AHMEDABAD MUNICIPAL CORPORATION AND ANR.versusNILAYBHAI R. THAKORE AND ANR.

     AHMEDABAD MUNICIPAL CORPORATION AND ANR.                                    A
                          v.
          NILA YBHAI R. THAKORE AND ANR.

                            OCTOBER 13, 1999

            [V.N. KHARE AND N. SANTOSH HEGDE, JJ.]                               B

      Education-Higher Education-Admission to Professional Courses.

      N.H.L. Municipal Medical College Admission Rules: Rules 6(i) and 7.

       Medical Colleg~Admission-Eligibility-"Local students"-Defini-             C
tion of-Restricted to students of schools situated within municipal
area-Municipal Corporation managed, administered and financed a Medical
College-Only "local students" allowed admission-Those students who
passed from schools situated within Urban Development Area not considered
as "local students" and, therefore, denied admission-Validity of-Held :          D
Classification based only on location of the educational institution is not
reasonable and has no nexus with the object to be achieved-Such Rules are,
there/ore, arbitrary-However, such Rules need not be struck down as that
would allow admission to all eligible candidates in the country which is
against the very object of the running of the Medical College by the Corpora-
tion-The Corporation is providing medical education for the last 30 years-.:Jt   E
has also reserved 15 percent of seats to all-India merit students-Therefore,
the Rules should receive a reasonable and practical interpretation-Hence,
"local student" would also include a pennanent resident of the Municipality
who has passed from any of the high schools or colleges situated within the
Urban Development Area also-Constitution of India, 1950, Art 14.                 F
       Reservation-Undergraduate courses-Based on domicile, university or
institution-Held : Pennissible.

      Reservation-Postgraduate and superspeciality courses-Held, not per-
missible.                                                                        G
      Interpretation of Statutes:

      Subordinate legislation-Interpretation-Practical and reasonabl~
Rule of-Held, where declaring a rule ultra vires leads to considerable damage
to the cause for which it is enacted, Court should iron out the creases in the   H
                                     647
    648                   SUPREME COURT REPORTS (1999] SUPP. 3 S.C.R.

A Rule in order to uphold its validity.
          Words and Phrases:

         "Local student"-llfeaning of-ln the context of R. 7 of the N.H.L.
    Municipal Medical College Admission Rules.
B
         The appellant-Municipal Corporation managed, administered and
  financed a Medical College for the last 30 years and reserved 15 percent
  of the seats for all-India merit students. Rule 7 of the N.H.L. Municipal
  Medical College Admission Rules defined a "local student" as a student
  who had passed the SSC/New SSC examination and the qualifying ex-                      r
C amination from the institutions situated within the limits of the Municipal
  corporation. As per this Rule, only those students who qualified from
  educational institutions situated within the municipal limits would be
  eligible to be treated as local students. While the permanent resident
  students of the city who for fortuitous reasons happened to acquire
D qualification from educational institutions situated just outside the
  municipal limits, namely, Urban Development Area would not be eligible
  for being treated as local students.

           The respondents challenged Rules 6(i) and 7 of the Rules on the
    ground that the said Rules which define "the local students" are un-
E   reasonable, illegal, illogical, irrational and violative of Articles 14 and 15
    of the Constitution. The High Court held the impugned Rules as violative
    of article 14 of the Constitution and, accordingly, struck down the same.
    Hence this appeal.

          Allowing the appeal, this Court
F
          HELD 1.1. So far as undergraduate courses are concerned, the
    reservation based on domicile, university · or institution is permissible
    provided the said reservation is not wholesale. [653-C]

G        D.P. Joshi v. State of Madhya Bharat, [1955) 1 SCR 1215, D.N.
    Chanchala v. State of Mysore, [1971) Suppl. SCR 608, Jagadish Saran v.
                                                                                     .       ,

    Union of India, [1980) 2 SCC 768 and Dr. Pradeep Jain v. Union of Jndia,
    [1984) 3 SCR 942, relied on.
                                                                                     ... ,
       1.2. With regard to postgraduate and superspecialities this Court
H has prohibited any reservation whatsoever. [653-D)
               AHMEDABAD MUNICIPAL CORPN. v. NILAYBHAI                       649

           State of Rajastha!f v.. Dr. Ashok Kumar Gupta, [1989] 1 SCC 93,
     Dinesh Kumar v. Motilal Nehru Medical College, (1986] 3 SCR 345;
     Municipal Corporation of Greater Bombay v. Thukral Anjali Deo Kumar,
     [1989] 2 SCC 249; P.K. Goyel v. U.P. Medical Council, [1992] 3 SCC 232
     and Gujarat University v. Rajiv Gopinath Bhatt, [1996] 4 SCC 60, relied on.

