{"id":299,"date":"2020-10-14T10:25:56","date_gmt":"2020-10-14T10:25:56","guid":{"rendered":"http:\/\/blog.ethicallegal.in\/?p=299"},"modified":"2020-10-14T10:25:58","modified_gmt":"2020-10-14T10:25:58","slug":"calcutta-high-court-orders-minimum-20-reduction-in-private-school-fees-stating-they-have-incurred-less-expenditure-during-covid19-lockdown","status":"publish","type":"post","link":"https:\/\/ethicallegal.in\/blog\/2020\/10\/14\/calcutta-high-court-orders-minimum-20-reduction-in-private-school-fees-stating-they-have-incurred-less-expenditure-during-covid19-lockdown\/","title":{"rendered":"CALCUTTA HIGH COURT ORDERS MINIMUM 20% REDUCTION IN PRIVATE SCHOOL FEES STATING THEY HAVE INCURRED LESS EXPENDITURE DURING COVID19 LOCKDOWN"},"content":{"rendered":"\n

The Calcutta High Court on Tuesday, 13 October 2020, slashed the fees charged by private schools in the State by 20%. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

“From the month beginning April, 2020 till the month\nfollowing the one in which the schools reopen in the physical mode, all 145\nschools will offer a minimum of 20 per cent reduction of fees across the\nboard,” the Bench comprising of Justice Sanjib Banerjee and Justice Moushumi\nBhattacharya ordered.<\/p>\n\n\n\n

The Bench further said that collection of non-essential\ncharges for use of facilities, such as laboratory, extracurricular activities,\netc., shall not be permissible during the months that the schools have not\nfunctioned in the physical mode.
\n
\nThe order was passed in a batch of writ\npetitions filed by the parents whose children are students at 145 private\nschools in the State, aggrieved by charging of full fees despite suspension of\nphysical classes.<\/p>\n\n\n\n

While allowing the petition, the Court observed that as a\nconsequence of physical classes not being conducted over the last six months\nand more, though schools incur the fixed costs, but the variable costs must\nhave come down. It thus observed,<\/p>\n\n\n\n

“When it is obvious that the schools have incurred less\nexpenditure over such a prolonged period of time and may continue to do so for\nsome time longer, allowing the schools to charge at the usual rate would be to\ngive a license to unjust enrichment beyond the judicially demarcated limits”.<\/p>\n\n\n\n

“Since schools cannot be run for business or commerce,\nthe right under Article 19(1) of the Constitution may not be regarded as\nabsolute and subject to reasonable restrictions\u2026 Private unaided schools must\nbe left free to determine their fee structures, as long as there is no element\nof profit-making.”<\/p>\n\n\n\n

