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State Regulation of Profiteering by Schools does not violate Managements ‘Fundamental Rights under Article 19(1) (g)
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State Regulation of Profiteering by Schools does not violate Managements ‘Fundamental Rights under Article 19(1) (g)

05 Jun 2021 04:23 pm

3rd May 2021 Supreme Court

Justices: AM Khanwilkar and Dinesh Maheshwari

Article 19 (1) (g) of Indian Constitution

The Hon’ble Court has observed that setting up of an independent final adjudicating authority especially created for considering the question as to whether the fee structure proposed by the school Management results in profiteering or otherwise, it does not impinge upon the fundamental right of the school Management guaranteed under Article 19(1)(g) of the Constitution.

The fee structure determined by the school Management can be altered by the Adjudicatory Authorities only upon recording a negative finding on the factum of amount claimed towards school fees relating to particular activities is an essential expenditure or otherwise; and that the fee would be in excess of reasonable profit being ploughed back for the development of the institution or otherwise. The recovery of excess amount beyond permissible limit would result in profiteering and commercialisation. In our opinion, therefore, even Rule 11 is a relevant and reasonable provision and does not impact or abridge the fundamental right under Article 19(1)(g) of the Constitution.

It has further said that it is one thing to say the State may regulate the fee structure of private unaided schools to ensure that the school management does not indulge in profiteering and commercialization, but in the line of regulation and impinge upon the autonomy of the school to fix and collect “just” and “reasonable” school fess from its students”.

 

Indian School, Jodhpur vs. State of Rajasthan
Civil Appeal No. 1725 of 2021


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