SOCIETY FOR UN AIDED PRIVATE SCHOOLS Vs. STATE OF RAJ AND ORS
LAWS(RAJ)-2015-3-290
HIGH COURT OF RAJASTHAN
Decided on March 09,2015

Society For Un Aided Private Schools Appellant
VERSUS
State Of Raj And Ors Respondents

JUDGEMENT

- (1.) SHRI Rajendra Prasad, AAG appears for the State of Rajasthan. He seeks three weeks' time to file a detailed reply to the D.B.Civil Writ Petition No.1812 of 2014 filed by the Society for Unaided Private Schools of Rajasthan, which has not been filed so far. In the other connected writ petitions, in which the constitutional validity of the Rajasthan Schools (Regulations of Collection of Fee) Act, 2013 (for short, 'the Act'), is also under challenge, copies of the writ petitions have been supplied to the respondents. The AAG is allowed three weeks' time to file replies to these writ petitions.
(2.) ON 07.10.2014, in D.B.Civil Writ Petition No.1812/2014 (Society for Un -aided Private Schools of Rajasthan, Jaipur Vs. State of Rajasthan), we had, after examining the provisions of the Act, passed an order, on an undertaking to be given by the private educational institutions, that for the academic session 2014 -15, they will be free to increase the fees until the fee structure is determined, in respect of such schools individually, by the Committee constituted under the Act. Applications as well as additional affidavits have been filed, and allegations have been made in the connection D.B.Civil Writ Petitions, that the Committee is arbitrarily determining the fee in the private schools, by adopting a formula (a statistical model), which is common to all the Schools. It is submitted that formula is being applied, dividing the private schools into categories, namely, those who are charging fee below Rs.10,000/ - per annum, and those who are charging above Rs.10,000/ - per annum. The Formula, namely, (i) Fsc14 -15={Fp, FAdj14 -15, (1+C4/100) F13 -14} (for schools charging fees below Rs.10,000/ - per annum) and (ii) A= Min {Fp, Fp, (1+C4/100) F13 -14, Fadj14 -15}; B= Min (F12 -13, Fadj12 -13) Fsc14 -15=Max (A, B) (for schools charging fees above Rs.10,000/ - per annum) provides for standardized method of fixation of fees. For example, in the Sophia Public School, Bhava, Rajsamand, the school had proposed the average annual fee for the year 2014 -15 as Rs.29,138/ -. The average annual fee calculated on the basis of admissible proposed expenditure for the year 2014 -15, was Rs.38,335/ -, whereas the Committee on adopting the formula prepared by it, has permitted an increase in the fees on the basis of CPI, and has fixed the school fees, in the orders passed under Section 6(4) of the Act, at Rs.18,313/ -, without affording an opportunity of hearing.
(3.) IT is submitted that the provisions of the Act for determination of school fees under Section 5 of the Act are applicable for determining the school fee, only after recording a finding, after examining the school fees charged and proposed, taking into account the proposed expenditure for the year, that the school is charging exorbitant or excess fees. The provisions of the Act, enacted in light of the observation made by Hon'ble Supreme Court in Islamic Academy of Education and Anr. Vs. State of Karnataka and Ors., 2003 6 SCC 697, apply after recording a finding that the privately managed school, not receiving any aid from State Government in any form, is charging exorbitant fee, and it is only after arriving at such a finding, that the Committee, under Section 5, can determine the fees, on the consideration of factors provided under Section 6(1)(a) to (e), in which a notice is to be given under sub -section (2), against which the private school may file objection within thirty days, and final order to be passed under sub -section (4). Rule 7 of the Rajasthan Schools (Regulations of Collection of Fee) Rules, 2013 framed under the Act provides for the guidelines for fixing the fee. Prima facie, we find substance in the submission that unless a finding is recorded, considering the fact situation and the expenses incurred, including the repayment and servicing of loans, which have been taken, and modernization/expansion, which the management of the school has undertaken or proposes, that the school is charging exorbitant fee, or the fee structure is highly excessive, the Committee under the Act, does not get the authority to initiate proceedings under Section 6 of the Act. The Act prima facie, does not propose fixation of fee, for all schools, across the board, on a standard formula, prepared by it, dehors the finding of charging exorbitant fees. On the contrary, the orders under Section 6(4) passed by the Committee record its satisfaction that the school, for which the fee is determined, is not charging exorbitant fees.;


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