Allowed

Manahing Committee Seth Motilal v. State of Rajasthan and Ors.

Rajasthan HC26 Feb 2018CW/5210/2014

Case brief

AI extract

What is this about?

The High Court directed the State of Rajasthan to pay verified grant-in-aid amounts due to private educational institutions up to the 2010-11 academic year, along with interest for delay. It also mandated the audit of accounts for 2011-12 and payment thereafter.

What did the court decide?

Direct payment of verified grant-in-aid up to 2010-11 within four months with 6% interest; audit of 2011-12 accounts and payment within two months after audit.

Manahing Committee Seth Motilal Vs State… — Pension and Retirement Benefits | Rajasthan HC (2018)

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

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S.B. Civil Writ Petition No. 5158 / 2014

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Managing Committee Agarwal (PG) College, Agrasen Katla, Agrasen Marg, Agra Road, Jaipur through its Secretary.

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----Petitioner

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Versus

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The State of Rajasthan through Principal Secretary, Department of Higher Education, Secretariat, Jaipur

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The State of Rajasthan through Principal Secretary, Finance Department, Secretariat, Jaipur

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Commissioner, College Education, Shiksha Sankul, JLN Marg, Jaipur

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----Respondents

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Connected With

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S.B. Civil Writ Petition No. 5210 / 2014

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Managing Committee Seth Motilal (P.G.) College, Ranisati Road, Jhunjhunu through its Secretary

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----Petitioner

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Versus

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The State of Rajasthan through Principal Secretary, Department of Higher Education, Secretariat, Jaipur

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The State of Rajasthan through Principal Secretary, Finance Department, Secretariat, Jaipur

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Commissioner, College Education, Shiksha Sankul, JLN Marg, Jaipur

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----Respondents

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For Petitioner(s) : Mr. Ajit Maloo

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For Respondent(s) : Mr. Manu Bhargava, Government Counsel

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HON'BLE MR. JUSTICE ALOK SHARMA

Judgment

26/02/2018

(2 of 6)

CW-5158/2014]

The prayer of the counsel for the petitioners-

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institutions is that present petitions be disposed of in terms of the judgment of this Court in S.B. Civil Writ Petition No. 2475/2006 titled Rajasthan Mahila Vidhyalaya Versus State of Rajasthan &

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Ors. decided on 25.10.2007, which has been upheld by the Division Bench of this Court under its judgment dated 27.8.2010 in D.B. Civil Special Appeal (W) No. 02696/2009 titled State of Rajasthan & Ors. Versus Rajasthan Mahila Vidhyalaya, Udaipur. He submitted that under the aforesaid judgments a direction was issued to the respondents-State to release the amount of grant-inaid with reference to the sanction to the concerned institution and verification of the accounts of the money as expanded by the institution. It has been submitted that subsequently in the case of Mahalaxmi Girls Senior Secondary School Versus State of Rajasthan & Ors. (S.B. Civil Writ Petition No. 3949/2013) decided on 19^th May, 2015 (2015 Indlaw RAJ 798), it was further directed that the amounts due towards sanctioned grant in aid and yet unpaid without just cause would carry interest @ 9% p.a. It has been prayed that it be also similarly directed in the case where the amounts due to the petitioners – institution towards approved

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grant-in-aid and expenses incurred on the basis thereof has not

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(3 of 6)

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[CW-5158/2014]

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been paid but instead arbitrarily withheld.

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Mr. Manu Bhargava, Government Counsel is not in a

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position to deny that the petitioners-institutions are entitled to the amounts due under the grant-in-aid sanctioned which have been duly verified at least upto the financial year 2010-11. He however submitted that the amount of grant in aid for Financial Year 201112 have to be yet duly audited / verified by the competent authority.

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Heard. Considered.

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It is not in dispute that the petitioners-institutions were

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sanctioned grant-in-aid under the Rajasthan Non Government Educational Institutions (Recognition, Grant-in-Aid and Service Conditions etc.) Rules, 1993. It is also not in dispute that the amounts expended by the petitioners institutions subsequent to the grant-in-aid upto academic year 2010-11 have been audited and verified by the competent authority, yet not paid. There is no plausible reason for holding back the petitioners money due to them as expended grant-in-aid duly audited / verified. It is therefore directed that the said amounts due to the petitioner institution upto the academic year 2010-11 as already verified/audited be paid to them within a period of four months

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(4 of 6)

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[CW-5158/2014]

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from the date of presentation of certified copy of this order, failing

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which the petitioners-institutions shall also be entitled to interest

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@ 6% p.a. on the amounts in question from the date they became due till the date of payment.

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As far as the amounts due under the grant-in-aid for the academic year 2011-12 is concerned, it appears that the accounts submitted are yet to be verified / audited by the competent authority of the petitioners-institutions for A.Y. 201112. The respondents are therefore directed to have the accounts audited within a period of two months from the date of presentation of a certified copy of this order and pay the amounts found due and verified within a period of two months thereafter. Non payment as directed above will entail payment of interest @

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6% p.a. from date the amounts towards sanctioned grant in aid were due till the date of payment.

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The petitions stand disposed of as under:

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I) That the amounts due to the petitioners-institutions under the approved grant-in-aid under the Rules of 1993 upto the academic year 2010-11 as duly audited

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by the competent authority be made over to the petitioners-institutions within a period of four months

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(5 of 6)

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[CW-5158/2014]

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from the presentation of the certified copy of this order, failing which the petitioners institutions shall be entitled to interest @ 6% p.a. from the date they became due till the date of payment. The liability towards interest

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would be recoverable from the officers of the respondents-Department, who are found responsible in delay in payment of the amounts due and duly verified / audited upto the academic year 2010-11.

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II) The accounts of the petitioners-institutions pertaining to the grant-in-aid for the academic year 2011-12, as submitted, be audited within a period of two months from the date of presentation of certified copy of this order. The petitioners-institutions are directed to furnish requisite clarifications of the accounts of the petitioners-institutions, if any, as the audit may seek in this regard. On completion of the audit verification within a period of two months as aforesaid, the amount due be paid to them within four months thereafter. Non payment as directed would entail payment of interest @ 6% from the date the amounts were due till date of payment.

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(6 of 6)

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[CW-5158/2014]

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III) The officers responsible for delay in making of payment

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of due amounts shall be personally liable towards the

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interest paid to the petitioners-institutions.

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Writ petitions stand disposed of accordingly.