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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, ANIRUDDHA P. MAYEE, JJ.
State Of Gujarat – Appellant
Versus
Shreyas School Through Its Principal Arti Venkatesh Trivedi & Ors. – Respondents
R/CIVIL APPLICATION (FOR LEAVE TO APPEAL) NO. 1240 of 2023, In R/LETTERS PATENT APPEAL NO. 334 of 2024, With R/LETTERS PATENT APPEAL NO. 334 of 2024, In R/SPECIAL CIVIL APPLICATION NO. 18076 of 2019 With R/LETTERS PATENT APPEAL NO. 335 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 6185 of 2021 With CIVIL APPLICATION (FOR STAY) NO. 2 of 2023 In R/LETTERS PATENT APPEAL NO. 334 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 18076 of 2019 With R/CIVIL APPLICATION NO. 1263 of 2024 In R/LETTERS PATENT APPEAL NO. 332 of 2024 With R/LETTERS PATENT APPEAL NO. 332 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 7232 of 2021 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 332 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 7232 of 2021 With R/CIVIL APPLICATION NO. 1266 of 2024 In R/LETTERS PATENT APPEAL NO. 333 of 2024 With R/LETTERS PATENT APPEAL NO. 333 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 18895 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 333 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 18895 of 2019 With R/CIVIL APPLICATION NO. 1185 of 2024 In R/LETTERS PATENT APPEAL NO. 335 of 2024 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 335 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 6185 of 2021 With R/CIVIL APPLICATION NO. 1186 of 2024 In R/LETTERS PATENT APPEAL NO. 336 of 2024 With R/LETTERS PATENT APPEAL NO. 336 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 21384 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 336 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 21384 of 2019 With R/CIVIL APPLICATION NO. 1187 of 2024 In R/LETTERS PATENT APPEAL NO. 337 of 2024 With R/LETTERS PATENT APPEAL NO. 337 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 4395 of 2022 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 337 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 4395 of 2022 With R/CIVIL APPLICATION NO. 1189 of 2024 In R/LETTERS PATENT APPEAL NO. 338 of 2024 With R/LETTERS PATENT APPEAL NO. 338 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 6186 of 2021 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 338 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 6186 of 2021 With R/CIVIL APPLICATION NO. 1202 of 2024 In R/LETTERS PATENT APPEAL NO. 339 of 2024 With R/LETTERS PATENT APPEAL NO. 339 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 20881 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 339 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 20881 of 2019 With R/CIVIL APPLICATION NO. 1203 of 2024 In R/LETTERS PATENT APPEAL NO. 340 of 2024 With R/LETTERS PATENT APPEAL NO. 340 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15325 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 340 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15325 of 2019 With R/CIVIL APPLICATION NO. 1204 of 2024 In R/LETTERS PATENT APPEAL NO. 341 of 2024 With R/LETTERS PATENT APPEAL NO. 341 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 5302 of 2020 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 341 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 5302 of 2020 With R/CIVIL APPLICATION NO. 1205 of 2024 In R/LETTERS PATENT APPEAL NO. 342 of 2024 With R/LETTERS PATENT APPEAL NO. 342 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15866 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 342 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15866 of 2019 With R/CIVIL APPLICATION NO. 1206 of 2024 In R/LETTERS PATENT APPEAL NO. 343 of 2024 With R/LETTERS PATENT APPEAL NO. 343 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 1341 of 2021 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 343 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 1341 of 2021 With R/CIVIL APPLICATION NO. 1209 of 2024 In R/LETTERS PATENT APPEAL NO. 344 of 2024 With R/LETTERS PATENT APPEAL NO. 344 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 6854 of 2020 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 344 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 6854 of 2020 With R/CIVIL APPLICATION NO. 1210 of 2024 In R/LETTERS PATENT APPEAL NO. 345 of 2024 With R/LETTERS PATENT APPEAL NO. 345 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 11813 of 2020 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 345 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 11813 of 2020 With R/CIVIL APPLICATION NO. 1247 of 2024 In R/LETTERS PATENT APPEAL NO. 346 of 2024 With R/LETTERS PATENT APPEAL NO. 346 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 10083 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 346 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 10083 of 2019 With R/CIVIL APPLICATION NO. 1248 of 