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2010 Supreme(AP) 821

2011(2) ALT 613 (D.B.)
IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD
GODARAGHURAM and NOUSHAD ALI, JJ.
Nalanda Educational Society rep. by its Vice-President Sri M. Prasannanjaneyulu and others
Vs.
Government of Andhra Pradesh rep. by its Secretary to Government, School Education Department and others
W.P.Nos. 18783 of 2009 and Batch
Decided on: 27-8-2010.

Advocates Appeared:
M/s. P.P. Rao, D. Prakash Reddy and S. Ravi, Senior Counsel assisted by Mr. P. Venugopal and M/s. Ch. Pushyam Kiran, Y. Ratnakar, B. Adinarayana Rao, Mir Wajid Ali Kamil, N. Harinath Reddy, Prabhakar Peri, Deepak Bhattacharjee, Smt. S. Renuka, A. Ravi Shankar, S.V. Bhatt, Challa Gunaranjan, S.R. Mahajir, S. Niranjan Reddy and L. Ravichander, Counsel for the Petitioners.
Additional Advocate General assisted by G.P. for School Education for Respondent Nos. 1 to 3 - State of A.P. and Other Official Respondents.
Mr. Ponnam Ashok Goud, Asst. Solicitor General for Union of India.
Mr. C.V. Mohan Reddy and Mr. D.V. Siva Prasad, Senior Counsel for H.S. Parents Association and M/s. Shaik Mahamood Ali and K.V. Janardhan Rao, Counsel for other Parents Associations-Respondents.

Headnote:A) A.P. EDUCATON ACT, 1982, Sections 1 (3),19 and 20 - A.P. Educational Institutions (Regulation of Admissions and Prohibition of Capitation Fee) Act, 1983, Sections 2 (b), 7, 9, 10, 11, 15 and 99 G.O.Ms. No.91, Education (SE: PSI) Dept., dated 6-8-2009 :- The G.O. regulating the fees structure of private unaided schools is covered by the executive power of the State under List III Schedule VII, Entry 25. The No Objection Certificate issued in respect of such of the school which are affiliated non-State agencies like CBSE or ICE is only customary in nature and it does not bestow any immunity to such school, but does not contain any promise also to that effect. None of the rules of CBSE or ISC contain any rules or regulation with the power of the State.

       B) A.P. EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSIONS AND PROHIBITION OF CAPITATION FEE) ACT, 1983, Section 7 - Constitution of India, Articles 19 (l)(g) and 29 (1) read with Articles 14 and 15 (1):- The right to establish education institutions is a constitutional right under Section 19(1)(g) and also under Article 29(1). This right is however subject to the regulatory power of the State with the objective of ensuring proper educational standards and also fair fees structure in such a way that it does not amounts to profiteering by establishing educational institutions. The State shall exercise its power keeping the nice balance between the avowed objective stated above and at the same time its regulation does not become a camouflage for interfering with its autonomy.

       C) A.P. EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSIONS AND PROHIBITION OF CAPITATION FEE) ACT, 1983, Sections 7 and 2 (f) Constitution of India, Article 162:- Notification published in the official gazette of the Andhra Pradesh prescribing several regulations on different types of fees or collections in private unaided schools amount to the exercise of State’s executive power and it is a G.O. mentioned under Section 2(f) of the Act.

       D) A.P. EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSIONS AND PROHIBITION OF CAPITATION FEE) ACT, 1983, Section 7 - G.O.Ms. No.91, Education (SE: PSI) Dept., dated 6-8-2009:- Constituting the Navin Mittal Committee to enquire into the various components of fee structure and report is not invalid for impermissible delegation of power, because the administrative authorities can also always such functions of preparatory work to exercise the fees structure.

       E) A.P. EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSIONS AND PROHIBITION OF CAPIATION FEE) ACT, 1983, Section 7 - G.O.Ms. No.91, Education (SE: PS-I) Dept., dated 6-8-2009:- Constitution of District Fees Regulatory authority vested with the absolute power to impose restrictions on the fees structure of the unaided private education authorities is not preparatory work giving recommendation to the Government to issue a notification under Section 7 of the Act and amounts abdication of the responsibility and duty thereunder. Vesting such power on the District Fees Regulatory Authority amounts to impermissible delegation of power.