            2.1. The object of N.H.L. Municipal Medical College Admission Rules B
     is to provide medical education to the stuaents of the city who have ac-
     quired the necessary qualification, their selection being based on merits. If
     that were the object it cannot be said that a classification based only on the
     location of the educational institution within or outside the municipal area
     is a reasonable classification. The object of catering to the needs of the    c
     students of the city would be defeated by restricting the definition of "local
     student" to those students who have acquired their qualification from
     institutions situated within the Municipal area, because as has happened
     in this c:ise, the actual resident students of the municipality whose parents
     would have contributed towards the revenue ·or the Municipality who for
     reasons beyond their control or otherwise, had acquired their qualification D
     from institutions situated just outside the Municipal area i.e., within the
     Urban Development Area, would be denied the benefit of admission to the
     college which is run by the Municipality. Confining the definition of "local··
     student" to only those students who had acquired the qualification from
     educational institutions situated within the local area creates an artificial
                                                                                      E
     distinction from amongst the students who are residents of the city and
     those who may not be the residents of the city but who have studied in
     educational institutions situated in the Municipal· Corporation limits.
     There is no nexus in this type of classification with the object to be achieved.
     The Municipality cannot refuse the benefit of its services to a permanent"
     resident of the city who resides within the Municipal limits but is employed F .
                                   .
     within the Urban Development Area only on the ground that he is employed .
                                                                     ' .
     in the Urban Development Area. Similarly, if the object of the Rule is to
     provide medical education to the students of the city because of its
     municipal obligations then a differentia within the class of students of the
     city on the basis of their acquiring qualifications from the schools within G ·
     the Municipal limits or within the limits of the Urban Development Area
     would be arbitrary and violative of Article 14.
                                              [653-G; H; 654-A; B; C; D; E; F]
..        Mohan Bir Singh Chawla v. Punjab University, [1997] 2 SCC 171; P.
     Rajendran v. State of Madras, AIR (1968) SC 1012; Sanjay Ahalawat v.          H
     650                    SUPREME COURT REPORTS [1999] SUPP. 3 S.C.R.

A Maharishi Dayanand University, [1995] 2 SCC 762 and Jagadish Saran v.
     Union of India, [1980] 2 SCC 768, referred to.

           2.2. However, this does not mean that a student who claims to be an
     original resident of the city studying anywhere in the State or outside can
     claim the benefit of a 'local student' because that case does not fall within
B    the abovesaid classification. [654-G]

           2.3. The High Court was justified in coming to the conclusion that the
     classification made under Rule 7 of the impugned Rules amounts to an
     arbitrary classification, hence, cannot be sustained in law.[654-H; 655-A]
c           3.1. It is not the jurisdiction of the court to enter into the arena of
     the legislative prerogative of enacting laws. However, keeping in mind the
     fact the Rule in question is only a subordinate legislation and by declaring
     the Rule ultra vires, as has been done by the High Court, this Court would
     be only causing considerable damage to the cause for which the
'D   Municipality had enacted this Rule. Therefore, with a view to iron out the
     creases in the impugned Rule which offends Article 14, Rule 7 has to be
     interpreted as follows : "Local student means a student who has passed
     SSC/New ~SC examination and the qualifying examination from any of the
     High Schools or Colleges situated within the Ahmedabad Municipal Cor-
E    poration limits and includes a permanent resident student of Ahmedabad
     Municipality who acquires the above qualifications from any of the High
     School or College situated within the Ahmedabad Urban Development
     Area." [655-E; F 656-B; C]

             M. Pentiah v. Muddaa Veeramallappa, AIR (1961) SC 1107, S.Gopal
F Reddy v. State of A.P. AIR (1996) SC 2184, referred to.

             Seaford Coult Estates Ltd. v. Asher, [1994] 2 All ER 155, referred to.

          3.2. The validity of Rule 6 is upheld as it stands and the validity of
G    Rule 7 is upheld as interpreted.

             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5989 of
     1999.

