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Synopsis

The Supreme Court has said any order inviting adverse civil consequences cannot be passed without adherence to the principles of natural justice, as it allowed an appeal against the order by the fee revision committee to reduce the fees without giving a hearing to the aggrieved college.

A bench of Justices BR Gavai and KV Vishwanathan held the Fee Structure Committee as well as state government cannot determine the fee structure without following the procedure, including a hearing to the affected parties, mandated under the statute.

The court set aside the orders passed by the Orissa High Court on July 6, 2023 and July 10, 2023, by allowing a plea by Srusti Academy of Management. The appeal challenged the judgment and orders passed by the Division Bench of the High Court of Orissa at Cuttack, whereby it had upheld the recommendation of December 7, 2022 of the Fee Structure Committee and the notification of December 30, 2022 issued by the State Government.

The perusal of the record revealed that respondent-Fee Structure Committee had reduced the fees that the appellant(s) could charge to the students. Top Court bench pointed out indisputably, the said revision was made without giving an opportunity of being heard to the appellants.

"It is a settled principle of law that any order inviting adverse civil consequences cannot be passed without adherence to the principles of natural justice. In any case, the relevant provision itself requires a hearing to be given to the institution(s) before a revision is made," the bench said.

It accordingly quashed and set aside the impugned judgment and orders passed by the High Court and recommendation of the respondent-Fee Structure Committee and the notification issued by the state government.

"We clarify that for the next academic session, the respondent-Fee Structure Committee as well as state government would determine the fee structure by following the procedure as set out under Sections 6 and 7 of the Orissa Professional Educational Institutions (Regulation of Admission & Fixation of Fee) Act, 2007 and the law laid down by this Court," the bench said.

Giving relief to the appellants, the court also explained that till the fees for the next academic session were redetermined, they would continue to charge the fees which existed before passing the impugned judgment and order.