Supreme Court Upholds Fee Structure for Professional Education Amidst Controversy Over Midstream Changes. The court emphasized that fees determined at the commencement of the course cannot be varied midstream, ensuring certainty for students and parents.

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Case Note & Summary

The dispute arose from the fee structure for professional education at Dr. B.C. Roy Engineering College, a self-financing institution in West Bengal. The West Bengal Joint Entrance Examinations (WBJEE) for admissions to engineering colleges was conducted on 30.04.2023, with results declared on 26.05.2023. Students were admitted to the college for the 2023-27 cohort, with a fee structure outlined in the prospectus. However, on 16.10.2023, the State Government issued a notification revising the upper ceiling of fees, allowing an increase to ₹1,10,000 per annum. This notification was applicable from the 2023-24 academic year. The college subsequently revised its fee structure, leading to a 37.5% increase in fees, which aggrieved the students. They filed writ petitions challenging the legality of the revised fee structure. The High Court initially dismissed the petitions, but a Division Bench later found that the fee structure should not change midstream for students already admitted. The court emphasized the need for certainty in fee structures and the role of regulatory bodies in fee fixation. The Supreme Court upheld the High Court's decision, reinforcing the importance of timely fee determination and the need for regulatory committees to function effectively. The court directed that any additional fees collected from students admitted before the notification should be refunded or adjusted against future fees. The judgment underscored the balance between the interests of students and the financial viability of educational institutions.

Headnote

A) Education Law - Fee Structure - Midstream Fee Changes - All India Council for Technical Education (Norms and Guidelines for Fees and Guidelines for Admission in Professional Colleges) Regulations, 1994 - The court upheld that fees determined at the commencement of the course cannot be varied midstream, emphasizing the need for certainty in financial obligations for students and parents. The decision highlighted the balance between institutional needs and student interests, directing that fee fixation committees must operate efficiently (Paras 2, 18-34).

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Issue of Consideration

Whether fee payable for professional education through self-financing Higher Education Institutions can be changed midstream.

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Final Decision

The Supreme Court upheld the High Court's decision, stating that the revised fee structure could not apply to students admitted before the notification date. It directed that any additional fees collected from these students should be refunded or adjusted against future fees.

Law Points

  • fee fixation
  • self-financing institutions
  • regulatory bodies
  • AICTE Regulations
  • contractual obligations
  • equity and estoppel
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Case Details

2026 LawText (SC) (10) 52

Civil Appeal No. of 2026

2026-03-23

2026 SCC OnLine SC 1120

Mr. Jaideep Gupta, Mr. Harin Raval, Mr. Rauf Rahim, Mr. Sanjay R. Hegde

Dr. B.C. Roy Engineering College

The State of West Bengal

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Nature of Litigation

Challenge to revised fee structure for professional courses

Remedy Sought

Rollback of revised fee structure

Filing Reason

Aggrieved students filed writ petitions against fee hike

Previous Decisions

High Court initially dismissed petitions, later reversed by Division Bench

Issues

Legality of midstream fee changes Applicability of revised fee structure to already admitted students

Submissions/Arguments

Students argued that the fee hike violated AICTE Regulations College contended that the fee structure was subject to government changes

Ratio Decidendi

The court emphasized that fees determined at the commencement of the course cannot be varied midstream, ensuring certainty for students and parents while balancing the interests of educational institutions.

Judgment Excerpts

The question for our consideration is whether fee payable for professional education through self-financing Higher Education Institutions can be changed midstream. We have held that determination of the fee payable for professional education involves balancing of two legitimate interests. The revised fee structures published in terms of the impugned Notification are hereby quashed and set aside to the limited extent insofar as those apply to the students of such colleges whose admission process stood concluded before October 16, 2023.

Procedural History

The students filed writ petitions before the Calcutta High Court challenging the revised fee structure. The High Court dismissed the petitions, leading to appeals before a Division Bench, which found in favor of the students. The Appellant-College then appealed to the Supreme Court.

Acts & Sections

  • All India Council for Technical Education (Norms and Guidelines for Fees and Guidelines for Admission in Professional Colleges) Regulations: Regulation 7
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