upon the financial

capacity of the State Government.

13. Shri Ashok Parija, Advocate General appearing for the State of

Odisha submitted that the High Court as well as the State Education

Tribunal (for short, ‘the Tribunal’) erred and have acted in gross

violation of law to entertain the claims made by the employees.   The

applications were filed in the Tribunal during 2011 and 2012, to claim

release of grant­in­aid under the repealed Order of 1994.   The

applications  were filed belatedly by the employees. They  were not

entitled to  grant­in­aid under the Order of  1994.  The grant­in­aid

cannot be claimed as a matter of right.  There are various factors to be

taken into consideration for releasing grant­in­aid.  No representation

was filed by the employees at the relevant time and they have filed the

representations, writ petitions, and original applications belatedly.

Divergent views have been taken in different cases by the High Court.

The High Court and the Tribunal have opined in some of impugned

judgments and orders that employees are entitled to grant­in­aid

under the Order of 1994, whereas in Lokanath Behera v. the State of

Odisha, a Division Bench of the High Court has opined that grant­in­

aid cannot be claimed under the Order of 1994, after its repeal.   We

20

have been taken through the scheme of the Act and the provisions of

the Orders issued thereunder.

14. Learned counsel appearing on behalf of employees have

submitted that right has accrued to the employees to receive the

grant­in­aid under the Order of 1994 with respect to the posts which

were in existence and the appointment had been made before

1.6.1994 on completion of 5 years or 3 years, as the case may be.  The

Tribunal has allowed the application in another matter in the year

2010.   Thereafter, writ petitions were filed on the ground of parity to

claim similar relief and the representation were filed under the order

of the High Court, which was illegally rejected by the State

Government.  Thereafter,  original  applications  were filed  before the

Tribunal,  and the same rightly  has been allowed.  The decision  in

Loknath Behera case does not lay down law correctly as once the right

has accrued and has vested to claim grant­in­aid it cannot be taken

away, the  orders  passed  by the  Tribunal  and High  Court  granting

relief cannot be faulted.   The decision in Loknath Behera deserves to

be set aside. The employees were entitled to approval of their

appointment and payment of grant­in­aid in terms of Order of 1994.

The Order of 1994 contains long­lasting commitment towards

extending the grant­in­aid benefits to the educational institutions.

The communication of the Higher Education Department, Government

21

of Odisha dated 7.10.2017 indicate that grant­in­aid can be claimed

and there  is  continuing eligibility notwithstanding the repeal of the

provisions of the Order of 1994. There is no dispute concerning the

method of selection and qualification of the respondents to occupy the

respective posts.   Thus, after completion of the qualifying period, the

grant­in­aid has been rightly ordered to be released.   An office order

was passed on 5.7.2011,  informing the respondents that they were

approved  for  payment  of  40% of  Block Grant in  terms of  Order of

2008.  Thereafter, cases were filed before the Tribunal.  As some of the

colleges are located in educationally backward districts, it would not

be appropriate to deny the payment of a benefit under the Order of

1994.   Similar benefits have been granted to a large number of

colleges by the Tribunal as well as by the High Court.  The employees

cannot be forced to obtain less favourable treatment under the Order

of 2008, which provides for 40% of Block Grant where grant­in­aid is

available under the Order of 1994 of salary, benefits of annual

increments, dearness allowance, etc.  which are not  included in the

Order of 2008.  

15. It is apparent from the provisions contained in Section 5 of the

Act that permission for the establishment of an educational institution

is imperative.   No private educational institution which requires

recognition shall be established except following the provisions of the

22

Act.   The permission to establish has to be granted on fulfilment of

certain conditions as specified in Section 5.  Section 6 deals with the

recognition of the educational institution.  The institutions in question

are recognised is not in dispute.

16. We are concerned with Section 7­C of the Act, which was

incorporated by the Amendment Act of 1994.   Section 7­C makes it

apparent that Government has to provide grant­in­aid within the limit

of its economic  capacity and it  has to set apart a sum of  money

"annually" for disbursal of grant­in­aid to the private educational

institutions as may be found fit and the institutions/posts have to be

approved by the Director for grant­in­aid.  The grant­in­aid is optional

and an application has to be filed within the specified time limit by an

institution desirous of obtaining it. The release is not automatic, even

on an application  filed  to  the State Government.   If the  Governing

Body  of the institution has  not received  any  grant­in­aid from the

State Government and opts to receive it, has to apply for that purpose

during the current session of the academic year concerned, for which

budgetary provision has to be made by the State Government.   An

application for receiving the grant­in­aid has to be dealt with

considering various factors as enumerated in the Order of 1994 i.e.,

the post has been filled up continuously for the qualifying period of 5

years/ 3 years, as the case may be, employees to have qualification

23

and experience. It also depends on attendance in the institution, the

number of students, work­load, the validity of the appointment,

various other information has also to be furnished regarding date of

appointment  and other  details  as  provided  in  Paragraph 15 of the

Order of 1994.  As per Paragraph 16 of the Order of 1994, the Director

has to examine each case individually.   In terms of Paragraph 5(2)(v),

the Director has  to ascertain primary conditions i.e., number of

institutions existing in the area.  The Director shall select educational

institution within the permissible economic limits considering the

educational  needs  of the  area,  average  enrolment  within  preceding

three years, average number of students, performance of the

institution in the examination, availability of infrastructural facilities,

maintenance of discipline and academic standards, ratio of population

vis­a­vis to number of institutions and availability of Government or

Aided Educational Institution  in  the nearby area.  The educational

institution must have been imparting instruction regularly following

the regulations of the University or the Council as the case may be;

the Educational Institution has not refused to conduct an examination

of the Council or University as the case may be, courses run are only

as per the recognition or affiliation.  

