The court came down heavily on the city government, especially the director of education for "failure" to get accounts of private recognised schools audited from time to time. The court added that it was the duty of the government, especially the director of education, to prevent the commercialisation of schools.

The court said a special judicial committee headed by a retired High Court judge would examine the accounts of each school. "We do not think it will be desirable at present to permit any increase than what has already been permitted by an interim order in December last year," the court added. The court ruled that each private school hold a meeting with government representatives and members from parents and teachers' bodies before deciding on the fee hike and added that no institution will be allowed to recover capital expenditure on properties by the societies.

Justices Y.K. Sabharwal and C.K. Mahajan in their judgement on a public interest litigation (PIL) and a bunch of writ petitions by some private schools, ordered the appointment of a judicial committee to monitor future fee-structure and other matters concerning private schools. The committee will be headed by retired High Court judge Justice Santosh Duggal. She will appoint two members to the committee, an expert each from the field of accounts and education.

It said each private school in the Capital should appoint separate committees with representations from the management and parents and teachers bodies to look into the individual matter pertaining to fee-structure. The court further said that societies running the private schools will not be allowed to transfer funds from one institution to another and to its accounts as the Act regulating private schools does not allow such transfers.

The committee would determine on case-to-case basis after examination of the school records whether further increase of tuition fee and other charges were justified or not, the court ruled.