Suchitra. S (Advocate) 07 January 2010

Doubt

Please let me know whether a student is a 'consumer' under Consumer Protection Act. I heard there is one recent Kerala HC decision saying student is not a 'consumer' under CPA.

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A V Vishal (Advocate) 07 January 2010

The issue of recognition of professional educational institutions and course by the concerned regulatory authorities become the subject of dispute under the Consumer Protection Act (1986) had led to far reaching verdict awarded by the National Consumer Dispute Redressal Commission. The apex consumer court has resolved the basic question whether educational institutions come under the ambit of consumer courts and held that they too are liable for deficient services rendered. The verdict was in response to complaint field by 12 students, who joined the Buddhist Mission Dental College in Bihar. The College in its admission advertisements for the BDS Course, gave an impression that it is affiliated to Magadh University and recognized by the Dental Council of India. After joining the College the students to their dismay found that it was neither affiliated to Magadh University nor it is recognized by the Council. As a result, they not only lost two academic years but also the money spent on fees, hostel charges, etc. Holding the service rendered by the College to be deficient, the Commission directed it to refund all admission expenses with interest and pay compensation for the loss of two years and, also the cost of the petition.

Apart from the redressal of the grievances of students, the importance of the award lies in the fact, that it brought educational institution under the ambit of the Consumer Protection Act. The Commission observed, "Imparting of education by an educational institution for consideration falls within the ambit of 'service' as defined in the Consumer Protection Act. Fees are paid for service to be rendered by way of imparting education by the educational institutions. If there is no rendering of service, the question of payment of fee world not arise. The complaints (the student in this case) had hired the service of the respondents (the College) for consideration and so they are consumers as defined in Consumer Protection Act".

Educational institutions that collect fee are thus service providers and Students and their parents who are paying for these services can seek compensation for such deficiencies.

What Constitutes deficiency of services

Some of the instances that can be considered as deficiency of services are listed below :-

i. Running Un-recognised schools and colleges

ii. Employing under qualified and untrained teachers.

iii. Inadequate infrastructure facilities like library, laboratory, accommoda-tions, furniture, playground

iv. Adopting of syllabi which is not prescribed or standard syllabi

v. Issuing of misleading advertisements promising placements/practical training

vi. Delay in providing provisional certificates, resulting in denying admission to the students during the academic year in to the next higher course.

vii. In case the management runs an unrecognised educational institute due to which students become ineligible to appear in the examination having studied for the whole year or even a few months the institution can be held responsible.

viii. Promise of placements in India and abroad that are not fulfilled can also make such institutions liable for compensation. Such a promise of guaranteed placement which is not fulfilled later on is a clear case of unfair trade practice and such managements are liable to sue for the loss sustained by the students.

ix. Inadequate computer lab

x. Lack of adequate space and facilities to undertake projects as required under the course curriculum

xi. Laboratory facilities being inadequate with requisite books often not available

xii. Frequent shuffling of classes

xiii. Hostel facility not in close proximity of the campus

xiv. High student-faculty ratio that is detrimental to students’ interest.

xv. Non-supply of hall tickets for examination which may result in loss of one year.

xvi. When promised practical training is not given even though the course is completed.

xvii. A student though present in the examination hall but is shown as being absent.

xviii. Failure of institutions to offer facilities that were promised at the time of collecting fees.

xix. Failure to provide hygienic food in residential school where boarding facilities are offered

xx. Suffering of students due negligent driving of the driver of private buses/transport employed by the institute

xxi. In respect of pre-nursery and play schools failure of the institutions to ensure suitable safety measures for children below 5 years especially with regard to fire, water, electricity

xxii. Non following of prescribed or standard syllabi

xxiii. Refusal to issue transfer certificate and conduct certificate when demanded by students or parents on account of poor services offered by the institute

xxiv. Refusal by the institute to refund the deposit amount when request for transfer certificate has been made by the student on account of genuine and unavoidable circumstances.

xxv. Collection of the entire fees for the whole year in advance and refusal to refund the part fees when a student wants to leave the institute mid-term on account of genuine unavoidable circumstances.

(The list given above is purely suggestive and indicative and the actual interpretation of what constitutes a “Deficiency in Service” shall have to be analysed and interpreted on a case by case basis)

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Daksh (Student) 07 January 2010

Dear Suchitra S,

In so far the question of being a consumer is concerned the same is evident from the perusal of

Section 2 (d) "consumer" which means any person who, -

(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for
any commercial purpose; or

(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person;

Explanation : For the purposes of sub-clause (i), "commercial purpose" does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment;

(e) "consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint;

(f) "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied, or as is claimed by the trader in any manner whatsoever in relation to any goods;

(g) "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;

In your case by availing the services against the consideration you have become a consumer and you can go to the Consumer Court alleging the deficiency of service and or unfair trade practice.
The facts of any two cases differ and based on that the order/judgement also varies.