High Court Stays Delhi Govt's Circular Mandating Private Unaided Schools To Get Prior Approval Before Fee Hike

The Delhi High Court has stayed a circular issued by the Delhi Government stating that no recognized private unaided school in the national capital, which has been allotted land by government agencies, shall enhance fee for the upcoming 2024-25 academic session without the prior sanction of Director of Education (DoE).

Justice C Hari Shankar stayed the circular issued on March 27 which barred all Private Recognized Unaided Schools from raising the fee without prior sanction of the DoE.

The DoE asked all heads and managers of private unaided schools to submit the proposals for fee hike on its official website from April 01 to 15.

The court passed the interim order while dealing with a plea moved by Action Committee Unaided Recognized Private Schools against the impugned circular.

Issuing notice in the plea, the court observed that it has been held in various decisions that private unaided schools do not have to seek prior approval before enhancing their fees, so long as they do not indulge in profiteering or commercialization of education by charging capitation fees, and that there is a distinction between “commercialization of education” and making of profits.

It said that the DoE has to respect the judgment of the Delhi High Court in Action Committee Unaided Recognized Private Schools v. DoE wherein it was held that there is no requirement for private unaided schools to take “prior approval” of the DoE before enhancing fees.

“The attitude of the DoE in continuously issuing Circulars threatening recognized unaided schools with action in the event of their increasing their fees without obtaining prior approval of the DoE is objectionable, and cannot be allowed,” the court said.

It added the grievances against the decision in Action Committee Unaided Recognized Private Schools case have, if at all, to be ventilated before the Division Bench before which the appeal is pending.

“So long as there is no interdiction, interlocutory or otherwise, by the Division Bench, with the principle in Action Committee Unaided Recognized Private Schools that no prior approval of the DoE is required before an unaided recognised school increases in its fees, even if situated on land to which “land clause” applies, it is the decision in Action Committee Unaided Recognized Private Schools that would apply, and the DoE is required to respect that position,” the court observed.

The matter will now be heard on July 31.

Counsel for Petitioner: Mr. Kamal Gupta, Mrs. Tripti

Gupta, Mr. Sparsh Aggarwal, Mr. Karan Chaudhary, Ms. Yosha Dutt, Mr. S.L. Bansal and Mr. Nikhil Kukreja, Advs

Counsel for Respondent: Mr. Santosh Kumar Tripathi, SC (Civil) for GNCTD/DoE with Ms. Prashansa Sharma and Mr. Rishabh Srivastava, Advs

Title: ACTION COMMITTEE UNAIDED RECOGNIZED PRIVATE SCHOOLS v. DIRECTORATE OF EDUCATION

Citation: 2024 LiveLaw (Del) 527

Click here to read order