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CASE NO.: Writ Petition (civil)  19 of 2004

PETITIONER: Prof. Yashpal & Anr.                                     

RESPONDENT: State of Chhattisgarh & Ors.                             

DATE OF JUDGMENT: 11/02/2005

BENCH: CJI,G. P. Mathur & P.K. Balasubramanyan

JUDGMENT: JUDGMENT With Writ Petition (Civil) Nos.295, 299,  346 and 525 of 2004,  Writ  Petition (Civil) Nos.565 of 2003, Civil Appeal Nos.5146, 5161, 5171, 5172,  5174, 5175, 5180, 5184, 5185, 5188, 5189, 5190, 5191, 5197 and 5198 of  2004.  

G.P. MATHUR, J.

1.      Professor Yashpal, an eminent Scientist and former Chairman of  University Grants Commission, has filed Writ Petition No.19 of 2004 under  Article 32 of the Constitution by way of public interest litigation for  declaring certain provisions of The Chhattisgarh Niji Kshetra  Vishwavidyalaya (Sthapana Aur Viniyaman) Adhiniyam, 2002 as ultra vires  and for quashing of the notifications issued by State of Chhattisgarh in the  purported exercise of power conferred by Section 5 of the said Adhiniyam  for establishing various universities..  The other petitioner who has joined in  the petition, is a resident of Chhattisgarh and is concerned with the quality of  education in his State.  The respondent no.1 to the petition is the State of  Chhattisgarh, respondent no.2 is the University Grants Commission and  respondent nos.3 to 94 are the private universities which have been  established by the State of Chhattisgarh under the aforesaid Adhiniyam.    

2.      The Chhattisgarh Legislature enacted the Chhattisgarh Niji Kshetra  Vishwavidyalaya (Sthapana Aur Viniyaman) Adhiniyam, 2002 (for short  ’the Act’) which was published in the Gazette on 4.2.2002 to establish self- financed private universities for higher education.   Under Section 5 of the  Act the State has been empowered to incorporate and  establish a university  by issuing a notification in the Gazette and Section 6 permits such university  to affiliate any college or other institution or to set up more than one campus  with the prior approval of the State Government.  The main averments in   the petition are that after coming into force of the Act, the State Government  has been, simply by issuing notifications in the Gazette, establishing  universities in an indiscriminate and mechanical manner without having  slightest regard to the availability of any infrastructure, teaching facility or  their financial resources.   In a short span of about one year as many as 112  universities were established and many of them had absolutely no buildings  or campus and were running from one room tenements.  There was  absolutely no regulation or supervision over them.   The legislation has been  enacted in a manner which has completely done away with any kind of  control of University Grants Commission (for short ’UGC’) over these  private universities.   The guidelines issued by UGC on the courses being  taught and award of academic degrees has been given a complete go-by.    The universities issued brochures for award of all kinds of degrees like  "Member of the International Institute of Medical Sciences", "Fellow of the  International Institute of Medical Sciences" and many other similar degrees.    The universities are wholly incapable of imparting any education much less  a quality education in absence of basic infrastructure like classrooms,  libraries, laboratories or campus.   Nevertheless by conferment of a legal  status of a university, they have been empowered to award degrees.  The

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private universities are running professional courses without taking prior  permission from regulatory bodies such as All India Council of Technical  Education (AICTE), Medical Council of India (MCI), Dental Council of  India (DCI), etc. The requirement of obtaining prior permission from the  regulatory bodies has not been followed and the universities are not under  the control of any authority and are at liberty to grant degrees, diplomas and  certificates to gullible students.  The State Government has not done any  verification or checking of universities after issuance of notification in the  Gazette, whether they fulfill any norms laid down by the statutory bodies,  which is essential for recognition of the degrees, diplomas and certificates  awarded by such universities.   In absence of requisite permission from the  statutory bodies, the degrees and certificates awarded by such universities  would not be recognized by the professional organizations, as a result  whereof the students studying in such universities and obtaining the degrees  therefrom would suffer immense loss, both in terms of money and also the  time spent in completing the courses.  It is further averred that the University  Grants Commission Act is made nugatory as private universities are offering  courses without subscribing to the standards laid down by the UGC and  there being no homogeneity of the course content, the degree awarded may  not be of any value.   The private universities are offering unheard of courses  and degrees which are not part of schedule to the UGC Act, which is in clear  violation of Section 22 of the aforesaid Act and the Schedule appended  thereto.   The minimum requirement of teaching staff as laid down in the  guidelines of UGC had also been given a complete go-by.   Young students  are being misled in enrolling themselves in courses which do not have any  substantive content and the degrees offered by such private universities  would affect the standard of education at large which in turn will jeopardize  the educational system of the whole country and not that of State of  Chhattisgarh alone.    

3.      Some photographs have also been filed which show that a signboard  mentioning the name of the University is put over small room or shop on  first or second floor in some congested market area. That they are  functioning from small premises which are sometimes a single small room in  a commercial complex or a small tenement on the first or second floor of a  building or an ordinary flat or MIG house is evident from their address and a  few of them are being reproduced below by way of illustration :

Respondent No.3                 : Thamath University, Raipur                                    Room No.201, IInd Floor                                    Raipur Commercial Complex                                    Jairam Complex, Raipur.

Respondent No.13                :  I.I.L.M. University                                    Mishr Bhawan, 1st Floor                                             Tatyapara, Raipur.  

Respondent No.36                :  Supreme University                                             M.I.G. 6, Sector 3                                    Shankar Nagar, Raipur.

Respondent No.37                :  E.M.P.I. University                                             C-9-12, 1st Floor                                             Ekatam Prishar                                             Rajbandha Maidan, Raipur.  

Respondent No.42                :  Jaipuria University, Raipur                                    1st Floor, Mishr Bhawan, Raipur.

  Several such universities are functioning outside the State of  Chhattisgarh, and their addresses as given below demonstrate the said fact :

Respondent No.7                 :  N.I.I.L.M. University                                    11/66, Shershah Suri Marg

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                                  Mohan Co-operative Industrial Estate,     New Delhi.

Respondent No.9         :  Lovely University                                    Lovely Auto Complex                                             Dr. Ambedkar Chowk                                    Jalandhar City.

Respondent No.10        :  Babu Banarasi Dass University                                    Babu Banarasi Dass Northern Indian Foundation                                    Upper Ground Floor, 338-384, S- Block                                       New Rajinder Nagar, New Delhi.

Respondent No.12                :  Dr. Zakir Hussain National University                                    Unopcharik av Anvrat Shikshan Sansthan                                    Satellite Centre, Balley Road                                    Patna.

Respondent No.45                :  Bio-Informatics, Bio-Tech. and Life Science                                     University, Raipur                                    Bio-Informatic Institute of India                                    B-5, Sector 3                                    Noida.

Respondent No.46                :  Institute of Business Administration                                    (N.C.D. Office) Ground Floor                                   E-382, Greater Kailash Part II                                   New Delhi.

Respondent No.53                :  Adarsh University of Science & Technology,                                     Chhattisgarh,                                     N.I.C.I. Society, 54, Todarmal Road                                    Bengali Market                                    New Delhi.                                     

4.      Writ Petition (Civil) No. 565 of 2003  has been filed by Gopal Ji  Agarwal with the same prayer, namely, that the Chhattisgarh Niji Kshetra  Vishwavidyalaya  (Sthapana Aur Viniyaman) Adhiniyam 2002 be declared  as ultra vires being violative of Constitution of India, and also contrary to  the provisions of University Grants Commission Act, 1956, Indian Medical  Council Act, 1956, All India Council for Technical Education Act, 1987 and  Bar Council of India Act, 1956.  A further prayer has been made that  a writ  of prohibition may be issued restraining the private universities incorporated  under the aforesaid Act from imparting any education and conferring any  degrees or diplomas.  The averments made in the writ petition are  substantially the same as made in the writ petition filed by Prof. Yash Pal,   that a large number of universities have been incorporated by merely issuing  gazette notifications though they do not have any kind of infrastructure or  teaching facility and are functioning from one room tenement in a second or  third floor in a residential or commercial building and without any teaching  staff.  The universities have been established merely to confer degrees and  they have on their own created a large number of degrees and diplomas  which are totally unheard of.  The universities had issued advertisements for  opening up study centres in different parts of the country for award of any  number of degrees and diplomas. By way of illustration, copies of  advertisements issued by some of the universities have been filed.  One of  such university,  namely, the Indian University, issued an advertisement  inviting applications for Nodal Service Centres/University Centres for  awarding the following kind of degrees and diplomas:   

?        Master of Biotechnology Administration (MBA)     -    2 Yrs. ?        Master of Insurance Management (MIM)          -    2 Yrs. ?        M. Tech in Bioinformatics                                     -    2 Yrs.

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?        M. Tech VLSI (Very Large Scale Intg. Circuits)      -    2 Yrs. ?        M. Tech Elect. Mechanics & Power Semi   Conductor Drive                                               -   2 Yrs. ?        M. Tech Energy Management Systems                     -   2 Yrs. ?        M.Sc. Cheminformatics (Intg)/Bioinformatics(Intg) -   5 Yrs. ?        M.Sc. Biotechnology (Intg.)                                      -   5 Yrs. ?        M.Sc. Bioinformatics/Biotechnology                      -   2 Yrs. ?        B.Sc. with Bioinformatics/Microbiology/          Biotechnology                                                -    3 Yrs. ?        B.Sc. with Automobiles Science                         -    3 Yrs.    ?        PGD in Biotech Marketing                                     -    1 Yr. ?        PGD in Imaging (CT Scan) & (MRI)                     -    2 Yrs. ?        PGD in Bioinformatics                                             -    1.5 Yrs. ?        PG Diploma in Cheminformatics                          -    1 Yr. ?        PG Diploma in Mobile Technology                      -    1 Yr. ?        PG Diploma in Energy Audit and Conservation      -    1 Yr. ?        PG Diploma in Acturial/Sciences in Bioinformatics-   1  Yr.     

The writ petitioner, not knowing the correct facts, responded for  opening up a study centre and he was asked to deposit Rs. 50,000/-  which  he did by two Demand Drafts. On enquiry regarding prior permission from  Medical Council of India, the Registrar of the Indian University issued a  certificate which reads as under:

" Certified that following PARA MEDICAL COURSES   are approved by INDIAN UNIVERSITY, RAIPUR.

       1)  B P T   - 2 Year         2)  Bachelor of Ophthalmology  - 2 Year          3)  B M L T  -  4 Year               4)  PG Diploma in Imaging (MRI) \026 1 Year  

It is further certified that for Para Medical Course MCI  approval is not required and it is not covered by MCI  also."

