This Revision Petition has been filed by The Registrar, Manonmaniam Sundaranar University (hereinafter referred to as “the Petitioner University”),  under Section 21 (b) of the Consumer Protection Act, 1986 (hereinafter referred to as “the Act”) challenging the Order dated 03.12.2018, passed  by the Rajasthan State Consumer Disputes Redressal Commission, Jaipur (herein after referred to as “the State Commission”), whereby the Appeal preferred by the Petitioner herein was dismissed with a Cost of Rs.30,000/- and the order passed by the District Consumer Disputes Redressal Forum Kolkata Unit-II (Central) (hereinafter referred to as “the District Forum”), was upheld.

2.       The facts giving rise to the present Revision Petition are that the Complainant/ Respondent No.1 was pursuing MBA in Marketing from the Petitioner University and it is alleged that she completed  the course in December, 2012 and she has not been conferred with the certificates regarding the same. Therefore, alleging deficiency in service on the Part of the Opposite Parties,  the Complainant approached the District Forum by filing a Complaint seeking direction to the Opposite Parties for issuing mark sheets and provisional certificate together with Compensation and litigation cost.

3.       As the Opposite Parties neither appear before the District Forum nor filed any reply, based on the material on record, the District Forum allowed the Complaint ex parte and directed the Opposite Parties to issue the mark sheets and provisional certificate within 30 days from the date of Order. The Opposite Parties were further directed to pay a sum of Rs.70,000/- towards harassment and mental agony together with litigation cost of Rs.10,000/-.

4.       Feeling aggrieved by the said Order, the Petitioner University challenged the Order passed by the District Forum by filing Appeal before the State Commission on the ground that the Complainant did not clear a paper and she has not submitted her project work as also the two assignments and therefore the certificate was not issued. The State Commission while, dismissing the Appeal imposed a cost of Rs.30,000/- and  observed  as hereunder:

“Decision with reasons

Ld. Advocate for the OP No. 1 alleged that the Complainant did not clear a paper, namely, DRC-25; she had not submitted her project work and two assignments.  Therefore, appropriate market sheet was sent to Complainant’s Ld. Advocate through email.  The Ld. Advocate also disputed maintainability of the case on the ground that ‘education’ related matter does not fall within the ambit of the Consumer Protection Act.

Ld. Advocate for the OP No. 2, on the other hand, submitted that it only provided counselling and documents, as and when it received the same from the OP No. 3.  She claimed that, being the franchise of the OP No. 3, it cannot be held liable for non-receipt of certificate and/or mark-sheet, as alleged.

We have heard the Ld. Advocate for the Complainant also in the matter.

The bone of contention of the complaint case, as it transpires, revolves around non-receipt of Certificate/mark sheet being purportedly issued by the OP No. 1.  Such being the nature of allegation, which has got nothing to do with evaluation of answer scripts, declaration of sult or issuance of certificate, manifestly, the referred citations have no bearing in this case. 

Another crucial aspect bears mentioning here is the fact that the UGC vide its Regulations dated 25-11-1985 laid down the minimum standards of instructions of the grant of the first degree through non-formal/distance education.  With regard to Private Universities, the UGC laid down the UGC (Establishment of and maintenance of standards of Private Universities) Regulations, 2003.  These Regulations, inter alia, laid down that a Private University established under State Act shall operate ordinarily within the boundary of State concerned. 

In its celebrity judgment, the Hon’ble Apex Court in the matter of Prof. Yashpal&Anr. V. State of Chattisgarh & Ors (2005) specifically considered the issue of extra territorial operation of State enactment in the form of establishment of Off campus centres, Off-shore campus and study centres and ultimately, in the light of the constitutional mandate as contained in Article 245 (1) of the Constitution, laid that ‘Parliament alone is competent in making laws in the whole or any part of the Territory of India and the legislative of State making laws for the whole or any part of State’. 

The effect and meaning of the judgment of the Hon’ble Apex Court in the Yashpal case is that each University in the country must have its own territorial jurisdiction and the State University established under the State Act cannot go beyond the territorial jurisdiction of the State concerned to grant affiliation to any institution. 

Subsequently, the UGC vide its letter dated 16-04-2009 informed all the State Governments to take suitable steps for amending the existing State Acts so as to bring the same in conformity with the observations made by the Hon’ble Apex Court in the afore-mentioned case and with the request to the State Governments to stop all State/State-Private Universities from operating beyond the Territorial Jurisdiction of the State in any manner, either in the form of Off Campus/Study Centre/affiliated College and Centres operating through franchises. 

Seen against this backdrop, it is clearly evident that running said distant learning course by the OP No. 1 through other OPs was totally illegal. Thus, we find that the OPs indulged in unfair trade practice by running the said distant learning course which clearly comes within the realm of consumer dispute. 

Accordingly, allowing the complaint case, to our mind, was fully justified and so, we refrain from interfering with the same in any manner whatsoever.

The Appeals, accordingly, fail.”

5.       Dissatisfied, by the Order passed by the State Commission, the Petitioner University has approached this Commission on the ground that the Petitioner University is imparting education and the institutions imparting education does not fall within the ambit of the consumer Protection Act and therefore the Complaint is not maintainable.

6.       Heard the learned Counsel appearing for the Parties and perused the material on record. 

7.       I find that a Preliminary Issue arises in this Revision Petition is as to whether the Educational Institutions like the Petitioner University, which is imparting Education to the students will fall under the provisions of the Consumer Protection Act, 1986 or not.

