Case Note & Summary
The petitioners, St. Mary's High School (SSC Section) and The Bombay St. Mary's Society, filed a writ petition challenging two directions in an order dated 28 February 2012 passed by the Director of Education (Respondent No.2). The first direction required the school to refund a sum of Rs.145.71 crores, and the second directed the school to make available required toilets within six months on all floors of the school building. The petitioners also challenged certain remarks in an inspection report of the Accountant General (Respondent No.3), but this challenge was not pressed after the Accountant General clarified that the remarks were only a narration of allegations by the Education Department and not findings. The school has two sections: an ICSE section started in 1864 and an SSC section established in 1932. The SSC section runs a pre-primary school (kindergarten), a primary school (standards I to IV), and a secondary school (standards V to X). The kindergarten and pre-primary schools are unaided, while the secondary school is aided. The impugned order pertains to the secondary school. The court examined whether the Director of Education had the power to order a refund of fees collected prior to the issuance of a government resolution fixing fees. The court held that the Director lacks such power under the Maharashtra Educational Institutions (Prohibition of Capitation Fee) Act, 1987, as fee fixation cannot be retrospective without specific statutory provision. The court quashed the refund direction but did not interfere with the direction regarding toilets. The petition was partly allowed.
Headnote
A) Education Law - Fee Regulation - Refund of Fees - Maharashtra Educational Institutions (Prohibition of Capitation Fee) Act, 1987 - Sections 4, 5, 6 - The Director of Education ordered the petitioner school to refund Rs.145.71 crores collected as fees prior to a government resolution fixing fees. The court held that the Director has no power to order refund of fees collected before the resolution, as fee fixation cannot be retrospective without specific statutory provision. The Act does not authorize such refund. (Paras 1-10) B) Education Law - Inspection Report - Evidentiary Value - The petitioner challenged remarks in the Accountant General's inspection report. The Accountant General clarified that the remarks were only a narration of allegations by the Education Department and not findings. In view of this clarification, the challenge was not pressed. (Para 2) C) Education Law - Toilet Facilities - Direction to Provide - The Director of Education directed the school to provide required toilets within six months. The court did not quash this direction, implying it was within the Director's power. (Para 2)
Issue of Consideration
Whether the Director of Education has the power to order a school to refund fees collected prior to the issuance of a government resolution fixing fees, and whether such a direction is valid under the Maharashtra Educational Institutions (Prohibition of Capitation Fee) Act, 1987.
Final Decision
The court quashed the direction to refund Rs.145.71 crores, holding that the Director of Education lacks power to order refund of fees collected prior to the government resolution. The direction regarding toilets was not interfered with. The petition was partly allowed.
Law Points
- Director of Education lacks power to order refund of fees collected prior to government resolution
- fee fixation cannot be retrospective without statutory authority
- inspection report remarks not findings if clarified by authority
