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Ashish M (Chartered Accountant)     15 September 2010

Refund fees if student opts out, National Commission rules


Refund fees if student opts out, National Commission rules


An educational institution is bound to refund admission fee of a student if he/she opts out before a course has started and the vacant seat goes to another candidate, the national consumer court has ruled. The National Consumer Disputes Redressal Commission directed the College of Science and Technology, Vishakhapat-nam under hra University to refund the fee charged from a student, Janjanam Jagedeesh, who withdrew from M.Sc. in Animal Biotechnology course in 2004. It said the institute could retain Rs. 1,000 towards processing fee from the Rs. 80,915 Jagedeesh deposited.

“Institute was unfair in retaining the entire fee, even after the student withdrew from their college,” the commission said in its July 6 order.

The order assumes significance in view of the practice followed by most schools and colleges, of not refunding admission fee even if a student withdraws before classes commence.

google_protectAndRun("ads_core.google_render_ad", google_handleError, google_rendeThe Commission ordered that Jagedeesh’s money be refunded along with an interest of six per cent per annum within two months, failing which “the petitioners (college and university) will pay interest at the rate of 10 per cent per annum from the date of complaint till its payment”.

In its defence, the college and university cited a Supreme Court ruling, which said a university, did not render any service and therefore, students could not claim to be a consumer. But the National Commission rejected the argument, saying the SC order was in the context of conduct of examination only.


 5 Replies

Renuka Gupta ( Gender Researcher )     15 September 2010

Very informative posting . Thanks.

V. VASUDEVAN (LEGAL COUNSEL)     15 September 2010

Thanks. This ruling should be widely circulated to public and students community. Also the  University should highlight this ruling by way of a  press release for the benefit of students.

Dhawal Bhandari (ADVOCATE)     02 October 2010

kindly upload the judgement or post case citation if possible !!!

Dhawal Bhandari (ADVOCATE)     02 October 2010

Ok here is the judgement attached below for your reference.....

Attached File : 34 34 judgement.pdf downloaded: 218 times
1 Like

Adv ramesh chheda (prop)     09 October 2010

thnx fr ts

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