Minority Schools Can Be Disentitled From State Grant Towards Salary For Employee Retained Beyond Retirement Age: Supreme Court

WHAT DID THE Court SAY?

In the State of Gujarat And Ors. v. H.B. Kapadia Education Trust And Anr., the Supreme Court of India noted that if an employee is in service at a registered minority Secondary School receiving Aid from the State Government, then such school would not be entitled to any grant for the expenses incurred for keeping such an employee in service beyond the stipulated superannuation age. 

A Division Bench comprising Justice Dinesh Maheshwari and Justice Bela M. Trivedi, noted this while setting aside the judgement of Gujarat High Court wherein a State run minority school was granted aid for the expenses incurred due to continuing service of its employees beyond the retirement age.

WHAT IS THE CASE ABOUT?

In this case, a petition was filed before the Gujarat High Court by the respondent school on the ground of violation of Article 30(1) of the Constitution of India alleging that their right to administer minority institutions has been violated as the school principal was not allowed to continue his tenure beyond the retirement age.

The High Court allowed the petition and held that the appellants would have to pay for the expenses incurred due to continuing service of its employees beyond the retirement age.

OBSERVATION OF THE COURT AND DECISION:

The Ld. Court took reliance on the case of M.A. Pai Foundation And Ors. v. State of Karnataka And Ors. and held that there is no violation of Article 30(1) of the Indian Constitution.

The Court also held that disentitling minority institutions who are already receiving grant from the state government cannot claim other grant in relation to expenses incurred due to continuous service of employees beyond the superannuation age.

Accordingly, the appeal was allowed.

What do you think about the decision of the Court? Let us know in the comments section below!