Case Note & Summary
The petitioners, Sinhgad Technical Education Society and Sau Venutai Chavan Polytechnic, Pune, filed a writ petition under Article 226 of the Constitution of India challenging the calculation of penalty imposed by the Directorate of Technical Education, Maharashtra State, for admitting 150 students in the second shift for the academic year 2007-08 without obtaining approval from the All India Council for Technical Education (AICTE). The penalty was imposed under a Government Resolution dated 22.01.2007. The petitioners contended that the penalty should be calculated on the basis of fees actually collected from the students, which was Rs. 21,000/- per student, totaling Rs. 63,00,000/- for 150 students. However, the respondents calculated the penalty on the basis of fees sanctioned by the fee committee, which was higher, leading to an excess demand of Rs. 2,00,000/-. The court examined the language of the Government Resolution and found that it used the phrase 'fees collected', which means the actual fees collected by the institution, not the sanctioned fees. The court held that the penalty must be calculated on the actual fees collected. Accordingly, the court allowed the petition in part, directing the respondents to recalculate the penalty based on actual fees collected and refund the excess amount of Rs. 2,00,000/- paid by the petitioners. The court also made the rule absolute.
Headnote
A) Education Law - Penalty for Unauthorized Admissions - Calculation of Penalty - Government Resolution dated 22.01.2007 - The issue was whether penalty for admitting students without AICTE approval should be based on fees actually collected or fees sanctioned. The court held that the penalty must be calculated on the basis of fees actually collected by the institution, not the sanctioned fees, as the GR uses the phrase 'fees collected'. (Paras 1-17) B) Education Law - Refund of Excess Penalty - Writ Jurisdiction - Article 226 of the Constitution of India - The petitioners sought refund of excess penalty paid. The court directed the respondents to refund the excess amount of Rs. 2,00,000/- paid by the petitioners, as the penalty was calculated on sanctioned fees instead of actual fees collected. (Paras 1-17)
Issue of Consideration
Whether the penalty for unauthorized admissions should be calculated on the basis of fees actually collected or fees sanctioned by the fee committee.
Final Decision
The court allowed the writ petition in part, directing the respondents to recalculate the penalty based on actual fees collected and refund the excess amount of Rs. 2,00,000/- paid by the petitioners. Rule made absolute.
Law Points
- Penalty calculation
- Unauthorized admissions
- Actual fees collected
- Government Resolution
- Technical education
- AICTE approval



