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  • CONSUMER PROTECTION ACT 1986
  • Protection Act, 1986-Ss. 2(1)(o) and 2(1)(d)(iii)" C. Mayank Tiwari Vs. FIITJEE Ltd. RP No.4335
  • Section 2 (r) of the Consumer Protection Act, 1986,
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  • CONSUMER PROTECTION ACT 1986
  • Protection Act, 1986-Ss. 2(1)(o) and 2(1)(d)(iii)" C. Mayank Tiwari Vs. FIITJEE Ltd. RP No.4335
  • Section 2 (r) of the Consumer Protection Act, 1986,
Smart Summary

Summary of Opinion: National Consumer Disputes Redressal Commission — Revision Petition No. 1385 of 2013

Factual and Procedural Background

The petitioner, WLC College India Ltd., placed an advertisement for a Post Graduate Diploma in Business Management. The respondent's son applied for admission, submitting the application form on 28 February 2011 and paying the fees. The respondent expected the course to commence in March 2011, but the course did not start on time. The respondent's son attended a five-day "Cutting Edge" module at Noida from 18 July 2011 to 22 July 2011, but the main course had still not commenced and the son discontinued the programme and requested a refund. When the petitioner did not respond to the refund request, the respondent filed a consumer complaint before the District Consumer Disputes Redressal Forum (Ahmedabad), which on 8 October 2012 partly granted relief: ordered refund of the paid amount with interest @ 9% per annum from March 2011 and awarded Rs.5,000 for mental shock and Rs.2,000 as costs. The petitioner appealed to the State Consumer Disputes Redressal Commission, Gujarat, which dismissed the appeal by order dated 9 January 2013. Aggrieved by the State Commission's order, WLC College filed this revision petition before the National Consumer Disputes Redressal Commission. The matter was heard on 9 February 2016.

Legal Issues Presented

  1. Whether the respondent's complaint alleging non-commencement of the course and claim for refund falls within the jurisdiction of the Consumer Protection Act, 1986 (i.e., whether the matter is one of "education" not covered as a service or whether the conduct amounts to an unfair trade practice/deficiency of service).
  2. Whether the petitioner breached any contractual or statutory obligation by failing to commence the course from the date indicated and thereby committed an unfair trade practice or deficiency of service.
  3. Whether the petitioner is entitled to retain or deduct amounts (specifically the claimed Rs.50,000 spent on the Noida training) from the refund, and if so, the appropriate quantum that may be deducted.
  4. What relief (refund, interest, costs, compensation) should be granted to the complainant in view of the facts and applicable law.

Arguments of the Parties

Petitioner’s Arguments (as advanced by counsel)

  • The respondent applied for admission only on 28 February 2011; advertisement indicated admissions were open for February/June 2011 batches and there was no promise in any advertisement, pamphlet or prospectus that the course would start in March 2011.
  • The respondent's expectation that the course would start in March 2011 was unfounded and not supported by any communication or advertisement from the petitioner.
  • The respondent's son attended the Noida "Cutting Edge" module in July 2011, which shows awareness that the main course had not yet commenced and that actual commencement would be informed later by e-mail; if the respondent had objections, he should not have attended the July module.
  • Clauses 9 and 10 of the application form provided that no fees, including registration and tuition fees, will be refunded for any reason.
  • The petitioner had incurred Rs.50,000 for the respondent's son's participation in the introductory Noida training and was willing to refund the balance after deducting that amount.
  • Education is not a commodity and educational institutions are not providing a "service" for the purposes of the Consumer Protection Act, 1986; reliance was placed on P.T. Koshy & Anr. v. Ellen Charitable Trust & Ors., Maharshi Dayanand University v. Surjeet Kaur, and Mayank Tiwari v. FIITJEE Ltd.

Respondent’s Arguments (in person)

