School cannot charge you for the next academic year in the month of March,.circular issued is illegal and can be challenged in a civil court and you can seek the recovery of the fee, compensation for the harassment , and the delay in getting admission and followed financial loss in a consumer forum or in a civil court .
There can not be any agreement or rules which force you to pay the fee for the next year before the scheduled period for the payment of fee.
Since CBSE affiliated schools don't come directly under District Education Officer.
Legal steps will take time, so before taking the legal step you should obtain TC by complying the demands of the school, otherwise it will unnecessarily delay your children's next yea admission in other schools.Then sue the school for recovery of the fee paid and compensation.
you should send the school a legal notice , most likely a legal notice through a lawyer will serve your purpose.
In case the management continue to be stubborn file complaint in the consumer forum for their
The copy of the legal notice be send to the CBSE board office as well with a covering letter stating the facts, so that the affiliation of the school will be in trouble.
There is nothing legal in their stand and demand but you cannot afford the time on the legal process and allowing the child in the same school while dispute is on is not good.so take a practical decision to get the TC and take legal action against the school , you will be bale to get your legal expenses and cost from them in the court.