Order of Fee Regulatory Body Chandigargh Quashed by Advisor of UT Chandigarh

The issue involved in this case is the charging of excessive fees by Mount Carmel School, Sector 47, Chandigarh, during the Covid-19 pandemic when the school remained closed (Academic sessions 2020-21 & 2021-22). The parents of the students filed a complaint with the Fee Regulatory Body, which passed an order on April 22, 2024, directing the school to charge only tuition fees for the 2020-21 academic year and to give a 15% deduction on that amount. The parents filed an appeal against this order, which was heard by the Advisor to the Administrator on October 4, 2024. The Advisor, after reviewing the documents and hearing the parties, remanded the matter back to the Fee Regulatory Body  to consider and pass orders afresh after following the principles of natural justice and in terms of the Punjab Regulation of fee of Un-aided Educational Institutions Act, 2016.

The Regulatory Body constituted under the Punjab Regulation of Fee of Unaided Educational Institution Act, 2016 (Punjab Act No. 47 of 2016) as extended to the Union Territory of Chandigarh decided vide an order dated 22.04.2024 the complaint of the Complainant-Parents against Mount Carmel School, Sector 47, Chandigarh. The operating para of the order dated 22.04.2024 is as follows:

(i) The order dated 2.6.2020/3.6.2020 was withdrawn vide order dated 2.3.2022. The order dated 3.3.2022 specifically indicates “REVISED ORDER FOR ACADEMIC YEAR 2020-21”. It is mentioned in the last paragraph of the Order that “The fee if already paid or to be paid for the year 2020-21 shall be guided by this order”. As such, there is no doubt that Order dated 3.3.2022 is applicable for the Academic Year 2020-21 only and fees already paid or to be paid for the said Academic Year 2020-21 is to be guided by this Order dated 3.3.2022. As such, complaint of the Complainant-Parents that the order dated 3.6.2020 was not withdrawn from retrospective effect is not in order.

(ii) In terms of the Order dated 3.3.2022, the fee deduction of 15% (on fees charged for the session 2019-20) was only for the Academic Year 2020-21. There are no directions for the Academic Year 2021-22. The school has rightly charged fees for the Academic Year 2020-21 in terms of the Order dated 3.3.2022 by providing a 15% deduction (on the fees for the Academic Year 2019-20).

(iii) The complaint by the Complainant-Parents regarding charging by the school of annual fees beyond the tuition fees for the Academic Years 2020-21 and 2021-22 is not a violation of the Order dated 3.3.2022.

(iv) There are no directions and no directions can be issued by this Regulatory Body to waive off to annual fee during the session 2020-21 and 2021-22.

(v) The Secretary Education, U.T., Chandigarh has in compliance of the orders dated 03.05.2021 of Hon’ble Supreme Court in Civil Appeal No.1724 of 2021 titled as “Indian School, Jodhpur & Another Versus State of Rajasthan & Others” and order dated 28.5.2021 of Hon’ble Punjab & Haryana High Court Chandigarh in CWP No. 7940 of 2020 (O&M) titled as “International Christian Education Foundation C/O St. Xavier School, Sector-44C, Chandigarh Versus U.T., Chandigarh and Others” has issued the order dated 3.3.2022. Hence, the assertion of the parent complainant that the Hon’ble Supreme Court in case of Civil Appeal No.1724 of 2021 was not applicable to the schools in Chandigarh as the said judgment was passed in the case of schools in Rajasthan is rejected.

3. Accordingly, the appeal was heard on 4th October, 2024 at 12.30 PM in the Conference Room, 1st Floor, Chandigarh Secretariat, New building, Sector 9-D, Chandigarh, wherein the Department was directed to file a reply to the appeal dated 5.6.2024 in 7 days with a copy to the Complainant-Parents and thereafter the Complainant-Parents may send objections/suggestions, if any, within 07 days to the Appellate Authority.

4. The reply of the Department dated 11.10.2024 to the Appeal dated 5.6.2024 was provided to the Complainant-Parents vide office letter No. 162-DSE-UT-A4-24(27)2021/2024/5500, dated 11.10.2024 and Complainant-Parents have submitted objections/replications on 24.10.2024.

