Case Note & Summary
The petitioners, Diamond Jubilee High School and its managing trust, challenged an order dated 27 November 2012 passed by the Principal Secretary (School Education and Sports Department) directing them to refund fees collected from respondent nos. 4 to 7 for the academic years 2006-07 to 2011-12 within one month. The petitioners are an unaided minority school. The respondents 4 to 7 are parents or guardians of students who had paid the fees. The Principal Secretary's order was based on a complaint that the fees were excessive. The petitioners argued that the issue was covered by a Division Bench judgment of the Bombay High Court in Association of International Schools and Principal Foundation v. State of Maharashtra (Writ Petition (L) No.1876 of 2010 decided on 1 September 2010), which held that fees charged by unaided minority schools are not subject to prior government approval and that refund cannot be ordered without a finding that the fees were capitation or excess under the Maharashtra Educational Institutions (Prohibition of Capitation Fee) Act, 1987. The court noted that the facts set out in the petition were not disputed by the respondents and that there was nothing to indicate mala fides on the part of the petitioners. The court held that the impugned order was unsustainable and quashed it, allowing the writ petition. The rule was made absolute with no order as to costs.
Headnote
A) Education Law - Fee Regulation - Refund of Fees - Maharashtra Educational Institutions (Prohibition of Capitation Fee) Act, 1987 - The Principal Secretary ordered refund of fees collected by an unaided minority school from 2006-07 to 2011-12. The High Court held that the order was unsustainable as there was no finding that the fees were capitation or excess, and the issue was covered by the Division Bench judgment in Association of International Schools and Principal Foundation v. State of Maharashtra. The court quashed the order and allowed the petition. (Paras 1-3)
Issue of Consideration
Whether the Principal Secretary had the authority to order refund of fees collected by an unaided minority school from academic year 2006-07 to 2011-12 without a finding that the fees were capitation or excess under the Maharashtra Educational Institutions (Prohibition of Capitation Fee) Act, 1987.
Final Decision
The writ petition is allowed. The impugned order dated 27 November 2012 is quashed and set aside. Rule is made absolute. No order as to costs.
Law Points
- Fees charged by unaided minority schools are not subject to prior government approval
- Refund of fees cannot be ordered without establishing that fees were capitation or excess
- Bona fide actions of school in charging fees are protected
- Division Bench precedent in Association of International Schools case applies