It is further averred that the Indian University, Raipur  also issued an  advertisement inviting applications for admission to certain types of  technical courses in its alleged campus at Graduate School of Business &  Administration, Greater Noida, which is in the district of Gautam Budh  Nagar, in the State of UP and it was mentioned therein that the candidates  may apply to the Registrar by sending a Bank Draft of Rs. 800/-.  A  photocopy of the advertisement has been filed.   It has thus been submitted  that though the private universities have no infrastructure for imparting any  kind of education, they were alluring people all over the country to open  study centres  for which they were charging huge amount and also befooling  students to apply for admission to wholly unknown and unheard of  technical, medical and other professional courses which are not recognized  by any statutory authority, and thereby a substantial amount of money has  been collected.   

5.      In a stereotyped manner Gazette notifications were issued notifying a  University and by way of illustration one such notification is being  reproduced below : "Raipur, the 11th October, 2002

No. F. 679/\005\005\005\005/02.    \026In exercise of the powers   conferred by sub-Section (1) of Section 5 of the Chhattisgarh  Niji Kshetra Vishwavidyalaya (Sthapana Aur Viniyaman),  Adhiniyam, 2002 (No. 2 of 2002) for extension of  Higher/Technical Education in Chhattisgarh, hereby,  establishes a University known as "Indian University, Raipur"  with effect from the date of publication of this notification in

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the Chhattisgarh Gazette and the jurisdiction of the University  shall extend over whole of Chhattisgarh.           2.      The Head Office of the University shall be at Raipur.

3.      The State Government, hereby authorizes "Indian   University, Raipur" to conduct the syllabus and to grant  degree or diplomas for which it shall be recognized or  authorized as may be required under any other law for  the time being in force."

6.      Several  legal issues have also been raised in the writ petitions and the  principal being that the manner in which these private universities are  functioning would result in creating a complete chaos in the system of  higher education in the country and the expert bodies created by the  Central  Government like, University Grants Commission, Medical Council of India,  All India Council for Technical Education etc. for coordination and  determination of standards in their own respective fields would not be able  to perform their statutory duty and would make their functioning not only  difficult but almost impossible.

7.      The State of Chhattisgarh has filed brief but almost identical counter  affidavits in both the writ petitions.   The main plea taken therein is that in  view of Entry 32 List II of Seventh Schedule to the Constitution, the State  has the legislative competence to make an enactment regarding  incorporation of a University.   The impugned Act had been passed to  facilitate establishment of private Universities with a view to create  supplementary resources for assisting the State Government in providing  quality higher education.   The notifications establishing the Universities  were issued on the basis of the representations made by the sponsoring  bodies as set out in their project reports.   The State Government expected  that the Universities would make the requisite infrastructure including  campus, building, etc. and recruit qualified staff  so as to provide higher  education in order to achieve the object for which the Universities were  established.  However, the functioning of the Universities post notification  was dismal and completely belied the expectations which the State  Government had in that behalf, raising serious concern about the academic  interests of the students seeking admission therein. The State Legislature,  accordingly, enacted the Chhattisgarh Niji Kshetra Vishwavidyalaya  (Sthapana Aur Viniyaman) Sansodhan Adhiniyam, 2004.   After expiry of  the time limit fixed in the aforesaid amending Act, 59 Universities were de- notified on account of their failure to comply with the amended provisions.  It is further averred that after the Act had been amended in the year 2004,  the petitioners’ grievance has been completely met and consequently the  writ petitions deserve to be dismissed.   

8.      Before we advert to the principal submission of learned counsel for  the parties regarding the vires of Section 5 and 6 of the Act, it is necessary   to take note of the relevant constitutional provisions dealing with education  and Universities, both under Government of India Act, 1935, and the  Constitution.  

SEVENTH SCHEDULE OF GOVERNMENT OF INDIA ACT, 1935

LIST 1 \026 FEDERAL LEGISLATIVE LIST

12.     Federal agencies and institutes for the following purposes, that is  to say, for research, for professional or technical training, or for the  promotion of special studies.

13.     The Banaras Hindu University and the Aligarh Muslim University.  

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LIST II \026 PROVINCIAL LEGISLATIVE LIST 17.     Education including Universities other than specified in paragraph       13 of List I.

33.     The incorporation, regulation, and winding up corporations (not  being Corporations specified in List I or Universities);  unincorporated trading, literary, scientific, religious and other  societies and associations; co-operative societies.

SEVENTH SCHEDULE TO THE CONSTITUTION OF INDIA LIST I \026 UNION LIST 63.     The institutions known at the commencement of this Constitution  as the Banaras Hindu University, the Aligarh Muslim University  and the Delhi University; the University established in pursuance  of article 371E; any other institution declared by Parliament by law  to be an institution of national importance.  

64.     Institutions for scientific or technical education financed by the  Government of India wholly or in part and declared by Parliament  by law to be institutions of national importance.   

65.          Union agencies and institutions for \026 (a)          professional, vocational or technical training, including the  training of police officers; or

(b)          the promotion of special studies or research; or (c)          scientific or technical assistance in the investigation or  detection of crime.

66.     Co-ordination and determination of standards in institutions for  higher education or research and scientific and technical education.          LIST II \026 STATE LIST 11.     Education including universities, subject to the provisions of  Entries 63, 64, 65 and 66 of List I and Entry 25 of List III.   

       (This Entry was deleted by Forty-second Amendment Act) 32.     Incorporation, regulation and winding up of corporation, other than  those specified in List I, and universities; unincorporated trading,  literary, scientific, religious and other societies and associations;  co-operative societies.          

LIST III \026 CONCURRENT LIST 25.         Education, including technical education, medical education and      universities, subject to the provisions of entries 63, 64, 65 and 66  of List I; vocational and technical training of labour.    

       The Constitution (Forty-second Amendment) Act, 1976 which came  into force on 3.1.1977 omitted Entry 11 from List II and transferred that  subject to be combined with Entry 25 of List III.

9.      The foundation for a federal set up for the nation was laid in the  Government of India Act, 1935.   Though in every respect the distribution of  legislative power between the Union and the States as envisaged in the 1935  Act has not been adopted in the Constitution but the basic framework is  same.  It will be seen that Entry 17 in List II of Seventh Schedule in  Government of India Act specifically provided for Universities and the same  is now part of Entry 32 in List II of the Seventh Schedule of the  Constitution.   Entries 17 and 33 of  List II of  Government of India Act have  been combined and made one composite entry (Entry 32) in List II of the  Seventh Schedule of the Constitution.  

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10.     How the word "Universities" occurring as a legislative head in the  Seventh Schedule should be interpreted, one has to look to the legislative  practice regarding interpretation of Constitutional entries.    For this purpose,  it will be useful to refer to some well-known decisions.    

In South Carolina v. United States, (1905) 199 US 437, the principle  was stated as under :

       "To determine the extent of  the grants of power,  we must, therefore, place ourselves in the position of the  men who framed and adopted the Constitution, and  inquire what they must have understood to be the  meaning and scope of those  grants."     

       In Ex parte Grossman, (1925) 267 US 87, the U.S. Supreme Court  observed that the language of the Constitution cannot be interpreted safely  except by reference to the common law and to British institutions as they  were when the instrument was framed and adopted.   In Croft v. Dunphy,  1933 AC 156, it was held as under : "When a power is conferred to legislate on a  particular topic it is important, in determining the scope  of the power, to have regard to what is ordinarily treated  as embraced within that topic in legislative practice and  particularly in the legislative  practice  of the State which  has conferred the power. Thus in considering what might  be appropriately and legitimately enacted in relation to  "bankruptcy and insolvency" it was considered relevant  to discuss the usual contents of bankruptcy statutes."                    

       Similarly, in Wallace Brothers and Co. Ltd. v. Commissioner of  Income-tax, Bombay, AIR 1948 PC 118, the Judicial Committee observed  that where Parliament has conferred a power to legislate on a particular topic  it is permissible and important in determining the scope and meaning of the  power to have regard to what is ordinarily treated as embraced within that  topic in the legislative practice of the United Kingdom.   The object is to  ascertain the general conception involved in the words in the enabling Act.   

11.     In Constitutional Law of India by Seervai, the learned author has said  in para 2.12 (3rd ed.) that the golden rule of interpretation is that words  should be read in their ordinary, natural and grammatical meaning subject to  the rider that in construing words in a Constitution conferring legislative  power the most liberal construction should be put upon the words so that  they may have effect in their widest amplitude.   This is subject to certain  exceptions and a restricted meaning may be given to words if it is necessary  to prevent a conflict between two exclusive entries.   

12.     The framers of the Constitution having adopted (with some  modification) the legislative entries on Universities from the Government of  India Act, 1935 made by the British Parliament, the full content and  amplitude of the entry can be comprehended by examining how a University  is understood and what is its concept in U.K. and U.S.A. whose pattern was  followed in several matters and which the founding fathers had in their  mind.  

13.     In Volume 15 Halsbury’s Laws of England (Fourth ed. Reissue) what  is a University and how it is incorporated is described as under :

Para 256.       General.   A university is the whole body of teachers and  scholars engaged, at a particular place, in giving and  receiving instruction in the higher branches of learning;  such persons associated together as a society or corporate  body, with definite organization and acknowledged  powers and privileges (especially that of conferring

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degrees),  and forming an institution for the promotion of  education in the higher or more important branches of  learning; also, the colleges, buildings and other property  belonging to such a body.  Although the institutions to  which it refers are readily identifiable, precise and  accurate definition is difficult.  The essential feature of a  university seems to be that it was incorporated as such by  the sovereign power.    

               Other attributes of a university appear to be the  admission of students from all parts of the world, a  plurality of masters, the teaching of one at least of the  higher faculties, namely theology, law or philosophy  (which in some definitions are regarded as identical) and  medicine, provision for residence and the right to confer  degrees, but possession of these attributes will not make  an institution a university in the absence of any express  intention of the sovereign power to make it one.  A  university involves the relation of tutor and pupil; it is  charged with the supervision and upbringing of the pupil  under tuition.  Incorporation was anciently effected by  papal grant or charter, and later by royal charter or Act of  Parliament.          The practice adopted in the case of the most recent  foundations is to incorporate the university by royal  charter, to which there is annexed a schedule containing  the original statutes of the university, and thereafter to  obtain the passing of a local Act of Parliament vesting in  the university the property and liabilities of any  institution which it replaces and making other necessary  provisions.

       A copy of any application for a charter for the  foundation of any college or university which is referred  by the Queen in Council for the report of a committee of  the Privy Council must be laid before Parliament,  together with a copy of the draft charter, for not less than  30 days before the committee reports upon it.    

In 15A American Jurisprudence 2d  "University" has been defined as  under :  Para 1. Definitions.              Properly speaking, a "university" is an aggregation  or union of colleges.  It is an institution in which the  education imparted is universal, embracing many  branches, such as the arts, sciences, and all manner of  higher learning, and which possesses the power to confer  degrees indicating proficiency in the branches taught.

The word "college" has been said to be employed  in the United States to indicate an institution of learning,  having corporate powers, and possessing the right to  confer degrees, and which, with reference to its  educational work, consists of the trustees, teachers, and  scholars, all of whom make up the membership of the  college and represent its active work.  The term "college"  may also be used to indicate a building, or group of  buildings, in which scholars are housed, fed, instructed,  and governed while qualifying for university degrees,  whether the university includes a number of colleges or a  single college.  In a broad sense, the terms "college" and

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"university" convey the same idea, differing only in  grade, with each indicating an institution of learning  consisting of trustees, teachers, and scholars as making  up its membership and representing its active work, or an  institution engaged in imparting knowledge to resident  students and possessing the right to confer degrees.  

       In the footnote to this paragraph reference is made to a decision which  has some kind of  similarity with the case in hand and the footnote reads as  under :

A school offering correspondence courses in  professional and other educational subjects, sending  students textbooks and lessons to study, giving  examinations based thereon, and awarding diplomas or  degrees, but having no entrance requirements, resident  students, library, laboratory, or faculty, is not a  university.  Branch v Federal Trade Com. (CA7) 141 F2d  31)    

In the New Encyclopedia Britannica (15th ed) "University" has been  described as under :

(Page 165)      University, institution of higher education, usually  comprising a liberal arts and sciences college and  graduate and professional schools and having the  authority to confer degrees in various fields of study.                        \005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005 \005\005\005\005\005                      \005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005 \005\005          (Page 186)      Universities and students looked toward ways of  creating opportunities for a satisfying career outside  traditional roles for graduates in scholarship, teaching,  and the professions.  The university’s basic traditional  functions remain unchanged \026 enabling students to  learn from their cultural heritage, helping them to  realize their intellectual and creative abilities, and  encouraging them to become humane and responsible  people.  The university expands knowledge across the  entire spectrum of disciplines, and it can add to the  understanding and enjoyment of life.  It continues to  be needed for imaginative solutions to the problems of  society.                                                                 

14.     Shortly after independence on 4.11.1948 the Government of India  constituted a Commission known as "University Education Commission" of  which Dr. S. Radhakrishnan was the Chairman.   Dr. Tara Chand, former  Vice-Chancellor, Allahabad University, Dr. Zakir Hussain, Vice-Chancellor,  Aligarh Muslim University, Dr. A. Lakshmanaswami Mudaliar, Vice- Chancellor, Madras University, Dr. Meghnad Saha, Dean, Faculty of  Science, Calcutta University and 5 other eminent personalities in the field of  education were its members.  The Commission gave a very long and  exhaustive report.  Chapter II of the report deals with the aims of University  education and Para 2 of Part I is illustrative and the same is being  reproduced below :

"2.     Universities as the Organs of Civilization \026 He  indeed must be blind who does not see that, mighty as are  the political changes, far deeper are the fundamental  questions which will be decided by what happens in the

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universities.  Everything is being brought to the test of  reason, venerable theologies, ancient political  institutions, time-honoured social arrangements, a  thousand things which a generation ago looked as fixed  as the hills.   If India is to confront the confusion of our  time, she must turn for guidance, not to those who are  lost in the mere exigencies of the passing hour, but to her  men of letters, and men of science, to her poets and  artists, to her discoverers and inventors.   These  intellectual pioneers of civilization are to be found and  trained in the universities, which are the sanctuaries of  the inner life of the nation."

       In the introductory paragraph of Chapter IV dealing with standards of  teaching, the Commission recorded its views in the following words : The need for High Standards. Introduction -  It is the primary duty of a university to  maintain the highest standards of its teaching and  examinations.  A university is a place of higher education  where the personality and capacities of the students are  developed to the utmost by teachers who should  themselves be at work at the frontiers of knowledge in  their respective fields.  The success of a university is to  be judged as much by the type of graduate it turns out as  by the amount and quality of research contributed by its  teachers and research students.  It must be clearly  recognized that there is no conflict involved between the  twofold function of a university to educate its members  and to advance the frontiers of knowledge \026 the two  functions are, in fact, complementary.   Unless high  standards of teaching and examinations are maintained,  research will suffer, since research can continue  uninterruptedly only if there is a regular supply of  graduates well prepared by general education for  specialized research work.  On the other hand, if research  is neglected by teachers, their teaching will lack vitality  and will rapidly become stale.  A degree must always be  what a university makes it by the kind of teaching it  imparts and the type of intellectual and social life it  provides for its members.  If our universities are to be the  makers of future leaders of thought and action in the  country, as they should be, our degrees must connote a  high standard of scholarly achievement in our graduates.  

       The Commission noted that many of the Universities did not compare  favourably with the best of British and American universities in respect of  their teaching and examination standards. Unless highest standards of  teaching in the Universities are ensured, the degree given by them will not  command recognition and respect.   The Commission observed :

"\005\005\005Our universities should maintain the academic  character of their work on a level recognized as adequate  by the universities of other countries.   Universities are  our national institutions, and to keep up our national  prestige, our degrees must be such as to command  international recognition\005\005\005"

15.     The Government of India constituted a Committee in December, 1961  to consider broadly the organizational structure of the Universities in India  and to prepare the outline of a "Model Act" suited to their role and functions  of which Dr. D.S. Kothari, Chairman, UGC was the Chairman and several  other persons who were either Vice-Chancellors of Universities or were  connected with the field of education were members.   In the concluding   part of the First Chapter, the Committee noted as under :

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"\005\005 The function of the university is not only to  preserve, disseminate and advance knowledge but also to  furnish intellectual leadership and moral tone to society.    No less important is the role of universities in promoting  national integration and a common culture, and in  bringing about the social transformation that is desired.    Finally, universities have also to provide trained  personnel to advance the country’s prosperity by making  full use of modern knowledge.   The organizational  pattern must enable the universities to achieve these  objectives."

       These reports prepared by most learned and eminent educationists in  post independence era highlight the primary function of the Universities viz.  teaching and research and to provide trained and qualified personnel for the  progress of the nation.

16.     Though incorporation of a University as a legislative head is a State  subject (Entry 32 List II) but basically University is an institution for higher  education and research.   Entry 66 of List I is coordination and determination  of standards in institutions for higher education or research and scientific  and technical institutions.  There can thus be a clash between the powers of  the State and that of the Union.   The interplay of various entries in this  regard  in the three lists of the Seventh Schedule and the real import of Entry  66 of List I have been examined in several decisions of this Court.   In  Gujarat University v. Shri Krishna AIR 1963 SC 703, a decision by a  Constitution Bench rendered prior to Forty-second Amendment when Entry  11 of List II was in existence, it was held that Item No.63 to 66 of List I are  carved out of the subject of education and in respect of these items the  power to legislate is vested exclusively in the Parliament.   The use of the  expression "subject to" in item 11 of List II of the Seventh Schedule clearly  indicates that the legislation in respect of excluded matters cannot be  undertaken by the State Legislatures.   In para 23, the Court held as under :

"\005\005\005\005\005\005\005\005 Power of the State to legislate in  respect of education including Universities must to the  extent to which it is entrusted to the Union Parliament,  whether such power is exercised  or not, be deemed to  be restricted.  If a subject of legislation is covered by  items 63 to 66 even if it otherwise falls within the larger  field of "education including Universities" power to  legislate on that subject must lie with the Parliament.  \005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005\005 \005\005\005\005\005\005\005\005. Item 11 of List II and item 66 of  List I must be harmoniously construed.  The two entries  undoubtedly overlap; but to the extent of overlapping,  the power conferred by item 66 List I must prevail over  the power of the State under item 11 of List II.  It is  manifest that the excluded heads deal primarily with  education in institutions of national or special  importance and institutions of higher education  including research, sciences, technology and vocational  training of labour.    

       The following observations in paras 24 and 25 highlight the  supremacy of legislation made by the Parliament with reference to Entry 66: "24.    \005\005\005\005\005 The validity of the State legislation  on University education and as regards the education in  technical and scientific institutions not falling within  Entry 64 of List I would have to be judged having regard  to whether it impinges on the field reserved for the Union  under Entry 66.  In other words, the validity of State

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legislation would depend upon whether it prejudicially  affects co-ordination and determination of standards, but  not upon the existence of some definite Union legislation  directed to achieve that purpose.  If there be Union  legislation in respect of co-ordination and determination  of standards, that would have paramountcy over the State  law by virtue of the first part of Ar.254(1);  even if that  power be not exercised by the Union Parliament the  relevant legislative entries being in the exclusive lists, a  State law trenching upon the Union field would still be  invalid.

25.     \005\005\005\005\005\005\005  Item No.66 is a legislative head  and in interpreting it, unless it is expressly or of necessity  found conditioned by the words used therein, a narrow or  restricted interpretation will not be put upon the  generality of the words.  Power to legislate on a subject  should normally be held to extend to all ancillary or  subsidiary matters which can fairly and reasonably be  said to be comprehended in that subject.  Again there is  nothing either in item 66 or elsewhere in the Constitution  which supports the submission ’that the expression "co- ordination" must mean in the context in which it is used  merely evaluation, co-ordination in its normal  connotation means harmonising or bringing into proper  relation in which all the things co-ordinated participate in  a common pattern of action.  The power to co-ordinate,  therefore, is not merely power to evaluate, it is a power to  harmonise or secure relationship for concerted action.   The power conferred by item 66 List I is not conditioned  by the existence of a state of emergency or unequal  standards calling for the exercise of the power."                         

17.     The same question was also examined in considerable detail in State  of Tamil Nadu & Anr. v. Adhiyaman Educational and Research Institute  1995 (4) SCC 104 and the conclusions drawn were summarized in para 41 of  the reports and sub-paras (i) and (ii) thereof  are being reproduced below :

(i)     The expression ’coordination’ used in Entry 66 of the  Union List of the Seventh Schedule to the  Constitution does not merely mean evaluation.  It  means harmonisation with a view  to forge a uniform  pattern for a concerted action according to a certain  design, scheme or plan of development.  It, therefore,  includes action not only for removal of disparities in  standards but also for preventing the occurrence of  such disparities.  It would, therefore, also include  power to do all things which are necessary to prevent  what would make ’coordination’ either impossible or  difficult.  This power is absolute and unconditional  and in the absence of the valid compelling reasons, it  must be given its full effect according to its plain and  express intention.

(ii)    To the extent that the State legislation is in conflict  with the Central legislation though the former is  purported to have been made under Entry 25 of the  Concurrent List but in effect encroaches upon  legislation including subordinate legislation made by  the Centre under Entry 25 of the Concurrent List or to  give effect to Entry 66 of the Union List, it would be  void and inoperative.

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18.     In Osmania University Teachers Association v. State of Andhra  Pradesh & Anr. 1987 (4) SCC 671, the Court reiterated that it was the  exclusive responsibility of the Central Government to determine the  standards for higher education and the same should not be lowered at the  hands of any particular State as it was of great importance to national  progress.   After referring to the Constitution Bench decision in Kerala State  Electricity Board v. Indian Aluminium Co. 1976 (1) SCC 466, where it was  held that when an entry is in general terms in List II and part of that entry is  in specific terms in List I, the entry in List I takes effect notwithstanding the  entry in List II, the Court held as under in para 14 of the reports :

"14.      Entry 25 List III relating to education including  technical education, medical education and universities has  been made subject to the power of Parliament to legislate  under Entries 63 to 66 of List I.  Entry 66 List I and Entry  25 List III should, therefore, be read together.  Entry 66  gives power to Union to see that a required standard of  higher education in the country is maintained.  The  standard of Higher Education including scientific and  technical should not be lowered at the hands of any  particular State or States. Secondly, it is the exclusive  responsibility of the  Central Government to coordinate  and determine the standards for higher education.  That  power includes the power to evaluate, harmonise and  secure proper relationship to any project of national  importance.  It is needless to state that such a co-ordinate  action in higher education with proper standards, is of  paramount importance to national progress.  It is in this  national interest, the legislative field in regard to  ’education’ has been distributed between List I and List III  of the Seventh Schedule."        

19.     The interplay of Entry 66 List I and Entry 25 List III was again  examined by a Constitution Bench in Dr. Preeti Srivastava & Anr. v. State of  M.P. & Ors. 1999 (7) SCC 120 in the context of lowering of standards by  the State for admission to a Post Graduate course in a Medical College and it  was held that the State cannot while controlling education in the State  impinge on standards in institutions for higher education because this is  exclusively within the purview of the Union Government.   While  considering the question whether norms for admission have any connection  with the standards of education and that they are only covered by Entry 25  of List III, it was observed that any lowering of the norms of admission does  have an adverse effect on the standards of education in the institutions of  higher education.   The standard of education in an institution depends on  various factors like, (i) the caliber of teaching staff; (ii) a proper syllabus  designed to achieve high level of education in a given span of time; (iii) the  student-teacher ratio; (iv) equipment and laboratory facilities; (v) caliber of  the students admitted; (vi) adequate accommodation in the institution; (vii)  the standard of examinations held including the manner in which the papers  are set and examined;  and (viii) the evaluation of practical examinations  done.   It was pointed out that education involves a continuous interaction  between the teachers and the students.   The base of teaching, the level to  which teaching can rise and the benefit which the students ultimately receive  depends as much on the caliber of the students as on the caliber of the  teachers and the availability of adequate infrastructural facilities.

20.     The consistent and settled view of this Court, therefore, is that in spite  of incorporation of Universities as a legislative head being in the State List,  the whole gamut of the University which will include teaching, quality of  education being imparted, curriculum, standard of examination and  evaluation and also research activity being carried on will not come within  the purview of the State legislature on account of a specific Entry on co- ordination and determination of standards in institutions for higher education  or research  and scientific and technical education being in the Union List

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for which the Parliament alone is competent.   It is the responsibility of the  Parliament to ensure that proper standards are maintained in institutions for  higher education or research throughout the country and also uniformity in  standards is maintained.    

21.     In order to achieve the aforesaid purpose, the Parliament has enacted  the University Grants Commission Act.   First para of the Statement of  Objects and Reasons of the University Grants Commission Act, 1956 (for  short "UGC Act") is illustrative and consequently it is being reproduced  below :                             "The Constitution of India vests Parliament with  exclusive authority in regard to ’co-ordination and  determination of standards in institutions for higher  education or research and scientific and technical  institutions’.  It is obvious that neither co-ordination nor  determination of standards is possible unless the Central  Government has some voice in the determination of  standards of teaching and examination in Universities,  both old and new.  It is also necessary to ensure that the  available resources are utilized to the best possible effect.   The problem has become more acute recently on account  of the tendency to multiply Universities.  The need for a  properly constituted Commission for determining and  allocating to Universities funds made available by the  Central Government has also become more urgent on this  account.    

       In the second para it is said that the Commission will also have the  power to recommend to any University the measures necessary for the  reform and improvement of University education and to advise the  University concerned upon the action to be taken for the purpose of  implementing such recommendation.   The Commission will act as an expert  body to advise the Central Government on problems connected with the co- ordination of facilities and maintenance of standards in Universities.

22.     The preamble of the UGC Act says - an Act to make provision for the  coordination and determination of standards in Universities and for that  purpose to establish a University Grants Commission.  Section 2(f) of this   Act defines a University and it means a University established or  incorporated by or under a Central Act, a Provincial Act or a State Act, and  includes any such institution as may, in consultation with the University  concerned, be recognized by the Commission in accordance with the  regulations made in this behalf under this Act.   Clause 12 provides that it  shall be the general duty of the Commission to take, in consultation with the  Universities or other bodies concerned, all such steps as it may think fit for  the promotion and co-ordination of University education and determination  and maintenance of standards of teaching, examination and research in  Universities, and for the purpose of its functions under the Act, the  Commission may do all such acts enumerated in sub-sections (a) to (j)  thereof.   Sections 22 and 23 are important and are being reproduced below :

22.     Right to confer degrees  -  (1)  The right of conferring or  granting degree shall be exercised only by a University  established or incorporated by or under a Central Act, a  Provincial Act or a State Act or an institution deemed to be a  University under section 3 or an institution specially  empowered by an Act of Parliament to confer or grant  degrees.

(2)       Save as provided in sub-section (1), no person or authority  shall confer, or grant, or hold himself or itself out as entitled  to confer  or grant any degree.  

(3)          For the purpose of this section, "degree’ means any such

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degree as may, with the previous approval of the Central  Government, be specified in this behalf by the Commission  by notification in the Official Gazette."

23.     Prohibition of the use of the word "University" in certain  cases. \026 No institution, whether a corporate body or not,  other than a University established or incorporated by or  under a Central Act, a Provincial Act or a State Act shall be  entitled to have the word "University" associated with its  name in any manner whatsoever:

Provided that nothing in this section shall, for a period  of two years from the commencement of this Act, apply to  an institution which immediately before such  commencement, had the word "University" associated with  its name.   

23.     It is important to note that in view of Section 22 of UGC Act, the right  of conferring or granting degree can be exercised only by University or an  institution deemed to be University under Section 3 of the aforesaid Act or  institution especially empowered by an Act of Parliament to confer or grant  degrees.   What is a "degree" and what it connotes is not given in the UGC  Act but the meaning of the word as given in dictionaries and standard books  is as under :

Webster’s Third New             :  A title conferred upon students by a college,  International Dictionary     university, or professional school upon  completion of a unified programme of  study carrying a specified minimum of  credits, passing of certain examinations,  and often completion of a thesis or other  independent research project.

     2.        A grade or class of membership attained in  a ritualistic order or society denoting a  stage of proficiency often after a set ordeal  or examination.      

Wharton’s Law Lexicon   :   The state of a person, as to be a barrister-at-law,  or to be a Bachelor or Master of Arts of a  University.        

Chambers’s Twentieth   :     A mark of distinction conferred by universities,       Century Dictionary           whether earned by examination or granted as a                                       mark of  honour.    

P. Ramanatha Aiyar       :   A mark of distinction conferred upon a student  Law Lexicon (2nd Ed)         for proficiency in some art or science; University                                      diploma of specified proficiency.   

Encyclopedia Americana          "DEGREE"  - the title conferred by a college or  university, signifying that a certain step or grade has been  attained in an area of learning.  The award of a diploma  conferring the bachelor’s degree marks completion of  undergraduate study.  The master’s and doctor’s degrees  reward graduate study.  Other degrees constitute  evidence of preparation for professional work \026 the M.D.  (doctor of medicine) for example.

In the 20th century, however, the M.A. is granted in  American universities and in those of England and the

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Commonwealth of Nations (apart from Oxford and  Cambridge) on the basis of study beyond the B.A. and  the presentation (usually) of a thesis.  An exception is  Scotland, where the M.A. has been the first degree  conferred in all six universities ever since their founding.   The bachelor of philosophy and bachelor of letters  degrees are given for work beyond the M.A.  

The New Encyclopedia Britannica          "Degree" \026 in education, any of several titles  conferred by colleges and universities to indicate the  extent of academic achievement.  The hierarchy of  degrees, dating from the 13th century, once resembled the  medieval guild system.  In the United States and Great  Britain, the modern gradation of academic degrees is  usually bachelor (or baccalaureate), master, and doctor.   With some exceptions, intermediate degrees, such as  those of bachelor and master, have been abandoned in the  universities of continental Europe.

       A degree conferred by a University is a proof of the fact that a person  has studied a course of a particular higher level and has successfully passed  the examination certifying his proficiency in the said subject of study to such  level.  In the case of a Doctorate degree, it certifies that the holder  of the  degree has attained a high level of knowledge and study in the concerned  subject by doing some original research work.   A University degree confers  a kind of a status upon a person like a graduate or a post-graduate.   Those  who have done research work and have obtained a Ph.D., D.Lit., or D.Sc.  degree become entitled to write the word "Doctor" before their name and  command certain amount of respect in society as educated and  knowledgeable persons.   That apart the principal advantage of holding a  University degree is in the matter of employment, where a minimum  qualification like a graduate, post-graduate or a professional degree from a  recognized institute is prescribed.   Even for those who do not want to take  up a job and want to remain in private profession like a doctor or lawyer,  registration with Medical Council or Bar Council is necessary for which  purpose a degree in medicine or law, as the case may be, from an institution  recognized by the said bodies is essential.  An academic degree is, therefore,  of great significance and value for the holder thereof and goes a long way in  shaping his future. The interest of society also requires that the holder of an  academic degree must possess the requisite proficiency and expertise in the  subject which the degree certifies.    

24.     Mere conferment of degree is not enough.  What is necessary is that  the degree should be recognized.  It is for this purpose that the right to  confer degree has been given under Section 22 of UGC Act only to a  University established or incorporated by or under a Central Act, Provincial  Act or State Act or an institution deemed to be a University under Section 3  or an institution specially empowered by an Act of Parliament to confer or  grant degrees.   Sub-section (3) of this Section provides that "degree" means  any such degree as may, with the previous approval of the Central  Government, be specified in this behalf by the Commission by notification  in the Official Gazette.  The value and importance of such degrees which are  recognized by Government was pointed out by a Constitution Bench in  Azeez Basha v. Union of India AIR 1968 SC 662.

25.     Having seen what is the concept of a University and what is the value  of a degree awarded by it, the Scheme and the provisions of the impugned  Act may now be examined.   The Preamble of the Act says that it is an Act  to provide for establishment of self financed private Universities for  imparting Higher Education and to regulate their functions and for matters  connected therewith or incidental thereto.   Some of the provisions of the  Act which have a bearing on the controversy involved are being reproduced

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below :

Section 2.      In this Adhiniyam, unless the context otherwise requires -

(a)     "Ordinance" means an Ordinance of the  University;

(b)     "Sponsoring Body" in relation to a University means-  (i)  a Society registered under the Madhya Pradesh  Societies Registrikaran Adhiniyam, 1973 (No. 44 of  1973)                                    (ii)    any Public Trust; or  (iii)  a Company registered under Section 25 of the  Companies Act, 1956 (No. 1 of 1956);

(c)     "Statute" means a Statute of the University;

(d)   "University" means a University established under sub-     section (1) of Section 5.        

3.      The objects of the University shall be -         

1.      to  provide  instructions,  teaching  and training in Higher  Education and make provisions for research,  advancement and dissemination of knowledge; 2.      to create higher levels of intellectual abilities; 3.      to establish state of the art facilities for education and  training; 4.      to carry out teaching and research and offer continuing  education programmes; 5.      to create centres of excellence for research and  development and for sharing knowledge and its  application; 6.      to provide consultancy to the industry and public  organizations; 7.      to establish main campus in Chhattisgarh and to have  study centres at different places in India and other  countries; 8.      to establish examination centres; 9.      to institute degrees, diplomas, certificates and other  academic distinctions on the basis of examination, or any  other method of evaluation; 10.     to pursue any other objective as may be approved by the  State Government; 11.     to ensure that the standard of the degrees, diplomas,  certificates and other academic distinctions are not lower  than those laid down by AICTE/NCTE/UGC/MCI and  Pharmacy Council etc;

4.      (1)     An application containing the Project Report to establish  A University for carrying out any or all of the objects  enumerated in section 3 of this Adhiniyam shall be made  to the State Government by the Sponsoring Body along  with such fee as may be prescribed.  

(2)     The Project Report shall contain the following  particulars, namely -- (a)     the objects of the University along with the details  of the Sponsoring Body; (b)     the extent and the status of the University and the  availability of land; (c)     the nature and the type of programmes of study  and research to be undertaken in the University  during a period not less than the next five years;       (d)     the nature of faculties, courses of study and

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research proposed to be started; (e)     the campus development such as building,  equipment and structural amenities; (f)     the phased outlays of capital expenditure for a  period not less than the next five years; (g)     the item-wise recurring expenditure, sources of  finance and estimated expenditure for each  student;  (h)     the scheme for mobilizing resources and the cost  of capital thereto and the manner of repayments to  the Sponsoring Body and other sources; (i)     the scheme for the generation of funds internally  through the recovery of fee from students,  revenues anticipated from consultancy and other  activities relating to the objects of the University,  and other anticipated incomes; (j)     the details of expenditure on unit cost and the  extent of concessions or rebates in fee or freeship  and scholarship for students belonging to the  Scheduled Tribes and Scheduled Castes, belonging  to economically weaker sections, in lieu of land  grants if any, from the State Government, subject  to the condition that the number of students getting  concessions and freeships or scholarships shall not  be less than twenty two and one half percent of the  total number of seats.  The proposed fee structure  shall also indicate the rationale for the varying  rates of fee that would be levied on non resident  Indians and students of other nationalities; (k)     the years of experience and expertise in the  concerned disciplines at the command of the  Sponsoring Body as well as the financial  resources;  (l)     the system to select students for admission to the  courses of study at the University; (m)     such other details as may be prescribed by rules  framed under this Adhiniyam.

(3)     The State Government, on receipt of the Project Report  shall make such enquiry as it may deem necessary within forty  five days from the date of submission of the Project Report.  

(4)     If the State Government is satisfied with the proposal to  establish the University, it may, subject to such conditions as  may be specified, accord the sanction for the same.

5.      (1)     The State Government may by notification in the Gazette   establish a University by such name and with such  jurisdiction and location of campus as may be specified  therein having regard to -          (a)     the desirability to establish a University; (b)     recognition or authorization as may be required  under any other law for the time being in force to  conduct the syllabus and to grant degrees or  diplomas or awards.

(2)     Every notification issued under sub-section (1) shall be  laid on the table of the Legislative Assembly.

6.       (1)    Every University established under sub-section (1) of  section 5 shall be a body corporate by the name notified  under the said section having perpetual succession and a  common seal, and may sue and be sued by the said name.

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(2)     the University established under sub-section (1) of  section 5 may, with the prior approval of the State  Government, affiliate any College or other institution or  set up more than one campus."

       Section 9 provides that the University shall not be entitled to receive  any grant or other financial assistance from the Central Government, State  Government or any other authority except for meeting any amount towards  the fee payable by students belonging to socially disadvantaged or weaker  sections of society or for conducting any study for research purposes, etc.    

26.     Section 3 of the Act enumerates the objects of the University.   Sub- section (1) of Section 4 provides that an application containing the Project  Report to establish a University for carrying out any or all of the objects  enumerated in Section 3 of the Act shall be made to the State Government  by the sponsoring body.   Sub-section (2) of Section 4 provides that the  Project Report shall contain the particulars which have been enumerated  from clauses (a) to (m)  in the said Sub-section.    The Project Report is to  merely indicate the availability of the land and also the details of the Scheme  for mobilization of resources and generation of funds.   The Project Report is  in the nature of a  proposal where some details have to be furnished  regarding the type of courses of study and research to be undertaken in the  University during the period not less than next five years, the nature of  faculty and courses of study proposed to be started, the campus development  such as building, equipment and structural amenities proposed to be made  and phased outlays of the capital expenditure for a period not less than next  five years.   Sub-section (3) says that the State Government on receipt of the  Project Report shall make such enquiry as it may deem necessary within 45  days from the date of submission of the Project Report.   Sub-section (4)  says that if the State Government is satisfied with the proposal to establish  the University, it may, subject to such conditions as may be specified, accord  sanction for the same.   Therefore, the requirement of Section 4 is  submission of an application containing Project Report which will merely  indicate availability of land and some proposals and schemes for generation  of funds and mobilization of resources and also proposal for development of  building etc. and courses of study proposed to be started.   It is this Project  Report which merely contains some proposals and schemes for future  implementation which is accorded sanction by the State Government.    Thereafter comes Section 5 which says that the State Government may by  notification in the Gazette establish a University by such name and with  such jurisdiction and location of campus, as may be specified therein having  regard to the desirability to establish a University.    The effect of these  provisions is that a Project Report on paper only, which will merely be a  proposal or a scheme for doing something in future, will be notified as a  University by issuing a notification to that effect in the Gazette.   Sub- section (1) of Section 6 confers some kind of a juristic personality on the  University so created by notification in the Gazette which in substance and  reality is a Project Report by saying that the University so established shall  be a body corporate by the name notified having perpetual succession and a  common seal and may sue and be sued by the said name.    Sub-section (2)  of Section 6 confers a very wide power on the University so created to  affiliate any college or other institutions or set up more than one campus  with the approval of the State Government.    

27.     The State Legislature is undoubtedly empowered to legislate and  make an enactment for incorporation and establishment of Universities in  view of Entry 32 of List II and Entry 25 of List III.   The "University" as a  topic of legislation has not been introduced for the first time in the Seventh  Schedule of the Constitution but was already there in the Government of  India Act, where  Entry 13 of List I related to Banaras Hindu University and  Aligarh Muslim University and Entry 17 of List II was education including  Universities other than those specified in Entry 13 of List I.   The framers of  the Constitution had the same concept of "University" in their mind as was

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there in the Government of India Act when they made the relevant entries in  the Seventh Schedule of the Constitution.  Keeping in view the principles of  legislative practice, the word "University" should be given the same  meaning as it was generally understood at the relevant time having due  regard to what is ordinarily treated as embraced within that topic or subject.

28.     As shown earlier, University is a whole body of teachers and scholars  engaged at a particular place in giving and receiving instructions in higher  branches of learning; and as such persons associated together as a society or  corporate body, with definite organization and acknowledged powers and  privileges and forming an institution for promotion of education in higher or  more important branches of learning and also the colleges, building and  other property belonging to such body.  Other necessary attributes of   University are plurality of teachers teaching more than one higher faculties  and other facilities for imparting instructions and research, provision for  residence and must have certain standard of instructions providing for  graduate and post-graduate levels of study.  It pre-supposes existence of a  campus, classrooms, lecture theatres, libraries, laboratories, offices, besides  some playgrounds and also sport facility for overall development of  personality of the students.   However, under the provisions of the impugned  Act, a proposal which is on paper and merely gives some kind of a plan or  scheme to be done in future is notified as a University.  When the  Constitution has conferred power on the State to legislate on incorporation  of University, any Act providing for establishment of the University must  make such provisions that only an institution in the sense of University as it  is generally understood with all the infrastructural facilities, where teaching  and research on wide range of subjects and of a particular level are actually  done, acquires the status of a University.   The impugned Act does not at all  establish a University, yet by issuing a notification conferring the legal  status of a University to a Project Report (which is on paper only) bestows  upon it a right to confer a degree, which right  it gets by virtue of Section 22  of the UGC Act.   The manner in which a University is notified by issuance  of a Gazette notification under Section 5 and conferment of a juristic  personality under Section 6 of the Act is clearly contrary to the  constitutional scheme and is not contemplated by Article 246 of the  Constitution.    

29.     The State Legislature can make an enactment providing for  incorporation of Universities under Entry 32 of List II and also generally for  Universities under Entry 25 of List III.  The subject "University" as a  legislative head must be interpreted in the same manner as it is generally or  commonly understood, namely, with proper facilities for teaching of higher  level and continuing research activity.   An enactment which simply clothes  a proposal submitted by a sponsoring body or the sponsoring body itself  with the juristic personality of a University so as to take advantage of  Section 22 of UGC Act and thereby acquires the right of conferring or  granting academic degrees but without having any infrastructure or teaching  facility for higher studies or facility for research is not contemplated by  either of these Entries.  Sections 5 and 6 of the impugned enactment are,  therefore, wholly ultra vires being a fraud on the Constitution.    

