A bench comprising Justices A R Dave and A K Goel also sought assistance of senior advocate Kapil Sibal in deciding the case and appointed him as amicus curiae.
Attorney General Mukul Rohatgi, appearing for the Centre and senior advocate K K Venugopal, who represented the school administration, said that an interim order, allowing the institution to continue with the admission process under the old scheme, be passed till the matter is finally decided by the apex court.
The Centre and the School have separately challenged the High Court decision.
"It is an unaided private school which provides free education to students of EWS (economically weaker section) category also without claiming reimbursements and hence, no writ petition was maintainable against it," Venugopal said.
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In response to query as to what will happen to those seats which will remain vacant after granting admissions to the wards of government employees, Rohatgi said, "no seat remains vacant. If one more school is opened today, the seats will be filled up by the wards of government servants alone in no time".
Sibal, on being asked by the bench, agreed to assist the court as an amicus and said that one of the wards of his relative studies in the school and "nobody should raise it at the later stage."
(Reopens LGD 20)
The apex court had on December 15 last year agreed to hear the plea challenging the Delhi High Court decision.
60 per cent seats in Sanskriti school are reserved for children of Group-A officers, 25 per cent for those from the economically weaker sections, 10 per cent for wards of rest of the society and 5 per cent for the staff of the school.
The high court had taken suo motu cognizance of the issue in 2006 after reports that the school was charging "nearly 40 per cent less fee from the children of Group-A officers of the Union Government vis-a-vis other children".