Court case(1993) 1 SCC 645

Private medical and engineering colleges in Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu challenged State laws regulating admissions and prohibiting capitation fees. They argued that they had a fundamental right under Article 19(1)(g) to run educational institutions as a business. On the other side, the decision in Mohini Jain v. State of Karnataka (1992), which had declared an unlimited fundamental right to education under Article 21, was questioned as going too far. The matter was placed before a Constitution Bench.

Jeevan Reddy J, for the majority, held that the right to education flows directly from the right to life under Article 21, but it is not an absolute right at every level. Reading Article 21 with Articles 41 and 45, every child has a fundamental right to free education until the age of fourteen; beyond that the right is subject to the limits of the economic capacity and development of the State. Mohini Jain was approved on principle but its unlimited formulation was disapproved. Education is not "trade or business"; the right to establish an institution is at best an "occupation" which cannot be run for profit, and capitation fees are illegal. The Court framed a scheme of "free seats" and "payment seats" for private professional colleges.