Holding

A circular issued by the State without legislative backing cannot effect a lawful take‑over of schools, and the State is not estopped from revisiting its policy on recognition and regularisation of teachers.

Summary

The State of Bihar launched a scheme to establish "Project Schools"—including at least one girls' high school in each block of backward areas—through circulars and a three‑man committee. Disputes arose over whether the identified schools were taken over by the State, whether they should be treated as nationalised schools, and the number of teaching posts (five versus nine) and qualifications required for teachers. The High Court held that 300 schools had been selected and that nine posts were required, but the State appealed, arguing lack of statutory authority for a takeover and that the circulars were not binding. The Supreme Court held that education is a fundamental right, that the State’s policy must be implemented in accordance with constitutional provisions, and that a circular cannot effect a lawful takeover without legislation; thus the State could not be estopped from revisiting its policy. The Court directed the Chief Secretary to constitute a committee to re‑examine school recognition, teacher qualifications, and regularisation, and to report within four months, while leaving the State free to take appropriate action.

Issues considered

The legality of the State's "take over" of Project Schools without a specific statute.
Whether the circulars issued by the State constitute a binding decision for regularisation of teachers' services.
The applicability of the rule of equitable estoppel against the State in the context of constitutional and statutory provisions.
The correct number of sanctioned teaching posts (five versus nine) and the qualifications required for teachers in Project Schools.
The State's duty under Articles 14, 15(3), 16 and 19(1)(g) to provide education and affirmative action for women and children.

Legislation cited

Essential Commodities Acts. 1955

Subjects

educationproject schoolsregularisationtake overconstitutional lawArticle 14Article 15(3)Article 16Article 19(1)(g)Article 300Aequitable estoppelaffirmative actionstate policyteacher recruitmentpublic interesteminent domain

Judgment

A STATE OF BIHAR AND ORS.
v.
PROJECT UCHCHA VIDY A, SIKSHAK SANGH AND ORS.

JANUARY 3, 2006
l

B [S. B. SINHA AND P.P. NAOLEKAR, JJ.]

Constitution of India, 1950:

Articles 14, 15(3), 16, l9(1}(g), 19(6) and 309-- 'Project Schools' in State
C of Bihar-Establishment, identification and recognition of-State intending to
establish at least one Girls High School in each block ofeducationally backward
areas--Some schools established, identified and recogni:::ed--These schools
were not lo be treated as nationalized schools~'laim by teachers of such
schools for payment of salaries and regularization of their services-Number
D of Schools and number of teachers in such schools disputed-Held, education
as a part of human development is a human right-Woman and children
require special treatment and, therefore, protective discrimination and
affirmative action were contemplated in terms of Article 15(3)-State
Government would corzs.titute a Committee to consider the claims regarding
recognition. actual number of such schools, educational qualification of the
E teachers as also recruitment of teachers where ad hoc teachers were appointed

Articles 162, 166 and 300-A:

Educational institutions- '"Takeover" of by State Governme111-
ldentificalion of High Schools as 'Project Schools' in State of Bmar-
F Recognition of-Such Schools not to be treated as nationalized schools-No
statute enact~d nor Rules framed laying down the modalities for taking over
the properties and management together with teaching and non-teachiltg staff
of such schools--Held, in the instant case word "mkeover" has been used
loosely-A circular letter issued by an officer of the State Government without
G fi1/jilling the mandatory provisions of Articles 162 and 166 cannot he
categori:::ed as a decision by the State-Doctrine of 'eminent domain'.

Education/Educational Institutions:

'Recognition' of Schools and 'regularisation' of services of teaching
H 14
STATE OF BIHAR ,,_ PROJECT UCHCHA VIDYA, SIKSHAK SANGH IS
and non-teaching staff-Directions given to consider the claims regarding A
recognition to the institutions.

Administrative Law:

Equitable estoppel-Held, rule of estoppel has no application if by reason
of a constitutional provision State's action cannot be supported or State intends B
to withdraw or modifY a policy decision-legitimate expectation.

Words and Phrases:

Words 'regularization' and 'take over '-Connotation of in the context
of regularization of services of educational institutions. c
With a view to combat illiteracy. in comparatively educationally
backward areas of State of Bihar, the State Government issued circular
No. 1115 dated 27.5.1981 laying down a policy decision that in the
remaining years of the sixth Five Year Plan period, i.e. 1981-82 to 1984-
85, the State would achieve a target of establishing four High Schools out D
of which one would be Girls High Sc~ool in every block. Such schools were
to be known as Project Schools. During the years 1981-82, some schools
were established. In order to achieve the target a three-man Committee
was constituted for identification of the existing schools as Project Schools.
Certain schools were recognized in the year 1985. These schools were not E
to be treated in the category of nationalized schools for management
purposes and a formal notification was to be issued declaring control of
management of such schools by the Government.

During the P.eriod between 1992 and 1997 a number of writ petitions
were filed in the High Court seeking directions, inter alia, for payment of F
salaries of teaching and non-teaching staff of 300 schools purported to be
selected as Project Schools. Ultimately the matter was heard by a Full
Bench of the High Court which held that there remained no controversy
as regards establishment/selection of 300 project schools, and the nuiTiber
of teach"-rs in each schools would constitute 9. The High Court also made
observations regarding age and educational qualification of teaching and G
l, non-teaching staff. Present appeals were filed both by the State as also on .
behalf of the teachers, questioning the judgment of the Full Bench of the
High Court.

The stand of the State before the High Court as also before the H
16 SUPREME COURT REPORTS [2006] I S.C.R.

A Supreme Court was that the three-man Committee was appointed for the
purposes of identification of the Schools, which were situated in various
blocks, as Project Schools. The controversy between the parties was with
regard to questions: whether the schools were to be recognized or the
schools alongwith its management had been taken over; whether
management of the schools continued to be in the private hands and the
B State only intended to pay salaries of teachers whether the properties
belonging to the Managing Committees of erstwhile schools vested in the
•
State of Bihar; whether 5 or 9 posts were recognized in the Project Schools.

Disposing of the appeals, the Court
c HELD: 1.1. Imparting education is the primary duty of the State.
Although establishment of High Schools may not be a constitutional
function in the sense that citizens of India above 14 years might not have
any fundamental right in relation thereto, but education as a part of
human development indisputably is a human right. The framers while
D providing for equality clause under the constitutional scheme had in their
mind that women and children require special treatment and only in that
view of the matter protective discrimination and affirmative action were
contemplated in terms of clause (3) of Article 15 of the Constitution of
India. 141-A-CJ

E 1.2. The State of Bihar framed the scheme having constitutional goal
in mind. However, the shifting of stand by the State is apparent. Whereas
the main scheme framed in the year 1981 postulated establishment of
schools by itself and that too in the most backward areas of the then State
of Bihar, namely, Chhotanagpur and Santhal Pargana, the facts clearly
F show that the main purpose for which the said scheme was formulated
had been greatly deviated from. Instead and in place of establish in& more
and more girls schools in Chhotanagpur and Santhal Pargana regions,
more and more schools were sought to be established in other parts of
the State as well. Further, whereas emphasis was laid on sp eading of
education amongst women by establishing at least one Girls High School
G in each identified block, for all intent and purport a shift was made
towards Boys High Schools. 141-C-D; 43-DI

1.3. The State in implementation of the scheme failed and/or
neglected to adhere to one stand. It although took a categorical stand that
Project Schools would not be in the category of nationalized schools or
H
STATE OF BIHAR 1·. PROJECT UCHCHA VIDYA SIKSHAK SANGH 17
"' government schools, but while identifying and selecting private schools for A
recognition thereof funds were also allotted for construction of buildings.
The State Government took different stands at different point of time. It
~ is not clear as to how many schools were constructed by the State itself
or how many of them had been constructed with public assistance and/or
how many of the schools were identified and proposed to be recognized/
taken over. 141-F, H; 42-AI B
•.
2.1. So far as taking over of the services of the teaching and non-
teaching staff of the Project Schools and claim regarding regularization
of their services is concerned, it must be seen that the expression
'regularization' has a definite connotation. Regularization of services must
precede a legislative act or, in absence of legislation, rules framed in terms
c
of proviso appended to Article 309 of the Constitution. Besides, in absence
of any policy decision of the State regarding taking over of Schools, it
cannot be said that services of teaching and non-teaching staff had been
\ taken over whether along with properties of such schools or not, so as to
enable the courts to arrive at a definite conclusion that teaching and non- D
teaching staff for all intent and purport have become employees of the
State. 144-B; 44-FI

State of UP v. Neeraj Awasthi, (2005) 10 SCALE 286, relied on.

2.2. It is one thing to say that the Management of the school has been E
taken over together with the services of the teaching and non-teaching staff
and it is another thing to say that the State has recognized the schools
and is bound to pay the salary of such teaching and non-teaching staff on
the same scale and pay as it has been paying to its own teachers. In case
of nationalization of schools, furthermore in terms of the provisions of the
F
statute itself, the educational qualification as also other qualifications for
taking over the services of the teachers would be laid down. In absence of
any such legislation, it was expected of the State to lay down such criteria
in clear terms by way of policy decision or guidelines not only for the
purpose of letting the teachers know as to where they stand but also for
the purpose of determining as to whether such teachers are available in G
_j the schools who are entitled to salaries and other emoluments payable to
'
them by the State. If new schools were established, indisputably teaching
and non-teaching staff thereof were required to be appointed through
Vidyalaya Sewa Board in conformity with the existing rules as well as
Articles 14 and 16 of the Constitution oflndia. It is, thus, not a case where
H
18 SUPREME COURT REPORTS [2006] I S.C.R.

A the concept of regularization could have been invoked. [44-G-H; 45-A-BI
2.3. In the matter of schools which were said to have been established
by way of public participation, the Circular letter except mentioning that
such schools can be established also by public participation did not indicate
as to what were the roles to be played by the members of public. Besides,
B it is evident that a large number of schools were still to be identified or
their identity is not known or building was yet to be constructed. A school
could not be said to have been taken over where the identity of the land
is not known or where no building is in existence. [45-E; 46-A]

3. t. The word 'take over' would mean that the Government had
thought of taking over of the properties and assets of the schools together
with teaching and non-teaching staff. Take over of schools in the context
of the policy decision of the State does not appear to be an expression of
an intendment for complete take over of the management of the school.
In the former sense take over of sueh schools would be violative of Article
D 300-A of the Constitution of India. The right to manage an institution is
also a right to property. Article 300-A embodies the 'doctrine of eminent
domain' which comprises of two parts, (i) acquisition of property in public
interest; and (ii) payment of reasonable compensation therefor. (49-F]

Jilubhai Nanbhai Khachar and Ors. v. State uf Gujarat and Anr., (1995)
E I Supp. 596, relied on.

