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Consumer court gets tutorial to refund fees
In a relief to thousands of students studying in coaching institutes, a consumer forum in Delhi has held that they can seek a refund of fees if they decide to leave an institute without completing the course.
Updated : Aug 02, 2010, 12:50 AM IST
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In a relief to thousands of students studying in coaching institutes, a consumer forum in Delhi has held that they can seek a refund of fees if they decide to leave an institute without completing the course.
Though it was a Delhi consumer forum decision for coaching institute Brilliant Tutorials to refund Rs36,250 to a student who left the course midway due to health problems, it will have a bearing on hundreds of coaching institutes in the city-state.
Union human resource development minister Kapil Sibal had recently launched a tirade against private coaching institutes that have flourished and this judgment can be a trendsetter.
The court directed the institute to pay a compensation of Rs5,000 for harassment to the student and Rs2,000 as litigation cost.
In 2008, Kanishk had joined Brilliant for a two-year course, to prepare for competitive exams, and had paid the fees. However, after two months, he had to discontinue the classes due to health problems.
He approached the institute for a refund of the remaining half of the period and was assured it would be granted. However, when he didn’t get the money, he approached the court.
The institute told the forum that as per the terms of admission, fees once paid were not refundable. However, the forum said, “We have taken a consistent view that fees are bound to be refunded when such a service has not been availed.”
It also cited a judgment that said: “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 court said, “We find that the institute’s stand that fees once paid shall not be refundable was not tenable and they are liable to refund the fees on pro-rata basis for the period the complainant has not attended their coaching services.” It directed the institute to refund the fees and provide compensation within a month.
