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IN THE HIGH COURT OF DELHI
Jayant Nath, J.
Action Committee Unaided Recognized Private Schools - Appellant
Versus
Directorate of Education - Respondent
W.P.(C) 7526 of 2020
Decided On : 31-05-2021




Private unaided schools hold the autonomy to set fee structures; regulatory actions must stem from clear evidence of profiteering, not general circumstances like a pandemic.

Headnote:(A) Delhi School Education Act, 1973 - Sections 17(3), 18(3), 18(4), 24 - Writ petition filed to quash orders preventing collection of Annual and Development Fees during lockdown; legality of directions challenged - Court found that powers to regulate fees must not encroach private school autonomy unless there's evidence of profiteering - Previous directives noted that fee structure cannot be regulated unless schools engage in profiteering. (Paras 1 to 54, 29-30)

(B) Education law - Autonomy of private schools in fee determination is protected unless commercialized or profiting unduly - Court affirmed that schools can charge fees necessary for operational sustainability without direct governmental control - Whether fees can be charged under current pandemic restrictions demands judicial diligence to ensure non-discrimination and uninterrupted educational support (Paras 7, 40, 46).

(C) Legislative intent - Sections of the DSE Act empower regulatory authorities but entail constraints, aimed at preventing unauthorised financial exploitation of students through exorbitant fees - Restrictions on fee collection must not impinge on institutional revenue-generating capabilities under dire circumstances such as COVID. (Paras 3-6)

Findings of Court:
Respondent orders curtailing fee collection found to exceed authority based on lack of demonstrated illegalities - Petitioner schools must be allowed to charge fees as per established guidelines adjusted for pandemic realities.

Issues: Whether the directorate can legally limit fee structures under emergency situations without causing financial harm or violating fundamental rights of educational institutions?

Ratio Decidendi: Court articulated robust defense of school autonomy, allowing for reasonable fees determined by the institution, barring evidence of profiteering, while also acknowledging specific regulatory frameworks designed to prevent such exploitation.

Result: Orders dated 18.04.2020 and 28.08.2020 quashed, schools allowed to collect Annual Charges and Development Fees accordingly.

Table of Content
1. petition seeks to challenge fee collection restrictions. (Para 1 , 2 , 3)
2. respondent issues orders restricting fees during lockdown. (Para 4 , 5 , 6 , 8)
3. clarification of annual charges and development fees details. (Para 9 , 10)
4. argument against limitation of fee collection rights. (Para 11 , 12 , 13)
5. rationale for imposing restrictions highlighted. (Para 14 , 15 , 16)
6. discussion on powers of directorate of education. (Para 20 , 21 , 22)
7. legal authority of doe to regulate fees detailed. (Para 23 , 24 , 28 , 29)
8. need for schools to maintain fee structures. (Para 30 , 31 , 32)
9. court quashes the illegal orders regarding fee collection. (Para 51 , 54)

JUDGMENT

Jayant Nath, J. This writ petition is filed by the petitioner seeking an appropriate writ/writ of certiorari to quash the orders dated 18.04.2020 and 28.08.2020 passed by the respondent in so far as it prevents private unaided recognized schools/members of the petitioner association from collecting a part of the fees i.e. Annual Charges and Development Fees even beyond the Lockdown period and deferring it till physical opening of the schools.

2. The petitioner is said to be a registered association with approximately 450 private unaided schools functioning in Delhi as its members.

3. It is stated that during the present pandemic the Central Government declared a Lockdown in the entire country during the last week of March 2020 and the schools were closed down physically. However, schools were directed and encouraged to take up online teaching and learning so that there is no discontinuity in imparting education to the school children.

4. On 17.4.2020, the respondent came out with an order in purported exercise of certain non-existent powers under the Disaster Management Act 2005, Section 17 (3) of the Delhi School Education Act (hereinafter referred to as the `DSE Act') and Rule 43 of the DELHI SCHOOL EDUCATION RULES (hereinafter referred to as `The Rules'). Essentially, the said communication directed the schools that no fees except tuition fees shall be charged from the parents, till further orders.

5. On 18.04.2020, immediately thereafter a new impugned order was passed. This order was passed in supersession of the earlier order dated 17.04.2020. Relevant portion of the said order dated 18.04.2020 reads as follows:

    "Whereas, everyone is aware that the outbreak of Novel Corona Virus (COVID-19) has been declared as Pandemic by WHO and at present, it is a major threat to life and, therefore, a grave matter of concern in the country, being social emergency life situation including Delhi. India is under a 21-day Lockdown with effect from March, 24, 2020 which has been further extended upto 3rd May, 2020 and people are under strict directions to restrain from going out of their homes. Whereas, it is also a fact that in view of the spread of COVID-19, all business/professional/other activities (other than essential ones) have ceased to function as a precautionary measure to contain COVID-19 due to which, some parents, are not in a position to pay the school fee of their wards at increased rates or even at existing rates if demanded on quarterly basis in one go.

    xxxxx

    And whereas, as per the provisions, the tuition fee and annual fee charged from the students, cover all the expenditure to be Incurred on salary, establishment and curricular activities and co-curricular activities.

    Now therefore in exercise of powers conferred under Section 17 (3) of DSEA 1973 and read with Rule 43 DSEA R 1973 and under other enabling provisions of the Acts and Rules or any other, all heads/managers of private unaided recognized schools of Delhi are hereby directed as follows:

    "i. No fee, except Tuition fees will be charged from the parents during the lockdown period.

    ii. Annual and Development Charges can be charged from the parents, on pro rate basis, only on monthly basis after completion of lockdown period.

    iii. No earmarked levies such as transportati

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