Supreme Court Upholds Regulation of School Fees in Rajasthan — Validity of Fee Regulation Affirmed. The Court found that the provisions of the Rajasthan Schools (Regulation of Fee) Act, 2016 do not violate Article 19(1)(g) as they aim to prevent profiteering and ensure educational accessibility.

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Case Note & Summary

The Supreme Court addressed multiple appeals concerning the validity of the Rajasthan Schools (Regulation of Fee) Act, 2016, which regulated the fee structure of private unaided schools in Rajasthan. The appellants, comprising managements of these schools, challenged the Act's provisions, arguing that they infringed upon their fundamental right to autonomy in determining school fees under Article 19(1)(g) of the Constitution. The Court noted that the Act aimed to prevent profiteering and ensure that education remained accessible, especially in light of the pandemic's impact on school operations. The appellants contended that the School Level Fee Committee (SLFC) undermined their control over fee determination, as it included a majority of parents and teachers, potentially leading to conflicts of interest. The State defended the Act as a necessary regulatory measure that balanced the interests of all stakeholders, including students and parents. The Court acknowledged the need for regulation in the education sector to prevent exploitation while affirming that the autonomy of schools must be preserved. Ultimately, the Court upheld the Act, concluding that it did not violate the Constitution and served a legitimate public interest. The judgment emphasized that the right to fix fees is not absolute and can be subject to reasonable restrictions aimed at preventing commercialisation of education. The Court directed that the regulatory framework established by the Act was valid and necessary for maintaining educational standards and accessibility.

Headnote

A) Constitutional Law - Fundamental Rights - Article 19(1)(g) - Autonomy of Private Schools - The provisions of the Rajasthan Schools (Regulation of Fee) Act, 2016 do not violate the fundamental right to carry on occupation of imparting education as they are regulatory in nature aimed at preventing profiteering. The Act allows for a regulatory framework that ensures schools do not charge excessive fees while maintaining a degree of autonomy for school management (Paras 12-13).

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Issue of Consideration

Whether the provisions of the Rajasthan Schools (Regulation of Fee) Act, 2016 violate the fundamental rights of private unaided schools under Article 19(1)(g) of the Constitution.

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Final Decision

The Supreme Court upheld the Rajasthan Schools (Regulation of Fee) Act, 2016, affirming that it does not violate Article 19(1)(g) of the Constitution and serves a legitimate public interest in regulating school fees.

Law Points

  • Regulation of school fees
  • autonomy of private schools
  • Article 19(1)(g)
  • legislative competence
  • regulatory framework
  • fundamental rights
  • judicial review
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Case Details

2021 LawText (SC) (05) 41

Civil Appeal No. 1724 of 2021

2021-03-15

A.M. Khanwilkar

Pallav Shishodia, Manish Singhvi, Devadatt Kamat

Indian School, Jodhpur & Anr.

State of Rajasthan & Ors.

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Nature of Litigation

Constitutional challenge to the Rajasthan Schools (Regulation of Fee) Act, 2016.

Remedy Sought

Appellants sought to declare the Act unconstitutional and void.

Filing Reason

The Act was alleged to infringe upon the autonomy of private unaided schools in determining fees.

Previous Decisions

The High Court upheld the validity of the Act, dismissing the appellants' challenges.

Issues

Whether the Rajasthan Schools (Regulation of Fee) Act, 2016 violates Article 19(1)(g) of the Constitution. Whether the regulatory framework established by the Act is constitutionally valid.

Submissions/Arguments

Appellants argued that the Act infringes upon their autonomy to determine school fees. Respondent State contended that the Act is a necessary regulatory measure to prevent profiteering.

Ratio Decidendi

The Court held that the right to determine school fees is not absolute and can be subject to reasonable restrictions aimed at preventing profiteering and ensuring educational accessibility.

Judgment Excerpts

The provisions are regulatory in nature with the solemn object of preventing profiteering and commercialization in school education. The right flowing therefrom was not an absolute fundamental right. The impugned provisions of the Act as well as Rules are intravires of the Constitution.

Procedural History

The appeals arose from the common judgment and order of the High Court of Rajasthan, which dismissed the challenges to the validity of the Rajasthan Schools (Regulation of Fee) Act, 2016.

Acts & Sections

  • Rajasthan Schools (Regulation of Fee) Act, 2016: Sections 3, 8, 13-18
  • Right of Children to Free and Compulsory Education Act, 2009: Sections 13, 16
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