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Supreme Court of India· 03 September 2026

Is a payment required alongside a Performance Appraisal Report a process fee that a regulator may impose as an incidental power?

THE NATIONAL COUNCIL FOR TEACHERS v. ASSOCIATION OF NCTE APPROVED COLLEGES
2026 INSC 953
Coram: Justice Pamidighantam Sri Narasimha · Justice Alok Aradhe
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Answer

The payment required from institutions filing the Performance Appraisal Report is, in the Court's own words, really in the nature of a process fee — itself an incidental and ancillary power that the regulator must have, just as its power to call for the Report is incidental to its regulatory functions under the NCTE Act.

Headnote

National Council for Teacher Education Act, 1993 — s.12(k) — s.19 — Right of Children to Free and Compulsory Education Act, 2009 — s.23 — Performance Appraisal Report — Executive Committee's regulatory power — Judicial review of statutory regulators — National Council for Teacher Education Act, 1993 — s.12(k) — Executive Committee's power to call for PAR — Held: Section 12(k) of the National Council for Teacher Education Act, 1993 empowers the Council to evolve a performance appraisal system for recognised institutions. Once the Council deliberates and authorises a proforma, the Executive Committee may implement it through its Member Secretary. (¶21) National Council for Teacher Education Act, 1993 — Incidental and ancillary regulatory power — Held further: A regulatory measure can be incidental and ancillary to a regulator's duties and functions even without specific empowerment under the statute. The Executive Committee's Public Notice calling for the Performance Appraisal Report falls within this incidental power. (¶22) Judicial Review — Scope of review over statutory regulators — Held further: In judicial review of a statutory regulator's action, a High Court must examine only whether the authority acted in violation of a mandatory provision or transgressed its vested power. Courts cannot adopt a technical or a pedantic view of the regulator's action. (¶10, 24) National Council for Teacher Education Act, 1993 — Process fee as incidental regulatory power — Held further: The payment accompanying the Performance Appraisal Report is in the nature of a process fee, itself an incidental and ancillary regulatory power. The Public Notice was legal and valid; the appeal is allowed and the High Court's judgment is set aside. (¶25, 26)

In the Court's own words
Paragraph 25The Public Notice, apart from requiring the Teacher Education Institution to upload Performance Appraisal Report on the designated portal also required the institutions to make certain payments. This payment is really in the nature of process fee which is again an incidental and ancillary power that the regulator must have. Though it was indicated to us that a decision on the impugned Public Notice dated 22.09.2019 is unnecessary as subsequently, in the 53rd meeting the procedural and technical problem was rectified, we found it necessary to give our judgment on this issue as there must be clarity about the power and functions that statutory regulators should exercise. In conclusion, we hold that the Public Notice issued by the Member Secretary of the Executive Committee is legal and valid and the Division Bench of the High Court committed an error in setting aside the said Public Notice. The Council as well as the Executive Committee is within its jurisdiction to call TEIs to upload Performance Appraisal Report.
Acts & Sections
s.12(k) National Council for Teacher Education Act, 1993s.19 National Council for Teacher Education Act, 1993s.23 Right of Children to Free and Compulsory Education Act, 2009s.20 National Council for Teacher Education Act, 1993s.2(e) National Council for Teacher Education Act, 1993s.2(l) National Council for Teacher Education Act, 1993s.3 National Council for Teacher Education Act, 1993ss.14-17 National Council for Teacher Education Act, 1993s.31 National Council for Teacher Education Act, 1993s.32 National Council for Teacher Education Act, 1993

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Also decided in this judgment
Can the Executive Committee under the NCTE Act call upon institutions to file a Performance Appraisal Report once the Council has authorised a proforma?Can a statutory regulator's power to call for a Performance Appraisal Report be incidental and ancillary to its duties without specific empowerment under the statute?When a High Court reviews a statutory regulator like the NCTE, must it examine only whether a mandatory provision was violated or power was transgressed?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections