Controller, Vinayak Mission Den. COL.& Anr. vs Geetika Khare
- SCC(2010) 12 SCC 215
- Neutral2010 INSC 401
- SCR[2010] 8 SCR 719
Ratio decidendi
The rule this decision rests on
Where an educational institution receives fee from a student for admission to a course, and the student subsequently withdraws, the institution must refund the fee paid together with interest at 12% per annum from the date of receipt, but this refund alone constitutes adequate redressal and no further compensation for damages or mental harassment is warranted where there is no reliable evidence that the withdrawal resulted from deficiencies in the service provided by the institution rather than from the student's or parent's personal circumstances.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Controller, Vinayak Mission Den. Col. & Anr. ...Appellants
Versus
Geetika Khare ...Respondent
O R D E R
Leave granted.
National Consumer Disputes Redressal Commission, New
Delhi, has by the order impugned in these appeals upheld an
ex parte order passed by the State Commission directing
refund of a sum of Rs.5,15,000/- to the respondent with
interest @ 12% p.a. but reduced the amount of compensation
awarded to the respondent to Rs.2,50,000/- only as against
Rs.6,15,000/- awarded by the State Commission.
The facts giving rise to the appeals have been set
out in the orders passed by the State Commission and that
passed by the National Consumer Disputes Redressal
Commission, New Delhi. We need not, therefore, repeat the
same here again. Suffice it to say that the respondent had
filed a complaint against the appellant herein alleging
deficiency in service and seeking not only refund of
Rs.5,15,000/- paid by her towards fee but also compensation
for the loss of an academic year and mental harassment etc.
The respondent's case as set out in the complaint was that
she had secured admission to a BDS college established and
run by the appellant but had to withdraw from the same on
account of lack of recognition of the said college and also
other deficiencies, which not only caused inconvenience and
mental harassment but also resulted in the loss of an
academic year. The State Commission passed an ex parte order
on 25th March, 2004 granting the following reliefs to the
respondent:
"In the result the complaint succeeds and is allowed. The compensations claimed are hereby decreed. The opposite parties 01 and 02 are hereby directed to pay Rs.5,15,000/- with 24% interest with effect from 11-08-1998 till the date of payment. The opposite parties 01 and 02 are further directed to pay Rs.5,00,000/- as damages for spoiling the good academic years of the complainant with another sum of Rs.1,00,000/- as compensation for the mental agony, harassment and torture. The complainant is entitled to cost of Rs.5,000/- only."
Aggrieved by the above order, the appellant appealed
to the National Commission which appeal has been partly
allowed by the latter reducing the amount of compensation
payable to the respondent to Rs.2,50,000/- only.
Heard learned counsel for the parties. A reading of
the order passed by the National Commission shows that
during the pendency of the appeal before it the appellant
had been directed to deposit an amount of Rs.5,15,000/-
received by it towards fee from the respondent with interest
@ 9% w.e.f. 31st July, 2000, and the respondent given
liberty to withdraw the same. It is not in dispute that the
said amount was deposited by the appellant and has been
disbursed to the respondent. The only question that remains
is whether any further amount is payable to the respondent,
in the facts and circumstances of the case.
It is argued on behalf of the appellant that order
passed by the State Commission was an ex parte order and
that there was no evidence whatsoever on record to suggest
that the respondent had suffered any prejudice or
inconvenience on account of her having taken admission in
the dental college of the appellant. It is also pointed out
that the father of the respondent had in terms of his letter
dated 30th July, 2000 withdrawn the respondent from the
college because of his own problems. This is evident from a
reading of the letter, relevant portion whereof is
hereunder:
"Sir, I am herewith informing that I am withdrawing my daughter Ku. Geetika Khare from 1st Professional B.D.S. Course because of my own problems and for her admission in other college."
It was contended that although the rules and
regulations governing the admission of students to B.D.S.
course did not permit the candidate to seek refund in the
above circumstances the amount of fee paid to the college
together with interest @ 12% and been deposited by the
appellant and withdrawn by the respondent.
On behalf of the respondent, it was on the other
hand, contended that the commission was justified in holding
that there was a deficiency in the service provided by the
appellant which finding did not call for any interference
from this Court.
Having carefully considered the rival submissions
made at the bar and the material placed on record we are of
the opinion that refund of the amount of fee deposited by
the respondent with interest @ 12% p.a. w.e.f 31st July,
2000 till the date of payment meets the ends of justice.
Since the said amount has already been paid to the
respondent, we see no reason to award any further amount to
the respondent. We accordingly allow these appeals and
direct that the claim made by the respondent in her
complaint filed before the State Commission shall stand
settled with the payment of Rs.5,15,000/- with interest @
12% already received by the respondent. The directions
issued by the State Commission and modified by the National
Commission for payment of further amount of compensation
fixed at Rs.2,50,000/- by the National Commission shall
accordingly stand set aside. No costs.
..........................................J. (MARKANDEY KATJU)
...........................................J. (T.S. THAKUR) New Delhi July 9, 2010
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