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Smart Summary

Factual and Procedural Background

These appeals arise from a judgment dated 07.09.2016 passed by the District Consumer Disputes Redressal Forum, Dehradun (District Commission) in consumer complaint No. 265 of 2013 filed by Km. Shubhangi Tiwari and Km. Richa Tiwari against Unison World School and another. Km. Shubhangi Tiwari was admitted to Class VI in 2007, with fees totaling Rs. 1,40,000/- paid along with registration fees. Km. Richa Tiwari was admitted to Class VII in 2010, with fees of Rs. 3,53,000/- paid. Fees for Shubhangi Tiwari were paid for the period 01.04.2012 to 30.09.2012, and for Richa Tiwari from 01.04.2012 to 31.03.2013.

On 27.06.2012, an application was submitted to the school alleging withdrawal of both students due to family problems. The school adjusted the account and issued a cheque of Rs. 32,085/- which was not encashed by the complainant. The complainants claimed entitlement to the entire security amount and alleged a deficiency in service by the school for not refunding approximately Rs. 4,50,000/-. The District Commission allowed the consumer complaint.

The appeals No. 201/2016 (filed by Unison World School) and No. 209/2016 (filed by Km. Shubhangi Tiwari and Km. Richa Tiwari) arise out of the same judgment and were heard together.

Legal Issues Presented

  1. Whether the complainants, being students, fall within the definition of "consumer" under the Consumer Protection Act, 1986, thereby permitting the complaint against the educational institution to be maintainable before the Consumer Forum.
  2. Whether there was any deficiency in service by the educational institution in relation to the refund of fees and security deposits.
  3. Whether the District Commission erred in directing additional payment beyond the cheque amount already issued by the school.

Arguments of the Parties

Appellant (Unison World School)'s Arguments

  • The complainants do not qualify as "consumers" under the Consumer Protection Act, 1986, and hence the complaint is not maintainable.
  • The school issued a cheque of Rs. 32,085/- towards the refund, which was not encashed due to the complainant's negligence.
  • There was no deficiency in service or usurpation of fees by the school.
  • The District Commission failed to specify the legal provision under which it directed an additional payment of Rs. 30,000/- beyond the cheque amount.
  • The school has complied with its obligations and the complaint should be dismissed.

Appellant (Km. Shubhangi Tiwari and Km. Richa Tiwari)'s Arguments

  • The appellants claimed entitlement to refund of Rs. 4,50,000/- as security deposit along with interest at 12% per annum.
  • They alleged that the opposite parties delayed and avoided payment of security money and fees refund, causing physical and mental agony.
  • They sought direction for the refund of the security amount with interest.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Global Engineering College, Jabalpur & Ors., III (2016 CPJ 230 (NC)) Students do not fall within the definition of consumer under Consumer Protection Act. Used to support the argument that the complaint was not maintainable as the complainants are students.
Regional Institute of Cooperative Management Vs. Naveen Kumar Chaudhary (2014) 3 CPR (NC) 152 Students are not consumers under the Consumer Protection Act. Supported the position that educational institutions do not render services covered by the Act.
Maharshi Dayanand University Vs. Surjeet Kaur (2010) 11 SCC 159 Educational institutions do not provide service under Consumer Protection Act; students are not consumers. Relied upon to hold that educational matters cannot be entertained by Consumer Fora.
Bihar School Examination Board Students are not consumers; educational institutions do not render service under Consumer Protection Act. Reaffirmed the principle that educational disputes are outside the Consumer Protection Act's scope.
Civil Appeal No. 17802 of 2017; Anupama College of Engineering Vs. Gulshan Kumar and others Educational institutions are not service providers under Consumer Protection Act; admission and fee disputes cannot be treated as deficiency in service. Applied to confirm that consumer forum jurisdiction does not extend to education-related fee disputes.
Director of Xavier Institute of Management & Entrepreneurship Kinfra Hi-Tech Park and others Vs. Sujay Ghose III (2022) CPJ 6 (NC) Educational institutions do not fall under Consumer Protection Act as service providers. Supported the view that complaints against educational institutes are not maintainable under the Act.
Manu Solanki and others Vs. Vinayak Mission University and other connected cases I (2020) CPJ 210 (NC) Educational matters do not come within the purview of Consumer Protection Act; complaints not maintainable. Relied upon to hold the complaint was not maintainable before Consumer Forum.

Court's Reasoning and Analysis

The court examined the facts and found that the appellants (students) paid fees and subsequently sought refunds and security deposits. The school issued a cheque of Rs. 32,085/- towards the refund, which the complainant failed to encash. The court noted the legal position as established by binding precedents from the Hon'ble Supreme Court and National Consumer Disputes Redressal Commission, which consistently held that educational institutions are not service providers under the Consumer Protection Act, and students are not consumers within the meaning of the Act.

The court relied on several authoritative judgments, including Maharshi Dayanand University Vs. Surjeet Kaur and Bihar School Examination Board, to conclude that consumer fora lack jurisdiction over educational disputes related to admission and fees. The court observed that the District Commission erred in entertaining the complaint and granting relief beyond the cheque amount already paid.

The court directed the complainant to return the uncashed cheque to the school for reissuance and held that the District Commission’s order suffered from material illegality and infirmity. Consequently, the impugned judgment was set aside.

Holding and Implications

The appeal No. 201 of 2016 filed by Unison World School is allowed, and the impugned judgment and order passed by the District Consumer Disputes Redressal Forum is set aside. The complaint is dismissed, and no order as to costs is made.

The appeal No. 209 of 2016 filed by Km. Shubhangi Tiwari and Km. Richa Tiwari is dismissed. The complainants, being students, are not consumers under the Consumer Protection Act, and thus the reliefs sought cannot be granted.

The statutory amount deposited, if any, by the appellant in Appeal No. 201 of 2016 is to be returned. The decision clarifies that educational institutions do not fall within the scope of the Consumer Protection Act in relation to admission and fee disputes, reinforcing existing legal precedent without creating new law.

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

    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

    1

    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

    1

    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

    2

    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

    3

    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

    4

    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

    5

    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

    7

    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.

    8

    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.

    9

    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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    Km. Shubhangi Tiwari & Richa Tiwari v. Manager, Unison World School
    (Nov 9, 2022)