Case Note & Summary
The petitioner, Manu Arkasali, had taken admission in the Post Graduate Diploma in Management (PGDM) course at the second respondent institution, Sri Dharmasthala Manjunatheshwara Institute for Management, for the academic session starting from 1st August 2016. He paid a total fee of Rs.3,20,000 in two instalments on 21.03.2016 and 31.05.2016. Due to domestic reasons including his father’s bypass heart surgery, the petitioner withdrew his admission on 10.06.2016, well before the commencement of the academic session. The institution acknowledged his cancellation mail but only refunded Rs.12,000 on 17.08.2016, leading to a representation dated 10.11.2016 seeking full refund after deducting processing fees. Since the institution did not respond, the petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India, praying for a direction to refund the fees after deducting processing charges as per AICTE guidelines. The second respondent contended that the writ petition was not maintainable against a private institution and that the abrupt withdrawal caused financial loss as the seat could not be filled. The court examined the maintainability issue and, relying on the Supreme Court decision in Zee Telefilms Ltd. v. Union of India and the Allahabad High Court ruling in Roychan Abraham v. State of U.P., held that a private body discharging public functions or bound by statutory guidelines like those of AICTE is amenable to writ jurisdiction under Article 226. On the merits, the undisputed facts showed that the petitioner withdrew admission on 10.06.2016 while the academic session began on 1st August 2016, giving the institution sufficient time to fill the vacancy. The AICTE refund policy, as per the public notice, provided that if withdrawal occurs before the start of the academic session and the seat can be filled before the cut-off date, the entire fee less Rs.1,000 is refundable. The court held that the petitioner’s case fell under this first situation and directed the second respondent to refund the fees after deducting Rs.13,000 (which includes the already refunded Rs.12,000 and an additional Rs.1,000 processing fee) within three months, failing which interest at 6% per annum would apply.
Headnote
A) Constitutional Law - Writ Jurisdiction - Maintainability against Private Body - Constitution of India, Article 226 - The petitioner sought relief against a private management institute; the court held that private bodies discharging public functions or bound by regulatory guidelines are amenable to writ jurisdiction, relying on Zee Telefilms and Roychan Abraham. Held, writ petition is maintainable. (Paras 6-7) B) Education Law - Fee Refund - Withdrawal before Academic Session - All India Council for Technical Education Act, 1987, AICTE Guidelines April 2007 - The petitioner withdrew admission before the start of the academic session; as per AICTE refund policy, the first situation applies, entitling refund of entire fee less Rs.1,000 if seat could be filled before cut-off date. The institution had sufficient time, so refund was directed after deduction of Rs.13,000. (Paras 8-11)
Issue of Consideration
Whether a writ petition under Article 226 is maintainable against a private educational institution; and whether the petitioner is entitled to refund of fees as per AICTE guidelines after withdrawal of admission before the commencement of the academic session.
Final Decision
The writ petition was allowed in part. The High Court held that the writ petition was maintainable against the private institution as it discharges public functions and is bound by AICTE guidelines. The petitioner's withdrawal fell under the first situation of the AICTE refund policy, entitling him to refund of the entire fee less Rs.1,000. The court directed the second respondent to refund the amount paid by the petitioner after deducting Rs.13,000, within three months, failing which interest at 6% per annum would be payable.
Law Points
- writ maintainability against private institutions discharging public functions
- applicability of AICTE guidelines on refund
- refund policy as per AICTE guidelines
- withdrawal before start of academic session entitles refund after deduction of Rs.1000
- interpretation of Article 226