  • The course was to commence from March 2011 and that was made clear by a communication dated 28 February 2011 from Shikha Ghhabra, Sr. Advisor, WLC Ahmedabad, which described "Year 1: March 2011" and set out fees from that date.
  • Given that fees were shown as payable from 1 March 2011, the respondent reasonably presumed the course would start from March 2011.
  • The "Cutting Edge" module's description suggests it ought to be held after the main studies; holding it at the beginning made the Noida camp of limited utility, and therefore the petitioner cannot properly claim Rs.50,000 spent on that module.
  • The petitioner failed to inform the complainant of the actual date of commencement despite several letters and e-mails and a personal meeting; representations were made that the course would start on 25 June 2011, and e-mails (including one dated 4 July 2011) went unanswered.
  • Because no information was provided and the course had not started by August 2011, the complainant withdrew to avoid uncertainty affecting the son's career; the District Forum and State Commission accepted the complaint and ordered full refund (subject to their orders).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
P.T. Koshy & Anr. v. Ellen Charitable Trust & Ors., Civil Appeal No.22532 of 2012 (decided 9.8.2012) Held (relying on Maharshi Dayanand University) that education is not a commodity and educational institutions are not providing a "service" for the purposes of Consumer Protection Act; thus matters of admission and fees cannot ordinarily be treated as deficiency of service before Consumer Fora. The court noted this authority but distinguished it on facts: P.T. Koshy (and the authority it relies on) dealt with matters of statutory power/quality; in the present case the National Commission found the facts related to administrative aspects and even treated the petitioner's conduct as unfair trade practice because the petitioner collected fees promising a March start and failed to commence by August, with no adequate communication.
Maharshi Dayanand University v. Surjeet Kaur, 2010 (11) SCC 159 Held that a student is not a "consumer" and a university is not rendering a "service" within the meaning of the Consumer Protection Act for certain matters (e.g., issuance of degrees contrary to rules); Consumer Fora have no jurisdiction in such cases. The court recognized this principle but distinguished the present facts as relating to administrative/transactional conduct (fee collection and non-commencement) rather than statutory exercise of university powers or quality-of-education issues; accordingly, the court held the present case could fall within unfair trade practice/consumer protection considerations.
Mayank Tiwari v. FIITJEE Ltd., RP No.4335 of 2015 (decided 08.12.2014, NC) National Commission, relying on the above authorities, dismissed a revision petition where the complainant discontinued coaching due to dissatisfaction with quality; used to support the proposition that certain educational matters may not be entertained as consumer disputes. The court observed that Mayank Tiwari concerned discontinuance due to quality dissatisfaction and was distinguishable from the present case. The National Commission treated the present case as involving unfair trade practice and administrative failures distinct from the facts of Mayank Tiwari.

Court's Reasoning and Analysis

The National Commission examined the communications and documentary record, including the letter dated 28 February 2011 from Shikha Ghhabra (Sr. Advisor), which indicated "Year 1: March 2011" and set out fees beginning from 1 March 2011. The court held that this communication reasonably supported the complainant's expectation that the course would commence from March 2011.

The court considered the petitioner's submissions (that admission was applied for on 28 February 2011, advertisements referred to February/June batches, clauses in the application form provided for no refund and that attendance at the July Noida module demonstrated awareness). The court found these contentions unpersuasive in light of the specific communication indicating March 2011 commencement and the fact that the course had not commenced even after four months of the scheduled date.

The court analyzed precedents cited by the petitioner (Maharshi Dayanand University, P.T. Koshy, Mayank Tiwari) and concluded that those authorities involved distinct factual matrices—such as statutory powers of universities or complaints about educational quality—and therefore were not directly applicable to the present dispute, which concerned administrative conduct and the temporal failure to commence the course after collecting fees.

The National Commission further noted that the petitioner admitted it was not recognized by AICTE, and on the facts the petitioner's conduct (collecting fees in February and promising session from March but not commencing the course even till August without proper communication) amounted to an unfair trade practice as contemplated by Section 2(r) of the Consumer Protection Act, 1986.

Regarding the petitioner's claim of expenditure of Rs.50,000 for the Noida training module, the court considered that amount excessive on the record and exercised its discretion to allow a partial deduction (allowance of Rs.25,000) in respect of such training costs, to be deducted from the total amount to be refunded.

Holding and Implications

Holding: The revision petition was partly allowed. The National Commission modified the orders of the Fora below and provided the following relief:

  • The petitioner is liable to refund all amounts received from the complainant after deducting Rs.25,000/- only (Rupees Twenty Thousand only) along with interest at the rate of 7% per annum from the date of filing of the complaint (21.12.2011) until realization.
  • Orders of the Fora below were modified accordingly, except that the orders relating to cost and payment for mental shock (as ordered by the District Forum) remain unchanged.
  • The refund is to be complied with within 30 days from the date of the National Commission's order; failing which interest at 12% per annum shall apply from the date of the order until realization.
  • No order as to costs was made for this revision petition.

Implications: The direct effect of the decision is a modification of the relief awarded by the lower Fora — the complainant will receive a refund of fees paid minus an allowed deduction of Rs.25,000 and with interest as specified. The court distinguished earlier authorities relied upon by the petitioner on their facts and treated the petitioner's conduct as an unfair trade practice in the circumstances of this case. The opinion does not articulate a broader rule applicable beyond distinguishing the cited precedents on their facts; the decision resolves the parties' rights in this particular factual matrix.