             From the Judgment and Order dated 12.5.99 of the Gujarat High
H Court in S.C.A. No. 3360 of 1999.
  AHMEDABAD MUNICIPAL CORPN. v. NILAYBHAI [SANTOSH HEGDE, J.) 651

      K.N. Rawal, Additional Solicitor General, H.S. Parihar, P.S. Parihar   A
for the Appellants.

     P.H. Parekh for the Respondents.

     The Judgment of the Court was delivered by
                                                                             B
     SANTOSH HEGDE, J. Leave granted.

    • Heard -learned counsel for the parties.

       Before the High Court of Gujarat, the respondents herein challenged .
the constitutional validity of Rule 6(i) and Rule 7 of the Rules for Admis- C
sion to Smt. N.H.L. Municipal Medical College on the ground that the said
Rules which define "the local students" are unreasonable, illegal, illogical,
irrational and violative of Articles 14 and 15 of the Constitution 0f India.
They further prayed for a writ of mandamus or a writ in the like nature
directing the respondents to consider the case of the students who are D
residing in the Emits of Ahmedabad Municipal Corporation and who have ·
passed the qualifying examination from the School(s) situated within the
limits of Ahmedabad Urban Development Area (hereinafter reffered to as
"AUDA") for admission in the Medical College referred to above as local
students. The cause for filing the said writ petition was that Rules 6 and 7 ·
of the said Rules prevented the students who are residents of Ahmedabad E
city but who had acquired their qualification for admission from the
educational institutions situated within the AUD A from being treated as
"local students".

      The respondents in their counter affidavit in the writ petition had F
contended that the medical college in question was managed and ad-
ministered by the Ahmedabad Municipal Corporation and was also
financed from the municipal funds. Therefore, it was competent for the
Municipal Corporation to define the source of admission in respect of the
college administered· and. managed by· it. It contended that in view of the
law laid down by this Court in numerous judgments, it had made provisions G
for admission to 15 percent of the seats available in the said colleges to be
reserved for all India candidates. The Rule confining ad;russion to the
students who have studied in. educational institutions within the Ah-
medabad Municipal Corporation was a reasonable. Rule inasmuch as the
Municipal Corporation which manages the medical college was responsible H
    652                   SUPREME COURT REPORTS [1999] SUPP. 3 S.C.R.

A for providing medical education to the said students.

           The High Court of Gujarat vide its judgment dated 12.5.1999 allowed
  . the said writ petition following the judgments of this Court in the cases of
    Mohan Bir Singh Chawla v. Panjab University, Chandigarh & Anr., [1997] 2
B sec 171, P. Rajendran Etc. V. State of Madras & Ors., AIR (1968) S.C.1012,
   Dr. Pradeep Jain Etc. v. Union of 1ndia & Ors., [1984] 3 SCR 942 and two
    other judgments of its own court holding that the object of the admission
    rules is to secure the best available students and the classification on the
    basis of the students having passed their SSC/new SSC examinationrand
    the qualifying examination from the institutions within the local limits of
C Ahmedabad has no reasonable nexus with the object sought to be achieved
    by the admission rules for selecting the best candidates for admission to
    the medical college. Such a clqssification on the basis of attending the
    school or college within and outside the Corporation limits is not ·a
    reasynable classification in the context of admission to medical college. It
D further held that the classification is not on the basis of residence nor in
    respect of students of a particular university, therefore, distinguishing the
   judgments of this Court in Sanjay Ahlawat v. Maharishi Dayanand Univer-
   sity, Rohtak & Ors., [1995] 2 SCC 762 and Jagadish Saran v. Union of India,
    [1980] 2 SCC 768 held the impugned rules as being violative of Article 14
    of the Constitution of India and, accordingly, struck down the same.
E
          It is. argued before us by Mr. K.N. Rawal, learned Additional
    Solicitor General, on behalf of the appellants that the medical college in
    question was established and is being managed by the Ahmedabad
    Municipal Corporation from out of its own funds and the Rules in question
p   were framed nearly three decades ago and in consonance with the direc-
    tions issu.ed by this Court, in the case of Dr. Pradeep Jain (supra) 15
    percent of the seats have already been reserved for all-India candidates.
    Therefore, having made such reservation, it is open to the Municipal
    Corporation under the powers vested in it under Section 66(21) of the
    Bombay Provincial Municipal Corporation Act, 1949 to frame the im-
G   pugned rules which is done to fulfil its obligations towards the students
    who have studied in the educational institutions situated in the Ahmedabad
    Municipal Corporation limits.

