Compensation for Deficiency in admission process,failure to publish result, issue degree certificate, TC in Educational institutions under consumer protection Act
Rithvik K.R.
v. Union of India 2015 SCC
OnLine Kar 2305.
Facts: In the
present case, four students applied for admission in KIMS
against management quota for I
year MBBS course for the academic year
2014-2015 along with fees and
donations amounting to approximately eighty
lakhs. The father of one of
the student was also made to sign an undertaking that he understands that the
admission given to his son was only provisional and subject to approval by
RGUHS/MCI and in excess of the stipulated management seats. In case of
non-approval, the management and the college will not be responsible. Later,
three of the students were discharged from the college on the ground that their
admission to the course was in excess of the admission capacity fixed for the
college. The college discharged them only after the expiry of the last date of
taking admission in colleges for that academic year.
Issue: Whether there
was a deficiency in service by the college authorities
in admission process?
Decision: The Court
found the conduct of the college of taking such an
undertaking from the parents
of the student along with huge amounts of
donation disturbing and
ordered the MCI and Central Government to take
serious note of the matter and
take measures to ensure transparency in the
admission process even against
management quota, especially by making it
more technology based. The High
Court also found the college’s act of not
discharging the students with
illegal admission and not refunding the amount
received from them well before
the last date for admission in colleges for
that academic year as grossly
irresponsible and as it resulted in them losing
one academic year and
unnecessary litigation causing unimaginable mental
agony to them the High Court
ordered the college to pay Rs. 1 crore each to all the three students as
compensation along with refund of the amount paid by them to the college for
the admission.
Nipun Nagar
v. Symbiosis Institute of International Business
Facts: The
Complainant had surrendered his seat after getting admission
into another institute. The
Opposite Party refused to refund the entire fees
to the complainant. The
National Commission relied on the notice issued by
the University Grants
Commission providing that institutes should refund
the entire fee, except for
processing fee of Rs. 1000/-, to students who
withdraw before the start of
the course.
Bihar School
Examination Board v. Suresh Prasad Sinha AIR 2010 SC 93.
Facts: This was an
appeal filed to the Supreme Court by Special Leave under Article 136 of the
Constitution of India, 1950. In this case, the Appellant-Board failed to
publish result of Respondent’s son in Senior Secondary Examination. As a
result, the Respondent’s son had to re-appear for examination and suffered loss
of 1 year. Pursuant to this, the Respondent sought compensation by filing a
consumer complaint to the District Consumer Forum, Patna. The District Forum
ordered compensation. Thereafter, the Appellant Board’s appeal was dismissed by
State Commission. The Appellant’s appeal before National Commission was also
dismissed. Hence, the Appellant preferred the present appeal by Special Leave.
Issue: Whether a
statutory School Examination Board comes within purview
of Consumer Protection Act?
Decision: The Supreme
Court held that the object of the Consumer
Protection Act is to cover in
its net, services offered or rendered for a
consideration. Any service
rendered for a consideration is presumed to be a
commercial activity in its
broadest sense (including professional activity or
quasi-commercial activity).
But the Act does not intended to cover discharge
of a statutory function of
examining whether a candidate is fit to be declared
as having successfully
completed a course by passing the examination. The
fact that in the course of
conduct of the examination, or evaluation of
answer-scripts, or furnishing
of mark-sheets or certificates, there may be
some negligence, omission or
deficiency, does not convert the Board into a
service-provider for a
consideration, nor convert the examinee into a consumer who can make a
complaint under the Act. In essence, the Supreme Court held that the process of
holding examinations, evaluating answer scripts, declaring results and issuing
certificates are different stages of a single statutory non-commercial
function. The functions of Appellant cannot be divided into partly statutory
and partly administrative. Appellant does not offer its ‘service’ to any
candidate and examination fee paid by student is not consideration for
availment of any service. Therefore, deficiency in process of examination does
not convert Appellant into a service provider for a consideration nor convert
examinee a consumer, therefore Respondent’s complaint would not be
maintainable. The Appellant Board was not rendering any ‘service’, hence
impugned orders of Consumer Fora set aside and the Appeal was allowed.
