( 1 ) THE petitioner is a society registered under the provisions of the Karnataka Societies registration Act. It had established a Primary School at Exemba during the year 1987-88. The approval for establishing the said Kannada Primary School at Exemba was granted under the memorandum dated 29-5-1987/1-6-1987 (Annexure-A ). Clause 9 of the said memorandum provides that schools are entitled to grant-in-aid as per the Government Order No. ED 87 PBC 85, dated 18-4-1985. But, keeping in view the Order No. ED 26 SEP 96, dated 8-2-1996 (Annexure-H), the Government was not inclined to admit the petitioner's school to grant-in-aid. Accordingly, the present writ petition has been filed for quashing the order at Annexure-H with a further prayer for directing the respondents to admit the petitioner's institution, to grant-in-aid. ( 2 ) IT appears that in view of the Government Order Nos. ED 155 PSEP 74, dated 3-6-1977, ED 72 TPU 82, dated 5-1-1984 and ED 92 MES 86, dated 4-7-1986 (Annexure-C), Educational institutions (Primary, Secondary, Pre-University Colleges and Degree Colleges) started during the academic year 1985-86 (. e. , after 1-6-1985) were governed by the seven years grantless period rule and were eligible for grant only after seven years from the year of commencement. But, subsequently as is evident from the preamble of the Government Order at Annexure-H, by government Order No. ED 252 SEP 1992, dated 7-4-1994, it had been ordered that the Primary schools, High Schools and Pre-University Colleges (in short, 'institutions) started after 1987-88 shall be treated as permanently unaided institutions and such institutions will not be entitled for any grant. However, in the Government order dated 8-2-1996 at Annexure-H, it has been provided that institutions which were started from the academic year 1987-88 (. e. , after 1-6-1987) shall also be permanently unaided. ( 3 ) MR. Basavaprabhu S. Patil, learned Counsel appearing for the petitioner, has questioned the validity of the Government Order at An-nexure-H on various grounds, one of which is that despite the impugned order at Annexure-H, educational institutions enumerated in Annexure-J, which were started from the academic year 1987-88 and onwards, are still receiving Government aid and therefore there is a hostile discrimination between similarly placed institutions like the petitioner's school and those at" Annexure-J. Mr. Papireddy, learned Additional Government advocate, on instructions stated that it is an admitted fact that the institutions mentioned in annexure-J are still receiving Government aid. ( 4 ) SO far as grant-in-aid to the educational institutions are concerned, it is being given under the grant-in-Aid Code framed by the State Government pursuant to its executive powers under article 162 of the Constitution of India. No doubt, the Government has the power of amending its order from time to time keeping in view its financial position and other policy decisions but such decisions should conform to the constitutional requirements of equality and fairness as enshrined in Article 14 of the Constitution of India. ( 5 ) APART from the above aspect, now pursuant to the provisions of the Karnataka Education Act, 1983 (hereinafter, 'the Act') which has come into force with effect from 20-1-1995, Grant-in-Aid code has acquired statutory status. It is for the reason that now Chapter IX of the Act deals with grant-in-aid. Section 49 (1) of the Act provides that. "49. Government to set a part sum for giving grant-in-aid to certain recognised institution.-- (1)The State Government shall within the limits of its economic capacity, set apart a sum of money annually for being given as grant-in-aid (hereinafter in this Act referred to as grant) to local authority institutions and private institutions in the State recognised for this purpose in accordance with rules made in this behalf". ( 6 ) THEREFORE, now grant-in-aid is required to be given to the private institutions only in accordance with rules made in this behalf. Further, Section 146 (3) of the Act provides that. " 146. Repeal and savings. (1) XXX XXX XXX. (2) xxx xxx xxx. (3) Notwithstanding anything contained in this Act, all rules, orders, notifications, grant-in-aid codes, appointments, schemes, bye-laws, regulations, official memoranda-circular or any other orders made or issued before the commencement of this Act and in force on the date of such commencement providing for or relating to any of the matters for the furtherance of which this act is enacted shall continue to be in force and effective as if they are made under the corresponding provisions of this Act unless and until superseded by anything done or any action taken or any notification, Grant-in-Aid Code, rule, order, appointment, scheme, bye-law, regulation, official memorandum, circular or any other order made or issued under this Act". ( 7 ) THE above saving clause makes it clear that after coming into force of the Act, the provisions contained in Grant-in-Aid Code, by legislative fiction has to be treated as statutory rules framed for the purposes of Chapter IX of the Act and the same can be amended only as per Section 145 of the Act which requires previous publication for making the rules and that too by notification in this Official Gazette. ( 8 ) FACED with the above situation, the State Government has now during the pendency of the present writ petition has framed Rules, in terms of Section 145 of the Education Act and has published the same in the Karnataka Gazette dated 7-9-1998. These are to the following effect. " 1. Title and commencement. (1) These rules may be called the Karnataka Education Institutions (Grant-in-Aid for Primary, secondary and Pre-University Educational Institutions) Rules, 1998. (2) They shall be deemed to have come into force with effect from the first day of June, 1995. 2. Definitions.-- In these rules, unless the context otherwise requires. ( a) 'act' means the Karnataka Education Act, 1983 (Karnataka Act 1 of 1995 ). (b) 'section' means a Section of the Act. 3. Ineligibility of certain private education institutions to get grant-in-aid.--Notwithstanding, anything contained in Order No. ED 252 SEP 92, dated 7-4-1994 which is continued to be in force in accordance with Section 146, all private educational institutions (including all private educational institutions run by Scheduled Castes and Scheduled Tribes) established or permitted to be so established on or after the first day of June, 1987, for imparting primary education, secondary education or pre-university education shall be permanently ineligible for grant-in-aid". ( 9 ) IN the case of State of Orissa v Aswini Kumar Dash, at para 12, it has been held thus. "the State Government has framed a scheme for such grant-in-aid looking to its own financial resources and the number of educational institutions to which it will be required to give such grant. No educational institution can claim grant-in-aid as a matter of right. This is a matter of policy which the State Government will decide looking to its financial capacity and other relevant circumstances". No educational institution can claim grant-in-aid as a matter of right. This is a matter of policy which the State Government will decide looking to its financial capacity and other relevant circumstances". ( 10 ) KEEPING in view, the rules framed by the State Government and the law laid down by the supreme Court as noticed above, no private educational institution either established or permitted to be so established on or after 1-6-1987 for imparting primary education, secondary education or pre-university education can claim to be eligible for grant-in-aid at any time in future. ( 11 ) KEEPING in view the law as clarified above, concerned Secretary to the Education department of the Government of Karnataka should take final decision within one month from the date of receiving a copy of this judgment, with regard to the eligibility of each of the educational institution, who are petitioners before this Court, in respect of their educational institutions and he should communicate the same to each of the petitioners in this case and the connected cases. ( 12 ) KEEPING in view the above said observations and directions the present writ petition is disposed of.