Allowed

Shree Gangadhareshwara Educational Trust v. State of Karnataka

Karnataka HC4 Dec 2023WP/19657/2023

Case brief

AI extract

What is this about?

This High Court of Karnataka allowed a writ petition challenging the rejection of a No Objection Certificate (NOC) for a school. The court held that the State Education Department cannot deny the NOC merely because of a pending dispute between the school and its landlord, as Rule 3(3) of the relevant Rules 2022 does not prescribe such a condition for issuance. The impugned order was set aside.

What did the court decide?

The impugned order dated 22.08.2023 is set aside. The petitioner is directed to have the application for NOC reconsidered by Respondent No. 3 within 15 days.

Shree Gangadhareshwara Educational Trust Vs State… — Education and Admissions | Karnataka HC (2023)

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1 - NC: 2023:KHC:43627 WP No. 19657 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 4^TH DAY OF DECEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE ASHOK S.KINAGI

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WRIT PETITION NO. 19657 OF 2023 (EDN-RES)

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BETWEEN:

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SHREE GANGADHARESHWARA EDUCATIONAL TRUST A TRUST REGISTERED UNDER THE PROVISIONS OF INDIAN TRUST ACT 1882 HAVING REGISTERED OFFICE AT NO.199 SHANTIDHAMA, SUNKADAKATTE MAGADI MAIN ROAD BENGALURU-560091 REPRESENTED BY ITS TRUSTEE/VICE PRESIDENT DHANANJAY G (BY SRI. RAKESH B BHATT, ADVOCATE)

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…PETITIONER

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AND:

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Digitally signed by R DEEPA Location: High Court of Karnataka

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STATE OF KARNATAKA DEPARTMENT OF EDUCATION VIKASA SOUDHA BENGALURU-560001 REPRESENTED BY PRINCIPAL SECRETARY

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THE COMMISSIONER OF PUBLIC INSTRUCTIONS NEW PUBLIC OFFICE, NEAR RBI NRUPATHUNGA ROAD, AMBEDKAR VEEDHI SAMPANGI RAMA NAGARA BENGALURUM, KARNATAKA-560001

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DEPUTY DIRECTOR (ADMINISTRATION) DEPARTMENT OF PUBLIC INSTRUCTION

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BANGALORE SOUTH DISTRICT KALASIPALYAM BENGALURU-560002

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BLOCK EDUCTION OFFICER DEPARTMENT OF PUBLIC INSTRUCTION BANGALORE SOUTH DIVISION-4 KRISHNARAJAPURA BENGALURU-560036

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CENTRAL BOARD OF SECONDARY EDUCATION AN AUTONOMOUS ORGANISATION UNDER MINISTRY OF EDUCATION GOVERNMENT OF INDIA GNANA BHARATHI MAIN ROAD CHANDRA LAYOUT EXTENSION II STAGE NAGARABHAVI, BENGALURU-560072 KARNATAKA REPRESENTED BY ITS SECRETARY

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…RESPONDENTS

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(BY SMT. MAMATHA SHETTY, AGA FOR R1 TO R4 SRI. M.R. SHAILENDRA, ADVOCATE FOR R5)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TOQUASH THE ORDER BEARING NO.20231789 DTD 22.08.2023 ISSUED BY R3 ANNEXURE-Q AND DIRECT R1 TO 4 TO ISSUE NOC TO THE PETITIONER AS PER THE KARNATAKA EDUCATIONAL INSTITUTIONS (ISSUE NO OBJECTION CERTIFICATE AND CONTROL) RULES, 2022 AND ETC.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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O R D E R

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This writ petition is filed by the petitioner challenging the order dated 22.08.2023 issued by respondent No.3 vide Annexure-Q and also sought for mandamus directing respondent Nos.1 to 4 to issue NOC to the petitioner as per the Karnataka Educational Institutions (Issue of No Objection Certificate and Control) Rules, 2022 (for short 'the Rules 2022') and also sought for mandamus directing respondent No.5 to consider the petitioner's application seeking affiliation to CBSC after the cut-off date in the event there is delay in granting recognition/NOC by respondent Nos.1 to 4.

