Full Judgment Text
IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
WRIT PETITION(C) NO. 358 OF 2004
MODERN DENTAL COLLEGE & RESEARCH
CENTRE & ORS.
.....PETITIONERS
Versus
STATE OF MADHYA PRADESH & ORS. .....RESPONDENTS
WITH
W.P.(C) NO.261/2004 W.P.(C) NO.441/2004
W.P.(C) NO.265/2004 W.P.(C) NO.442/2004
W.P.(C) NO.359/2004 W.P.(C) NO.443/2004
W.P.(C) NO.360/2004 W.P.(C) NO.445/2004
W.P.(C) NO.361/2004 W.P.(C) NO.446/2004
W.P.(C) NO.362/2004 W.P.(C) NO.447/2004
W.P.(C) NO.363/2004 W.P.(C) NO.448/2004
W.P.(C) NO.380/2004 W.P.(C) NO.449/2004
W.P.(C) NO.386/2004 W.P.(C) NO.450/2004
W.P.(C) NO.397/2004 W.P.(C) NO.451/2004
W.P.(C) NO.416/2004 W.P.(C) NO.452/2004
W.P.(C) NO.421/2004 W.P.(C) NO.453/2004
W.P.(C) NO.422/2004 W.P.(C) NO.454/2004
W.P.(C) NO.424/2004 W.P.(C) NO.455/2004
W.P.(C) NO.427/2004 W.P.(C) NO.456/2004
W.P.(C) NO.428/2004 W.P.(C) NO.457/2004
W.P.(C) NO.430/2004 W.P.(C) NO.458/2004
W.P.(C) NO.436/2004 W.P.(C) NO.459/2004
W.P.(C) NO.437/2004 W.P.(C) NO.304/2005
W.P.(C) NO.438/2004 W.P.(C) NO.309/2005
W.P.(C) NO.439/2004 W.P.(C) NO.462/2004
W.P.(C) NO.440/2004
AND
C.A.No.7969-7971/2004
C.A.No.7972/2004
C.A.No.7973/2004
C.A.No.7974/2004
C.A.No.7975/2004
C.A.No.7995/2010 [Arising out of SLP(C)No.13448/2007]
O R D E R
R.V. RAVEENDRAN J.
Leave granted in SLP(C) No.13448/2007.
Issue involved in the writ petitions
2. The petitioners in these writ petitions are all private
unaided professional colleges in Madhya Pradesh. Though
various questions were raised in these writ petitions,
during arguments, parties agreed that the only issue that
now survives for consideration in these writ petitions is
the question of fee structure in regard to medical, dental
and other health related professional institutions in Madhya
Pradesh for the years 2003-04 and 2004-05.
3. The other issues that were raised in the writ petitions
related to (i) right of Association of private unaided
colleges to have a separate common entrance test for
admissions; (ii) validity of the order of the State
Government fixing the management quota as 50%; (iii)
validity of the order of the State Government directing the
unaided colleges to admit students according to the merit on
the common entrance test conducted by the State Government;
(iv) validity of the Rules regarding the conduct of common
entrance test and validity of the guidelines by the
Admission Committee regarding admissions. Prayers relating
to these issues have now become infructuous and redundant on
account of either passage of time, or account of other laws
being made replacing the rules/guidelines challenged or on
account of the clarification of various issues of this Court
in PA Inamdar vs. State of Maharashtra – 2005 (6) SCC 537.
