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Unison World School v. Km. Shubhangi Tiwari & Richa Tiwari

State Consumer Disputes Redressal Commission
Nov 9, 2022
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Structured Summary of Opinion — State Consumer Disputes Redressal Commission, Uttarakhand (09.11.2022)

Factual and Procedural Background

This opinion concerns two first appeals arising from the same judgment and order dated 07.09.2016 of the District Consumer Disputes Redressal Forum, Dehradun (consumer complaint No. 265 of 2013), in which the District Commission had allowed the consumer complaint titled "Km. Shubhangi Tiwari and Km. Richa Tiwari Vs. Manager, Unison World School and Another."

The salient factual matrix (as pleaded in the complaint) is:

  • Kms. Shubhangi Tiwari and Richa Tiwari (daughters of Shri Vijaykant Tiwari) were students at Unison World School. Shubhangi obtained admission to Class VI in 2007 (fees Rs. 1,40,000/- plus registration) and Richa obtained admission to Class VII in 2010 (fees Rs. 3,53,000/-).
  • Fees were paid for the following periods: Shubhangi, 01.04.2012 to 30.09.2012; Richa, 01.04.2012 to 31.03.2013.
  • By application dated 27.06.2012, the complainant sought withdrawal of both students on account of family problems. The school, after adjustments, issued a cheque of Rs. 32,085/- which was not encashed by the complainant. The complainant alleged entitlement to the entire security amount and claimed that opposite parties usurped about Rs. 4,50,000/-, alleging deficiency in service.
  • In their written statement the opposite parties (school) stated that cheque No. 496882 for Rs. 32,085/- dated 26.10.2012 had been issued and denied any entitlement of the complainant to the entire security deposits; they further contended that the Consumer Protection Act did not apply and that the complaint was not maintainable since the withdrawal application was filed after two months from start of session.

Procedurally, two appeals (First Appeal No. 201 / 2016 by Unison World School and First Appeal No. 209 / 2016 by Km. Shubhangi Tiwari and Km. Richa Tiwari) challenging the District Commission's order dated 07.09.2016 were heard together and decided by the State Commission on 09.11.2022 (pronounced 09.11.2022; final hearing 01.11.2022).

Legal Issues Presented

  1. Whether an educational institution (here, Unison World School) is a "service provider" and whether a student (or parent/guardian of a student) is a "consumer" within the meaning of the Consumer Protection Act, 1986/2019 so as to permit jurisdiction of the Consumer Fora in disputes concerning admissions, fees, security deposits and related matters.
  2. Whether, on the facts, the District Commission correctly found deficiency in service and awarded relief (including any additional amount beyond the cheque of Rs. 32,085/-) when the school contends the refund cheque was issued and the complainant failed to encash it.

Arguments of the Parties

Appellant (Unison World School) — Appeal No. 201 of 2016

  • Contended that the complaint was not maintainable before the Consumer Fora because the complainant does not fall within the statutory definition of "consumer" under the Consumer Protection Act and educational institutions are not "service providers."
  • Relied on earlier decisions (including Global Engineering College, Jabalpur and Regional Institute of Cooperative Management v. Naveen Kumar Chaudhary) to support the non-maintainability contention and argued the District Commission did not explain why that law was inapplicable.
  • Asserted that the amount of Rs. 32,085/- due to the complainant had already been paid by cheque and any failure to encash the cheque was the complainant's negligence, not a deficiency on the part of the school.
  • Challenged the District Commission's direction (reference made to an additional Rs. 30,000/- in the impugned order) as unsupported by law and evidence.

