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The Supreme Court Bench of Justices AM Khanwilkar & Dinesh Maheshwari has recently directed the Private Schools in Rajasthan to deduct 15% of the annual school fees in lieu of unutilised facilities/ activities & not on the basis of actual data school wise.
“In law, the school Management cannot be heard to collect fees in respect of activities and facilities which are, in fact, not provided to or availed by its students due to circumstances beyond their control. Demanding fees even in respect of overheads on such activities would be nothing short of indulging in profiteering and commercialisation. It is a well known fact and judicial notice can also be taken that, due to complete lockdown the schools were not allowed to open for a substantially long period during the academic year 202021. Resultantly, the school Management must have saved overheads and recurring costs on various items such as petrol/diesel, electricity, maintenance cost, water charges,stationery charges, etc. Indeed, overheads and operational cost so saved would be nothing, but an amount undeservedly earned by the school without offering such facilities to the students during the relevant period. Being fee, the principle of quid pro quo must come into play.”, the Bench observed.
These directions were issued in light of the appeal assailing the order dated October 28, 2020 issued by the Director, Secondary Education as per which the Board issued directions regarding charging school fees from guardians/ students for academic session 2020-21 keeping in view the CoVID pandemic.
The Court said that it assumed that at least 15 percent of the annual school fees would be towards overheads/expenses saved by the school Management. Arguendo, this assumption was on the higher side than the actual savings by the school Management of private unaided schools, yet we are inclined to fix that percentage because the educational institutions were engaged in doing charitable activity of imparting and spreading education and not making money.
“That they must willingly and proactively do. Hence, collection of commensurate amount (15 % of the annual school fees for academic year 20202021), would be a case of profiteering and commercialisation by the school Management.”, the Court further added.
Thereafter, the Bench while observing that the appellants were justified in assailing the order dated October 28, 2020 remarked that the same did not give license to the appellants to be rigid & not be sensitive about the aftermath of a pandemic.
“The school Management supposedly engaged in doing charitable activity of imparting education, is expected to be responsive and alive to that situation and take necessary remedial measures to mitigate the hardship suffered by the students and their parents. It is for the school Management to reschedule payment of school fee in such a way that not even a single student is left out or denied the opportunity of pursuing his/her education, so as to effectuate the adage live and let live.”, the Court remarked.
Further, to avoid multiplicity of proceedings including uncertainty of legal processes by over 36,000 schools in determination of annual fee structure for the academic year 202021, the Court as a one time measure to do complete justice between the parties issued the following directions:
(i) The appellants (school Management of the concerned private unaided school) shall collect annual school fees from their students as fixed under the Act of 2016 for the academic year 201920, but by providing deduction of 15 per cent on that amount in lieu of unutilised facilities by the students during the relevant period of academic year 202021.
(ii) The amount so payable by the concerned students will be paid in six equal monthly instalments before 05.08.2021 as noted in our order dated 08.02.2021.
(iii) Regardless of the above, it will be open to the appellants (concerned schools) to give further concession to their students or to evolve a different pattern for giving concession over and above those noted in clauses (i) and (ii) above.
(iv) The school Management shall not debar any student from attending either online classes or physical classes on account of nonpayment of fees, arrears/outstanding fees including the installments, referred to above, and shall not withhold the results of the examinations of any student on that account.
(v) If any individual request is made by the parent/ward finding it difficult to remit annual fees for the academic year 202021 in the above terms, the school Management to consider such representation on a case to case basis sympathetically.
(vi) The above arrangement will not affect collection of fees for the academic year 2021- 22, as is payable by
(v) If any individual request is made by the parent/ward finding it difficult to remit annual fees for the academic year 202021 in the above terms, the school Management to consider such representation on a case to case basis sympathetically.
(vi) The above arrangement will not affect collection of fees for the academic year 202122, as is payable by the students of the concerned school as and when it becomes due and payable.
(vii) The school Management shall not withhold the name of any student/candidate for the ensuing Board examinations for Classes X and XII on the ground of nonpayment of fee/arrears for the academic year 202021, if any, on obtaining undertaking of the concerned parents/students.
Case Title: Indian School, Jodhpur & Anr. V. State Of Rajasthan & Ors.| Civil Appeal No. 1724 Of 2021
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