Facts and issues in the Civil Appeals
4. One Nidhi Bhargava approached the Madhya Pradesh High
Court inter alia contending that she had been allotted a
merit seat by the State Government and the college to which
she was allotted, namely RD Gardi Medical College, Ujjain
was asking for a caution money in addition to the fee
prescribed which was impermissible. In the said petition,
the High Court made an order dated 15.9.2003, directing R D
Gardi Medical College to give admission to the petitioner
therein by applying the state fee structure. On an
application for clarification of the order dated 15.9.2003
made in the said writ petition, the High Court issued an
interim order dated 26.9.2003 directing that no institution
shall charge more fees than what was stipulated by the state
government subject to revision by the state government for
the academic year 2003-04 and that no institution shall
charge any capitation fee. In the said proceedings, the
High Court made a further interim order dated 29.9.2003, the
operative portion of which is extracted below:
“6. After a long debate a broad consensus was arrived
at before us, to pass directions as interim measures
pending final disposal of the present applications. We
proceed to enumerate them as under: This direction is
applicable to the four private management institutions
mentioned in the paragraph.
(a) 12 seats which are available in the R.D. Gardi
Medical College, Ujjain shall be filled up from the
Government quota on the basis of the fee structure
prescribed by the State Government. The management
would be at liberty to collect the caution money of
Rs.60,000/- as 38 students have already paid the same.
However, if the students do not come forward to take
admission tomorrow, i.e. on 30.9.2003 the seats shall
be filled up by the management quota only after
obtaining the leave of the court.
(b) The students who have already taken the admission
and who are going to take admission would give
necessary undertaking in all cases that if eventually
the fee structure is enhanced they would abide by the
same and made good the same.
(c) As the State Government has fixed the fee at
Rs.38,500/- the State shall issue letters to the
institutions as the counter guarantee to make good the
amount to the institutions in case the students who
have taken the admission do not pay the enhanced fee.
(d) The management through its counsel undertaken that
if after due inspection the fee structure is submit it
shall return the amount to the students concerned in
the management quota.
(e) The aforesaid directions would be without
prejudice to the contentions raised in course of final
hearing of the matters.”
By a further interim order dated 7.10.2003, the High Court
also issued certain direction regarding admission to
students to state quota seats in medical and dental
colleges.
5. The said orders dated 26.9.2003, 29.9.2003 and
7.10.2003 passed by the High Court are challenged by the
several colleges in C.A. Nos.7969-7971/2004, 7972/2004,
7973/2004 and 7974/2004. Being aggrieved by that part of the
order dated 29.9.2003, which directs the State Government to
issue letters to the colleges by way of counter guarantee
undertaking to make good the amount to the institution in
case the students who take admission do not pay the enhanced
fee that may be ultimately fixed (as the State had fixed the
fee at Rs.38,500/-, the State Government has filed CA No.
7975/2004).
6. The last Civil Appeal (arising out of SLP(C)
No.13448/2007) is filed by R.D. Gardi Medical College
challenging the order dated 27.4.2007 in W.P. No.219/2005
challenging the fixation of fee at Rs.38,500/- for the year
2003-04 in regard to students directed to be admitted to
free seats in MBBS and BDS course.
Re: Fee Structure for 2003-04 and 2004-05
7. An eleven Judge Bench of this Court in T.M.A. Pai
Foundation & Ors. Vs. State of Karnataka & Ors - (2002) 8
SCC 481 held that the Scheme framed by this Court in Unni
Krishnan Vs. State of Andhra Pradesh & Ors - (1993) 1 SCC
645 in regard to admissions and fixation of fees was
unreasonable, invalid and unconstitutional. This Court held
that it would be unfair to apply the rules and regulations
regulating admissions and fee structure in the case of aided
professional institutions, to unaided professional
institutions. This Court also held that the managements of
unaided professional institutions were entitled to autonomy
in administration but at the same time bound to follow the
principle of merit; and that they should adopt a rational
fee structure but will not be entitled to charge any
capitation fee. In Unni Krishnan , this Court had evolved a
Scheme of 50% free seats and 50% payment seats for admission
to professional colleges. The State Governments and the
colleges were following the Unni Krishnan scheme for about a
decade. In view of the decision in TMA Pai Foundation , it
became necessary to reconsider and re-adjudicate the
question of admissions and fee structure as various state
governments and educational institutions understood the
decision in TMA Pai Foundation, in different perspectives.