        Mr. P.H. Parekh, learned counsel representing the respondents, per
H contra argued that the rules have made an artificial distinction based on
   AHMEDABAD MUNICIPAL CORPN. v. NILAYBHAI [SANTOSH HEGDE, J.] 653

 the institution in which the students have studied which classification being   A
 arbitrary is opposed to Article 14 of the Constitution of India. Hence the
 High Court was justified in declaring the impugned Rules as ultra vires of
 the Constitution.

        So far as the constitutionality of various rules pertaining to admis-
  sions to undergraduate courses in educational institutions is concerned, it    B
  is now well-settled in view of a large number of judgments of this Court in
  D.P. Joshi v. The State of Madhya Bharat & Anr., [1955] 1 SCR 1215, D.N.
  Chanchala v. State of Mysore & Ors. etc., [1971] Suppl. SCR 608, Jqgadish
  Saran and Dr. Pradeep Jain (supra) wherein it is held that so far as
  undergraduate courses are concerned, the reservation based on domicile,        C
. university or institution are permissible provided the said reservations are
  not wholesale.

       With regard to postgraduate and super-specialities, this Court has
 prohibited any reservation whatsoever as in the cases of State of Rajasthan
 v. Dr. Ashok Kumar Gupta, [1989] 1 sec 93, Dinesh Kumar & Ors. v. D
 Motilal Nehru Medical College, Allahabad & Ors., [1986] 3 SCR 345,
 Municipal Corporation of Greater Bombay v. Thukral Anjali Deokumar,
 [1989] 2 SCC 249, P.K Goyel v. U.P. Medical Council, (1992] 3 SCC 232
 and Gujarat University v. Rajiv Gopinath Bhatt & Ors., [1996] 4 SCC 60,
                                                                                 E
       But the question in this case is slightly different from the law laid
down in the above-cited cases. Under Rule 7 of the impugned Rules, "a
local student" is defined as a student who has passed SSC/New SSC
examination and the qualifying examination from any of the High Schools
or Colleges situated within the Ahmedabad Municipal limits. As per this
Rule, it is only those students who qualify from educational institutions F
situated within the municipal· limits who will be eligible to be treated as
local students. While the peqnanent resident students of Ahmedabad city
who for fortuitous reasons, as stated above, happen to acquire qualification
from educational institutions situated just outside the municipal limits,
namely, AUDA, will not be eligiblefor being treated as local students. The G
object of the Rule is to provide medical education to the students of
Ahmedabad who have acquired the necessary qualification, their selection
being based on merit. If that be the object, can it be said that a
classification based only on the location of the educationaLinstitution
within or outside the municipal area be a reasonable classification ? In our H
     654                   SUPREME COURT REPORTS [1999] SUPP. 3 S.C.R.

A opinion, the answer should be in the negative. In the counter affidavit filed
   on behalf of,the Ahmedabad Municipality in the writ petition, it is stated
   that the medical college in question was established to cater to the needs
   of the students of Ahmedabad city. lf that be th~ object, in our opinion,
   the same would be defeated by restricting the definition of "local student"
B to those students who have acquired their qualification from institutions
   situated within tlie Ahmedabad Municipal area, because as has happened
 · in this case, the actual residents students of the municipality whose parents
   would have contributed towards the revenue of the Ahmedabad
   Municipality who for reasons beyond their control or otherwise, had
C acquired their qualification . from institutions situated just outside
   Ahmeda?ad Municipal area i.e., within the AUDA, would be denied the
   benefit ofadmi~sion to the college which is run by the Ahmedabad
   Municipality. In our opinion, confining the definition of "local student" to
   only those ~tudents who acquired the qualification from educational
   institutions situated within the local area creates an artificial distinction
D from amongstthe students who are residents of Ahmedabad city and those
   who may not be the residents of Ahmedabad city but who have studied in
   educational institutions situated in the Ahmedabad Municipal Corporation
   limits. We do not find any nexus in this type of classification with the object .
   to· be achieved. Let us test the logic of this rule with reference to a
E permanent resident of Ahmedabad who resides within the Ahmedabad
   Municipal limits but is employed within AUDA. Can the Municipality
   refuse the benefit of its services to such a resident of the city only on the
   ground that he is employed in AUDA ? The answer again can only be NO.
    Similarly, if the object of the rule is to privide medical education to the
p students of Ahmedabad because of its municipal obligations then a
    differentia within the class of students of Ahmedabad on the basis of their
    acquiring qualifications from schools within Ahmedabad Municipal limits
    or within the limits of AUDA would be arbitrary and violative of Article
    14.

