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WHEN A STUDENT CAN ASK FOR REFUND
WHEN A STUDENT CAN ASK FOR REFUND
A great deal had been done by the Hon’ble SC when this issue
was dealt in great details by in the matter of Usmania Islamia Academy Of Education V State Of
Karnataka AIR 2003 Supreme Court 3724, Writ Petition (C) No. 350 Of 1993 decision on
14.08.2003by the bench comprising V N Khare C.J.I.S.N Variava ,K.G Balakrishnan And Finaly Held :
1.
professional institutions do
not become auction houses for the purpose of selling seats
2.
Collection of fee in advance for entire course i.e.for all the year not
permissible
‘An educational institute can only charge prescribed fee for one
semester/year
3.
It may require that student to
give a bond /bank guarantee that the balance fees for the whole year shall be
recovered from him even if the student left in the midstream”
4.
for some reason fees have
already been collected for a longer period ,the amount so collected shall be
kept in a fixed deposit in nationalized bank against which no loan or advance
may be granted so that the interest accrued there upon may ensure to the
benefit of the student concerned
5.
Institute cannot retain
original certificates or marks sheet once student leaves the institute
6.
UGC issued guidelines
accordingly
Supreme Court ruling in the year 2004 in the matter of Bhupesh Khurana v Buddha Dental College & hospital holding college unfair for their misleading information about the college. This theory is being followed by the National Commission till date .
In the above case of Brilliant Tutorials Pvt. Ltd. vs. Ashwani Verma,
2011 CTJ 288 (CP) (NCDRC) where a complaint was opposed, interalia, on the ground that the
fees paid were non refundable and the respondent was bound by its terms
and conditions.
“…The principles laid
down by the Apex Court would apply with equal force to the training institutes
who collect fees in advance, though not due, in order to prepare the students
for various examinations. Charging fees in advance beyond the current
semester/year would certainly amount to unfair trade practice and the same
cannot be countenanced…”
Sehgal
School of Competition Vs. Dalbir Singh, 2009 (3) CPC 187, there existed such a condition in the brochure issued by the
petitioner from whose side, an argument was advanced that the fee was non
refundable or non-transferable under any circumstances.
Court held- Fees once paid will not be refunded is unconscionable
and unfair and therefore not enforceable.
Pie Solutions and
Systems Ltd. versus Daya Shanker Mishra and ors. I(2007)CPJ 115 (NC) Hon’ble National Commission held that receiving
the fee without any service provided amounts to deficiency in services
Sri Chaitanya
educational Institute v/s Govind Prasad Rath 11 2016 CPJ 35 NC
decided on 7.1.2016 –
District forum allowed complaint and
directed to refund fee due to withdrawal from institute having supplied
unhygienic food. Opposite party refused
refund and argued before the National Commission that the seat remained
unfilled but National Commission rejected the plea and upheld District Forum
order.
REASON SHOULD BE VALID FOR REFUND
1 Institute not starting course or
faculty not appointed or leaves every now and then.
2 Institute transferred elsewhere from
its original office.
3. Family of student shifted due to job transfer.
4Student gets Admission in better course.
5 Home Tution –fee not refundable in
case tutor gives agreed hours and teaches the student regularly . In such cases
it is difficult to say that teacher was negligent, it can be that student is
careless, not hard working or not capable enough to go with selected course
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