Writ Petition Raising Private Service Disputes Against Private Education Society Cannot Be Entertained: Supreme Court

The Supreme Court has observed that a writ petition under Article 226 of the Indian Constitution can not be entertained against a private education society for the adjudication of private service disputes.

In that context, the Bench of Justice JB Pardiwala and Justice Manoj Misra observed that, "the High Court committed an egregious error in entertaining the writ petition filed by the respondents herein holding that the appellant society is a “State” within Article 12 of the Constitution."

These appeals arose from a common judgment and order passed by the High Court of Uttarakhand at Nainital on November 2, 2018. The High Court dismissed the appeals filed by the appellants and affirmed the judgment and order of the single Judge dated August 5, 2014. The case involved a dispute regarding the employment conditions of teaching and non-teaching staff after the Bengal Engineering Group and Centre leased land to the Institute of Brothers of St. Gabriel, which ran a school. After the lease ended, the Army Welfare Education Society (AWES) took over the school.

The single Judge of the High Court issued a mandamus preventing the appellants from changing the service conditions of the staff to their disadvantage. The Division Bench later modified this order, allowing AWES to take over the management of the school but stating that staff salaries should align with AWES standards.

The appellants argued that the staff had no claim against AWES since they were originally employed by St. Gabriel's Academy. The court suggested a meeting between the parties to resolve the dispute, ensuring that staff would not be displaced and would have service conditions on par with Army Public Schools.

The Supreme Court issued an interim order on July 23, 2021, staying the High Court's judgments. The order ensured that the employees would remain on the rolls of the Army Public School and receive emoluments and conditions of service equivalent to other AWES employees of the corresponding grade.

The Apex Court considered the question of whether the appellant Army Welfare Education Society is a “State” within Article 12 of the Constitution of India so as to make a writ petition under Article 226 of the Constitution maintainable against it.

In that context, the Court observed that, "Undoubtedly, the school run by the Appellant Society imparts education. Imparting education involves public duty and therefore public law element could also be said to be involved. However, the relationship between the respondents herein and the appellant society is that of an employee and a private employer arising out of a private contract. If there is a breach of a covenant of a private contract, the same does not touch any public law element. The school cannot be said to be discharging any public duty in connection with the employment of the respondents."

Subsequently, the appeals were allowed, and the order of the High Court was set aside.

Cause Title: Army Welfare Education Society New Delhi vs Sunil Kumar Sharma & Ors. Etc.

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