- 1 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 2ND DAY OF MAY, 2025 BEFORE THE HON'BLE MR. JUSTICE N.S.SANJAY GOWDA WRIT PETITION NO. 205675 OF 2016 (S-RES) BETWEEN: OMPRAKSHA S/O SIDDALINGAYYA VASTRAD AGED ABOUT 46 YEARS OCC: JUNIOR TRAINING OFFICER PROF. P.S. CHOWDHARY ITI SWAMY VIVEKANAND NAGAR NEAR SANTOSH COLONY ALAND ROAD, KALABURAGI-585102. …PETITIONER (BY SRI. KALYAN S. BASAVARAJ, ADVOCATE FOR SRI. R.J. BHUSARE, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY LABOUR, EMPLOYMENT AND TRAINING VIDHAN SOUDHA, BANGALORE-01. 2. THE COMMISSIONER DIRECTOR OF EMPLOYMENT AND TRAINING KOUSALYA BHAVAN BANNERGHATTA ROAD BANGALORE-01. Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 3. THE JOINT DIRECTOR EMPLOYMENT AND TRAINING DEPARTMENT INDUSTRIAL ESTATE OPP. KSRTC DIVISION OFFICE NEAR GOVERNMETN ITI COLLEGE KALABURAGI-585 102. 4. THE ADARSH EDUCATION TRUST REP. BY ITS SECRETARY SWAMY VIVEKANAND NAGAR NEAR SANTSO COLONY ALAND ROAD, KALABURAGI-585 102. 5. PRF. P.S.CHOWDARY INDUSTRIAL TRAINING CENTRE SWAMY VIVEKANAND NAGAR NEAR SANTOSH COLONY ALAND ROAD, KALABURAGI-585 102. REP. BY ITS PRINCIPAL …RESPONDENTS (BY SRI. MALLAHARAO, ADDITIONAL ADVOCATE GENERAL A/W SMT. BHARATHI PATIL, AGA FOR R1 TO R3; SRI. K.M. GHATE, ADVOCATE FOR R4; SRI. VINAYAK APTE, ADVOCATE FOR R5) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER PASSED BY THE 1ST RESPONDENT DATED 13.04.2016 REVISION PETITION NO. 1/2016 DOCUMENT NO.LD/426/ETI-2012 PRODUCED AT ANNEXURE-A AND ETC. THIS PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 25.04.2025, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 CORAM: THE HON'BLE MR JUSTICE N S SANJAY GOWDA CAV ORDER 1. The petitioner was appointed in the year 1997 as a Junior Training Officer (“JTO”, for short) in Respondent No.5—Institute, which was an Industrial Training Center. This Industrial Training Institute (“the ITI”, for short) was admitted to a grant on 28.03.1998 and the post of the petitioner was also admitted to a salary grant. In other words, by virtue of respondent No.5 being admitted to the grant, the petitioner became an employee of an aided institution. 2. It is the case of the petitioner that he was discharging his duties and was receiving his salaries regularly till August 2010. But, from August 2010, he was not being paid his salaries. Since the salaries were not paid, it is stated that he made a representation to the Principal of the Institute for release of his salaries and since no steps were taken, he was constrained to ultimately approach this Court in Writ Petition - 4 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 No.80868 of 2012 seeking for a direction to the respondents therein to release his salaries. 3. It is stated that ultimately, this Court on 27.01.2016 disposed of the writ petition, holding that the petitioner had to invoke the alternative remedy available under Section 131 of the Karnataka Education Act, 1983 (for short, ‘the Act’). The petitioner states that, accordingly, he approached the Government under Section 131 of the Act and this petition was dismissed on the ground that the power under Section 133 of the Act was not available to direct release of salaries. 4. The petitioner therefore states that he was once again constrained to approach this Court requesting for direction to be issued to pay salaries from August 2010. 5. The State Government has entered appearance and filed its objections. It is admitted in the counter that - 5 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 the petitioner was indeed appointed as a JTO in the Draughtsman (Mechanical) [‘DMM’] Trade in respondent No.5—Institute and it is stated that since there was a shortage of admissions in the course of DMM Trade, the petitioner was assigned with some other work (even according to the petitioner). It is stated that since the petitioner has not imparted training in the DMM Trade as there were no admissions from August 2010, there was no provision under the Grant-in-Aid Code of 1987 to pay him the salary grants. 6. It is sought to be contended that since the Management had assigned work pertaining to other trades, it was the responsibility of the Management for payment of the salary. In short, the Government states that since there were no admissions in the DMM Trade, it is not obliged to pay the petitioner his salary. 7. The Management has also filed its objections. The Management also admits that the petition was - 6 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 appointed as a JTO in the DMM Trade, and as per the Government Order dated 15.11.1997, the post of the petitioner along with 22 other posts were admitted to salary grant. 8. It is also admitted that the petitioner did receive his salary from August 2010 and even thereafter, he used to come to the College and was signing the Attendance Register but was not assigned with any work. The Management states that it paid the petitioner monthly allowances up to March 2015 on humanitarian grounds and on the directions of the President, it had terminated petitioner’s services by an order dated 27.06.2017. 9. It is also stated that this order of termination has been challenged by the petitioner by filing an appeal in EAT No.4 of 2017, and the matter is still pending adjudication. - 7 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 10. In paragraph 4 of its counter, it is stated that on 08.11.2010, the Joint Director of Employment and Training had visited the Institution and had inspected the functioning of all the trades and he then found that the admissions to the DMM trade were not satisfactory and he orally directed the institute to stop the payment of salaries to the petitioner with immediate effort. 