Bishambhar Dayal Chandra Mohan and Ors. etc. v. State of U.P. and
Ors. etc., [1982] I SCC 39, referred to.

3.2. Establishment and management of an educational institution is
F a part of fundamental right being a right of occupation as envisaged under
Article 19(1)(g) of the Constitution. A citizen cannot be deprived of the
said right except in accordance with law. The requirement of law for the
purpose of clause (6) of Article 19 can by no stretch of imagination be
achieved by issuing a circular or a policy decision in terms of Article 162
G of the Constitution or otherwise. Such a law, it is trite, must be one enacted
by legislature. [50-H; 51-A-B[

T.M.A. Pai Foundation and Ors. v. State of Karna/aka. [2002] 8 SCC
481 and State of Madhya Pradesh and Anr. v. Thakur Bharat Singh, AIR
(1967) SC 1170 (1967[ 2 SCR 454, relied on.
H
·-4
I

STATE OF BIHAR v. PROJECT UCHCHA VIDYA SIKSHAK SANGH J9
"'· Rai Sahib Ram Jawaya Kapur and Ors. v. The State of Punjab, 119551 A
2 ·scR 225, referred to.

3.3. Letter written by an authority to the private persons cannot give
rise to a legitimate expectation. In the instant case, the word 'take over'
has been used loosely. It is well settled that a circular letter issued by an
officer of the State without fulfilling the mandatory provisions of Articles B
162 and 166 of the Constitution cannot be categorized as a decision by
J
the State. 152-C-DI

Sri Dwarka Nath Tewari and Ors. v. State of Bihar and Ors., AIR (1959)
SC 249 and Union of India and Ors. v. Mis Graphic Industries Co. & Ors., C
JT (1994) 5 SC 237, relied on.

3.4. If the circular letter dod not satisfy the requirement of Article
162 of the Constitution the question of a valid take over in the sense that
the properties and/or management thereof would vest in the State of Bihar,
does not arise. Furthermore, the District Education Officer is not D
empowered to issue a notification formally taking over of management
and control and vesting the same into the State Government. In any event,
if teachers were required to be appointed in the manner laid down therein,
the management of the school could not have been taken over together
with the teaching and non-teaching staff who had already been working
therein. 152-E-FI E
4. As regards the number of Schools, various documents as also the
affidavits filed on behalf of the State in no uncertain terms show that
besides the schools which were established by the State and !Ire being run
by it, there are various other schools over which there was a dispute about
their identification. The number of the schools mentioned by either side F
may not be entirely correct but the fact remains that before the Cabinet
also, a representation was made by the authorities of the State themselves
that 300 schools are in place. It is only on that basis the Cabinet sanctioned
1200 more posts. 146-C-EI
G
5. So far as number of teachers in Project School is concerned,
whereas in respect of the schools established by the State 9 posts were
sanctioned, for the schools which were selected· for recognition I taken over
through the agency of the three-man committee, only 5 posts were
sanctioned. The State is no doubt entitled to lay down qualification or
sanction the requisite number of posts. The State is also entitled to fix the H
t
20 SUPREME COURT REPORTS [2006] I S.C.R.

A age limit of such teachers. The Cabinet itself realized that like any school
run by the Government, it is necessary to have at least 9 teachers even in
the project schools. The strength of the teachers for such schools has not
only been sanctioned, sanction therefor was given with retrospective effect ,,
and retroactive operation. Necessary funds were allocated for the said
purpose. Therefore, the finding of the High Court that the State was bound
B to recognize at least 9 teachers in each school does not require elaborate
consideration as the State Government has now sanctioned 4 additional
posts with retrospective effect. [47-B-E; G-H; 48-CI

6. As regard minimum age of the teaching and non-teaching staff,
c indisputably the same should be 18 years. [55-BI

7. So far as educational qualification of the teaching staff is
concerned, having regard to the fact that the limited number of teachers
were to be appointed with a view to accomplish a constitutional goal of
spreading literacy in the villages, particularly amongst the girls, the
D standard adopted in Zila Schools or Government Schools constituted in
urban areas may not be insisted upon, as was observed by the High Court;
but keeping in view the fact that it is essentially a Government function,
the question as to whether some teachers having B.T. training or training
in Physical Education would be allowed to continue in the said Project
Schools or not is left to the State, wherefor a decision in accordance with
E law may be taken. [55-CI

8.1. Even if there is no dispute as regards number of schools, in view
of the stand taken by the State and particularly in view of the fact that it
appears from the records that recognition of the school, if any, had
wrongly been granted to some schools where buildings were also not
F
completed or the process of selection was also not over, it may be necessary
for the State to have a further look in the matter, and the question as to
how many schools fulfill the criteria must be considered afresh. It is
furthermore necessary to scrutinize as to whether the teaching and non-
teaching staff appointed for the said purpose fulfill the criteria in terms
G of the policy decision of the State or not. Their qualifications laid down
under other relevant statutes for the purpose of obtaining permission must k

also be scrutinized. [52-G-H; 53-A[

8.2. It can not be said that the principle of equitable estoppel would
apply against the State of Bihar. It is now well known, the rule of estoppel .:m
H
21
,,.
STATE OF BIHAR 1·. PROJECT UCHCHA VIDYA SIKSHAK SANGH
'

has no application where contention as regard constitutional provision or A
a statute is raised. The right of the State to raise a question as regards its
actions being invalid under the constitutional scheme of India is now well
recognized. If by reason of a constitutional provision, its action cannot be
supported or the State intends to withdraw or modify a policy.decision,
no exception thereto can be taken. 153-B-CI
B
8.3. It is, however, one thing to say that such an action is required
to be judged having regard to the fundamental rights of a citizen but it is
another thing to say that by applying the rule of estoppel, the State would
not permitted to raise the said question at all. So far as the impugned
circular dated 18.02.1989 is concerned, the State has, a right to support C
the validity thereof in terms of the constitutional framework. 153-DI

8.4. It is not clear whether all correct facts have been placed before
the Cabinet or not particularly in view of the fact that many of the schools
which were established in Chhotanagpur and Santhal Pargana are now
1. in the State of Jharkhand; and whether apart from the schools which had D
been identified by the three-man committee and admittedly recognized by
the State, any final decision had been taken as regard recognition or
otherwise of the remaining schools by the appropriate authority .
. Therefore, a committee should be constituted for the said purpose. The
Chief Secretary of the State of Bihar is, therefore, requested to constitute
a committee comprising of two officers and one Educationist of repute and/ E
or a retired Judicial officer. In the event a Judicial Officers is appointed
as a member of the committee, he would be the chairman thereof.
Remuneration of the Judicial Officer and/or the Educationist shall be
determined by mutual agreement. In the event it is found that teachers
have been appointed on ad hoc basis, the Vidayalay Sewa Board shall be F
directed to make regular recruitment strictly in accordance with law.
153-E-H; 54-A, Bl

8.5. The Committee shall also deal with all such individual cases of
.the Appellants, as has been directed in para 35 of the judgment of the High
Court. All the educational institutions claiming recognition or having any G
other claims would file their representations together with all supporting
.J, documents within three weeks from date. In their applications, the
institutions must also give details of the students admitted in each class
year-wise. (54-DI

8.6. The Chief Secretary would place the said report together with H
t
22 SUPREME COURT REPORTS (2006] I S.C.R.

A his comments thereupon before the appropriate authority in terms of the
Rules of Executive Business and it is expected that the said authority of
the Government of Bihar shall take appropriate decision. (54-G-H(

8.7.The State Government may take suitable action against those who
may be found responsible for commission of irregularities and/or
B illegalities in the pro~ess of implementation of the Government s.:heme in
accordance with law. (55-A[

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 6626-6675
of 200 I.

C From the Judgment and Order dated 7.12.1999 of the High Court of
Patna in C.W.J.C. Nos. 4783/96, !0397/92, 1224/94, 1772/93, 1604, 1223,
1704194, 5585of1993, 1551, 1430/94, 5116, 4145, 8492, 8499, 8858, 8498,
8720, 11924, 6293, 6777, 6164, 6817, 7239/93, 12326/92, 2752, 2371/94,
8741, 5586, 4427, 12930, 3847/93, 2725, 3064, 1705, 1549, 2676/94 and
D LP.A. 1092/1995.

WITH

Civil Appeal Nos. 6676-6681 of 2001.

Rakesh Dwivedi, Sunil Kumar. P.S. Mishra, Ravinder Srivastava B.B.
E Singh, Mrs. Sunita R. Singh, Shrish Kumar Misra V.P. Singh, lrshad Ahmad,
Anita Kanungo, Santosh Kumar, Vijay Kr. Pandey, Chandra Kant Nayak,
Rakesh K. Sharma, Ashok Mathur, Arup Banerjee, Deba Prasad Mukherjee,
D.N. Goburdhan, Ms. Pinky Anand, Ms. Geeta Luthra, Mrs. Kirti Sinha,
Ugra Shankar Prasad, Ram Sagar Singh, Kuna! Verma, Tathagat Harsh
F Vardhan, Upendra Mishra, Dhruv Kr. Jha, Amitesh Chandra Mishra, Himanshu
Shekhar, Ambhoj Kumar Sinha, Himanshu Munshi and Kamlendra Mishra
for the appearing parties.

The Judgment of the Court was delivered by

G S.B. SINHA, J. These Appeals involving common questions of law
and fact were taken up for hearing together and are being disposed of by this
common judgment. •

Introduction :

H Imparting of education is a sovereign function of the State. Article 21 A
... J

STATE OF BIHAR 1•. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA. J.] 23

of the Constitution of India envisages that children of age group 6 to 14 have A
a fundamental right of education. Clause 3 of Article 15 of the Constitution
envisages special protection and affirmative action for women and children.

