Private unaided school can collect annual school fees during lockdown but after providing deduction of 15 % on that amount, in lieu of unutilised facilities by the students

The Supreme Court recently held that those educational institutions are engaged in doing a charitable activity of imparting and spreading education and not making money. That they must willingly and proactively do. It was assumed that school Management(s) must have saved around 15 percent of the annual school fees fixed by the school/adjudicated by the Statutory Regulatory Authorities for the relevant academic year. The court cautioned that collection of the commensurate amount would be a case of profiteering and commercialization.

Fees instead of unutilized facilities, should be paid by the student in six equal monthly instalments and Management shall not debar any student from attending either online or physical classes on account of non-payment of fees or withhold results of examinations. It is also made specifically clear that School management shall not withhold the name of any student for Board examinations for classes X and XII on the ground of non-payment of fee.

In the present case, Justice A.M. Khanwilkar stated that determination of the school fee structure or reduction of fixed school fee for a period of the pandemic is within the exclusive prerogative of school Management running the private unaided school. And hence the order of Rajasthan High Court dated 28.10.2020 regarding the reduction of fees limited to 70% of tuition fees by schools affiliated with CBSE and 60% from schools affiliated with Rajasthan Board of Secondary Education, is liable to be set aside, being issued in respect of matters beyond the power of State Government.

Appearing counsel/s: Mr. Pallav Shishodia, Dr. Manish Singhvi, Mr. Devadatt Kamat

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