Consequently various issues arising therefrom were
considered by a Constitution Bench of this Court in Islamic
Academy of Education & Ors. Vs. State of Karnataka & Ors. ,
(2003) 6 SCC 697 so as to clarify any doubts/anomalies
arising from diverse interpretations. In regard to the
question whether educational institutions are entitled to
fix their own fee structure and what should be the factors
to be taken note of for fixing the fee, this Court held as
under:
“There can be no fixing of a rigid fee structure by
the government. Each institute must have the freedom
to fix its own fee structure taking into consideration
the need to generate funds to run the institution and
to provide facilities necessary for the benefit of the
students. They must also be able to generate surplus
which must be used for the betterment and growth of
that educational institution. In paragraph 56 of the
judgment (in TMA Pai Foundation) it has been
categorically laid down that the decision on the fees
to be charged must necessarily be left to the private
educational institutions that do not seek and which
are not dependent upon any funds from the Government.
Each institute will be entitled to have its own fee
structure. The fee structure for each institute must
be fixed keeping in mind the infrastructure and
facilities available, the investments made, salaries
paid to the teachers and staff, future plans for
expansion and/or betterment of the institution etc. Of
course there can be no profiteering and capitation
fees cannot be charged. It thus needs to be emphasized
that as per the majority judgment imparting of
education is essentially charitable in nature. Thus
the surplus/profit that can be generated must be only
for the benefit/use of that educational institution.
Profits/surplus cannot be diverted for any other use
or purpose and cannot be used for personal gain or for
any other business or enterprise. As, at present, mere
are statutes/regulations which govern the fixation of
fees and as this Court had, not yet considered the
validity of those statutes/regulations, we direct that
in order to give effect to the judgment in TMA PAI's
case the respective State Governments concerned
authority shall set up, in each State, a committee
headed by a retired High Court judge who shall be
nominated by the Chief Justice of that State. The
other member, who shall be nominated by the Judge,
should be a Chartered Accountant of repute. A
representative of the Medical Council of India (in
short 'MCI') or the All India Council for Technical
Education (in short 'AICTE'), depending on the type of
institution, shall also be a member. The Secretary of
the State Government in charge of Medical Education or
Technical Education, as the case may be, shall be a
member and Secretary of the Committee. The Committee
should be free to nominate/co-opt another independent
person of repute, so that total number of members of
the Committee shall not exceed five. Each educational
Institute must place before this Committee, well in
advance of the academic year, its proposed fee
structure. Along with the proposed fee structure all
relevant documents and books of accounts must also be
produced before the committee for their scrutiny. The
Committee shall then decide whether the fees proposed
by that institute are justified and are not
profiteering or charging capitation fee. The Committee
will be at liberty to approve the fee structure or to
propose some other fee which can be charged by the
institute. The fee fixed by the committee shall be
binding for a period of three years, at the end of
which period the institute would be at liberty to
apply for revision. Once fees are fixed by the
Committee, the institute cannot charge either directly
or indirectly any other amount over and above the
amount fixed as fees. If any other amount is charged,
under any other head or guise e.g. donations the same
would amount to charging of capitation fee. The
Governments/appropriate authorities should consider
framing appropriate regulations, if not already,
framed, whereunder if it is found that an institution
is charging capitation fees or profiteering that
institution can be appropriately penalised and also
face the prospect of losing its recognition/
affiliation.”
8. As the judgment was rendered on 14.8.2003, the
principles laid down therein could be applied only for the
academic year 2004-05 onwards. This is also evident from the
fact that in paragraph 21 of the judgment, this Court
observed that in so far as the academic year 2003-04 was
concerned, time was running out as the outer time limit for
admissions had elapsed and there should be an ad hoc
arrangement for that year. It can, therefore, be inferred
that whatever was stated with reference to academic year
2003-04 in Islamic Academy , was only intended to be an adhoc
arrangement. Be that as it may.
9. The State Government, by circular memorandum dated
3.7.2003 fixed the tuition fees for Graduate and Post
Graduate courses for academic session 2003-04 in private and
Government Medical, Dental, Nursing, Ayurveda, Unani and
Homeopathic Colleges as follows:
| S.<br>No. | Name of the<br>Institution | Free Seats<br>Rs. | Payment<br>Seats<br>Rs. | NRI<br>Seats<br>(In US<br>Dollars) |
|---|---|---|---|---|
| 1. | Autonomous Medical<br>and Dental Colleges | 35000 | 1,50,000 | 10000 |
| 2. | Medical and Dental<br>College established<br>in Private Sector | 38500 | 1,65,000 | 12000 |
| 3. | Autonomous Nursing<br>college (B.Sc.)<br>course | 10000 | 50000 | - |
| 4. | Nursing Colleges of<br>private sector | 11000 | 55000 | - |
| 5. | Govt. Autonomous<br>Private/Ayurveda,<br>Unani, Homeopathy<br>College | 11000 | 25300 | 3600 |
| 6. | Autonomous<br>Medical/Dental<br>College | Diploma - 40000<br>Post Graduate<br>Degree - 45000 |
By subsequent memorandum dated 8.9.2003, the State
Government fixed the fee as Rs.38,500/- for free seats and
Rs.1,65,000/- for payment seats (and US $ 12000 for NRI
quota seats) in regard to three unaided private dental
colleges in the State (that is School of Dental Science,
Indore, Modern Dental College, Indore and RKDF Dental
College, Bhopal) and one unaided private medical college (RD
Gardi Medical College, Ujjain).
10. Some of the colleges gave representations to the State
Government for increasing the fees. They contended that if
the fee structure was calculated on the basis of principles
laid down in Islamic Academy (extracted above), their fee
structure should be much higher. They also requested that
the matters be referred to a Fee Fixation Committee headed
by a retired High Court Judge.
11. The State Government, by order dated 4.11.2003
appointed a Committee presided over by a retired High Court
Judge for Fixation of Fees for Professional Institutions.
The said Committee called upon the colleges to supply the
information that is referred to in the judgment of this
Court in Islamic Academy in regard to fixation of fees. Only
the medical college and the dental colleges responded. Other
colleges did not respond. In the circumstances, the
Committee announced a public hearing with reference to
fixation of fee. It also gave detailed instructions as to
how the data should be furnished for the purpose of
determination of fees. It gave personal hearing to all those
who were present.
12. Thereafter by order dated 31.5.2004, the Fee Fixation
Committee fixed the fee for three academic sessions that is
2004-05 to 2006-07 with an observation that the fees fixed
may also be applied to academic session 2003-04 in regard to
the medical and dental colleges as per the directions of the
High Court. It fixed the following fee structure:
| Name of<br>College | Tuition<br>Fee | Educational<br>Fees | Student<br>Funds | Caution Money<br>(one time<br>deposited) | Hostel<br>Fees | |
|---|---|---|---|---|---|---|
| College | Hostel | |||||
| R D Gardi<br>Medical,<br>Ujjain | 164000/<br>- | - | 1000/- | 25000/- | 1200/- | 6000/- |
| College of<br>Dental<br>Science,<br>Rau, Indore | 146000/<br>- | - | 1000/- | 10000/- | 1200/- | 6000/- |
| Other<br>Dental<br>Colleges | 112000/<br>- | - | 1000/- | 10000/- | 1200/- | 6000/- |
| Nursing<br>Colleges | 48000/- | - | 1000/- | 5000/- | 1200/- | 6000/- |
| Ayurvedic<br>Colleges | 52000/- | 2000/- | 1000/- | 5000/- | 1200/- | 6000/- |
| Homeopathic<br>Colleges | 22000/- | 2000/- | 1000/- | 5000/- | 1200/- | 6000/- |
| Unani<br>Colleges. | 42000/- | 2000/- | 1000/- | 1000/- | 1200/- | 6000/- |
The Fee Fixation Committee also clarified that the
institutions will not be entitled to charge any fee other
than what has been fixed by it. What is significant to be
noted in the said order is that except in the case of
R.D.Gardi Medical College, Ujjain, and College of Dental
Sciences, Rau, Indore, the fee fixed by the Fee Fixation
Committee was uniformly applicable for all colleges in a
particular discipline, that is one rate of fee for all
Dental Colleges, one rate for all Nursing Colleges, one rate
of fee for all Ayurvedic Colleges, one rate of fee for all
Homeopathic Colleges and one rate of fee for all Unani
Colleges. As per the said order dated 31.5.2004, the fees
determined were applicable both in regard to management
quota seats and State quota seats.