17. A  Non­Government Educational Institution eligible to be and

desirous of being notified as an Aided Educational Institution, has to

24

apply in Form A.  The application shall be made within 3 months from

the date of completion of the qualifying period of eligibility.   The

Director  may  extend  the  period for  good and sufficient reasons  as

provided in Paragraph 7(2) of the Order of 1994.  Further requirement

as provided in Paragraph 9 is that of work­load and the other

yardsticks.   The work­load shall be determined regarding the actual

enrolment during the academic year in which post is admissible for

aid and should have completed the qualifying period.  The post has to

be filled up on a full­time basis, not on an honorary or part­time basis.

If any post admissible for aid based on work­load and yardstick has

not been filled up in the manner prescribed, that period shall not be

counted towards computation of the qualifying period.  As provided in

Paragraph 9(3), the Director, on his satisfaction that a post is eligible

for approval, shall issue an order to that effect with prior concurrence

of the State Government indicating therein the date from which the

post has been approved and the date of eligibility of post to receive the

grant­in­aid considering various other factors.

18. It is  crystal  clear  from the scheme of the Order of  1994 that

grant­in­aid has to be claimed within the period prescribed and the

Director on good and sufficient cause shown may extend the period,

otherwise it cannot be claimed.  Even after completion of 5 years and

3 years period, as the case may be, there is no automatic accrual of

25

right for receiving grant­in­aid.   It is dependent upon the opinion of

Director which educational institution/institutions shall be the best to

cater to the need of the area.

19. The employees have filed representations to claim grant­in­aid

under Order of 1994 belatedly for the first time in the year 2011­12

that  too according to the directions of the High Court,  which were

rejected.   Thereafter,  they approached the Tribunal by way of  filing

original applications, whereas on completion of the qualifying period,

the institution has to inform the Director to claim grant in aid. There

is no material on record that the institutions have duly applied in the

particular academic year and within the time fixed for making

application as  per the  Order  of  1994 and  there is  nothing  on  the

record  indicating that the requisite information was  furnished.  No

such supporting documents have been placed on record.  Be that as it

may.   Fact remains that there is no order placed on record whether

such prayer if any made by the institution had been rejected as per

the Order of 1994.   The representations which have been placed on

record are of 2011­12, as the grant­in­aid is annual, dependent upon

economic limits and financial viability of the State Government, it was

too late in the day to file the original applications or writ petitions in

the year 2011­12, claiming the benefit of grant­in­aid under the Order

26

of 1994.   In case employees/institutions were desirous of obtaining

grant­in­aid under the Order of 1994, they ought to have taken the

steps within the reasonable time in view of the fact that it cannot be

claimed as a matter of right, but it depends upon annual budget and

fulfilment of various factors as contained in the  provisions of the

Order of 1994.   

20. In our opinion, the prayer made to release grant­in­aid under the

Order of 1994 after its repeal was misconceived and would not

possible for any Government within the economic capacity to release

the grant­in­aid retrospectively.  Delay by itself  defeats the right, if

any, to claim the grant­in­aid which is dependent upon the option of

the institution to apply for it.   They may choose not to apply for the

grant­in­aid as it comes with several riders as imposed by the

Government.   Thus, original applications filed belatedly after the

repeal of the Order of 1994, could not have been entertained at all and

the employees  filing  the applications after  repeal  of  Order of  1994,

cannot be said to be entitled for any relief  owing to latches having

slept over their right, if any, available under the Order of 1994.   

21. The next question which we take up for consideration is

concerning the effect of the repeal of the Order of 1994, by the Order

of 2004.  The provisions contained in Paragraph 4 of the Order of 2004

27

has repealed the Order of 1994 save for the purposes in Paragraph

3(1).  Paragraph 3(1)  provides every  private educational institution

being a Non­Government College, Junior College or Higher Secondary

School which has become eligible by 1.6.1994 to be notified as aided

educational institution under the Order of 1994, shall be notified by

the Government as required under Section 3(b) of the Act and shall be

entitled to receive grant­in­aid by way of block grant in the manner

provided in Paragraph 3(2).  The proviso to Paragraph 3 makes it clear

that a college to be eligible as an aided educational institution must

not have more than two ministerial staff and two peons.  There is no

other saving of the Order of 1994.   However, Paragraph 4(2) of the

Order of  2004 provides notwithstanding  the  repeal  of the  Order of

1994, the private educational institutions which are in receipt of any

grant­in­aid from the Government under the Order so repealed shall

continue to receive the grant­in­aid as if the Grant­in­aid Order, 1994

had not  been repealed.  Thus, it is  clear that in  case  a  college is

receiving grant­in­aid, with respect to a post, shall continue to receive

it under the Order of 1994, however, in case it was not receiving the

grant­in­aid as saving of the Order of 1994 is only entitled for block

grant under Paragraph 3(1), not eligible for receiving the grant­in­aid

under the Order of 1994. The saving of Order of 1994 is for a limited

purpose that the institution shall continue to receive grant­in­aid

28

concerning the posts which had been sanctioned before the repeal of

the order of 1994.  

22. Section 6 of the General Clauses Act, 1897 also deals with the

effect of repeal, which is extracted hereunder:

“6. Effect of repeal.  Where this  Act, or any  1 [Central  Act] or Regulation made after the commencement of this Act, repeals any enactment hitherto made or hereafter to be made, then, unless a different intention appears, the repeal shall not

(a) revive anything not in force or existing at the time at which the repeal takes effect; or

(b) affect the previous operation of any enactment so repealed or anything duly done or suffered thereunder; or

(c) affect any right, privilege, obligation or liability acquired, accrued or incurred under any enactment so repealed; or

(d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against any enactment so repealed; or

(e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if the repealing Act or Regulation had not been passed.”