Policy Decision :

Presumably, keeping in view the aforementioned constitutional scheme, B
a policy decision was adopted by the State to establish Project Schools. The
State of Bihar is comparatively considered to be educationally backward.
With a view to combat the said problem the State issued a Circular bearing
No.1115 dated 27.5.1981 laying down a policy decision therein that in the
remaining four years of sixth Five Year Plan period, i.e., from 1981-1982 to C
1984-1985 the State should achieve the target of establishment of at least
four High Schools, out of which one may be Girls High School in every
block.

The Circular letter states that according to the information received
there are many blocks where less than four schools are functioning. Out of D
587 blocks of the State 435 blocks were identified where even a single Girls
High School was not recognized. The proposed numbers of schools which
were to be opened are as under :

1981-82 150
1982-83 200 E
1983-84 200
1984-85. 100
\ Total 650
The districts of Santhal Pargana and Chhotanagpur which were thence F
part of the State of Bihar and now part of the -State of Jharkhand were to be
given priority as the said areas in educational spheres were found to be
comparatively more backward. In seven districts of the said areas, the
Government proposed to establish 299 new High Schools in 1981-82 in each
block of the said area. As it was found difficult to attain the target of
establishment of minimum four High Schools, it was observed that even if G
four High Schools are established, the students for so many schools may not
_..1, be found. In the said areas, therefore two High Schools were proposed to be
definitely established in the following terms:

"1. Santhal Pargana 15
H
24 SUPREME COURT REPORTS [2006 I I s.c. R.

A 2.
3.
4.
Ranchi
Palamu
Hazaribagh
9
9
13
,.
-
5. Giridih 4
6. Dhanbad 2
B
7. Singhbhum 13
Total 65"
It was further laid down therein that :

"4. It is expected from the District Education Officer posted in
c Chhotanagpur and Santhal Pargana area that they will prepare the list
of such blocks of their District immediately where there are less than
2 (Two) High Schools and will make such arrangement that in the
present financial year i.e. 1981-82 in their district at least two High
Schools may be established. At the time of preparing proposal for
D establishment of new High Schools priority will be given to those
High Schools which are granted permission for establishment proposed
High Schools and efforts will be made that getting all the conditions
regarding recognition completed from those High Schools, which are
accorded permission for establishment proposed High Schools only
they should be granted recognition. By doing so at least establishment
E of two High Schools could be obtained without delay. On one hand
where the High Schools are accorded permission for establishment
proposed High Schools will get recognition on the other hand the
local resources like land, building etc. could also properly be used
and the Government would get a big amount as subscription. If in
F any block then may not be schools which fine granted permission for
establishment proposed High School, then it is expected from the
District Education Officer that looking to the population distance etc.
he will propose for establishment of High School at such places where
the Government land is easily available so that the expenses to be
incurred on purchase of land could be saved. Efforts will be made to
G obtain the land and building through local efforts.

5. The State Government has also taken a decision that in the year
1981-82 in 7 Districts of Chhotanagpur and Santhal Pargana area in
those blocks one Girls High School may be established where.already
at least 3 boys High Schools are functioning. By doing so target of
H
STATE OF 131HAR 1·. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA, J] 25
establishing of at least 4 High Schools in these blocks will be achieved A
in which there would be at least one Girls High School. For obtaining
i this target in the area District-wise Girls High Schools will have to
be established in following numbers:-

Name of District Number of newly established Girls High School:
B
I. Santhal Pargana 8
2. Ranchi 8
'
J. Palamu Nil
4. Hazaribagh 5
5. Giridih 2 c
•
r
6. Dhanbad 1
7. Singhbhum 5
Total = 29"
The District Education Officers were directed to take action for D
establishment of Girls High Schools. Further decision has been taken by the
State that in Santhal Pargana and Chhotanagpur areas, 14 other High Schools
may also be established. In such blocks where at least two High Schools are
already functioning and where the local officer thinks it necessary to establish
new schools on the basis of population, area of the block such High Schools
were to be Boys High Schools in the following terms: E
I. San th a 1 Pargana 4
2. Ranchi 3
3. Palamu 2
4. Hazaribagh F
5. Giridih
6. Dhanbad
7. Singhbhum
Total= 14
G
Para 8 of the said Circular letter states that in the year 1981-82, I 08
High Schools in Santhal Pargana and Chhotanagpur areas could be established,
out of which 79 High Schools were for the boys and 29 High Schools were
for the girls.

Further, a policy decision which was taken in relation to the areas H
26 SUPREME COURT REPORTS 12006] I S.C.R.

A falling outside Santhal Pargana and Chhotanagpur, it was directed:-
"Outside Chhotnagpur and Santhal Pargana in other areas of the
State even now there are some such blocks where there is not even
a single High School or the number of schools is less than 2 in each
block. Therefore the State Government has also taken a decision that
B in the year 1981-82 in other area of the State, the following number
of High Schools will be established district-wise:

Number of District Number of Boys Schools to be newly
established

c I. Rohtas 2
2. Bhagalpur
3. Purnia 2
4. Saharsa I
5. W. Champaran 2
D 6. East Champaran
Total= 9"
33 Girls High Schools were also proposed to be established in areas
other than Santhal Pargana and Chhotanagpur where at least Boys High
E Schools are functioning. It was directed that the target of the establishment
of 150 High Schools was definitely to be achieved by the end o( the year
1981-82. By a Circular letter dated 3.9.1981 a decision was taken to establish
150 schools in the year 1981-82 whereby the District Education Officers
were directed to select the place with the sanction of the Regional Director
of Education and obtain approval of the Government.
F
Yet again in another Circular dated 21.2.1982, the mode and manner of
appointment as also the requisite qualification for recognition/regularization
of services of teachers of the Project Schools were laid down wherefor Rs.
1.5 crores was earmarked for construction of building etc.

G It is not in dispute that during 1981-82, 150 schools were established.
According to the State, the number of such schools which were established
in the first level situate in different districts of the State were as under:

Darbhanga 8
Madhubani 10
H
-
""'
STATE OF BIHAR 1·. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA, J]

Samastipur
Begusarai
Khagaria
4
2
27
A

Sitamarhi
East Cham baran- 2
B
West Champaran- 3
· Gopalganj 3
Saran 4
Muzaffarpur - 3
Pumia 3 c
Bhagalpur 4
Lohardagga i
Gum la
-\ Nalanda
D
Munger
Bhojpur 2
Santhal Pargana - 2
Palamau 4
Nawada 2 E
Gay a 4
Aurangabad
Giridih
Singhbhum
F
Patna I
Begusarai 3
linplementation of the Scheme :

It also is not in dispute that a three-man committee constituted for the
purpose of identification of the existing schools identified 57 schools. Schools G
..l so identified were recognized and the appointments of teachers were made by
the Vidyalaya Sewa Board in terms of the aforementioned letter dated
23.2.1985, the relevant clauses whereof are as under:

"(a) The first preference would be provided in the establishment of
H
28 SUPREME COURT REPORTS 120061 I S.C.R.

A schools to the Block head quarters.
(b) If there is no Girls School in block then the committee would
decide where it would be appropriate to establish schools.
(c) Where more than one su1:h schools have been established at the
block Headquarter or away then the selection of one school would
B be made from amongst them on the basis of the date of permission
given by the State Government for establishment of such schools
and superiority (sic) of physical resources of the school.
(d) Where a school established by public initiative is taken under the
project then the teachers therein would be appointed by the
c Vidya!aya Sewa Board."

On or about 4.2.1989, a circular was issued for appointment of a
competent and qualified working teaching and non-teaching staff of such
schools. Those schools were not to be treated in the category of nationalized
schools for management purposes and a formal notification was to be issued
D declaring control of management of such schools by the Government. In
private schools teachers were to be appointed by Vidyalaya Sewa Board.
There appears to be some dispute as a three-man Committee selected and
recommended for bringing them within the Project Schools. Whereas,
according to the State 57 schools were recommended, the respondents contend
E that in fact 225 of such schools were recommended. The contention of the
State is that 75 schools selected by the Government directly and 57 schools
recommended by the Committee were all private schools and had not been
established with Government funds.

It is also not in dispute that despite the fact such schools stood recognized
F in the year 1985; qualifications for teachers and strength thereof was prescribed
by a Government letter dated 04.02.1989. the relevant clauses whereof are as
under :

"(i) Such persons will be appointed as teachers in Government Service
who fulfill the following qualification the schools should have
G been opened with public co-operation and should have been
selected by three men committee as prescribed in department
letter No.142 dated 23.2.1985 and which should have obtained
the permission of establishment from the Madhyamik Shiksha
Karalaya and whose students should have been registered and set
up from the school itself for the examination conducted by Bihar
H
STATE OF BlllAR 1·. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA, J] 29

School Examination Board and the result of such student A
appearing for the Biahr Secondary Examination should have been
published in the name of school itself who should be appointed
in the sanctioned strength by the Managing Committee and
possess the requisite qualification and competitive for appointment
and should possess utility certificate for the subject in the Girl B
High school for that very subject and have got the concurrence
of Vidyalaya Sewa Board.
(ii) In the aforesaid category of the schools the appointment of the
teachers will be made on the basis of the seniority, qualification
and utility against the five sanctioned posts in the light of the C
standard strength as mentioned in para (iii)
(iii) The standard strength of teachers in such schools will be like
that made under the Govt. Circular No. 705 dated 12. 10.1982
and circular No. I027 dated 2.1LI985.

(a) Language Group-3 (Hindi-1, English- I and Sanskrit -I) D
(b) Humanity Group-3 (Home Science, Geography, Civics,
Economics and three in the light of seniority, qualification
and utility).

(c} Science Group-2 (Math-I, Biology-Chemistry-I) E
(d) Other teachers- I (Minority language, Music, Fine Arts,
Commerce, Only one in the light of seniority, qualification
and utility)."

For the purpose of appointments of such teachers, a screening committee F
consisting of the persons named therein was constituted. The age of such
trained graduate teachers was to be 31 years while those with M.Ed. degree
holders were to have the age limit of 32 years. Clause (3) of the said circular
which was basically the subject-matter of the writ petitions before the High
Court reads as under :
G
"3. The services of only such teachers will be considered for
recognition who are currently working and who are appointed by
the managing committee prior to the date of permission of
establishment or selection by Head quarter or the date of election
by the Competent committee at district level."
H
30 St;PREME COURT REPORTS [2006 I I s. c. R.

