The Supreme Court of India recently upheld the Meghalaya Government’s 2014 decision to dissolve CMJ University, a private institution, due to severe mismanagement and violations of statutory provisions. The court ruled that the university had functioned unlawfully for years, particularly regarding the self-appointment of its Chancellor without approval from the Governor, who serves as the statutory Visitor.

Background of the Case

CMJ University was established under the CMJ University Act, 2009, by the Meghalaya Legislative Assembly. According to this Act, the university's Chancellor must be appointed “subject to the approval of the Visitor”, which in this case was the Governor of Meghalaya. However, the university proceeded with the appointment of its Chancellor without obtaining this mandatory approval, leading to legal scrutiny.

Additionally, the university was accused of various irregularities, including the issuance of fraudulent degrees, operating unauthorized off-campus centers, and failing to comply with state education laws. The Meghalaya Government invoked Section 48 of the CMJ University Act to dissolve the institution.

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A bench of Justices P.S. Narasimha and Sandeep Mehta examined the case and emphasized that CMJ University failed to adhere to the legal procedures for appointing a Chancellor. The court stated:

“The approval of the Visitor was mandatory, and in its absence, the appointment of the Chancellor is invalid in the eyes of the law.”

The court further explained that the phrase “subject to” in legal terms means “conditional upon”, reinforcing the requirement for the Governor’s approval.

CMJ University attempted to justify its actions by asserting that since the Governor did not respond to their request for approval, they presumed it to be “deemed approval”. However, the Supreme Court dismissed this argument,

Stating:

“A legal fiction cannot be created in the absence of statutory backing. Deemed approval is not recognized under the law unless explicitly provided for in legislation.”

Initially, a single-judge bench of the Meghalaya High Court had ruled in favor of CMJ University, quashing the dissolution order and related show-cause notices. However, the division bench of the High Court later set aside this ruling and reinstated the government’s decision. CMJ University then approached the Supreme Court, which ultimately upheld the division bench’s ruling.

Citing previous judgments, the Supreme Court reiterated that a university cannot function without a duly appointed Chancellor, and any actions taken without proper authority are “void ab initio” (invalid from the outset).

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The Supreme Court highlighted multiple instances of mismanagement within CMJ University, including:

• Issuing 434 PhD degrees in a single academic year without proper faculty and research infrastructure.
• Running unauthorized off-campus centers in violation of UGC (University Grants Commission) regulations.
• Conducting B.Ed programs without approval from the National Council for Teacher Education (NCTE), making the degrees invalid.
• Falsifying compliance reports and misleading advertisements regarding its accreditation status.
• Withdrawing Endowment Fund deposits prematurely, violating university regulations.

The court noted:

“The university’s actions indicate clear mismanagement, maladministration, and fraudulent intent, warranting its dissolution.”

CMJ University’s legal team argued that the Meghalaya Government did not follow due process before dissolving the university. However, the Supreme Court examined the two show-cause notices issued in 2013 and 2014, which gave the university ample opportunity to respond. The government also reviewed their replies before issuing the dissolution order.

The court concluded:

“The government’s decision was based on a thorough examination of evidence and followed due legal procedure. The dissolution was necessary to uphold academic integrity.”

Final Judgment and Implications

Dismissing CMJ University’s appeal, the Supreme Court ruled that the Meghalaya Government had acted lawfully in dissolving the institution. The ruling serves as a significant precedent, reinforcing the importance of regulatory oversight in higher education. It also sends a strong message to private universities regarding adherence to legal and academic standards.

Case Name: CMJ Foundation vs State Of Meghalaya., CIVIL APPEAL NO(S). 9694 OF 2024