The provisions contained in Section 6 of the General Clauses Act

stipulate that  by the repeal  of enactment, the  benefit  given  to the

person concerned shall not be affected.  However, the repeal shall not

revive anything not in force or existing at the time at which the repeal

takes place.  The previous operation of any enactment or anything is

duly done or suffered thereunder shall not be affected or any right,

privilege,  obligation or  liability acquired,  accrued or  incurred under

29

any enactment so repealed.  However, the best guide is found in what

has been saved is by reference to the repealing provisions in the order

of 2004 which are clear and unambiguous.

23. In  Principles  of  Statutory  Interpretation,  14th  Edition by Justice

G.P. Singh, following observation has been made:

 “The  distinction  between what is, and  what is not a right preserved by the provisions of  Section 6,  General  Clauses Act is often one of great fineness1.   What is unaffected by the repeal of a statute is a right acquired or accrued under it and not a mere ‘hope or expectation  of', or liberty to  apply for, acquiring  a right   2.  A distinction is drawn between a legal proceeding for enforcing a right acquired or accrued and a legal proceeding for acquisition of a right. The former is saved whereas the latter is not.  In construing identical provisions of section 10 of the Hong Kong Interpretation Ordinance, LORD MORRIS speaking for the Privy Council observed: “It may be, therefore, that under some repealed enactment, a right has been given, but that, in respect of it, some investigation or legal proceeding is necessary.   The right is then unaffected and preserved.  It will be preserved even if a process of quantification is necessary.   But there is a manifest distinction between an investigation in respect of a right and an investigation which is to decide whether some right should or should not be given.   On a repeal, the former is preserved by the Interpretation Act.  The latter is not3.   The LORD CHANCELLOR’S (LORD HERSCHELL’S) observations in an earlier Privy Council  case, that “mere right to take advantage of an enactment without any act done by an individual towards availing himself of that right cannot property be

1 Free Lanka Insurance Co. v. Ranasinghe, (1964) 1 All ER 457, p.462 : 1964 AC 541 (PC); Bansidhar v. State of Rajasthan, AIR 1989 SC 1614, p. 1621 : 1989 (2) SCC 557. 2 Director of Public Works v. Ho Po Sang, (1961) 2 All ER 721, p. 731 : (1963) 3 WLR 39 (PC); Bansidhar v. State of Rajasthan, supra; Gajraj Singh v. State Transport Appellate Tribunal, AIR 1997 SC 412, p. 426 : (1997) 1 SCC 650. 3 Director of Public Works v. Ho Po Sang, (1961) 2 All ER 721, p. 731 : (1963) 3 WLR 39 (PC). Also referred  to in Free Lanka Insurance Co. v. Ranasinghe, (1964) 1 All ER 457, p.462 : 1964 AC 541 (PC) [Interpretation of section 6(3). Ceylon Interpretation Ordinance, 1900]; Isha Valimohamad v. Haji Gulam Mohamad, AIR 1974 SC 2061, p. 2065 : (1974) 2 SCC 484; M.S. Shivananda v. Karnataka State Road Transport Corporation,  AIR 1980 SC 77, p. 81 : (1980) 1 SCC 149; Kanaya Ram v. Rajinder Kumar, (1985) 1 SCC 436, p. 441 : AIR 1985 SC 371 ;  Bansidhar v. State of Rajasthan,  AIR 1989 SC 1614, p. 1623 : 1989 (2) SCC 557; Vinod Gurudas Raikar v. National Insurance Co. Ltd., AIR 1991 SC 2156, p. 2159 : (1991) 4 SCC 333;  P.V. Mohammad Barmay Sons v.  Director of  Enforcement,  AIR 1993 SC 1188, p.1192 : (1992) 4 JT 565; Thyssen Stahlunion GMBH v. Steel Authority of India, JT 1999 (8) 66, pp.98, 108 : AIR 1999 SC 3923, p. 3942; Ambalal Sarabhai Enterprises Ltd. v. Amrit Lal & Co., AIR 2001 SC 3580, p.3589 : (2001) 8 SCC 397.

30

deemed a right accrued4”, are not to be understood as supporting the view that if steps are taken under a statute for acquiring a right, the right accrues even  if the steps taken do not reach the stage when the right is given5, nor do the said observations support the view that if no steps are taken for enforcement of a right come into existence, the right is not an accrued right6.   As explained by SINHA, C.J. the observations of LORD HERSCHLL are only authority for the proposition that  “the mere right, existing at the date of a repealing statute to take advantage of provisions of the statute  repealed  is  not  a  right  accrued   7.   Inchoate  or contingent rights and liabilities, i.e., rights and liabilities which have accrued but which are in  the process of  being enforced or are  yet to  be enforced are unaffected for clause (c) clearly contemplates that there will be situations when an investigation, legal proceeding or remedy may have to be continued or resorted to before the right or liability can be enforced8.  Such a right or liability is not merely a ‘hope’ which is destroyed by the repeal9.

*** *** *** It is submitted that as pointed out by SIMON BROWN, L.J.,

the two expressions are generally used in saving legislations to convey the same idea and are not mutually exclusive.   Yet a possible distinction may be made between cases where some step, after the Act comes into force, is needed to be taken by the claimant for getting the right  and  cases  where the  Act,  without  anything being further done by the claimant confers the right.  In the former class of cases, it would be a right acquired after the necessary step is taken whereas in the  latter class of  cases  it  would be a right accrued by mere force of the Act.