       F) A.P. EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSIONS AND PROHIBITION OF CAPITATION FEE) ACT, 1983, Section 7 - G.O.Ms. No.91, Education (SE: PS-I) Dept., dated 6-8-2009, Para 1 (c) (vi) :- Prescribing the tution fees the academic year2009-2010 on the basis of fees structure in the academic year 2008-2009 pending fixation of fees chargeable by the District Fees Regulation Authority in unsustainable and impermissible Navin Mittal Committee constituted for the purpose of deciding the proper and fair amount of fees had not made any rational study of the various components of fees structures. Held unless rational basis is adopted to determine the fees structure of the private unaided educational institution it would be violation of the autonomy as provided in T.m..Pai’s case by the Supreme Court. Without first examining the annual accounts of each private education institution and projecting the income and expenditure and necessary surplus for development of the school, fixation of the fees structure is not proper.

       G) A.P. EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSIONS AND PROHIBITION OF CAPITATION FEE) ACT, 1983, Section 7 - G.O.Ms. No.91, Education (SE: PS-I) Dept., dated 6-8-2009, Para 1 (c) (iv):- Prohibition of conducting extra classes and charging separate fees for such extra classes is interfering with the functional autonomy of the educational institutions.

ORDER

(Per Goda Raghuram, J.)

The common issue presented in the several writ petitions, (though the pleadings are differently structured), is the validity of order of the State Government in (1) G.O.Rt.No.376 Education (SE: PS-1) Department dated 18-06-2009 and in (2) G.O.Ms.No. 91 Education (SE: P.S.-1) Department dated 06-08-2009. In some writ petitions, an additional relief is sought viz., invalidation of the order of the Secretary, School Education in proceedings No. 8293/B5/2009 dated 07-09-2009 (W.P. Nos. 22744 of 2009 and 288 of 2010). The principal attack is however against G.O.Ms.No.91, Education dated 06.08.2009.

2. The impugned orders (G.O.Rt.No.376 Education (SE: PS-1) Department dated 18-06-2009 and G.O.Ms.No. 91 Education (SE: P.S.-1) Department dated 06-08-2009) read as under:

Regulation of fee structure for the pupils admitted/studying in the private schools, corporate schools, CBSE and ICSE schools in the State Orders issued.

EDUCATION (SE: PS-I) DEPARTMENT

G.O.Rt.N6.376 Date: 18-06-2009

Read the following:

From the Collector & District Magistrate D.O.Lr.No. Special/A.Sec./ 2009 dated 13-05-2009.

ORDER:

1. The Collector, Hyderabad has brought to the notice of Government that the Private schools are at liberty in fixing the school fee which has resulted in huge escalation of school fee and donations especially in this academic year by certain private schools. Since, there is no ceiling for fee, certain private schools are collecting huge school fee and other miscellaneous fee and taking huge amount by way of donations for admissions. Due to this, the parents are facing lot of difficulty in admitting their children in private schools. He has also stated that there is an urgent need for fixing a ceiling on collection of all fee by the private schools as the trend of enhancement which has started especially this year would result in sky rocketing of the fee in next few yeas resulting in untold hardship for parents and school student with no option as it lose to impossible shift children from one school to another especially in the middle of the year. He has finally requested the Government to issue necessary orders for streamlining the collection of school fee in all private schools.

2. Government have also received number of representations from the parents of the pupil on the collection of exorbitant fee by the private schools in the State and requested for regulation of the fee structure in the private schools.

3. Government have examined the matter and direct that a committee with the following members be constituted with immediate effect to go into the regulation of fee structure in the private schools, corporate schools, CBSE schools, TCSE Schools functioning in the State by categorizing the schools with reference to the amenities provided to the students by the school management and taking into their location in the State.

1. Sri Naveen Mittal, I.A.S., Collector & District Magistrate, Hyderabad.

2. Sri Lav, Agarwal, I.A.S., Commissioner, Intermediate Education.

3. The nominee of the Commissioner & Director of School Education, A.P., Hyderabad.

4. Sri Ramana Murthy Raju, Additional Secretary, Law Department.

5. Sri Narayana Reddy, Principal & Correspondent, Warangal, St. Peters

4. The committee shall give its report along with recommendations on regulation of fee structure along with penal provisions for violation in collection of the fee ordered by the Government in this regard within three days from the date of receipt of the orders. The committee may also make any of the recommendations on the subject to Government for its consideration.

5. The Commissioner & Director of School Education is requested to take action and assist the committee in submission of its report.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

K.R. KISHORE

PRINCIPAL SECRETARY

TO GOVERNMENT.

--o0o--

GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

School Education Department - The Andhra Pradesh Educational Institutions (Regulation of Admissions and Prohibit
























































































































































































































































































































































































































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