(1.) Educational institutions both schools and colleges are organized by the Government, local bodies like Municipalities and Zilla Parishads, as also by the private organizations. The issue before us in this matter revolves around certain service conditions of the employees both teaching and non-teaching of the educational institutions run by private organisations.
(2.) The organization of educational institutions in the private sector has been subject to regulation by the State in varying degrees from time to time. It may not be necessary to trace the entire history of such regulation by the State of the various educational institutions. In the year 1966, the State Government made rules known as the Andhra Pradesh (Integrated) Education Rules, 1966 in G.O.Ms.No.1188, Edn., dt. 10-5-1966. At that point of time, there was no comprehensive enactment dealing with all classes of educational institutions. Therefore, the above mentioned rules were framed by the State (we presume) in exercise of power under Article 162 of the Constitution of India. Under the Rules, the educational institutions were divided into two classes viz., unrecognized and recognized. Recognized institutions are again divided into colleges and schools of various categories. The activities of the various educational institutions in several spheres is regulated by the above mentioned rules. The rules contemplate according of recognition by competent authority in the case of each educational institution referred to earlier belonging to the various classes. They prescribed, inter alia, the qualifications for the teachers to be appointed in such educational institutions. Section II of the Rules, deals with Elementary schools under private management. Under Rule 56 (c) it is stipulated that "the salary of the teacher should not be less than the scale fixed by the Government". Similarly, Chapter III Section - I deals with Rules for Secondary Schools. Under Rule 159, it is prescribed:
(3.) There has been a consistent practice in the State of Andhra Pradesh of extending financial support to private educational institutions from time to time as a matter of policy of the State. The extension of such financial assistance - called "Grant-in-Aid" is regulated by a non-statutory code known as "Grant-in-Aid Code" the origin of which is almost lost in antiquity.