• Fee refund by colleges on admission cancellation

The questions below are regarding deduction of Rs 40,000 (Rs Forty Thousand) as processing Fee!!! by NMIMS Mumbai on admission cancellation of my daughter.
The course Fee for BA Liberal Arts is Rs Four Lakhs per year
Q1 Is there any legal restriction limit of Processing charges?
Q2 Is there any rule on refund of Fees by colleges if admission is cancelled?
pl advise
Regards
Samir Chhabra
Asked 8 years ago in Civil Law

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10 Answers

Hello,

Rule depends on the rules and guidelines as mentioned in the procedure, if something beyond the deduction prescribed in the brochure has been done then they can be held legally liable otherwise not.

Regards

Let me know if I can be of any further help.

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

1) what were terms and conditions for admission laid down by college?

2) if it is mentioned that 10 per cent fees would be deducted on cancellation of admission the college would deduct Rs 40,000 as cancellation charges

3)when a student signs the admission form, he has no bargaining power to negotiate, or refuse to sign any particular clause in the admission form. Hence, these clauses should not be held against the student.

4)he non-refundable fee clause can be challenged as unconscionable under Section 23 of the Indian Contract Act, 1872, besides being in violation of the principles of public policy.

5) you can file complaint before consumer forum against college and seek refund of Rs 40,000 deducted by college

6) as per SC judgment college can deduct Rs 1000 as cancellation charges

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Session started at the time of cancellation of admission?

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

It subjects to the policy of colleges.. Is there any such ruling?kindly elaborate if it is

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

The case anyways that you are referring to had a different set of facts, in that case unfair trade practices was the issue and in that case the University forfeited the entire amount. It has no relevance to your case.

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

1. According to the applicable UGC regulations, if you had made the request for cancellation of admission well before the academic session has begun, so that the said seat could have been offered by NMIMS to another deserving candidate, all what they could have deducted is Rs. 1000. You may claim refund of RS. 39k. You could approach the High Court against NMIMS since they are a state inasmuch as they discharge a public function.

2. Yes the UGC and the Aicte rules pertaining to quantum that can be deducted against refund are very much in existence.

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

n the case of Islamic Academy of Education Vs. State of Karnataka (2003) 6 SCC 696. The Apex Court had expressed unhappiness with educational institutes charging the entire fees upfront and had said that students should only be asked to pay fees for a semester/ year to begin with.

2) as per UGC guidelines, the college can deduct Rs 1,000 if a student left midway but the rest of the fee has to be refunded.

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. This is purely illegal.

2. If the university is govt aided then file a writ petition, else file a civil suit for recovery of money with interest.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Every college will be having their own set of rules regarding payment of fees and refund process and deductions thereon.

You may read the conditions in this regard from the prospectus.

If this exorbitant deduction is not mentioned in the prospectus or not quoted as a clause then you may represent the matter with the college management.

If you don't get proper response you may resort to legal process by first issuing legal demand notice.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Have you verified the conditions and nature of case to which Apex court has given this decision?

Whether it is applicable to your situation.

Read the judgement fully and properly before concluding on it.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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