Appellant (Complainant) — Appeal No. 209 of 2016

  • Asserted entitlement to a refund of security amounts totalling approximately Rs. 4,50,000/- together with interest at 12% per annum, alleging deposits to the school of Rs. 1,81,853/- and Rs. 2,91,370/- on different dates.
  • Alleged the opposite parties (school) delayed or avoided refunding security and other fees, causing physical and mental pain and suffering; sought directions to refund the stated amounts with interest.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Maharshi Dayanand University Vs. Surjeet Kaur, (2010) 11 SCC 159 Held that a student is not a "consumer" and a university/educational institution is not rendering a "service" within the meaning of consumer protection law for matters such as award of degree/admissions; consumer fora lack jurisdiction. The Court relied on this Apex Court principle as foundational: it contributed to the conclusion that the educational institute is not a "service provider" and the student is not a "consumer," making the complaint not maintainable before the Consumer Forum.
Bihar School Examination Board (authoritative decision as cited) Earlier precedent relied on by the Apex Court in Maharshi Dayanand University to determine student/non-consumer status in educational disputes. Referenced as part of the body of authority supporting the principle that educational disputes do not fall within the Consumer Protection Act; used to reinforce the non-maintainability conclusion.
Krishan Mohan Goyal Vs. St. Mary's Academy and another (Revision Petition No. 3144 of 2016; National Commission judgment dated 17.12.2017) Discussed Maharshi Dayanand University and concluded that a student is neither a consumer nor is the educational institute rendering any service for Consumer Act purposes. The State Commission cited this National Commission decision which discussed Maharshi Dayanand University and used it to support the same legal proposition that educational matters are outside the Consumer Fora's jurisdiction.
Anupama College of Engineering Vs. Gulshan Kumar and others (Civil Appeal No. 17802 of 2017; decided 30.10.2017) Held that educational institutions are not providing any kind of "service" and hence matters of admission/fees cannot be treated as "deficiency in service" under the Consumer Protection Act. The Court applied this Apex Court authority to reinforce the conclusion that the District Commission erred in entertaining the complaint; reliance on this case supported setting aside the District Commission's order.
Director of Xavier Institute of Management & Entrepreneurship Kinfra Hi-Tech Park and others Vs. Sujay Ghose, III (2022) CPJ 6 (NC) National Commission held that educational institutes do not fall within the purview of the Consumer Protection Act as they are not rendering services. The State Commission cited this later National Commission decision (which itself relied on a Larger Bench decision) to demonstrate contemporaneous authority for non-maintainability; it supported the Court's conclusion.
Manu Solanki and others Vs. Vinayak Mission University and other connected cases, I (2020) CPJ 210 (NC) (Larger Bench) Larger Bench held that educational matters do not come within the purview of the Consumer Protection Act and complaints against educational institutions are not maintainable before Consumer Fora. The Court relied on this Larger Bench decision (as relied upon by the National Commission in subsequent cases) as part of the cumulative authority establishing that consumer fora lack jurisdiction in educational disputes; it formed part of the basis for setting aside the District Commission's order.
Global Engineering College, Jabalpur & Ors. (cited by appellant) Referenced by the appellant as authority for the proposition that educational disputes may not be maintainable under the Consumer Protection Act (as cited in the appeal). The Court recorded that the appellant relied upon this decision in support of the non-maintainability argument; it formed part of the appellant's precedent-based submissions considered by the Court.
Regional Institute of Cooperative Management Vs. Naveen Kumar Chaudhary, (2014) 3 CPR (NC) Cited by the appellant as authority on the non-applicability of the Consumer Protection Act to certain educational disputes. The Court noted the appellant's reliance on this case as part of the body of National Commission authorities arguing that students are not "consumers" for the purposes of the Consumer Protection Act.

Court's Reasoning and Analysis

The Court proceeded by examining the factual record together with the applicable legal authorities. The principal analytical steps were:

  1. The Court noted the line of authority from the Apex Court and the National Commission (including Maharshi Dayanand University v. Surjeet Kaur, decisions of the National Commission such as Krishan Mohan Goyal, the Larger Bench decision in Manu Solanki and the National Commission decision in Director of Xavier Institute v. Sujay Ghose) which collectively establish that educational institutions are not "service providers" and that students are not "consumers" for the purposes of the Consumer Protection Act in relation to admissions, awarding of degrees, fees and allied matters.
  2. On that legal foundation the Court concluded that the subject-matter of the complaint — being an educational dispute about admission/withdrawal/refund of fees/security deposits — could not properly be entertained by the Consumer Fora because the statutory definitions and the relevant judgments exclude such matters from the Consumer Protection Act's scope.
  3. With respect to the specific monetary dispute, the Court observed that the appellant-school in Appeal No. 201 had conceded (in paragraphs 4 and 5 of its appeal) that Rs. 32,085/- was paid to the complainant by cheque. Given that the cheque had not been encashed, the Court held that negligence, if any, was attributable to the complainant for not encashing the cheque.
  4. Accordingly, the Court directed a practical remedy: the complainant was to send the unencashed cheque to the institution so that the school could reissue the cheque in the complainant's favour; the school was directed to reissue the cheque on receipt of the old cheque "at the earliest."
  5. Because the Court found that the District Commission's conclusion permitting the consumer complaint to proceed was contrary to the cited body of law (i.e., it suffered from "material illegality, infirmity" and was "erroneous"), the Court determined that interference with the District Commission's order was warranted.
  6. Applying the legal principle that educational disputes do not fall within consumer jurisdiction, the Court concluded that the reliefs sought in Appeal No. 209 (by the complainant) could not be granted and that the impugned judgment must be set aside in relation to both appeals.

Holding and Implications

Holding:

Appeal No. 201 of 2016 is ALLOWED; Appeal No. 209 of 2016 is DISMISSED. The impugned judgment and order dated 07.09.2016 passed by the District Consumer Disputes Redressal Forum, Dehradun is set aside and the original complaint stands dismissed.

Direct implications and consequential directions:

  • The State Commission held that the educational institute (Unison World School) is not a "service provider" and the students/respondents are not "consumers" within the Consumer Protection Act; therefore consumer fora lack jurisdiction for the subject dispute.
  • Because the school admitted issuance of a cheque for Rs. 32,085/-, and the cheque remained unencashed, the Court directed the complainant to return/send the old cheque to the school so that the school may reissue the cheque; the school was directed to reissue the cheque upon receipt of the old cheque.
  • Any statutory amount deposited by the appellant in First Appeal No. 201 of 2016 was ordered to be returned to the appellant.
  • No order as to costs was made in respect of either appeal.
  • The Court directed administrative actions: a copy of the Order to be provided to all parties free of cost, uploaded on the Commission's website, and the record of the District Commission returned with a copy of this judgment for record and necessary information; the file to be consigned to record room; a copy of the Judgment to be kept in appeal No. 209 of 2016.

Pronounced on: 09.11.2022. Coram: Ms. Kumkum Rani, Judicial Member II and Mr. B.S. Manral, Member.

Show all summary ...

Appeal No. 201 of 2016 &

Appeal No. 209 of 2016 Unison World School Vs.

Km. Shubhangi Tiwari

AND

Km. Shubhangi Tiwari Vs.

Manager, Unison World School & Anr.

09.11.2022

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STATE CONSUMER DISPUTES REDRESSAL COMMISSION UTTARAKHAND, DEHRADUN

Date of Institution: 03.10.2016

Date of final hearing: 01.11.2022

Date of Pronouncement: 09.11.2022

First Appeal No. 201 / 2016

Unison World School Kirsali Greens, Mussoriee Diversion Road, Dehradun Through its Bursar

(Through: Sh. Vaibhav Jain, Advocate) …..Appellant

VERSUS

Km. Shubhangi Tiwari and Km. Richa Tiwari Both D/o Shri. Vijaykant Tiwari R/o Mohalla Thersambhal, Moradabad, Uttar Pradesh Through Natural Guardian Sh. Vijaykant Tiwari S/o Late Sh. Chote Lal R/o Mohalla Thersambhal, Moradabad, Uttar Pradesh (Through: Sh. Vivek Kumar, Advocate)

…..Respondent

AND

Date of Institution: 06.10.2016 Date of final hearing: 01.11.2022 Date of Pronouncement: 03.11.2022

