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IN THE HIGH COURT OF MADRAS
VINEET KOTHARI, C.V. KARTHIKEYAN, JJ.
SRM Medical College Hospital and Research Centre – Appellant
Versus
Jeby Jacob and Ors. – Respondents
W.A. No. 2782 of 2018
Decided On : 03-06-2019
Provisions of University Grants Commission Act - University Grants Commission - evidence to justify the deduction - It appears that the first respondent did not take the admission in the appellant College, which is Deemed to be a University and therefore, he prayed for the refund of the said sum of Rs. 20.00 Lakhs deposited by him towards tuition fees and other fees. But, the appellant Institution refunded only a sum of Rs. 18.00 Lakhs, after deducting a sum of Rs. 2.00 Lakhs towards the processing fees, which is the bone of litigation in the present case - Learned Single Judge, in the order under appeal, held in favour of the first respondent student and that since the first respondent was entitled to three rounds of litigation and never attended the classes in the appellant Institution as the session had not even commenced, he was entitled to the refund of the said fees and that the deduction of processing charges can be made only to the extent of Rs. 1,000/- as per the University Grants Commission Guidelines Notification dated 23.4.2007 and at a maximum of Rs. 10,000/- as per the Notification dated 11.7.2016 and accordingly – Held, We are conscious of the fact that charging of high tuition fees and even high administrative charges in the medical education has ripple effect and if the education in the medical science becomes so costly an affair, it is bound to have a bearing the medical profession as well, finally affecting the poor and middle class of the society adversely. What the Doctors would have spent in their education, they would definitely like to recover the same in their profession and that is a mere common prudence. We also cannot shut our eyes as to how the medical and engineering educational institutions have made bonanza of profits and such private institutions are running them as business houses rather than educational institutions run for the pious objective of imparting education to the students - Good, moral and value education and business made of education are two poles apart which stretch the society between them from one pole to another and generally, the helpless students and their parents and their financial resources are sacrificed at the altar of business of education. Unless the Courts, especially the Constitutional Courts come down heavily on such malpractices, where the justice seekers should go, is the question which stares us in the face - Therefore, while finding no merit in the present appeal filed by the appellant institution and upholding the order of the learned single Judge, we dismiss the present appeal of the appellant institution with costs of Rs. 20,000/- and uphold the order of the learned single Judge, with a direction to the appellant Institution to refund a sum of Rs. 1,90,000/- forthwith, with interest at the rate of 6% per annum from the date of deposit till the date of refund. If the refund is not made within a period of four weeks from today, the rate of interest shall stand increased to 9% per annum - We also tried to explore from the learned counsel for the appellant Institution for a huge sum of Rs. 2.00 Lakhs deducted towards the administrative or processing charges, as to what services the appellant Institution has rendered to the student for justifying the deduction of a sum of Rs. 2.00 Lakhs, when admittedly the student did not occupy the seat in the appellant Institution nor the academic session had started nor did he attend any class in the said Institution and as per his own entitlement to attend more rounds of counselling on the basis of his results in the NEET examination and only the clerical thing that the appellant Institution would have done is entering provisionally the first respondents name in the provisional list of admission on 20th August 2017 upon the first counselling and then - appeal is dismissed
JUDGMENT :
Dr. Vineet Kothari, J.
1. The present intra-court appeal has been filed by the appellant SRM Medical College Hospital and Research Centre, a private Medical College, which is a Deemed to be University under the provisions of University Grants Commission Act, aggrieved by the order of the learned single Judge dated 26.9.2018 allowing the writ petition filed by the student Dr. Jeby Jacob and directing them to refund the part of fees amounting to Rs. 1,90,000/- within a period of two weeks from the date of that order.
2. The facts in brief, which led to the filing of the present writ appeal, are as follows:
The first respondent, Dr. Jeby Jacob appeared in NEET 2017 in the Super Speciality Category for his Post Graduation Course and in pursuance of the first round of counselling conducted on 20th August 2017, he was provisionally allotted D.M. Nephrology seat in the appellant College. Consequently, he deposited a sum of Rs. 20.00 Lakhs towards tuition fees and other fees by way of a demand draft dated 18.8.2017, with the appellant Institution. The first respondent was however entitled to three rounds of counselling to seek admission in other Colleges also, providing the same Post Graduation Course and accordingly, upon attending the second round of counselling on 11th September 2017, he got admission in the Madras Medical College in Chennai in the said stream of D.M. Nephrology. It was stated at Bar that after the third round of counselling, the first respondent got admission in Kilpauk Medical College in D.M. Gastroenterology, where he finally took the admission.
3. It appears that the first respondent did not take the admission in the appellant College, which is Deemed to be a University and therefore, he prayed for the refund of the said sum of Rs. 20.00 Lakhs deposited by him towards tuition fees and other fees. But, the appellant Institution refunded only a sum of Rs. 18.00 Lakhs, after deducting a sum of Rs. 2.00 Lakhs towards the processing fees, which is the bone of litigation in the present case.
4. The learned Single Judge, in the order under appeal, held in favour of the first respondent student and that since the first respondent was entitled to three rounds of litigation and never attended the classes in the appellant Institution as the session had not even commenced, he was entitled to the refund of the said fees and that the deduction of processing charges can be made only to the extent of Rs. 1,000/- as per the University Grants Commission Guidelines Notification dated 23.4.2007 and at a maximum of Rs. 10,000/- as per the Notification dated 11.7.2016 and accordingly, directed the appellant Institution to refund the balance sum of Rs. 1,90,000/- to the student. Aggrieved by the same, the Institution is in appeal before us.
5. Ms. B. Saraswathi, learned counsel for the appellant Institution submitted before us that the appellant Institution was entitled to deduct 10% of the fees under the Guidelines published in December 2016 by the University Grants Commission, a copy of which is produced on record along with a communication dated 6th December 2016. However, the Notification bears no date and it is marked only as December 2016 and the Gazette notification publishing the said Notification has also not been produced on record. The previous Gazette Notification, which has been produced by the student, however specifies the deduction only to the extent of Rs. 10,000/- in such cases. The said Notification in F. No. 1-3/2016 (CPPPI/DU) dated 11th July 2016 applicable to University Grants Commission (Institutions deemed to be Universities) Regulations, 2016, in Clause 6.2, quoted by the learned single Judge in the impugned order, provides for deduction not exceeding Rs. 10,000/-, in such cases.
6. The learned counsel for the appellant Institution urged that the said Notification applicable to the Colleges, which are Deemed to be Universities stood superseded by the Notification of December 2016. However, she was unable
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