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2005 Supreme(All) 1031

ALLAHABAD HIGH COURT
Sabhajeet Yadav
ROYAL SOCIETY OF EDUCATIONAL ACADEMY KANPUR NAGAR
Versus
STATE OF U P
Decided On : 27 May 2005
C. M. W. P. No. 37525 of 2003

Advocates:
Amit Saxena, P.N.Saksena, S.C.TIWARI, S.M.A.Kazmi, S.N.SHUKLA,

The institutions are not enjoying absolute freedom in fixing their fee structure and charging any fees whatsoever they like on their own sweet-will, rather their freedom has to be reasonably controlled and regulated by the Committee in the light of justification provided by them on the basis of documents produced before the Committee for determination of fees to be charged by them.

Headnote:

FREEDOM OF FEE STRUCTURE - PRIVATE UNAIDED PROFESSIONAL INSTITUTIONS - [T. M. A. Pai Foundation case, Islamic Academy of Education case] - The court analyzed the Government Orders dated 15-7-2003 and 2-8-2003, which fixed the fees of students in private unaided professional colleges for the Session 2003-2004. The court found that the institutions are not enjoying absolute freedom in fixing their fee structure and charging any fees whatsoever they like on their own sweet-will, rather their freedom has to be reasonably controlled and regulated by the Committee in the light of justification provided by them on the basis of documents produced before the Committee for determination of fees to be charged by them. The court concluded that the Government Order dated 15-7-2003 fixing the amount of fees chargeable by petitioner institution from the students of M. B. B. S. and Dental Courses for Academic Session 2003-2004 with the liberty to the petitioners to place the materials before the competent Committee for charging higher fees than fixed by the aforesaid Government Order, does not call for any interference and in given facts and circumstances of the case, the court could not find any justification for interference under Article 226 of the Constitution of India.

Fact of the Case:

The petitioners challenged the Government Orders dated 15-7-2003 and 2-8-2003, whereby the Government had fixed the fees of the students in private unaided professional colleges for the Session 2003-2004. The petitioners, a registered society, established a Private Dental College, Rama Dental College Hospital and Research Centre, Lakhanpur, Kanpur Nagar. The institution does not receive any aid from the Government, it is a private unaided institution. The State Government had purported to fix fees for free and payment seats for different professional courses run by different private professional colleges. The present cause of action arose on account of the aforesaid Government orders issued by the State Government appears to be on directions issued by the Honble apex Court in the decision of the Constitution Bench of eleven Judges rendered in T. M. A. Pai case dated 31-10-2002 since reported in 2002 (2) LBESR 933 (SC ).

Finding of the Court:

The court found that the Government Order dated 15-7-2003 fixing the amount of fees chargeable by petitioner institution from the students of M. B. B. S. and Dental Courses for Academic Session 2003-2004 with the liberty to the petitioners to place the materials before the competent Committee for charging higher fees than fixed by the aforesaid Government Order, does not call for any interference and in given facts and circumstances of the case, the court could not find any justification for interference under Article 226 of the Constitution of India.

Ratio Decidendi: The institutions are not enjoying absolute freedom in fixing their fee structure and charging any fees whatsoever they like on their own sweet-will, rather their freedom has to be reasonably controlled and regulated by the Committee in the light of justification provided by them on the basis of documents produced before the Committee for determination of fees to be charged by them.

Final Decision: The court dismissed the petition and there shall be no order as to costs.

SABHAJEET YADAV, J.

By this petition the petitioners have challenged the Government Orders dated 15-7-2003 (Annexure-2) and 2-8-2003 (Annexure-3), whereby the Government had fixed the fees of the students in private unaided professional colleges for the Session 2003-2004. Petitioner No. 1 is a registered society, which established a Private Dental College, petitioner No. 2, namely, Rama Dental College Hospital and Research Centre, Lakhanpur, Kanpur Nagar. The petitioner No. 2 is an institution established after necessary permissions from different authorities including Dental Council of India. The same is duly recognised and is affiliated to Dr. B. R. Ambedkar University, Agra. The institution does not receive any aid from the Government, it is a private unaided institution.

2. It is stated that under the scheme framed by the Honble Supreme Court in J. P. Unni Krishnans case reported in AIR 1993 SC 2178, 50% seats were free seats, 35% seats were payment seats and 15% seats were NRI/management quota seats and the petitioner-institution like all other private professional colleges fixed different fee structure for different categories of seats. The fee structure fixed by the institution was submitted to the State Government demonstrating that the petitioners has fixed their fee structure strictly in accordance with the scheme laid down in Unni Krishnans case and that the petitioners were not charging any capitation fee. In the year 1997 the State of Uttar Pradesh without considering any material facts, purported to fix fees for free and payment seats for different professional courses run by different private professional colleges. Petitioner No. 2 challenged this fixation of fee by the State Government vide order dated 27-9-1997 by filing Writ Petition No. 35610 of 1997 and this Court vide its order dated 22-5-1998 stayed the operation of the order dated 27-9-1997 fixing the fees by the State Government. The aforesaid writ petition is pending and the stay order dated 22-5-1998 is continuing. Since the fixing of fees by the State Government vide order dated 27-9-1997 had been stayed by this Court, petitioner institution as well as other similarly situated private professional institutions continued to submit their fee structure every year, the candidates were selected by respondent No. 2 for admission on free and payment seats on the basis of common entrance test were allotted to the petitioners, who were admitted year to year and paid the fees according to the fee structure of petitioner institution.

3. The present cause of action arose on account of the aforesaid Government orders issued by the State Government appears to be on directions issued by the Honble apex Court in the decision of the Constitution Bench of eleven Judges rendered in T. M. A. Pai case dated 31-10-2002 since reported in 2002 (2) LBESR 933 (SC ). The State Government purporting to act in compliance of the law laid down by the Honble Supreme Court, issued Government Order dated 15-7-2003 and in this Government Order it provided that the earlier scheme of free and payment seats in self financed Medical and Dental Colleges is abrogated from the Session 2003-2004 and provided that 75% of the seats in the institution shall be filled up on the basis of CPMT Examination conducted by the State Government on the basis of merit in conformity with the reservation policy of State Government while 25% seats shall be filled up by the Management of the institution according to merits in a transparent selection procedure. It further provided that for Dental Colleges maximum fees of Rs. 1,10,000/- has been fixed for each student per year from Session 2003-2004. It further provided that these professional colleges shall not charge any fees in excess of the fees fixed by the Government and in case any institution wants to charge higher fees, it shall submit its proposal alongwith justification for the same alongwith relevant records before the permanent committee set up by t




















































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