13. By another order dated 15.7.2004, the Fee Fixation
Committee made certain modifications to the order dated
31.5.2004 and also made it clear that the fee fixation by
order dated 31.5.2004 was only an interim arrangement
pending final determination. The Committee made it clear
that it would examine the matter of fixation of fees in
further detail and pass final orders regarding the fees
subsequently.
14. However, in spite of Fee Fixation Committee clarifying
in its order dated 15.7.2004 that the fee fixation made in
its order dated 31.5.2004 was only an interim arrangement,
the State Government issued an order dated 10.12.2004
finally fixing the following fees for the year 2003-04 for
the State quota seats and the management quota seats in
regard to one unaided private medical college and five
unaided private dental colleges:
| Sl.No. | Name of the<br>Institution | State quota<br>seats | Management<br>quota seats |
|---|---|---|---|
| 1 | RD Gardi Medical<br>College, Ujjain | Rs.38,500/- | Rs.1,64,000/- |
| 2 | College of Dental<br>Science, Rau, Indore | Rs.38,500/- | Rs.1,46,000/- |
|---|---|---|---|
| 3 | Modern Dental College,<br>Indore | Rs.38,500/- | Rs.1,12,000/- |
| 4 | RKDF Dental College,<br>Bhopal | Rs.38,500/- | Rs.1,12,000/- |
| 5 | Maharana Pratap Dental<br>College, Gwalior | Rs.38,500/- | Rs.1,12,000/- |
| 6 | People’s College of<br>Dental Science and<br>Research Center,<br>Bhopal | Rs.38,500/- | Rs.1,12,000/- |
What was determined by the Fee Fixation Committee as a
uniform interim fee fixation without any distinction between
the State quota seats and management quota seats was thus
adopted by the said government order dated 10.12.2004 as
final fee fixation for management quota seats only. In
regard to State quota seats, an uniform fee of Rs.38,500/-
was fixed by the State. No reasons were assigned for either
of the decisions.
15. In these writ petitions, this court on 10.8.2004 issued
an interim direction that the fees prescribed by the
Committee shall prevail for the time being though
provisional and it would be open to the Colleges to take an
undertaking from the students that in case higher fee is
payable, they will pay the same.
16. Thereafter, the matter again came up before the Fee
Fixation Committee and it made an order dated 9.3.2005
stating that it did not propose to make any fee fixation for
the year 2003-04, as this Court in Islamic Academy did not
confer jurisdiction on the Fee Fixation Committee to decide
the fee structure for 2003-04. However, in regard to the
year 2004-05 and subsequent years, the Fee Committee held
that it has the jurisdiction to decide the fee structure.
17. The position emerging from the above orders may be
summarized thus:
(i) The Fee Fixation Committee prescribed the same fee
structure for the State quota seats and the management quota
seats by order dated 31.5.2004, as an interim measure by its
order dated 31.5.2004, pending final determination.
(ii) The state government however applied different fee
structures for the State quota seats and management quota
seats, as per its order dated 10.12.2004, without assigning
any reasons.
(iii) As far as academic year 2003-04 is concerned, there
was no adjudicatory determination either by the Fee
Committee or by any Court or by the State Government which
could be considered as final. There is, however, a fee
fixation by the Government by its order dated 10.12.2004 for
the year 2003-04 which is not supported by any reasons.
