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2021 Supreme(Del) 1374

IN THE HIGH COURT OF DELHI AT NEW DELHI
Rekha Palli, Amit Bansal, JJ.
Master Yashvir Singh Chauhan & Anr. - Appellants
Versus
Action Committee Unaided Recognised Private Schools & Anr. - Respondents
L.P.A. No. 179 of 2021, 180 of 2021, 184 of 2021, 185 of 2021; C.M. No. 18382 of 2021, 18385 of 2021, 18386 of 2021, 18389 of 2021, 18510 of 2021, 18557 of 2021, 18560 of 2021
Decided On : 07-06-2021

Advocates appeared:
K.B. Jha, Advocate, Shikha Sharma Bagga, Advocate, Shyam Divan, Advocate, Kamal Gupta, Advocate, Nipun Jain, Advocate, Sparsh Aggarwal, Advocate, Vikas Singh, Advocate, Santosh Kumar Tripathi, Advocate, Aditya P Khanna, Advocate, Shashank Tiwari, Advocate, Rajiv Tanwar

The main legal point established in the judgment is that the direction to postpone collection of Annual Charges and Development Fee was illegal and ultra vires the powers of the Directorate of Education under the Delhi School Education Act, 1973 and the Delhi School Education Rules, 1973.

Headnote:

DSE Act - Challenge to circulars/orders issued by the Directorate of Education - The court found that the direction to postpone collection of Annual Charges and Development Fee from students until normal functioning of schools is resumed is illegal and ultra vires the powers of the Directorate of Education under the Delhi School Education Act, 1973 and the Delhi School Education Rules, 1973. The court also discussed the Supreme Court's directions in Indian School, Jodhpur & Anr. vs. State of Rajasthan & Ors. and its applicability to the present case.

Fact of the Case:

The appeals challenged the order allowing the respondent Committee's challenge to the circulars/orders issued by the Directorate of Education, GNCTD, directing the postponement of collection of Annual Charges and Development Fee from students until normal functioning of schools is resumed.

Finding of the Court:

The court found that the direction to postpone collection of Annual Charges and Development Fee was illegal and ultra vires the powers of the Directorate of Education under the Delhi School Education Act, 1973 and the Delhi School Education Rules, 1973. The court also discussed the applicability of the Supreme Court's directions in Indian School, Jodhpur & Anr. vs. State of Rajasthan & Ors. to the present case.

Issues: The issues involved the legality of the direction to postpone collection of Annual Charges and Development Fee and the applicability of the Supreme Court's directions in Indian School, Jodhpur & Anr. vs. State of Rajasthan & Ors. to the present case.

Ratio Decidendi: The court held that the direction to postpone collection of Annual Charges and Development Fee was illegal and ultra vires the powers of the Directorate of Education under the Delhi School Education Act, 1973 and the Delhi School Education Rules, 1973. The court also discussed the applicability of the Supreme Court's directions in Indian School, Jodhpur & Anr. vs. State of Rajasthan & Ors. to the present case.

Final Decision: The court dismissed the application and allowed the respondent Committee to collect Annual Charges and Development Fee for the year 2021-22 on the same principles as applicable to the academic year 2020-21 under the impugned judgment.

JUDGMENT

Rekha Palli, J. - C.Ms. No. 18383/2021 & 18384/2021 (for exemption) in LPA 179/2021,

C.Ms. No. 18387/2021 & 18388/2021 (for exemption) in LPA 180/2021,

C.Ms. No. 18511/2021 & 18512/2021 (for exemption) in LPA 184/2021

&

C.Ms. No. 18558/2021 & 1859/2021 (for exemption) in LPA 185/2021

1. Exemptions allowed, subject to all just exceptions.

2. The applications stand disposed of.

LPAs 179/2021, 180/2021, 184/2021 & 185/2021

3. The present batch of appeals under Clause X of the Letters Patent Appeal assails the order dated 31st May, 2021 passed by the learned Single Judge in W.P. (C) No. 7526/2020 filed by the Action Committee Unaided Recognized Private Schools (hereinafter referred to as 'respondent Committee') that comprises of 450 private unaided schools in the National Capital Territory (NCT) of Delhi. Under the impugned order, the learned Single Judge has allowed the respondent Committee's challenge to the circulars/orders issued by the Directorate of Education, GNCTD on 18.04.2020 and 28.08.2020, by holding that the direction to postpone collection of Annual Charges and Development Fee from students until normal functioning of schools is resumed is illegal and ultra vires the powers of the Directorate of Education under the Delhi School Education Act, 1973 (in short 'DSE Act') and the Delhi School Education Rules, 1973 (in short 'DSE Rules').

4. Issue notice. Mr. Kamal Gupta, Advocate accepts notice on behalf of the Action Committee Unaided Recognized Private Schools. He prays for and is granted three weeks' time to file written submissions. Response thereto, if any, besides the written submissions, be filed by the appellants before the next date. The parties are also granted liberty to file any documents forming part of the record which may not have been filed by the appellants.

5. List the matter before the Roster Bench on 12th July, 2021.

    C.M. No. 18382 (for stay) in LPA 179/2021

      C.M. No. 18386 (for stay) in LPA 180/2021

        C.M. No. 18510 (for stay) in LPA 184/2021

          C.M. No. 18557 (for stay) in LPA 185/2021

          6. These applications preferred by the Directorate of Education seek stay of the impugned order during the pendency of these appeals. Under the impugned order, the learned Single Judge had passed the following directions:

            "52. The fact remains, as noted above, that the schools are affecting some savings on account of the fact that the school are presently physically shut. The Supreme Court has already dealt with the stated issue. The directions as passed by the Supreme Court in the case of Indian School, Jodhpur & Anr. vs. State of Rajasthan & Ors. (supra) would clearly apply to the present case mutatis mutandis. Relevant para of the said judgment reads as follows:-

              "128.Ordinarily, we would have thought it appropriate to relegate the parties before the Regulatory Authority to refix the school fees for the academic year 2020-21 after taking into account all aspects of the matter including the advantage gained by the school Management due to unspent overheads/expenses in respect of facilities not availed by the students. However, that course can be obviated by the arrangement that we propose to direct in terms of this judgment. To avoid multiplicity of proceedings (as school fee structure is linked to school-school wise) including uncertainty of legal processes by over 36,000 schools in determination of annual fee structure for the academic year 2020-21, as a one-time measure to do complete justice between the parties, we propose the issue following directions:

                (i) The appellants (school Management of the concerned private unaided school) shall collect annual school fees from their students as fixed under the Act of 2016 for the academic year 2019-20, but by providing deduction of 15 per cent on that amount in lieu of unutilised facilities by the students during the relevant period of academic year 2020-21.

                  (ii) The amount so payable by the concerned students be paid in six equal monthly instalments before 05.08.2021 as noted in ou

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