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Brief facts leading rise to filing of this petition are as under:

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The petitioner is a registered Trust, running an Educational Institution in the name of National Public School at Sarjapur. The property in which the petitioner running a school belongs to one Abhyudaya Trust and it has executed a registered lease deed in favour of the

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petitioner on 14.02.2022. Thereafter, a rectification deed was executed on 30.07.2022. Hence, the said lease deed was registered and the lease period was for a period of 30 years commencing from 01.06.2022 to 31.05.2052. The petitioner sought for registration of the Educational Institution and the respondent Authorities after verifying

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the records and after inspection of the property were pleased to register the school and issued registration certificate on 18.06.2022. It is contended that there is a dispute between the petitioner and the landlord regarding the payment of rents and the petitioner pointed out that the property is mortgaged and one JM Financial Asset Reconstruction Company Private Limited had initiated recovery proceedings before the Recovery Officer – I DRT Bengaluru. It is contended that the Recovery Officer has attached the rents payable to the owner/landlord and ordered it to be deposited with the Tribunal. The landlord invoked arbitration clause and filed AA 4/2023 seeking relief not to receive fees from the students. The arbitrator passed an exparte order and the same was discontinued

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due to non-compliance of mandatory provisions of Order 39 Rule 3 of CPC. The respondents delayed in issuing recognition certificate. The petitioner challenged the same before this Court in W.P.No.4140/2023 and sought for mandamus directing respondent No.2 to consider the petitioner's application. This Court vide order dated 22.02.2023 allowed the writ petition and directed the respondents to consider the petitioner's application seeking recognition in accordance with law. Accordingly, the recognition certificate was issued in favour of the petitioner – School. Meanwhile, respondent No.4 issued notice to the petitioner to issue Transfer Certificate to all the students studying in 9^th standard. The petitioner aggrieved by the notice, preferred the writ petition before this Court in W.P.No.12527/2023. In the said writ petition, the landlord filed an application seeking to implead himself as respondent. This Court vide order dated 27.06.2023 rejected the said application and held that interse dispute between the petitioner and the lessor has to be adjudicated independently before some other competent

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forum and not in the proceedings pertaining to issuing of NOC. That one of the conditions for affiliation imposed by the CBSE is that the Educational Institution has to obtain NOC from the concerned State Education Department. The petitioner's application seeking NOC was rejected vide order dated 22.08.2023 on the ground that there is a dispute between the petitioner and its landlord and due to pendency of cases, respondent No.3 proceeded to reject the online application filed by the petitioner. Hence, the petitioner aggrieved by the rejection of the online application seeking for NOC, has filed this writ petition.

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The State has filed the statement of objections contending that the petitioner was given permission to open new Primary English Medium School from 1^st standard to 8^th standard and registration certificate was issued by respondent No.3 on 18.06.2022. The petitioner applied for recognition certificate with incomplete documents and the same was rejected. It is contended that the respondent has rejected the application, in

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accordance with law. Hence, prayed to dismiss the writ petition.

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Heard Sri Udaya Holla, learned Senior counsel for the petitioner and also learned Additional Government Advocate for the respondents.

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Learned Senior counsel for the petitioner submits that the petitioner Institution is running the Educational Institution after obtaining necessary permission from the concerned authority. He submits that the petitioner has applied for NOC to issue registration certificate to the petitioner. Respondent No.3 has rejected the application to issue NOC only on the ground that there is a dispute between the petitioner and the lessor. Hence, he submits that impugned order passed by respondent No.3 is not in accordance with Rule 3 of Karnataka Educational Institutions (Issue of No Objection Certificate and Control) Rules, 2022 (herein after 'Rules, 2022'). He submits that for grant of NOC, the conditions are extracted in Rule 3(3) of the Rules, 2022. He submits that the petitioner has

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submitted an application accompanying the documents required as mentioned in Rule 3(3) of the Rules, 2022. He submits that merely there is dispute between the petitioner and lessor/landlord, the respondent Authorities have no right to reject the application for grant of NOC. He further submits that the said order was passed by respondent No.3 and respondent No.3 has exceeded the jurisdiction and proceeded to pass the impugned order. He further submits that respondent No.3 except assigning the reason that there is a dispute between the petitioner and landlord has not assigned any other reasons for rejection of NOC. He further submits that lessor has already initiated a recovery of possession proceedings before the arbitrator and the same is pending. He submits that the clause 3 of the Rules, 2022 does not provide that the petitioner Institution is required to take NOC from the lessor before issuing of NOC from the respondent Authorities. He submits that the impugned order passed by respondent No.3 is arbitrary and erroneous. Hence, on these grounds, he prays to allow the writ petition.

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Per contra , learned Additional Government Advocate submits that there is a dispute between the petitioner and lessor and hence for the said reason, respondent No.3 has refused to grant NOC to the petitioner. Hence, the impugned order passed by respondent No.3 is in accordance with Rules, 2022. Hence, she prays to dismiss the writ petition.

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Perused the records and considered the

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submissions made by learned counsel for the parties.

