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CBSE Schools are affiliated to the Central Board of Secondary Education, which is registered under Societies Act and governed under a set of Bye-laws framed by CBSE.

CBSE Schools would not come within the definition of "private school" as defined under Section 2(j) of Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009. Explanation 1 thereof, defining "Code of Regulation" includes only the Code of Regulations for Approved Nursery and Primary Schools, Code of Regulations for Matriculation Schools and Code of Regulations for Anglo-Indian Schools", and does not include CBSE Schools and the provisions of the Act completely exclude the applicability of T.N.Schools Fee Act, 2009 to CBSE Schools.

Once "No Objection Certificate" is issued by the State Government and after affiliation to CBSE, State Government has no further control and CBSE schools are governed by Bye-laws of CBSE. CBSE Bye-laws provide for complete Code in management of schools and CBSE schools are subject to regular monitoring by the Board. If the provisions of Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009 are made applicable to CBSE schools, it will amount to dual control affecting the management of the school and academic excellence.

38. Section 2(j) of T.N.Schools Fee Act, 2009 defines "Private School" as "......... a school established and administered or maintained by any person or body of persons and recognised or approved by the Competent Authority under any law or Code of Regulation." As discussed earlier, for getting affiliation from CBSE, schools obtain NOC from the competent authority/Director of School Education. Since formal recognition of the State Government/ issuance of NOC are the essential pre-requisites for affiliation of the Schools to CBSE, CBSE affiliated schools are the schools recognised or approved by the authority under law within the meaning of Section 2(j).

74. Again, in a batch of cases, in (2004) 5 SCC 583 - Modern School vs. Union of India and others, the Supreme Court had the occasion to consider the questions framed by it with reference to Delhi School Education Act, 1973. Reiterating the decision in Islamic Academy of Education case, the Supreme Court disposed of the appeals filed by various school Managements holding that the Director of Education can regulate the fees in accordance with Section 17(3) of Delhi School Education Act, 1973 and the rules framed thereunder. The decisions of the Apex Court in T.M.A.Pai Foundation case, Islamic Academic of Education case and Modern School case are clear that the private educational institutions though have a right to fix their own fees to be collected from the students, such fixation of fees should be on taking into account the funds required to run the institution and to provide facilities necessary for the benefits of the students But under no circumstances, the charging of fee should amount to profiteering or collection of capitation fee. The consistent view taken by the Supreme Court is that under no circumstances the levy of fee should amount to profiteering or collection of capitation fee. On behalf of the writ petitioners, it was contended that CBSE affiliation Bye-laws is a self contained Code, which contain provisions interdicting the CBSE schools from charging the capitation fee or collecting exorbitant fee. It is the further contention of the writ petitioners that in case of complaints of excessive fee CBSE can disaffiliate the schools.