SC sets aside HC ruling on APS CHE case

HIGH-COURT
In a key ruling that is bound have repercussions, the apex court made it clear that the assets in Hyderabad shall be divided between the two states and one particular state cannot lay claim over them. A two-judge bench comprising Justice Gopala Gowda and Justice Arun Mishra dismissed the High Court ruling with regard to a petition by AP State Council for Higher Education (APSCHE) which argued that they were denied the right to continue in the building held by them before bifurcation and their bank accounts were also frozen by the new government in Telangana.

The Supreme Court has dismissed Telangana government’s contention that all the assets in Hyderabad belong to Telangana only and AP has no stake over them under Section 75.
There is no meaning for Section 45 of the Constitution if the division of assets don’t take place, the bench said.
It asked the respective states to distribute assets in the ratio of 58: 42.
If there is an issue, the Centre should resolve the issue, the judges said. They asked the Centre to come up with solution (to APSCHE) in two months.

The bench has also asserted that their ruling over assets is applicable to all the institutions and corporations that were mentioned in Schedule X of the Act.
The case pertains to the assets of APCHE which were blocked by the banks on the direction of Telangana Higher Education Council which was formed after the bifurcation of the state. The APCHE had to change its office to another one following occupation of TSCHE.

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