The Bench issued the\nfollowing directions;<\/p>\n\n\n\n

  1. There will no\nincrease in fees during financial year 2020-21.<\/li>
  2. From the month\nbeginning April, 2020 till the month following the one in which the schools\nreopen in the physical mode, all 145 schools will offer a minimum of 20 per\ncent reduction of fees across the board. Non-essential charges for use of\nfacilities not availed of will not be permissible. For instance, additional\ncharges for laboratory, craft, sporting facilities or extracurricular\nactivities or the like will not be permissible during the months that the\nschools have not functioned in the physical mode. Session fees traditionally\ncharged periodically will be permissible, but again, subject to a maximum of 80\nper cent of the quantum charged for the corresponding period in the financial\nyear 2019-20.<\/li>
  3. The minimum\nfigure of 20 per cent reduction in the monthly tuition fees will be on the\nbasis of the tuition fees charged for the corresponding month in the previous\nfinancial year. <\/li>
  4. For the financial\nyear 2020-21, a maximum of five per cent excess of revenue over expenditure\nwill be permissible; the balance excess (without any mathematical precision)\nshould be passed on by way of general concession or special concession in\nindividual cases of extreme distress. If any school makes a loss as a\nconsequence of following these directions, such loss can be made up in course\nof the next two financial years, 2021-22 and 2022-23, if normal physical\nfunctioning resumes by March 31, 2021.<\/li>
  5. No amount towards\nthe arrears on account of revision of pay to teachers or other employees can be\npassed on in the fees for financial year 2020-21. The amount on account of\narrears may be recovered in 2021-22 and 2022-23, if normal physical functioning\nresumes by March 31, 2021. <\/li>
  6.  There will be no increase in salaries of\nteachers or of other employees during financial year 2020-21. If any individual\nschool has given effect to a higher pay-scale, the difference must not be\nrealised out of the school fees during the financial year 2020-21.<\/li>
  7. Parents and\nguardians of students are requested not to avail of the reduction in schools\nfees, if their financial situation does not merit the reduction. However, if\nany set of guardians or parents obtains the benefit, no questions in such\nregard can be asked. <\/li>
  8. In addition to\nthe across-the-board reduction, every school will entertain applications from\nparents or guardians for further reduction or waiver or exemption or delayed or\ninstallment payments, as the case may be. Every application in such regard must\nbe supported by the financial statements of the parents or guardians so as to\njustify the request. The financial statements should be certified by any\nqualified auditor and accompanied by a declaration by the applicant parent or\nguardian verifying the particulars to be true and correct.<\/li>
  9. Each application\nwill be considered on merit. Such applications have to be filed before the\nrespective schools by November 15, 2020 and every application should be dealt\nwith on an individual basis and a decision communicated to the applicant by\nDecember 31, 2020. Till the decision on the individual application is\ncommunicated and for a further period of two months thereafter, no coercive\naction should be taken against the relevant student. In other words, the\nstudent must be allowed every facility that a similarly placed other student\nwould enjoy, including the name of such student being put forward for the board\nexaminations, subject, however, to the fees payable to the board being tendered\nwithin time on behalf of the relevant student. <\/li>
  10. When an\napplication for further reduction or waiver or exemption or delayed payment of\nfees has been disposed of by the relevant school but the parents or guardians\nare aggrieved by the decision, an application may be filed, upon deposit of\nRs.1000\/-, to a committee for further adjudication of the request and to assess\nthe decision communicated by the relevant school. Such application has to be\nfiled within 10 days of the rejection, in full or part, of the request being\ncommunicated to the relevant parents or guardians. <\/li>
  11. The committee\nreferred to in the immediate preceding clause will be headed by Mr Tilok Bose,\nSenior Advocate as its chairperson and will be assisted by the Headmistress or\nPrincipal (the occupant of the higher of the two offices, if they are two) of\nHeritage School and Ms Priyanka Agarwal, Advocate for the parents in WPA 5890\nof 2020. The committee will be empowered to engage an auditor or a firm of\nchartered accountants to assist the committee. The committee and the auditor\nappointed by the committee will look into the extent of reduction or exemption\nor the like sought and the feasibility thereof on the basis of the accounts of\nthe relevant school for the financial year 2019- 20 and the financial figures\nfor the first six months of the financial year 2020-21 as certified by the\nauditors of the relevant school. The two other members of the committee will\nassist the chairperson of the committee to arrive at an appropriate decision,\nbut the chairperson will have the final say therein.<\/li>
  12. The deposit\nobtained by the committee will be retained by the committee and Rs.800\/-\ntherefrom disbursed to the auditor or firm of chartered accountants for the\nfirst time the accounts of a particular school need to be assessed by the\nauditor or firm of chartered accountants. For every repeat exercise, meaning\nstudying the accounts of the same school from the second time onwards, Rs.500\/-\nper case will be paid to the auditors. The balance amount in the hands of the\ncommittee will be used for the purpose of secretarial and managerial services\nthe committee may be required to obtain. Any ultimate surplus has to be made\nover to court for the same to be dealt with in accordance with law. No\nremuneration is provided for any of the members of the committee and the court\nhopes that the members nominated graciously accept this onerous task in the\nlarger public interest. <\/li>
  13. By November 30,\n2020, the committee should indicate a dedicated e-mail account whereat the\nappeals against the decisions of the schools may be filed. The e-mail ID should\nbe communicated to Advocate-on-record for the petitioner in the lead matter for\nit to be disseminated to all parents and guardians. The money required to be\ndeposited will be tendered in cash to a secretary or manager as may be\nindicated by the committee. The application will be deemed complete only upon\nthe grievance in writing being forwarded to the relevant e-mail account and the\ndeposit being made. No application will be entertained without the deposit\nbeing tendered. Full accounts of the monies received and expenses incurred must\nbe maintained and presented in court, when sought. <\/li>
  14. All schools\nshould have the accounts for the financial year 2019-20 ready and also the\naccounts for the period of April to September, 2020 ready to be furnished\nwithin two days of the demand therefore by the committee.<\/li>
  15. Every application\nmade before the committee must clearly indicate the name and other particulars\nof the student involved and furnish the e-mail ID of the school and its\nPrincipal or the like for the committee to communicate with the school.<\/li>
  16. The committee\nmust Endeavour to dispose of every application within 45 days of the receipt\nthereof and the decision of the committee will be binding, subject to the\nrelevant schools having a right to apply to this court in the present\nproceedings for the reconsideration thereof on cogent grounds. Till a dispute\nbetween the parents or guardians of a particular student and the relevant\nschool is finally decided, no coercive action against the student may be taken\nby the school, whether to disallow the student from attending class in any form\nor taking any examination or for the candidature of such student being\nforwarded for any board examination (subject to the board\u2019s fees being\ntendered).<\/li>
  17. The quantum of\nfees to be charged for every month will be indicated by the individual schools\non any website and the notice-boards of the schools and informed to Advocate\nfor the petitioner in WPA 5890 of 2020 for the same to be put up on a website\nthat such petitioner must set up for this purpose. The fees payable for every\nmonth and the other periodic charges, like session fees, for the entire\nfinancial year 2020-21 should be indicated by the individual schools and put up\non the website to be set up by the petitioner in WPA 5890 of 2020 by October\n31, 2020.<\/li>
  18. By November 30,\n2020, the fees payable in terms of this order for the period up to November 30,\n2020 should be tendered on behalf of all students of the 145 schools. To the\nextent the parents or guardians of the students apply for further reduction or\nwaiver or exemption, they can pay the amount as possible by November 30, 2020\nand copies of the applications for further reduction or the like should be\ndeposited by such date.<\/li>
  19. With effect from\nDecember 8, 2020 all schools will be entitled to disallow students whose fees\nhave not been paid in full in terms of this order and those who have not\napplied for reduction or waiver or the like. However, schools should ensure\nthat this extreme step is taken only after exercising due care and caution. <\/li>
  20. No student will\nbe entitled to apply for a transfer certificate without the full quantum of\nfees in terms of this order being first discharged. <\/li>
  21. For the purpose\nof clarity, it is reiterated that fees payable by students to boards for\nexaminations or otherwise shall have to be paid in addition to the monthly fees\nand other charges in terms of this order and no waiver or reduction of the fees\nor charges payable to the boards may be sought or granted.<\/li>
  22. There will be no\nrefund of the fees already paid. However, to the extent fees have already been\npaid which are in excess of the directions contained herein, suitable\nadjustments will be made over the remaining months of the financial year,\nunless the parents agree in writing otherwise.<\/li>
  23. The expenses\nincurred for developing the infrastructure of the schools should not be passed\non to the students during the current financial year, though it will be open to\nrecover the same from the students from financial year 2021-22 onwards, if the\nphysical functioning resumes by March 31, 2021. <\/li>
  24. The cap of five\nper cent of the revenue over expenditure for the year 2020-21 will be subject\nto the exception that it may exceed the five per cent only if the general\nreduction afforded to the parents is not availed of by any of the parents and\nno student in financial distress has been denied additional concession despite\nbeing worthy. <\/li>
  25. No unusual\nexpense should be incurred during financial year 2020-21 and no development or\ninfrastructure expense should be incurred unless absolutely unavoidable. <\/li>
  26. These directions\nwill continue till such time that physical functioning of the schools resumes\nin the normal course.<\/li>
  27. The above\ndirections for any form of concession will not apply to any of the 145 schools\nwhere the average monthly fee (calculated on an annual basis over the year from\nApril, 2020 to March, 2021) is less than Rs 800\/-. However, such schools may\nvoluntarily take such measures as deemed fit. The exception carved out is\nperceived to be reasonable since the quantum of concession in such cases will\nbe nominal and the elaborate exercise may be unnecessary as the extent of\npossible profit is unlikely to be significant. But the monthly fees payable in\nsuch cases must be put up on the notice-boards and websites as in the other\ncases and without exception. <\/li><\/ol>\n\n\n\n

