WHEN A STUDENT CAN ASK FOR REFUND OF FEE FROM THE INSTITUTE

 

After the commercialization of education system ,it has become a real difficult job to collect all the true data and the knowhow of the institute  inspite of the fact that internet has made things easier to access to the informations.Students are  still struggling due to the fact that they often do not get the course of their choice in one go .They have to hunt for two or three things together at a time by keeping their choice open to click one out of  those . The real problem comes when they have to invest a huge amount in opting for admission even if the option offered to them is not the first  choice but have to wait for the better one. Very often it is seen that student once gets admission in the college or educational institute and thereafter if  gets better choice later on,he has to shellout more money for admission to the course of his choice without knowing as to whether he can get back his fee refunded  deposited earlier or not .Since it has become a very common affair ,number of cases are pouring into consumer courts for refund of fee on the plea that money paid for services cannot be retained by the service provider in case services not rendered or services not obtained .

Here is the real question to be  decided as to  under what circumstances court/forum can order for refund of fee to the student and what are the situations when institute/college is entitled to retain the same.

The basic principal of law is to benefit the person who has been deprived of his genuine right.If a student gets admission after all research and later on says he cannot cop-up with the specific course or does not like the college ,friends and teachers without pinpointing or proving fault on their part –he has no case to ask for refund on these grounds .But if he has got a good reason to shift from the institute to other one for some betterment ,he should inform the institute well in advance so that the seat does not go vacant .In such a situation if student has not taken any classes by informing prior to start of the course , in number of cases consumer forums have allowed refund of entire amount of fee to the students leaving admission fee. Sometimes ,student joins the classes and thereafter gets better offer and he shifts in between .In such circumstances if court finds justification of withdrawal in the mid ,can order of proportionate refund confirming the fact that the seat so got vacated is filled up by the institute .College is entitled to retain the fee for the period  services had been rendered .

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 :

Collection of fee in advance for entire course i.e.for all the year not permissible

It is further explained ‘an educational institute can only charge prescribed fee for one semester/year if any institute feels that any particular student may leave in midstream[and the seat would lie vacant for the remaining years ] then at the highest 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” 

Further “safeguard has to be provided for so that professional institutions do not become auction houses for the purpose of selling seats .The institution shall charge fee only for one year in accordance with the rule and shall not charge for the entire course… however if 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 bankagainst which no loan or advance may be granted so that the interst accrued there upon may ensure to the benefit of  the student concerned’

 

 On its basis, the Hon’ble National Commission in the case Brilliant Tutorials Pvt. Ltd. Vs. Ashwani Verma 2011 CTJ 288 (CP) (NCDRC) (Supra) held as follows: -

“…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…”

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 revision petition filed by the Institute was also dismissed by the Hon’ble National Commission SimilarlyIn the case 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. His contention was not accepted by the learned District Forum which held that any clause saying that fees once paid will not be refunded is unconscionable and unfair and therefore not enforceable. The appeal filed by the petitioner was dismissed and the revision petition was also dismissed by the Hon’ble National Consumer Disputes Redressal Commission, New Delhi (hereinafter to be referred as National Commission).. In the case reported as I(2007)CPJ 115 (NC) Pie Solutions and Systems Ltd. versus Daya Shanker Mishra and ors. Hon’ble National Commission  held  that receiving the fee without any service provided amounts to deficiency in services Again this question arose in the case Further,In the case Atam Parkash Khattar Vs. Commissioner & Secretary to Govt. of Haryana, Civil Writ Petition No.13308 of 2009 decided on 21.7.2010 by the Hon’ble High Court of Punjab and Haryana, it was observed that educational institutions cannot be permitted to behave like a business establishment who work with profit motive.  It was held that there was no justification on their part in retaining the substantial fee paid by a student who decides not to pursue his/her studies in the said institution. In that case, fee was ordered to be refunded by the petitioner. In another case Sehgal School of Competition Vs. Dalbir Singh, 2009 (3) CPC 187, the Hon’ble National Commission (in Para No.7) held that it was unjust to collect the fees for the total period of the course. In another case Nipur Nagar Vs. Symbiosis Institute of International Business, I (2009) CPJ 3 (NC), the Hon’ble National Commission after quoting the public notice issued by the University Grants Commission, held that the institute was unfair and unjust in retaining the tuition fee even after the student withdrew from their institute.

It is ample clear from the above referred cases by the Apex commission and the guidelines by the Hon’ble Supreme court on the subject through its landmark judgements that no institute can retain the fee paid by the student if services not rendered .Their plea of terms specified in the prospectus holds no water any more.

 

LAW ON EDUCATION

 

In the field of education also UGC has issued certain guidelines for the educational institutes .A public notice was issued by UGC on 23.4.2007 with the following instructions-

“The commission is of the view that  it would not be permissible for the institutions /universities , to retain  the school leaving certificate ,marksheets,caste certificate and other documents in original.”

It has been further directed that

“the entire fee collected from the student after a deduction of processing fee not more than Rs 1000/- shall be refunded to the student /candidate withdrawing from the programme .”

The similar notification has been issued by AICTE[All India council of technical education] on 19.4.2007 with the similar directions to the institutes/universities imparting technical education

 

Dr Prem Lata

Member ,Consumer Forum

 

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