First Appeal No. 209 / 2016

Km. Shubhangi Tiwari and Km. Richa Tiwari Through Natural Guardian & daughters of Sh. Vijaykant Tiwari R/o Mohalla Thersambhal, Moradabad, Uttar Pradesh (Through: Sh. Vivek Kumar, Advocate)

…..Appellant

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VERSUS

1. Manager, Unison World School Krishali Greens, Mussoriee Diversion Road, Dehradun

2. Principle Unison World School Krishali Greens, Mussoriee Diversion Road, Dehradun (Through: Sh. Vaibhav Jain, Advocate) …..Respondents

Coram:

Ms. Kumkum Rani, Judicial Member II Mr. B.S. Manral, Member

ORDER

(Per: Ms. Kumkum Rani, Judicial Member II):

These two appeals have been directed against the judgment and order dated 07.09.2016 passed by the District Consumer Disputes Redressal Forum, Dehradun (hereinafter to be referred as the District Commission) in consumer complaint No. 265 of 2013 styled as Km. Shubhangi Tiwari and Km. Richa Tiwari Vs. Manager, Unison World School and Another, wherein and whereby the District Commission has allowed the consumer complaint.

2. Appeal No. 201 of 2016, Unison World School Vs. Km. Shubhangi Tiwari and Km. Richa Tiwari as well as Appeal No. 209 of 2016 Km. Shubhangi Tiwari and Km. Richa Tiwari Vs. Manager, Unison World School and Another, have arising out from the same judgment and order

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dated 07.09.2016, hence, it is proper and just to decide them together in the interest of justice.

3. The facts giving rise to the appeals in hand, in brief, are as such that Km. Shubhangi Tiwari daughter of Sh. Vijaykant Tiwari has got admission in Class-VI in the year 2007 and total fees, i.e. Rs. 1,40,000/- alongwith registration amount was paid to the opposite parties. It is further averred that second daughter Km. Richa Tiwari of Sh. Vijaykant Tiwari has also got admission in Class-VII in the year 2010 and paid Rs. 3,53,000/- to the opposite parties. It is further averred that the fees of Km. Shubhangi Tiwari was paid for 01.04.2012 to 30.09.2012, whereas the fees for Km. Richa Tiwari from 01.04.2012 to 31.03.2013 was paid to the opposite parties. Subsequently, an application dated 27.06.2012 was submitted before the opposite parties alleging that both the students Km. Shubhangi Tiwari and Km. Richa Tiwari, were withdrawing from the opposite parties on account of some family problems. The opposite parties after adjusting the amount, furnished a cheque of Rs. 32,085/- to the complainant, which was not encashed. It is further alleged that the complainant is entitled to get the whole security amount from the opposite parties thereby the opposite parties usurped the amount to the tune of Rs. 4,50,000/- from the complainant, hence, there was a deficiency in service on the part of the opposite parties. In such circumstances, the District Commission be pleased to grant the relief as mentioned in the complaint.

4. In the written statement, it was alleged that a cheque No. 496882 of Rs. 32,085/- dated 26.10.2012 was given to the complainant as per law. It is incorrect to say that the complainant is entitled to get the entire security

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deposits; there was neither any deficiency in service on the part of the opposite parties, nor they usurped any fees. It is further alleged that the provision of Consumer Protection Act, 1986 does not apply to the present case and the suit is not maintainable. As per the version of the opposite parties, the complainant has submitted their withdrawal application after two months from the date of start of session, therefore, after completing all the formalities, a cheque of the payable amount was given to the complainant.