(iv) In regard to State quota seats, there is absolutely no
basis or reasoning to show how a lesser annual fee of
Rs.38,500/- was arrived at as the annual fee. Even in regard
to management quota seats, the determination is by adopting
the interim fee arrangement made by the Fee Fixation
Committee, as final determination.
18. Therefore, it follows that as far as 2003-04 is
concerned there is no legally valid or binding fee fixation.
The fixation of fee involves examination of various
accounting aspects with reference to principles/guidelines
given in Islamic Academy and Inamdar (supra). It can be done
only by a Fee Fixation Committee by giving due opportunity
to the concerned colleges and after hearing the State
Government. Such a determination of fee becomes necessary in
regard to the year 2003-04. In the circumstances, the
Government order dated 10.12.2004 fixing the fee for 2003-04
has to be considered only as an interim arrangement pending
final determination by the Fee Fixation Committee.
19. In so far as the academic year 2004-2005 is concerned,
the position is not much different. As noticed above, the
determination by the order dated 31.5.2004 was also
provisional, purely as an interim measure. There is no
subsequent order of the Fee Fixation Committee fixing the
fee for 2004-05. We are, therefore, of the view that for the
2004-05 also, the fixation of fee has to be done by a Fee
Fixation Committee after examining the various aspects and
after hearing the State Government and the colleges.
20. We may at this stage notice two subsequent
developments. The first is that this Court in P.A. Inamdar
(supra, decided on 12.8.2005) reiterated the direction in
Islamic Academy of Education for constitution of Fee
Fixation Committees to deal with fee structure. This Court
held as follows:
“139. To set up a reasonable fee structure is also a
component of "the right to establish and administer
an institution" within the meaning of Article 30(1)
of the Constitution, as per the law declared in Pai
Foundation. Every institution is free to devise its
own fee structure subject to the limitation that
there can be no profiteering and no capitation fee
can be charged directly or indirectly, or in any form
(Paras 56 to 58 and 161 [Answer to Q.5(c)] of Pai
Foundation are relevant in this regard).
141. Our answer to Question-3 is that every
institution is free to devise its own fee structure
but the same can be regulated in the interest of
preventing profiteering. No capitation fee can be
charged.
144. The two Committees for monitoring admission
procedure and determining fee structure in the
judgment of Islamic Academy, are in our view,
permissive as regulatory measures aimed at protecting
the interest of the student community as a whole as
also the minorities themselves, in maintaining
required standards of professional education on non-
exploitative terms in their institutions. Legal
provisions made by the State Legislatures or the
scheme evolved by the Court for monitoring admission
procedure and fee fixation do not violate the right
of minorities under Article 30(1) or the right of
minorities and non-minorities under Article 19(1)(g).
They are reasonable restrictions in the interest of
minority institutions permissible under Article 30(1)
and in the interest of general public under Article
19(6) of the Constitution.
145. The suggestion made on behalf of minorities and
non-minorities that the same purpose for which
Committees have been set up can be achieved by post-
audit or checks after the institutions have adopted
their own admission procedure and fee structure, is
unacceptable for the reasons shown by experience of
the educational authorities of various States. Unless
the admission procedure and fixation of fees is
regulated and controlled at the initial stage, the
evil of unfair practice of granting admission on
available seats guided by the paying capacity of the
candidates would be impossible to curb.
146. Non-minority unaided institutions can also be
subjected to similar restrictions which are found
reasonable and in the interest of student community.
Professional education should be made accessible on
the criterion of merit and on non-exploitative terms
to all eligible students on an uniform basis.
Minorities or non-minorities, in exercise of their
educational rights in the field of professional
education have an obligation and a duty to maintain
requisite standards of professional education by
giving admissions based on merit and making education
equally accessible to eligible students through a
fair and transparent admission procedure and on a
reasonable fee-structure.