*** *** *** The right of a tenant, who has the land for a certain number of

years and who has personally cultivated the same for that period ‘to be deemed to be protected tenant’ under the provisions of a statute has been held to be an accrued right which will survive the repeal of the statute10 .  Similarly, a right conferred by an Act that every lease shall be deemed to be for a period of ten years is a right acquired and will be unaffected by repeal of the Act11.  But the so­called right

4 Abbot v. Minister of Land, (1895) AC 425, 431: 72 LT 113 (PC). 5 Director of Public Works v. Ho Po Sang, (1961) 2 All ER 721, p. 732, 733 (PC). 6 Sakharam v.  Manikchand,  AIR 1963 SC 354,  pp.  356,  357.  See  further  Hungerford Investment Trust v. Haridas Mundhra, AIR 1972 SC 1826, p. 1832: (1972) 3 SCC 684; Lalji Raja & Sons v. Hansraj Nathuram, AIR 1971 SC 974, p. 979 : (1971) 1 SCC 721; Zoharabi v. Arjuna,  AIR 1980 SC 101, p. 102 : (1980) 2 SCC 203 ;  Kanaya Ram v. Rajinder Kumar, (1985) 1 SCC 436, p. 441 : AIR 1985 SC 371 ; Bansidhar v. State of Rajasthan, AIR 1989 SC 1614, pp.1621, 1622; Thyssen Stahlunion GMBH v. Steel Authority of India, JT 1999 (8) 66, p. 107, 108 : AIR 1999 SC 3923, pp.3947, 3948 : (1999) 9 SCC 334. 7 Sakharam v. Manikchand, supra. 8 Plewa v. Chief Adjudication Officer, (1994) 3 All ER 323, p.331 : (1995) 1 AC 249 : (1994) 3 WLR 317 (HL) (For this case see also text and note 74, p.588). 9 Aitken v. South Hams District Council,  (1994) 3 All ER 400, p. 405 : (1995) 1 AC 262 : (1994) 3 WLR 33 (HL). 10 Sakharam v. Manikchand, AIR 1963 SC 354 : 1962 (2) SCR 59. 11 Hiralal v. Nagindas, AIR 1966 SC 367 : 1964 (6) SCR 773.  For other vested rights in the context of landlord and tenant, see Ishverlal v. Motibhai, AIR 1966 SC 459 : 1966 (1) SCR

31

of a statutory tenant to protection against eviction under a Control of Eviction Act is mere advantage and not a right in the real sense and does not continue after repeal of the Act.   12.  Similarly on the reasoning that the right of a tenant to get standard rent fixed and not to pay contractual rent in excess of standard rent under a Rent Control Act is only a protective right and not a vested right, it has been  held that  when  during the  pendency of an  application for fixation of standard rent, the Act is amended and it ceases to apply to the premises in question, the application is rendered incompetent and has to be dismissed as infructuous.13

*** *** *** The option given to a grantee to make additional purchases of

Crown land on fulfilment of certain conditions under the provisions of the statute was held to be not an accrued right when the statute was repealed before the exercise of the option.14

A privilege to get an extension of a licence under an enactment is not an accrued right and no application can be filed after the repeal of the enactment for renewal of the licence.15

***  *** *** The right or privilege to claim benefit of condonation of delay is

not an accrued right under a repealed provision when the delay had not occurred before the repeal of the said provision.16

The right  of  pre­emption conferred by an Act it is  remedial right or in other words a right to take advantage of an enactment for acquiring a right to land or other property and cannot be said to have been acquired or accrued until a decree is passed and does not survive if the Act is repealed before passing of the final decree.17

The right of a Government servant to be considered for promotion in accordance with existing rules is not a vested right and does not survive if the Government takes a policy decision not to fill up the vacancy pending revision of the rules and the revised rules with repeal the existing rules do not make him eligible  for promotion.   18.

367.  12 Qudrat Ullah v. Bareilly Municipality, AIR 1974 SC 396 : (1974) 1 SCC 202. The same result will follow if the Act ceases to apply to certain tenancies by an amendment made by the Legislature or by  a  notification issued  by the  Government in exercise of a  power conferred by the Act: D.C. Bhatia v. Union of India, 1995 (1) SCC 104: 1994 AIR SCW 5011; Parripati Chandra Shekhar Rao v. Alapati Jalaiah, 1995 (3) Scale 197: AIR 1995 SC 1781 : (1995) 3 SCC 709. (Even pending proceedings will be affected);  Ambalal Sarabhai Enterprises Ltd. v.  Amrit Lal  &  Co.,  AIR  2001  SC  3580 : (2001)  8  SCC 397 (pending proceedings will be affected). 13 Vishwant Kumar v. Madanlal Sharma, AIR 2004 SC 1887, pp.1888, 1889 : (2004) 4 SCC 1. 14 Abbot v. Minister of Lands, (1895) AC 425, 431 (PC). 15 Reynolds v. A.G. for Nova Scotia,  (1896) AC 240 : 65 LJ PC 16 : 74 LT 108 (PC).  See further Gajraj Singh v. State Transport Appellate Tribunal, AIR 1997 SC 412, p.422 : (1997) 1 SCC 650 (The text in this book from 6th Edition, p.418 is quoted). 16 Vinod Gurudas Raikar v. National Insurance Co. Ltd., AIR 1991 SC 2156, p. 2160: 1991 (4) SCC 333. 17  Nirmala  Devi v.  Renuka,  AIR  1973  MP  120  approved  in  Krishna  Dass  Agarwal v. Kanhaiyalal, AIR 1996 SC 3464: 1996 (9) SCC 488. 18 Ramulu (Dr.) v. S. Suryaprakash Rao (Dr.), AIR 1997 SC 1803, p.1808: 1997 (3) SCC 59.