A 5 sanctioned posts for the said schools were prescribed. According to
the State in terms ot: the said 1989 circular letter, 56 schools having been
recognized, salary was being paid to the teachers thereof. However, out of
the said 56 schools. 4 schools are said to be now in the State of Jharkhand.

Writ Proceedings :
B
Teaching and non-teaching staff of several schools tiled a large number
of writ petitions before the Patna High Court during the period between 1992
and 1997, inter alia, contending that said circular letter dated 04.02.1989 is
arbitrary and discriminatory. In the said writ petitions, directions were sought
C for payment of salaries to the teaching and non teaching staff of 300 schools,
purported to have been selected in terms of the Government letter dated
12.02.1985 and 23.02.1985. Different orders were passed in the said writ
petitions, some of which were conflicting with others .. The matter ultimately
reached this Court. This Court by an order dated 23.07.1997 passed in Civil
Appeal No.10245 of 1996 and connected matters, having regard to such
D conflicting decisions, opined that the matter should be resolved by a Full
Bench of the Patna High Court.

Findings of the High Court :

E A Full Bench of the Patna High Court was, pursua,11 to the said direction,
constituted and by reason of the impugned judgment dated 07.12.1999, it was
held :

(i) Establishment/take over of the schools in question was continuous
process under the scheme framed in terms of the Government letter dated
F 27.05.1981 and it constituted a single transaction so as to avoid any
discrimination amongst the students of one area with that of another area.

(ii) The provisions governing the recognition/regularization of the
services of the teachers and payment of their salaries in respect of Project
Schools of 1981-82 would also apply to the schools selected during 1984-85.
G
(iii) In view of the unambiguous stand of the State before the High
Court, the process of selection was completed in the year 1986 and there
remains no controversy as regard establishment or selection of 300 Project
Schools during the year 1984-85.
H
STATE OF BIHAR r. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA. J] 3J
(iv) The question as regard recognition and regularization of the services A
of the teaching and non-teaching staff of the Project Schools which were
selected in the year 1984-85 was categorized as under :

(a) Sanctioned strength of the teachers in the schools;
(b) minimum qualification on the date of the appointment; B
(c) over age and under age on the date· of appointment;
(d) degree equivalence;
(e) the question with respect to the circular holding the field for
recognition/regularization of the service conditions of teaching C
and non teaching staff of all the schools for the year 1984-85;

It was inter a/ia held : In view of the ambiguity and contradictions
contained in clauses (ii) and (iii) of letter No.142 dated 04.02.1989, the
staffing pattern of the teachers would constitute 9 posts including the Head
.I
Master/Head Mistress as prescribed in the Government Circular No.705 dated D
12. I0.1982; (ii) In absence of any policy decision of the Government fixing
the cut off date for the purpose of possessing minimum qualification, it
would not be proper for the State to refuse recognition/regularization of the
services of the teachers on the ground that at the time of their appointments
by the Managing Committee of the respective schools, they were not trained
graduates; (iii) The qualifying age for.teachers of Project Schools of general
E
category would be 31 years on the date of their appointment by respective
Managing Committee of the schools; having regard to the fact that the teachers
had continuously been working in the schools for more than 17 years, they
were entitled for regularization/recognition of their services within the staffing
pattern; (iv) The minimum qualifying age for appointment wlls 18 years; (v) F
The qualification of possessing a certificate of B.T. is not at par with B.Ed.,
since any person having passed matriculation examination may appear at the
B.T. examination conducted by the Secondary School Examination Board
and can get a certificate, whereas a person is not entitled to get a degree of
B.Ed. unless he or she is a graduate. It will, however, be open to the authc.rities G
of the State Government to consider as to whether B. T. certificate can be
equated with that of B.Ed. qualification or qualification of diploma in
education.; (vi) The provisions of Circulate letter No.142 dated 04.02.1989
cannot be applied retrospectively, as the State is not empowered to alter or
modify any circular with retrospective effect to the prejudice of the rights of
the Government servants; (vii) The provisi·ons governing recognition/ H
32 SUPREME COURT REPORTS [20061 I S.C.R.

A regularization of the services of the teachers and payment of their salaries in
,... .
respect of Project Schools of 1981-82 would also apply to the case of schools
selected during 1984-85.

The Full Bench, however, was of the opinion that as it was constituted
to examine the broad proposition regarding the scope and applicability of
B different circulars issued by the State in the matter relating to implementation
of the scheme in question and the service conditions of the teaching and non-
teaching staff qua their eligibility, qualification, suitability etc., for the purpose
of regularization/rec9gnition of the service in the Project Schools, individual
cases have to be examined by the authorities of the State in terms of its
C findings, stating :
" ... Individual cases of the petitioners of course, shall be examined by
the respondent authorities in terms of the findings of this Full Bench
in these cases, as we have not been posted with the facts in detail by
the respective parties. In some of the cases State has not been filed
D counter affidavit perhaps under the impression that once this Court
decided the principle then the authority concerned would examine
individual cases and dispose it of in the light of the said principle."

It was further directed :

E "36. Accordingly, in the light of the findings recorded above, all
the writ applications are disposed of with a direction to the respondent
authorities to examine the claim of the petitioners for recognition/
absorption of their services in the respective schools. Since these
matters continued to remain pending for a long time, final
F implementation of the directions of this Full Bench should be made
within a period of four months from the date of receipt/production of
a copy of this judgment before the competent authority. However, in
the facts and circumstances of these cases, there shall be no order as
to costs."

G Appeals before this Court :
Civil Appeal Nos.6625-6675 of 2001 were filed by the State of Bihar
questioning the correctness of the said judgment, whereas Civil Appeal Nos.
668 I & 6676-78 of 200 I and Civil Appeal Nos.6679-80 of 200 I were filed,
H inter alia, questioning those parts of the judgment which were in favour of
STATE OF BIHAR r. PROJECT UCHCHA VIDYA SIKSHAK SANGH (SINHA. J) 33

~~. A
Subsequent events :

Before adverting to the questions raised in these appeals, we would,
however, notice subsequent events ·which are relevant for the purpose of
decision in the instant case. B
After the State of Bihar filed these special leave petitions, the question
as regard implementation of the impugned judgment came up for consideration
before the Cabinet. On or about 25.01.2000, the Cabinet took a decision to
create 4 additional posts of Assistant Teachers in the said 300 schools, totaling
1200 teachers which were purported to have been selected/taken over in the C
year 1984-85. It sanctioned annual expenditure of Rs.11,26,80,000/- for
payment of salaries of teachers against the 9 sanctioned posts of 300 Project
Schools.

On or about 20.11.2000, the State of Bihar has been bifurcated in two
-i States i.e. the State of Bihar anti the State of Jharkhand. According to the D
Respondents, out of 300 Project Girls High Schools selected/taken over in
the financial year 1984-85, 211 fell within the jurisdiction of the State of
Bihar and 89 had gone within the jurisdiction of the State of Jharkhand.

By a letter 04.08.2003, the State sought to recognize 151 out of 211
• Project Girls High Schools falling under the jurisdiction of the State of Bihar E
as genuine.

By a letter dated 30.03.2004, it was laid down :

"An enquiry is going on in respect of the appointment of the
teachers of the employees of different categories by the C.B.I. In F
view of a writ application bearing CWJC No.9847/98 filed in the
Hon'ble High Court, Patna. If the appointment of any employees is
found illegal after enquiry, salary already paid, will be recovered at
a time after canceling his appointment."
The Government of Bihar approved the continuance of the functioning G
of the Project Schools falling within the jurisdiction of the State

Submissions :

On behalf of the State :

Mr. Rakesh Dwivedi, the learned Senior Counsel appearing on behalf H
34 SUPREME COURT REPORTS (2006] I S.C.R.

A of the State of Bihar, submitted:
(i) The High Court committed a manifest error in arriving at a conclusion
that the State had taken over 300 schools as Project Schools in the year 1984-
85, although , in fact only 132 schools were taken over. Our attention, in this
behalf, has been drawn to the counter affidavit filed by the teachers who
B were said to have admit~ed that except 75 selected schools, the others were
proposed schools, and those 75 schools would be deemed to have been taken
over.

(ii) Reliance placed by the Respondent on a letter dated 24.12.1995,
C whereby certain information was provided to the Vidhan Parishad could not
have been the basis for arriving at the finding by the High Court that there
was no controversy regarding establishment/take over of 300 schools of 1984-
85 Project Scheme. Though a number of schools had been mentioned therein
but in terms of the said letter the status of the schools had not been specified
and in that view of the matter by reason of the said letter itself, the High
D Court could not have arrived at a conclusion that those schools had been
taken over and the services of the teaching and non-teaching staff stood
regularized. The State in its affidavit has categorically stated that the list of
the schools was tentative in nature and not final one of taken over schools.

(iii) The High Court misread the second counter affidavit filed by the
E State wherein a list of 300 schools had been mentioned but a perusal thereof
would show that 116 schools had not been accorded permission of
establishment and the matter relating to recognition of 37 schools was pend mg
-
consideration. The status of other schools had also been shown individually
which would show that in some cases, the sites were disputed, some were
F under consideration and yet in some others screening had not been done, and
buildings had not been constructed, or project report was not available or
land was not available. Furthermore, some recommendations in relation to
some schools had been rejected. In view of the stand taken by the State in
the second counter affidavit, there is absolutely no doubt that 153 schools
had not been recognized or taken over.
G
(iv) The expression 'take over" was loosely used, as having regard to
the provisions contained in Article 300A of the Constitution of India, no
property can be taken over or acquired except by an appropriate legislation.
Reliance, in this behalf, has been placed on Bishambhar Dayal Chandra
Mohan and Ors. ere. v. State of UP. & Ors. etc., [1982] I SCC 39 and
H Jilubhai Nanhlwi Khadwr and Ors. v. State of Gujarat and Anr.. [1995] I
STATE OF BIHAR t'. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA, J] 35

Supp. 596. Whenever the State intended· to take over the schools it had A
passed enactments, as for example, Bihar Non-gazetted Educational Institutions
"Taking Over" Act, 1988 and the Bihar Non Government Elementary School
"Taking Over of Control" Act, 1976.

Referring to a decision of this Court in Stale of Madhya Pradesh and
Anr. v. Thakur Bharat Singh, AIR (1967) SC 1170: [1967] 2 SCR 454, Mr. B
Dwivedi would submit that an administrative order having civil consequences
must be supported by law.

