Mumbai: The Mumbai Suburban Additional District Consumer Dispute Redressal Commission found the Education Initiative Trust, which operates under Bombay International School (BIS), guilty of unfair trade practices. The case was brought forth by Chirag Sheth, who had enrolled his daughter, Ziya, at BIS in August 2021, paying Rs. 6,02,550 in annual fees. However, after securing admission for Ziya in a school closer to their Ghatkopar residence, Sheth decided to withdraw her admission from BIS and sought a refund of the fees paid.
Sheth informed BIS of his intent to withdraw in March 2022, several months before the academic year was scheduled to commence in July 2022. Despite his advance notice, the school refunded only Rs. 20,000 and withheld the remaining amount, citing its policy. Multiple appeals to the school by Sheth to reconsider and provide a reasonable refund were unsuccessful, prompting him to file a complaint with the consumer commission.
In its ex-parte judgment, the commission ordered BIS to return the full fees paid, along with a 6% interest rate from 2022. Additionally, BIS was directed to pay Rs. 50,000 for mental and physical discomfort and Rs. 10,000 in litigation charges.
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The commission stated in its order: “Based on analysis and findings, we are of the firm opinion that the school has no legal right to forfeit the term fees and admission fees paid by the complainant, as the admission was canceled before the commencement of the academic year. Forfeiture of term fees and admission fees without any justifiable reason is definitely an unfair trade practice.”
The commission highlighted that the school had nearly four months to fill the vacated seat following the withdrawal and noted the lack of any evidence to justify the forfeiture of the remaining fees. The ruling drew from precedent, including the Andhra University vs. Janjanam Jagadeesh (2010) and Birla Institute of Technology & Science vs. Abhishek Mengi (2013) cases, which established that educational institutions cannot retain fees without providing educational services.
