New Delhi: The Supreme Court has held that
private unaided schools in the national capital can fix their
own fee structure, sans capitation fees, and transfer their
surplus funds from one school to another provided they are
under the same management.
A three-judge bench of Justices S B Sinha, S H Kapadia
and Cyriac Joseph, reiterated their earlier ruling that
private schools can fix their own fee structure subject to the
condition that no capitation fee is charged from the student.
In other words, the Delhi government would not be an
authority to fix the fees but has the power to examine whether
any capitation fee is charged by the schools.
The bench passed the judgement while dealing with the
review petitions filed by a bunch of schools challenging the
earlier judgement passed by the apex court in 2004 wherein it
was held that the government had the power to examine the fee
The judgement assumes significance as private unaided
schools here had challenged an order passed by the Director of
School Education regulating the fee structure in the schools.
The apex court said the rules governing the fee
structure in schools should be in conformmity with its earlier
Constitution bench judgements in the T M A Pai and P A Inamdar
cases, where it was held that private unaided educational
institutions have the power to fix their own fee structure,
provided no capitation fees are charged.