Giving a new twist to the fee-cut controversy, the Supreme Court on Thursday issued notices to all the six Indian Institutes of Management, but made it clear that it would examine locus standi of petitioners to challenge the Centre's decision drastically reducing the annual fee of the business schools from Rs 150,000 to Rs 30,000.

"We will first look into the locus standi of petitioners, peruse the balance sheets of the IIMs and ascertain the views of the IIMs," a three-judge Bench headed by Chief Justice V N Khare said and posted a PIL for further hearing on April 16.

Appearing for the Centre, Additional Solicitor General Mukul Rohtagi countered the petitioners, Sandeep Parekh and others, by saying that "when five out of the six IIMs have accepted the human resource development ministry's decision on fee cut, who are these petitioners to question it."

• The IIM Controversy: Complete Coverage

"The government is agreeable to the suggestion of the IIM-Ahmedabad Chairman N R Narayana Murthy's suggestion for a dialogue on the issue and will start the process immediately after the completion of the elections," he said.

Completing his submission, Rohtagi asked: "If after the dialogue even the IIM-A accepts the fee cut decision, that would be the end of the matter."

However, appearing for the petitioner, senior advocate Harish Salve questioned the motive of the government in slashing the fee and said public interest demands that the government unfolds its entire game plan -- whether it was to dilute the autonomy of these premier institutions or not.

Countering Salve, Rohtagi said: "If the premier institutes headed by eminent people do not see any game plan and agree to the fee-cut decision, who are these petitioners and what is their locus standi to challenge it."

The Bench, cutting the long debate short, posted the matter for further hearing on April 16 and said on that day "we will look into the locus standi of the petitioners as well the balance sheet of the institutes for the last 10 years."

When Rohtagi said that the IIMs should not be impleaded as parties to the petition at this stage, the Bench clarified that they have not been impleaded but the court was issuing notice to ascertain their views.

The Centre said that the government was fulfilling its commitment to make good the shortfall in the funds of the IIMs arising from the cut in the fees and added that recently it has given Rs 4 crore (Rs 40 million) to one of the IIMs and Rs 1 crore (Rs 10 million) each to two other IIMs.

The Apex Court had earlier disposed of the PIL when the government assured it that the February 5 decision to reduce the fees would not amount to interference in the functioning of the institutes.

As a debate raged across India over the controversial decision, the petitioners had moved the court seeking solemn assurance from the government on affidavit not to interfere with the autonomy of these premier B-schools.

When the government stood by its earlier oral commitment and refused to give anything in writing, the Apex Court revived the PIL for full-fledged hearing.