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2020 Supreme(Online)(NCDRC) 921

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
R.K. AGRAWAL, PRESIDENT, S.M. KANTIKAR, MEMBER
UNIVERSITY OF PETROLEUM & ENERGY STUDIES (UPES) – Appellant
Versus
ANUJ KANWAL – Respondent
REVISION PETITION NO. 1474 OF 2013



Advocates:
For the Appellants/Petitioners: Mr. Kapil Kher, Mr. Kunal
For the Respondents: NEMO

Educational institutions do not fall under consumer protection jurisdiction unless rendering a defined service. This principle applies to fee refund complaints.

Headnote:(A) Consumer Protection Act, 1986 - Section 21(b) - Revision Petition against the order of the State Commission affirming the District Forum's decision on a complaint for fee refund in an educational institution context - The court reiterated that educational institutions do not fall within the jurisdiction of the Consumer Protection Act if they are not rendering a service under defined criteria. (Paras 10-11)

(B) Issue of maintainability - It was held that educational institutions are not included under consumer disputes unless they are rendering a service, and in this case, the complaint regarding admission fees was dismissed as not maintainable based on prior rulings. (Paras 12-13)

Facts of the case:
The Complainant requested the refund of fees post non-joining due to personal issues, and a prior agreement to refund was made but contested in subsequent proceedings.

Findings of Court:
The court found that educational institutions like the petitioner are not subject to the Consumer Protection Act as they fall outside the definition of service as per established precedence.

Issues: Whether educational institutions fall under the provision of Consumer Protection Act and if the complaint is maintainable based on previous case law.

Ratio Decidendi: Educational institutions are generally outside the ambit of the Act, unless they engage in practices that constitute a service under the Act's definitions, which was not the case here. The court followed precedent set by a larger bench case.

Result: Revision Petition allowed; prior orders set aside.

Table of Content
1. jurisdiction under consumer protection act in educational matters. (Para 1 , 2)
2. refund claims regarding admission fees. (Para 3 , 4 , 5 , 6)
3. ruling on the applicability of consumer protection act to educational institutions. (Para 10 , 11)
4. outcome of the revision petition. (Para 12)

University of Petroleum & Energy Studies (UPES), New Delhi has filed the present Revision Petition under Section 21 (b) of the Consumer Protection Act, 1986 (In short “the Act”), against the Order dated 20.03.2013, passed by the Delhi State Consumer Disputes Redressal Commission, New Delhi (hereinafter referred to as “the State Commission”), whereby the First Appeal No. 917 of 2012 preferred by the Petitioner herein has been dismissed and the Order dated 10.07.2012, passed by the District Consumer Disputes Redressal Forum-VI (Distt. New Delhi) (hereinafter referred to as “the District Forum”) allowing the Complaint has been affirmed.

2. Briefly stated that the facts giving rise to the present Petition are as follows:

3. According to the Complainant Shri Anuj Kanwal, he took admission in B. Tech in the Petitioner Institute and deposited the required fee, but on account of some personal issue he could not join the same and requested the Petitioner/ Opposite Party for the withdrawal of the admission and also fees. Out of the total fee paid by the Complainant/ Respondent, an amount of Rs.7,500/- for PDP has not been refunded, Rs.5,900/- for the computing fee was also not refunded and similarly Rs.90,750/- as directed by UGC is not refunded. The Complainant claimed the refund of Rs.1,04,150/-.

4. During the course of proceedings before the District Forum, the Petitioner/ Opposite Party appeared on 09.03.2012 and made a statement that the matter has been mutually agreed to refund the money. It may be mentioned here that on that date, the Petitioner/ Opposite Party has not filed the Written Statement nor at any stage of proceedings, later on, before the District Forum.

5. The District Forum, on the basis of mutual Agreement between the Parties, decided the case on 10.07.2012 and issued the following directions:

“We direct OP to refund Rs.1,04,150/- after deducting Rs.1,000/- as per u.G.C. guidelines and we also award Rs.5,000/- as litigation and harassment charges”

6. Feeling aggrieved by the Order dated 10.07.2012 passed by the District Forum the Petitioner herein preferred Appeal before the State Commission. As already mentioned hereinbefore the State Commission vide Order dated 20.03.2013 has dismissed the Appeal and affirmed the Order passed by the District Forum.

7. Feeling aggrieved, by the Order dated 20.03.2013 passed by the State Commission, University of Petroleum & Energy Studies (UPES), New Delhi, Petitioner has preferred this Revision Petition.

8. We have heard Mr. Kapil Kher, learned Counsel for the Petitioner.

9. From a perusal of the averments made in the Complaint and the Orders passed by the District Forum and the State Commission we find that a Preliminary Issue arises in the present Revision Petition as to whether Educational Institutions like the Petitioner University, which is imparting Education to the students will fall under the provisions of the Consumer Protections Act, 1986 or not.

10. It may be mentioned here that this Issue has been considered and decided by a Larger Bench of three Members of this Commission in the case of Manu Solanki and Others Vs. Vinayak Mission University and other connected cases, 1(2020) CPJ, 2010, wherein the larger Bench had held that Educational matters do not come within the purview of the Consumer Protection Act, 1986 and therefore the Complaint is not maintainable. Relevant portion of the Order is reproduced below for ready reference :-

“37. The following legal issues arise from the submissions made by the rival parties and the aforenoted decisions of the Hon’ble Supreme Court:

Would any defects/ deficiency/ unfair trade practice indulged by the Educational Institutions post admis

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