    The other private unaided schools in the State should also abide by the directions mutatis mutandis, particularly since the matter has been heard extensively and as public interest litigation. However, only the disputes pertaining to the 145 schools included in WPA 5890 of 2020 may be referred to the committee constituted herein; and not the disputes pertaining to other private unaided schools in the State. <\/p>\n\n\n\n

    .<\/p>\n\n\n\n

    .<\/p>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    The Calcutta High Court on Tuesday, 13 October 2020, slashed the fees charged by private schools in the State by 20%. “From the month beginning April, 2020 till the month following the one in which the schools reopen in the physical mode, all 145 schools will offer a minimum of 20 per cent reduction ofRead more about CALCUTTA HIGH COURT ORDERS MINIMUM 20% REDUCTION IN PRIVATE SCHOOL FEES STATING THEY HAVE INCURRED LESS EXPENDITURE DURING COVID19 LOCKDOWN<\/span>[…]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-299","post","type-post","status-publish","format-standard","hentry","category-ethicallegal"],"_links":{"self":[{"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/posts\/299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/comments?post=299"}],"version-history":[{"count":3,"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/posts\/299\/revisions"}],"predecessor-version":[{"id":303,"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/posts\/299\/revisions\/303"}],"wp:attachment":[{"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/media?parent=299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/categories?post=299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ethicallegal.in\/blog\/wp-json\/wp\/v2\/tags?post=299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}