Order-27.
Date-23/06/2016.
This case relates to an application u/s.12 of the C.P. Act, 1986.
Complainant’s case, in short, is that he is a law abiding citizen. OPs 2 and 3 are running Eastern Institute for Integrated Learning in Management (EIILM) claiming to be an institute, awarding MBA Degree from UGC University charging huge fees for such courses and promising rosy future like lucrative placement opportunities to the students. The complainant came to know through brochures and pamphlets distributed by the said institute at various places about such institute and registered his name with the said institute on 05-11-2011 by making cash payment of Rs.10,000/- for the batch of 2012-13 in the said institute for obtaining MBA Degree with assurance of good placement opportunities. The complainant attended the campus of EIILM towards the end of October, 2011, participated in the Group discussion and personal interview. OPs assured the complainant there that she would be awarded a proper MBA Degree from the EIILM University of Sikkim and also that the complainant would get good placement as the institute has good tie up with various corporate house. Complainant was given to understand by the OPs that degree in MBA shall be awarded from UGC recognized university. The complainant relying upon such a representation, enrolled her name for persuading MBA Degree at EIILM at 6, Waterloo Street, 2nd floor, Kolkata – 69. The complainant was a sincere student and took all four semester examinations and completed the MBA Programme. At the time of admission the complainant was informed that she would regularly receive a MBA Degree along with post graduate certificate in Management. The complainant made instalment payments of the course fees by cheques on different dated amounting to Rs.4,05,000/-. The complainant successfully completed all four semester examination and received the post graduate certificate but not the MBA Degree as promised her by the OP. In or around December, 2013 complainant came to learn that the degree of all students will not be furnished by EIILM University as result of the pending matter in Sikkim High Court. Thereafter, the complainant along with other students held a meeting with the Dean of the college at the college campus. At the meeting all the students were informed that due to pending case at Hon’ble High Court at Sikkim, EIILM University will not provide MBA Deree and all students were required to register with Vidyasagar University for the same and such degree from the Vidyasagar University will be Distance Learning and not regular degree and they will be required to sit for all the examinations again for a period for another two years. The complainant alleges that she has lost two years of her student life due to false and fabulous representation made by the OPs in collusion with each other. The complainant has not received her MBA degree even after lapse of months. The complainant alleges that the OPs had no right to take any MBA courses and there was clear misrepresentation on the part of the OPs and they have deceived and cheated the complainant into paying Rs.4,05,000/- to the OPs. The OPs are guilty of deficiency in rendering services and have resorted to unfair trade practices. The complainant has prayed for appropriate reliefs in terms of the prayers in the petition of complaint.
OPs, on the other hand, have contested the case in filing a written version contending inter alia that the complaint filed by the complainant is an abuse of the process of law. It is stated that as the OP is an educational institute the complaint is not maintainable in law. It is alleged that the students who appear for education cannot be regarded as persons who hire or avail the services of University or appears for consideration and further submit that the Hon’ble Supreme Court of India also came to the conclusion that the students are not consumers of any institute. It is stated that the OP was a knowledge hub of EIILM University of Sikkim. The OPs herein and EIILM University are separate entities. The complainant was admitted in the university through the OPs. The OPs conducted the class, set the question papers, held examinations and examined the answer scripts and, thereafter, OP used to send the marks to the said University on the basis of which University would prepare marks cards and/or issue degree certificates and mark sheets. It is stated that the EIILM University and its officials are absolutely separate from the OPs and they had been implicated in a criminal case initiated by Jorethang, P.S. Sikkim and the students including the complainant were informed in the class about the uncertainty about the said disposal of criminal case. These OPs also expressed their inabilities to provide the degrees at the time of admission. It is also stated that as there was legal obligations in providing degrees from EIILM university, Sikkim, it is suggested to all the students including the complainant that those students who are willing to avail of the opportunity of being enrolled in Vidyasagar University which is a Government University can take admission. Thereafter, a large number of students have been admitted in the Vidyasagar University there at the cost and expenses of the OPs. But complainant refrained herself from going there. EIILM University was beyond the control of the OPs. It is also stated that a large number of students of her batch got placement after availing of the opportunity given by the OPs and are now working in reputed organizations. It is denied that any forgery has been made by the OPs. It is denied that there was any false representation or publication, on their side.
It is stated that the OPs had all along acted within the scope of law and for the betterment of the students. The OPs have prayed for dismissal of the case.
Points for Decision
- Whether the OPs deceived the complainant that she would receive a regular decree of MBA along with a certificate of Post Graduate in Management?
- Whether OPs duped the complainant with false and fraudulent assurance that she would receive MBA Decree under UGC recognized regular MBA course?
- Whether the OPs cheated the complainant to part with an amount of Rs.4,05,000/- preparing forged and fabricated documents relating to the UGC recognized regular MBA Course?
- Whether OPs practiced unfair trade in the process of admission in MBA Course?
- Whether the complainant is entitled to get the relief as prayed for?
Decision with Reasons
All the points as above taken up together for the sake of brevity and convenience of discussion as the points are interlinked and have closed bearing upon one another.
