Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

FEE REFUND
Compiled by Anshul Bhatt, AIR 22 CSE 2023, Aspirant Forever

WHAT NEXT?
1. Fee Refund
Draft a letter to your respective institution/library for fee refund citing deficiency in
service and other concerns that you have. Do cite the case laws mentioned here.
Do not fear knocking the doors of Consumer Court if you think your concern went
unheard. The procedure is easy, video tutorials are available on the official website.
We will also try to arrange an online seminar for legal literacy.
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

Definition of deficiency under Consumer Protection Act

(11) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the
quality, nature and manner of performance which is required to be maintained by or
under any law for the time being in force or has been undertaken to be performed by
a person in pursuance of a contract or otherwise in relation to any service and
includes— (i) any act of negligence or omission or commission by such person which
causes loss or injury to the consumer; and (ii) deliberate withholding of relevant
information by such person to the consumer;
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

Fiitjee Ltd. vs Vikram Seth (Minor) Through His Natural ... on 5 April, 2019

It may be stated here that in CC/699/2017, the course was Two Year Classroom
Program. The complainant paid an amount of Rs.51,037/- for 2 Semesters/2 different
sessions but after attending the classes for 8 days only, he withdrew himself on being
not satisfied with the coaching imparted by the opposite parties.

4. Similarly, in CC/217/2018, the complainant opted for Two Years Classroom

Programme - JEE (Advance) - Regular Week Contact Classes and paid the opposite
party fee of Rs.1,33,129/- for two years. However, after attending the course for two
months and then withdrew from the course.

5. Likewise, in CC/333/2016, the complainant - Sudha Katyal's son Nikhil

Katyal took admission in Pinnacle Two years Program - Regular and had issued post-
dated cheques towards fee and other expenses covering the entire period of the course.
However, he left the course mid-session on 29.01.2009.

In our opinion, the plea of the appellants by way of affidavit that the vacancy
created by the complainant(s) was never filled up and remained vacant, cannot be
read against the respondent(s)/complainant(s). The appellant cannot be allowed to
be on an advantageous position, keeping in mind the interest of poor consumer. It
(appellant - Institute) cannot gulp whole of the fee paid, being the hard earned
money. When a student or his/her parents signs the admission form, they have no
bargaining power to negotiate, or refuse to sign any particular clause in the
admission form. Hence, such clauses should not be held against the student. The
appellant is continuing with an unfair trade practice of collecting huge amount to get
itself enriched, which is totally against public interest at large, specially the parents,
who send their children by putting a big cut on their stomach and giving each and
every penny of their earnings to the coaching institute like the appellant, for
imparting coaching, which does not guarantee or assure success in getting admission
in IIT/NIT. Sometimes, after paying such hefty coaching fee, it becomes difficult for
them to meet out their daily needs.
. The appellant - Institute is not only a structure made up of bricks and cement where
the students go and get coaching after paying hefty fees. The Institutes imparting
coaching are also supposed to bear in mind that a child/student, who is coming to
them, is also a future of our country, who at some stage is to contribute towards
nation building or serve the country by entering into some field of his/her choice at
some stage. Every student may not be so lucky to crack the entrances, after getting
coaching etc. but it is a fact which cannot be denied that every student puts his/her
best effort to clear these entrance exams. The coaching institutions should not act
like money collection machines, without keeping in mind the feelings and future
prospects of the student. The student may not be comfortable with the teaching
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

methods/skills and attitude of some of the teachers at the coaching centre. In case,
the student leaves in between or midsession or after attending for few days or
months, in our opinion, he/she should not be denied refund of the fee for the
remaining period, which he/she did not attend. If the student is given refund, he/she
can pay the said amount to some other educational institute, where he/she wants to
pursue coaching or education.
We may also add here that Consumer Protection Act, 1986, which is Consumer
Oriental Legislation, is meant to protect the interest of consumers who show their
courage to come forward and put forth their grievance against the unfair trade
practices adopted by such like educational institutions. Future of an aspiring student,
who will certainly contribute towards the development of our nation at some stage
of his/her life, is of paramount importance and cannot be put at stake like this.
Educational Institutions like the appellant must bear in mind the feelings and
sentiments of an aspiring student who took admission with such like institutions with
an aim and hope to achieve some better prospects and positions in their future. In
our opinion, educational institutes should be prudent, desist from charging upfront
fees for the entire course, and if they do, should not refuse a refund. A student or a
trainee may leave midstream if he finds the service deficient, substandard and non-
yielding, and to tell him that fees once paid are not refundable was an unfair trade
practice, as no service provider can take or charge the consideration of the service
which it has either not given or has not been availed.
We are of the considered opinion that the appellants miserably failed to make out
any case and no benefit of the aforesaid judgment of Hon'ble National Commission
rendered in the case of FIITJEE Ltd. Vs. Harish Soni' (supra) can be extended to the
appellant. We opine that the respondents/complainants are definitely entitled to
refund of fees as ordered by the Fora below vide the impugned order
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

