Coaching centres can charge fee only for services rendered
Coaching centres are entitled legally to charge fee only for services which they actually provide to students and not more than that.
While observing this, the District Consumer Disputes Redressal Commission, Chandigarh, has directed Aakash Educational Services Limited to refund Rs 10,006 to a city resident. The commission has also directed the coaching centre to pay compensation of Rs 5,000 to the complainant.
SK Verma, a resident Sector 49-D, Chandigarh, in a complaint filed before the commission stated that on April 19, 2023, he contacted
Aakash Educational Services Limited, Sector 34, Chandigarh, for admission of his daughter in tuition classes. He was asked to pay Rs 2,000 towards security and Rs 30,091 for the tuition fee, which was the first instalment of the total fee, for a two-year course.
If any child after enrolling with an institute withdraws himself from a course for the reasons whatsoever, he/she cannot be penalised by way of forfeiture of his/her entire money paid to a coaching centre by his/her parents. Coaching centres are entitled legally to charge fee only for services which they actually provide to students and not more than that. —District Consumer Disputes Redressal Commission, Chandigarh
He was asked to come next day 15 minutes in advance at the centre along with his daughter, who had to collect study material and dress among other things, before attending her classes.
When he visited the centre next day with his daughter for collecting study material, a person from the institute misbehaved with him. As there was no cooperation from counsellor and other employees, he decided not to send his daughter for attending tuition classes at the centre.
He gave a written request for the immediate refund of money he had deposited at the centre vide a letter dated April 20, 2023. He also issued a legal notice to the centre demanding a refund of Rs 32,091 along with interest, but the coaching centre authorities did not pay any attention to it. The complainant requested the commission to direct the centre to refund Rs 32,091 paid for tuition along with interest, besides paying compensation for mental agony, harassment and litigation expenses.
On the other hand the coaching centre stated that the complaint was not maintainable and should be dismissed as the complainant’s daughter being a student does not fall under the definition of “consumer”. The centre stated that the terms and conditions of the admission form signed and accepted by the complainant and his daughter had an arbitration clause wherein it was specifically stated that in the event of any dispute or difference arising between the parties, the matter would be referred to sole arbitrator.
After hearing arguments of both the parties, the commission stated that though the complainant had received a refund of Rs 22,085 from the coaching centre during the pendency of the complaint, the latter had not refunded the remaining amount.
The commission stated that there was no dispute as the complainant’s daughter did not attend any coaching/tuition class at the coaching centre. As the complainant’s daughter did not avail coaching/tuition services since the beginning of the course, he was entitled to refund of the amount paid to the coaching centre.
The commission stated: “The opposite party has neither rendered any services to the consumer nor refunded his amount which amounts to deficiency in service as well as unfair trade practice.”
“In view this the coaching centre is directed to refund the remaining amount of Rs 10,006 minus TDS to the complainant along with lump sum compensation of Rs 5,000. If any child after enrolling with an institute withdraws himself from a course for the reasons whatsoever, he/she cannot be penalised by way of forfeiture of his/her entire money paid to a coaching centre by his/her parents. Coaching centres are entitled legally to charge fee only for services which they actually provide to students and not more than that,” the commission stated in its order.
