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Top Court has further clarified that this decision will have prospective effect and the State Bar Councils are not required to refund the excess enrolment fees collected before the date of this judgment
The Supreme Court of India has held that State Bar Councils (SBCs) and Bar Council of India (BCI) cannot demand payment of fees other than the stipulated enrolment fee and stamp duty, if any, as a pre-condition to enrolment.
A bench of CJI DY Chandrachud and Justice JB Pardiwala has added that the SBCs cannot charge “enrolment fees” beyond the express legal stipulation under Section 24(1)(f) of the Advocates Act, 1961 as it currently stands.
Section 24(1)(f) specifically lays down the fiscal pre-conditions subject to which an advocate can be enrolled on State rolls.
"The decision of the SBCs to charge fees and charges at the time of enrolment in excess of the legal stipulation under Section 24(1)(f) violates Article 14 and Article 19(1)(g) of the Constitution", Court has held.
While clarifying that the only charges permissible at the stage of enrolment are those stipulated under Section 24(1)(f) of the Advocates Act, the bench adds,
"All other miscellaneous fees, including but not limited to, application form fees, processing fees, postal charges, police verification charges, ID card charges, administrative fees, photograph fees etc. charged from the candidates at the time of admission are to be construed as part of the enrollment fee. The fees charged under these or any similar heads cannot cumulatively exceed the enrolment fee prescribed in Section 24(1)(f)."
In May last year, Supreme Court questioned as to how much Bar Councils across the country were collecting every year under the enrollment fees paid by lawyers seeking to enroll with them.
"You cannot charge more than what the statue says", the CJI had remarked then, while referring to the Advocates Act, 1961.
Last year the Supreme Court had issued notice to the Union Government, Bar Council of India and all state bar councils in the instant plea noting that it was a "significant issue".
Court was told that the charging of enrolment fees is a violation of Section 24(1) of the Advocates Act 1961 and that the BCI has the duty to ensure that exorbitant enrolment fees is not charged.
Bench further noted that in Odisha, an enrollment fee of Rs 42,100 was charged; in Gujarat it was Rs.25,000; in Uttarakhand Rs 23,650; and in Jharkhand it was Rs 21,460.
The petition added that this discouraged young aspiring lawyers who do not have the resources to pay such fees.
Case Title: Gaurav Kumar vs. Union of India
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