32

General savings of rights accrued, and liabilities incurred under a repealed Act by force of section 6, General Clauses Act, are subject  to a contrary intention evinced by the repealing Act.19  In case of a  bare repeal, there is hardly any room for a contrary intention;20 but when the repeal is accompanied by fresh legislation on the same subject, the provisions of the new Act will have to be looked into to determine whether and how far the new Act evinces a contrary intention affecting the operation of section 6, General Clauses Act.21  …..When a saving clause in a new Act is comprehensively worded and is detailed, it may be possible to infer that it is exhaustive and expresses an intention not to call for the application of section 6, General Clauses Act.22”

24. It is apparent from the aforesaid discussion that what is

unaffected by the repeal of a statute is a right acquired or accrued and

not mere hope or expectation of  or  liberty  to apply  for  acquiring a

right.  There is a distinction in making an application for acquiring a

19 Karam Singh v. Pratap Chand, AIR 1964 SC 1305, p. 1309 (para 10) : (1964) 5 SCR 647 ; Ishverlal v. Motibhai, AIR 1966 SC 459, p.466 : 1966 (1) SCR 367. 20 By a subsequent statute a penal section in an earlier statute ceased to have effect and was also repealed.   It was held that even such a double repeal did not show a contrary intention and prevent prosecution for an offence committed before the repeal; Commissioner of Police v. Simeon, (1982) 2 All ER 813 : (1983) 1 AC 234 : (1982) 3 WLR 289 (HL). 21  State of  Punjab v.  Mohar Singh,  AIR 1955 SC 84, p.88 :  (1955) 1 SCR 833 ;  Indira Sohanlal v.  Custodian of  E.P.,  AIR 1956  SC 77,  p. 83 : (1955)  2  SCR 1117  ;  Brihan Maharashtra Sugar Syndicate v. Janardan,  AIR 1960 SC 794, p. 795 : (1960) 3 SCR 85; Mahadeolal v. Administrator General of WB, AIR 1960 SC 936, pp.938, 939 (para 7) : (1960) 3 SCR 578; State of Kerala v. N. Sami Iyer, AIR 1966 SC 1415, pp.1417, 1418; Jayantilal v. Union of India, AIR 1971 SC 1193, p.1196 : (1972) 4 SCC 174; T. Barai v. Henry Ah Hoe, AIR 1983 SC 150, p.156 : (1983) 1 SCC 177; Bansidhar v. State of Rajasthan, AIR 1989 SC 1614, p.1619 : (1989) 2 SCC 557; Manphul Singh Sharma v. Ahmedi Begum, JT 1994 (5) SC 49,  p.53 : (1994)  5  SCC 465;  D.  Srinivasan  v.  The  Commissioner,  AIR 2000 SC 1250, p.1255 : (2000) 3 SCC 548. For the construction of a Saving Clause which opens with the words ‘Save as expressly provided in this Act', see S.N. Kamble v. Sholapur Municipality, AIR 1966 SC 538 : (1966) 1 SCR 618. For a saving clause which preserves old rights but applies new procedure, see Ramachandra v. Tukaram, AIR 1966 SC 557: 1966 (1) SCR 594. 22 Kalawati Devi v. CIT, AIR 1968 SC 162, p.168 : (1967) 3 SCR 833;  ITO, Mangalore v. Damodar,  AIR 1969 SC 408, p.412 : (1969) 2 SCR 29;  Mahmadhusen Abdulrahim Kalota Shaikh v. Union of India, (2009) 2 SCC 1 para 34 (f) : (2008) 13 Scale 398. But see Tiwari Kanhaiyalal v. Commissioner of Income­tax, AIR 1975 SC 902 : (1975) 4 SCC 401, which holds that the detailed savings contained in section 297, of the Income­tax Act, 1961 are not exhaustive.   Recourse, in this case, was taken to section 6, General Clauses Act for holding that a person's liability for an offence under section 52 of the Income­tax Act, 1922 continued even after its repeal.   In  Commissioner of Income­tax, U.P. v. Shah Sadiq and Sons,  (1987) 3 SCC 516, p.524: AIR 1986 SC 1217. Section 6 of the General Clauses Act was again applied to continue the right of set­off accrued under section 24(2) of the 1922 Act after its repeal by the 1961 Act.

[Note: For convenience, the cases/citations in the extracts has been renumbered.]  

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right.  If under some repealed enactment, a right has been given, but

on investigation in respect of a right is necessary whether such right

should be or should not be given, no such right is saved.  Right to take

advantage of a provision is  not saved. After repeal, an advantage

available under the repealed Act to apply and obtain relief is not a

right which is saved when the application was necessary and it was

discretionary to grant the relief and investigation was required

whether relief should be granted or not.  The repeal would not save the

right to obtain such  a relief.   The right of pre­emption is  not an

accrued right.   It is a remedial right to take advantage of an

enactment. The right of a Government servant to be considered for

promotion under repealed rules is  not  a vested right  unless repeal

provision contains some saving and right has been violated earlier.

25. In general savings of the rights accrued under Section 6 of the

General Clauses Act are subject to a contrary intention evinced by the

repealing Act.  It depends upon the repealing provisions what it keeps

alive and what it intends to destroy when repeal and saving clause is

comprehensively worded, then the provisions of Section 6 of the

General Clauses Act are not applicable.   