G          By this conclusion of ours we do not mean that a student who claims ·
     to be an original resident of Ahmedabad studying anywhere in the State of
     Gujarat or outside can claim the benefit· of a "local student" because that
     case does not fall within the classification discussed by us hereinabove.-

ij         Therefore, we are of the opinion that the High Court was justified
  AHMED ABAD MUNICIPAL CORPN. v. NILAYBHAI [SANTOSH HEGDE, J.] 655

in coming to the conclusion that the classification made under Rule 7 of          A
the impugned Rules amounts to an arbitrary classification, hence, cannot
be sustained in law.

       Though the High Court was right in coming to the conclusion that
the Rule in question does suffer from an element of arbitrariness, we are
of the opinion that the remedy does not lie in striking down the impugned
                                                                                  B
rules existence of which is necessary in the larger interest of the institution
as well as the populace of Ahmedabad Municipal Corporation. The striking
down of the rule would mean opening the doors of the institution for
admission to all the eligible candidates in the counry which would definitely
be opposed to the very object of the establishment of the institution by a        c
local body. It is very rarely that a local body considers it as its duty to
provide higher and professional education. In this case, the Municipality
of Ahmedabad should be complimented for providing medical education
                               •J
to its resident students for the last 30 years or more. It has complied with
its constitutional obligation by providing 15 percent of the seats available      D
to all-India merit students. Its desire to provide as many seats as possible
to its students is a natural and genuine desire emanating from its municipal
obligations which deserves to be upheld to the extent possible. Therefore,
with a view to protect the laudable object of the Municipality, we deem it
necessary to give the impugned Rule a reasonable and practical interpreta-
tion and uphold its validity.                                                     E

       Before proceeding to interpret Rule 7 in the manner which we think
 is the correct interpretation, we have to bear in mind that it is not the
jurisdiction of the court to enter into the arena of the legislative prerogra-
tive of enacting laws. However, keeping }rt mind the fact that the Rule in F
question is only a subordinate legislation and by declaring the Rule ultra
vires, as has been done by the High Court, we would be only causing
considerable damage to the cause for which the Municipality had enacted
this Rule. We, therefore, think it appropriate to rely upon the famous and
oft-quoted principle relied by Lord Denning in the case of Seaford Cowt
Estates Ltd. v. Asher, [1994] 2 All ER 155 wherein he held : "When a defect G
appears a judge cannot simply fold his hand and blame the draftsman. He
must set to work on the constructive task of finding the intention of
Parliament and. then he must supplement the written words so as to give
'force and life' to the intention of the Legislature. A judge should ask
himself the question how, if the makers of the Act had themselves come H .
    656                   SUPREME COURT REPORTS [1999] SUPP. 3 S.C.R.

A across this ruck in the texture of it, they would have straightened it out ?
  He must then do as they would have done. A judge must not alter the
  material of which the Act is woven, but he can arid should iron out the
  creases". This statement of law made by Lord Denning has been consis-
  tently followed by this Court starting in the case of M. Pentialz & Ors. v.
B Muddala Veeramallappa & Ors., AIR (1961) SC 1107 and followed as
  recently as in the case of S. Gopal Reddy v. State of Andlzra Pradesh, AIR
  (1996) SC 2184 at p. 2188. Thus, following the above Rule of interpretation
  and with a view to iron out the creases in the impugned Rule which offends
  Article 14, we interpret Rule 7 as follows : "Local student means a student
  who has passed H.S.C./New S.S.C. examination and the qualifying examina-
C tion from any of the High Schools or Colleges situated within the Ah'
  medabad Municipal Corporation limits and includes a permanent resident
  student of Ahmedabad Municipality who acquires the above qualifications
  from any of the High School or College situated within Ahmedabad Urban
  Development Area."

D         For the reasons stated above, this appeal is allowed, ~etting aside the
    judgment and order of the High Court of Gujarat in SCA No. 3360/99, and
    the validity of Rule 6 is upheld as it stands and the validity of Rule 7 is
    upheld as interpreted hereinabove.

    v.s.s.                                                      Appeal allowed