RAJASTHAN STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, JAIPUR
Hon’ble Mr. Justice Navin Chandra Sharma, President;
Mr. Jagdish Prasad Mathur & Mrs. Firoza Bano, Members
KAILASH CHANDRA SINGHAL—Appellant
versus
PRINCIPAL, SOPHYA GIRLS SCHOOL—Respondent
Appeal No. 474 of 1992—Decided on 9.9.1994

Headnote:Consumer Protection Act, 1986 - Section 2(1)(0) - Words Service Deficiency and - Meaning - It applies to any service made available to potential users - Imparting of education by schools - Whether amounts to rendering service as defined in Section 2(0)? . (Yes) - Charging of tuition fee and other term fee and building fee - A person who is hirer or availer of service for consideration is a consumer - Complaint filed with allegation that service renderer has charged for service an excess fee for consideration -Not maintainable - Complaint can only lie when it contains an allegation that there is fault, imperfection, shortcoming or inadequacy in quality; nature and manner of performance - Institution to be taken as a whole.

       Held: Imparting of education to boys and girls is highest form of service to the people and the nation. The Indian Constitution makers gave so much importance to education that in Article 43 of the Constitution, it was provided as a directive principle of State policy that the State shall endeavour to provide, within a period of ten years from the commencement of the Constitution, free and compulsory education for all children until they complete the age of 14 years. As a welfare State, it was mandated upon the State to provide free and compulsory education for all children until the said prescribed age. The Educational Institution like Sophia Higher Secondary School is also engaged in imparting education to children as well as to bit grown ups education results in benefits to the tought, promotes its interests and leads him to happiness, These are the objects of service. We have, therefore, no doubt in our mind that Sophia Higher Secondary School, Vallabhnagar, Kota renders service. Service is rendered to potential users i.e. those who are availing it and those who may avail it in future. It is not in dispute that the opposite party-respondent charges tuition fee arid other term fee and building fee while rendering the service of imparting education. Clearly, therefore, the services hired or availed of for consideration which has been paid. Juhi Singhal was the minor daughter of the complainant and the complainant was guardian of the said student. The complainant was, therefore, "consumer" within the definition assigned to the term by section 2(d)(ii) of the Act. (Para 8)

       Further Held: A consumer who is hirer or availer of a service can make a complaint and the complaint in so far as it relates that the service hired or availed of suffers from deficiency in any respect or that an unfair trade practice has been adopted by any trader. The word "deficiency" has been defined in Section 2(g) of the Act as meaning any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service. An allegation that higher tuition fee or excessive, tuition fee and other fees are charged cannot be termed as fault, imperfection, short coming or inadequacy in the quality, nature and manner of performance. It is important to note that in the case of sale of goods, a complaint can allege that the trader has charged for the goods mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force. However, in the case of services, complaint cannot be filed with the allegation that the service renderer as charged for an excess fee for consideration. No complaint can, therefore, lie before a Consumer Forum containing an allegation that the service renderer charges higher or excessive fees for rendering the service. Just as in the case of electricity and telephone, the tariff rate prescribed or charged is excessive. Similarly in the case of Educational Institutions complaint is not maintainable with the allegation that the tuition fee or other fee charged arc excessive. Forum for challenging the exorbitant tuition fees lies elsewhere on the round that the contract is unconscionable or is by way of penalty.

       In the case of services, complaint can only lie when it contains an allegation that there is fault, imperfection, short-coming or inadequacy in the quality, nature and manner of performance.

       (Para 9)

       Consequently Held: If Missionary Schools like Sophia Higher Secondary School or other such Schools are run and for developing their building in order to increase the accommodation, or to provide an auditorium or charge library fees, games fees or fee for children fund and similar other fees, they are charging it only to develop better educational institutions. This institution is not receiving Government aid and it is charging quite reasonable fees. It is not a case where exorbitant fees arc being charged. There are several private institutions in this State where Educational Institution are charging exorbitant tuition fees and other fees which are three to four times higher even in relation to L.K.G. student, than charged by the opposite party-respondent in the present case. It may be that an L.K.G. student may not be able to utilise books from library and may not be able to play games, but we have to look into the entire environment of an educational study run by a philenthrophic body. There is no complaint of the complainant that educational institute is not good or the teachers are not taking classes or the teachers are not appointed to teach students. Merely because electricity and water supply fee is realized, library fee is realised or normal fees is realised, they cannot be regarded as faults or imperfections in the manner of performance of service. Dresses are prescribed to be purchased from a shopkeeper for the reason that each student may have the same colour dress. Similarly students text books which are taught in these Schools are required to be purchased from a particular book-seller who has the stocks of those books. These are not faults, imperfections or short-comings in the performance of service.

       Children, who are in lower classes, w ill go into the higher classes in future and they will avail of all these benefits when provided by the School. We can understand that if abnormal or out of proportion or unconscionable fees by donation or by way of capitation fees are charged, then we can hold that they are charged not for rendering services, but to make profits for the individual or for the institution and not for rendering service. This is not a case of that type. The amount of tuition fee and term fees aheady reproduced above not at all indicate that they are not commensurate with the services rendered by the institution. We have to take the institution as a whole and no such not worthy fault, short-coming or inadequacy in rendering the service has been established, which can persuade us to hold that there was deficiency in service. (Para 10)

       Result: Appeal dismissed.

       IMPORTANT POINT

       In the case of services, complaint cannot be filed with the allegation that the service renderer has charged for service an excess fee for consideration.