P. Suseela & Ors. Etc. Etc. v. University Grants Commission & Ors. Etc. Etc.
Background
This was a batch of appeals testing the validity of University Grants Commission (UGC) Regulations (2009, Third Amendment) that made NET/SLET the minimum eligibility qualification for appointment as university Lecturers/Assistant Professors. The Delhi, Madras and Rajasthan High Courts had upheld these regulations as prospective and non-discriminatory, while the Allahabad High Court had taken a contrary view in one judgment (holding Ph.D. holders meeting certain criteria exempt) and then an inconsistent view in a later judgment on similar facts, creating conflicting rulings within the same High Court.
Decision Breakdown
The Supreme Court held that the Central Government's policy directions to the UGC under Section 20 of the UGC Act, 1956 (on matters of national policy) take precedence over the UGC's own regulation-making power under Section 26, so the 2009 Regulations validly applied. The Court sharply criticised the Allahabad High Court for its later (2014) Division Bench ruling departing from an earlier binding Division Bench judgment without properly distinguishing the facts, calling this "distressing," and held that a subsequent Division Bench must either follow an earlier co-equal bench's ruling or refer the matter to a larger (Full) Bench, not simply overrule it. The Allahabad High Court's 2012 judgment was set aside in its entirety, and all the connected appeals from the other High Courts were dismissed, upholding the UGC's NET/SLET requirement; a related contempt petition was disposed of as having become infructuous.
Lesson Learnt
Government regulatory bodies like the UGC must operate within policy directions issued by the Central Government on national matters, and a High Court bench cannot simply disagree with and bypass an earlier co-equal bench's binding ruling: it must either follow it or refer the conflict to a larger bench for resolution.