5. Having reviewed the documents on file, it is inter alia noted that:-

(a) 13 parents who have represented before the Appellate Authority had not filed before the Regulatory Body their complaint under Section 11 of the Punjab Regulation of fee of Un-aided Educational Institution Act, 2016, and

(b) The other appellants have stated in the appeal documents that the Regulatory Body has not checked if the school has indulged in any profiteering before passing the order dated 22.04.2024; and

(c) The appellants have stated in the appeal that reasonable notice period was not given to parents to review and respond to the fee structure uploaded by the school;

(d) The appellants have also raised certain other issues before the Appellate Authority without raising them in their complaint to the Regulatory Body under Section 11 of the Punjab Regulation of fee of Un-aided Educational Institutions Act, 2016.

The complaints submitted by 27 parents (list attached) of Mount Carmel School, Sector 47, Chandigarh were received in the School Education Department Office, Chandigarh on 20.02.2024, 22.02.2024, 23.02.2024, 15.03.2024 & 19.03.2024 wherein following issues have been raised:

(i) Charging Annual Fee beyond Tuition Fee by the Mount Carmel School with intent to earning profits, under various heads for Covid period i.e., the session 2020-21 & session 2021-22 during which, the classes were taken via virtual mode & no infrastructure of the school was used.

(ii) For giving direction to waive off the annual fee being charged by Mount Carmel School under various heads beyond tuition fee for the Covid period i.e., for the session 2020-21 & session 2021-22.

2. In terms of the Rule 4 of the Chandigarh Union Territory Regulation of Fee of Un-aided Educational Institutions Rules, 2019, to ascertain the correctness and genuineness of allegation made in the Complaints, notices were sent to all the Complainant-Parents and to the School vide Dept of School Education UT Chandigarh memo dated 05.04.2024.

3. To examine these Complaints, meetings of Regulatory Body for Regulating Fee of Un-aided Educational Institutions, Chandigarh were held on 10.04.2024 and 15.04.2024.

4. The Complainant-Parents and the School was given an opportunity on 10.04.2024 to explain their position with regard to allegations in the Complaints, wherein:

(a) the Complainant-Parents reiterated as:

(i) Annual fees beyond tuition fees has been charged by the School under various heads for covid period i.e. Academic Session 2020-21 & Academic Session 2021-22 during which, the classes were taken via virtual mode & no infrastructure of the School was used.

(ii) Directions be issued to the School to waive off the annual fee being charged under various heads beyond tuition fee for the Covid period i.e. for the Academic Session 2020-21 & Academic Session 2021-22.

(iii) Order dated 03.06.2020 was withdrawn by Chandigarh Administration on 03.03.2022 but it was not withdrawn with retrospective effect.

(iv) The judgement of Hon’ble Supreme Court in case of Civil Appeal No.1724 of 2021 was not applicable to the schools in Chandigarh and the said judgement was passed in case of schools in Rajasthan.

(b) Responding to the issues raised in the Complaints, the School Principal stated: –

(i) Order dated 02.06.2020/03.06.2020 regarding charging tuition fees by the schools for the Academic Year 2020-21 issued by Adviser to the Administrator & Chairperson, State Executive Committee of State Disaster Management Authority, UT, Chandigarh was withdrawn vide order dated 02.03.2022 and a new order dated 03.03.2022 for the Academic Year 2020-21 was issued.

Section 2 (g) “fee” means any amount by whatever name it may be called, which is charged directly or indirectly by an Unaided/Educational Institution for admission of a student for education to any standard of course of Study.”

8. The Order dated 02.06.2020/03.06.2020 issued by Adviser to the Administrator & Chairperson, State Executive Committee of State Disaster Management Authority, UT, Chandigarh is reproduced as:

“The Governor of Punjab and Administrator, UT, Chandigarh, as Chairperson of State Disaster Management Authority, In exercise of powers conferred under Section 39 (1) of the Disaster Management Act, 2005 hereby passes the following orders: –

WHEREAS consequent upon the global devastation wrought by the COVID-2019 pandemic, the executive administration in this country had to take certain firm decisions in public Interest, so as to minimize the societal effect of the viral pandemic.

WHEREAS countrywide lockdown was imposed by Government of India on 25/03/2020 to avoid the spread of Corona Virus, in compliance with the orders of Ministry of Home Affairs, Govt. of India, under the provisions of Disaster Management Act, 2005. Various directions were issued from time to time by Chandigarh Administration and Education Department in public interest, keeping in view the financial constraints/hardships faced by the parents.