Presiding Member: Prem Narain

Date of National Commission order: 09 February 2016

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    Wlc College India Ltd. v. Ajay S. Bhatt

    NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

    NEW DELHI

    REVISION PETITION NO. 1385 OF 2013

    (Against the Order dated 09/01/2013 in Appeal No. 3647/2012 of the State Commission Gujarat)

    1. WLC COLLEGE INDIA LTD.

    WLC COLLGE 160-B WESTERN AVENUE, SAINIK

    FARMS

    NEW DELHI - 110062 ...........Petitioner(s) Versus

    1. AJAY S. BHATT

    PLO NO -2250 BLOCK NO-3, DAKSHINPURI SOCIETY

    NEAR FULVADI, HILL DRIVE

    BHAVNAGAR ...........Respondent(s)

    BEFORE:

    HON'BLE MR. PREM NARAIN, PRESIDING MEMBER For the Petitioner : Mr. Deepak Sabharwal, Advocate with Ms. Sheetal Tiwari, Advocate

    For the Respondent : In person

    Dated : 09 Feb 2016

    ORDER

    1. Being aggrieved by the order dated 9.1.2013 of the State Consumer Disputes Redressal Commission, Gujarat (in short 'the State Commission'), W.L.C. College has filed the revision petition before this Commission.

    2. In short the facts are that against the advertisement of the petitioner, the son of the respondent had applied for admission in 'Post Graduate Diploma in Business Management' at Ahmedabad campus. He filled and submitted the application form on 28.2.2011 and paid the fee. The respondent claims that the course was to start from March 2011, but the course did not start timely. His son was asked to join in Noida premises on 18.7.2011 to 22.7.2011. As the actual course did not commence even then, the respondent's son discontinued with the course and asked for the refund of the fee from the petitioner. Not getting any response, the respondent filed a consumer complaint before the Consumer Disputes Redressal Forum, (Ahmedabad), (in short 'the District Forum') which was decided on 8.10.2012 in his favour with following orders:-

    "i) The complaint is admittedly granted partly.

    ii) The respondent should pay back whole paid amount to the complainant along with interest @ 9% per annum, w.e.f. March 2011.

    iii) The respondent should pay Rs.5,000/- against mental shock and paid and Rs.2,000/- against cost of the complaint to the complainant."

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    3. The petitioner filed an appeal before the State Commission, which was dismissed vide its order dated 9.1.2013.

    4. Hence, this revision petition.

    5. Heard learned counsel for the petitioner and respondent in person.

    6. Learned counsel for the petitioner argued that the respondent approached the petitioner on 16.2.2011 for admission of his son against the advertisement issued by the petitioner. The respondent filled up and submitted the admission form on 28.2.2011. He also attended 'cutting edge' module course at Noida from 18.7.2011 to 22.7.2011. The assertion of the respondent that the course would start from March, 2011, was totally unfounded and was not based on any advertisement or pamphlet or prospectus issued by the petitioner. The advertisement clearly shows that the admission open in February/June 2011 Batches. When the respondent fills up the form only on 28.2.2011, how can he expect that the course will start from March, 2011 when there was no advertisement or no assurance to this effect. It was never promised that the course would start in March, 2011. The admission process mentioned in the advisement will definitely take some time and it was clearly mentioned that successful candidates will be informed by E-mail about their admission and date of commencement of actual course. As the respondent's son attended the 'cutting edge course' at Noida in July, 2011, it cannot be said that he did not understand that the course had not started in March 2011 and it will start at a later date. If he had any objections, he should have not attended the 'cutting edge course' in July, 2011. The petitioner had spent Rs.50,000/- on the respondent's son's attending course at Noida. The course was to start in September, 2011 and the course at Noida was only an introductory course to orient the students for the main course. The respondent decided to discontinue the studies of his son suddenly and demanded the full fees back. Clause 9 and 10 of the code of conduct of the application form, which provided code of conduct as well as terms and conditions read as under:-

    "9. No fees, including registration and tuition fees will be refunded for any reason whatsoever...

    10. No fees, including registration and tuition fees will be refunded for any reason whatsoever…"

    7. From the point of view of agreement of the Institution with the student, it is very clear that once admission is taken, fee along with registration fee will not be refunded in any circumstances. However, in the present case, the petitioner was willing to refund the fee after deducting Rs.50,000/- that was spent on initial introductory course wherein the respondent's son had participated in July, 2011 at Noida. Both the fora below have not appreciated the agreement entered between the Institution and the student.

