Transfer Certificate Is Not A Tool For Schools To Collect Arrear Fees; Harassing Children Over Non-Payment Or Delayed Payment Of Fees Is An Offence: Madras HC

The Court’s decision stemmed from an appeal by the Tamil Nadu government challenging a previous judgment that downplayed the negative implications of noting fee arrears on TCs.

The Court, while noting that TC is not a mandatory document, urged the Government to make requisite amendments to the Tamil Nadu Education Rules and the Code of Regulations for Matriculation Schools in Tamil Nadu in this regard. The court also directed Government to issue a statewide circular instructing schools not to demand TCs from previous institutions for the admission of new students.

A Division Bench of Justice SM Subramaniam and Justice C Kumarappan said, “a TC is not a tool for the schools to collect arrear fees from the parents or to weigh the financial capacity of the parents. TC is a personal document issued in the name of the child. Schools cannot put their own problems on the child by making unnecessary entries on the TC. Payment of tuition fees is the duty of the parents towards the schools. Any default in the same ought to be recovered from the parents by the school concerned in the manner known to law. Instead making entries of non-payment of fees on TC in the name of the child is sheer humiliation for the child. What will the child do if the parents failed to pay the fees? It is not their fault and to stigmatise and harass the child is a form of mental harassment under Section17 of the RTE Act.”

Special Government Pleader (Education) UM Ravi Chandran appeared for the Appellants and Senior Counsel G Sankaran appeared for the respondent.

The Court also emphasized that schools must refrain from making unnecessary entries related to unpaid or delayed school fees on Transfer Certificates. The Court said, “It is the duty of the school to understand the emotional challenges faced by the child during such times and instead of burdening them, it is a time to lend their care and assistance to the child. It is a traumatic experience for the child when it receives a TC with stigmatising remarks on non-payment or delayed payment of fees. Such action by the school authorities attracts section 17 of the RTE Act.”

They further urged the Tamil Nadu government to consider amending the state's Education Rules and Code of Regulation for Matriculation Schools to align with their directions and ensure compliance with the Right to Education (RTE) Act. The Court added, “This Court would also recommend that requisite amendments be made to the Tamil Nadu Education Rules and the Code of Regulations for Matriculation Schools in Tamil Nadu to amend the provision obligating the need for TC at the time of admission into schools. Any clause in the Rules or the Code framed by the State to that extent which is repugnant to the provisions of the RTE Act which is an Act of the Parliament shall be treated as null and void.”

The High Court underscored that withholding a student’s TC until all fee arrears are settled, or recording non-payment of fees on the TC, violates the RTE Act and constitutes mental harassment under Section 17 of the Act.

The Court further highlighted that the TC is not a mandatory document as per Section 5 of the RTE Act. The Court said, “Proviso to sub-section 2 of Section 5 stipulates that delay in producing TC shall not be a ground for delaying or denying admission in schools. The significance attached to a TC has been watered down through this provision. Hence the production of TC is not mandatory per se. It is an accessory rather than a necessity.”

The Court added, “The schools should not involve the children in the fee collection process. It is not necessary for the child to know the details regarding payment of tuition fees. Such information should be kept away from the children to enable them to grow in a happy environment, free from stress. Children must be given an environment which is free from these burdens, allowing them to grow in a happy space. Schools should strive to provide a happy and supportive environment for children.”

The Court further noted that harassing children over non-payment or delayed payment of fees amounts to cruelty and constitutes an offence under Section 75 of the Juvenile Justice (Care and Protection of Children) Act, 2015. "The schools have every right to initiate appropriate action for recovery of the outstanding fees, if any, from the parents in accordance with law. But in the process, harassing or punishing the the child over default in payment of fees is an offence and falls within the contours of Section75 of the JJ Act.", it said.

Cause Title: The State of Tamil Nadu & Ors. v. All India Private Schools Legal Protection Society

Appearance:

Respondent: Senior Counsel G Sankaran and advocate S Nedunchezhiyan