30.     Entry 66 which deals with co-ordination and determination of  standard in institutions for higher education or research and scientific and  technical institutions is in Union List and the Parliament alone has the  legislative competence to legislate on the said topic.  The University Grants  Commission Act has been made with reference to Entry 66 (See Prem  Chand Jain v. R.K. Chhabra 1984 (2) SCR 883 and Osmania University  Teachers Association v. State of Andhra Pradesh 1987 (4) SCC 671).   The  Act has been enacted to ensure that there is co-ordination and determination  of standards in Universities, which are institutions of higher learning, by a  body created by the Central Government.   It is the duty and responsibility   of the University Grants Commission, which is established by Section 4 of  the UGC Act, to determine and coordinate the standard of teaching  curriculum  and also level of examination in various Universities in the  country.   In order to achieve the aforesaid objectives, the role of UGC

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comes at the threshold.   The course of study, its nature and volume, has to  be ascertained and determined before the commencement of academic  session. Proper standard of teaching cannot be achieved unless there are  adequate infrastructural facilities in the campus like classrooms, libraries,  laboratories, well-equipped teaching staff of requisite caliber and a proper  student-teacher ratio.   For this purpose, the Central Government has made a  number of Rules in exercise of powers conferred by Section 25 of UGC Act  and the Commission has also made Regulations in exercise of power  conferred by Section 26 of the UGC Act and to mention a few, UGC  Inspection of Universities Rules, 1960, UGC Regulations 1985 regarding the  Minimum Standards of Instructions for the Grant of the First Degree, UGC  Regulations, 1991 regarding Minimum Qualifications for Appointment of  Teachers in Universities and Colleges, etc.  The UGC with the approval of  the Central Government and exercising power under Section 22(3) of the  UGC Act has issued a schedule of degrees which may be awarded by the  Universities.  The impugned Act which enables a proposal on paper only to  be notified as a University and thereby conferring the power upon such  University under Section 22 of the UGC Act to confer degrees has the effect  of completely stultifying the functioning of the University Grants  Commission in so far as these Universities are concerned. Such  incorporation of a University makes it impossible for the UGC to perform its  duties and responsibilities of ensuring co-ordination and determination of  standards.  In absence of any campus and other infrastructural facilities, the  UGC cannot take any measures whatsoever to ensure a proper syllabus, level  of teaching, standard of examination and evaluation of academic  achievement of the students or even to ensure that the students have  undergone the course of study for the prescribed period before the degree is  awarded to them.  

31.     The inter se evaluation of merit of candidates is often required to be  done while making selection for some higher or specialized course of study  or in the matter of employment.   One of the important functions to be  performed by the UGC is co-ordination and determination of standards in  institutions for higher education so that some kind of uniformity is  maintained in level of teaching and examination and also award of degrees  by various Universities.   The impugned enactment, however, enables a  sponsoring body, without having any kind of teaching facility to award  degrees.   In view of clauses (8) and (9) of Section 3 of the Act, a University  can be established only to establish examination centres or just to institute  degrees, diplomas, certificates and other academic distinctions on the basis  of examination or any other method of evaluation anywhere and without any  pre-determined standards.   The possibility that such Universities which  award degrees without having any teaching facility and without imparting  any education will do so only for the purpose of making money is writ large.   The fact that the amendments made in the Act in 2004 (referred to later in  paragraph 34 of the judgment) making it mandatory to create an endowment  fund of Rs.2 crores and having provision of 15 acres of land have been  challenged by many Universities speaks volumes of their intention.   Preparing a Project Report on paper is not a difficult job and any number of  sponsoring bodies can be created or formed in order to take advantage of the  easy opportunity made available by the impugned Act. Persons with  absolutely no knowledge in the subject may be awarded high degrees or  other distinctions like a Ph.D.,  D.Lit., or D.Sc.    This is bound to create  havoc with the system of higher education in the country and would result in  nullifying the main object for which University Grants Commission has  been established and would render many provisions of the UGC Act  unworkable and otiose.       

32.     Any State legislation which stultifies or sets at naught an enactment  validly made by Parliament would be wholly ultra vires. We are fortified in  our view by a Constitution Bench decision in R. Chitralekha v. State of  Mysore AIR 1964 SC 1823 where power of the State under Entry 11 List II  (as it then existed), and Entry 25 List III qua Entry 66 List I came up for  consideration.  Subba Rao, J. after quoting the following passage from  Gujarat University vs. Shri Krishna AIR 1963 SC 703 :

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 "The State has the power to prescribe the syllabi  and courses of study in the institutions named in Entry 66  (but not falling within entries 63 to 65) and as an incident  thereof it has the power to indicate the medium in which  instruction should be imparted.  But the Union  Parliament has an overriding legislative power to ensure  that the syllabi and courses of study prescribed and the  medium selected do not impair standards of education or  render the coordination of such standards either on an All  India or other basis impossible or even difficult"   

enunciated the following principle defining the contours of the legislative  powers of States vis-‘-vis Union so as to steer clear of any overlap or  collision:  

"This and similar other passages indicate that if the law  made by the State by virtue of entry 11 of List II of the  Seventh Schedule to the Constitution makes impossible  or difficult the exercise of the legislative power of the  Parliament under the entry "Co-ordination and  determination of standards in institutions for higher  education or research and scientific and technical  institutions" reserved to the Union, the State law may be  bad.  This cannot obviously be decided on speculative  and hypothetical reasoning.  If the import of the State law  providing for such standards on entry 66 of List I is so  heavy or devastating as to wipe out or appreciably  abridge the central field, it may be struck down.  But that  is a question of fact to be ascertained in each  case\005\005\005\005.."            

       The whole scheme of the impugned Act, especially the effect of  Sections 4, 5, 6 thereof and the result which it has led to in notifying as  many as 112 Universities within a short span of one year on the basis of  proposals made on paper with many or most of them having almost zero  infrastructural facilities clearly shows that the relevant provisions of the Act  have completely stultified the power of the Parliament under Entry 66 to  make provision for co-ordination and determination of standards in  institutions for higher education like Universities, the provisions of the UGC  Act and also the functioning of University Grants Commission.  Sections 5  and 6 of the impugned Act are, therefore, wholly ultra vires the Constitution  of India and are liable to be struck down.    

33.     Dr. Dhawan, learned senior counsel for the petitioners in Writ Petition  No.19 of 2004, has also pointed out certain other infirmities in the impugned  Act.  Section 4 provides that a University may be established for carrying  out "any or all" of the objectives enumerated in Section 3 of the Adhiniyam.    The objectives mentioned in clauses (1) to (5) are the normal objectives of a  University.   However, a University cannot be established only to provide  consultancy to the industry and public organizations [clause (6)] or to  establish examination centres [clause (8)] or to institute degrees, diplomas,  certificates and other academic distinctions on the basis of examination or  any other method of evaluation [clause (9)].   Since sub-section (1) of  Section 4 uses the expression "for carrying out any or all of the objects", it is  obvious that a University can be established only for any one of the  aforesaid objectives.   This is clearly a colourable piece of legislation being  beyond the legislative competence of the State legislature as the relevant  entries in List II and List III of Seventh Schedule of the Constitution do not  contemplate creation or establishment of such kind of a University.    

34.     The Act was amended by the Chhattisgarh Niji Kshetra  Vishwavidyalaya (Sthapana Aur Viniyaman) Sansodhan Adhiniyam, 2004  (hereinafter called "the amending Act"), which was published in the Gazette

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on 17.3.2004.   By this amending Act some provisions were substituted and  some new provisions were added.  Clauses (e) and (j) inserted in Section 2  read as under : (e)     "main campus" means the campus of the  university where main office of the university is situated  and where the Vice-Chancellor and Registrar reside and  where not less than three University Teaching  Departments/Schools of studies are located.

(j) "Regulatory Commission" means the Regulatory  Commission established under the Adhiniyam."   

       Sections 4, 5, 9 and 10 of the amending Act read as under :

"4.     For Sub-sections (10) and (11) of Section 3 of the  Principal Adhiniyam, the following Sub-sections shall be  substituted; namely:-

"(10)   To ensure that the standard of  degrees,  diplomas, certificates and other academic  distinctions are not  lower  than those laid down by  AICTE, NCTE, UGC, MCI, Pharmacy Council,  and such agency/agencies established by the  Central Government for regulation of education  and the Regulatory Commission; and

(11)    To pursue any other objective as may be  approved by the Regulatory Commission."

5.      For Sub-section (1) of Section 4 of the Principal  Adhiniyam, the following Sub-sections shall be  substituted; namely :-

"(1)    (a)     An application containing the Project Report  to establish a university for carrying out any or all  the objectives enumerated in Section 3 of the  Adhiniyam shall be made to the Regulatory  Commission by Sponsoring Body alongwith fee  and such form as may be prescribed , at least one  year before the date from which it intends to start  the university.

(b)     The Sponsoring Body shall submit  alongwith its application  as per (a) above,

(i)     Proof of having established an Endowment  Fund of Rs.2 crore;

(ii)    Proof of being in possession of 15 acres of  land, in case the main campus is proposed to  be established  within the Municipal Corporation Limits of  Raipur; or 25 acres of land in case the main  campus is proposed to be established  elsewhere in the State and in addition, if the  land has been obtained on lease, the period  of lease should be at least 30 years.  In case,  the Sponsoring Body does not possess the  required land, it shall furnish proof of  having deposited an additional sum of Rs.2  crore in the manner prescribed.   Withdrawals out of this additional fund shall  be permitted by the Regulatory Commission  for the  purchase of land for the use of the

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University.

Provided that where the main campus of the  University is proposed to be established in a  Scheduled Area of the State, only fifty percent of  the amounts in (i) and (ii) above need to be  deposited.

(c)     The Endowment Fund shall be used as  security deposit to ensure that the University  complies with the provisions of  the Adhiniyam  and functions as per the provision of the  Adhiniyam, the Statues and the Act.  The  Regulatory Commission shall have the power to  forfeit a part of  whole of the Endowment Fund, in  case of non-compliance in the manner as may be  prescribed.

(d)     The Endowment Fund shall be invested in  the manner as may be prescribed.

(e)     The Sponsoring Body shall be permitted to  use income from the Endowment Fund for the  development of the University.

(1-A)   A University already established in the State  under the provisions of the Adhiniyam, shall  comply with the provisions of clauses (b) to (e)  of Sub-section (1) of Section 4 above by 30th  June, 2004 or else the Notification issued by the  Government under Sub-section (1) of Section 5  of the Adhiniyam shall be liable to be cancelled  on the recommendations of the Regulatory  Commission.  In the event of such de-notification  of the University, completion of courses, conduct  of examinations, award of the degrees to the  students  of the University may be assigned to  another University in such a manner that the  interests of the students are not affected.   Expenditure made in  this behalf shall be made  good from the General Fund of the University  concerned."

