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Rajeev Gandhi Memorial College of Engineering and Technology v. State of Andhra Pradesh

Civil Appeal · 2020 INSC 454Decided 14 Jul 2020
Civil Appeal No. 2739 of 2020
Justice Rohinton Fali Nariman · Justice Navin Sinha · Justice B.R. Gavai

Background

Two private engineering colleges in Andhra Pradesh had their student fees fixed for the 2016-2019 block period, and when seeking an increase for the next block, the state government instead issued an interim order simply continuing the old, lower fees without following the proper fee-fixation procedure under the governing Act. The colleges challenged this before the Andhra Pradesh High Court; a single judge found their challenge prima facie valid and suspended the government's order, but a Division Bench of the High Court later diluted that relief to a partial, conditional fee increase secured by bank guarantees.

Decision Breakdown

The Supreme Court held that the state's interim fee order had rightly been found illegal by the single judge for bypassing the statutory fee-fixation procedure (Rule 4), which requires proper scrutiny of each college's costs and a hearing before any fee is fixed or altered. It held that the High Court's Division Bench should not have interfered with and diluted the single judge's interim order, allowed the colleges' appeals, set aside the Division Bench's order, and restored the single judge's order. The Court directed that this arrangement would continue to govern fees from 2019 onward until a final fee is properly fixed under the applicable Act and Rules, noting a new regulatory commission had since been set up for that purpose.

Lesson Learnt

Government authorities fixing fees or similar regulated charges must follow the specific statutory procedure (scrutiny, hearing, reasoned decision) laid down for that purpose: a shortcut administrative order that skips this process can be struck down as illegal even at the interim stage.

Official source (sci.gov.in)View Judgment (PDF)

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