THE HON’BLE SRI JUSTICE V.V.S. RAO WRIT PETITION No.16372 of 2009 13.10.2009 Between: Kondapalli Pydithalli Naidu College of Education, Gantyada, Vizianagaram District, represented by its President Dr.K.Appala Naidu, S/o.K.P.Naidu And another … Petitioners and The Chairman, National Council for Teacher Education, New Delhi And others … Respondents THE HON’BLE SRI JUSTICE V.V.S. RAO WRIT PETITION No.16372 of 2009 ORDER: The two petitioners are educational institutions in Gantyada of Vizianagaram District. First petitioner was established during the academic year 2003-2004, after obtaining necessary permission from National Council for Teacher Education (NCTE) as per NCTE Regulations 2002. As per NCTE Financial Management Regulations, 2007, a college of education has to maintain endowment fund of Rs.5,00,000/- and reserve fund of Rs.3,00,000/- for a duration of more than five years by way of Fixed Deposit Receipt (FDR) in a Nationalised Bank, which has to be operated jointly by a representative of management and the Office of Regional Committee. Petitioner contends that as the colleges were established more than five years ago, there is no necessity to maintain endowment fund and reserve fund. Second respondent, namely, NCTE Southern Regional Committee (SRC) – issued a letter dated 12.6.2009 requesting the first respondent college to furnish certain documents including FDR towards endowment fund and reserve fund in the joint name with SRC which is to be kept by the Office of SRC. Petitioners were required to submit necessary documents along with original FDR on or before 10.7.2009. Petitioners filed instant writ petition challenging the said letter inter alia on the ground that the colleges, which are in existence for more than six years, cannot be compelled to produce necessary documents including FDR and land use certificate and the same is contrary to NCTE Regulations 2002. It is also urged by petitioners that NCTE Regulations 2007 have no application to old colleges like petitioners. Ms.Jhansi, learned Advocate, representing learned Standing Counsel for NCTE, relies on NCTE Regulations 2007 and submits that every college of education is required to keep an amount of Rs.5,00,000/- towards endowment fund and Rs.3,00,000/- towards reserve fund as FDR, and therefore, impugned letter was issued to petitioners requiring compliance therewith. She also submits that the impugned letter was issued in connection with maintenance of norms and standards in accordance with regulations. Further, she brought to the notice of this Court a judgment of this Court in Hazarath Ameeruddin College of Education, Yedavalli v The Chairman, NCTE[1]. A similar plea was raised herein and the said writ petition was dismissed on 08.10.2009. Per contra, learned Counsel for petitioners submits that 2007 Regulations have no application, as it is an old college that the petitioners were granted permission by NCTE only after they complied with all the Regulations and there is no necessity again to comply with the same. In Hazarath Ameeruddin College of Education, Yedavalli (supra), this Court considered these aspects and observed as follows. A perusal of the above provision shows that the Endowment Fund and Reserve Fund should be operated jointly by the authorized representative of the management and an Officer of the Regional Committee of the NCTE. Further, the Endowment Fund and Reserve Fund shall be in the form of a fixed deposit of a duration of and above five years of a Nationalised Bank. It is apparent that the Endowment Fund and Reserve Fund are for the purpose of ensuring the financial viability of the institution and therefore, the institutions are bound to maintain the same as long as the institution is existing. Each time, the fixed deposit shall be for a duration of five years or more. There is absolutely no reason to presume that such funds shall be maintained only for the initial period of five years. The submission of learned Counsel for petitioners that petitioners are governed by 2002 Regulations and therefore, 2007 Regulations have no application is misconceived. Regulation 10 of 2007 Regulations reads as under. 10. Financial Management (a) The tuition fees and other fees shall be charged at rates as prescribed by the concerned State Government/Affiliating University. ( b ) In case of unaided institutions, there shall be an endowment fund of Rs.5.00 lakh to be operated jointly by the authorized representative of the management and an officer of the concerned Regional Committee, and a reserve fund equivalent to three months’ salary of the staff. A perusal of the above Regulation would show that there is no such exemption granted to institution, which is in existence for more than half-a-decade. All the institutions imparting technical education whether they are established under 2002 Regulations or 2007 Regulations are required to maintain endowment fund and reserve fund by way of FDR in the joint name of the institution and SRC. In the result, for the above reasons, the writ petition fails and is accordingly dismissed. No costs. ________________ (V.V.S.RAO,J) October 13, 2009 YS [1] W.P.No.13539 of 2009, dated 08.10.2009