2024 In R/LETTERS PATENT APPEAL NO. 347 of 2024 With R/LETTERS PATENT APPEAL NO. 347 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 454 of 2022 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 347 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 454 of 2022 With R/CIVIL APPLICATION NO. 1249 of 2024 In R/LETTERS PATENT APPEAL NO. 348 of 2024 With R/LETTERS PATENT APPEAL NO. 348 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15640 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 348 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15640 of 2019 With R/CIVIL APPLICATION NO. 1251 of 2024 In R/LETTERS PATENT APPEAL NO. 349 of 2024 With R/LETTERS PATENT APPEAL NO. 349 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 18068 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 349 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 18068 of 2019 With R/CIVIL APPLICATION NO. 1252 of 2024 In R/LETTERS PATENT APPEAL NO. 350 of 2024 With R/LETTERS PATENT APPEAL NO. 350 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 17821 of 2021 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 350 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 17821 of 2021 With R/CIVIL APPLICATION NO. 1274 of 2024 In R/LETTERS PATENT APPEAL NO. 351 of 2024 With R/LETTERS PATENT APPEAL NO. 351 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15656 of 2019 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 351 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 15656 of 2019 With R/CIVIL APPLICATION NO. 1298 of 2024 In R/LETTERS PATENT APPEAL NO. 352 of 2024 With R/LETTERS PATENT APPEAL NO. 352 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 3341 of 2022 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 352 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 3341 of 2022 With R/CIVIL APPLICATION NO. 1340 of 2024 In R/LETTERS PATENT APPEAL NO. 353 of 2024 With R/LETTERS PATENT APPEAL NO. 353 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 7985 of 2021 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 353 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 7985 of 2021 With R/CIVIL APPLICATION NO. 1357 of 2024 In R/LETTERS PATENT APPEAL NO. 354 of 2024 With R/LETTERS PATENT APPEAL NO. 354 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 7983 of 2021 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023 In R/LETTERS PATENT APPEAL NO. 354 of 2024 In R/SPECIAL CIVIL APPLICATION NO. 7983 of 2021
Decided on : 03-04-2024
Delay - Civil Applications for leave to appeal - Gujarat Self-Financed Schools (Regulation of Fees) Act, 2017 - Section 8, Section 10, Section 11, Section 12 - The judgment discusses the provisions of the Act and the Rules made thereunder, focusing on the determination of fee payable by self-financed schools, the factors for fee determination, prohibition on collection of excess fee, and the remedy of filing revision against the fee fixed by the Fee Regulatory Committee. The court emphasizes the need for the Committee to follow the provisions of the Act and conduct inquiries on a case-to-case basis to determine if the fee proposal is justified and whether it amounts to profiteering.
Fact of the Case:
The appeals were filed by the State challenging the judgment remitting the matter for fresh consideration to the Fee Regulatory Committee (FRC) to decide on the fee proposal of self-financed schools in Gujarat as per the Gujarat Self-Financed Schools (Regulation of Fees) Act, 2017 and the Rules, 2017. The main grounds of challenge were the validity of the Act, directions on lease rent, depreciation, and interest on loan.
Finding of the Court:
The court found that the FRC had not given reasons for disallowing lease rent and had made errors in determining lease rent and depreciation. It also held that the FRC could not standardize fee determination and should conduct inquiries on a case-to-case basis. The court also emphasized the need for the FRC to consider prescribed parameters and to hold meetings with all members present. The FRC's decision to restrict schools from charging term and admission fees was found to be unjustified.
Issues: Validity of the Act, directions on lease rent, depreciation, interest on loan, and the FRC's decision to restrict certain fees.
Ratio Decidendi: The FRC must follow the provisions of the Act and conduct inquiries on a case-to-case basis to determine if the fee proposal is justified and whether it amounts to profiteering. The FRC should consider prescribed parameters, hold meetings with all members present, and not restrict schools from charging certain fees.
Final Decision: The appeals were dismissed, and connected Civil Applications were disposed of.
JUDGMENT :
SUNITA AGARWAL, J.
1. The delay occurred in filing the Civil Applications seeking leave to Appeal, has been explained to the satisfaction of the Court. Hence, all Civil Applications in the connected matters for condonation of delay are, accordingly, allowed.