26. In the present case, it is apparent that there is no absolute right

conferred under the Order of 1994.   The investigation was necessary

34

for whether grant­in­aid to be released or not.  It was merely hope and

expectation to obtain the release of grant in aid which does not survive

after the repeal of the provisions of the Order of 1994.  Given the clear

provisions contained in Paragraph 4 of the Order of 2004, repealing

and saving of Order of 1994, it is apparent that no such right is saved

in case grant­in­aid was not being received at the time of repeal.  The

provisions of the Order of 1994 of applying and/or pending

applications are not saved nor it is provided that by applying under

the repeal of the order of 1994, its benefits can be claimed.  Grant was

annual based on budgetary provisions. Application to be filed timely.

As several factors prevailing at the relevant time were to be seen in no

case provisions can be invoked after the repeal of the order of 1994.

Only the block grant can be claimed.

27. The High Court in Loknath Behera has rightly opined that due to

repeal, the provisions of the Order of 1994 cannot be invoked to obtain

grant­in­aid.  The High Court has rightly referred to the observations

of this  Court in  State  of  Uttar  Pradesh  and others  v.  Hirendra  Pal

Singh, and others, (2011) 5 SCC 305, wherein it was observed:

“22. It is a settled legal proposition that whenever an Act is repealed, it must be considered as if it had never existed. The object of repeal is to obliterate the Act from the statutory books, except for certain purposes as provided under Section 6 of the General Clauses Act, 1897. Repeal is not a matter of mere form but is of substance. Therefore, on repeal, the earlier provisions stand obliterated/abrogated/wiped out wholly  i.e.  pro tanto repeal  (vide Dagi Ram Pindi Lall v.  Trilok Chand Jain, (1992) 2 SCC 13;  Gajraj

35

Singh v. STAT, (1997) 1 SCC 650; Property Owners’ Assn. v. State of Maharashtra, (2001) 4 SCC 455 and  Mohan Raj  v.  Dimbeswari Saikia, (2007) 15 SCC 115).

24. Thus, there is a clear distinction between repeal and suspension of the statutory provisions and the material difference between both is that  repeal removes the  law entirely;  when suspended, it  still exists and has operation  in other respects except wherein  it  has been suspended. Thus, a repeal puts an end to the law. A suspension holds it in abeyance.”

28. Reliance has also been placed on the decision of Board of Control

of Cricket in India v. Kochi Cricket Private Limited,  (2018) 6 SCC 287,

wherein decision rendered in State of Punjab v. Mohar Singh, AIR 1955

SC 84, has been relied upon while holding that when the repeal  is

followed by fresh legislation on the same subject, the provisions of the

new Act have to be looked into so as to ascertain whether it manifests

an intention to destroy the rights or keep them alive.

29. Considering the various provisions of Section 7­C of the Act and

the  Order of 1994, it is apparent that institutions  which received

grant­in­aid and post  with  respect  of  which grant­in­aid was  being

released, have been saved.  The reference of the institution means and

includes the posts.   They cannot be read in isolation.   It cannot be

said that right to claim grant­in­aid has been fixed, accrued, settled,

absolute or complete at the time of the repeal of the order of 2004.  As

per the meaning in  Black’s Law Dictionary,  vesting has been defined

thus:

36

“vest, vb. (15c) 1.  To confer ownership (of property) upon a person. 2.  To invest (a person) with the full title to property. 3.  To give (a person) an immediate, fixed right of present or future enjoyment. 4. Hist.   To put (a person) into possession of land by the ceremony of investiture. – vesting, n.”

Thus, there was no vested, accrued or absolute right to claim

grant­in­aid under the Act or the Order of 1994.  Merely fulfilment of

the educational criteria and due appointment were not sufficient to

claim grant in aid.  There are various other relevant aspects fulfilment

thereof and investigation into that was necessary. Merely by fulfilment

of the one or two conditions, no right can be said to have accrued to

obtain the grant­in­aid by the institution concerning the post or

individual.  No right has been created in favour of colleges/individual

to claim the grant­in­aid under the Order of 1994, after its repeal. No

claim for investigation of right could have been resorted to after repeal

of Order of 1994.

30. It was lastly submitted that concerning other persons, the orders

have been passed by the Tribunal, which was affirmed by the High

Court and grants­in­aid has been released under the Order of 1994 as

such on  the  ground of  parity this  Court  should  not interfere.  No

doubt, there had been a divergence of opinion on the aforesaid issue.

Be that as it  may.   In our opinion, there is no concept of  negative

equality under Article 14 of the Constitution.  In case the person has a

right, he has to be treated equally, but where right is not available a

37

person cannot claim rights to be treated equally as the right does not

exist, negative equality when the right does not exist, cannot be

claimed.  In Basawaraj and another v. Special Land Acquisition Officer,

(2013) 14 SCC 81, it was held thus:

“8. It is a settled legal proposition that Article 14 of the Constitution is not meant to perpetuate illegality or fraud, even by extending the wrong decisions made in other cases. The said provision does not envisage negative equality but has only a positive aspect. Thus, if some other similarly situated persons have been granted some relief/benefit inadvertently or by mistake, such an order does not confer any legal right on others to get the same relief as well. If a wrong is committed in an earlier case, it  cannot be perpetuated. Equality is a trite, which cannot be claimed in illegality and therefore,  cannot be enforced by a citizen or court in a negative manner. If an illegality and irregularity has been committed in favour of an individual or a group of individuals or a wrong order has  been  passed  by a judicial forum, others cannot invoke the jurisdiction of the higher or superior court for repeating or multiplying the same irregularity or illegality or for passing a similarly wrong order. A wrong order/decision in favour of any particular party does not entitle any other party to claim benefits on the basis of the wrong decision. Even otherwise, Article 14 cannot be stretched too far for otherwise it  would  make functioning  of administration impossible. (Vide Chandigarh Admn. v.  Jagjit Singh, (1995) 1 SCC 745, Anand Buttons Ltd. v. State of Haryana, (2005) 9 SCC 164,  K.K. Bhalla v.  State of M.P,  (2006) 3 SCC 581 and Fuljit Kaur v. State of Punjab, (2010) 11 SCC 455.)”

