“A student or a trainee may leave midstream if he finds the service deficient, substandard and non-yielding, and to tell him that fees once paid are not refundable was an unfair trade practice, as no service provider can take or charge the consideration of the service which it has either not given or has not been availed. The existing practice in many institutions of collecting advance payment and not refunding this should be done away with,” the order read.
The commission also pointed out that coaching institutions should not act like “money collection machines” and they are not just structures made of “bricks and cement” where students go for coaching after paying hefty fees. If a student is not comfortable with the teaching methods, skills or attitude of teachers at a coaching centre, he or she should not be denied a refund for the remaining period that was not attended, the commission said.
Attended 12 classes only
The mother claimed that she approached the coaching centre seeking admission for her daughter’s NEET preparation and paid the full fee of Rs 82,600 on June 17, 2022. She added that her daughter attended three classes until June 23, 2022, before developing severe neck and back pain to the extent that she could not sit in class. The student was taken to a hospital, where the doctor advised her to take complete bed rest for a month.
She later joined the next batch but suffered neck pain again, following which a doctor allegedly informed her mother that a fracture sustained in an accident a year earlier had caused an alignment issue, resulting in recurring pain. She was advised 12 therapy sessions and bed rest.
Accordingly, the mother informed the coaching centre about her daughter’s medical condition and requested that she be allowed to join the next batch, which the centre agreed to. The father later approached the coaching centre and requested that she be allowed to join the last NEET preparation batch.
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The student joined the batch that started in August 2022 and attended classes for a week but later discontinued the course, claiming that she was uncomfortable because of the management’s indifferent attitude. The parents informed the centre of the reason for discontinuing the classes and requested a refund. The request was rejected.
Aggrieved, they approached the commission alleging unfair trade practice and deficiency in service. The complainants were represented by advocates Nithya S and Priya Pillai.
The coaching centre, through its counsel B Vasudevan Nair, admitted that the complainant’s daughter took admission for NEET examination 2023 and also received the full study materials in June 2022. It was added that the fees collected from the complainants was already spent on the printing of study materials, question paper, OMR sheets, etc. It was further argued that there was no unfair trade practice on their part.
‘Parents desire better education for children’
The commission pointed out that after paying hefty coaching fees, parents may sometimes struggle to meet their daily expenses. “Every parent, whether rich or poor or from any mediocre family, would desire that their children should get a better education,” the commission said, noting that parents may even have to take loans to pay coaching fees.
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It said that if a student receives a refund for the unused portion of the course, the amount can be used to pursue coaching or education at another institute. Parents, it added, cannot be expected to pay another hefty fee after a student leaves one coaching centre.
The commission further held that students fall within the definition of “consumer” and can approach consumer commissions in such disputes. It rejected the coaching centre’s reliance on the no-refund clause, observing that students or their parents have no bargaining power to negotiate individual terms in admission forms. Such clauses, hence, cannot be used against students, it stated.
The commission directed the coaching centre to refund Rs 70,600 after deducting Rs 12,000 for the 12 days/classes attended, besides paying Rs 5,000 for mental agony and Rs 3,000 towards litigation costs.
Takeway
This ruling highlights that a coaching centre cannot deny refund to a student simply by pointing to its no-refund policy, which is an unfair trade practice.
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For consumer-related grievances, individuals can contact the consumer helpline in their respective states and Union territories (Kerala: 1800-425-1550) or call the National Consumer Helpline at 1915 for assistance.
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