Case Note & Summary
The dispute arose from the Andhra Pradesh Government's interim fee fixation for unaided engineering colleges for the block period 2019-2022, without following the statutory procedure under the Andhra Pradesh Educational Institutions (Regulation of Admission and Prohibition of Capitation Fee) Act, 1983 and Rule 4. The appellants, two educational institutions, had proposed fee increases for 2019-2020, but the State fixed the earlier 2016-2019 fees as an interim measure. The institutions challenged this in a writ petition, arguing it violated Rule 4, which mandates the Andhra Pradesh Fee Regulatory Committee (AFRC) to consider specific factors before fee fixation. The Single Judge suspended the interim fixation, finding a prima facie case of illegality. The Division Bench modified this order, allowing collection of old fees with a bank guarantee. The Supreme Court considered whether the Division Bench erred in interfering. The Court analyzed Rule 4's requirements and held the State's interim fixation was prima facie illegal for bypassing the statutory drill. It reasoned that the Single Judge correctly applied principles of interim relief based on prima facie case, balance of convenience, and irreparable loss. The Division Bench's modification was unjustified as it undermined the statutory framework. The Court allowed the appeals, set aside the Division Bench's order, and restored the Single Judge's order, directing that it operate until a final fee is fixed under the relevant Act and rules, noting the prospective nature of a new 2019 Act.
Headnote
A) Administrative Law - Judicial Review - Interim Orders - Andhra Pradesh Educational Institutions (Regulation of Admission and Prohibition of Capitation Fee) Act, 1983, Rule 4 - State fixed interim fee for 2019-2022 without following Rule 4 procedure - Single Judge suspended the interim fixation as prima facie illegal - Division Bench modified the order to permit collection of old fee with bank guarantee - Supreme Court held Division Bench erred in interfering, restored Single Judge's order as interim fee fixation violated statutory procedure (Paras 6-8, 11). B) Education Law - Fee Regulation - Statutory Compliance - Andhra Pradesh Educational Institutions (Regulation of Admission and Prohibition of Capitation Fee) Act, 1983, Rule 4 - Petitioners sought fee increase for 2019-2022 - Rule 4 requires AFRC to consider factors like location, infrastructure cost, and reasonable surplus - State's interim fixation bypassed this procedure - Court found interim fixation prima facie illegal and upheld suspension pending final determination (Paras 3-6, 11).
Issue of Consideration
Whether the Division Bench erred in interfering with the Single Judge's interim order suspending the State's interim fee fixation for unaided educational institutions without following the statutory procedure under the Andhra Pradesh Educational Institutions (Regulation of Admission and Prohibition of Capitation Fee) Act, 1983 and its rules
Final Decision
The Supreme Court allowed the appeals, set aside the impugned order of the Division Bench dated 08.08.2019, and restored the learned Single Judge's order dated 31.07.2019, directing it to operate until a final fee is fixed in accordance with the requisite Act and Rules
Law Points
- Interim fee fixation must follow statutory procedure
- judicial review of administrative action
- principles of prima facie case
- balance of convenience
- and irreparable loss in interim relief