WHEREAS all schools of UT Chandigarh were closed vide order dated 13/03/2020 and the schools continue to remain closed in compliance with the orders of Ministry of Home Affairs, Govt. of India.

WHEREAS keeping in view the financial hardships of the parents due to lockdown, directions regarding deferment of fees were issued on 30/03/2020 and revised orders regarding payment of monthly tuition fees and other details were issued 18/05/2020 (in compliance with the Interim directions of Hon’ble High Court dated 13/05/2020 in CWP No. 7338 of 2020).

WHEREAS directions Issued to upload income, expenditure account and balance sheet as per the provisions of Section-5 of the Punjab Regulation of Fee of Un-aided Educational Institutions Act, 2016, as extended to U.T., Chandigarh but most of the private schools have not complied with the said provisions of the Act and, therefore, exact financial status of the most of the schools could not be ascertained. Moreover, most of the schools have not uploaded the complete fee structure on their website as the provisions of the Act. The affiliation bye-laws of CBSE, 2018 (7.3) also stipulate that all affiliated schools shall charge fee under the heads prescribed/approved by the State Government.

WHEREAS as per conditions of allotment of land Educational Institution (Schools) lease hold basis In Chandigarh Scheme, 1996, amended in 2001 and 2005 (Para no. 18) all private schools have to follow the directions regarding fee structure issued by the Chandigarh Administration from time to time.

WHEREAS District Education Officer has reported that several complaints have been received from the parents that schools are collecting extra charges in the name of tuition fee and have also increased the tuition fee substantially (after issue of order dated 18.05.2020 and enactment of Fee Regulation Act).

AND WHEREAS it was noted that neighboring states have given directions to Increase the fees during academic session 2020-21 keeping view the situation due to COVID-19. Orders dated 17th/18th April, 2020 issued by Govt. of NCT, Delhi on similar lines have been upheld by Hon’ble Delhi High Court In WP(C) 2993 of 2020.

NOW, THEREFORE, keeping in view the above provisions, details and the present situation/crisis due to COVID-19, it is hereby ordered in public interest that:-

1. There will be no increase in school fee for the year 2020-21 without specific approval from the Administration.

2. Tuition fee will be charged at same rates, as was charged in the year 2019-20. No hidden/additional charges will be Included.

3. All private schools shall display the details of fee structure (specifically tuition fee), as per the provisions of section 5(c) of Fee Regulation Act, 2016 on their website and will also intimate the same to Administration on or before 15th June, 2020.

9. The aforementioned Order dated 02.06.2020/03.06.2020 was withdrawn vide Order dated 2.3.2022 by Adviser to the Administrator & Chairperson, State Executive Committee of State Disaster Management Authority, UT, Chandigarh as: –

“Whereas, Chairman Disaster Management Committee, Chandigarh Administration issued order no. 13180-HIII(5)2020/5742 dated 2/3.6.2020 directing all the Recognized Private Schools of U.T., Chandigarh to charge tuition fees and not to increase any fees during the academic year 2020-21 without specific approval from the Administration.

2. Now, in compliance with the order dated 3.5.2021 passed by the Hon’ble Supreme Court of India in Civil Appeal No. 1724 of 2021 (arising out of SLP No. 27881 of 2019 titled as Indian School, Jodhpur & Another Versus State of Rajasthan & others” and in compliance with the order dated 28.5.2021 of the Hon’ble Punjab & Haryana High Court, Chandigarh in CWP No. 7940 of 2020 titled as International Christian Education Foundation (Regd.) C/O St. Xavier’s School, Sector-44C, Chandigarh through its Chief Administrator Versus Union Territory of Chandigarh and Others, the orders referred to in para No. 1 above are hereby withdrawn.

