Dear Client,
The question that has come up for consideration is whether the school authority can claim fee, when parents withdraw the admission before the academic year begins or in the middle of an academic year, despite the repeated requests to confirm the admission.
Yes, there is nothing inherently impossible about this claim. As per the Consumer Protection Act of 2019, schools are considered as service providers and the parents are the consumers of the educational service provided. The nature of discourse between the school and the parents is purely contractual. Herein, the school’s prospectus, containing the descriptions about the school, is the offer. Once this offer is accepted by the parents and the application along with the prescribed fee is submitted, that forms the consideration. Subsequently, a contract is entered into between the parent and the school. Once the terms and conditions of the admission, including the refund policy, are accepted by the parent, those terms become binding. The acceptance could be done through a signed document or an online acknowledgment.
One this contract becomes binding, the service provider-consumer relation persists between the school authority and the parent. Thus, practices that can be categorized as unfair trade practice, such as charging an arbitrary amount of fee, not providing the promised services, refusing justiciable refunds etc. may be challenged by law. This applies vice versa as well. That is, if a significant revenue has been spend by the service provider towards delivering the promised service, and the other party backs out causing losses, then the former entity would be entitled to move the court to make good the loss suffered.
Legal principle: Section of Consumer Protection Act of 2019. Refer to,
- Springdales School Vs. Sumedha & Ors. (2019), wherein the National Consumer Dispute Redressal Commission held that the school is entitled to retain reasonable charges towards administrative expenses that were already incurred. However, the court clarified that the full for the academic year couldn’t be deducted if the child hasn’t attended a single day of class.
Thus, the claim contended for has a reasonable prospect of being sustained.
I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.