- (1.) The main controversy raised in this writ petition is whether Budge Budge College is covered under the Notification dated August 28, 2006 by which all private educational institutions were brought under the scope and ambit of the Employee's State Insurance Act, 1948 (hereinafter referred to as "the said Act"). Learned Counsel for the writ petitioner would contend that the writ petitioner Budge Budge College affiliated to the University of Calcutta is not at all covered by the Gazette Notification since it is not a private educational institution. Learned Counsel would also contend that the inspection carried out by the concerned Insurance Inspector and the impugned recommendation for applying the provisions of the said Act as well as the notice of coverage dated April 16, 2007 are all without jurisdiction and as such nullity. He would contend that to come within the scope and ambit of the aforementioned notification the educational institution should be a private one and run by individual, group of individuals, trustees, corporate bodies or societies wherein twenty or more persons are employed or were employed. He would contend that the writ petitioner, Budge Budge College accepted the coverage under the West Bengal Collage (Payment of Salaries) Ordinance, 1978 for taking financial assistance from the State Government. Since the petitioner College is covered by the aforementioned Ordinance some restrictions are imposed on it. The restrictions imposed under the Ordinance are as follows:- 4. (1) No college shall incur any expenditure on capital account without the prior approval of the State Government. (2) A college authority shall not allow free studentship beyond the limit fixed by the State Government in respect of that college. (3) No college shall, without the previous approval of the State Government, revise the rates of tuition fees and other fees and charges. (4) A college authority shall not allow, without the prior approval of the Director of Public Instruction, West Bengal or any officer authorised by him in this behalf any reduction of remission of fees: Provided that the Principal of a college shall be competent to remit fines fixed for late payment of tuition and other fees. (5) It shall be the duty of a college authority to collect tuition fees, fines and other charges from each and every student on the roll of such college, except those who are granted free-studentship, and such fees as may have been fixed for students enjoying such benefit and to pay the State Government seventy-five per cent of the assumed income. 5. A college authority shall within fifteen days of the expiry of a month deposit with the State Government under appropriate head of account as may be specified by the State Government seventy five per cent of the actual income of that month and may retain the balance for being spent on non-salary items of a recurring nature according to schedule of expenditure approved by the State Government.
(2.) In view of coverage under the aforementioned Ordinance the governing body of the College is obliged to comply with the directions of the Government. In case of failure to comply with the provisions of the aforementioned Ordinance the Government may by its order supersede the management of the College. The Ordinance has overriding effect. The Government's power of suppression and control as stipulated under the Clauses 7, 8, 9, 10 and 11 of the aforementioned Ordinance is quoted hereunder:- 7. (1) If any college authority fails to comply with the provisions of sub- (1) or the direction under sub-section (2) of section 6 of the State Government may, by an order in writing published in the Official Gazette, supersede the college authority for a period not exceeding one year at a time and appoint an Administrator to discharge the functions of the college authority. (2) The State Government may, if it is satisfied that it is no longer necessary to retain the Administrator, cancel the appointment of the Administrator before the expiry of the period of supersession and make over the administration of the college to the college authority. 8. Every college shall submit to the Director of Public Instruction. West Bengal budget estimates for a year in advance by such date as may be specified by him. 9. The Provisions of this Ordinance shall have effect notwithstanding anything to the contrary contained in any other law or in my instrument or in any custom or usage. 10. The State Government may from time to time give such directions no inconsistent with the provisions of this Ordinance, to a college as may be necessary for carrying out the purposes of this Ordinance. 11. If any difficulty arises in giving effect to the provisions of this Ordinance, the State Government may, by order not inconsistent with the provisions of this Ordinance, remove that difficulty.
(3.) Learned Counsel drew attention of this Court to another memo No. 3(250) CGA dated 7th February, 1978, by which some more conditions were imposed which are to be carried out by the College. Item (a) to (h) of Clause 2 of the memo dated 7th February, 1978 reads as follows:- 2. By way of implementation of the Ordinance the following conditions shall have to be carried out. (a) Grants will have to be released periodically by Director of Public Instruction or any officer authorized by the D.P.I. to the Colleges with effect from the current month to enable to make payment of salaries in full (including the College scales) to the teaching and not-teaching staff. (b) It will be obligatory on the part of the Colleges to credit to the State Government under the following head of account 75% of the assumed income as defined in the Ordinance. 077-Education-E-University and other higher Education-I-Tuition and other fees-Non-Govt. Colleges. (c) Each college will be free to utilize the balance 25% of such income for expenditure on recurring non-salary items according to the approved Schedule (copy enclosed). (d) No college shall incur any expenditure on Capital Account without the prior approval of Government. (e) No college authority shall allow free studentship beyond the limit fixed by Government. (f) The rates of tuition and other fees and charges shall not be revised by any College without the previous approval of Government. (g) No college authority shall allow, without the prior approval of the D.P.I. or any officer authorised by him in the behalf, any reduction or remission of fees. (h) Every college authority shall submit quarterly statement of accounts of the assumed and actual income in a proforma enclosed herewith.;