11. The Management states that the Secretary in fact, addressed a letter calling upon the Joint Director to issue a written direction in this regard and accordingly, by a written communication to the Principal dated 14.12.2010, the Joint Director stated that the payment of salaries to the petitioner was improper. It is also stated that on 14.11.2011, the Trust which was running the Institution had directed the name of the petitioner to be included in the salary bill. But, a notice was issued by the Joint Director stating that the admissions to DMM Trade was less - 8 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 than 50% and in view of the above fact, the Joint Director had warned that the grant-in-aid salary of the institution itself would be held up. 12. The Management states that admission to the DMM Trade had almost stopped though there were some sporadic admissions. It is therefore the case of the Management that the salary was stopped since there were no admissions in the DMM Trade and also because the Department had stated that the salaries could not be paid to the petitioner. 13. In the light of the above facts, the question that would arise for consideration is as to: “ Whether an employee of an aided institution whose post is admitted to salary grant can be denied payment of a salary on the ground that there were no admissions to the course to which he had been appointed.” - 9 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 14. The Karnataka Education Act, 1983 was enacted and brought into force in the year 19951 with the objective 11. Short title, extent, application and commencement.- (1) This Act may be called the Karnataka Education Act, 1983. (2) It extends to the whole of the State of Karnataka. (3) It applies to all educational institutions and tutorial institutions in the State except,- (i) institutions for scientific or technical education financed by the Central Government, and declared by Parliament by law to be institutions of national importance; (ii) institutions of higher education which shall be deemed to be University as declared by the Central Government by a notification, under section 3 of the University Grants Commission Act, 1956 (Central Act III of 1956); (iii) institutions established or maintained and administered by or affiliated to or recognised by the University of Agricultural Sciences in so far as the matter pertaining to them are dealt within the University of Agricultural Sciences Act, 1963 (Karnataka Act 22 of 1963); (iiia) Educational Institutions affiliated to or recognised by the Council of Indian School Certificate Examination or Central Board of Secondary Education respectively but subject to the conditions that the provisions of Section 5-A, 48, 112-A, and 124-A of this Act shall continue to apply to these institutions; (iv) in so far as the matters pertaining to colleges and institutions are dealt within,- x x x (v) Such other class or classes of institutions, subject to such conditions and to such extent as the State Government may, by notification, specify: Provided that nothing in Chapter III, section 35 of Chapter V, Chapter VII and Chapters IX to XV (both inclusive) except sections 57 and 58 of Chapter X shall be applicable to commerce institutions. - 10 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 of providing for planned development of educational institutions in the State of Karnataka. This Act brought within its purview all educational institutions and tutorials and the institutions except for those specified under Section 1(3). The institutions covered under Section 1(3) for whom the Act is made applicable are institutions which are financed by the Central Government and declared by the Parliament by law to be the institutions of national importance; the institutions which are deemed to be Universities as declared by the Central Government; the institutions established or maintained and administered by or affiliated to or recognized by the University of Agricultural Sciences; the educational institutions affiliated to or recognized by the Council of Indian School Certificate Examination (ICSE) or Central Board of Secondary Education (CBSE) respectively; and in relation to colleges which are coming within the (4) It shall come into force on such 1[date]1 as the State Government may, by notification, appoint and different dates may be appointed for different provisions of the Act.[Act came into force on 1-6-1995 by notification.] - 11 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 purview of certain Acts mentioned in Section 1(3)(iv) of the Act. 15. Section 1(3)(v) of the Act also stipulates that such other class or classes of institutions which may by notification be specified by the State Government to which this Act would be inapplicable. 16. Admittedly, there is no notification issued by the State Government specifying the industrial training institutes to be brought outside the purview of the Act. 17. Section 2(14)2 defines educational institution and it states that it would include any institution imparting education referred to in Section 3 and would include a private educational institution. 22. Definitions.- In this Act, unless the context otherwise requires,- (14) "educational institution" means any institution imparting education referred to in section 3 and includes a private educational institution but does not include an institution under the direct management of the University or of the Central Government or a tutorial institution; - 12 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 18. Section 33 of the Act states that the State Government may, subject to Section 1(3) of the Act regulate the general education, professional education, medical education, technical education and towards that end, it could establish and maintain educational institutions and also recognize such educational institutions. 