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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
Alok Aradhe, S. Vishwajith Shetty, JJ.
JJM Medical College - Appellant
Versus
Sanjat Saman Lenka, S/o Bibhuti Bhusan Lenka and Ors. – Respondents
W.A. NO.1521 OF 2017 (EDN-RES) IN W.P. NO.53797 OF 2016 (EDN-RES) C/W W.A. NO.1518 OF 2017 (EDN-RES)
Decided On : 10-10-2022
College Admission - Refund of Fee - ISLAMIC ACADEMY OF EDUCATION supra - J.G.ENGINEERS PRIVATE LTD. VS. UNION OF INDIA AND ANOTHER - Relevant extract of the judgment reads as under: It must be mentioned that during arguments it was pointed out to us mat some educational institutions are collecting, in advance, the fees for the entire course i.e. for all the years. It was submitted that this was done because the institute was not sure whether the student would leave the institute midstream. It was submitted that if the student left the course in midstream then for the remaining years the seat would lie vacant and the institute would suffer. In our view an educational institution can only charge prescribed fees for one semester/year, if an institution feels that any particular student may leave in midstream then, at the highest, it may require that student to give a bond/bank guarantee that the balance fees for the whole course would be received by the institute even if the student left in midstream. If any educational institution has collected fees in advance, only the fees of that semester/year can be used by the institution. The balance fees must be kept invested in fixed deposits in a nationalised bank. As and when fees fall due for a semester/year only the fees falling due for that semester/year can be withdrawn by the institution. The rest must continue to remain deposited till such time that they fall duo. At the end of the course the interest earned on these deposits must be paid to the student from whom the fees were collected in advance.
Fact of the Case:
The student was provisionally allotted a seat in the College but later got admission in Government Medical College in the State of Maharashtra. The student filed a writ petition seeking the return of original documents and refund of the fee deposited.
Finding of the Court:
The College is entitled to retain the prescribed fee for one semester/year. However, the College has no lien over the documents and consequently has no right to withhold the same. The order directing the student to execute a bond or Bank Guarantee or to furnish security of immovable property for a sum of Rs.11,50,000/-being 50% of the remaining course fee is set aside.
Issues: (i) whether College can insist on deposit of entire course fee before releasing the amount (ii) whether the Student is entitled to seek refund of the entire amount of fee deposited by him.
Ratio Decidendi: The College is entitled to charge prescribed fee for one semester/year. If an institution feels that any particular student may leave in midstream, it may require that student to give a bond/bank guarantee that the balance fees for the whole course would be received by the institute even if the student left in midstream.
Final Decision: W.A.No.1528/2017 filed by the student is partly allowed, whereas, W.A.No.1521/2017 filed by the college is dismissed.
JUDGMENT :
Alok Aradhe, J.
W.A.No.1521/2017 has been filed by JJM Medical College (hereinafter referred to as 'the college' for short), whereas, W.A.No.1518/2017 has been filed by the student. Both these appeals emanate from an order dated 06.01.2017 passed by learned Single Judge, by which writ petition preferred by the Student has been allowed in part and the College has been directed to return all the documents to the Student subject to his executing a bond or Bank Guarantee or furnishing security of immovable properties for 50% of the remaining fee i.e., Rs.11,50,000/-. Both the appeals therefore, were heard together and are being decided by this common judgment.
2. Facts leading to filing of these appeals briefly stated are that the student appeared for National Eligibility cum Entrance Test in the year 2016 and secured All India Ranking of 11313. The Student applied for admission to MBBS Course for academic session 2016-17 in All India Quota Seats as well as seats available in the Government Colleges of Odisha and Private Medical Colleges in the State of Karnataka.
3. The Student was provisionally allotted a seat in the College on 17.09.2016. The Student got himself admitted in the College on 26.09.2016 and paid a sum of Rs.5,75,000/-towards Tuition Fee and a sum of Rs.2,00,510/-towards admission fee and a sum of Rs.49,100/-towards Hostel Admission Fee.
4. The Government of Maharashtra issued a Notification on 19.09.2016 inviting applications from the candidates for the purposes of allotment of seats in respect of 15% All India Quota Seat surrendered to the State in the Government/Corporation Medical/ Dental Colleges in the State of Maharashtra. The Student was eligible to participate in the process of admission. Therefore, he submitted an application on 19.09.2016. However, on account of stay granted by Hon'ble Supreme Court on 26.09.2016, the process of admission could not be carried out by Government of Maharashtra. However, in pursuance of the direction issued by Hon'ble Supreme Court, a revised calendar of events was issued. Thereafter, first selection list was issued on 27.09.2016, whereas, second selection list was issued on 30.09.2016. The Student's name appeared in the second selection list and he got admission in Government Medical College in the State of Maharashtra. The Student was admitted to Government Medical College in the State of Maharashtra on 07.10.2016. The father of Student sent an email on 07.10.2016 to the College requesting it to return the original documents submitted by the Student as well as to refund the fee. Thereafter, the Student submitted a reminder on 08.10.2016. However, the representation as well as the reminder failed to evoke any response.
5. Thereafter, the Student filed a writ petition viz., W.P.No.53797/2016, in which a prayer for return of original documents and for refund of the fee deposited by the student was made. The learned Single Judge by an order dated 06.01.2017 directed return of original documents to the student subject to his executing a bond or bank guarantee or to furnish security of immovable property for a sum of Rs.11,50,000/-being 50% of the remaining course fee. In the aforesaid factual background, the Student as well as the College have file these appeals.
6. Learned Senior counsel for the College submitted that the learned Single Judge ought to have directed the Student to deposit the entire course fee with the college. It is further submitted that the Student had withdrawn the admission from the course on 07.10.2016 i.e., after the last date of admission i.e., 30.09.2016. In support of aforesaid submissions, reference has been placed to decision of Hon'ble Supreme Court in 'ISLAMIC ACADEMY OF EDUCATION VS. STATE OF KARNATAKA', (2003) 6 SCC 697.
7. On the other hand, learned counsel for the Student has submitted that the College has no right to withhold the documents and the amount which has been paid by the Student. It is also urged that College has no lien on the d
An educational institution can only charge prescribed fees for one semester/year and has no right to demand the remaining course fee if the student surrenders the seat before the last date of counsel....
The court established that delays in seeking relief under Article 226 do not bar claims when fundamental rights are violated, especially in cases involving mistakes or fraud.
The mandatory conditions for refund can be read down to be directory in nature, especially when the student subsequently indicates allotment in the second counselling and reasons for forsaking the al....
Withholding original academic qualification certificates by the college is impermissible in law.
Educational institutions cannot retain students' original documents to compel fee payment, as such action lacks legal authority.
The court capped the management quota fees for MBBS students at Rs.20,00,000/- per year, affirming equitable treatment following the closure of associated colleges due to illegal admissions.
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