Kerala High Court Rules Against Unapproved Mortgage of School Properties, Cites Violation of Education Act*

In a significant ruling, the Kerala High Court has quashed a notice of sale of immovable property (Ext.P6) and declared that the Educational Agency responsible for managing a school had no right to mortgage certain properties without obtaining the required permission under the Kerala Education Act, 1958, and Rules 1959.

 The case, WP(C) No. 7988 of 2020, centered around the unauthorized mortgage of school properties and was brought before the court by Swaroop V., the Manager of PAMM Upper Primary School in Palakkad.

 The court, in its judgment delivered on August 10, 2023, observed that:

  "The 5th respondent who is an Educational Agency, without giving a mandate in Rule 1 of Chapter X and without obtaining permission from the authorities, and Section 6 of the Kerala Education Act, has mortgaged the properties of the School specifically stated as item nos. 2 and 3 in Ext.P6 notice, describing it as residential properties, even though it belongs to the School and lying as a playground."

 This ruling underscores the importance of adherence to the provisions of the Kerala Education Act, 1958, and the Rules 1959, which require prior written permission for any sale, mortgage, lease, pledge, charge, or transfer of possession in respect of properties of aided schools.

 The court further emphasized the legislative intent behind these provisions, stating:

  "The legislative intent behind the ban under Section 6 is the well maintenance and proper conduct of the aided schools, which is absolutely essential in the public interest."

 As a result of this judgment, Ext.P6 was quashed to the extent it related to item nos. 2 and 3, and it was declared that the 5th respondent did not have the right to mortgage the properties without obtaining the necessary permission.

 This verdict serves as a reminder of the legal obligations placed on educational agencies and school managers when dealing with school properties and highlights the need for strict compliance with the law to ensure the proper functioning of aided schools.

Date of Decision:  Thursday, the 10th day of August 2023

SWAROOP V. vs STATE OF KERALA

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