Consumer Commission orders Bombay International School to refund lost fees and pay compensation of ₹60,000 for mental and physical pain

Mumbai: The Mumbai Suburban Annex District Consumer Disputes Redressal Commission has found Educational Enterprise Foundation, operating under Bombay International School (BIS), guilty of unfair trade practices. The case was filed by Chirag Sheth, who registered his daughter Ziya with BIS in August 2021 by paying Rs. Annual fees 6,02,550. However, after getting Zia admitted to a school closer to their residence in Ghatkopar, Sheth decided to withdraw his admission from BIS and sought a refund of the fees paid.

Sheth notified BIS of his intention to withdraw in March 2022, several months ahead of the academic year scheduled to begin in July 2022. Despite prior notice, the school refunded only Rs. 20,000 and withheld the remaining amount citing his own policy. Sheth’s numerous appeals to the school to reconsider and provide a reasonable refund were unsuccessful, prompting her to file a complaint with the consumer commission.

In its unilateral decision, the Commission ordered BIS to refund all the fees paid, as well as the 6% interest rate effective from 2022. BIS was also directed to pay Rs. 50,000 for mental and physical ailments and Rs. 10,000 litigation costs.

In its order, the Commission stated the following: “Based on the analysis and findings, we are of the opinion that the school has no legal right to recover the term fee and entrance fee paid by the applicant, as the admission was canceled before the start of the academic year. Any of the term fees and entrance fees will not be refunded.” “Withdrawal without just cause is an unfair business practice.”

The commission emphasized that the school had approximately four months to fill the vacancy following the withdrawal and noted that there was no evidence to justify the forfeiture of remaining fees. The decision was taken from precedent decisions, including Andhra University v. Janjanam Jagadeesh (2010) and Birla Institute of Technology and Science v. Abhishek Mengi (2013), which held that educational institutions cannot collect fees without providing educational services.