Supreme Court Allows Challenge Against Excessive Enrolment Fees by State Bar Councils — Additional Fees Beyond Section 24(1)(f) of Advocates Act Held Unconstitutional. The Court ruled that SBCs cannot impose any extra charges at enrolment, as the statutory fee is exhaustive and any additional levy violates Articles 14 and 19(1)(g).

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Case Note & Summary

The Supreme Court in this judgment addressed a challenge under Article 32 of the Constitution against the enrolment fees charged by State Bar Councils (SBCs) beyond the amount prescribed under Section 24(1)(f) of the Advocates Act, 1961. The petitioners, who were law graduates seeking enrolment as advocates, contended that SBCs were demanding additional fees such as 'registration fee', 'library fee', 'welfare fund', etc., over and above the statutory enrolment fee of Rs. 600 for SBCs and Rs. 150 for the Bar Council of India (BCI). The Court examined the legislative scheme of the Advocates Act, noting that Section 24(1)(f) prescribes the exact enrolment fee payable, with a reduced fee for SC/ST candidates. The Court held that this provision is exhaustive and that SBCs cannot levy any additional fees at the time of enrolment. The Court reasoned that the Advocates Act is a complete code and any fee charged must be authorized by the statute. The additional fees were found to be manifestly arbitrary under Article 14 and an unreasonable restriction on the right to practice any profession under Article 19(1)(g). The Court directed that SBCs shall not charge any fee beyond the prescribed enrolment fee and that any excess fees collected must be refunded. The judgment also considered the financial implications for SBCs and BCI, but held that they must manage their finances within the statutory framework.

Headnote

A) Advocates Act - Enrolment Fee - Section 24(1)(f) - Exhaustive Nature - The provision prescribing enrolment fee of Rs. 600 for SBC and Rs. 150 for BCI is exhaustive and SBCs cannot charge any additional fee at the time of enrolment. Held that the legislative scheme does not permit SBCs to levy fees beyond the express stipulation (Paras 14-21).

B) Constitutional Law - Article 14 - Manifest Arbitrariness - Charging additional fees beyond the statutory limit is manifestly arbitrary and violates substantive equality. Held that such fees are unreasonable and discriminatory (Paras 23-26).

C) Constitutional Law - Article 19(1)(g) - Unreasonable Restriction - Imposing additional fees as a precondition for enrolment unreasonably restricts the right to practice any profession. Held that the fees are not a reasonable restriction under Article 19(6) (Paras 27-28).

D) Advocates Act - Regulatory Fees - Delegated Legislation - SBCs cannot levy fees without statutory authority; any fee charged must be authorized by the Act or rules made thereunder. Held that the power to levy fees is not inherent and must be expressly conferred (Paras 9-12).

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Issue of Consideration

Whether State Bar Councils can charge enrolment fees beyond the amount prescribed under Section 24(1)(f) of the Advocates Act, 1961, and whether such additional fees violate Articles 14 and 19(1)(g) of the Constitution.

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Final Decision

The Supreme Court allowed the petition and held that State Bar Councils cannot charge any fee beyond the enrolment fee prescribed under Section 24(1)(f) of the Advocates Act, 1961. The Court directed that SBCs shall not impose any additional fees as a precondition for enrolment, and any excess fees collected must be refunded to the concerned individuals.

Law Points

  • Enrolment fee under Section 24(1)(f) of Advocates Act is exhaustive
  • State Bar Councils cannot levy additional fees at enrolment
  • Regulatory fees must be authorized by statute
  • Manifest arbitrariness under Article 14
  • Unreasonable restriction under Article 19(1)(g)
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Case Details

2024 LawText (SC) (7) 302

Writ Petition (C) No. 352 Of 2023

2024-07-30

Dr Dhananjaya Y Chandrachud, CJI

Gaurav Kumar

Union Of India and Ors

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Nature of Litigation

Constitutional challenge under Article 32 against enrolment fees charged by State Bar Councils beyond the amount prescribed under Section 24(1)(f) of the Advocates Act, 1961.

Remedy Sought

Petitioners sought a declaration that additional fees charged by SBCs at enrolment are illegal and unconstitutional, and sought refund of excess fees.

Filing Reason

State Bar Councils were charging fees such as registration fee, library fee, welfare fund, etc., in addition to the statutory enrolment fee of Rs. 600 for SBCs and Rs. 150 for BCI, which was challenged as ultra vires the Advocates Act and violative of fundamental rights.

Issues

Whether State Bar Councils can charge enrolment fees beyond the amount prescribed under Section 24(1)(f) of the Advocates Act, 1961? Whether such additional fees violate Article 14 (right to equality) and Article 19(1)(g) (right to practice any profession) of the Constitution?

Submissions/Arguments

Petitioners argued that Section 24(1)(f) is exhaustive and SBCs cannot levy any additional fee at enrolment; any such levy is ultra vires the Act and manifestly arbitrary. Respondents (SBCs) argued that they have the power to levy regulatory fees under their general functions and that the fees are necessary for their functioning and welfare of advocates.

Ratio Decidendi

The enrolment fee under Section 24(1)(f) of the Advocates Act is exhaustive and State Bar Councils have no power to levy any additional fees at the time of enrolment. Any such levy is ultra vires the Act and violates Articles 14 and 19(1)(g) of the Constitution as it is manifestly arbitrary and an unreasonable restriction on the right to practice a profession.

Judgment Excerpts

The grievance is that the fees charged by the SBCs at the time of admission of persons on State rolls are more than the enrolment fee prescribed under Section 24(1)(f) of the Advocates Act 1961. SBCs cannot charge enrolment fees beyond the mandate of Section 24(1)(f). All fees charged at the time of enrolment are ‘enrolment fees’. Charges other than the enrolment fee cannot be a valid pre-condition.

Procedural History

The proceedings were initiated under Article 32 of the Constitution by way of a writ petition challenging the enrolment fees charged by State Bar Councils. The matter was heard by a bench led by the Chief Justice of India.

Acts & Sections

  • Advocates Act, 1961: 3, 4, 6, 7, 17, 22, 24, 25
  • Constitution of India: 14, 19(1)(g), 32
  • Indian Stamp Act, 1899:
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