We have glossed over the document filed from the respective parties including the decisions of Hon’ble National Commission as well as Hon’ble High Court of Sikkim, Gangtok and Hon’ble Appex Court as cited from the respective sides. The issue on the anvil is that whether EIILM Kolkata is recognized under UGC? To put it otherwise, whether MBA course being run by the OPs is UGC recognized. From the documents on record we find that EIILM Kolkata had no authority to award an MBA degree. In the brochure of EIILM dated 04-11-2011 addressed to Sujata Jaiswal, complainant, it is stated she has been selected for admission in the programme MBA from UGC recognized university. But we are afraid to say that actually it is not so. In the judgment passed by his lordship the Hon’ble Justice S.P. Wangdi, Hon’ble High Court of Sikkim at Gangtok in Criminal Misc. Case No.12 of 2013 dated 04-06-2013 observed that .this University was granted provision by joint committee of UGC – AICTE – DEC for conducting only three distant courses namely BA (Hospitality and tourism), BCA and MBA and that to only for the academic year 2009 and 2010.. We find that the complainant took admission with the OPs for the batch of 2012-13, in the said institution with the hope that the degree in MBA shall be awarded to her from the said institution being UGC recognized university. The Hon’ble Supreme Court of India in Buddhist Mission Dental College and Hospital vs. Bhupesh Khurana and others in 2009 – AIR SCW 2139 held were the institute was neither recognized nor affiliated, it could not have started admission. The Hon’ble Apex Court also held misrepresentation and misleading advertisement amounts to deficiency in service and unfair trade practice.
On perusal and appreciation of different laws including the verdict of Supreme Court in judgment of Buddhist Mission Dental College and Hospital vs. Bhupesh Khurana and others we are inclined to say where educational institutes which are neither affiliated or recognized, impart education indulges in deficiency of service in the form of misrepresentation and it falls definitely within the purview of deficiency in service as defined in C.P. Act. Moreover, we also find from a letter being No.F 4-2/2015 (CPP-IPU) dated 26-10-2015 addressed to the complainant in response to her application under Rights to Information Act, 2005. It is clearly stated by the UGC, New Delhi, therein that EIILM University is not approved by the UGC (University Grants Commission), New Delhi.
From the said letter on record we find that the recognition accorded to the said University was only for one academic year 2009-10 which has also expired and no further recognition has been accorded to the said University, and that EIILM Kolkata was never given recognition for any programme for any distant education. So, we find that OPs are running EIILM Kolkata claiming to be an Educational Institute awarding an MBA degree from EIILM University, Sikkim and has been charging huge fund for such courses duping them with promise like lucrative placement opportunities quite illegally. It is also informed in the said UGC reply that there is no provision at the erstwhile DEC or presently UGC to accord recognition to study centres of any university outside the State where it is located. The OPs have also distributed brochure and pamphlets to that effect. The complainant took admission on 05-11-2011 for the batch of 2012-2013 in the said institution for obtaining MBA Degree with an assurance of good placement opportunities. Relying upon the misrepresentation to be true she persuaded MBA degree at EIILM Kolkata. Ultimately, she came to know that EIILM University Unit was unable to bestow the MBA Degree and she along with others were required to be registered with Vidyasagar University for the same and degrees from Vidyasagar University will be Distance Learning and not a Regular Degree and she will be required to receive all the examinations again for a period of another two years. We think that the complainant was deceived and cheated by the OPs. We find that valuable two years of her life has been wasted due to false and fraudulent representation made by the OPs.
It is pertinent to mention that EIILM had no opportunity to award an MBA Degree. The OPs have falsely and fraudulently assured the complainant and published documents relating to purported UGC recognized regular MBA course and have duped the complainant. Such publication as we find appears to be false and misleading and has been made to deceive and cheat the innocent students. We cannot say that OP is an educational institute. The OPs appear to be money makers in the name of educatin and presumably part of a greater racket. It is true that education is not a commodity but the OPs have deceived and cheated the complainant in the name of education. It is also pertinent to mention that latest brochure of the college in the year 2013-2014 indicates the name of the complainant that the said MBA degree has been obtained by her and, in fact, she has not received any such MBA degree. We think that said publication is false, misleading and has been made the institute to deceive and cheat other students, as well we are constrained to hold that the OPs have taken recourse to unfair trade in the name of education.
Hence, we think that OPs are liable to pay to refund fees with interest and compensation too, apart from damages.
Books referred to by the parties .-
On behalf of Complainant
Judgement passed by His Lordship the Hon’ble Justice S.P. Wangdi, Hon’ble High Court at Gangtok in Criminal Misc. Case No.12 of 2013 Dated 04-06-2013, 2009 AIR SCW 2139, Judgement of Hon’ble High Court of Delhi in Dr. Alexander Educational Foundation vs. Union of India and others (W.P.(C) 2455/1993).
On behalf of OPs.
Judgement passed by Hon’ble Justice Dr. B.S. Chauham in Maharshi Dayanand University vs. Surjit Kaur 2010(II) SCC 159.
Hence,
Ordered
That the instant case be and the same is allowed on contest against the OPs with cost of Rs.10,000/- each.
OPs are jointly and severally directed to refund the entire amount of Rs.4,05,000/- along with interest at the rate of9 percent p.a. thereon to the complainant from the date of filing of this petition of complaint, within 30 days from the date of passing this order..
The OPs are also to pay punitive damages of Rs.1,00,000/- for adopting unfair trade practice and for harassment to the complainant within the said stipulated period. In the event of non-compliance of the order as above within the stipulated time, the complainant will be at liberty to put this order into execution as mandated u/s.25 read with Section 27 of the C.P. Act, and in that event the OPs will be liable to pay penalty at the rate of100/- per diem till full and final payment.