19. The technical education has been defined under section 2(37)4 of the Act to mean any course of study in engineering, technology, architecture, ceramics, the 3 3. Regulation of education.- (1) The State Government may, subject to sub-section (3) of section 1, regulate general education, professional education, medical education, technical education, commerce education and special education at all levels in accordance with the provisions of this Act. 2) The State Government may towards that end,- (a) establish and maintain educational institutions; (b) permit any local authority or a private body of persons to establish educational institutions and maintain them according to such specifications as may be prescribed; (c) require registration of educational institutions including tutorial institutions; (d) recognise educational institutions; (e) grant aid to any recognised educational institutions in furtherance of the objects of this Act; x x x (k) take from time to time such other steps as they may consider necessary or expedient. 4(37) "technical education" means any course of study in Engineering, Technology, Architecture, Ceramics, Industrial Training, Mining, or in any other subject, as the State Government may, by notification, specify; - 13 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 intellectual, industrial training, etc. Therefore, any institution imparting industrial training which is recognized by the State Government would come within the purview of the Karnataka Education Act. 20. It is not in dispute that respondent No.5—Institute is a recognized educational institution which is imparting industrial training and would therefore come within the purview of the Education Act. 21. Chapter IX of the Act deals with Grant-In-Aid and Section 495 of the Act states that the State Government should within the limits of its economic capacity, set apart a sum annually for being given as grant-in-aid to local authority institutions and to private institutions in the State recognized for that purpose. Therefore, there is an obligation in the State to set apart a sum of money subject to its financial 5 49. Government to set apart sum for giving grant-in-aid to certain recognised institution.- (1) The State Government shall within the limits of its economic capacity, set apart a sum of money annually for being given as grant-in-aid (hereinafter in this Act referred to as grant) to local authority institutions and private institutions in the State recognised for this purpose in accordance with rules made in this behalf. - 14 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 limitations to provide for grants to not only local authority institutions but also to private institutions. 22. Section 506 of the Act stipulates the authorities which could sanction such a grant; and Section 52 deals with the manner in which an application for sanction of grant is to be made and the conditions which could be imposed for giving the said grant. 23. Section 53 of the Act empowers the State Government to withhold or reduce the grant that is payable to an institution. It states that the Government could withhold, reduce or withdraw any grant during the year having regard to the funds at its disposal or the 6 50. Authorities which may sanction grant.- (1) The State Government may in such cases as they think fit, by order, sanction grant to any recognised local authority educational institution or private educational institution subject to such conditions as they may impose in the order relating to such grant. (2) Every grant sanctioned under sub-section (1) shall be disbursed by the Commissioner of Public Instruction or the Director or such other officer subordinate to the Commissioner or the Director as the State Government may, by general or special order, authorise in this behalf in such manner and subject to such conditions as may be prescribed. (3) The Governing Council of every recognised institution which is receiving any grant out of State funds shall be responsible for the fulfillment of all the conditions subject to which such grant has been given., - 15 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 conduct and efficiency and the financial condition of the institution. However, this would have to be done after an inquiry and after giving an opportunity to the Governing Council for making the presentation against such withholding, reduction or withdrawal. 24. Section 53(2) of the Act provides for the manner in which the said power could be exercised and the conditions under which it could be exercised. 25. Admittedly, in this case the Government has not conducted any enquiry and passed any order proposing to withdraw or reduce the grant. It is not the case of the Government also that any of the conditions narrated in Section 53(2) of the Act is attracted to enable it to withhold the grant. 26. In other words, the obligation of the State to pay the grant to the institution continues and there is no statutory power exercised by the State Government to withhold this grant has also been exercised. - 16 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 27. As already narrated above, it is the case of both the State and the Institution that the salary to the petitioner was stopped fundamentally because there were no admissions to the course to which the petitioner was appointed as a JTO i.e., in the DMM Trade. 28. If an employee who has been appointed to a particular course is rendered without any work because that educational institution is unable to attract admissions, the obligation of the State Government to continue to pay the salary would not cease. The State Government, while admitting a post to a salary grant, does so consciously and is aware of its obligation to pay the salary to the employee whose post is admitted to a salary grant. 