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It is not in dispute that the petitioner is running the Educational Institution in the name of National Public

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School. The property belongs to the lessor and the petitioner has obtained property in question on a lease for a period of 30 years and the lease deed was registered on 30.07.2022 and the lease commences w.e.f. 01.06.2022 to 31.05.2052. Pursuant to the registered lease deed, the petitioner has submitted an application for grant of recognition certificate. The respondent Authority has issued a registration certificate on 18.06.2022. Thereafter,

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the lessor has mortgaged the property in favour of one Financial Institution. The lessor could not repay the loan amount. The Financial Institution filed recovery proceedings against the lessor and sought for attachment of rent payable by the petitioner. Further, the lessor has invoked the arbitration proceedings before the arbitrator in AA 4/2023 seeking relief not to receive fees from the students and an exparte order was passed and thereafter, it was discontinued the petitioner. There was a delay on the part of the respondent in issuing recognition certificate. The petitioner filed a writ petition in W.P.No.4140/2023 seeking for a mandamus directing the respondent Authority to consider the application of the petitioner for grant of registration certificate. This Court vide order dated 22.02.2023, allowed the writ petition filed by the petitioner and directed the respondent Authority to consider the application of the petitioner in accordance with law. Respondent No.4 issued notice to the petitioner calling upon the petitioner to issue a transfer certificate to the students. The said show cause notice was challenged

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by the petitioner in W.P.No.12527/2023. In the said writ petition, the lessor/landlord filed an application for impleading. The said application came to be rejected by the Co-ordinate Bench of this Court vide order dated 27.06.2023 and this Court has already recorded a finding that interse dispute between the petitioner and the lessor/landlord has to be adjudicated before the appropriate forum. The petitioner wanted to impart education by affiliation to the Central Board of Secondary Education. One of the condition of affiliation imposed by CBSC is that the Educational Institution has to obtain NOC from the State Education Department. Pursuant to the said condition, the petitioner has submitted an application to issue NOC for affiliation to the Central Board of Secondary Education. The said application has been rejected by respondent No.3 on the ground that there is a dispute between the petitioner and lessor/landlord.

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In order to consider the case in hand, it is

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necessary examine Rule 3 of Rules, 2022, which reads as under:

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"3. Conditions for grant of No Objection Certificate.(1) XXX (2) XXX

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(3) Any private educational institution seeking grant or modification of No Objection Certificates under these rules shall make an application for the same in such manner as specified in these rules and such application shall be accompanied by the following documents, namely:-

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(a) Valid School Registration Certificate.

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(b) Valid School Recognition Certificate.

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(c) Valid Building Safety Certificate.

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(d) Valid Fire Safety Clearance Certificate.

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(4) XXX"

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As per sub Rule-3 of Rule 3 of Rules 2022 the Educational Institution while submitting an application must accompany the documents mentioned in clause (a) to (d). It is not the case of respondent No.3 that petitioner Institution has not annexed the documents mentioned in

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clause (a) to (d) of sub-Rule 3 of Rule 3 of Rules 2022. Respondent No.3 considering that there is a dispute

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between the petitioner and lessor, has rejected an application for grant of NOC. The impugned order passed by respondent No.3 is not in accordance with Rule 3 of Rules, 2022. Rule 3 of Rules, 2022 does not prescribe that any Private Educational Institution is required to obtain NOC from the lessor for obtaining NOC for affiliation. The reasons assigned by respondent No.3 in the impugned order is contrary to Rule 3 of Rules, 2022. Respondent No.3 can reject the application for grant of NOC only on the ground that if the applications are not accompanied by the documents prescribed in clause (a) to (d) of Rule 3(3) of the Rules, 2022. Further, there is a dispute between the petitioner and the lessor before the arbitrator. This Court vide order dated 27.06.2023, rejected the application of the lessor and held that the interse dispute between the petitioner and the lessor has to be adjudicated independently before some other competent forum and not in the proceedings pertaining to issuing of NOC. Respondent No.3 without looking into the findings recorded by this Court in W.P.No.12527/2023, rejected

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the application for issue of NOC. The impugned order passed by respondent No.3 is arbitrary and erroneous and the same is liable to be set aside.

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In view of the above discussion, I proceed to

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pass the following:

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ORDER

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The writ petition is allowed.

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The impugned order dated 22.08.2023 vide Annexure-Q is set aside and respondent No.3.

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Respondent No.3 is directed to reconsider the application of the petitioner for grant of NOC in accordance with law, within 15 days from the date of receipt of this order.

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Sd/JUDGE

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SSB

Shree Gangadhareshwara Educational Trust v. State of Karnataka

Case brief

What is this about?

What did the court decide?

Shree Gangadhareshwara Educational Trust v. State of Karnataka

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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