Delhi HC Stays Circular Preventing Private Schools from Fee Hike Without Government’s Approval

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The Delhi High Court issued a stay order on a circular that barred private schools from increasing fees without government approval. This decision temporarily suspends the implementation of the circular, providing relief to private educational institutions. The court’s move comes amidst ongoing debates and legal challenges regarding fee regulations and autonomy in the education sector.

New Delhi: The Delhi High Court issued a stay order on a circular released by the Delhi government‘s Department of Education (DOE). This circular imposed restrictions on private schools situated on government-allotted land, preventing them from raising fees without obtaining prior approval.

The stay order implies that the circular’s directives are temporarily suspended, pending further legal proceedings or a final decision by the court. This development comes amidst a broader discussion and debate surrounding fee regulations in private schools, particularly those operating on land allocated by government entities.

Justice C Hari Shankar issued a stay order on the circular issued by the Department of Education (DOE) on March 27. This means that the implementation of the circular’s provisions temporarily stayed pending further legal review or a final decision. The stay order indicates that the court has found merit in the arguments presented against the circular and believes that its enforcement should be paused until the matter is thoroughly examined and adjudicated upon.

The Court stated,

“The operation of the challenged circular dated March 27, 2024, issued by the DOE, shall be stayed until the next date of hearing,”

In an interim order issued on April 29, the High Court pointed out that the government’s order is in direct contradiction to the Court’s previous decision. Justice Hari Shankar observed that while the government has appealed this judgment before the Division Bench, no stay or overturning of the judgment has been granted.

This indicates that the High Court finds merit in its earlier ruling and believes that the government’s current order conflicts with it. The absence of a stay or reversal of the initial judgment implies that the Court’s decision stands until further legal proceedings or a definitive ruling by the higher court.

The Court stated,

“The Department of Education (DoE), regardless of its discontent with this Court’s ruling in the Action Committee Unaided Recognized Private Schools case, must adhere to it as long as it remains valid. The DoE’s persistent issuance of Circulars that threaten recognized unaided schools with consequences for fee hikes without prior DoE approval is objectionable and cannot be tolerated,”

The High Court emphasized that schools should not be forced into legal battles like this, affirming that the law clearly states that no prior approval is needed for fee increases in unaided recognized schools, even if they are situated on land subject to a “land clause.”

This ruling was made in response to a plea filed by the Action Committee Unaided Recognised Schools, which represents a group of private schools. The Court also issued notices to the Department of Education (DOE) and instructed it to submit a counter affidavit within four weeks. The case scheduled for the next hearing on July 31.

Advocates Kamal Gupta, Tripti Gupta, Sparsh Aggarwal, Karan Chaudhary, Yosha Dutt, SL Bansal, and Nikhil Kukreja appeared on behalf of the petitioner.

The DOE represented by the Delhi government’s Standing Counsel (Civil) Santosh Kumar Tripathi, along with Advocates Prashansa Sharma and Rishabh Srivastava.

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