The Supreme Court has advised the private schools owners that instead of filing cases in the court, they should lobby with the legislators regarding increase in 5% cap defined in the provincial laws. Chief Justice Asif Saeed Khan Khosa said that weight be attached to the legislators' wisdom as they have decided about raise in schools fee in accordance with their intelligence. He observed there is scheme in the Sindh and Punjab laws regarding regulating the private schools fees and the fee structure is determined at the time of registration of schools, he added.
A three-judge bench, headed by Chief Justice Asif Saeed Khan Khosa, was hearing review petitions regarding high schools' fee. The apex court on January 16, 2019, directed the private schools to reduce fee by 20% and this amount shall be made on amounts in excess of Rs 5000, which essentially means that notwithstanding the total amount of fee, the first Rs 5000 is exempted from reduction of 20% and such reduction would only be applicable to amounts in excess of Rs5000 per month.
The court noted that under the Punjab Private Educational Institutions (Promotion and Regulation) Ordinance, 1984 and Sindh Private Educational Institutions (Regulations) Ordinance 2001, a school charging fee at the rate of Rs 4000 per month or above shall not charge the fee at a rate higher than 5% of the fee charged for the class during the previous academic year, but above than 5% will get approval of the regulatory body.
The licence in Sindh is for three years, while in Punjab it is for five years. After that the schools have to apply for the registration on the completion of the tenure or renewal of licence. The Chief Justice said that at the time of registration or its renewal, the schools get the opportunity to have new fee structure and the schedule.
Makhdoom Ali Khan, representing the owners of private schools, argued if gas charges are increased 80%, as there was news on media about it, then asking the schools to increase only 5% will be unfair. The source of income of private schools is fee, adding with that they pay the salaries to the teachers and staff, rent of the building and utilities bills, and meet other expenses.
The Chief Justice said if they want the capping more than 5% then they should lobby with the legislators to change the law. The Chief Justice stated that most of the petitioners (parents) agreed to the cap (fixed percentage). He asked the counsels of the private schools if they want to change the law then they should convince the legislature, adding the legislators are their representatives in the Assembly.
Justice Khosa said, "You [schools] are in the business and making profit. Huge profits are made therefore they have opened 100 schools." He asked the lawyers, "Let the business people think about it instead of you [lawyers] embroil in legal and constitutional issues."
Justice Ijaz observed that Article 18 of Constitution does not talk about fixed restriction but reasonable restriction. He noted that the State comes in the picture at three stages i.e. licensing, free competition and monopoly. Makhdoom Ali Khan contended that subject to qualification in Article 18 means the condition, adding if the State likes to regulate the business then there should be reasonable restrictions.
The Chief Justice responded that they should ask the government to make revision about the reasonableness and unreasonableness. Justice Ijaz said the government has to maintain the balance. The safety valve is provided in the laws, if the owners think it is unreasonable then they should re-apply or renew their licence.
The Chief Justice observed that it is in the control of the school owners to control the expenses. He further said if the owners say the increase in the fee is not commensurate with the inflation then they should also think about the parents' capacity to pay the fees. The hearing was adjourned until today (Thursday).
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