(v) As regard the issue pertaining to the competence of the State to lay
down qualification/criteria for the 2nd phase of schools which is the subject- C
matter of the aforementioned circular letter dated 04.02.1989, by reason
thereof, not only the strength of the teachers was confined to 5, but as the
educational qualifications were prescribed thereby the same must be held to
have been given retrospective effect. Only because the strength of 9 teachers
was fixed for the first phase of schools by the Government, the same would
not mean that in relation to the schools set up during the second phase by D
private persons, identical standard was automatically required to be maintained.
Although the State Government by an order dated 25.01.2000 sanctioned
additional posts for approved schools, it may be necessary to consider the
question about the correctness of the impugned judgment on a legal principle,
having regard to the fact that the State has the sole jurisdiction to sanction
strength of a school wherefor financial s;tringency may be a relevant factor. E
In any event, as regularization of the teaching and non-teaching staff was
required to be done prospectively, the State had the requisite jurisdiction to
lay down the criteria therefor in terms of Government letter dated 04.02.1989.
For the said purpose in view of the fact that unqualified and untrained teachers
were not entitled to claim regularization the order dated 04.02.1989, would p
not become retrospective merely because it is drawn on antecedent facts.

(vi) The second phase of the schools could not have been given t.he
benefit of the criteria mentioned in the letter dated 2.11.1985, having regard
to the fact that the first phase schools were established by the Government;
but so far as the second phase schools are concerned, criteria therefor was G
prescribed for the first time by the Government in tenns of the aforementioned
circular letter dated 04.02.1989. Since the State was merely to provide salaries
to regularized teachers of recognized private schools, it was within the domain
of the State to prescribe the strength of the teachers. If the private· schools
wanted to have more staff, salaries to such surplus staff were required to be H
36 SUPREME COURT REPORTS 120061 I S.C.R.

A paid by them from its own funds.
(vii) In a matter of this nature, it was argued, Article 14 of the
Constitution of India will have no application, inasmuch as the State is not
bound to provide salaries to all teachers or to provide a common strength of
teachers for private schools.
B
On behalf of the Schoolsrreaching and non-teaching Staff :

Mr. P.S. Mishra, the learned Senior Counsel, appearing on behalf of the
Respondents in some of the matters, on the other hand, wou Id submit :

C (i) The fact that 300 Project Schools were selected during 1984-85 is
beyond any pale of doubt or dispute. The status of the said schools can be
enumerated in the following categories :

(a) Schools established through public assistance but directly selected
by Government, like 75 schools established and taken over from
D the date of issuance of letter No. I08 dated 12.2.85.
(b) Schools established by public assistance but recommended by
three Man Committee in terms of letter No.142 dated 23.2.85 to
be taken over as Project School from the date of such
recommendation. Reliance in this behalf is placed on Annexure
E R-1 (Colly) of I.A. No.114-130 of 200 I at Page 23 to Page 64.
(c) The schools as enumerated in category (a) and (b) as stated
above are covered by one nomenclature, i.e. Project Schoo;s.
These schools are not like Zila Schools (Government Schools) or
nationalized schools because it has been established/selected by
F Government under a scheme, aimed to provide at least four
Secondary/High Schools out of which one must be Girls School.
These schools as per Government scheme have been established
in most cases by taking over private schools which have been
either granted permission for establishment or was at least
prop~sed schools.
G
(ii) Having accepted before the Fu II Bench that the process of selection
of all schools was completed in the year 1986 on the basis of recommendations
of a three-man Committee, the State cannot now take a different stand. In any
event, the State has accepted in several documents that a number of Project
Schools were taken over. Our attention has further been drawn to the fact that
H
STATE OF BIHAR 1·. rROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA, J.] 37
--\

during the pendency of the writ petitions, a direction was issued by the High A
Court to the Secretary to file a list of 300 Project Girls High Schools, which
were selected and taken over in the financial year 1984-85, pursuant whereto
an affidavit was filed enclosing a list of such schools.

(iii) Such a stand, the State has taken before the Legislative Council, as
would appear from the letter dated 26.12.1995. In any event, as the Cabinet B
itself has taken a decision on 25.01.2000, while implementing a part of the
+
judgment by sanctioning four additional posts of teachers for 300 schools,
the said question now does not survive.

(iv) In a letter dated 07.12.1994 issued by the Secretary, Education
Department, it was observed that 300 Project Schools were selected in the c
year 1984-85. It was further observed that the scheme is to be implemented
from Class Vlth to Class Xth wherefor the curriculum of education was also
prescribed. It was highlighted that the present sanctioned strength of five
\ teachers was not sufficient.
D
(v) The State of Bihar having framed the aforementioned scheme of
establishing girls' schools in 435 blocks which were identified where there
were no recognized Girls High Schools and in that view of the matter the
State Government decided to open· altogether 650 Girls High Schools in
different blocks during the following· financial years :
E
"Year No. of Blocks
1981-82 150
1982-83 200
1983-84 200
1984-85 100" F
150 schools were established in the year 1981-82. However, no such
Girls schools were established in the year 1982-83 and, thus, by reason of the
aforementioned circular letter dated 25.01.1985, a decision had been taken to
open 300 schools in different blocks. Initially by a letter dated 12.02.1985,
75 schools in different blocks and districts were selected followed by letter G
), no.142 dated 23.02.1985, in terms whereof it was decided to select 225
schools established by public assistance after necessary recommendation of
the three-man Committee. During the said year, therefore, 300 schools were

- established. There are several other documents to show that the stand taken
herein by the State as regard the number of schools is not correct.
H
38 SUPREME COURT REPORTS [2006[ I S.C.R.

A (vi) It is not a case where the property belonging to the schools had
been taken over. In view of the fact that such take over was by reason o'f an
agreement between the parties, it is permissible for the State to do so in terms
·-of Article 162 of the Constitution of India. The executive power can be
exercised to supplement the legislat~e power and if no legislation is operating
in the field, such executive powers which are implied, ancillary or inherent
B would include such powers which are required to carry into effect the aims
and objects of the Constitution.
...
The primary duty of the executive is to take stock of the educational
needs of the people in the State, in absence of any statute operating in the
c field-it, in furtherance of the said object, can issue necessary circulars, which
cannot be said to be invalid in law as lacking legislative sanction. The stand
•Of the State, that the list of 300 schools submitted to the legislative council
was tentative in nature, was incorrect as would appear from the office order
dated 22.10.1999 wherein it had treated the said list to be final and on the
basis whereof the services of the teaching and non-teaching staff of the
D Project Girls High Schools at Guthani, District Siwan had been regularized.
Even the Headmistresses had been appointed in 224 Project Schools, as would
appear from a letter dated 02.10.1988, wherefor funds had been sanctioned
for their pay and allowances.

(vii) A bare perusal of the second counter affidavit affirmed by Shri
E M.K. Agarwal in C.W.J.C. No.12326 of 1992, would show that the schools
in SL Nos. I to 116 are only proposed schools and have not been accorded
the requisite permission of establishment. However, in the third counter
affidavit filed in the same writ petition, it has categorically been stated that
the said schools have been selected by a three man committee, and that they
F did not receive the opening permission [provisions of letter No. 142 sated
04.02.1989]. It has been further stated that schools at SL Nos. 117 -192 are
those schools of 1984-1985 which are run by the Department and in many
places the district authorities have appointed clerks and peons. It has also
been stated that the schools at S. No. 215 to 230 are those schools wh~e
cases have been disposed of by the Government. A perusal of the said list
G shows that in these schools approval of services has been given and the said
schools have been selected by the District Selection Committee. A screening ,;.__
committee was also constituted for recognition and regularization of services
of the teachers belonging to the schools.

H
(viii) Out of the schools which fall within the orbit of proposed schools
-
STATE OF BlllAR 1•. PROJECT UCllCHA VIDY A SIKSHAK SANGH [SINHA, J ] 39
at SL Nos. I to 116, there are many schools- which have been recognized as A
valid in terms of the Government letter dated 04.08.2003.

(ix) In ground 'F' of the Special Leave Petition filed by the State, it has
admitted that the construction of buildings of248 schools have been completed.
In view of the admitted position as regard selection of schools, the High
Court was not called upon to consider the validity of the decision of the B
Government to take over/selection of particular Project Schools and, thus, the
State should not be permitted to raise the said question at this state.

Mr. Ravindra- Shrivastava, the learned Senior Counsel appearing on
behalf of the Respondents in Civil Appeal Nos.6626-6675 of 200 I,
supplemented the submissions of Mr. Mishra, urging that as the Full Bench C
was called upon to decide the broad and general proposition as regard the
question of absorption of the second phase schools comprising 300 taken
over schools, no decision from the High Court was invited as regard validity
of the taken over thereof and, thus, they should not be permitted to raise the
said contention before this Court for the first time. D
Our attention, in this behalf, has been drawn to the following statements
made in the Counter Affidavit filed in CW JC No. I 2326 of 1992 :

"That it is submitted that the list of Project Schools in the second
' phase number 304 and the excess of four such project schools is due E
to the fact that four of them were later on added by specific
Government order."
l Our attention has further been drawn to the second supplementary
counter affidavit wherein the following statements have been made :

"(a) Those schools established with public assistance but directly
F
·selected by Government will be deemed to be taken over schools
on and from the date of issuance of such a letter.
(b) Those schools established with public assistance but recommended
by three man committee consisting of District Magistrate, DDO,
DEO vide letter No.142 dated 23.2.1985 will be deemed to be
G
\
-\ taken over school on and from the date of an issuance of such
letter in favor of the school concerned."

It was submitted on the basis thereof that no difference now exists in
... the status of the two categories of schools. In any event, having regard to the
H
40 SUPREME COURT REPORTS [20061 I S.C.R.

A decision of the Cabinet to sanction four additional posts in each of the 300
Project Schools, the State must be deemed to have accepted the factum of
taking over of the said number of schools. Despite the fact that the teachers
had continuously been working and the Cabinet directed to release funds,
before this Court certain new points are raised to which the State is not
B entitled to. The State has adopted an inconstant, discriminatory, unjust and
arbitrary attitude towards the teachers so far as payment of salaries to them
is concerned. The submission that in absence of any legislation, the schools _..
could not be 41ken over is barred by the principle of equitable estoppel.

