MP High Court Dismisses Private Schools' Plea Against Fee Regulation By District Committee, Asks Parties To Appeal Before Committee

In a recent judgement on 30th of July, 2024, the Madhya Pradesh High Court at Jabalpur, directed private schools to seek alternative remedy regarding the regulation of fees by the district committee under the Madhya Pradesh Niji Vidyalaya (Fees Tatha Sambandhit Vishayon Ka Viniyaman) Adhiniyam 2017 (2017 Act).

The single-judge bench of Justice Maninder S. Bhatti dismissed a series of writ petitions filed by various private schools challenging the fee regulation orders issued by the District Committee under the 2017 Act and its associated Rules of 2020. The petitions collectively raised significant questions regarding the jurisdiction of the District Committee and the adherence to principles of natural justice.

The schools contended that the District Committee's actions exceeded its regulatory powers, transforming it into a fee-fixing body, which is not sanctioned by the Act of 2017. Additionally, they argued that the principles of natural justice were not adhered to, as the schools were not given a fair hearing.

Section 9(5) of the Act of 2017 empowers the District Committee to conduct inquiries with the powers of a Civil Court. Chapter 3 of the Act of 2017 outlines the process for regulating fee increments, requiring schools to submit audited accounts for fee enhancement proposals. The Rules of 2020 introduced a portal for submitting these proposals, which schools argued was not operational until 2020, complicating compliance.

Justice Bhatti noted that the District Committee's orders were issued in response to notices served to the petitioners, and the schools' replies were considered. The court found that the principles of natural justice were not violated, as the petitioners had been given an opportunity to be heard. The court determined that the process followed by the District Committee included issuing notices and considering responses, thus fulfilling the requirement of natural justice.

Justice Bhatti emphasized the availability of an alternative remedy under Section 11 of the Act of 2017, which allows for an appeal to the State Committee against the District Committee's orders. Given this statutory provision, the court held that the petitioners should pursue this appellate route before seeking judicial intervention.

Case title: Gyan Ganga Orchids The International School vs. The State of Madhya Pradesh and Others and connected applications

Case No: W.P. No. 20403 of 2024

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