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TMI Blog2008 (5) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... students to US $4000 per annum whereas the other students continued to pay fee at the rate of Rs. 20,000 per semester. This practice was continued for three admission years, i.e. 1996-97, 1997-98 and 1998-99, but from the year 1999-2000 the provisions made in the year 1995- 96 i.e. confining the payment of fee to a one time payment US $5,000 and Rs. 20,000/-per semester were restored. The respondents herein who had been admitted to the course in question during the years 1997-98 and 1998-99 filed representations claiming that they had been adversely treated by the appellant University and that they were entitled to claim parity vis-`a-vis the fee structure for NRI students as from the years 1999-2000 onwards. As the representations bore no result, 34 of the 56 NRI students who had been admitted to the course during the two years, filed two writ petitions before the Kerala High Court. On notice, a counter affidavit was filed by the Registrar on behalf of the appellant University pointing out that the NRI students had not been admitted to the course on the basis of merit and that the B. Tech. programme conducted at the Centre was a self-financing and unaided one being run exclusively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The University is directed to refund the extra fee charged from the petitioners. It may be noticed in this connection that initially the levy of an additional fee had been stayed by this Court. However, on a subsequent date, the order of stay was vacated. At that time an undertaking was given by the University that in case the writ petition is allowed, the disputed amount of fee shall be refunded. The University shall do so within two weeks from the date of receipt of a certified copy of this order. In case of failure to refund within the time as aforesaid, it shall be liable to pay the amount along with interest at the rate of 10% from the date of deposit till the date of refund. The University is also directed to declare the result of the petitioners forthwith. 4. It is against this judgment and order of the Division Bench that the present appeals have been filed by way of Special Leave. This matter first came up for hearing on 9th May 2003 on which date leave was granted and pending proceedings the order for refund was stayed. We have also been told that this Court had directed the respondent students as an interim measure to pay the entire fee as per the fee structure under wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one, as before the High Court the plea taken was that the funds available from the NRI students were required for infrastructure development whereas a complete somersault had been made in the affidavit filed in this Court by pleading that it had been observed, that during the admissions made in the year 1997-98 and 1998-99 meritorious NRI students had not sought admission on account of the high fee and it was in that eventuality that the University had decided to re-introduce the fee structure for the year 1995-96, so as to attract NRI students from a wider base. It has been submitted by Mr. Rao that the quantum of the fees and the manner of its imposition suggested that the fees was, in fact, a capitation fee, the levy of which was completely barred by several judgments of this Court and in this connection has placed reliance on T.M.A. Pai Foundation and Ors. (supra). It has been pleaded that as per the budget estimates shown in the affidavit filed by the university in this Court ( from the year 1996-97 to 1999- 2000) it was clear that there were substantial reserves with the University during the years 1997-98 (academic years) which did not warrant an increase in the fee. It has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is category, the fee had been reduced. We are of the opinion that no contradiction or fault can be found with the University in taking these two stances in the two affidavits as they supplement each other and make out a justification for the initial increase in the fee and subsequent downward revision. 8. We have also gone through the judgments cited by the learned Counsel. In T.M.A. Pai case (supra) several questions as to the rights of minority institutions to manage their own affairs were taken up one of the significant questions being the right to determine and levy fee. Question 5(c) and its answer are reproduced below: Q.5(c) Whether the statutory provisions which regulate the facets of administration like control over educational agencies, control over governing bodies, conditions of affiliation including recognition/ withdrawal thereof, and appointment of staff, employees, teachers and principles including their service conditions an regulation of fees, etc. would interfere with the right of administration of minorities? A. So far as the statutory provisions regulating the facets of administration are concerned, in case of an unaided minority educational institution, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit of the students. They must also be able to generate surplus which must be used for the betterment and growth of that educational institution. In paragraph 56 of the judgment it has been categorically laid down that the decision on the fees to be charged must necessarily be left to the private educational institutions that do not seek and which are not dependent upon any funds from the Government. Each institute will be entitled to have its own fee structure. The fee structure for each institute must be fixed keeping in mind the infrastructure and facilities available, the investments made, salaries paid to the teachers and staff, future plans for expansion and/or betterment of the institution etc. Of course there can be no profiteering and capitation fees cannot be charged. It thus needs to be emphasized that as per the majority judgment imparting of education is essentially charitable in nature. Thus the surplus/profit that can be generated must be only for the benefit/use of that educational institution. Profits/surplus cannot be diverted for any other use or purpose and cannot be used for personal gain or for any other business or enterprise. 10. It was as a conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uge investments, the surplus was not unconscionable so as to require interference. Moreover, the University had made its budget estimates keeping in view the proposed receipts and if the fee levied by it and accepted by the students was permitted to be cut down mid term on the premise that the University had not been able to explain each and every item to justify the levy, it would perhaps be impossible for it to function effectively. 12. We are also of the opinion that it would be well nigh impossible for an educational institution to have an effective administration and to maintain high educational standards, if a downward revision during the pendency of a course would be automatically made applicable to students admitted earlier under a different fee structure. A periodic revision is also visualized in the directions of the Supreme Court in Islamic Academy's case (supra) wherein it has been provided that the fee structure fixed by a committee headed by a retired Judge would be operable for 3 years. In the present case, we find that the NRI students took admission on certain specific conditions and the University has a right to insist that those conditions are observed. To ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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