147. In our considered view, on the basis of judgment
in Pai Foundation and various previous judgments of
this Court which have been taken into consideration
in that case, the scheme evolved of setting up the
two Committees for regulating admissions and
determining fee structure by the judgment in Islamic
Academy cannot be faulted either on the ground of
alleged infringement of Article 19(1)(g) in case of
unaided professional educational institutions of both
categories and Article 19(1)(g) read with Article 30
in case of unaided professional institutions of
minorities.
148. A fortiori, we do not see any impediment to the
constitution of the Committees as a stopgap or adhoc
arrangement made in exercise of the power conferred
on this Court by Article 142 of the Constitution
until a suitable legislation or regulation framed by
the State steps in. Such Committees cannot be equated
with Unni Krishnan Committees which were supposed to
be permanent in nature.
149. However, we would like to sound a note of
caution to such Committees. The learned counsel
appearing for the petitioners have severely
criticised the functioning of some of the Committees
so constituted. It was pointed out by citing concrete
examples that some of the Committees have indulged in
assuming such powers and performing such functions as
were never given or intended to be given to them by
Islamic Academy. Certain decisions of some of the
Committees were subjected to serious criticism by
pointing out that the fee structure approved by them
was abysmally low which has rendered the functioning
of the institutions almost impossible or made the
institutions run into losses. In some of the
institutions, the teachers have left their job and
migrated to other institutions as it was not possible
for the management to retain talented and highly
qualified teachers against the salary permitted by
the Committees. Retired High Court Judges heading the
Committees are assisted by experts in accounts and
management. They also have the benefit of hearing
the contending parties. We expect the Committees, so
long as they remain functional, to be more sensitive
and to act rationally and reasonably with due regard
for realities. They should refrain from generalizing
fee structures and, where needed, should go into
accounts, schemes, plans and budgets of an individual
institution for the purpose of finding out what would
be an ideal and reasonable fee structure for that
institution.
151. On Question-4, our conclusion, therefore, is
that the judgment in Islamic Academy, in so far as it
evolves the scheme of two Committees, one each for
admission and fee structure, does not go beyond the
law laid down in Pai Foundation and earlier decisions
of this Court, which have been approved in that case.
The challenge to setting up of two Committees in
accordance with the decision in Islamic Academy,
therefore, fails. However, the observation by way
clarification, contained in the later part of para 19
of Islamic Academy which speaks of quota and fixation
of percentage by State Government is rendered
redundant and must go in view of what has been
already held by us in the earlier part of this
judgment while dealing with Question No.1.”
21. The second development is that the Fee Fixation
Committee which was constituted on 4.11.2003 and which
passed the orders dated 31.5.2004, 15.7.2004 and 9.3.2005 is
no longer in existence. In pursuance of a new enactment -
the Madhya Pradesh Niji Vyavsayik Shikshan Sanstha (Pravesh
Ka Viniyaman Avam Shulk Ka Nirdharan) Adhiniyam , 2007 (‘2007
Act’ for short) - a Fee Regulatory Committee has been
constituted by the State Government.
22. Having regard to the principles laid down in TMA Pai
Foundation, Islamic Academy Education and Inamdar whereby
the previous scheme in Unni Krishnan was held to be
unconstitutional, in so far as private unaided professional
educational institutions are concerned, the question of two
fee structures - one for the ‘State quota’ students and one
for the ‘management quota’ students does not arise. These
decisions contemplate the determination of fee structure for
each college with reference to the various parameters like
location, nature of the professional course, investment in
infrastructure including land and building, infrastructure
and facilities available by way of buildings, labs,
equipments, salaries to faculty and staff, the cost of
administration and maintenance and reasonable surplus for
growth and development of the institution mentioned therein.
There can therefore be only one fee structure for all
students of a private unaided professional educational
institution. This of course does not come in the way of
different fee structures being applied in regard to
government institutions and aided institutions, nor does it
come in the way of weaker sections of students admitted to
unaided private professional educational institutions being
extended scholarships, grants, fee concessions etc. on a
voluntary basis, either by the institutions themselves or by
the government.