    8. Learned counsel mentions that education is not a subject matter under the Consumer Protection Act, 1986 and he quoted the following judgments:-

    A. "P.T. Koshy & Anr. Vs. Ellen Charitable Trust & Ors., Civil Appeal No.22532 of 2012 decided on 9.8.2012. It has been held that:-

    2

    In view of the judgment of this Court in Maharshi Dayanand University Vs. Surjeet Kaur 2010 (11) SCC 159 wherein this Court placing reliance on all earlier judgments has categorically held that education is not a commodity.Educational institutions are not providing any kind of service, therefore, in matter of admission, fees etc., there cannot be a question of deficiency of service.Such matters cannot be entertained by the Consumer Forum under the Consumer Protection Act, 1986."

    B. Maharshi Dayanand University Vs. Surjeet Kaur, 2010 (11) SCC 159. It has been held that:

    "Consumer Protection-consumer/Consumer dispute/Locus standi-Generally- University- if covered-Direction to issue BEd degree against rules of examination- Legality-Held, respondent as a student is neither consumer nor University is rendering any service to its students-Hence, Consumer Fora have no jurisdiction to entertain complaint-Respondent pursued MA and BEd simultaneously contrary to general rules of examination which prohibits pursuing two courses simultaneously-She had chosen to continue MA, while admission to BEd was cancelled-Without disclosing the said fact, respondent managed to appear for supplementary examinations for BEd, and passed, which results were withheld on detecting the mischief-Complaint filed for direction to award BEd degree- Held, claim of respondent was for a direction to appellant to act contrary to its own rules-No court has competence to issue direction contrary to law nor can direct an authority to act in contravention of statutory provisions-Hence, National Commission should not have issued direction to appellant to act contrary to statutory provisions-Also, respondent cannot plead estoppel either by conduct or against statute so as to gain any advantage just because she was erroneously allowed to appear in the examination-Consumer Protection Act, 1986-Ss. 2(1)(o) and 2(1)(d)(iii)"

    C. Mayank Tiwari Vs. FIITJEE Ltd. RP No.4335 of 2015, decided on 08.12.2014 (NC), wherein the National Commission while relying on the above two judgements has dismissed the revision petition.

    9. Respondent in person argued that the course was to start from March, 2011 and it was wrong to say that petitioner never admitted or agreed that course would start from March. This is very clear in a communication by Shikha Ghhabra, Sr. Advisor, WLC, Ahmedabad, dated 28.2.2011, which states as follows:-

    "This is to certify that Mr.Vatsal Bhatt has registered for the Professional Diploma in Business Management at WLC College Ahmedabad Campus. Wigan & Leigh College is one of the largest government funded UK institutions with a world-wide reputation for quality education. The college is over 150 years old and has an active presence in 26 countries across the world.

    The college has been operating in India for the past 15 years and has 22 campuses located in India. The college offers professional education and training in the areas of Business Management, Fashion Technology, Advertising & Graphic Design and Media Studies. The fee per year for the course is as follows:

    3

    Year 1: March 2011

    Tuition Fee Payable To WLC, College (I) Ltd. Rs.1,80,000/ - Security Deposit Rs.10,000/-

    Service Tax @ 10.30% of Tuition fee Rs.18540/- Registration fee payable to Wigan &

    Leigh College UK GBP200 (Pound fee)

    Year 2: March 2012

    Tuition Fee Payable To WLC College(I) Ltd. Rs.1,80,000/- Service Tax @ 10.30% of Tuition fee Rs.18540/- Registration fee payable to Wigan &

    Leigh College UK GBP 200 (Pound Fee)"

    10. The respondent pointed out that from the above description, it is clear that the fee was being charged from 1stMarch, 2011 and therefore the obvious presumption would be that course will start from March itself. The respondent also drew my attention to its description of cutting age training as mentioned in the document 'A Bridge to Your Future'. This is mentioned as follows:-

    "Cutting Edge: The training is an essential aspect of your professional development. It specifically focusses on general skills and attitude that all professionals need to acquire. Cutting Edge training begins at your learning location with basic workshops on skills development and then progressively builds skills and attitude required by you to complete effectively at work. It covers areas such as visioning, goal settling, planning and organising, which help to achieve goals. Other areas include integrity, perseverance, time and resource management. This programme helps you gain muscle in developing appropriate attitude and beliefs to handle change, adversity and stress at the workplace. It systematically engages you to take responsibility for your own development career and life. Camp: The Cutting Edge training culminates in the Boot Camp at Noida. This five day residential camp is designed to take your learning to an entirely different level. Training at the camp is entirely experimental. You will get the opportunity to attend a detailed assessment centre and will be provided individualised feedback and counselling. Camp trainers will also assist you in goal setting and keep track of your progress over the years."

