Famous case 
Sehgal School Of Competition, vs Dalbir Singh, on 10 December 2008

1. Admittedly the respondent took admission in the Institute of the appellant for coaching for Medical Entrance Examination, which was for duration of two years. Lump sum fees of Rs. 18,734/- was deposited on 1-5-2005 and the remaining amount of Rs. 18734/- was deposited in two instalments on 7-7-2005 and 7-10-2005, i.e. the entire fee was deposited within six months. However, the respondent-student left midway after a year or so on the ground that after attending coaching he found that it was not up to the mark as he had taken admission for coaching in Medical Entrance Test whereas Institute faculty members were mostly teaching Engineering subjects and giving preference to engineering students. He thought that things would improve but they did not and therefore he preferred not to waste one year more and withdrew from the Institute and asked for refund of the balance fees, which was declined, and consequently he filed the instant complaint before the District Forum for relief.

2. The District Forum vide impugned Order dated 10-10-2008 has only directed the appellant to refund part of fees Rs. 18,734/- without any compensation for mental agony, harassment having been forced to approach the legal forum, i.e. the Consumer Forum for redressal of his grievances as well as cost of litigation.

3. We have already taken a view which has been upheld by the National Commission and the same view was also taken by the Supreme court that no institute or coaching center shall charge lump sum fees for the whole duration or should refund the fees if there is deficiency in service in the quality or coaching etc. or for which period the student does not attend coaching as any clause saying that fees once paid shall not be refunded are unconscionable and unfair and therefore not enforceable. Applying this principle, we do not find any merit in the appeal and dismiss the same, as we apprehend the respondent may even file an appeal seeking higher compensation or damages. However, since there is no such appeal before us, as yet, therefore, we are not passing any such order

4. The appeal is disposed of in aforesaid terms. Payment shall be made within one month from the date of receipt of a copy of this Order.

5. Copy of Order, as per statutory requirement be forwarded to the parties and to the concerned District Forum and thereafter the file be consigned to record.