23. In the peculiar facts of the case and the subsequent
events, the counsel for the petitioner Colleges as also the
counsel for the State fairly submitted that they have no
objection for the fixation of the fees in regard to the said
two years (2003-04 and 2004-05) being done by the Fee
Regulatory Committee which has been constituted under the
2007 Act. Though, the said statutory Fee Regulatory
Committee is not constituted for fixing the fee for the
years 2003-04 and 2004-05, interests of justice could be
best served by referring the question of fixation of fees
for 2003-04 and 2004-05 to the said Fee Regulatory
Committee, instead of this Court constituting a separate Fee
Fixation Committee for those years.
Re : Civil Appeals
24. In view of our decision in the writ petitions, the
civil appeals by the Colleges do not survive for
consideration.
25. The State Government has challenged the interim order
dated 29.9.2003 of the High Court on the ground that it had
not given an undertaking as noted in the order dated
29.9.2003. The High Court has specifically recorded the
consensus arrived at among the parties and it relates to
only four colleges mentioned in the order and that too for
the 2003-04. The interim order also makes it clear that the
State's liability will be only where the colleges are not
able to recover the amounts from the students. We find that
the said order was made in the background of the peculiar
facts as the State had prevented the college from recovering
any amount in excess of Rs.38,500/- from state quota
students. The said order dated 29.9.2003 therefore does not
call for any interference.
Conclusion
26. We, accordingly, allow these writ petitions in part as
follows:
(a) It is declared that the fixation of fees so far done,
either by the Fee Fixation Committee/State Government for
the year 2003-04 and 2004-05 was only as an interim
provisional measure, subject to final determination that is
yet to be done.
(b) The Fee Regulatory Committee, which was constituted
under the 2007 Act, is hereby entrusted with the function of
determining the fee structure for the petitioner colleges
(unaided private colleges) for the Academic Years 2003-2004
and 2004-2005 after giving due hearing to the colleges
concerned and the State Government. It is open to the
Committee to consider any written representation submitted
by the concerned students also, while fixing the fee for
those years. The students are not entitled to claim personal
hearing. The Fee Regulatory Committee for this purpose will
have all powers that have been vested in it by the 2007 Act.
The State Government shall take all steps and do everything
necessary to enable the said Fee Regulatory Committee to
complete the process of fee fixation expeditiously.
(c) All questions are left open and nothing stated in the
several orders of the High Court or by this Court shall be
considered as expression of opinion in regard to fee
structure for the said academic years (2003-04 and 2004-05)
and the Fee Regulatory Committee shall determine the fees
with reference to the facts, figures and material placed
before it.
(d) In the event of the fees determined by the Committee
being more than what has been collected from the students of
2003-04 and 2004-05, it is open to the colleges to recover
the balance by enforcing the bank guarantee or undertaking,
if any, obtained from the students. In so far a 2003-04 is
concerned, if there is any non-recovery or shortfall in
recovery, with reference to any student, the same shall be
made good by the State Government in accordance with the
order dated 29.9.2003 (extracted above). It is made clear
that the said indemnity by the State Government is only with
reference to four colleges mentioned in the order dated
29.9.2003 in regard to 2003-2004. The State will have no
liability to pay any difference in fee in so far as other
colleges are concerned.
(e) If the fee determined by the Committee is less than
what has been already recovered, the concerned College shall
refund the excess fee collected to the respective student.
27. As no other point is urged and all the petitioners
agreed that the only point that was to be decided was in
regard to the fees, the remaining issues raised are not
decided (and left open) as having become infructuous.
28. As a consequence, all the civil appeals are disposed of
in view of the directions given while disposing of the writ
petitions.
.....................J.
( R.V. RAVEENDRAN )
.....................J.
( H.L. GOKHALE )
New Delhi;
September 08, 2010.