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The Jawaharlal Nehru Technological University Registrar v. Sangam Laxmi Bai Vidyapeet

Civil Appeal · 2018 INSC 1011Decided 29 Oct 2018
Civil Appeal arising out of SLP (Civil) No. 9718 of 2018
Justice Arun Mishra · Justice Indira Banerjee

Background

A registered society running a pharmacy college in Hyderabad applied to Jawaharlal Nehru Technological University for a "No Objection Certificate" (NOC) to start a new Diploma in Pharmacy course, but the University refused based on a State government policy declaring a "holiday" on new technical institutions/courses because existing seats in the region (30 of 36 pharmacy colleges in the state were already in Hyderabad) were going vacant. The college challenged the refusal and certain affiliation regulations before the High Court, which upheld the regulations' validity but held the government's "no new courses" policy was not authorized by the relevant education statute, and directed the University to grant the NOC. The University appealed.

Decision Breakdown

The Supreme Court held that the State and University do have the power under Section 20 of the Telangana Education Act, 1982 to regulate the opening of new institutions/courses based on genuine educational need and saturation of an area, relying on its own earlier precedent (Government of A.P. v. J.B. Educational Society) upholding the pari materia Andhra Pradesh provision. Given that 30 of 36 pharmacy colleges in the state were already concentrated in Hyderabad city alone, the government's policy decision not to permit a new course there was a legitimate exercise of that power rather than an arbitrary "holiday." The Court distinguished the respondents' cited precedents as dealing with different statutory schemes or different facts, and held the High Court was wrong to direct grant of the NOC. The appeal was allowed and the High Court's judgment quashed.

Lesson Learnt

A university or State education authority can lawfully refuse permission for a new educational course or institution in a locality that is already saturated with similar institutions, where the governing statute permits regulation based on genuine educational need: this is not an arbitrary restriction on starting new colleges.

Official source (sci.gov.in)View Judgment (PDF)

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