IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Jaswant Singh, Girish Agnihotri , JJ.
Naitik - Appellant
Versus
State Of Haryana - Respondent
CWP-14686-2021
Decided On : 24-08-2021
Haryana Private Health Sciences Educational Institutions - Challenge to Section 7 of the 2012 Act - [SUMMARY OF ACTS AND SECTIONS REFERENCED: The court discussed the constitutionality of Section 7 of the 2012 Act, which permits the State Government to constitute a Fee and Admission Committee consisting of government officials. The court referred to various judgments including T.M.A. Pai Foundation vs. State of Karnataka, Islamic Academy of Education vs. State of Karnataka, P.A. Inamdar vs. State of Maharashtra, and Modern Dental College and Research Centre vs. State of Madhya Pradesh to highlight the legal provisions related to fee structure, profiteering, and regulatory measures. The court emphasized the freedom of institutes to fix their own fee structure but also the need for regulatory measures to prevent profiteering and capitation fees. The 2012 Act was considered regulatory in nature and in line with the observations of the Supreme Court. The court also referred to its previous directions to establish regulatory bodies to prevent unethical practices by private institutions. The judgment highlighted the importance of transparency and adherence to regulatory parameters in fee determination. The court found no illegality in the constitution of the Fee Fixation Committee and emphasized the need for a formal reply for adjudication of the issues raised in the petition.]
Fact of the Case:
The petitioners, students admitted in private medical institutions, challenged Section 7 of the 2012 Act and notifications determining fees, alleging interference with the admission process mid-stream. The court analyzed the constitutionality of Section 7, the legality of fee notifications, and the petitioners' participation in the admission process.
Finding of the Court:
The court found no illegality in Section 7 of the 2012 Act and the constitution of the Fee Fixation Committee. It noted the importance of regulatory measures to prevent profiteering and capitation fees. The court also emphasized the need for transparency and adherence to regulatory parameters in fee determination. The court acknowledged the petitioners' challenge to the notifications but required a formal reply for adjudication.
Issues: The issues involved the constitutionality of Section 7 of the 2012 Act, the legality of fee notifications, and the petitioners' participation in the admission process.
Ratio Decidendi: The court's decision was based on the interpretation of legal provisions related to fee structure, profiteering, and regulatory measures. It emphasized the need for transparency and adherence to regulatory parameters in fee determination.
Final Decision: The court stayed the retrospective operation of the fee notification and permitted the adjustment of excess fees deposited by the petitioners. It required a formal reply for adjudication of the issues raised in the petition.
ORDER
1. The forty-seven (47) petitioners are students, who have taken admission in respondent Nos. 5 to 7 private medical institutions affiliated with respondent No. 4-University, in the MBBS course from the session 2020-21. The challenge in the present petition is, inter alia, to Section 7 of Haryana Private Health Sciences Educational Institutions (Regulation of Admission, Fixation of Fee and Maintenance of Educational Standards) Act, 2012 (in short "the 2012 Act"), which permits the State Government to constitute a Fee and Admission Committee consisting of such members as may be notified by the State Government, on the ground that the same is ultra vires Article 14 and Article 19 (1) (g) of the Constitution of India. Further challenge is to the order dated 29.7.2015 (Annexure P-16/A), whereby the State of Haryana, while exercising powers under Section 7 of the 2012 Act, have constituted Fee Fixation Committee which consists only of the Government Officials as members. Since the petitioners have assailed the very constitution of the fee fixation committee, consequently, the fee determined vide notification dated 30.10.2017. The petitioners have even further assailed the Notifications dated 30.10.2017 (Annexure P-l), 29.10.2020 (Annexure P-2), 13.11.2020 (Annexure P-3) and Notification dated 29.12.2020 (Annexure P-4), whereby the fees for the private unaided medical colleges has been determined by the Fee Fixation Committee, as constituted by the State of Haryana vide order dated 29.07.2015.
2. In addition to above, the Notification dated 29.12.2020 (P-4) has been assailed on the grounds of interfering with the process of admission session 2020-21 mid-stream, as majority of the admissions had already taken place under the notification (P-4) as amended vide corrigendum dated 13.11.2020 (P-3).
3. To the extent vires of Section 7 of the 2012 Act is under challenge, prima facie, we are not impressed with the arguments so raised in support of challenge to Section 7, to the effect that comprising of only the Government Officials makes the Fee and Admission Committee illegal. The Hon'ble Supreme Court in T.M.A. Pai Foundation vs. State of Karnataka, 2002 (8) SCC 481 has held that a rational fee structure should be adopted by the management which would not include any capitation fee or intention of profiteering. The State is empowered to devise appropriate machinery so as to ensure that no capitation fee is charged and there is no profiteering by the institutions. In Islamic Academy of Education vs. State of Karnataka 2003 (6) SCC 697, case also the Hon'ble Supreme Court observed that there can be no fixing of any rigid fee structure by the Government and that each institute must have freedom to fix its own fee structure. But at the same time, it was observed that the Government/appropriate authorities should consider framing appropriate regulations, if not already framed to ensure that no profiteering or capitation fee is charged by an Institute. The committees so constituted in the Islamic Academy's case (supra) by the Hon'ble Supreme Court were only transitionary in nature, as held by the Hon'ble Supreme Court in P.A. Inamdar vs. State of Maharashtra, 2005 (6) SCC 537. In P.A. Inamdar's case (supra), it has been observed that the committees constituted in Islamic Academy's case (supra) are as an ad hoc arrangement until a suitable legislation or regulation is framed by the State. Further in paragraph 141 of P.A. Inamdar's case (supra), it has been observed that every institution is free to devise its own fee structure but the same can be regulated in the interest of preventing profiteering. Similar view has been taken in Modern Dental College and Research Centre vs. State of Madhya Pradesh, 2016 (7) SCC 353, wherein it has been observed that though no rigid fee is can be forced upon an Institute, however, the State is to act as a regulator and satisfy itself that the fee which is proposed by the educational institution does not have
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