The Kerala High Court has held that the property of the aided school cannot be mortgaged without obtaining permission under the Kerala Education Act, 1958.

The Court was deciding a writ petition filed by the Manager of PAMM Upper Primary School, an aided school in Palakkad who challenged the notice of sale of immovable property and to set aside the same.

A Single Bench of Justice Basant Balaji said, “In result, the writ petition is allowed. Ext.P6 is quashed to the extent it relates to item nos.2 and 3. It is also declared that 5th respondent did not have any right to mortgage the properties without obtaining permission as required under the Kerala Education Act, 1958, and the Rules 1959.”

The Bench observed that the act of the respondent is contrary to the provisions of the Kerala Education Act and the Kerala Education Rules, 1959.

Advocate R. Harishankar appeared on behalf of the petitioner in this case.

Factual Background -

The school was established in the year 1905, and the former Educational Agency of the school was one Balameenakshi Amma. Due to her old age, she requested the Assistant Educational Officer to transfer the management of the school without involving a change of ownership to the former manager. A sanction was accorded to transfer the management of the school without involving a change of ownership in the name of the said manager.

The school had more than 400 students studying in classes from I to VII. The property of the school extended to 1 Acre and 8 cents covered by five documents belonging to the respondent Educational Agency. The properties were agreed to be sold to the petitioner under an agreement for sale. The two properties were part and parcel of the school covered by document owned by the Educational Agency.

The High Court in the above context of the case noted, “… a duty is cast on a Manager, and the Manager should submit a statement of movable and immovable properties to the educational authorities. Without the permission of the educational authorities, the Manager cannot mortgage, sell, or lease the property.”

The Court said that the educational agency without giving a mandate in Rule 1 of Chapter X and without obtaining permission from the authorities, and Section 6 of the Kerala Education Act, mortgaged the properties of the school specifically stated in notice, describing it as residential properties, even though it belonged to the school and was lying as a playground.

“In view of the specific provisions of the Kerala Education Act, 1958 and the Rules 1959, mentioned above, the 5 th respondent has no right to mortgage item nos.2 and 3 in Ext.P6 notice. Therefore, the act of the 5th respondent is contrary to the provisions of the Kerala Education Act, 1958, and the Rules 1959 and Ext.P6 is liable to be set aside to the extent of item nos.2 and 3 of Ext.P6”, observed the Court.

Accordingly, the High Court allowed the writ petition.

Cause Title- Swaroop V. v. State of Kerala (Neutral Citation: 2023:KER:49913)

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