Maharshi
Dayanand University v. Surjeet Kaur
Facts: The dispute
arose when the Respondent felt aggrieved by the action
of the Appellant refusing to
confer the degree of B.Ed. on her. The background of the facts giving rise to
the case was that the Respondent took admission in the academic session of
1994-95 as a regular student to pursue the course of M.A. in Political Science
from Government College, Gurgaon. The Respondent appeared in the Part-II
Examination in May, 1995 as a regular candidate and in the same academic
session of 1994-95 she also applied for admission in the B.Ed. (correspondence
course) without disclosing the fact that she was already pursuing the regular
course of M.A. in Political Science. The University at the time of preparation
of the results of M.A. in Political Science discovered that the Respondent had
been pursuing her B.Ed. course in violation of Clause 17(b) of the General
Rules of Examination and accordingly the Respondent was informed that in view
of the aforesaid rules she should exercise her option to choose anyone of the
courses. The Respondent voluntarily and consciously opted for pursuing her
course of M.A. in Political Science and forewent her B.Ed. Degree course.
Subsequently, the University as a general measure of benefit granted an
indulgence through Notification dated 16.3.1998 giving a further chance to such
Ex. Students who had not been able to complete their post-graduation/B.Ed.
courses within the span of prescribed period as provided for under the rules.
The supplementary examinations in this regard were announced by the University in
the month of December, 1998. The Respondent applied under the said Notification
for appearing in B.Ed. examination and succeeded in appearing in the
examinations and also passed the same. The Appellant- University refused to
confer the degree of B.Ed. on the Respondent. Aggrieved, the Respondent
approached the District Forum in the year 2000 praying for the relief which has
now been ultimately awarded in the impugned order of National Commission.
(2010) 11 SCC 159.
Issue: Whether
imparting of education by the educational institutions for
consideration falls within the
ambit of service as defined under the Consumer Protection Act?
Decision: The National
Commission stated that imparting of education by
the educational institutions
for consideration falls within the ambit of service
as defined under the Consumer
Protection Act. The Supreme Court set aside the impugned judgement, on grounds
of non-competence of the district forum to entertain the complaint since Bihar
School Examination Board v. Suresh Prasad Sinha clearly enunciated
that services provided by educational institutions cannot be brought under
Consumer Protection Act. The Supreme Court is right in upholding Bihar
Examination Board, as bringing educational institutions under the ambit of
consumer protection would make administrative matters subject to litigation and
would cause a flood in suits to harass the administration.
Demand of
money for transfer certificate
Banne Singh
Sekahwat v. Jhunjhunu Academy
Facts: The
Complainant had filed a revised petition against the order of the
State Commission dated
02.06.2016. The Complainant’s daughter was a
student of the OP school. She
passed her 12th exam in the year 2013 and
contacted school for the issue
of transfer certificate and refund of her caution money. The school demanded
Rs. 10,000/- as a precondition to issue transfer certificate though there was
no outstanding fees. Because of refusal to issue TC, Complainant’s daughter did
not get admission in academic year 2013-14. So the Complainant filed consumer
complaint in the District Forum and sought compensation of Rs. 4,50,000./- The
OP denied all the allegations and denied that Complainant never approached
school. The District Forum directed school to issue TC and character
certificate to Complainant’s daughter within 15 days otherwise liable to pay
Rs. 10,000/-. The Complainant was aggrieved of the meagre amount of compensation
awarded by District Forum preferred an appeal in State Commission. The State
Commission did not find any fault with the order of District Forum. Hence,
Complainant filed revised petition under NCDRC.
2017 SCC OnLine NCDRC 128.
Issue: Whether there
was deficiency in service on part of school?
Decision: NCDRC held
that it is clear that on account of wrongful act of
the Opposite Party daughter of
the Complainant was prevented from getting
admission in college in the
current session i.e.2013-14. Wastage of one year
in the career of a student has
wide implication on the job as also promotion
prospects. Both the forums
have failed to appreciate this aspect of the matter while deciding on the compensation
to be paid. Therefore impugned order cannot be sustained. Thus the order of
State Commission was modified and it was directed to OP to pay Rs. 50,000/- to
the Complainant within a month. On
failing the Complainant shall be entitled to recover the money by filing execution
petition in the District Forum.
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