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2021 Supreme(Guj) 1189

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, J.
EUROSCHOOL EDUCATION TRUST - Appellant
Versus
FEE REGULATORY COMMITTEE (SELF FINANCED SCHOOL) - Respondent
SPECIAL CIVIL APPLICATION NO. 8153 of 2020
Decided On : 24-11-2021

Advocates Appeared:
For The Appellant :MR MIHIR JOSHI, SR. ADVOCATE, MR.BHASH H MANKAD
For The Respondent: MS ML SHAH, GP with MR. KM ANTANI

Headnote:

Constitution of India, 1950 - Article 227 - Gujarat Self Financed Schools (Regulatory of Fees) Act, 2017 - Section 8, 8(2)(b) - Gujarat Self Financed Schools (Regulatory of Fees) Rules, 2017 - Rule 8 - Petitioner-Trust that as per Rule 8 of Rules of 2017, for determining the fees for Academic Year 2017-2018, schools are not required to submit audited accounts for Financial Years 2014-2015 and 2015-2016 and provisional accounts for Financial Year 2016-2017 along with other documents specified therein - Accordingly, petitioner-Trust provided audited balance sheets for Financial Years 2014-2015, 2015-2016 and 2016-2017 - Whether fee proposed by self-financed school is justified - Whether it amounts to profiteering or charging exorbitant fees – Held, It is also pertinent to note that in impugned order, respondent has also not mentioned as to how much rent is disallowed by it out of total rent of Rs.1,62,21,930/- and it is only when rectification order passed by respondent , it has come to knowledge of petitioner that rent of about Rs.75,00,000/- is disallowed by respondent for determining the fees for the Academic Year 2017-2018 - In such circumstances, on perusal of impugned orders, except, writing two words “excessive and exorbitant”, no other cogent reason is given by respondent - Petition allowed partly.

JUDGMENT :

1. Heard, learned Senior Advocate Mr. Mihir Joshi assisted by learned Advocate Mr. Bhash H. Mankad for the Petitioner-Trust, learned Government Pleader Ms. M.L. Shah assisted by learned AGP Mr. K.M. Antani for Respondent Nos. 1 to 3.

2. Rule. Learned AGP Mr. Antani waives service of rule for the Respondents.

3. By this petition under Article 227 of the Constitution of India, the petitioner-Trust has prayed for the following reliefs:

    “46. …

(a) That this Hon’ble Court be pleased to issue writ in the nature of certiorari, or any other appropriate writ, order or direction declaring the order dated January 25, 2019 passed by Respondent No.1 i.e. Final Order, the order dated April 29,2019 passed by Respondent No.2 i.e. Revision Order and the order dated September 13, 2019 passed by Respondent No.1 in the rectification application filed by the petitioner on August 8, 2019, i.e. Rectification Order to be arbitrary, invalid, bad in law, ultra vires of the provisions of the Act and quash the same;

(b) That this Hon’ble Court be pleased to issue writ in the nature of mandamus, or any other appropriate writ, order or direction directing Respondent No.1 and Respondent No.2 not to disallow expenditure towards rent paid or payable by the School as well as any other legitimate expense incurred by the Petitioner, while determining the School fee for the academic years 2017-2018 and 2018- 2019;

(c) That pending the hearing and final disposal of the present Petition, this Hon’ble Court may be pleased to stay the operation, implementation and effect of the directions and findings in the Impugned Orders.

(d) That pending the hearing and final disposal of the present Petition, this Hon’ble Court may be pleased to issue writ of prohibition, or a writ in the nature of prohibition, or any other appropriate writ, order or direction against the Respondents, prohibiting the Respondents, by themselves, their servants, agents, officers or subordinates from taking any action against the Petitioner, or officers of the School for non-compliance with the Impugned Orders;

(e) Costs be provided for;

(f) ...”

4. The brief facts of the case are as under:

    4.1 The petitioner-Trust has established a self financed school in the year 2010 in Hebatpur, Ahmedabad, which is affiliated with Central Board of Secondary Education Board (CBSE).

4.2 It is the case of the petitioner-Trust that there are around 656 students studying in the pre-primary (Junior & Senior K.G.), Primary (Standards- 1 to 4), Upper Primary (Standards- 5 to 8) and Secondary (Standards- 9 to 10). The students, teacher ratio in the school is 14:1.

4.3 Respondent No.3 notified the Gujarat Self Financed Schools (Regulatory of Fees) Act, 2017 (in brief, ‘Act of 2017’) and the Gujarat Self Financed Schools (Regulatory of Fees) Rules, 2017 (herein after referred to as, ‘Rules of 2017’).

4.4 As per Section 8 of the Act of 2017, Respondent No.1-Fee Regulatory Committee (For short "respondent no.1-FRC”) is established to determine the fees payable by the students to self-financed schools.

4.5 Section 8(2)(b) of the Act of 2017 empowers Respondent No.1 to verify, whether the fee proposed by the self-financed school is justified and whether it amounts to profiteering or charging exorbitant fees.

4.6 The petitioner-Trust submitted their fee proposal for the pre-primary (Junior & Senior K.G.), Primary (Standards- 1 to 4), Upper Primary (Standards- 5 to 8) and Secondary (Standards- 9 to 10) to respondent no.1-FRC on 31st July, 2018 for the Academic Year 2017-2018 and 2018-2019 along with the evidence in support of the fee proposed.

4.7 It is the case of the petitioner-Trust that as per Rule 8 of the Rules of 2017, for determining the fees for the Academic Year 2017- 2018, the schools are not required to submit audited accounts for Financial Years 2014-2015 and 2015-2016 and provisional accounts for the Financial Year 2016-2017 along with the other documents specified therein. 4.8 Accordingly, the petitioner-Trust provided t

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