Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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school fee

Querist : Anonymous (Querist) 15 August 2010 This query is : Resolved 
A school had been collecting fee in cash or in demand draft/payorder. Initially the school was collecting the fee & later a bank had deputed staff for few days to collect the fee.

Suddenly the school had changed the system as:
1. fee should be paid only in cash &
2. fee should be paid in the branch of a bank directly by the parents

the query is
a. whether school's stand that fee should be paid only in cash is correct &

b. the bank had rejected to accept fee paid in demand draft saying it will act per the instructions of its customer. Whether this stand of bank is correct. can the bank act on such instructions from its client.

c. are there any RBI instructions or other legal provisions which the bank had violated

d. what are the remedies available


c. as the bank
Koumarish Bhattacharya (Expert) 15 August 2010
You have not mentioned whether the school is a private one or a public one. Whether it is sponsored or aided.
A school management has rights to change its procedure of collection of fees vide a proper notification.
The Bank is right to reject the demand draft as it's collection of fees is a procedure of the school and it is acting under the instruction of the school authority.
s.subramanian (Expert) 15 August 2010
The bank has to act according to the instructions of its client viz., the school. hence the bank is right.

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