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IN THE HIGH COURT OF DELHI
Rekha Palli, Amit Bansal, JJ.
Yashvir Singh Chauhan - Appellant
Versus
Action Committee Unaided Recognised Private Schools - Respondent
LPA 179 of 2021, C.M. No. 18382 of 2021(for stay) & C.M. No. 18385 of 2021(leave to file appeal), LPA 180 of 2021, C.Ms. No. 18386 of 2021(for stay) & 18389 of 2021(leave to file appeal), LPA 184 of 2021 & C.M. No. 18510 of 2021(for stay) and LPA 185 of 2
Decided On : 07-06-2021




The court upheld that the Directorate of Education exceeded its statutory powers by directing the suspension of Annual Charges and Development Fees from private schools, violating contractual agreements and lacking authority under the Delhi School Education Act.

Headnote:(A) Delhi School Education Act, 1973 and Delhi School Education Rules, 1973 - Challenging the legality of the directions issued by the Directorate of Education to postpone the collection of Annual Charges and Development Fee by private schools during the pandemic - Court ruled such orders were illegal and ultra vires the Directorate's powers under the DSE Act and DSE Rules. (Paras 3, 12, 20)

(B) Contract Law - The court emphasized that the imposition of restrictions on private contracts concerning fee structures is only permissible when schools engage in profiteering or commercialization - No such findings were present in the case. (Paras 14, 20)

Facts of the case:
The appeals challenge an order which held that directions from the Directorate of Education obstructing fee collection from students were unlawful. The appeal concerns 450 unaided private schools in Delhi.

Findings of Court:
The order from the learned Single Judge was confirmed, emphasizing the lack of authority in the Directorate's directives regarding fee postponement.

Issues: The court addressed whether the Directorate overstepped its powers by interfering with private contracts concerning fee collections during school closures.

Ratio Decidendi: The court concluded that while supervision over private school operations is necessary to prevent profiteering, the Directorate's interventions were beyond its designated authority and lacking legal backing.

Result: Applications dismissed.

Table of Content
1. challenge to single judge's order (Para 3 , 5)
2. arguments for stay of judgment (Para 6 , 9 , 10 , 12 , 13)
3. counterarguments regarding powers and financial implications (Para 14 , 15 , 16)
4. court's agreement with single judge's findings (Para 20 , 22)
5. importance of sustaining operations during pandemic (Para 24 , 25 , 26 , 27)

JUDGMENT

Rekha Palli, J. (Oral)

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

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