Mr. Sunil Kumar, the learned counsel appearing on behalf of the
C Appellants in Civil Appeal Nos.6676-6678 and 6679-6680 of 2001, would
submit that those appeals are confined to some portions of the impugned
judgment, namely, paragraph nos. 24 to 27 thereof. whereby the benefit of
regularization had been denied to such of the teachers of the erstwhile High
Schools who were either basic trained or had have their training in Physical
Education. It was submitted that the Government has issued several circulars,
D from a perusal whereof it would appear that the State has equated basic
trained teachers as well as those teachers trained in Physical Education with
the Bachelors of Education, which has also been noticed by the High Court
but it committed an error in arriving at a finding that whereas such equivalence
may be applicable in relation to the appointments of teachers of High Schools
E which were under private management, but such equivalence would not apply
to Project Schools.

It was submitted that having regard to the fact that teachers of Physical
Education as well as teachers who were basic trained having been held to
possess requisitt. qualification for appointments in High Schools when the
F same had been taken over as Project Schools by the State, there cannot be
any reason for not recognizing their services on the said basis.

Mr. Shrivastava appearing in Civil Appeal No. 6681 of 200 I would
submit that the Appellant therein was a clerk who was appointed in the
school when he was below 18 years of age by the Managing Committee of
G the school. Although his services were regularized and his salary was paid
subject to the decision of this case, the Appellant is highly prejudiced by that
part of the judgment of the High Court whereby minimum age for appointment
had been taken to be 18 years. The learned counsel submitted that it wou Id
prove to be harsh, if his services are not directed to be regularized.

H
·~
I

STATE OF BIHAR v. PROJECT UCHHA VIDYA, SIKSHAK SANGH [SINHA, J.] 41

Analysis : A
The State framed the scheme in question having constitutional goal in
mind. Imparting education is the primary duty of the State. Although
establishment Of High Schools may not be a constitutional function in the
sense that citizens of India above 14 years might not have any fundamental
right in relation thereto but education as a part of; human development, B
indisputably is a human right.The framers while providing for equality clause
under the constitutional scheme had in their mind that women and children
;..
require special treatment and only in that view of the matter, protective
discrimination and affirmative action were contemplated in terms of clause
(3) of Article 15 of the Constitution of India.
c
In this case, however, the shifting of stand by the State of Bihar is
apparent. Whereas the main scheme framed in the year 1981 postulated
establishment of schools by itself and that too in the most backward areas of
the then State of Bihar, namely, Chhotanagpur and Santhal Pargana, the facts
noticed hereinbefore clearly show that the main purpose for which the said D
scheme was formulated had been greatly deviated from. In stead and place
of establis.hing more and more girls' schools in Chhotanagpur and Santhal
Pargana regions, more and more schools were sought to be established in
.other parts of the State as well. The .paradigm shift on the part of the State
of Bihar in the. matter of implementation of scheme did not end there. Only
after establishment of 75 schools directly and appointing teaching and non- E
teaching staff through Vidyalaya Sewa Board, it for reasons undisclosed,
intended to give recognition to the private schools.

The State in implementation of the scheme failed and/or neglected to
adhere to one stand. It although took a categorical stand that Project Schools
F
would not be in the category of nationalized schools or government schools,
we do not know on what basis while identifying and selecting private schools
for recognition thereof funds were also allotted for construction of the
i'
1 buildings. We, furthermore, fail to understand as to how in the special leave
petition it was contended that construction of buildings of 248 schools out of
the proposed 300 schools is over. Allocation of fund for construction of G
school buildings or actual construction thereof does not go with the contention
that the private schools were to be recognized.
~
The State of Bihar, thus, took different stands at different point of time.
We have, therefore, not been given a clear picture as to how many schools
H
42 SUPREME COURT REPORTS [2006] I S.C.R.

A were constructed by the State itself or how many of them had been constructed
with public assistance and/or how many of the schools were identified and
proposed to be recognized/taken over. The Respondents, however, point out
that in a meeting of the Administrative Post Sanction Committee held on
I0.07 .1995 under the chairmanship of the Chief Secretary, Government of
Bihar, a decision was taken to call for a list of 300 Project Girls High
B Schools. A list of the said schools pursuant thereto was said to have been sent
by the Director, Secondary Education, to the Secretary, Administrative Post
Sanction Committee, Bihar. In response to a query, a list of 300 Project Girls
High Schools was sent to the Bihar Legislative Counci I. However, therein
also certain schools were stated to be under construction. From the said letter
C of the Director dated 26.12.1995, it does not appear that all the schools were
functioning. The Secretary of the Department of Education. however, at the
instance of the High Court filed an affidavit in CWJC No.12326 of 1992,
wherein existence of 300 Project High Schools was accepted.

Moreover, in the second counter affidavit affirmed by Shri M.K.
D Agarwal, filed in CWJC No.12326of1992. it was stated that the schools at
SI. No. 1 to 116 are those schools which are proposed schools and have not
been accorded permission for establishment. However, in the third counter
affidavit, it has been stated :

"(A) S.L. No. I to 116 are those Project Schools of 1984-85 which
E have not received the permission of establishment by the Director,
Secondary Education, Budh Marg, Patna. These schools were selected
by three man committee but did not receive opening permission by
the Director, Secondary Education within the provision of letter No.
142 dated 4.2.1989.
F (B) S.L. No.117 to 192 are those Project Schools of 1984-85 which
are run by the Department on the basis of deputation of teachers from
nationalized High Schools. In many places the District Authorities of
the department have appointed clerks and peons whose number is yet
to be ascertained from the D.E.O.'s of respective Districts.
G (C) S.L. No.193 to 214 are those project schools of 1984-85 whose
cases are under consideration either by the Screening Committee or
by Government.

(D) From S.L. No. 215 to 230 are those project schools of 1984-85
whose cases have been disposed of by the Government. The letter no.
H
STATE OF RIHAR 1·. PROJt:CT UCHCHA VIDYA SIKSHAK SANGH [SINHA,J) 43
and date of each school is mentioned in the chart of Annexure X/2." A

From what has been noticed herein before, it is evident that the officer
of the State had at different points of time took different stands. We, however,
fail to understand as to.how 300 Project Girls High Schools could be started
when from the materials brought on records, it is evident that a large number
of boys schools also were selected for recognition by the 3-Man Committee. B
Although no specific contention has been raised before us, from the
circular letter dated 30.03.2004, it appears that an enquiry as regard
appointment of teachers of the employees of different categories of schools
is being carried out by CBI. We, however, do not intend.to make any comment
thereupon. c
It is· also of some interest to notice that whereas emphasis was laid on
spreading -of education amongst women by establishing at least one Girls
High Schools school in each identified block, for all intent and purport a shift
\. was made towards Boys High Schools.
D
On the other hand, the consistent stand of the State before the High
Court as also before us was that the three-man Committee was appointed for
the purpose of identification of such schools which were situated in various
blocks. For what precise reason is the bone of contention between the parties,
namely whether they are to be recognized or the schools were to be taken E
over lock stock and barrel; whether management continues to be in the private
hands and the State only intended to pay salaries of teachers; whether 5 or
9 posts in the Project Schools recognized; or whether the management of
such schools had also been taken over. Whether the properties belonging to
the Managing Committee of the erstwhile schools vested in the State of Bihar
one way or the other is not known. It is also not known, as to what extent, F
if any, there had been public participation in the establishment of the schools,
viz. how the land of the schools was donated; who constructed the buildings;
or how the Managing Committee of such schools was constituted. If it is a
case of taking over of the schools, in the absence of a legislation, the right,
title and interest of the erstwhile proprietary of the school and/or Managing G
Committee did not vest in the State.

We have not been apprised as to whether any agreement as such had
been entered into by and between the Managing Committee of the erstwhile
schools and the three-man Committee headed by the Collector of the district.
We also fail to understand that if the process of selection was completed in H
44 SUPREME COURT REPORTS [2006) I S. C.R.

A the year 1986, as urged by Mr. Mishra, how those schools could be taken
over in 1984-85.

Take over or Regularization of the Services :

So far as taking over of the services of the teaching and non-teaching
B staff of the Project Schools is concerned, even the same is surrounded by
mystery. Counsel appearing on behalf of the Respondents had unequivocally
stated that the services of the teaching and non-teaching staff had been
regularized. The expression ·regularization' has a definite connotation.
Regularization of services must precede a legislative act or in absence of
C legislation, rules framed in terms of proviso appended to Article 309 of the
Const:itutbnof:Ih:fu.. [SreSta/e of UP v. Neeraj Awasthi, (2005) (IO) SCALE
286]

The concept of regularization pre-supposes irregular appointment at the
first instance so as to enable the employer to regularize the same. The dispute
D in this behalf does not revolve round the question of regularization of the
services of teaching and non-teaching staff of the schools who were
thithertobefore appointed by Management of Private schools. Had the
legislature of the State of Bihar made an enactment nationalizing the schools
like Bihar Non-Government Elementary Schools "Taking over" Control Act,
1976 the terms and conditions for taking over of the services of the teaching
E and non-teaching staff could have been laid down therein so that as and from
the appointed day specified therein the teaching and non-teaching staff in
stead of continuing in the services all the Managing Committee of the School
would have become government servants. In this ·1iew of the matter, in
absence of any policy decision of the State it cannot be said that the services
of the teachers had been taken over, whether along with properties of the
F schools or not, so as to enable the courts of law to arrive at a definite
conclusion that the teaching and non-teaching staff for all intent and purport
have become the employees of the State.

It is one thing to say that the Management of the school has been taken
G over together with the services of the teaching and non-teaching staff and it
is another thing to say that the State has recognized the schools and is bound
to pay the salary and such teaching and non-teaching staff on the same scale
and pay as it has been paying to its own teachers. In case of nationalization
of schools, furthermore in terms of the provisions of the Statute itself, the
educational or qualification as also other qualifications for taking over the
H services of the teachers would be laid down. In absence of any such legislation.
STATE OF BIHAR 1·. PROJECT UCHCHA VIDY A SIKSHAK SANGH [SINHA. J] 45

it was expected of the State to lay down such criteria in clear terms by way A
of policy decision or guidelines not only for the purpose of letting the teachers
know as to where they stand but also for the purpose of determining as to
whether such teachers are available in the schools who are entitled to salaries
and other emoluments payable to them by the State. If new schools were
established, indisputably teaching and non-teaching staff thereof were required B
to be appointed through Vidyalaya Sewa Board in conformity with the existing
~- rules as well as Articles 14 and 16 of the Constitution of India. It is, thus, not
a case where the concept of regularization could have been invoked.