5. After hearing both the parties and after taking into consideration the material available on record, learned District Forum / Commission passed the impugned judgment and order dated 07.09.2016, whereby it is held as under:-

"ifjoknh }kjk ;ksftr ;g ifjokn foi{kh laLFkku ds fo:) Qhl fjQ.M vadu cRrhl gtkj fipklh :i;s rFkk gtkZ&en esa rhl gtkj :i;s fnykus gsrq Lohdkj fd;k tkrk gSA /kujkf"k dh vnk;xh 30 fnu ds vUnj lqfuf"pr dh tk;A

;fn fufnZ'V vof/k esa /kujkf"k dk Hkqxrku ugha fd;k tkrk gS rks ifjoknh] mijksDr leLr /kujkf"k ij fu.kZ; dh frfFk ls olwyh rd 8% okf'kZd C;kt Hkh ikus dk ik= gksxkA"

6. On having been aggrieved by the aforesaid order of the District Commission, the appellant (opposite party) has preferred the present appeal No. 201 of 2016, contending that the District Commission erred in

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considering this fact that the present complaint was not maintainable, because the complainant does not lie within the definition of 'consumer' as defined in the Consumer Protection Act, 1986, which was also upheld by the Hon'ble National Commission in :-

a) Global Engineering College, Jabalpur & Ors., III

(20160 CPJ 230 (NC)

b) Regional Institute of Cooperative Management Vs. Naveen Kumar Chaudhary, (2014) 3 CPR

(NC) 152.

and the District Commission has not given the reason why the aforesaid law was not applicable to the present case. It is further averred that the amount due of Rs. 32,085/- towards refund of fees of the complainant was already paid by the opposite parties - appellant, through cheque which was an admitted case of the complainant; if the complainant failed to get the said cheque encashed, then the negligence is of the complainant and not of the opposite party. It is further pleaded in the appeal that the appellant is appropriate in paying the Rs. 32,085/- to the complainant and they have not committed any deficiency in service on their end. It is further averred that the District Commission failed to state under which provision of law the District Commission directed the appellant to make an additional payment of Rs. 30,000/- to the complainant, when it was apparent that the amount of Rs. 32,085/- have also been paid by the school was appropriate and they have not committed any deficiency in service, hence, the finding of the District Commission is not based upon the

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evidence and law. Therefore, the Commission be pleased to set aside the impugned judgment and the complaint should be dismissed.

7. In the appeal No. 209 of 2016, the appellant - complainant have averred that the amount to the tune of Rs. 4,50,000/- as security amount alongwith interest @ 12% per annum be awarded in favour of the appellant- complainant. It is further averred that the appellant had deposited Rs. 1,81,853/- and Rs. 2,91,370/- at different dates in the account of opposite parties. It is further averred that the opposite parties did not pay the security money etc. till the date of four months and they avoided to pay the same to the appellant - complainant. The act of not paying the security amount and other amount of fees as refund to the appellant - complainant has caused the physical, mental pain and agony to the appellant. The order of the District Commission is not appropriate; the appellate Commission be pleased to direct the opposite parties to refund the fees of Rs. 4,50,000/- alongwith interest @ 12% per annum.

8. We have heard both sides and perused the record available before us.

9. Hon'ble National Commission in its judgment dated 17.12.2017 rendered in Revision Petition No. 3144 of 2016; Krishan Mohan Goyal Vs. St. Mary's Academy and another, has discussed the law laid down by Hon'ble Apex Court in Maharshi Dayanand University Vs. Surjeet Kaur reported in (2010) 11 SCC 159, in which it has been laid down by Hon'ble Apex Court that a student is neither a consumer, nor the University is rendering any service, relying on the decision given in the case of Bihar

6

School Examination Board (supra). Relevant portion of the said decision is reproduced below:

"The respondent as a student is neither a consumer nor is the appellant rendering any service. The claim of the respondent to award B.Ed. degree was almost in the nature of a relief praying for a direction to the appellant to act contrary to its own rules. The National Commission, in our opinion, with the utmost respect to the reasoning given therein did not take into consideration the aforesaid aspect of the matter and thus, arrived at a wrong conclusion. The case decided by this Court in Bihar School Examination Board (supra) clearly lays down the law in this regard with which we find ourselves in full agreement with. Accordingly, the entire exercise of entertaining the complaint by the District Forum and the award of relief which has been approved by the National Commission do not conform to law and we, therefore, set aside the same."