    11. The respondent asserted that it is clear from the above description of the cutting age module that the camp was to be held after the student has been through the main studies in the campus. To hold this camp at the beginning of the course has no meaning. Therefore,

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    organising cutting age training for the son of the complainant where he attended for 5 days was useless and no money can be claimed by the petitioner for this course. He pointed out that petitioner has claimed Rs.50,000/- as spent on the son of the complainant for this module in Noida. It was also stated by the respondent that after depositing fees and other amounts, the petitioner did not provide any information in respect of the date of start of the course at Ahmedabad campus in spite of several letters and E-mails sent by the complainant to the petitioner. The complainant personally met the in-charge of Ahmedabad campus where she had promised that the course would start from 25thJune, 2011. The complainant again sent E- mail on 4thJuly, 2011 and asked about the actual date of start of the course because by then the course had not started. No reply was sent by the petitioner in respect of this mail. Even though the petitioner is now saying that the course was to start from September, 2011, but the complainant was never informed about this by the petitioner, until the complainant's son decided to leave the course. The course was to start from March, 2011, but it did not start till August 2011 and no information was provided to the complainant about the starting date of the course in spite of many communications sent to the petitioner, the complainant had no choice but to withdraw the candidature of his son from the course because the complainant did not want to spoil the career of son in the uncertainty of the course. Both the fora below have accepted the complaint and have allowed the full refund of all the money paid by the complainant to the petitioner.

    12. I have considered the arguments advanced by both the parties and have gone through the records thoroughly. From the communication sent on 28.2.2011 by Shikha Ghhabra, Sr. Advisor, WLC, Ahmedabad, it is evident that the first year would start from 1stMarch, 2011 and the second year would start from 1stMarch, 2012. Obviously, the fee was charged from 1stMarch, 2011 till end of session. Complainant is right when he presumes that the course will start from March, 2011. As the course did not start even after four months of the scheduled date, the deficiency on the part of the petitioner is self-evident. I have gone through the judgments cited by the learned counsel for the petitioner. I find that in case of Maharshi Dayanand University Vs. Surjeet Kaur (supra) the issue was related to issuance of B.Ed. degree, which can only be issued as per the Rules and Regulations of the concerned University. Similarly, in the case of Mayank Tiwari Vs. FIITJEE Ltd. RP No.4335 of 2015, decided on 08.12.2014 (NC), the complainant discontinued with his coaching on account of not being satisfied with quality of coaching. In the case of P.T. Koshy & Anr. Vs. Ellen Charitable Trust & Ors., Civil Appeal No.22532 of 2012 decided on 9.8.2012, the Hon'ble Supreme Court has relied on its judgment in case of Maharshi Dayanand University Vs. Surjeet Kaur (supra) and has held that "education is not a commodity. Educational institutions are not providing any kind of service, therefore, in matter of admission, fees etc., there cannot be a question of deficiency of service." The facts of these cases relate to statutory powers and functions of the educational institutions or the quality of education. The facts of the present case relate to the administrative aspects and are different from the cases cited. Moreover, the petitioner is not recognised by the AICTE as admitted in the reply and therefore, it cannot be treated as an educational institution in the present case. Thus, the petitioner's act comes under the unfair trade practice as he did collect the fees in February itself and promised the session from March, but did not commence the actual course even till August. As per Section 2 (r) of the Consumer Protection Act, 1986, unfair trade practice is a subject matter that is covered under the Consumer Protection Act, 1986. However, in the present case I am of the view that petitioner has spent some money in arranging training at

    5

    Noida. The petitioner has stated that Rs.50,000/- has been spent for training, which seems excessive and allowance of Rs.25,000/- can be given for this training, which the petitioner may deduct from the total money paid by the complainant to him, while refunding the remaining amount.

    13. Based on the above discussions, the revision petition is partly allowed and petitioner is liable to refund all the amounts received by him from the complainant after deducting Rs.25,000/- only (Rupees Twenty Thousand only) along with interest at the rate of 7% p.a. from the date of filing of the complaint i.e. 21.12.2011 till realization. The orders of the Fora below stand modified accordingly. Orders relating to cost and payment for mental shock as ordered by the District Forum remain as it is. This order be complied within 30 days from the date of this order, failing which, an interest of 12%p.a. shall be applicable for payment from the date of this order till realization.

    14. No order as to costs for this revision petition.

    ......................

    PREM NARAIN

    PRESIDING MEMBER

    6

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    Wlc College India Ltd. v. Ajay S. Bhatt
    (Feb 9, 2016)