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THE A.P. STATE COUNCIL OF HIGHER  EDUCATION VS THE UNION OF INDIA

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THE A.P. STATE COUNCIL OF HIGHER  EDUCATION VS THE UNION OF INDIA

 

Court: Supreme Court of India

Bench: V. GOPALA GOWDA

No. of judges: 1

CIVIL APPEAL NO. 3021 OF 2016

Facts in Brief:

  • In present case, judgment and order of the High Court of Hyderabad was challenged wherein the court held that the assets, properties and funds lying at the present location of the Andhra Pradesh State Education Council of Higher Education (APSCHE), now belong to the Telengana State Education Council of Higher Education (TSECHE).
  • In the facts of the case, as per Andhra Pradesh Reorganisation Act of 2014, State of Andhra Pradesh was bifurcated into State of Andhra Pradesh and State of Telengana.
  • Telengana adapted this Act of 1988 and on this basis; it has sent a letter to Manger of the various Banks to freeze the operation of APSCHE’s accounts. The bank did the same but APSCHE was not intimaed.
  • Aggrieved by this, APSCHE filed Writ Petition before High Court, claiming it as illegal, arbitrary and contrary to the principles of natural justice.

Issue:

  • Whether the assets, properties and funds lying at the present location of the Andhra Pradesh State Education Council of Higher Education (APSCHE), now belong to the Telengana State Education Council of Higher Education (TSECHE).
  • Whether the High Court was right in upholding the action of Banks in freezing the accounts of APSCHE.

Judgement:

  • When a state is divided into two then naturally, there should equitable bifurcation of assets and liabilities of statutory bodies among the two new states.
  • Thus, the claim of Telangana State as to ownership over the entire funds and assets of the old- APSCHE, was not valid.
  • The action of the Banks of freezing the accounts of the APSCHE were wholly untenable in law and as such it is set aside.
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