Case Note & Summary
The dispute arose from the fee fixation by the Admission and Fee Regulatory Committee for MBBS students in private self-financing medical colleges in Kerala. Following the Supreme Court's judgment in P.A. Inamdar & Ors. v. State of Maharashtra, the Kerala Professional Colleges Act, 2006 was enacted, later replaced by the Kerala Medical Education Act, 2017. The High Court of Kerala had previously ruled on the powers of the Committee, stating that while it could ensure fees were not exploitative, it could not arbitrarily fix fees. After the Committee's fee fixation for 2017-18 and 2018-19 was challenged, the High Court found that the Committee had not properly reconsidered the fee structure as directed in its earlier judgment. The High Court remanded the matter back to the Committee for a fresh examination of the fee proposals, emphasizing the need for a fair opportunity for the managements to present their case. The State of Kerala and students appealed against this decision, arguing that the Committee's earlier fee fixation had been upheld and that the High Court's directions were contrary to the Act. The Supreme Court, however, agreed with the High Court's view that the Committee must re-evaluate the fee proposals, ensuring compliance with the statutory requirements and principles established in previous judgments. The Court directed the Committee to expedite the reconsideration process and finalize the fee structure within three months, emphasizing that delays were detrimental to both students and institutions.
Headnote
A) Administrative Law - Fee Fixation - Jurisdiction of Regulatory Committee - Kerala Medical Education (Regulation and Control of Admission to Private Medical Educational Institutions) Act, 2017, Sections 8, 11 - The High Court held that the Committee must reconsider fee proposals afresh, ensuring they are non-exploitative and reasonable, as previous orders lacked quorum and did not follow due process. Held that the Committee must adhere to the factors outlined in Section 11 while fixing fees (Paras 8-9).
Issue of Consideration
Whether the Admission and Fee Regulatory Committee acted within its jurisdiction in fixing the fee for MBBS courses in private self-financing medical colleges.
Final Decision
The Supreme Court directed the Admission and Fee Regulatory Committee to reconsider the fee proposals for MBBS courses from 2017-18 onwards, ensuring compliance with the factors outlined in Section 11 of the Kerala Medical Education Act, 2017, and to complete the exercise within three months.
Law Points
- fee fixation
- professional education
- regulatory authority
- capitation fee
- reasonable surplus

