Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2010 Supreme(Mad) 4411

High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. M.Y. EQBAL & THE HONOURABLE MR. JUSTICE T.S. SIVAGNANAM
P.B. Prince Gajendra Babu General Secretary & Others
Versus
Federation of Association of Private Schools in Tamilnadu, Rep. by its Secretary D.C.Elangovan & Others
W.A.Nos.2035, 2039 & 2040 of 2010 & M.P.Nos.1+1+1 of 2010
Decided on : 05-10-2010

Advocates appeared:
For the Appellants:M. Radhakrishnan for S. Sathiyachandran, Advocates, P. Wilson Addl.Advocate General assisted by G. Sankaran Spl. Govt. Pleader (Education).
For the Respondents:R1, R.Krishnamoorthy Senior Counsel for V.P. Sengottuvel, R. Muthukumaraswamy Senior counsel for V.P. Sengottuvel, Advocates. Assisted the Court:S. Silambanan Senior counsel, A.L. Soymazee Senior counsel, V.T. Gopalan Senior counsel, R. Natarajan, N.G.R. Prasad, Advocates.

The main legal point established in the judgment is the importance of natural justice in the fee determination process and the need for fair consideration of objections by the fee determination committee.

Headnote:
FEE FIXATION - EDUCATION - Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009, Section 3, Section 6 - The court discussed the provisions of the Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009, particularly Section 3 and Section 6, which regulate the collection of fees by private schools in Tamil Nadu. The court analyzed the factors for determination of the fee, the procedure to be followed, and the powers of the committee in fixing the fee. The court emphasized the importance of natural justice in the fee determination process and the need for fair consideration of objections by the committee.
Fact of the Case:

The court considered appeals against interim orders restraining the authorities from enforcing the revised fees structure for various schools in Tamil Nadu. The appeals arose from writ petitions challenging the orders of the fee determination committee. The issue revolved around the interpretation and application of the Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009, and the Rules framed thereunder.
Finding of the Court:

The court found that the interim orders granted by the single Judge were not sustainable in law and set them aside. The court directed the 6,400 institutions that had submitted objections to the fee fixation order to pursue their objections before the committee. It also directed that pending consideration of the objections, these institutions shall not be entitled to collect any further fees than what was collected at the beginning of the academic year in June 2010. The court further directed the committee to consider the objections of the 6,400 institutions by affording an opportunity of personal hearing and to pass individual orders expeditiously.
Issues: The issues involved the validity of the interim orders restraining the enforcement of the revised fees structure, the interpretation of the provisions of the Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009, and the fair consideration of objections by the fee determination committee.
Ratio Decidendi: The court held that the interim orders causing hardship to a large section of the public were not sustainable. It emphasized the importance of natural justice in the fee determination process and directed the committee to consider objections by affording an opportunity of personal hearing to the institutions. The court also clarified that the interlocutory order cannot have the effect of granting the final relief.
Final Decision: The court set aside the interim orders and directed the 6,400 institutions to pursue their objections before the committee. It also directed the committee to consider the objections by affording an opportunity of personal hearing and to pass individual orders expeditiously.

Judgment

THE CHIEF JUSTICE & T.S. SIVAGNANAM, J.

These appeals are directed against the interim orders granted in M.P.No.1 of 2010 in W.P.No.19299 of 2010, M.P.No.2 of 2010 in W.P.No.19023 of 2010 and M.P.No.1 of 2010 in W.P.No.19300 of 2010, dated 14.09.2010, in and by which, the learned Judge restrained the authorities from enforcing the revised fees structure for various schools in the State of Tamil Nadu. Though, there were several writ petitions filed challenging the orders of the fee determination committee only three appeals have been preferred one appeal at the instance of the parents and two appeals by the State. However in order to give a full hearing, we have heard all the learned senior counsels, who appeared before the learned Judge in the interim applications for the association of the management schools and managements of individual schools, and we have heard the learned Additional Advocate General on behalf of the appellant State.

2. Though elaborate submissions have been made by the learned Senior counsels for the schools, the learned Additional Advocate General appearing for the State and the learned Senior counsels appearing for the parents and students, the issue which has to be decided in these appeals lies in a narrow campus.

3. The Tamil Nadu Government enacted a law to provide for regulating the collection of fees by school in the State of Tamil Nadu termed as the Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009 (hereinafter referred to as the "Act") and also framed the rules there under.

4. In terms of Section 3 of the said Act, there was a prohibition on Government school or aided school from collecting fee in excess of the fee fixed by the Government for admission of pupils to any standard or course of study in the school. In terms of Sub-Section 2 of Section 3, no fee in excess of the fee determined by the committee under the Act shall be collected for admission of pupils to any standard or course of study. Committee has been defined under Section 2(c) to mean the committee constituted under Section 5. The committee constituted under Section 5 is headed by a Chairperson, who is a retired Judge of this Court and five ex-officio members of whom, the Additional Secretary to Government, School Education Department is the Member Secretary. For the purpose of these appeals, Section 6 of the Act is relevant, which deals with the factors for determination of the fee and the procedure to be followed. For better appreciation, the same is reproduced hereunder:-

6.(1) The committee shall determine the fee leviable by a private school taking into account the following factors, namely:-

.(a) the location of the private school;

.(b) the available infrastructure;

.(c) the expenditure on administration and maintenance;

.(d) the reasonable surplus required for the growth and development of the private school;

.(e) any other factors as may be prescribed.

.(2) The committee shall, on determining the fee leviable by a private school, communicate its decision to the school concerned.

.(3) Any private school aggrieved over the decision of the committee shall file their objection before the committee within fifteen days from the date of receipt of the decision of the committee.

.(4) Thecommittee shall consider the objection of the private school and pass orders within thirty days from the date of receipt of such objection.

.(5) The orders passed by the committee shall be final and binding on the private school for three academic years. At the end of the said period, the private school would be at liberty to apply for reversion.

.(6) Thecommittee shall indicate the different heads under which the fee shall be levied.

5. The Act came into force on 07.08.2009, when it was published in Tamil Nadu Government Gazette. In exercise of the power conferred under Section 16 of the Act, the Tamil Nadu Schools (Regulation of Collection of Fee) Rules, 2009,(hereinafter referred to as the "Rules") came into fo

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