10. The Order dated 03.03.2022 by Education Secretary, Chandigarh Administration provides as:

“….In compliance with the orders dated 03.05.2021 of Hon’ble Supreme Court in Civil Appeal No. 1724 of 2021 titled as “Indian School, Jodhpur & Another Versus State of Rajasthan & Others” and order dated 28.5.2021 of Hon’ble Punjab & Haryana High Court Chandigarh in CWP No. 7940 of 2020 (O&M) titled as “International Christian Education Foundation C/O St. Xavier School, Sector-44C, Chandigarh Versus U.T., Chandigarh and Others”, all the Heads of the Private Recognized Schools of U.T., Chandigarh are directed to ensure as under:-

i) The school management of the concerned private unaided school shall collect school fees from their students as fixed under Section 6 of the Punjab Regulation of Fee of Unaided Educational Institution Act, 2016 (as extended to U.T., Chandigarh by Ministry of Home Affairs vide notification dated 13.4.2018) for the Year 2019-20 but by providing a deduction of 15% on that amount in lieu of un-utilized facilities by the students during the relevant period of the academic year 2020-21.

ii) It will be open to school management to give further concession to their students or to evolve a different pattern for giving concession over and above 15% reduction in fee.

iii) The School Management shall not debar any student from attending either online classes or physical classes on account of non-payment of fees, arrears/outstanding fees and shall not withhold the results of the examinations of any student on that account.

iv) If any individual request is made by the parent/ward finding it difficult to remit annual fees for the academic year 2020-21 in the above terms, the school management to consider such representation on case-to case basis sympathetically.

v) The school management shall not withhold the name of any student/candidate for the ensuing Board examinations for classes X and XII on the ground of non-payment of fee/arrears for the academic year 2020-21, if any, on obtaining undertaking of the concerned parents/students.

Further, in compliance with the order dated 1.10.2021 passed by Hon’ble Supreme Court in M.A. No. 1399 of 2021 in Civil Appeal No. 1736 titled as Progressive Schools Association Versus State of Rajasthan & Another wherein it has been clarified that it is open to the school management to initiate appropriate action for recovery of the outstanding dues/amount, if any, in accordance with law. There is no bar to recover the outstanding dues/amount if any, in accordance with law and as ordered by Hon’ble Apex Court, if the concerned parent/ward seeks some indulgence for just reasons, it will be open to the School Management to consider such request compassionately.

The fee if already paid or to be paid for the year 2020-21 shall be guided by this order.

11. After going through the details/issues raised in the meetings and relevant record, it is hereby ordered that:

(i) The order dated 2.6.2020/3.6.2020 was withdrawn vide order dated 2.3.2022. The order dated 3.3.2022 specifically indicates “REVISED ORDER FOR ACADEMIC YEAR 2020-21”. It is mentioned in the last paragraph of the Order that “The fee if already paid or to be paid for the year 2020-21 shall be guided by this order”. As such, there is no doubt that Order dated 3.3.2022 is applicable for the Academic Year 2020-21 only and fees already paid or to be paid for the said Academic Year 2020-21 are to be guided by this Order dated 3.3.2022. As such, the complaint of the Complainant-Parents that the order dated 3.6.2020 was not withdrawn from retrospective effect is not in order.

(ii) In terms of the Order dated 3.3.2022, the fee deduction of 15% (on fees charged for the session 2019-20) was only for the Academic Year 2020-21. There are no directions for the Academic Year 2021-22. The School has rightly charged fees for the Academic Year 2020-21 in terms of the Order dated 3.3.2022 by providing a 15% deduction (on the fees for the Academic Year 2019-20).

(iii) The complaint by the Complainant-Parents regarding charging by the school of annual fees beyond the tuition fees for the Academic Years 2020-21 and 2021-22 is not a violation of the Order dated 3.3.2022.

(iv) There are no directions and no directions can be issued by this Regulatory Body to waive off to annual fee during the session 2020-21 and 2021-22.

(v) The Secretary Education, U.T., Chandigarh has in compliance of the orders dated 03.05.2021 of Hon’ble Supreme Court in Civil Appeal No.1724 of 2021 titled as “Indian School, Jodhpur & Another Versus State of Rajasthan & Others” and order dated 28.5.2021 of Hon’ble Punjab & Haryana High Court Chandigarh in CWP No. 7940 of 2020 (O&M) titled as “International Christian Education Foundation C/O St. Xavier School, Sector-44C, Chandigarh Versus U.T., Chandigarh and Others” has issued the order dated 3.3.2022. Hence, the assertion of the parent complainant that the Hon’ble Supreme Court in case of Civil Appeal No.1724 of 2021 was not applicable to the schools in Chandigarh as the said judgment was passed in the case of schools in Rajasthan is rejected.