Indraprastha University asked to refund fees to student

March 10th, 2009 - 12:47 pm ICT by IANS  

New Delhi, March 10 (IANS) The Delhi Consumer Commission has directed the Guru Gobind Singh Indraprastha University (GGSIU) here to refund the fees, along with a compensation of Rs.5,000, to a student who opted out of its Bachelor of Business Administration (BBA) course.
“We have taken a view that the service provider cannot forfeit the fees or consideration for the services which it has neither provided nor the student has received,” the Commission headed by Justice J.D. Kapoor said in its judgement last week.

The university approached the Commission, challenging a District Forum order that directed it to refund the whole fees deposited by the student, Pallavi Dubey, and also pay a compensation.

“Forfeiture of the fees is not only unfair trade practice but also, even if there is any term of the contract to this effect, is an unconscionable contract and, therefore, void and not binding and not enforceable,” the Commission said.

Dubey took admission to the BBA course for the 2006-07 session at the Ideal Institute of Management, which is affiliated to GGSIU.

Later, she withdrew her admission and requested the university to refund the whole amount of Rs.51,000 she had deposited. The university refused to give her the money on the ground that the institute would suffer pecuniary losses on account of administrative expenses over the vacant seat that she had left.

Partly allowing the university’s appeal, the Commission justified the deduction of Rs.10,000 from the fees as request for withdrawal was made after the stipulated time.

“In the instant case, the request for refund of fees was made on Aug 1, 2006 which was even beyond the period of second counselling which was held on July 21, 2006 and the GGSIU was justified in deducting Rs 10,000,” it said.

Taking into considerations the terms of the contract, the Commission said that non-refund of the rest of the amount was “unjustified” and “uncalled for”.

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