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2009 Supreme(SC) 267
2009(2) Supreme 378
SUPREME COURT OF INDIA
Dalveer Bhandari and Harjit Singh Bedi, JJ.
Buddhist Mission Dental College & Hospital — Appellant
versus
Bhupesh Khurana & Others — Respondents
Civil Appeal No. 1135 of 2001
Decided on : 13-02-2009
For the Appellant :Vijay Kumar, C. Jay Rai, Pankaj Kumar, Vishwajit Singh, Advocates.
For the Respondents:Sunil Kumar, Sr. Adv., Awanish Sinha, S.K. Mohanty, C.S. Yadav, Himanshu Shekhar, Irshad Ahmad (N.P.), Advocates.
IMPORTANT POINT
Imparting of education by an educational institution for consideration falls within the ambit of ‘service’ as defined in the Consumer Protection Act.
Headnote:(a)Medical Education – In absence of affiliation by the Magadh University and recognized by the Dental Council of India, the appellant institute could not have started admissions in the four years degree course of BDS. (Para 31)
(b)Consumer Protection Act, 1986 – Section 2(1)(o) – Imparting of education by an educational institution for consideration falls within the ambit of ‘service’ as defined in the Consumer Protection Act. (Para 32)
AIR 1978 SC 548 – Relied upon.
(c)Industrial Disputes Act, 1947 – Section 13 – This being a case of total misrepresentation on behalf of the institute, tantamounts to unfair trade practice. (Para 33)
(d)Judicial Review – Appellant institute having played with the career of the respondents whereby they lost their two valuable academic years, appropriate directions given. (Para 36)
Facts of the case :
1. The appellant “The Buddhist Mission Dental College and Hospital” published an advertisement in the Hindustan Times, an English national daily, on 25.7.1993 inviting applications for admission in the Degree Course of Bachelor of Dental Surgery (for short, BDS) highlighting that the appellant college is a premier dental college of Bihar established and managed by the Vishwa Buddha Parishad under Article 30 of the Constitution of India under Magadh University, Bodh Gaya and Dental Council of India, New Delhi, Siddharth Nagar, New Bailey Road, Patna.
2.The respondents complained that although in the advertisement it was specifically mentioned “No Capitation Fee” but in fact, at the time of admission, Rs.1,00,000/- was taken in cash from each of the respondents and despite repeated requests no receipt for the amount paid by them was given.
3.It is further alleged in the complaint that the respondents had paid a substantial amount under various heads viz., admission fee, tuition fee, development charges, charges of consumables, house-in-practicals, sports, magazines, library etc.
4. The respondents after several months came to know that the appellant college was neither affiliated to the Magadh University nor it was recognized by the Dental Council of India.
5. In the complaint, the respondents also mentioned that the college was neither having sufficient and qualified staff nor facilities.
6. The appellant did not conduct any examination at all by the end of 1994 and there was no hope of examination being conducted in the near future.
7.The respondents preferred claim petitions before the Commission. The Commission by its order dated 29.9.2000 found merit and substance in the complaints filed by the respondents and categorically held that there was insufficiency of services on the part of the appellant and that the respondents were legitimately entitled to the claims made in the petition.
8. The Commission directed the appellant to refund the admission expenses paid at the time of admission along with interest at the rate of 12% per annum from the date of receipt of the amount till the date of payment and also Rs.20,000/- to each of the respondents by way of compensation for the expenses defrayed on purchase of books, mess expenses, hostel expenses for two years and for the loss of two valuable academic years. Since there was no receipt of capitation fee/donation paid by the respondents, the Commission inter alia did not grant any relief to the respondents in that regard. However, the Commission directed that the appellant shall pay Rs.10,000/- by way of costs of the petition.
Finding of the Court :
Commission rightly held that there was deficiency in service on the part of the institute and the claimants respondents are entitled to claim the relief as prayed in the plaint.
Result : Appeal dismissed.
JUDGMENT
Dalveer Bhandari, J. —
1.This appeal is directed against the judgment dated 29.9.2000 passed by the National Consumer Disputes Redressal Commission, New Delhi (for short ‘the Commission’) in Original Petition No. 168 of 1994.
2.Eleven complaints were filed before the Commission against the appellant herein, viz. Buddhist Mission Dental College and Hospital through its Secretary Shri R.A. Vatsayayan.
3.The appellant published an advertisement in the Hindustan Times, an English national daily, on 25.7.1993 inviting applications for admission in the Degree Course of Bachelor of Dental Surgery (for short, BDS). In the said advertisement, it was specifically highlighted that the appellant college is a premier dental college of Bihar established and managed by the Vishwa Buddha Parishad under Article 30 of the Constitution of India. It was also mentioned right under the name of the appellant’s college that the said institution is “The Buddhist Mission Dental College and Hospital” under Magadh University, Bodh Gaya and Dental Council of India, New Delhi, Siddharth Nagar, New Bailey Road, Patna. The said advertisement is reproduced as under:
“THE BUDDHIST MISSION DENTAL COLLEGE & HOSPITAL”
(Under Magadh University, Bodh Gaya, and Dental Council of India, New Delhi, Siddharth Nagar, New Bailey Road, Patna-801305)
A premier Dental College of Bihar, established and managed by VISHWA BUDDHA PARISHAD, under Article 30(1) of the Constitution of India, fulfilling all the criterion and conditions of Dental Council of India.
ADMISSION NOTICE FOR BDS COURSE 1993-94
Applications are invited for admission in 1st year (B.D.S.) Course.
Eligibility:- S.S.C. Or Equivalent degree with a minimum 50% marks (40% in case of reserved candidates) in Physics, Chemistry, Biology Group.
Application form and prospectus can be had from the office on payment of Rs.100/- (or Rs.110/- by DD in the name of the college if requested by post).
Last date for submission of application is 30.08.1993. Separate hostel facility for boys and girls in the campus, preference to Buddhist and other minority candidates.
NO CAPITATION FEE
(R.S. Vatsyayan)
Secretary”
4.The complainants, respondents herein, who have all passed 12th standard examination with Physics, Chemistry and Biology and have secured good marks and were in search of brighter career prospects, believing the facts incorporated in the advertisement of the appellant to be true, applied for admission to the appellant’s college in the academic session 1992-93. In the complaint, it was stated that in the advertisement it was specifically mentioned “No Capitation Fee”. This obviously gave the impression that no capitation fee would be charged from the students. But in fact, at the time of admission, Rs.1,00,000/- was taken in cash from each of the respondents and despite repeated requests made by the respondents, no receipt for the amount paid by them was given. When the respondents insisted upon the receipts of the said amount paid, they were threatened that if they persisted on the demand of getting the receipts, their admission would be cancelled. It is further alleged in the complaint that the respondents had paid a substantial amount under various heads viz., admission fee, tuition fee, development charges, charges of consumables, house-in-practicals, sports, magazines, library etc.
5.The respondents also started attending classes after joining the appellant college. The respondents after several months came to know that the claim made by the appellant to the respondents in the advertisement as well as in the prospectus was false, because the appellant college was neither affiliated to the Magadh University nor it was recognized by the Dental Council of India.
6.In the complaint, the respondents also mentioned that they were informed by the appellant that the college is well equipped with library, laboratories, anatomy museum, medical appliances and instruments, hostel accommodation duly furnished and wel