29. The question of retrenchment is provided for under Section 98 of the Act. Section 98 reads as follows: - 17 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 “98. Retrenchment of employees.- (1) Where retrenchment of any employee is rendered necessary by the Governing Council or competent authority consequent on any change relating to education or course of instruction or due to any other reason, such retrenchment may be effected with the prior approval of the competent authority or the next higher authority, as the case may be. (2) Where any retrenchment of the member of the teaching staff in any aided Educational Institutions is effected, the State Government or the competent authority shall, subject to prescribed rules or orders governing the reservation in posts to Scheduled Castes and Scheduled Tribes and other Backward Classes, appoint such person to a similar post where available in any other aided educational institution. (3) If the management of an institution wants a transfer of an employee to some other institution, where there is a vacancy or if any employee of an institution, wants a transfer or if two employees apply for mutual transfer, the State Government - 18 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 may grant the request of the institution or of the employee as the case may be.” 30. As could be seen from the above provision, Section 98(1) of the Act enables the Governing Council or the competent authority to retrench an employee provided prior approval of the competent authority is obtained. 31. It is very important to notice here that the retrenchment should have become necessary because of any change relating to education or course of instruction or due to other reasons. In other words, in normal circumstances, if an educational institution including a private educational institution intends to retrench an employee can only be under the reasons mentioned in Section 98 and even in such an event, prior approval of the Government or the competent Authority i.e., the Department would be necessary. 32. Subsection (2) of Section 98 specifically deals with a situation relating to retrenchment of the member of - 19 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 the teaching staff in any aided Educational Institutions. 33. As compared to Subsection (1) of Section 98, Subsection (2) makes it clear that in respect of retrenchment of any member of the teaching staff in any aided institution is to be effected, the State Government is required to appoint such person to a similar post where available in any other aided educational institution. This is, of course, subject to the prescribed Rules governing the reservation of post to Scheduled Castes and Scheduled Tribes and other academic classes. 34. Subsection (2) of Section 98, therefore, makes it categorically clear that in respect of the teaching staff of an aided educational institution, if an employee is to be retrenched, he would have to necessarily be appointed to a similar post where available in any other aided institution. - 20 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 35. The reasoning or the logic behind this objective is rather clear. If an employee is appointed to a post which is admitted to a salary grant, that employee has the statutory assurance that his salary will be paid throughout his tenure as compared to an employee who is appointed to a private institution without having any aid. 36. In case of an employee appointed to a private education institution without an aid, it is fundamentally a contract of service, and the terms of service will be governed by such contract. However, by virtue of sub-section (2) of Section 98, the statute creates a right in an employee of an aided institution to be given an appointment in any other aided institution. The statute has taken note of the fact that the Government aids several institutions and therefore, whenever retrenchment becomes necessary in one institution, that retrenched employee is required to be accommodated in another aided - 21 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 institution. This is also because the obligation of the State to pay the salary would continue even if there is no work to a teaching staff in any other institution. 37. In order to avoid paying a teaching staff even without extracting any work, the provision provides for appointing that very person to any other institution. This is obviously to ensure that the public money is not put to waste and salaries are not paid by teaching staff even though they are not teaching. 38. Subsection (2) of Section 98 would clearly indicate that there is an obligation on the State to pay the teacher of an aided institution his salary throughout his/her career. 39. The Government cannot refuse to pay salary merely because the institution that it had aided is either being closed or the course that was being offered by the institution is no longer viable. - 22 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 40. The statute by creating a statutory obligation on the State to provide a teaching staff of an aided institution, an appointment in any other aided institution, basically guarantees an employee of an aided institution safety of tenure and a guarantee in terms of his service. 