STATE OF KERALA AND ORS. vs K.G. MADHAVAN PILLAI AND ORS.

The Supreme Court held that the cancellation of the order granting sanction to open or upgrade schools by the State Government was vitiated due to non-observance of principles of natural justice. The Court emphasized that the Government must follow the prescribed procedures under Rules 2 and 2A, and cannot arbitrarily reverse its decisions once made. The Court upheld the Division Bench's decision to quash the cancellation order and directed the Government to reconsider the applications based on the merits of the earlier order.