In Chaman Lal v. State of Punjab and others, (2014) 15 SCC 715,

it was observed as under:

“16. More so, it is also settled legal proposition that Article 14 does not envisage for negative equality. In case a wrong benefit has been conferred upon someone inadvertently or otherwise, it may not be a ground to grant similar relief to others. This Court in Basawaraj v. Land Acquisition  Officer, (2013)  14 SCC 81 considered this  issue and held as under: (SCC p. 85, para 8)

“8. It is a settled legal proposition that Article 14 of the Constitution is not meant to  perpetuate illegality or fraud, even by extending the wrong decisions made in other cases. The said provision does not envisage negative equality but has only a positive aspect. Thus, if some other similarly situated persons have been granted some relief/benefit inadvertently or by mistake, such an order does not confer any legal right on

38

others to get the same relief as well. If a wrong is committed in an earlier case, it cannot be perpetuated. Equality is a trite, which cannot be claimed in illegality and therefore, cannot be enforced  by a citizen  or court in  a  negative  manner. If an illegality and irregularity has been committed in favour of an individual or a group of individuals or a wrong order has been passed by a judicial forum, others cannot invoke the jurisdiction  of the higher  or  superior  court for repeating  or multiplying the same irregularity or illegality or for passing a similarly wrong order. A wrong order/decision in favour of any particular party does not entitle any other party to claim benefits on the basis of the wrong decision. Even otherwise, Article 14 cannot be stretched too far for otherwise it would make functioning of administration impossible. (Vide Chandigarh Admn.  v.  Jagjit Singh, (1995) 1 SCC 745,  Anand Buttons Ltd.  v.  State of Haryana, (2005) 9 SCC 164,  K.K. Bhalla  v.  State of M.P,  (2006) 3 SCC 581 and  Fuljit  Kaur  v. State of Punjab, (2010) 11 SCC 455.)””

In Fuljit Kaur v. State of Punjab and others, (2010) 11 SCC 455, it

was observed thus:

“11. The respondent cannot claim parity with D.S. Laungia v. State of Punjab, AIR 1993 P&H 54, in view of the settled legal proposition that Article 14 of the Constitution of India does not envisage negative equality. Article 14 is not meant to perpetuate illegality or fraud. Article 14 of the Constitution has a positive concept. Equality is a trite, which cannot be claimed in illegality and therefore, cannot be enforced by a citizen or court in a negative manner. If an illegality and irregularity has been committed in favour of an individual or  a group of individuals  or  a  wrong  order  has  been passed by a judicial forum, others cannot invoke the jurisdiction of the higher or superior court for repeating or multiplying the same irregularity or illegality or for passing a wrong order. A wrong order/decision in favour of any particular party does not entitle any other party to claim the benefits on the basis of the wrong decision. Even otherwise Article 14 cannot be stretched too far otherwise it would make function of the administration impossible. (Vide Coromandel Fertilizers Ltd. v.  Union of India, 1984 Supp SCC 457, Panchi  Devi  v.  State of  Rajasthan, (2009)  2 SCC 589 and  Shanti Sports Club v. Union of India, (2009) 15 SCC 705)”

In Doiwala Sehkari Shram Samvida Samiti Ltd. v. State of

Uttaranchal and others, (2007) 11 SCC 641, this Court in the context

of negative equality observed thus:

39

“28. This Court in  Union of India  v.  International Trading Co.  has held that two wrongs do not make one right. The appellant cannot claim that since something wrong has been done in another case, directions should be given for doing another wrong. It would not be setting a wrong right but could be perpetuating another wrong and in such matters, there is no discrimination involved. The concept of equal treatment on the logic of Article 14 cannot be pressed into service in such cases. But the concept of equal treatment presupposes existence of similar legal foothold. It does not countenance repetition of a wrong action to bring wrongs on a par. The affected parties have to establish strength of their case on some other basis and not by claiming negative quality. In view of the law laid down by this Court in the above matter, the submission of the appellant  has  no  force. In  case,  some of the  persons have  been granted permits wrongly, the appellant cannot claim the benefit of the wrong done by the Government.”

In Bondu Ramaswamy and others v. Bangalore Development

Authority and others, (2010) 7 SCC 129, this Court observed thus:

“146. If the rules/scheme/policy  provides for  deletion of certain categories of land and if the petitioner falls under those categories, he will  be entitled to relief.  But if  under the rules or scheme or policy for  deletion,  his land  is  not eligible for  deletion,  his land cannot be deleted merely on the ground that some other land similarly situated had been deleted (even though that land also did not fall  under any category eligible to be deleted),  as that would amount to enforcing negative equality. But where large extents of land of others are indiscriminately and arbitrarily deleted, then the court may grant relief, if, on account of such deletions, the development scheme for that area has become inexecutable or has resulted in abandonment of the scheme.”

In Kulwinder Pal Singh and another v. State of Punjab and others,

(2016) 6  SCC 532, this  Court  while relying  upon  State of  U.P. v.