Three-men Committee :

There is nothing on record to show as to the precise job required to be
c
performed by the three men Committee i.e. they were to identify such schools
which met the criteria laid down in the Circular letter dated 25.9.1981 or
25.1.1985 or whether they were also to scrutinize the academic and other
.\ qualifications required for appointment of the teaching and non-teaching staff.
' Except certain statements made in the affidavit before the High Court as also D
before us the parties herein had not produced any document to show that on
what term or terms the process of recognition/taking over of the private
schools had been made.

Public Participation :
E
In the matter of schools which were said to have been established by
way of public participation, things are no better. The Circular letter except
mentiorting that such schools can be established also by public participation
did not indicate as to what ~ere the roles to be played by the members of
public. Did the said public participation mean gift of land or construction of
building or any donation ofa large sum by some of them? The Circular letter F
merely suggest that if some persons donate a land specified therein or more,
name of schools can be as per his choice. The list of the schools shown to
us discloses that there are such schools which were named after somebody.
But most of schools were shown as Project School>. If a school has been
established as a Project School without the name of the erstwhile school or G
without the name of the school as per the choice of the donor, in terms of
the policy decision of the State it would have been expected that the number
of such schools would have been much more. It is curious to not that even
in relation to a large number of schools mentioned by the Director of Education
in his response to the questions which. were placed before the Bihar Vidhan
H
46 SUPREME COURT REPORTS [2006) I S.C.R.

A Sabha it was remarked that certain schools were still to be identified or their
identity js not known or building was to yet be constructed. The question as
to how a school cou Id be taken over where the identity of the land is not
known or where no building is in existence. On what basis this assumes
significance, the three men Committee could identify such schools is left to
B one's imagination.

Number of Schools :

There is no dispute about 150 scho:>ls. Various documents as also the
affidavits filed on behalf of the State in no uncertain tenns show that besides
C the schools which were established by the State and are being run by it, there
are various other schools over which there was a dispute about their
identification.

The Government established 75 schools and three men Committee
identified 57 schools. The teachers of the said schools were appointed by
D Vidyala Sewa Board, but the documents produced and the affidavits affinned
by the parties point out 300 schools. We have dJticed some discrepancies
herein before to show that the number of the schools mentioned by either side
may not be entirely correct but the fact remains that before the Cabinet also,
a representation was made by the authorities of the State themselves that 300
schools are in place. It is only on that basis the Cabinet sanctioned 1200 more
E posts.

Circular letter dated 23.02.1985 :

The said circular letter shows that the Government had selected 75
Girls High Schools in each of the 700 blocks out of the selection of 300
F blocks. A list thereof was attached therewith. According to the respondent
even in this category there were both the categories of schools which were
either taken over and selected by the Government and those which were
proposed to be established as Project Schools. It is stated in the said letter
that for the selection of the schools in the rest of the blocks and where the
G schools have not by them been established for the selection of site for the
purpose of construction of building three men committees are constituted.
Paragraph 2 of the said letter laid down the mode and manner of
implementation thereof. An annexure appended thereto shows the name of
the schools and the dates of recognition of the three men committee.

H
STATE OF BlllAR 1·. PROJECT UCllCHA VIDYA SIKSHAK SANGH [SINHA, .I.] 47

Circular letter dated 4.2. 1989 A
We have noticed that there is no dispute that in the years 1982-83 and
1983-84, no school was recognized or established. We have also noticed
hereinbefore that one of the conditions for recognition was that the teachers
were required to be appointed by the Vidyala Sewa Board. In the
aforementioned context, the letter dated 4.2.1989 is required to be considered B
f- for the purpose of this case.

Whereas in respect of the schools established by the State 9 posts were
sanctioned for the schools which were selected for recognition I taken over
through the agency of the three men committee, only 5 posts were sanctioned. C
It has not been disputed that in the High Schools in question students are
taught from class VI to X, i.e., five classes. It has also not been disputed that
every subject has been categorized in three groups, viz. language groups,
humanity group and science group and other teachers were to be appointed
accordingly.
D
The State is no doubt entitled to lay down qualification or sanction the
requisite number of posts. It may also in certain situations provide for
relaxation therefrom or lay down such terms and conditions as they may
deem fit and proper. It is also permissible for the State to appoint a screening
committee for the purpose of finding out whether the teachers satisfy the
requirements laid down therein. The State is also entitled to fix the age limit E
of such teachers. How many teachers were required to be appointed and
strength of the teaching staff and the non-teaching staff again is a matter of
policy decision of the State. Indisputably, if somebody has any say in this
behalf it will be the Bihar Senior School Education Board, a statutory authority
who is statutorily enjoined to lay down the criteria for the purpose of F
recognition of said schools by it. But for all intent and p.urport this issue has
become academic. In view of the fact that the State itself has realized the
difficulty which the schools would face if only 5 posts are sanctioned in each
school. The Cabinet itself realized that like any school run by the Govemn:ent,
it is necessary to have at least 9 teachers even in the project schools. The
strength of the teachers for such schools has not only been sanctioned, sanction G
therefor was given with retrospective effect and retroactive operation.
Necessary funds were allocated for the said purpose. Although, thus, it was
the prerogative of the State to lay down the criteria, the same has been laid
down. Therefore, correctness or otherwise of the finding of the High Court
that the State was bound to recognize at least 9 teachers in each school, for H
48 SUPREME COURT REPORTS (2006( I S.C.R. ;-

A all intent and purport is now academic.
It is furthermore not in dispute that the State for the first time in its
letter dated 04.02.1989 laid down the qualifications for the teachers as also
the strength thereof.

B The validity and/or legality of the said Government order dated
04.02.1989 was questioned before the High Court. The High Court, as noticed
supra set aside the said directions holding that 9 teachers were required to be
appointed in each of the schools. This part of the order of the High Court
does not require elaborate consideration as the State Government had now
C sanctioned 4 additional posts with retrospective effect.
Deviation:

However, deviation as regard implementation of the original scheme in
the second phase is explicit. The circular letter dated 27.05.1981 must be
read as a whole. By reason of the said circular letter 650 schools were to be •
D established in the entire State including Chhotanagpur and Santhal Pargana,
which now· forms part of the State of Jharkhand. It has clearly been stated
that at the time of preparing proposal for establishment of new High Schools
priority was to be given to those High Schools which were granted permission
for establishment for proposed High Schools and efforts were to be made that
E getting all the conditions regarding recognition completed from those High
Schools. What was, however, emphasized was that schools in respect whereof
prior permission was obtained and not of those schools which had already
been functioning. If the schools had already been functioning, in excess of
the number of schools sought to be established by the State, the purpose of
establishing more schools would not have been achieved. It was in that sense
F that the State thought of granting recognition of such schools which were yet
to be established, but local resources, like land, building etc. could be properly
utilized as a result whereof the expenditure on the part of the State would be
minimal. However, in the event, such schools having prior permission for
establishment are not available, then the District Education Officer were
G asked to select such places where the Government land were easily available
so that expenses to be incurred on purchase/acquisition of land cou Id be
saved.

Reliance has been placed on paragraph 11 of the said letter for showing
that the Government intended to take over the existing High Schools. The
H said paragraph contemplates establishment of 33 Girls High Schools in 15
STATE OF BIHAR v. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA. J.] 49

districts, where at least 4 Boys High Schools are functioning. The sentence A
'The selection of the above High Schools will be made by the District
Education Officers as mentioned in para 4' would not mean that some schools
which had already been functioning were required to be taken over. The
deviation from the prescribed policy of the State, however, started in the year
1982. The letter dated 12. I0.1982 does not appear to be very clear. Whereas
Rs.1.5 crores had been sanctioned for construction of the building·' teaching B
+ aids, learning materials and establishment cost of the school, but then it is
beyond anybody's comprehension as to how the Distr.ict Education Officers
were directed to inspect these schools and to issue notification formally taking
over their management and control as a result whereof the same would vest
in the State Government. The said para does not appear to be in consonance C
with the main para as in terms thereof, the State Government intended to
open 78 schools in TSP area and 72 schools in non-sub plan area. The other
parts of the said circular letter also are not in consonance with the first para
thereof but paras 2, 5 and 10, if read conjointly, give an impression that the
Government intended to recognize some schools also. Para JO of the said
letter, however, is in two parts, namely, (i) ad hoc teachers would be appointed D
so as to avoid unnecessary delay in appointing regular teachers; and (ii) a
committee headed by ROE will interview the teachers appointed by the
previous management committee of the school without advertisement, which
would mean that such teachers may also be appointed on an ad hoc basis.
E
We, however, fail to understand as to how by reason of the said circular
letter, the policy decision adopted by the State could be deviated from; but
having regard to the order proposed by us, it may not be necessary to say
anything further at this stage.

Take over: F
The word 'take over' would mean that the Government had thought of
taking over of the properties and assets of the schools together with teaching
and non-teaching staff . Take over of schools in the context of the policy
decision of.the State does not appear to be an expression of an intendment
for complete take over or the management of the school. In the former sense G
take over of such schools .would be violative of Article 300-A of the
Constitution of India. Article 300-A embodies the 'doctrine of eminent domain'
which comprises .of two parts, (i) acquisition of property in public interest;
and (ii) payment of reasonable compensation therefor.
H
50 SUPREME COURT REPORTS 120061 I S.C.R.

A In Jilubhai Nanbhai Khachar, (supra), this Court held:
"The right of eminent domain is the right of the sovereign State,
through its regular agencies, to reassert, either temporarily or
permanently, its dominion over any portion of the soil of the State
including private property without its owner's consent on account of
B public exigency and for the public good. Eminent domain is the
highest and most exact idea of property remaining in the Government,
or in the aggregate body of the people in their sovereign capacity. It
gives the right to resume possession of the property in the manner
directed by the Constitution and the laws of the State, whenever the
public interest requires it. The term 'expropriation' is practically
c synonymous with the term "eminent domain."

