Justice Prevails: SC Uses Extraordinary Powers to Resolve Hotel Management College Crisis.


23 April 2025 Civil Appeals >> Civil & Consumer Law   |   Education >> Miscellaneous  

In a unique exercise of its extraordinary powers under Article 142 of the Constitution of India, the Supreme Court has stepped in to protect the academic careers of approximately 250 students enrolled in a Hotel Management Institute in Mangaluru. The ruling came in the backdrop of a long-standing legal battle over the lease of the property where the "Moti Mahal College of Hotel Management" has been operating since 2004.

The appeals before the Supreme Court challenged a common judgment of the Karnataka High Court, which had upheld a Trial Court's decision directing M/s A.J. Shetty & Co. Pvt. Ltd. (the Appellant and operator of the institute) to vacate the property leased from St. Antony's Charity Institutes (Respondent No. 1). The lease, initially granted in 1912 and subsequently sub-leased, was not renewed upon its expiry, leading to the legal dispute.


 

 

During the proceedings, the parties, with the assistance of Hon'ble Shri Justice A.S. Bopanna (Former Judge of the Supreme Court) as a mediator, reached an amicable settlement. As per the settlement agreement dated January 31, 2025, the Appellant accepted the High Court's order to vacate the premises by April 30, 2025. The agreement also addressed the issue of mesne profits payable to Respondent No. 1.

However, a critical hurdle emerged concerning the future of the Hotel Management Institute. The Appellant informed the Court of its intention to permanently relocate the institute to a new campus, which was not yet ready. In the interim, the Appellant had arranged a temporary location to shift the institute.

The challenge arose from the regulations of the All India Council for Technical Education (AICTE), which mandates that institutions seeking approval or continuation of approval must operate from premises either owned by them or held under a long-term lease of at least 30 years. The temporary location identified by the Appellant did not meet this criterion.

Faced with the predicament of having to vacate the existing premises without a permanent, AICTE-compliant campus ready, the Appellant sought the Supreme Court's intervention, requesting a temporary relaxation of the AICTE norms to avoid jeopardizing the education of the enrolled students. The AICTE and Mangalore University were subsequently impleaded as party respondents.

After hearing the arguments, the Supreme Court acknowledged the peculiar circumstances of the case. While recognizing the validity of the AICTE's regulations, the Court noted that the Appellant had been operating with due permission since 2004, and a significant number of students were currently pursuing their degrees. The Court reasoned that a strict adherence to the AICTE rules in this immediate situation would severely impact the students' academic futures, despite the Appellant's efforts to relocate to a compliant campus within two years.

To ensure the ends of justice, the Supreme Court invoked its extraordinary powers under Article 142 of the Constitution and issued the following directions:

  • The AICTE and Mangalore University were directed not to insist on the 30-year lease or ownership requirement for the temporary relocation of the institute for a period of two years.
  • The AICTE and Mangalore University were instructed to continue the permission/affiliation granted to the institute at the temporary location, provided it meets all other infrastructural requirements.
  • The Appellant was directed to ensure that its permanent, AICTE-compliant campus is completed within two years (by April 30, 2027) and to shift the institute to that location before the deadline.
  • The settlement agreement between the Appellant and Respondent No. 1 was taken on record as an undertaking to the Court.
  • The fee of the learned Mediator was fixed at Rs. 10,00,000/-, to be shared equally by the Appellant and Respondent No. 1, with adjustments for initial deposits.

The Supreme Court, in its judgment, also expressed its deep gratitude to Hon'ble Shri Justice A.S. Bopanna for his successful mediation efforts and appreciated the cooperation of the learned counsel in reaching the settlement.

This landmark judgment highlights the Supreme Court's willingness to utilize its unique constitutional powers to address extraordinary situations and prioritize the welfare and future of students, even while upholding regulatory frameworks. The decision provides a temporary reprieve to the Hotel Management Institute, allowing its students to continue their education without disruption while ensuring the institute's eventual compliance with AICTE norms.