NARAYANA MEDICAL COLLEGE versus THE STATE OF ANDHRA PRADESH & ORS.

Citation: [2022] 8 S.C.R. 777 · Decided: 07-11-2022 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Dismissed

Judgment (excerpt)

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   [2022] 8 S.C.R. 777
777
NARAYANA MEDICAL COLLEGE
v.
THE STATE OF ANDHRA PRADESH & ORS.
(Civil Appeal Nos. 8185-86 of 2022)
NOVEMBER 07, 2022
[M. R. SHAH AND SUDHANSHU DHULIA, JJ.]
Education/Educational Institutions:
Andhra Pradesh Admission and Fee Regulatory Committee
(for Professional Courses offered in Private Un-Aided Professional
Institutions) Rules, 2006: r. 4 – Fixation/enhancement of tuition fee
payable by MBBS students – On facts, on basis of the report of the
Admission and Fee Regulatory Committee-AFRC, the State
Government issued G.O. dated 18.06.2011 fixing and enhancing
the fee for the academic years 2011-12 to 2013-14 – However, for
the subsequent years, 2017 to 2020, without waiting for the report
from the AFRC and on the representations made by the private
medical colleges, the State Government issued G.O. dated
06.09.2017 and enhanced the tuition fee payable by the MBBS
students, at an exorbitant rate of Rs. 24 lakhs per annum, almost
seven times the tuition fee notified for the previous block period –
In writ petitions, the said G.O. dated 06.09.2017 set aside by the
High Court, and issuance of direction that the enhanced fee paid
to be refunded to the students – On appeal, held: Fixation could
have been only on the recommendations/report by the AFRC by
virtue of r. 4 of the Rules – Thus, the G.O. enhancing the tuition fee
was wholly impermissible, arbitrary and only with a view to favour
and/or oblige the private medical colleges – State could not have
issued the G.O. enhancing the tuition fee for private medical colleges
dehors the recommendations of the AFRC – Thus, the High Court
has rightly quashed and set aside G.O. dated 06.09.2017 –
Furthermore, to enhance the fee to Rs. 24 lakhs per annum i.e.,
seven times more than the fee fixed earlier was not justifiable at all
– Education is not the business to earn profit – Tuition fee shall
always be affordable – Determination of fee/review of fee shall be
within the parameters of the fixation rules and shall have direct
nexus on the factors mentioned in r. 4 – Thus, the High Court did
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SUPREME COURT REPORTS
[2022] 8 S.C.R.
not commit any error in directing the refund of the balance amount
after adjusting the fee paid pursuant to the earlier determination
as per G.O. dated 18.06.2011.
P.A. Inamdar and Ors. Vs. Stateof Maharashtra and
Ors. (2005) 6 SCC 537 : [2005] 2 Suppl. SCR 603 –
followed.
Case Law Reference
[2005] 2 Suppl. SCR 603
 followed
 Para 2
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 8185-
8186 of 2022.
From the Judgment and Order dated 24.09.2019 of the High Court
of Judicature at Hyderabad for the State of Telangana and the State of
Andhra Pradesh in W.P. No. 33656 of 2018 and W.P. No. 8210 of 2019.
K.V. Viswanathan, Sr. Adv., Ramesh Allanki, Sidhant Buxy, Gajji
Ramesh Babu for M/s. Ramesh Allanki and Associates, Advs. for the
Appellant.
Basava Prabhu S. Patil, Sr. Adv., Chinmay Deshpande, Parikshit
Angadi, Anirudh Sanganeria, Balaji Srinivasan, Ms. Aakriti Priya, Shiva
Krishnamurti, Ms. Gauri Pasricha, Devanshu Behl, Krishna Dev
Jagarlamudi, Ms. Inderdeep Kaur Raina, Ms. Pallavi Dewakar, M/s. M.
Rambabu and Co., Mahfooz Ahsan Nazki, Polanki Gowtham, Shaik
Mohamad Haneef, T. Vijaya Bhaskar Reddy, K.V.Girish Chowdary, Ms.
Rajeswari Mukherjee, Ms. Niti Richhariya, Ms. Aruna Gupta, Syd Ahmad
Naqvi, Inklee Barooah, Advs. for the Respondents
The Judgment of the Court was delivered by
M. R. SHAH, J.
Leave granted.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court of Andhra Pradesh at Amravati in
Writ Petition Nos.33656/2018 and 8210/2019 the medical college/
institution has preferred the present appeals.
2. Pursuant to the judgment and order passed by this Court in the
case of P.A. Inamdar and Ors. Vs. State of Maharashtra and Ors.;
(2005) 6 SCC 537, the State of Andhra Pradesh framed Rules called
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the Andhra PradeshAdmission and Fee Regulatory Committee (for
Professional Courses offered in Private Un-Aided Professional
Institutions) Rules, 2006 (hereinafter referred to as the Rules, 2006).
Rule 4 of the Rules, 2006 is with respect to the fee fixation. Following
the report of the Admission and Fee Regulatory Committee (hereinafter
referred to as the AFRC), the State Government issued G.O. dated
18.06.2011 fixing and enhancing the fee for the academic years 2011-12
to 2013-14. However, for the subsequent years, more particularly, 

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