Coaching Institute Liable For Deficiency In Service For Failing To Issue Proper Fee Receipts: Thrissur Consumer Commission

Brief Facts

The complainant, Praneesh, a B.Tech graduate, enrolled in a “GRE Course” conducted by IMS Learning Resources Pvt. Ltd., Thrissur, after paying ₹18,500 on 14.06.2017. He later upgraded to a “GRE Admit Guarantee” course by paying an additional ₹17,000 and subsequently joined an IELTS coaching programme by paying another ₹7,000, taking the total payment to ₹42,500.

The complainant alleged that despite collecting the fees, the institute failed to commence classes on time and did not issue proper receipts for all the payments received. After developing doubts regarding the genuineness of the institute's operations, the complainant sought a refund of the amount paid. However, the institute allegedly refused both the refund request and his request to transfer the enrolment to a friend or relative after he moved abroad.

Aggrieved by the alleged non-issuance of proper receipts and denial of refund, the complainant approached the Consumer Commission alleging deficiency in service.

The institute contended that the complainant had attended the classes and voluntarily discontinued the course after leaving for Saudi Arabia. It further argued that the fees paid were non-refundable under company policy.

Observations and Decision

The Commission observed that the coaching institute had admittedly received ₹42,500 from the complainant towards GRE and IELTS coaching programmes. However, while the institute issued a receipt for ₹35,900, it failed to produce any receipt for the remaining ₹7,000 collected towards IELTS coaching. The Commission held that issuance of proper and verifiable receipts is a fundamental obligation of a service provider and failure to do so amounts to deficiency in service.

At the same time, the Commission found that the complainant had failed to produce sufficient evidence to establish that the institute did not conduct the promised classes. Consequently, the allegation regarding failure to provide coaching services was rejected.

Partly allowing the complaint, the Commission directed the institute to pay ₹15,000 as compensation for the agony and hardship caused to the complainant and ₹5,000 towards litigation costs, with 9% annual interest from the date of filing of the complaint till realization. The Commission directed compliance within 30 days.

Case No.: CC 843/17

Case Title: Praneesh v. IMS Learning Resources Pvt. Ltd.

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