9.      For Sub-section (1) of Section 5 of the Principal  Adhiniyam, the following shall be substituted; namely

(1) (a) The State Government on receipt of the advice of  the Regulatory Commission under Sub-section  (4) of Section 4 of the Adhiniyam, may declare,  by notification in official gazette, that the  university is established by such name and with  such jurisdiction and location of main campus,  from such date as may be mentioned in the  notification.

(b)     All such notification issued under Sub-section (1)  of Section 5 of the Adhiniyam prior to coming  into force of the Chhattisgarh Niji Kshetra  Vishwavidyalaya (Sthapana Aur Viniyaman)  Sansodhan Adhiniyam 2004, shall be included as  Schedule \026 I of the Adhiniyam and hereafter,  notification issued regarding establishment of a  University under the provisions of this  Adhiniyam , shall form part of the said Schedule  \026 I in chronological order.

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(c)     All the provisions of the Adhiniyam shall apply  to Universities included in Schedule I.

10.     After Sub-section (2) of Section 6 of the Principal  Adhiniyam, the following shall be substituted; namely:-

"(2)    On its notification under Sub-section (1) of Section  5, the University shall establish its main campus in  the State of Chhattisgarh on the land referred to in  Sub-section (1) of Section 4 and for that purpose  shall create a built up area of at least 25,000 Sq.ft.  in the form of buildings and ancillary structures  within a period of 2 years from the date of such  notification.  In the case of Universities which  have already been notified before this Sansodhan  Adhiniyam, the period of 2 years shall be reckoned  from the date of coming in force of this Sansodhan  Adhiniyam.

(3)     All disputes arising as a result of the provisions  made in this Adhiniym shall be settled by a court  of law located in the State of Chhattisgarh."                                          Section 24 of the principal Act was also substituted by a new  provision which provides for setting up of a Regulatory Commission for the  purpose of ensuring appropriate standards of teaching, examinations,  research, protection of the interests of the students and ensuring reasonable  service conditions of employees while University has full freedom to  function.   The Regulatory Commission shall function under the general  control of the Visitor and shall consist of a Chairman, two full time and not  exceeding two part-time members to be appointed by the Visitor.   Sub- section (9) of Section 24 provides that it shall be the duty of the Regulatory  Commission to take in consultation with the University and other bodies  concerned with regulatory functions of the higher education system in the  country such as UGC, AICTE, NCTE, MCI, Pharmacy Council and such  agency/agencies established by the Central Government for regulation of  education, or such steps, as it considers necessary for determination and  maintenance of standards of teaching, examination and research in the  University.    

35.     The amending Act of 2004 does not make any appreciable change in  the matter of issuing a notification for establishment of a University.   Under  the amending Act, Regulatory Commission is to be established by the  Visitor (Governor).   The application containing the Project Report shall be  made to the Regulatory Commission one year before the date from which it  intends to start the University along with proof of having established an  endowment fund of Rs.2 crores which shall be used as security deposit to  ensure that the University complies with the provisions and functions as per  the provisions of the Act.   In addition proof of being in possession of 15  acres of land in case the main campus is proposed to be established within  the municipal corporation limits of Raipur otherwise 25 acres of land has to  be furnished.  Where the land has been obtained on lease, the period of lease  should be at least 30 years.   It further provides that if the sponsoring body  does not possess the required land, it shall furnish proof of having deposited  an additional sum of Rs.2 crores in the manner prescribed.   The Regulatory  Commission on receipt of the Project Report, proof of creation of the   endowment fund and possession of land or in lieu thereof proof of deposit of  additional fund and if satisfied with the proposal to establish the University,  may advise the State Government to issue a notification.   Section 5 provides  that the State Government on receipt of the advice of the Regulatory  Commission may declare by notification in Official Gazette that the  University is established.  Here again, without any infrastructure and without  the teaching facilities having been provided, the proposal on paper is  notified as a University.   Section 4(1)(b)(ii) mentions "possession of land"

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and not "ownership".   It is not difficult to speculate whether the heavy  expenditure involved in making construction of buildings (classrooms,  lecture halls, offices and hostels, etc.), libraries and laboratories would at all  be undertaken on land which has been taken on lease for a short period of 30  years.   Thus, the amended Sections 5 and 6 suffer from the same vice as the  unamended provisions and are liable to be struck down as being ultra vires.   

36.     In exercise of power conferred by Section 26 of the UGC Act, the  University Grants Commission has made the UGC (Establishment of and  Maintenance of Standards in Private Universities) Regulations, 2003.  The  Regulations have been made with the object of providing for a regulatory  mechanism for establishment and operation of private Universities and for  safeguarding the interests of the student community with adequate emphasis  on the quality of education and to avoid commercialization of higher  education and also to maintain standards of teaching, research and  examination.  Regulation 1.2 provides that the same shall apply to every  private University established by or incorporated under a State Act, before  or after the commencement of these Regulations.   Regulation 1.5 provides  that any private University which has started functioning before the  commencement of these Regulations shall ensure adherence to these  Regulations within a period of three months from the notification thereof  and failure to comply with this requirement shall render any degree/diploma  awarded by a private University as unspecified in terms of Section 22 (3) of  the UGC Act and shall invite penalty under Section 24 of the said Act.    Regulations 3.1, 3.2, 3.6 and 3.7 are important and they are being  reproduced below :

3.1     Each private University shall be established by a separate  State Act and shall conform to the relevant provisions of  the UGC Act, 1956, as amended from time to time.

3.2     A private university shall be a unitary university having  adequate facilities for teaching, research, examination  and extension services.

3.6     The programmes of study leading to a degree and/or a  post-graduate degree/diploma offered by a private  university shall conform to the relevant  regulations/norms of the UGC or the concerned statutory  body as amended from time to time.

3.7     A private university shall provide all the relevant  information relating to the first degree and post-graduate  degree/diploma programme(s) including the curriculum  structure, contents , teaching and learning process,  examination and evaluation system and the eligibility  criteria for admission of students, to the UGC on a  proforma prescribed by the UGC prior to starting of these  programmes.

37.     Regulation 3.3 puts restriction on establishment of a University  outside the State.   Regulation 5 provides consequences of violation and lays  down that if the Commission is satisfied that a private University has, even  after getting an opportunity to do so, failed to comply with the provisions of  any of the Regulations, the Commission may pass orders prohibiting the  private University from offering any course for award of the degree or  diploma.   Similarly, the UGC is empowered to take action against a private  University awarding first degree and/or a post-graduate degree/diploma,  which is not specified by the UGC and any private University continuing  such programme and awarding unspecified degree shall be liable for penalty  under Section 24 of the UGC Act.    

38.     Shri Amarendra Sharan, learned Additional Solicitor General  appearing for UGC, has submitted that Section 5(1) of the impugned Act

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which permits establishment of a University merely by an executive action  of issuing a notification in the Gazette is illegal.   The University Grants  Commission Act, a law made by Parliament with reference to Entry 66 List  I, having empowered the UGC to make Regulations, any provision of an  enactment made by the State Legislature concerning higher education which  is in conflict with the Regulations, would be ultra vires, as held in sub-para  (ii) of para 41 of State of Tamil Nadu v. Adhiyaman Educational and  Research Institute (supra).  He has referred to Regulation 3.1 of University  Grants Commission (Establishment of and Maintenance of Standards in  Private Universities) Regulation, 2003 which lays down that each private  University shall be established by a separate State Act and shall conform to  the relevant provisions of the UGC Act, 1956 as amended from time to time.    He has also submitted that this Court had clearly ruled in Prem Chand Jain v.  R.K. Chhabra 1984 (2) SCR 883, that a University established by special  legislation alone can have the right to confer degrees, where while referring  to Section 2(f) and 23 of the UGC Act it was said as under : "\005\005\005.. The word "established" or "incorporated"  referred to Acts under which universities are established  or incorporated.   Several universities in this country  have been either established or incorporated under  special statutes, such as the Delhi University Act, the  Banaras Hindu University Act, the Allahabad University  Act etc.   In these cases, there is a special Act either of  the Central or the Provincial or the State legislature  establishing and incorporating the particular universities.    There is also another pattern \026 where under one  compendious Act several universities are either  established or incorporated \026 for instance, the Madhya  Pradesh Universities Act, 1973.   The definition of  university and provisions in S.23 of the Act refer to Acts  of the Central, Provincial or the State legislatures by  which one or more universities are established or  incorporated and not to institutions incorporated under a  general statute providing for incorporation.  .\005\005\005\005\005\005\005\005..\005\005\005\005\005\005\005\005\005\005\005\005\005\005 \005\005\005 ’Education including universities’ was a State  subject until by the 42nd Amendment of the Constitution  in 1976, that entry was omitted from the State list and,  was taken into entry 25 of the concurrent list.   But as  already pointed out the Act essentially intended to make  provisions for the coordination and determination of  standards in universities and that, as already indicated, is  squarely covered under entry 66 of list I.  While  legislating for a purpose germane to the subject covered  by that entry and establishing a University Grants  Commission, Parliament considered it necessary, as a  regulatory measure, to prohibit unauthorized conferment  of degrees and diplomas as also use of the word  ’university’ by institution which had not been either  established or incorporated by special legislation.  \005\005\005\005\005\005\005."    

In view of Regulation 3.1, a private University can only be established  either by a separate Act or by one compendious Act where the legislature  specifically provides for establishment of the said University.   Though an  attempt has been made in Section 5(1)(b) of the amended Act in this regard,  but the same does not conform to the Regulations inasmuch as the initial  notification notifying in the Official Gazette that the University is  established, is done by the executive order and not by any Act of legislature.  

39.     Shri Rakesh Dwivedi, learned senior counsel, who appeared amicus  curiae,  has rightly submitted that though Entry 32 in List II is in general  terms dealing with "incorporation, regulation and winding up of  corporations other than those specified in List I and Universities", but  incorporation of a company is entirely different from incorporation of a

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University and they are conceptually different.   Sections 3, 3(1)(i), 12, 13,  26, 33 and 34 of the Companies Act relate to incorporation of a Company.    It need not have a prior business and a mere statement of a lawful purpose in  the Memorandum of Association is enough.   If a Company is unable to  achieve its objective and is unable to carry on business, the shareholders  may suffer some financial loss, but there is absolutely no impact on society  at large.  However, a University once incorporated gets a right to confer  degrees.   A University having no infrastructure or teaching facility of any  kind would still be in a position to confer degrees and thereby create a  complete chaos in the matter of co-ordination and maintenance of standards  in higher studies which would be highly detrimental for the whole nation.    A University may, therefore, be established either by the State in exercise of  its sovereign power which would obviously be through a legislative  enactment.  In the case of a private University it is necessary that it should  be a pre-established institution for higher education with all the  infrastructural facilities and qualities which may justify its claim for being  conferred with the status of a University and only such an institution can be  conferred the legal status and a juristic personality of a University.  