FIITJEE v. Shinjini Tewari

Facts: In the present case, the parents of the Respondent child had paid the fees in
advance for a two-year coaching programme. However, due to acute medical reason,
it became impossible for the child to attend the coaching classes. On this account,
the parents asked for a refund but the same was denied by the Appellant
organisation. The Appellant had relied the judgements of the same consumer forum
in FIITJEE Ltd. v. Harish Soni, and FIITJEE Ltd. v. Vikram Seth to argue that the
Complainant is not entitled to any refund in terms of provisions of the enrolment
form, which was duly signed by the Complainant at the time of admission of her son.
Issue: Whether refund can be taken from coaching institutes in case of impossibility
to attend the classes?
Decision: The forum rejected this claim by citing FIIT JEE Ltd. v. Dr. Minathi Rath
where it was held that FIIT JEE Ltd. could not charge full advance fee for Two years
and held the Complainant entitled for receipt of refund of fee taken in advance from
him by FIIT JEE. It opined that the Appellant cannot be allowed to be on an
advantageous position, keeping in mind the interests of poor consumers. Moreover,
when a student or his/her parents signs the admission form, they have no bargaining
power to negotiate, or refuse to sign any particular clause in the admission form.
Hence, such clauses should not be held against the student. The forum also went on
to note that a student or a trainee may leave midstream if he finds the service
deficient, substandard and non-yielding, and to tell him that fees once paid are not
refundable was an unfair trade practice, as no service provider can take or charge
the consideration of the service which it has either not given or has not been
availed. The forum also criticised the coaching institute for not respecting the
medical condition of the child which caused the latter further mental agony. The
practice of making children and parents sign one sided agreements at the time of
enrolment is also held to be an unfair trade practice by the present forum.
Therefore, the District Consumer Forum’s decision of ordering the coaching institute
to refund the fee along with compensation and litigation costs was upheld. Refund of
amount deposited during admission
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

Fiitjee Limited vs Dr. Minathi Rath on 4 October, 2006

It is alleged that the appellant gave assurance at the time of admission that a
personalized attention will be paid to each and every student. After having attended
the session for one year in a class consisting of 40 students, respondents daughter
found it like ordinary schools and teachers rushing to finish the course before the
scheduled time without any personal attention to the students. This was the
betrayal of the expectations of the respondent and she decided to leave the course
in the mid-stream and demanded refund of the balance fees. On refusal by the
appellant to refund the fees, the respondent filed the instant complaint
before the District Forum.
Through this appeal, the appellant (FITJEE) has assailed the impugned order firstly on
the ground that as per terms and conditions of the course, the fee once paid was not
refundable and secondly, respondent left the course in mid-way as she was not able
to cope up with the rigors of studies and curriculum
At the outset we are constrained to observe that such type of Institutes have
become commercial shops. The very fact of charging the lump sum fee for the
entire duration of two years in advance and that too for the period for which they
are yet to provide the service of tuition is highly unethical, unscrupulous and
unfair trade practice and this is an indirect way to earn large amount of money and
to earn undue profit by exploiting the poor students as for few seats there are
thousands of aspirants and in the process, such Institutes become unjustly rich by
way of collecting the fees for two or three years in advance in lump sum. No
service provider can charge a fee/consideration for a period for which the service
has yet to be provided. By charging fee in lumpsum as in this case was charged for
two years course in advance such Institutes not only exploit the student
community but also bind the students not to leave the Institute whatever quality
of education or training there may be.
Unfair trade practice has also been defined in such a manner that brings every kind
of activity in its fold where false representation is made that services are of a
particular standard, quality or grade and gives warranty or guarantee as to its
performance, efficacy or adequacy.
Any term of the contract which is unconscionable or voidable is not enforceable.
No service provider like training Institutes or Coaching Centers or educational
Centers can be allowed to forfeit the fees or consideration received in advance in
case the student has not availed the service. Thus the term that fees once paid is
not refundable is unconscionable as well as voidable and therefore not actionable.
A student or a trainee may leave in the midstream if he finds the service deficient
and sub-standard and non-yielding and to tell him that fees once paid is not
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

refundable is uncalled for and unfair trade practice as no service provider can take
or charge the consideration of the service which it has either not given or has not
been availed.
All the training imparting Institutes, educational centres preparing the students for
Entrance Examination or imparting any other kind of training including the computer
training or any other kind of coaching etc. are hereby directed not to charge the fee
for the whole duration of the course in advance by way of lump sum payment. They
may at the most charge tuition fees of three months in advance in case of a
course/training for one year and six months period for a course/training of more
than one year as no service provider can be allowed to charge the consideration for
such a long period say one to three years for which service is yet to be provided.
Such a practice is adopted only to collect huge amount of money and thereby
making themselves unjustly enriched and binding a candidate for the whole
duration even if service is later on found to be highly deficient and sub-standard.
Such a practice has also an abominable ingredient of exploitation of student
community as for few seats thousands apply.
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

