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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
J.M. MALIK, PRESIDING MEMBER
Dhirendra Kumar (Dead) & Ors. – Appellant
Versus
M.R. Sarangapani & Ors – Respondent
Original Petition No. 255 of 2001
Decided on : 14-01-2014

Advocates:
Advocate Appeared:
For the Appellant :Mr. Arun Sukhija, Advocate.
For the Respondent:Mr. Q.H. Khan, Advocate.

Misrepresentation of educational services and failure to deliver promised facilities amounted to deficiency in service under the Consumer Protection Act.

Headnote:

Education - Misrepresentation - Consumer Protection Act - [EDUCATION] - [Consumer Protection Act] - [Misrepresentation]

Fact of the Case:

The students were lured by an advertisement from 'Merit International Institute of Technology' which offered undergraduate Degree Courses in specialized subjects. The students were promised global recognition, well-qualified faculty, visiting faculty from India and abroad, well-equipped library, high academic standards, state-of-the-art teaching methodology, and placement in key positions in the industry. However, the institution failed to deliver on these promises, including the lack of qualified faculty, laboratories, and library facilities.

Finding of the Court:

The court found that the institution made false claims and engaged in unfair trade practices. The students were misled by the advertisement and the institution's representatives. The court held that the institution's actions amounted to deficiency in service under the Consumer Protection Act.

Issues: Misrepresentation of educational services, deficiency in service, unfair trade practices

Ratio Decidendi: The court held that the institution's misrepresentation of educational services and failure to deliver on promised facilities amounted to deficiency in service under the Consumer Protection Act. The court also emphasized the importance of upholding academic standards and protecting students from misleading advertisements and unfair trade practices.

Final Decision: The court allowed the complaint and directed the institution to pay compensation to the complainants for the expenses incurred, loss of academic year, and harassment suffered. The institution was ordered to pay the specified amount with interest to the complainants within 90 days.

ORDER :

Mr. Justice J.M. Malik, Presiding Member-Money is a bottomless sea, in which honour, conscience and truth may be drowned. However, law is the backbone which keeps man erect.

2. Sh. Saurabh Kumar, complainant No. 2, Sh. Shreejit Sasi Kumar, complainant No. 4, Sh. A. Sreedharan, Complainant No. 6, Sh. V. Yoginder, complainant No. 8 and Sh. Joseph Pius Chakola, complainant No. 10 are the students, who have filed their cases along with complainant Nos. 1, 3, 5, 7 and 9, who are their fathers, respectively, against the OPs. Complainant No. 1 has since passed away and his LR, complainant No. 2, is already on the record.

3. The above said five student-complainants were lured by an advertisement inserted by “Merit International Institute of Technology”, OP5, which offered undergraduate Degree Courses, specialized in the subjects like Robotic Engineering, Artificial Intelligence, Biotechnology, Bio-informatics, Information Technology, Computer Science, Biomedical Engineering, Genetic Engineering, Electrical, Electronic Engineering, etc. Copy of the said advertisement has been placed on record as Annexure-A. The said advertisement mentions that OP5 was recognized by foreign Universities.

4. The student-complainants visited the website of OP5. Copy of the website pages have been placed on record as Annexure-B. Few claims made on the website are reproduced here as under:

“(a) That OP No. 5 was not only recognized in India but was globally recognized.”

(b) That OP No. 5 had a ‘well-qualified and trained faculty’,

(c) That OP No. 5 had ‘visiting faculty from India and abroad’.

(d) That OP No. 5 had a ‘well equipped library’.

(e) That OP No. 5 pursued ‘high academic standards’ and had adopted ‘state-of-the-art teaching methodology’ with learning tools and equipment.

(f) That OP No. 5 was offering a Bachelor Degree in Engineering in highly specialized subjects like Robotic Engineering, Artificial Intelligence, Bio-technology, Bio-informatics, Information Technology, Computer Science, Biomedical Engineering, Genetic Engineering, Electrical, Electronic Engineering, etc.

(g) That the students had option of doing their post-graduate studies abroad. This suggests that the Bachelor of Engineering degree of OP No. 5 was recognized abroad.

(h) Under the title ‘Affiliation, Articulation, Cooperation and memberships’, the names of a string of foreign universities were mentioned to suggest that OP No. 5 was recognized by all these universities and these universities would accept students from OP No. 5 for post-graduate studies,

(i) It is further claimed that OP No. 5 has a placement cell and the graduates from OP No. 5 ‘are placed in key positions in the Industry and are spread over in India, USA, Canada, Australia, Europe, Middle East and Far East’.

(j) That website further listed the detailed curriculum being followed in the undergraduate courses offered by OP No. 5. It also provided detailed list of laboratories associated with each semester. This suggests that theoretical studies and laboratory experiments were to go hand-in-hand in each semester. It also suggests the existence of well-equipped laboratories”.

5. The prospectus, marked as Annexure-C, reiterates all these facts. The complainants visited the office of the OP No. 5, situated at Ooty. OPs 1 to 4 are the functionaries of OP No. 5. Mr. M.R. Sarangapani, Dean, OP 1 had invited Dr. Tarek Sobh, Director, School of Engineering & Design, University of Bridgeport. USA, to address the parents of the prospective students. Dr. Tarek Sobh was very convincing and drew very rosy picture of OP No. 5, suggesting that OP5 is affiliated to University of Bridgeport. Subsequently, it transpired that he made a false claim. All the student-complainants took the admission in different Degree Courses of OP No. 5. They had to pay heavy fees for taking admission. First of all, the OPs, originally demanded exorbitant fees, but when they found that the response of the students was lukewarm, they issued a revised fee-stru

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