In Bishambhar Dayal (supra) this Court held that seizure of the food
stuff in terms of an order made under Section 3 of the Essential Commodities
Act, 1955 would not be hit by Article 300-A of the Constitution of India but
D categorically stated that such a course could not have been taken under Article
162 of the Constitution of India, in the following terms :

"There still remains the question whether the seizure of wheat amounts
to deprivation of property without the authority of law. Article 300-
A provides that no person shall be deprived of his property save by
E authority of law. The State Government cannot while taking recourse
to the executive power of the State under Article 162, deprive a
person of his property. Such power can be exercised only by authori<y
of law and not by a mere executive fiat or order. Article 162, as is
clear from the opening words, is subject to other provisions of the
Constitution. It is, therefore, necessarily subject to Article 300-A.
F The word "law" in the context of Article 300-A must mean an Act
of Parliament or of a State legislature, a rule, or a statutory order.
having the force of law, that is positive or State made law ... "

In Thakur Bharat Singh (supra), this Court categorically held that the
State or its officers in exercise of executive authority cannot infringe rights
G of citizens merely because a legislature of State has power to legislate in
regard to subject on which executive order is passed. ~

The right to manage an institution is also a right to property. In view
ofa decision of an eleven-Judge Bench of this Court in TM.A. f'ai Foundation
H and Ors. v. State of Karnataka. (2002] 8 SCC 481 establishment and
~

STATE OF BlllAR r. PROJECT UCllCHA VIDYA SIKSHAK SANGH [SINHA. J] 51
---..
" management of an educational institution has been held to be a part of A
fundamental right being a right of occupation as envisaged under Article
19( I )(g) of the Constitution of India. A citizen cannot be deprived of the said
right except in accordance with law. The requirement of law for the purpose
of clause (6) of Article 19 of the Constitution of India can by no stretch of
imagination be achieved by issuing a· circular or a policy decision in terms
of Article 162 of the Constitution of India or otherwise. Such a law, it is trite, B
+ must be one enacted by legislature.

In Rai Sahib Ram Jawaya Kapur and Ors v. The State of Punjab,
[ 1955] 2 SCR 225, whereupon reliance was placed by Mr. Mishra, this Court
observed :
c
.. " ... The executive indeed can exercise the powers of departmental or
subordinate legislation when such powers are delegated to it by the
legislature. It can also, when so empowered, exercise judicial function
in a limited way. The executive Government, however, can never go
against the provisions of the Constitution or of any law. This is clear D
from the provisions of Article 154 of the Constitution but, as we have
already stated, it does not follow from this that in order to enable the
executive to function, there must be a law already in existence and
that the powers of the executive are limited merely to the carrying out
;_ of these laws."
E
The said decision, however, was distinguished by this Court in Thakur
Bharat Singh (supra), stating that the executive action which was upheld
therein was although not supported by legislation, but it did not operate to
prejudice of any citizen. It was categorically held :

" ... All executive action which operates to the prejudice of any person F
must have the authority of law to support it, and the terms of Article
358 do riot detract from that rule. Article 358 expressly authorises the
Staie to take legislative or executive action provided such action was
competent for the State to make or take, but for the provisions
contained in Part Ill of the Constitution. Article 358 does not purport
to invest the State with arbitrary authority to take action to the prejudice
G
J,, of citizens and others: it merely provides that so long as the
proclamation of emergency subsists laws may be enacted, and
exclusive action may be taken in pursuance of lawful authority, which

- if the provisions of Article 19 were operative would have been invalid.
Our federal structure is founded on certain fundamental principles: H
52 SUPREME COURT REPORTS 120061 I S.C.R.
~

A (I) the sovereignty of the people with limited Government authority
i.e. the Government must be conducted in accordance with the will
of the majority of the people. The people govern themselves through
their representatives, whereas the official agencies of the executive
Government possess only such powers as have been conferred upon
them by the people; (2) There is a distribution of powers between the
B three organs of the State - legislative, executive and judicial - each
organ having some check direct or indirect on the other; and (3) the
rule of law which includes judicial review of arbitrary executive
action ... "

c ( 1994)In5Union of India and Ors v. Mis Graphic lndus1ries Co. & Ors., JT
SC 237, it has been held that the letter written by an authority to
the private persons cannot give rise to a legitimate expectation.
I-

Therefore, there cannot be any doubt whatsoever that the word 'take
over' has been used loosely. It is well settled that a circular letter issued by
D an officer of the State without fulfilling the mandatory provisions of Articles
162 and 166 of the Constitution of India cannot be categorized as a decision
by a State. [See Sri Dwarka Nuth Tewari and Ors. v. Stale of Bihar and Ors.,
AIR (1959) SC 249.

If the said circular letter does not satisfy the requirement of Article ..
E 162 of the Constitution of India, the question of a valid take over in the sense
that the properties and/or management thereof would vest in the State of
Bihar, does not arise. Furthermore, the District Education Officer is not
empowered to issue a notification formally taking over of management and
control and vesting the same into the State Government. In any event, if
teachers were required to be appointed in the manner laid down therein, it is
F beyond anybody's comprehension as to how the management of the school
is taken over together with the teaching and non-teaching staff who had
already been working therein.

Conclusion :
G
Even if there is no dispute as regard number of schools. in view of the
stand taken by the State and particularly in view of the fact that it appears .....
from the records that recognition of the school. if any. had wrongly been
granted to some schools where buildings were also not completed or the
process of selection was also not over, it may be necessary for the State to
H have a further look in the matter.
STATE OF BIHAR 1·. PROJECT UCHCHA VIDYA SIKSHAK SANGH [SINHA. J] 53
\ It is furthermore necessary to scrutinize as to whether the teaching and A
non-teaching staff appointed for the said purpose fulfill the criteria in terms
of the policy decision of the State or not. Their qualifications laid down
under other relevant statutes for the purpose of obtaining permission must
also be scrutinized.

We do not find any merit in the contention raised by the learned counsel B
appearing on behalf of the Respondents that the principle of equitable estoppel
y' would apply against the State of Bihar. It is now well known, the rule of
estoppel has no application where contention as regard constitutional provision
or a statute is raised. The right of the State to raise a question as regard its
actions being invalid under the constitutional scheme of India is now well
recognized. If by reason of a constitutional provision, its action cannot be
c
supported or the State intends to withdraw or modify a policy decision, no
exception thereto can be taken. It is, however, one thing to say that such an
action is required to be judged having regard to the fundamental rights of a
citizen but it is another thing to say that by applying the rule of estoppel, the
~ State would not permitted to raise the said question at all. So far as the D
impugned circular dated 18.02.1989 is concerned, the State has, in our opinion,
a right to support the validity thereof in terms of the constitutional framework.

Having said so, we must observe that the ultimate decision must be left
at the hands of the State. In view of the Cabinet decision dated 25.01.2000,
" 300 schools are said to have been recognized. We have, however, our doubts E
as to whether all correct facts have been placed before the Cabinet or not
particularly in view of the fact that many of the schools which were established
in Chhotanagpur and Santhal Pargana are now in the State of Jharkhand. We
.(
have pondered over the matter but we are not very sure as to whether apart
from the schools which had been identified by the three-man committee and F
admittedly recognized by the State, any final decision had been taken as
regard recognition or otherwise of the remaining schools by the appropriate
authority.

For the said purpose, we are of the opinion that a committee should be
constituted for the said purpose. G
The Chief Secretary of the State of Bihar is, therefore, requested to
constitute a committee comprising of two officers and one Educationist of
repute and/or a retired Judicial officer. In the event a Judicial Officers is
appointed as a member of the committee, he would be the chairman thereof.
H
54 SUPREME COURT REPORTS [2006] I S.C.R.

A Remuneration of the Judicial Officers and/or the Educationist shall be
detennined by mutual agreement.

The Chief Secretary is hereby requested to place at the disposal of the
committee the requisite staff, which may be required by the committee, from
amongst the staff of one or the other department of the State.
B
In the event it is found that teachers have been appointed on ad hoc
basis, the Vidayalay Sewa Board shall be directed to make regular recruitment
strictly in accordance with law.

All the concerned Regional Deputy Directors of Education must also
C submit their reports in respect of the Project Schools within four weeks from
date before the committee.

The Committee shall also deal with all such individual cases of the
Appellants, as has been directed in para 35 of the judgment of the High
D Court.

All the educational institutions claiming recognition or having any other
claims would file their representations together with all supporting documents
within three weeks from date. In their applications, the insti(utions must also
give details of the students admitted in each class year-wise.
E Although from the records, it appears that about 300 schools laid their
claims having been recognized which is also evident from the decision of the
Cabinet, we are of the opinion that the question as to how many schools fulfil
the criteria laid down by the State Government in tenns of its policy decision ;
must be considered afresh.
F
As the constitution of the Committee may take some time, such claims
may be filed in the office of the Education Secretary, who would open an
appropriate cell in this behalf. The committee upon scrutinizing the claims of
the institutions and/or the teaching and non-teaching staff would submit a
report before the Chief Secretary within three months.
G
The Chief Secretary is requested to place the said report together with
his comments thereupon before the appropriate authority in terms of the
Ru Jes of Executive Business and it is expected that the said authority of the
Government of Bihar shall take appropriate decision thereupon within four
months from date.
H
STATE OF BIHAR v. PROJECT UCHCHA VIDYA SIKSHAKSANGH [SINHA, J.) 55

~. We would appreciate, if the State Government takes suitable action A
against those who may be found responsible for commission of irregularities
and/or illegalities in the process of implementation of the Government scheme
in accordance with law.

As regard minimum age of ihe teaching and non teaching staff,
indisputably the same should be 18 years. B
So far as educational qualification of the teaching staff is concerned,
we are of the opinion that having regard to the fact that the limited number
of teachers were to be appointed with a view to accomplish a constitutional
goal of spreading literacy in the villages, particularly amongst the girls, the C
standard adopted in Zila Schools or Government schools constituted in urban
areas may not be insisted upon, as was observed by the High Court, but
keeping in view the fact that it is essentially a Government function, the
question as to whether some teachers having B.T. training or training in
Physical Education would be allowed to continue in the said Project Schools
or not is left to the State, wherefor a decision in a decision in accordance with D
law may be taken.

These appeals. are disposed of with the aforementioned observations
and directions. In the facts and circumstances of the case, there shall be no
order as to costs.
E
R.P. Appeal disposed of.