GUIDELINES FOR REGULATION OF COACHING CENTER (January 2024)

as released by Department of Higher Education, Ministry of Education Government of India
NEP 2020 in its Para 4.36 recognizes the current nature of secondary school exams,
including Board exams and entrance exams, the resulting coaching culture of today and its
harmful impact.
Para 4.37 of NEP 2020 suggests reform in the existing system of Board and entrance
examinations to eliminate the need for undertaking coaching classes
Conditions for Registration
(i)No coaching center shall -
b) make misleading promises or guarantee of rank or good marks to
parents/students for enrolling them in the coaching center.
(c) enroll student below 16 years of age or the student enrolment should be only
after secondary school examination.
(d) publish or cause to be published or take part in the publication of any
misleading advertisement relating to any claim, directly or indirectly, of quality of
coaching or the facilities offered therein or the result procured by such coaching
center or the student who attended such class.
(e) be registered, if it has less than minimum space requirement per student.
(g) be registered unless it has counselling system as per the requirement of this
guidelines.

(ii) coaching center shall have a website with updated details of the qualification of tutors,
courses/curriculum, duration of completion, hostel facilities (if any), and the fees being
charged, 6 easy exit policy, fee refund policy, number of students undertaken coaching from
the center and number of students finally succeeded in getting admission in Higher
Education Institutions etc.
7. Documents to be accompanied with the application for registration
(c) the necessary information regarding the qualification of the tutors, time table of the
coaching class, the fee charged and general information, as specified, regarding the
coaching class shall be displayed on the website and notice board at prominent place in the
premises of the coaching center;
8. Fees
(iv) If the student has paid for the course in full and is leaving the course in the middle of
the prescribed period, student will be refunded from out of the fees deposited earlier for
the remaining period, on pro-rata basis within 10 days. If the student is staying in the
hostel of the coaching center, then the hostel fees and mess fee etc. will also be refunded.
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

9. Infrastructure Requirements
(i) Within the basic structure of the coaching center, a minimum one square meter area
may be allocated for each student during a class / batch. There shall be sufficient
infrastructure in proportion to the number of students enrolled.
(ii) The coaching center building shall adhere to fire safety codes, building safety codes
and other standards and shall obtain a Fire and Building Safety Certificate from the
appropriate authorities as decided by appropriate government.
(iii) For the assistance of the students, coaching center shall have first aid kit and medical
assistance/treatment facility. List of referral services like hospitals, doctors for emergency
services, police helpline details, fire service helpline, women helpline etc. shall be displayed
and the students shall be informed about them.
(iv) The coaching center building shall be fully electrified, well ventilated, and sufficient
lighting arrangements shall be made in each classroom of the building.
(v) Safe and potable drinking water shall be available for all students and staffs of the
Center.
(vi) The coaching center may be suitably fitted with CCTV cameras wherever required and
security shall be well maintained.
(vii) A complaint box or register may be placed at the coaching center for the students to
raise a complaint. Coaching center shall have committee for redressal of complaints /
grievances of students.
(viii) Provision of separate toilets for males and females shall be made within the coaching
center building premises.
10.1 Classes
(i) coaching center shall make efforts to complete the classes in the stipulated time as
mentioned in the prospectus.
(viii) coaching centers shall conduct coaching classes in a way that it is not excessive for a
student and it should not be more than 5 hours in a day and the coaching hours should
neither be too early in the morning nor too late in the evening.
17. Penalties
(1) The competent authority shall have power of the civil courts. The competent authority
shall have such power which is vested in the courts under civil procedure code 1908 (Central
Act no. 5 of 1908) for consideration of any suit namely:- (i) to accept evidence with proof
through affidavit;
(ii) to summon and to enforce attendance of any person, and his examination on oath;
(iii) to enforce production of records; and
(iv) to award cost, 11 (2) In case of violation of any of the terms and conditions of
registration or general conditions, the coaching center shall be liable for penalties as
follows: (i) Rs 25,000/- for first offence (ii) Rs. 1,00,000/- for the second offence (iii)
revocation of registration for subsequent offence
Compiled by Anshul Bhatt, AIR 22 CSE 2023, telegram: @anshulbhattias, Instagram: @imanshulbhatt

Resources

https://edaakhil.nic.in/edaakhil/# (video tutorials – how to file complaints under Consumer

Protection Act )

https://consumeraffairs.nic.in/sites/default/files/CP%20Act%202019.pdf (Consumer protection act)

https://indiankanoon.org/doc/83079544/#:~:text=While%20allowing%20the%20complaint%20of,ag
ony%20and%20harassment%20and%20Rs. (Minathi Rath case)

https://consumeraffairs.nic.in/sites/default/files/file-
uploads/latestnews/Landmark_Judgements.pdf (Shinjini Tiwari case)

https://indiankanoon.org/doc/63240104/ (Vikram Seth case)

https://www.education.gov.in/sites/upload_files/mhrd/files/Guideliens_Coaching_Centres_en.pdf
(Coaching Guidelines by Govt.)

News Reports

https://www.moneylife.in/article/fees-refund-should-students-sue-education-institutes-and-can-
they-do-so-yes/37790/66120.html

https://www.scconline.com/blog/post/2023/12/08/vlcc-unethical-unfair-trade-practices-coaching-
institutes-fee-refund-dcdrc-legal-news/