1.      This is an admitted fact that the petitioner/opposite party, Mehrishi Arvind Institute of Technology, Madhyam Marg, Mansarovar, Jaipur took fee from the respondent-Deepesh Kumar Avasthi for one year.  Mr. Deepesh Kumar Avasthi attended the class for one month.  Thereafter, he applied somewhere and was selected in another institution.  He desired that his fees of remaining 11 months should be returned.  Both the fora below have passed the order in favour of the complainant, Deepesh Kumar Avasthi.

2.      We have head learned counsel for the petitioner.

3.      Learned counsel for the petitioner admitted that no advance fees for the remaining years was obtained from the complainant.  The fees was taken for one year only.  Under the circumstances, the petitioner/institution can retain the fees of 11 months. 

4.      Learned counsel for the respondent submits that seat which fell vacant due to absence of Shri Deepesh Kumar Avasthi, was fulfilled.  However, there is no such evidence.

5.      The petitioner is not bound to return the fees as was held by the Supreme court in Islamic Academy of Education and another vs. State of Karnataka and Ors. 2003(6) SCC 697, by a majority judgment given by Hon’ble Mr. Justice V. N. Khare, C.J., and S. N. Variaqva, K. G. Balakrishnan, Arijit Pasayat and S.B. Sinha, JJ.  The relevant portion runs as follows:-

“It has been noticed that some educational institutions are collecting, in advance, the fees for the entire course i.e. for all the years because the institute was not sure whether the student would leave the institute midstream and due to seat lying vacant the institute would suffer.  This is not proper.  An educational institution can only charge prescribed fees for one semester/year.  If an institution feels that any particular student may leave in midstream then, at the highest, it may require that student to give a bond/bank guarantee that the balance fees for the whole course would be received by the institute even if the student left in midstream.  If any educational institution has collected fees in advance, only the fees of that semester/year can be used by the institution.  The balance fees must be kept invested in fixed deposits in a nationalized bank.  As and when fees fall due for a semester/year only the fees falling due for that semester/year can be withdrawn by the institution.  The rest must continue to remain deposited till such time that they fall due.  At the end of the course the interest earned on these deposits must be paid to the student from whom the fees were collected in advance.”

6.      Consequently, the revision petition is accepted.  The orders passed by the fora below are set aside.  Money be returned by the consumer fora to the petitioner.