In a significant judgment, the Patna High Court has dismissed a writ petition filed by the Sarojani Educational Trust, which sought a comprehensive investigation into Birla Edutech Limited's franchise operations under the "Birla Open Minds" brand. The petitioner alleged that the franchise model employed by Birla Edutech amounted to the commercialization of education, contravening the Central Board of Secondary Education (CBSE) affiliation bye-laws. However, the court found no substantial evidence to warrant a blanket inquiry and emphasized the necessity for specific material to initiate any regulatory action.
The dispute arose when the Sarojani Educational Trust, through its Founder Trustee Dr. Nitish Kumar, entered into a franchise agreement with Birla Edutech in July 2019. The agreement entailed a payment of ₹55 lakhs plus GST for the use of the Birla Open Minds brand, along with additional charges totaling ₹14 lakhs. The trust proceeded to apply for CBSE affiliation for the 2023-24 academic session. During this process, the trust became aware of a CBSE circular dated February 6, 2014, which mandates that schools must submit an affidavit affirming that no monetary transaction is involved in exchange for the use of a franchiser's name, logo, or motto. Realizing that their agreement with Birla Edutech might contravene this regulation, the trust decided to terminate the franchise arrangement and notified Birla Edutech of the potential regulatory violations.
The petitioner further alleged that Birla Edutech attempted to circumvent CBSE regulations by proposing a modified contract that would omit the term "franchisee," thereby masking the true nature of the agreement. They contended that this was indicative of a broader pattern wherein Birla Edutech collected substantial sums from various institutions under the guise of franchise rights, effectively commercializing education.
In response, the CBSE's counsel argued that the petitioner had not provided any specific material evidence to substantiate the claims against Birla Edutech. The CBSE maintained that it could only initiate action when concrete evidence of a violation of its affiliation bye-laws is presented. The court concurred with this position, stating that a "blanket fishing inquiry" could not be directed for all schools operating under the Birla Open Minds brand without specific material indicating a breach of regulations.
Justice Anil Kumar Sinha, presiding over the case, emphasized that while the court could not order a generalized investigation, the CBSE retains the authority to act upon receiving specific evidence of violations. He stated, "This court is of the opinion that blanket fishing inquiry cannot be directed for all the schools being run in the name and style of Birla Open Minds School. However, if certain specific material is brought before the CBSE regarding violation of its bye-laws at the time of having affiliation including the money transaction, the CBSE shall be at liberty to proceed in accordance with law and in terms of its regulation and bye-laws in this regard."
This judgment underscores the judiciary's stance on the commercialization of education and the importance of adhering to regulatory frameworks established by educational authorities like the CBSE. It also highlights the necessity for petitioners to provide concrete evidence when alleging violations, as courts are reluctant to initiate broad investigations based on generalized claims.
The case also brings to light the complexities involved in franchise agreements within the education sector. While franchising can be a means to expand educational services, it must be conducted within the bounds of regulatory guidelines to ensure that education remains a non-commercial endeavor. The CBSE's regulations aim to prevent the commercialization of education, and this judgment reinforces the need for strict compliance with such norms.
In conclusion, the Patna High Court's decision to dismiss the petition against Birla Edutech serves as a reminder of the judiciary's commitment to upholding educational integrity while also ensuring that allegations are substantiated with specific evidence. It delineates the boundaries within which educational institutions and franchisers must operate and reaffirms the role of regulatory bodies like the CBSE in maintaining the sanctity of education in India.
0 Comments
Thank you for your response. It will help us to improve in the future.