Introduction:

The Patna High Court delivered a landmark verdict affirming the constitutionality of Bihar’s Private Schools (Fee Regulation) Act, 2019, dismissing a writ application by the Association of Independent Schools Bihar. The court held that the government has the authority to regulate fees to prevent profiteering. It directed the state government to adopt provisions similar to Rajasthan’s Fees Regulation Act, emphasizing the need for fee regulation to ensure education is not commercialized.

Arguments:

The Association of Independent Schools Bihar contended that the Fee Regulation Act’s Sections 3, 4, and 5 were ultra vires, challenging the state’s attempt to regulate fees through legislation. The petitioner argued that the imposition of a 7% limit on fee increases lacked clarity and posed arbitrary restrictions. Senior Counsel Bindhyachal Singh emphasized the absence of specific guidelines for the Fee Regulatory Committee (FRC) and criticized the legislation for infringing on schools’ financial autonomy.

Court’s Judgement:

The Patna High Court, referring to the Supreme Court’s decision in the Indian School case, upheld the constitutionality of Bihar’s Fee Regulation Act. The court drew parallels with Rajasthan’s Act, which was deemed constitutional by the Supreme Court in 2021. While recognizing the absence of guidelines for the FRC, the court asserted that autonomy was granted to school management within the 7% annual fee increase limit. The court directed the state government to adopt rules, suggesting the factors for fee determination from the Rajasthan Act until rules are formulated.