10. Hon'ble Apex Court in Civil Appeal No. 17802 of 2017; Anupama College of Engineering Vs. Gulshan Kumar and others, decided on 30.10.2017, has held that in view of the judgment of this Court in Maharshi Dayanand University (supra), wherein this Court placing reliance on all earlier judgments, has categorically held that educational institutions are not providing any kind of service, therefore, in matter of admission, fees

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etc., there cannot be a question of deficiency in service and such matter cannot be entertained by the Consumer Forum under the Consumer Protection Act, 1986.

11. Hon'ble National Commission in its latest judgment rendered in the case of Director of Xavier Institute of Management & Entrepreneurship Kinfra Hi-Tech Park and others Vs. Sujay Ghose

reported in III (2022) CPJ 6 (NC), has specifically held that the Educational Institute does not fall within purview of Consumer Protection Act, 1986, as it is not rendering any services. While coming to the above conclusion, Hon'ble National Commission has relied upon a decision of Larger Bench of three Members of Hon'ble National Commission in the case of Manu Solanki and others Vs. Vinayak Mission University and other connected cases reported in I (2020) CPJ 210 (NC), wherein the Larger Bench has held that educational matters do not come within the purview of the Consumer Protection Act, 1986 and, therefore, the complaint is not maintainable.

12. Considering the aforesaid facts and circumstances of this case as well as the law laid down in the case of Bihar School Examination Board (supra); Maharshi Dayanand University (supra); Anupama College of Engineering (supra) and Director of Xavier Institute of Management & Entrepreneurship Kinfra Hi-Tech Park and others (supra), it is crystal clear that the appellant No. 1 - Educational Institute is neither "service provider", nor the respondent - complainant being a student is a

"consumer". Accordingly, we are of the view that the matter in question cannot be brought before the Consumer Fora.

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13. In the appeal No. 201 of 2016, the appellant has conceded in para Nos. 4 and 5 that the amount due of Rs. 32,085/- towards refund of the fees of the complainant was already paid by the opposite parties through cheque and if the complainant failed to get the said cheque encashed, then negligence is on the part of the complainant and not on the part of the opposite parties.

14. The above pleas have clearly shown that the cheque sent by the opposite parties was not encashed, hence in such circumstances it is directed to the complainant to send the cheque to the institution to reissue it in favour of the complainant. The school is also directed to reissue the cheque on receipt of the above old cheque at the earliest.

15. In the light of the above cited case laws, we are of the considered opinion that the impugned judgment and order passed by the District Commission suffers from material illegality, infirmity and the same is erroneous. Therefore, we inclined to interfere with the impugned judgment, hence the appeal No. 201 of 2016 filed by the Unison World School deserves to be allowed; impugned judgment and order passed by learned District Commission is liable to be set aside. No order as to costs.

16. As the complainant (appellant in Appeal No. 209 of 2016) being a student, is not a consumer and the impugned judgment is set aside as hereinbefore held, hence, in such circumstances, the reliefs sought in the appeal No. 209 of 2016 cannot be granted to the complainant - appellant. Therefore, this appeal is also liable to be dismissed. No order as to costs.

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17. Accordingly, the appeal No. 201 of 2016 is hereby allowed and the appeal No. 209 of 2016 is dismissed. Impugned judgment and order passed by the District Commission is set aside. The complaint shall stand as dismissed. No order as to costs.

18. Statutory amount deposited, if any, by the appellant in First Appeal No. 201 of 2016 be returned to the appellant.

19. A copy of this Order be provided to all the parties free of cost as mandated by the Consumer Protection Act, 1986 /2019. The Order be uploaded forthwith on the website of the Commission for the perusal of the parties. The record of the District Commission be returned to the concerned District Commission alongwith copy of this judgment for record and necessary information.

20. File be consigned to record room along with a copy of this Order.

21. A copy of the Judgment be kept in the appeal No. 209 of 2016.

(Ms. Kumkum Rani) Judicial Member II (Mr. B.S. Manral) Member

Pronounced on: 09.11.2022

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