Rajkumar Sharma, (2006) 3 SCC 330, observed as under:

16. The learned counsel for the appellants contended that when the other candidates were appointed in the post against dereserved category, the same benefit should also be extended to the appellants. Article 14 of the Constitution of India is not to perpetuate illegality and it does not envisage negative equalities. In­ State of U.P. v. Rajkumar Sharma, (2006) 3 SCC 330 it was held as under (SCC p. 337, para 15)

40

“15. Even if in some cases appointments have been made by mistake or wrongly, that does not confer any right on another person. Article 14 of the Constitution does not envisage negative equality, and  if the State committed the mistake  it cannot be forced to perpetuate the same mistake. (See  Sneh Prabha v. State of U.P, (1996) 7 SCC 426; Jaipur Development Authority  v.  Daulat Mal Jain,  (1997) 1 SCC 35;  State of Haryana  v.  Ram Kumar Mann,  (1997) 3 SCC 321;  Faridabad CT  Scan  Centre  v.  DG,  Health  Services,  (1997)  7  SCC 752; Jalandhar Improvement Trust v. Sampuran Singh, (1999) 3 SCC 494;  State of Punjab  v.  Rajeev Sarwal,  (1999) 9  SCC  240; Yogesh Kumar v. Govt. (NCT of Delhi), (2003) 3 SCC 548; Union of India  v.  International  Trading Co.,  (2003)  5 SCC 437 and Kastha Niwarak Grahnirman Sahakari Sanstha Maryadit  v. Indore Development Authority, (2006) 2 SCC 604.)”

Merely because some persons have been granted benefit illegally or by mistake, it does not confer right upon the appellants to claim equality.”

In  Rajasthan State Industrial Development & Investment

Corporation v. Subhash Sindhi Cooperative Housing Society, Jaipur and

others, (2013) 5 SCC 427, this Court held as under:  

“19. Even if the lands of other similarly situated persons have been released, the Society  must satisfy the Court that it is similarly situated in all  respects, and has an independent right to get the land released. Article 14 of the Constitution does not envisage negative equality, and it cannot be used to perpetuate any illegality. The doctrine of discrimination based upon the existence of an enforceable right, and  Article  14  would  hence  apply, only  when invidious discrimination is meted out to equals, similarly circumstanced without any rational basis, or  to relationship that would warrant such discrimination. [Vide  Sneh Prabha  v.  State of U.P., (1996) 7 SCC 426, Yogesh Kumar v. Govt. (NCT of Delhi), (2003) 3 SCC 548, State of W.B. v. Debasish Mukherjee, (2011) 14 SCC 187 and Priya Gupta v. State of Chhattisgarh, (2012) 7 SCC 433.]”

In  Arup Das and others v. State of Assam and others,  (2012) 5

SCC 559, this Court observed as under

“19. In a recent decision rendered by this Court in State of U.P. v. Rajkumar Sharma, (2006) 3 SCC 330, this Court once again had to consider the question of filling up of vacancies over and above the

41

number of vacancies advertised. Referring to the various decisions rendered on this issue, this Court held that filling up of vacancies over and above the number of vacancies advertised would be violative  of the fundamental rights  guaranteed  under  Articles  14 and 16 of the Constitution and that selectees could not claim appointments as a matter of right. It was reiterated that mere inclusion of candidates in the select list does not confer any right to be selected, even if some of the vacancies remained unfilled. This Court went on to observe further that even if in some cases appointments had been made by mistake or wrongly, that did not confer any right of appointment to another person, as Article 14 of the Constitution does not envisage negative equality and if the State had committed a mistake, it cannot be forced to perpetuate the said mistake.”

In State of Orissa and another v. Mamata Mohanty, (2011) 3 SCC

436, it was observed:  

“56. It is a settled legal proposition that Article 14 is not meant to perpetuate illegality and it does not envisage negative equality. Thus, even if some other similarly situated persons have been granted some benefit inadvertently or by mistake, such order does not confer any legal right on the petitioner to get the same relief. (Vide Chandigarh Admn. v. Jagjit Singh, (1995) 1 SCC 745, Yogesh Kumar  v.  Govt. of NCT of Delhi, (2003) 3 SCC 548,  Anand Buttons Ltd. v. State of Haryana, (2005) 9 SCC 164, K.K. Bhalla v. State of M.P., (2006) 3 SCC 581, Krishan Bhatt v. State of J&K, (2008) 9 SCC 24, State of Bihar v. Upendra Narayan Singh, (2009) 5 SCC 65 and Union of India v. Kartick Chandra Mondal, (2010) 2 SCC 422)”

31. It is apparent on consideration of Paragraph 4 of order of 2004

that only saving of the right is to receive the block grant and only in

case grant  in aid had been received on or before the repeal  of the

Order of 2004, it shall not be affected and the Order of 1994 shall

continue only for that purpose and no other rights are saved.  Thus,

we approve the decision of the High Court in Lok Nath Behera (supra)

on the aforesaid aspect for the aforesaid reasons mentioned by us.

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32. Thus, we find that the orders passed by the Tribunal  and the

High Court in favour of employees are not sustainable.  The judgment

and order of the High Court in Loknath Behera and Manas Purohit are

upheld for the reasons mentioned in the order.   The appeals filed by

the  State of  Orissa  are allowed  and that of employees  are  hereby

dismissed.  Parties to bear their own costs as incurred.

…………………………….J.   (Arun Mishra)

…………………………….J.       (S. Abdul Nazeer)

New Delhi: …………………………….J. September 16, 2019 (M.R. Shah)