UTTAR PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Bhanwar Singh, President and Rachna, Member
IDEAL INSTITUTE OF TECHNOLOGY - Appellant
Versus
ANKIT KUMAR - Respondent
Appeal No. 2763/SC of 2007
Decided on : 17-04-2009
Mr. S.K. Sharma, Advocate, for the Appellant; Mr. R.K. Gupta, Advocate, for the Respondent
The discretion of the Management prevails in the matter of refund of the tuition fee, and every discretion has to be exercised in accordance with equity and good conscience.
Headnote:
Forfeiture Clause - Refund of Tuition Fee - The court interpreted the terms and conditions of the withdrawal of the fee and held that the discretion of the Management is to prevail in the matter of refund of the tuition fee. The court applied the principle of equity and good conscience to rule that the decision of the Institute regarding forfeiture of the entire fee is neither just nor reasonable, and directed the appellant to refund 75% of the balance amount of the tuition fee to the respondent.
Fact of the Case:
The respondent took admission in a course at the appellant Institute and requested a refund of the entire amount deposited after securing admission elsewhere. The Institute partly allowed the request and forfeited the balance amount of the tuition fee.
Finding of the Court:
The court found that the decision of the Institute regarding forfeiture of the entire fee was neither just nor reasonable, and directed the appellant to refund 75% of the balance amount of the tuition fee to the respondent.
Issues: The issue was whether the Institute had the authority to forfeit the balance amount of the tuition fee after the respondent secured admission elsewhere.
Ratio Decidendi: The court held that the discretion of the Management is to prevail in the matter of refund of the tuition fee, and applied the principle of equity and good conscience to rule that the decision of the Institute regarding forfeiture of the entire fee is neither just nor reasonable.
Final Decision: The court directed the appellant to refund 75% of the balance amount of the tuition fee to the respondent and upheld the levy of interest of 7% per annum as observed by the Forum below.
JUDGMENT
Bhanwar Singh, President (Oral)- Heard learned Counsel for both the parties and perused the record. The judgment dated 28.11.2007 passed by the District Consumer Forum, Ghaziabad has been subjected to criticism by way of filing this appeal.
2. The respondent/ complainant Sri Ankit Kumar took admission in the Electronics and Communication course of Business Management in the appellant Institute, known as IIT - Ideal Institute of Technology, Govindpuram, Ghaziabad in the year 2003 and as per terms of the admission deposited a sum of Rs 40,000 on 24.7.2003. Barely four days after, the respondent informed the Registrar of the Institute that he had succeeded in getting admission elsewhere, as a consequence he requested for refund of the entire amount he had deposited while seeking admission. The Institute partly allowed his request and directed for refund of the security amount of Rs. 5,000. The balance amount of Rs 35,000 was forfeited and the respondent was informed accordingly. The complainant filed his complaint with the allegation that since he had taken admission under the Management quota, the seat vacated by him did not remain vacant until the end of the academic session, rather it was filled by providing admission to another student. The appellant reiterated its right to forfeit the amount of Rs. 35,000 and while doing so relied upon the terms and conditions of the brochure. The plea of the Institute did not find favour with the District Consumer Forum. On having scanned the pleadings and evidence of the parties, the Forum below allowed the complaint of the respondent and issued a direction to the appellant to refund the amount of Rs. 35,000 along with interest at the rate of Rs 7% per annum. Further an instruction was issued to make the payment good within 45 days.
3. Feeling aggrieved of the said judgment and order, the Institute has come up in appeal reiterating its authority under the brochure to forfeit the tuition fee deposited by the respondent.
4. Indeed the brochure which has been relied upon by both the parties appears to indicate that the management of the Institute will exercise its discretion in the matter of refund of tuition fee. For better understanding it may be appropriate to quote the relevant condition of brochure as follows:
"Withdrawal and Refund of Fees:
In case, a student withdraws or does not join the college after opting for a seat in the college through UPSEAT, the fee deposited will be refunded as per rules drawn up by admission committee UPSEAT-2002 and UPMCAT, Lucknow. In the event, rules if silent on the matter then the discretion of the management will prevail. Either forfeiture of the full amount deposited or part thereof may be considered by the management accordingly".
A careful perusal of the terms and conditions of the withdrawal of the fee would reveal that if a student withdraws or does not join the college after opting for a course through UPSEAT, the fee deposited will be refunded as per rules drawn by the Admission Committee, UPSEAT-2002, Lucknow. This clause was not applicable to the respondent as his admission in the appellant's Institute was not through UPSEAT, rather he had secured his admission for the subject mentioned above through the Management Quota of the Institute itself. In that eventuality, the discretion of the Management is to prevail in-so-far as the matter pertaining to the refund of the tuition fee was concerned. It is a settled law that every discretion has to be exercised in accordance with the equity and good conscience. If we apply this principle of equity to this case, we would find that the decision of the Institute regarding forfeiture of the entire fee is neither just nor reasonable, As mentioned above, the respondent had applied for refund of his fees barely four days after he had deposited it as he succeeded in getting admission elsewhere. Every student aspires for better education in a famous institution. If contemplating the said goal, the responde