41. An argument is also sought to be advanced by the Additional Advocate General (‘AAG’) that as per Clause 7(6) of the Code, which reads as follows, the grant-in-aid cannot be granted if the enrolment is less than 50% of the permitted intake: “Chapter-VII 7. COURSES, ADMISSIONS AND RESERVATIONS IN INSTITUTIONS: 1. x x x 6. In all cases where the enrollment is less than 50% of the permitted intake, prior approval of the Director shall be necessary to commence the concerned trade or unit.” 42. In my view, this argument cannot be accepted. Clause 7 of the Grant-In-Aid Code deals with the situation - 23 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 where grant-in-aid is yet to be granted. In other words, in respect of a running institution, in order to secure grant, Clause 7(6) would come into operation and approval can be granted only if the permitted intake is more than 50%. If, however, an approval has already been granted, the question of invoking Clause 7(6) will not arise. 43. To put it differently, at the time of granting aid, i.e., in 1997, the Institute did have more than 50% intake and that was the reason why the State Government had accorded grant-in-aid. A clause for prior approval for granting aid cannot be used to withdraw an aid already granted. 44. Chapter IX of the Grant-In-Aid Code provides for withdrawal, reduction or cancellation of the grant and the same reads as follows: “Chapter – XI 11. Withdrawal, Reduction or Cancellation of Grant : - 24 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 1) In case of gross mismanagement, deteriorations of standards of efficiency and discipliner or breach of instructions or orders issued by the Directorate or infringement of provisions of conditions, rules and procedures laid down in this code, which in the opinion of the Director is of a serious nature, the grant may be reduced or withdrawn by the Director after giving such an institution an opportunity of being heard. 2) The Director, after conducting such enquiry as he deems fit and after giving an opportunity of being heard in the matter, is satisfied that any institution or management is charging fees at rates higher than those prescribed by the Government, the grant-in-aid shall be cancelled. 3) Any change in management by way of transfer or otherwise or change in the name of an institution without the prior permission of the Director, the grant-in-aid sanctioned shall be deemed to have been withdrawn from the date of such change or transfer. 4) Any grant-in-aid institution or a part of it is shifted without prior permission of the - 25 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 director, the grant-in-aid shall be deemed to have been withdrawn from time to time of such shift.” 45. As we have seen from the above, there is no provision to withhold, reduce or cancel the grant if there is a reduction in the intake after the grant has been given to the institution. In other words, if an institution has been given a salary grant, a subsequent reduction in the admissions would not entitle the Government to reduce the grant proportionately. 46. As already stated above even the substantive provision regarding withdrawal or reduction of the grant does not enable the State Government to reduce the grant merely because there is a reduction in the admissions. 47. As noticed above, even if the retrenchment becomes necessary in an aided institution, the State is under an obligation to appoint that teacher of the aided institution to another institution. - 26 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 48. In that view of the matter, the argument of the learned AAG cannot be accepted. 49. It is therefore clear that merely because there is no admission in respondent No.5—Institute, the State cannot escape its liability to pay the salary to the petitioner. The petitioner will therefore be entitled for being paid salary from the date it was withheld till the date the petitioner was terminated i.e., from August 2010 till 27.06.2017. 50. Since the service of the petitioner has been terminated, the relief that the petitioner had confined only for the period during which he was in service. 51. The state has filed a Memo dated 04.12.2024, wherein it has stated that the petitioner was to be paid a total sum of Rs.23,33,998/- from August 2010 till May 2017. The Memo also indicates that Rs.6,11,000/- had been paid by respondent No.5—Institute as a consolidated salary during this period. Thereby - 27 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 meaning that the petitioner would be entitled to a sum of Rs.23,33,998/- minus Rs.6,11,000/- i.e., Rs.17,22,998/-. 52. The petitioner has however filed a Memo stating that he is entitled to be paid a sum of Rs.26,78,139/-. 53. In my view, since the State Department has admitted that the petitioner was due in a sum of Rs.17,22,998/-, the State Government is required to pay this amount to the petitioner within a period of two months from the date of receipt of a copy of this order. 54. In respect of the difference, it would be open to the petitioner to establish before the Education Appellate Tribunal where his appeal regarding his termination is pending consideration and make the claim for the differential amount. 55. In the result, the writ petition is accordingly allowed. - 28 - NC: 2025:KHC-K:2596 WP No. 205675 of 2016 56. The State Government is directed to pay the petitioner a sum of Rs.17,22,998/- being the arrears of salary within a period of two months from the date of receipt of a copy of this order. 57. Nothing said in this order shall however be construed as rendering an opinion on the merits of the claim of the petitioner relating to his termination which is said to be pending in EAT No.4 of 2017, and the same will be considered on its own merits. 58. In view of the disposal of the writ petition, all pending interlocutory applications, if any shall stand disposed of. Sd/- (N.S.SANJAY GOWDA) JUDGE RK List No.: 19 Sl No.: 1