'No Student Can Be Expelled For Non-Payment': Madras High Court Permits Pvt Schools To Collect 85% Fees In Instalments

The Madras High Court on Friday permitted private unaided educational institutions to collect 85% of the annual school fee payable for the current academic year, i.e. 2021-22 in six instalments from parents who have not suffered any form of financial loss during the pandemic period. However, the Court made it clear that no student shall be restrained from attending online classes or taking exams or expelled from the institution on account of non-payment of fees.

Justice D Krishnakumar was adjudicating upon a batch of petitions challenging a Tamil Nadu government order April 20, 2020 that had restrained private schools and colleges (unaided) in the State from compelling students or parents to pay the fee for the academic year 2020-2021 and other pending dues during the lock down period. Certain parents had also filed petitions alleging that schools had collected 100 percent fees without conducting online classes or dispensing other services.

The Court had earlier issued an interim order dated July 17 wherein the unaided private institutions had been directed to collect 40% of the tuition fees.

Observations:

Pursuant to the consideration of rival submissions, the Court noted that due to the ongoing pandemic, it is not only the students who are suffering but private schools have also been adversely affected.

"Private schools are particularly affected, with many finding it difficult to even pay their staff and some have also had to temporarily terminate the services of their faculty for co-curricular and extra-curricular activities such as sports and arts, besides other staff members. Orders have been passed directing the schools to collect only the tuition fees from parents and not to charge transportation fees, development fees etc", the Court observed.

Furthermore, the Court observed that many schools had submitted before the Court that they are finding it difficult to even collect the tuition fees and that conducting of virtual classes have shot up expenditure. Schools are having to provide for laptops and network connectivity for teachers who do not have the required infrastructure to conduct online classes. Thus schools with moderate funds are finding it extremely difficult to survive, the Court added.

Needless to state that schools with moderate funds are finding it extremely difficult to survive.

Taking into consideration the financial burden on parents, the Court observed,

"The Covid-19 pandemic has been financially challenging for parents, since they have not been able to make fee payments on the due dates owing to lockdown or on account of other reasons such as loss of income, unemployment, closure of businesses due to lockdown restrictions and the parents demand concession of fees since the classes are conducted online."

Further reliance was placed on the Apex Court judgement in Indian School, Jodhpur and Another v. State of Rajasthan and Others wherein the Supreme Court had that State authorities do not have any power under the Disaster Management Act, 2005 to order reduction in fees of private unaided schools.

Directions issued:

The Court issued the following directions taking into account the grievances of the concerned stakeholders. 

1. The petitioners/school management of the concerned private unaided schools shall collect 85% of the annual school fees (based on the fee fixed for the academic year 2019-2020) for the academic year 2021-2022 in six instalments from those students/parents who have not suffered loss of income during the pandemic period, provided they have conducted online classes. If the students have already paid first instalment for the present academic year, the balance amount shall be paid by way of instalments and the last instalment is to be paid on or before February 1, 2022.

2. Students/parents who have suffered loss of income during the pandemic period, shall make an application to the school management, who shall consider their request and collect 75% of the fees.

3. If any parents/wards seek further concession for payment of annual fees for the academic year 2021-22 on account of unemployment, close down of business due to lockdown, they shall make a representation to the school management, who shall consider such representation on case-to-case basis sympathetically.

4. The students will not be removed from the school under any circumstances for this academic year 2021-2022 in view of the present academic situation.

5. No student will be restrained from attending online classes for this academic year 2021-2022 under any circumstances.

6. The unaided private institutions shall also collect the arrears of fees payable for the academic year 2020-2021 in instalments.

7. If any student has already paid the entire fees including arrears, the same shall not be a ground to claim for refund of the fee

8. The school management shall not shall not withhold the results of the examinations of any student on that ground of non-payment of fees. If any such action is brought to the notice of the educational authorities, it shall be viewed seriously and suitable action shall be taken against the institutions concerned.

9. If any dispute arises between the parents/wards and the School Management in respect of concession in fees, either on the reference by the School Management or on the application by the students / parents, the District Educational Officer of the Districts concerned shall consider and take appropriate decision within a period of 30 days from the date of receipt of the application.

10. It will be open to the schools to give further concession to their students or to evolve a different pattern for giving concession.

11. The students shall not be removed / dropped out from the institutions under any circumstances during this academic year 2021-22 and it is the responsibility of the jurisdictional Educational Authorities to monitor the same.

12. If any difficulty faced by the students to continue in a particular school, they can approach the jurisdictional Educational Authorities, who shall make necessary arrangements to accommodate the said students in nearby Government / Corporation/ Municipal / Panchayat schools.

13. As a special case under extraordinary situation, the State Government may also consider to sanction amount for the fees, if there is any unfilled seats available under 25% quota under the Right of Children to Free and Compulsory Education Act, 2009, for the academic year 2021-22, subject to eligibility criteria

14. The management of CBSE Schools shall publish the details of fees to be collected for the academic year 2021-2022 in their respective website, within a period of four weeks from the date of receipt of a copy of this order.

15. In case of dispute in respect of determination of fees, the school Management or students/parents concerned can approach the Fee Determination Committee for redressal of their grievances.

16. Students who seek to leave the school may inform to the schools concerned. It is made clear that the Education Department has already issued a circular that schools cannot insist upon production of Transfer Certificate for admission of students in schools. It is only an information to the school management for admitting new students in the said vacancies.

17. The State Government shall take all necessary steps to fill up the vacancies in the cadre of staff and ensure effective functioning of the Fee Determination Committee. The said exercise shall be completed by the Secretary to Government, School Education Department, Government of Tamil Nadu, within a period of eight weeks from the date of receipt of a copy of this order.

18. In view of the above directions, the State Government shall issue revised Circular and the same shall be communicated to all the Schools within a period of two weeks from the date of receipt of a copy of this order.

Case Title: Federation of Association of Private Schools in Tamil Nadu v. The Chief Secretary to Government and ors

Click Here To Read/Download Order