40.     Shri Rakesh Dwivedi has also submitted that insofar as private  Universities are concerned, the word "or" occurring in the expression  "established or incorporated" in Sections 2 (f), 22 and 23 of the UGC Act  should be read as "and".   He has submitted that the normal meaning of the  word "established" is to bring into existence and in order to avoid the  situation which has been created by the impugned enactment where over 112  Universities have come into existence within a short period of one year of  which many do not have any kind of infrastructure or teaching facility, it  will be in consonance with the constitutional scheme that only after  establishment of the basic requisites of a University (classrooms, library,  laboratory, offices and  hostel facility etc.) that it should be incorporated and  conferred a juristic personality.  The word "or" is normally disjunctive and  "and" is normally conjunctive but at times they are read vice-versa to give  effect to the manifest intentions of the legislature, as disclosed from the  context.   If literal reading of the word produces an unintelligible or absurd  result "and" may be read for "or" and "or" may be read for "and".   (See  Principles of Statutory Interpretation by G.P. Singh 7th ed. Page 339, and  also State of  Bombay v. RMD Chamarbaugwala AIR 1957 SC 699 at 709  and Mazagaon Dock v. CIT AIR 1958 SC 861).   We are  of the opinion that  having regard to the Constitutional scheme and in order to ensure that the  enactment made by the Parliament, namely University Grants Commission  Act is able to achieve the objective for which it has been made and the UGC  is able to perform its duties and responsibilities, and further that the State  enactment does not come in conflict with the central legislation and create  any hindrance or obstacle in the working of the later, it is necessary to read  the expression "established or incorporated" as "established and  incorporated" insofar as the private Universities are concerned.   

41.     Dr. Dhawan has also drawn the attention of the Court to certain other  provisions of the Act which have effect outside the State of Chhattisgarh and  thereby give the State enactment an extra territorial operation.   Section 2(f)  of the amended Act defines ’off-campus centre’ which means a centre of the  University established by it outside the main campus (within or outside the  State) operated and maintained as its constituent unit having the university’s  complement of facilities, faculty and staff.   Section 2(g) defines "off-shore  campus" and it means a campus of the university established by it outside  the country, operated and maintained as its constituent unit, having the  university’s complement of facilities, faculty and staff.   Section 3(7) says  that  the object of the University shall be to establish main campus in  Chhattisgarh and to have the study centres at different places in India and  other countries.   In view of Article 245 (1) of the Constitution, Parliament  alone is competent to make laws for the whole or any part of the territory of  India and the legislature of a State may make laws for the whole or any part  of the State.   The impugned Act which specifically makes a provision  enabling a University to have an off-campus centre outside the State is  clearly beyond the legislative competence of the Chhattisgarh legislature.   

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42.     The amending Act of 2004 came into force on 17.3.2004.   Section  4(1-A) which was inserted by this amendment provided that a University  already established in the State under the provisions of the Adhiniyam shall  comply with the provisions of clauses (b) to (e) of sub-section (1) of Section  4 by 30th June, 2004 or else the notification issued by the Government under  sub-section (1) of Section 5 of the Adhiniyam shall be liable to be cancelled  on the recommendations of the Regulatory Commission.   These provisions   related to creation of an endowment fund of Rs.2 crores and requirement of  land.   It appears that as many as 59 Universities were denotified as they did  not comply with the requirements of the aforesaid provision.   Learned State  counsel made a statement that one more University was proposed to be  denotified but the same could not be done on account of an interim order of  Court.   Many of the private Universities have filed writ petitions in this  Court and also in the High Court of Chhattisgarh (which were later on  transferred to this Court) challenging the provisions of the amending Act.    The main challenge is regarding proof of being in possession of 15 acres of  land in case the main campus is proposed to be established within the  municipal corporation limits of Raipur or otherwise 25 acres of land and to  the establishment of an endowment fund of Rs.2 crores.  The principal  ground raised by Shri Ravindra Srivastava and other learned counsel for the  Universities is that the provisions are arbitrary, the conditions imposed  therein are very onerous and further such conditions could not be imposed  on already existing Universities.  It is also urged that the amending Act has a  retrospective operation.  In our opinion, the challenge raised has hardly any  substance.  In order to establish a University, there must be adequate land on  which the campus may be made and necessary infrastructural facilities  provided.   No University can come into existence without a proper campus  which requires land.   Similarly, for those who want to establish a  University, a sum of Rs.2 crores is a very small amount.  It will be seen that  Section 4(1)(c) provides that endowment fund shall be used as security  deposit to ensure that the University complies with and functions as per the  Act.  In Azeez Basha v. Union of India (supra), the history of establishment  of Aligarh Muslim University has been given.   Though in the year 1877 the  Viceroy laid the foundation stone for the establishment of Muhammadan  Ango-Oriental College, Aligarh, which over a period of time became a  flourishing institution, yet, when a demand was made to establish a  University, the Government of India made a condition that at least Rs.30  lakhs must be collected and thereafter the University was established by the  1920 Act.   It is extremely difficult to visualize the real value and purchasing  power of Rs.30 lakhs of the year 1920 at the present juncture.    For those  who want to establish a University, a sum of Rs.2 crores  is just a pittance.     The fact that many of the private Universities have challenged the provisions  of the amending Act itself shows their intention and purpose that they do not  want to create any infrastructure but want to have the right of conferring  degrees and earn money thereby.   However, it is not necessary to examine  the challenge raised to the amending Act in detail, as we have already held  that Sections 5 and 6 are wholly ultra vires and all notifications issued  thereunder notifying the Universities being invalid are liable to be struck  down.  

43.     Shri Ravi Shankar Prashad, learned senior counsel for the State of  Chhattisgarh, has submitted that the impugned Act was passed in order to  attract private capital as the State does not have enough funds to establish  educational institutions and Universities.   The Policy of Government of  India has undergone a change since 1991 and emphasis is on privatization.    The Act was enacted so that facility for higher education in the State of  Chhattisgarh may be improved and a large volume of students may get  opportunity to pursue higher studies.   He has also submitted that the UGC  itself has made regulations governing admission and fee in private non-aided  professional institutions which makes reference to joint venture between a  private trust or society and the State Government.  The enactment, it has  been urged,  is an experiment in the changing world scenario where the trend  is towards globalization.  Learned counsel has further submitted that the  amending Act makes it mandatory that the main campus of the University

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should be situated in the State of Chhattisgarh and the Regulatory  Commission has been established which will ensure a foolproof monitoring  of all the private Universities.   He has urged that Regulation 3.3.1 of the  UGC Regulations which requires that off-campus centres or study centres  shall be set up with the prior approval of UGC and that of the State  Government where the centre is proposed to be opened, is ultra vires.   

44.     There is hardly any merit in the submission raised.   The impugned  Act which enables only a proposal of a sponsoring body to be notified as a  University is not likely to attract private capital and a University so notified  cannot provide education of any kind much less of good quality to a large  body of students.   What is necessary is actual establishment of institutions  having all the infrastructural facilities and qualified teachers to teach there.   Only such colleges or institutions which impart quality education allure the  best students.   Until such institutions are established which provide high  level of teaching and other facilities like well equipped libraries and  laboratories and a good academic atmosphere, good students would not be  attracted.   In the current scenario, students are prepared to go to any corner  of the country for getting good education.   What is necessary is a large  number of good colleges and institutions and not Universities without any  teaching facility but having the authority to confer degrees.   If good  institutions are established for providing higher education, they can be  conferred the status of a deemed University by the Central Government in  accordance with Section 3 of UGC Act or they can be affiliated to the  already existing Universities.   The impugned Act has neither achieved nor is  capable of achieving the object sought to be projected by the learned counsel  as it enables a proposal alone being notified as a University.    

45.     As a consequence of the discussion made and the findings recorded  that the provisions of Sections 5 and 6 of the Act are ultra vires and the  Gazette Notifications notifying the Universities are liable to be quashed, all  such Universities shall cease to exist.   Shri Amarendra Sharan, learned  Additional Solicitor General has submitted that the UGC had conducted an  inquiry and it was found that most of the Universities were non-existent, but  the report was not placed before the Court as the complete exercise had not  been done.   Learned counsel for the Universities have seriously disputed  this fact and have submitted that the Universities are functioning.   We have  not gone into this question as it is purely factual.  In order to protect the  interests of the students who may be actually studying in the institutions  established by such private Universities, it is directed that the State  Government may take appropriate measures to have such institutions  affiliated to the already existing State Universities in Chhattisgarh.   We are  issuing this direction keeping in mind the interest of the students and also  Sections 33 and 34 of the Act, which contemplate dissolution of the  sponsoring body and liquidation of a University whereunder responsibility  has to be assumed by the State Government.   It is, however, made clear that  the benefit of affiliation of an institution shall be extended only if it fulfills  the requisite norms and standards laid down for such purpose and not to  every kind of institution.   Regarding technical, medical or dental colleges,  etc. affiliation may be accorded if they have been established after fulfilling  the prescribed criteria laid down by the All India Council of Technical  Education, Medical Council of India, Dental Council of India or any other  statutory authority and with their approval or sanction as prescribed by law.    

46.     In view of the discussions made above, Writ Petition (C) No.19 of  2004 (Prof. Yashpal & Ors. v. State of Chhattisgarh & Ors.) and Writ  Petition (C) No.565 of 2003 (Gopalji Agarwal Vs. Union of India & Ors.)  are allowed and provisions of Section 5 and 6 of the Chhattisgarh Niji  Kshetra Vishwavidyalaya (Sthapana Aur Viniyaman) Adhiniyam, 2002 are  declared  to be ultra vires and are struck down.   As a consequence of such  declaration, all notifications issued by the State Government in the Gazette  in the purported exercise of power under Section 5 of the aforesaid Act  notifying the Universities (including respondent nos.3 to 94) are quashed  and such Universities shall cease to exist.  If any institutions have been  established by such Universities, steps may be taken for their affiliation to

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already existing State Universities in accordance with the direction  contained in paragraph 45 above.   Parties would be at liberty to approach  the High Court if any dispute arises in implementation of this direction. All  Writ Petitions, Civil Appeals and Transferred Cases filed by the private  Universities are dismissed.  

47      Before parting with the case, we would like to place on record our  appreciation of the valuable assistance rendered by Shri Rakesh Dwivedi,  who appeared on the Court’s request as an amicus curiae.