Degrees Obtained Before University Was Declared Defunct Remain Valid : Supreme Court

In a significant relief to Bihar-based librarians whose services were terminated solely because the university from which they obtained their degrees was later declared defunct, the Supreme Court on Wednesday (February 18) ordered their reinstatement, holding that degrees earned when the governing law was in force and recognized cannot be invalidated due to subsequent legal developments.

A bench comprising Justices Rajesh Bindal and Vijay Bishnoi set aside the Patna High Court's decision, which upheld the termination of the Appellants.

The controversy traces back to the Chhattisgarh Niji Kshetra Vishwavidyalaya Act, 2002 (2002 Act), under which several private universities were established, including the University of Technology and Science, Raipur. The appellants completed their B.Lib degrees in 2004, at a time when the university was functioning under a State statute, and its courses had received Central recognition.

In 2005, however, the Supreme Court in Prof. Yash Pal v. State of Chhattisgarh, (2005) 5 SCC 420 declared key provisions of the 2002 Act unconstitutional, holding that the Chhattisgarh Legislature lacked competence to create universities in the manner it had. All such universities were ordered to cease operations, though students actually studying on the date of the judgment and those who already obtained their degree from the University were protected and allowed to migrate to recognized institutions.

Relying on this judgment, the Bihar government terminated the services of librarians appointed in 2010 on the ground that their degrees were from an institution whose parent Act stood invalidated.

Aggrieved by the Patna High Court's decision to uphold the State government's decision to terminate their services, the Appellants appealed to the Supreme Court.

Setting aside the impugned decision, the judgment authored by Justice Bindal endorsed the Appellants' contention, observing that:

“What is evident from the facts of the case is that the University from which the appellants had studied had been set up under the 2002 Act enacted by the Chhattisgarh State Legislature. The aforesaid Act was declared to be ultra vires by this Court vide order dated 11.02.2005. Till such time, the students had been studying and passing out. At the time of declaration of the said Act to be ultra vires, this Court had protected the students who were still studying. They were directed to be transferred to alternative institutions recognized by the State. Considering the aforesaid fact and also that in the factual situation in hand, the appellants cannot be said to be at fault as they had studied in the University, which has been set up under the 2002 Act enacted by the State Legislature. Hence, they should not be deprived of the benefits of the degree obtained by them while studying in the University. It is not the case of the State that the University in which the appellants studied was bogus or no study was actually imparted.”

Accordingly, the appeal was allowed, with a direction to the Respondents to reinstate the Appellants in service. However, the Appellants would not be entitled to claim back wages for the period they haven't performed the duties.

Headnote

Service Law – Termination of Service – Validity of Degrees – Prospective Application of Judicial Declaration – Protection of Students' Careers - The appellants were appointed as librarians by the State of Bihar in 2010 based on Bachelor of Library Science (B.Lib) degrees obtained in 2004 from the University of Technology and Science, Raipur - This university was established under the Chhattisgarh Niji Kshetra Vishwavidyalaya Act, 2002 - in Professor Yash Pal v. State of Chhattisgarh (2005) 5 SCC 420, the Supreme Court had declared the 2002 Act ultra vires, resulting in the cessation of all universities established under it - Relying on this, the State of Bihar terminated the appellants' services in 2015, contending their degrees were unrecognized - The Patna High Court upheld the termination - Held: The Supreme Court set aside the High Court's judgment and the termination orders – i. Protection of Students' Interests: In Professor Yash Pal, Supreme Court specifically directed the State to protect students currently studying by affiliating their institutions with existing State universities - held that this logic extends to students who had already passed out before the Act was struck down, provided the university was not bogus and actual study was imparted; ii. No Fault of Appellants: The appellants could not be held at fault for studying in a university established under a then-valid State law - the State of Bihar appointed them in 2010—years after the Yash Pal judgment—meaning the State was or should have been aware of the legal status but allowed them to work for over five years; iii. Relief: directed the reinstatement of the appellants with continuity of service - back wages were denied as the appellants had not performed duties during the intervening period and the State was not solely at fault – Appeals allowed. [Relied on Prof. Yashpal and Anr. v. State of Chhattisgarh and Ors. (2005) 5 SCC 420; Paras 12-18]

Cause Title: PRIYANKA KUMARI AND ORS. VERSUS THE STATE OF BIHAR AND ORS. (with connected matters)

Citation : 2026 LiveLaw (SC) 173

Click here to download judgment

Appearance:

For Petitioner(s) : Mr. Navniti Prasad Singh, Sr. Adv. Mr. Rizwan Ahmad, AOR Mr. Shakeel Ahmed, Adv. Mr. Abhishek Kumar, Adv. Mr. Shivam Yadav, Adv. Mr. Mohd Tauheed, Adv. Mr. Gopal Jha, AOR Mr. Jitesh Kumar, Adv. Mr. Umesh Kumar Yadav, Adv. Ms. Shireesha Sharma, Adv and Mr. Sawan Datta Adv. 

For Respondent(s) : Mr. Pranjal Sharma, Adv. Mr. Samir Ali Khan, AOR