Should the house accept 'Reservation Quotas'?

Around a week ago I visited session of one of the students club called 'Parliamentary Debate club'. Parliamentary debate is little bit different, it follows certain rules and a specific format. The topic was "This house will accept quotas". One group will defend it and other will oppose. Well this is a very common and controversial topic. We generally come across this topic every now and then, sometimes we speak and sometimes just leave it. One month back I was short listed for the GD round of placement process of Tata Technologies. There too the topic was 'Does reservation degrade the quality of education'. Though I cleared he round but was not that happy because non of us actually could found a solution to the problem. One thing that emerged out of discussion was we should reconsider the criteria of reservation like it should not be caste based but is should be economical condition based or so.

Similar case I saw again in the debate of this club that whenever we are asked what should be done with this quota thing at that time we spontaneously react and then refrain. Like it starts with one boolean query that quotas should be there or not just 0 or 1. Then we realize it is not a problem of Digital logic but its one of fuzzy logic where you can have intermediate values between 0 and 1. Because if there are quotas then after 60 years of independence we are generating social imbalance in the society. But argument will be still there are some people who need a helping hand and such genuine unprivileged people should be given benefit. Now a question arises that these needy people can be of any caste. So the prevailing criteria is not apt for the situation. Someone would argue that government is taking action and Creamy Layer is the outcome of it. But the argument is still that concept is not practised. And the discussion goes on...

It seems that first it is a very hard to decide that should we need quotas or not and if yes then what should be the criteria for the reservation if not caste then. And if you come up with some practical criteria then how would you practise it? So to me this problem turns out to be a NP Hard problem. You are welcomed to give your word on this.