• School fee

Need to understand schools legal standing on applicable fee in case a parent withdraws before the start of the academic session or in the middle of the session. 

For a new academic session, a school starts planning 3 months prior which involves hiring teachers, buying furniture, classroom interiors, arranging school busses and many administrative tasks. All this is based on expected strength at the start of the new academic session and requires funds.

Moreover, Schools have limited seats and any withdrawal without timely information deprives another child his right to education and also impacts schools finances. Such practice may result in collapse of a school if everyone starts doing it. 

If a school has sent mutiple notices asking parent to inform as per specific date about any plans to withdraw And if parents still dont do thats, can school demand fee or partial fee.
Asked 5 months ago in Business Law

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7 Answers

schools are not obligated to refund fees if a student withdraws mid-term, 

 

2) schools may consider individual circumstances, such as relocation, health issues, or financial hardship, when evaluating refund requests. 

 

3) Supreme Court had settled the fee issue in 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.

Ajay Sethi
Advocate, Mumbai
99754 Answers
8141 Consultations

school can demand a partial or full fee if a parent withdraws their child before the start of the academic session, depending on the school's policies and any applicable regulations. Many schools have clauses in their enrollment agreements or fee structures that specify the refund policy for withdrawals before the term begins.

Most schools have a published fee structure and refund policy, which outlines the conditions under which fees are refunded or retained upon withdrawal. 

If the withdrawal occurs before the academic session starts, the school may retain a portion of the fees to cover administrative costs or other expenses incurred in preparing for the student's admission. 

If the fee retention policy is deemed unreasonable or unfair, parents may have recourse through consumer protection laws or educational authorities. 

T Kalaiselvan
Advocate, Vellore
89956 Answers
2490 Consultations

They have to return the balance fees to the parents depending on any administrative charges deduction 

Prashant Nayak
Advocate, Mumbai
34494 Answers
248 Consultations

Yes, schools can demand a fee or partial fee if a parent withdraws the child without timely notice, especially if the school has made clear the deadline for withdrawal. This is because schools, like any business, incur costs in planning for the new academic session, and late withdrawals can affect their financial planning, staff allocation, and resources.

If the school has sent multiple notices to inform parents of the withdrawal deadline, and the parent has failed to notify by the specified date, the school may have grounds to demand compensation or partial fees to cover the administrative and operational costs incurred due to the late withdrawal. It’s essential to check the terms and conditions outlined in the school's admission agreement, as these typically cover the school’s policies on fee refunds and withdrawal notices.

Shubham Goyal
Advocate, Delhi
2054 Answers
14 Consultations

Dear Sir/Madam,

You are suggested to send proper reply of the notice and oppose the move/action of the school. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

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.

Anik Miu
Advocate, Bangalore
11005 Answers
125 Consultations

A school has the legal right to demand partial or full fees when a parent withdraws a student without giving timely notice, particularly if the school has issued prior communication specifying a deadline for withdrawal. When a parent fails to inform the school before the notified date, the school can reasonably claim that it relied on confirmed enrolment data to plan academic resources, hire staff, arrange transport, and make infrastructure investments for the upcoming session.

The school allocates limited seats and plans its operations months in advance. A last-minute or mid-session withdrawal results in not only financial loss but also deprives another student of admission. If the school communicated the need for timely withdrawal intimation through circulars, emails, or parent notices and the parent failed to respond or withdraw by the stipulated date, the school can justifiably treat the seat as occupied and recover the applicable fees.

Indian courts have recognized that while schools must refund fees when withdrawal takes place before the academic year starts and no services are availed, they may deduct reasonable administrative charges. However, in cases where the school incurred costs or the parent failed to comply with withdrawal timelines, courts have upheld the school’s right to retain or recover fees for the relevant period.

The school should maintain written records of all notices sent and ensure that terms of fee refund or forfeiture are clearly stated in the admission form or prospectus. If the parent disputes the fee demand, the school can seek recovery through civil proceedings, as such disputes fall outside the purview of consumer forums following the Supreme Court's ruling that educational institutions are not service providers under the Consumer Protection Act.

Yuganshu Sharma
Advocate, Delhi
944 Answers
2 Consultations

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