Dama Seshadri Naidu, J.

In Perspective:

A student secures admission in a college, completes the first year, applies to the University for inter-college transfer and secures it; the college compels the student to pay liquidated damages for the loss of fee it suffers because of the student's leaving the college mid-course. The regulations provide for when a student must pay liquidated damages and when she can be exempted. Has the student earned the exemption?

The Controversy:

2. The petitioner, a Trust, runs a self-financing institution—a School of Architecture, which is a member of Architecture College Management Association (‘the Association'). The third respondent (‘the Student') joined the college on 17.7.2013 in one of the 50% seats under government quota. In the second year, she applied and obtained an inter-college transfer and joined another college at some other place. She was, in this bargain, compelled to pay to the college Rs.2,85,000/- as liquidated damages--the aggregate fee of all the remaining years.

3. As the Student had been compelled to pay the liquidated damages, she complained to the second respondent, the Admission Supervisory Committee for Professional Colleges in Kerala (‘the Committee'). After considering the college's objections, the Committee passed Ext.P4 order directing the college to refund the amount to the Student. Assailing Ext.P4 order of refund, the College filed this writ petition.

Regulatory Regime:

(a) Agreement

4. Ext.P1 agreement (‘the Agreement) entered into between the Government and the Association governs various aspects of the students' admission into colleges. Clause-17 of the agreement enables the educational agency to retain the tuition fee remitted by the student, in the event the student admitted in the management quota or Government quota discontinues his or her studies at any time after 15th day of July 2013. It further provides that if any student, admitted to the college, cancels the admission for any reason whatsoever, the educational agency shall be entitled to collect the tuition fee of the entire course. The provision has, however, provided an exemption: if the seat so vacated gets filled up by a new candidate, the tuition fee collected under this clause shall be refunded to the student.

(b) Prospectus:

5. The KEAM Prospectus issued by the Government through G.O.(Ms) No.734/2013/H.Edn., dt.18.12.2013 (‘the Prospectus'), is an elaborate statutory scheme vitally affecting the admissions. Clause 12.2.4 (a)(i) of KEAM Prospectus reads as follows:

12.2.4 Liquidated damages

(a) Levying amount towards liquidated damages from candidates discontinuing their studies:

(i) If any candidate admitted against 'Government' seats in Government/Aided/Government Controlled Self-financing/Private Self-financing/KAU/KVASU/ KUFOS Colleges, discontinues the studies after the closing of admissions in the same academic year, to join other course/colleges or for other purposes he/she is liable to pay liquidated damages of Rs.75,000/- (Rupees Seventy Five Thousand only for the courses other than MBBS/BDS. The liquidated damages for those candidates discontinuing courses in Government Engineering Colleges will be Rs.50,000/- (Rupees Fifty thousand only). In all such cases the Transfer Certificate will be issued only after remitting the liquidated damages to the admitting authority concerned. Candidates belonging to SC/ST/OEC are exempted from this rule. Candidates belonging to 'Keralite' category, as per Clause 6.1 (i), whose annual family income is below Rs.75,000/- and who have submitted income certificate along with the application for admission to Professional Degree Courses 2013 will also be exempted from payment of Liquidated damages. Candidates who are transferred from one institution to another as per proceedings of the University concerned are exempted from payment of liquidated damages. The students admitted in Government/Management seats in Professional Colleges who discontinue their studies