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Srusti Academy Of Management vs The State Of Odisha

Supreme Court3 December 2024B.R. Gavai

Ratio decidendi

The rule this decision rests on

Any administrative order involving adverse civil consequences to a regulated entity must be passed with strict adherence to the principles of natural justice, including providing an opportunity of hearing to the affected party, regardless of whether the applicable statute or regulation expressly requires such hearing. Where a statutory scheme—here, the Orissa Professional Educational Institutions (Regulation of Admission & Fixation of Fee) Act, 2007, Sections 6 and 7—prescribes a specific procedure for making determinations affecting regulated institutions, that procedure must be scrupulously followed; a decision made in breach of the prescribed procedural requirements is invalid and must be quashed.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1

NON-REPORTABLE 2024 INSC 939 IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. OF 2024 (Arising out of SLP (C) No(s). 21782/2023)

SRUSTI ACADEMY OF MANAGEMENT Appellant(s)

VERSUS

THE STATE OF ODISHA & ORS. Respondent(s)

WITH CIVIL APPEAL NO. OF 2024 (Arising out of SLP(C) No(s) No. 21921/2023)

CIVIL APPEAL NO. OF 2024 (Arising out of SLP(C) No. 21892/2023)

CIVIL APPEAL NO. OF 2024 (Arising out of SLP(C) No. 22096/2023)

CIVIL APPEAL NO. OF 2024 (Arising out of SLP(C) No. 1663/2024)

O R D E R

B.R.GAVAI, J

1. Leave granted.

2. The appeals challenge the judgment and orders

dated 10.07.2023 and 06.07.2023 passed by the Signature Not Verified

learned Division Bench of the High Court of Orissa Digitally signed by DEEPAK SINGH Date: 2024.12.06 16:31:10 IST Reason:

at Cuttack, thereby the Division Bench of the High

Court has upheld the recommendation dated 2

07.12.2022 of the Fee Structure Committee and the

Notification dated 30.12.2022 issued by the State

Government.

3. The perusal of the record would reveal that

respondent-Fee Structure Committee had reduced the

fees that the appellant(s) could charge to the

students.

4. Indisputably, the said revision was made

without giving an opportunity of being heard to the

appellant(s).

5. It is a settled principle of law that any

order inviting adverse civil consequences cannot be

passed without adherence to the principles of

natural justice. In any case, the relevant

provision itself requires a hearing to be given to

the institution(s) before a revision is made.

6. On this short ground, the appeals deserve to

be allowed. The impugned judgment and orders dated

10.07.2023 and 06.07.2023 passed by the High Court

and recommendation dated 07.12.2022 of the

respondent-Fee Structure Committee and the

Notification dated 30.12.2022 issued by the State

government are quashed and set aside. 3

7. We clarify that for the next academic

session, the respondent-Fee Structure Committee as

well as State Government would determine the fee

structure by following the procedure as set out

under Sections 6 and 7 of the Orissa Professional

Educational Institutions (Regulation of Admission &

Fixation of Fee) Act, 2007 and the law laid down by

this Court.

8. Needless to state that till the fees for the

next academic session are redetermined, the

appellant(s) would continue to charge the fees

which existed before passing the impugned judgment

and order.

9. Pending application(s), if any, stand(s)

disposed of.

….........................J (B.R. GAVAI)

...........................J (K.V. VISWANATHAN)

New Delhi December 03, 2024 4

ITEM NO.27 COURT NO.2 SECTION XI-A

S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal (C) No(s). 21782/2023

[Arising out of impugned final judgment and order dated 10-07-2023 in WP(C) No. 9686/2023 passed by the High Court of Orissa at Cuttack]

SRUSTI ACADEMY OF MANAGEMENT Petitioner(s)

VERSUS

THE STATE OF ODISHA & ANR. Respondent(s)

WITH SLP(C) No. 21921/2023 (XI-A) (IA No.200621/2023-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT)

SLP(C) No. 21892/2023 (XI-A) (IA No.200536/2023-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT)

SLP(C) No. 22096/2023 (XI-A) (FOR ADMISSION and I.R. and IA No.202594/2023-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT)

SLP(C) No. 1663/2024 (XI-A) (IA No.4828/2024-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT)

Date : 03-12-2024 This petition was called on for hearing today.

CORAM :

HON'BLE MR. JUSTICE B.R. GAVAI HON'BLE MR. JUSTICE K.V. VISWANATHAN

For Petitioner(s) Mr. Ashok K. Parija, Sr. Adv. Mr. Gaurav Khanna, AOR Mr. Amritesh Mohanty, Adv. Ms. Natasha Sahrawat, Adv. Ms. Deepali Bhanot, Adv. Mr. Rudraksh Pandey, Adv. Mr. Gautam Barnwal, Adv. Ms. Alisha Roy, Adv.

Mr. Sunil J Mathews, Adv. Ms. Jyoti Rani, Adv.

5 Mr. Samanwaya Rautrey, Adv. Mr. Rohit Singh, Adv.

Mr. Rajeev Singh, AOR

For Respondent(s)

Mr. Niranjan Sahu, AOR Ms. Shivangi Gupta, Adv.

Mr. Dhananjaya Mishra, AOR Mr. Navneet Dogra, Adv.

Mr. Shovan Mishra, AOR

Mr. Prakash Ranjan Nayak, AOR Mr. Debasis Jena, Adv. Mr. Animesh Dubey, Adv.

Mr. Pitambar Acharya, Sr. Adv, Advocate General Ms. Samapika Biswal, AOR Mr. Aman Kumar Yadav, Adv.

UPON hearing the counsel the Court made the following O R D E R

1. Leave granted.

2. The appeals are allowed in terms of the signed non-reportable

judgment.

3. Pending application(s), if any, stand(s) disposed of.

(DEEPAK SINGH) (ANJU KAPOOR) ASTT. REGISTRAR-cum-PS COURT MASTER (NSH) [Signed non-reportable judgment is placed on the file]

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