2. The Civil Applications for leave to appeal in all the connected matter are allowed, accordingly.
3. The appeals, in this bunch, have been filed by the State through the Secretary, Education Department, Government of Gujarat challenging the judgment and order dated 22.07.2022 passed by the learned Single Judge in remitting the matter for fresh consideration to the Fee Regulatory Committee (in short as “FRC”) to decide on the fee proposal of self- financed schools in the State of Gujarat as per the Gujarat Self-Financed Schools (Regulation of Fees) Act, 2017 (in short as “ the Act’2017) and the Gujarat Self Financed Schools (Regulation of Fees) Rules, 2017( in short as “the Rules’ 2017”).
4. The directions issued by the learned Single Judge are primarily on the quorum of the Fee Regulatory Committee as also the method adopted by the Committee in determination of fee on the proposal submitted by the institutions.
5. The main grounds of challenge agitated by Ms. Manisha Lavkumar Shah, learned Additional Advocate General appearing for the State appellants are that the validity of the Act’2017 is under consideration of the Apex Court in Special Leave to Appeal No.314 of 2018. The intervention by the learned Single Judge on the challenge to the order passed by the Fee Regulatory Committee (in short as “the FRC”) and Fee Revision Committee would cause prejudice to and materially affect the scrutiny into the legality of the provisions of the Act.
6. It was argued that on the lease rent, the learned Single Judge has directed the FRC to consider and verify the transactions of lease rent by conducting an inquiry as per Section 8 of the Act’ 2017 read with Rule 7 of Rule’ 2017 and has set aside the decision of the Committee where the lease rent was determined by calculating the same on the basis of Jantri value. It was urged that no error can be found in the decision of the FRC in determination of the lease rent as per the Jantri value, which is a relevant factor to determine the lease rent. Similarly, on depreciation, the learned Single Judge has committed illegality in holding that the depreciation would form part of the reasonable surplus to be provided in the proposed fee to be charged by the schools from the students and, as such, the depreciation claimed by the schools would not be allowed under separate Head.
7. Similarly, on the aspect of interest on loan, the learned Single Judge has forbidden the disallowance of interest on loan by amortizing the same over the life of an asset for which the loan may have been incurred. Such prohibition by the learned Single Judge would be contrary to the interest sought to be secured under the provisions of the Act for the reason that the school management will be free to determine the terms of loan at its whims and fancies and, accordingly, pass on the burden of exorbitant loan repayment and fasten its liability on the students by charging higher fee, showing such interest payable on loan secured by the management as expenditure. It was vehemently argued that the FRC is a statutory Committee framed under Section 3(4) of the Act’ 2017. Due opportunity of hearing has been granted to the institutions and fee structure has been determined in accordance with the provisions of the Act’ 2017.
8. The FRC has fixed fee by disallowing the lease rent earned by the Trust, which amounted to profiteering as per Section 8(2). As per the provisions of the Act, the FRC is to scrutinize the proposals and give opportunity of being heard before taking the decisions which had duly been granted to the concerned institutions. Two statutory authorities, namely the Fee Regulatory Committee and Fee Revision Committee had conducted the proceedings for determinati
The Fee Regulatory Committee must follow the provisions of the Act and conduct inquiries on a case-to-case basis to determine if the fee proposal is justified and whether it amounts to profiteering.
The Court emphasized the importance of complying with the legal provisions under the Gujarat Self-Financed Schools (Regulation of Fees) Act, 2017 and the Rules'2017, particularly in the context of th....
The Court's decision emphasized the importance of adhering to the provisions of the Gujarat Self-Financed Schools (Regulation of Fees) Act, 2017 and the Rules'2017 in determining the fee payable by s....
The FRC, as a quasi-judicial authority, must follow the provisions of the Act and Rules, conduct individual case inquiry, and apply principles of natural justice.
The main legal point established in the judgment is that the Fee Regulatory Committee (FRC) is required to adhere to the provisions of the Gujarat Self-Financed Schools (Regulation of Fees) Act, 2017....
Point of law: The right to establish an educational institution can be regulated; but such regulatory measures must, in general, be to ensure the maintenance of proper academic standards, atmosphere ....
The authority for fee regulation in educational institutions rests solely with the State Government, emphasizing compliance with statutory provisions to curb capitation fees and ensure fair practices....
Private educational institutions can set their own fee structures, provided they do not engage in profiteering or capitation fees, adhering to principles established in precedential Supreme Court cas....
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