The Supreme Court on Friday stayed the Karnataka High Court's December 1, 2022 judgement that had quashed some of the provisions of the Karnataka Education Act 1983, which granted power to the state government to regulate the fees and appointments of private unaided schools.
Acting on a plea filed by the state government, a bench of Justices B R Gavai, J B Pardiwala and S V Bhatti issued notice to the Karnataka Unaided Schools Management Association and others
Appearing for the state government, senior advocate Devadatt Kamat contended that the High Court failed to consider the previous Supreme Court's rulings on the subject and instead relied upon on the observations in the TMA Pai judgement, which were misplaced and out of context.
Dealing with a writ petition by the association of unaided schools, the High Court had held that maximum autonomy has to be with the management with regard to administration, including the right of appointment, disciplinary powers, admission of students and fees.
It has also declared that the private unaided educational institutions were entitled to fix their fee structure, which may be reasonable.
"In the case of TMA Pai Foundation, it was held that "rational fee" structure should be adopted by management, which would not be entitled to charge capitation fee. Further, it is held that appropriate machinery can be devised by the state or university to ensure that no capitation fee is charged and there is no profit earning, though a reasonable surplus for furtherance of education is permissible," the state government said.
"Hence, the judgment by the High Court is contrary to TMA Pai Foundation case decision," it added.