Nadakkal Service Co-operative Bank Ltd v State of Kerala; Malabar College of Advanced Studies v State of Kerala and University of Calicut
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- A. Muhamed Mustaque
- Shoba Annamma Eapen
- Judgment Date
- 2023-02-14
- Court Decision / Holding
- We allow the appeal filed by the State. We also dismiss the writ petition filed by the writ petitioner. However, nothing prevents the writ petitioner College from starting an unaided college based on the University recommendation and in accordance with law.
- Final Disposition
- Appeal allowed; writ petitions dismissed; College may start unaided college based on recommendations and in accordance with law.
Parties to the Case
Appellants / Petitioners
- Malabar College of Advanced Studies
- Nadakkal Service Co-operative Bank Ltd
Respondents
- State of Kerala
- University of Calicut
- The Registrar, University of Calicut
- Joint Registrar of Co-operative Societies (General)
- Sri Vijayakumar, Assistant Registrar (General)
Legal Representation & Advocates
Counsels for Petitioners
- • Babu Karukapadath
- • Vaheeda Babu
- • P.U. Vinod Kumar
- • Arya Raghunath
- • Vaisakh V.
- • T.M. Muhammed Musthaq
- • Karukapadath Wazim Babu
- • Ajwin P
- • Lalson P
- • Lakshmi
Counsels for Respondents
- • Advocate General Office, Kerala
- • Sri K.B. Ramanand (Special Government Pleader)
- • Other government pleaders as per record
Case Synopsis & Summary
The document contains two connected matters decided by the High Court of Kerala in late 2021 and early 2023. The first matter, WA 1315 of 2021 (with WP(C) 5362/2021), concerns Nadakkal Service Co-operative Bank Ltd challenging the Government’s refusal to sanction government aid for starting new courses in 2021-22 in an institution affiliated to Calicut University, following a University recommendation. The petition argued that selective aid to a few colleges in backward areas, without reasons, violates equality of treatment and the right to education; the Government contends that aid to start new programs is discretionary and constrained by financial strain, and cannot be compelled by writ. The Division Bench ultimately held that there is no statutory or constitutional obligation on the Government to provide aid for starting new programmes, and that mere University recommendation does not create a right to government aid. The court dismissed the writ petition and allowed the State’s appeal, while clarifying that the petitioner may pursue unaided growth where law permits. The second matter, WA 1351 of 2021 with WP(C) 40766/2022, involves Malabar College of Advanced Studies challenging denial of aided sanction for M.Com and MA English. The High Court, in a separate Division Bench, ruled that there is no guaranteed right to government aid for new programmes and that Government decisions hinge on discretionary considerations and financial position. The court allowed the State’s appeal and dismissed the writ petition, while permitting the college to start unaided programmes subject to legal requirements and University recommendations. Both sections underscore the court’s stance that aid is contractual and not mandatory, and that constitutional rights do not automatically compel public funding for new courses.
Provisions of Law Cited
Legal Doctrines & Maxims
- Writ of Mandamus cannot compel the Government to enter into a contract to provide aid
- No fundamental right to government aid for starting a new course
- Right to life under Article 21 can include access to education in a broader sense
- Discretionary nature of government aid; aid is contractual and may depend on financial feasibility
- Equality and non-discrimination principles apply in selecting institutions for aid, but do not create a right to aid absent statutory law or government promise
Submissions & Arguments
Contentions of Appellants / Petitioners
Petitioners argued that the Government selectively sanctioned new courses for some colleges despite university recommendations, and failed to provide a reason for excluding the petitioner college located in a backward area. They contended that the state has obligations under the broader right to life (Article 21) to enable access to education and that discrimination in aid violates equality principles. They urged mandamus to compel aid for starting M.Com and MA English, asserting that such aid would advance public interest and educational access.
Contentions of Respondents
Government argued that there is no legal obligation to grant aid for starting new programmes; decisions are discretionary and conditioned by the state’s financial position. The recommendations of the University do not create a right to aid; aid is not a guaranteed entitlement and cannot be compelled by writ. Government noted multiple mitigating factors and parameters (infrastructure, KSHEC and NAAC indicators) guiding aid decisions, and emphasized that many institutions seek aid, which cannot be uniformly granted without a corresponding legal framework.
Cited Precedents (1)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| State of Kerala v. M.G.M. College of Arts and Science | 2017 (3) KLT 779 | Positive | Cited to support the proposition that the right to life under Article 21 encompasses education; starting new programmes can be part of this right, but does not create a right to government aid absent legal mandate. |
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