8.       It may be mentioned here that this Issue has been considered and decided by a Larger Bench of three Members of this Commission in the case of Manu Solanki and Others Vs. Vinayak Mission University and other connected cases, 1(2020) CPJ, 210 (NC), decided on 20.01.2020, wherein the larger Bench had held that Educational matters do not come within the purview of the Consumer Protection Act, 1986 and therefore the Complaint is not maintainable. Relevant portion of the Order is reproduced below for ready reference :-

“37.    The following legal issues arise from the submissions made by the rival parties and the  aforenoted decisions of the Hon’ble Supreme Court:

• Would any defects/ deficiency/ unfair trade practice indulged by the Educational Institutions post admission, which does not fall within the ‘course of imparting knowledge’ till the degree is conferred, falls within the ambit of the definition of Education?
• If we apply the definition of Education, imparting knowledge for full potential, will that criterion apply to the admission stage, when the foundation for admission itself is deficient?
• Would preferential activities for extracurricular activities, which do not have a direct nexus with admission fees, syllabus etc. be defined as Core Education? For Example if students go for a picnic and a mishap happens, does it fall within the definition of deficiency of service and is it part of Core Education? Do educational tours fall within the ambit of the definition of ‘Education’.
• Another example, if a school has a swimming pool and students of that institution drown on account of some deficiency or negligence of the authorities, would swimming in the school campus fall within the ambit of Core Education? Does maintaining a swimming pool and teaching swimming be considered as a part of Core Education?
• Does defect/ deficiency in service of any boarding/ hostel facilities rendered fall within the umbrella of ‘Education’?
• Do coaching centers/ institutions fall within the ambit of the Definitionof ‘Educational Institutions’.
• Do institutions involved in vocational training like, nursing, designing etc. strictly fall within the definition of ‘Educational Institutions’.

38.     Learned Counsel appearing for the Petitioners in Revision Petition Nos. 2955 to 2963 of 2018 submitted that once the University is declared as ‘Deemed University’ all functions and activities governed by the University Grants Commission Act (UGC Act), fall within the definition of ‘Authority’ within the meaning of Article 12 of the Constitution and would be amenable only to the jurisdiction of the High Court. It is contended that even if the Education Institutions  do  not  have  a  proper  affiliation, Consumer  Fora do not  have jurisdiction to entertain the same. In our view even if an Institution imparting education does not have a proper affiliation in imparting education, it is not rendering any service and, therefore, will be out of the purview of the Consumer Protection Act, 1986.

39.     Learned Counsel appearing for the Petitioner in Revision Petition No. 222 of 2015 vehemently contended that the Complainant had taken admission in B. Ed. course of the Opposite Party on the assurance that the said college  was recognized  by National Council of Technical Education (NCTE) and affiliated with the Opposite Party No. 2, Uttrakhand Technical University, who subsequently came to know that the Institute was not recognized by NCTE and therefore sought for refund of the fees. Whether such an unfair trade practice post admission would fall within the ambit of the Act needs to be seen. As the Institution is imparting education though it has been not recognized by the National Council of Technical Education, it would not make any difference because it will be covered under the education. Thus, the said Institute would not be rendering any service as defined in the provisions of the Consumer Protection Act, 1986.

40.     There may be instances where there may be defect/deficiency of service in pre-admission stages by an educational Institution but as the educational Institutions are not rendering any service by imparting education, these instances will also not give any right for a person to approach the Consumer Fora under the provisions of the Consumer Protection Act, 1986.

41.     Learned Counsel for the Educational Institution in Revision Petition No.  1731 to 1733 of 2017 argued that imparting education in a school is not limited to teaching in a class room and involves within its ambit other co-curricular activities including taking out the students for educational trips etc., for their overall growth and development and improvement of their faculties.  In that matter, the children were taken by the Respondents for an “educational excursion trip” to a place of historical importance, and it was contended that, any shortcoming or negligence during the course of such an act falls within the definition of imparting education and therefore shall not fall within the domain of the Consumer Protection Act. 1986. Another issue which was raised is with respect to any defect or deficiency which may arise on account of a student drowning in a swimming pool maintained by the Educational Institution. We are of the considered opinion that such incidental activities of an Educational Institution while imparting education would also not amount to rendering any service under the provisions of the Consumer Protection Act, 1986.

42.     Another relevant issue which was raised during the course of arguments was with respect to any defect or deficiency in the transportation which is provided by the schools/colleges.  School buses are vehicles hired by the Institutions and in most schools is made compulsory with, the prescribed fees including the cost of transportation.  Children come in their own vehicles also and we are of the view that any defect or deficiency in transporting the children to the school does fall within the definition of ‘imparting knowledge’ and, therefore, the Consumer Fora has no jurisdiction to entertain such Complaints arising out of these issues. 

43.     Now we address ourselves to the submissions made by the Learned Counsels in Revision Petition No. 462 of 2013 with respect to Coaching Institutions. The question which arises here is whether the Coaching Institutions fall within the definition of “Educational Institution”.  Learned Counsel appearing for the Coaching Centres vehemently contended that though the Coaching Centres are not conventional Educational Institutions, since they are providing Coaching and training to students of an Educational nature same principles that apply to the Educational Institutions would also apply to these Institutions and that this view had been taken by this Commission in Fitjee Limited Vs. Minathi Rath I (2012) CPJ 194 NC.  In this case it has been held that Complainants were consumers who sought to avail services for consideration and that Fitjee is the provider of the services and that they are Consumer Disputes.  The issue that has been raised is that if the Coaching Centres were treated at par, as observed in this order, to be providing Coaching and training, to students of an Educational nature, then they too fall within the definition of ‘Education’ and, therefore, the services rendered by Coaching Centres cannot be construed to be ‘Service’ as defined under Section 2(1)(o) of the Act.

44.     Learned Counsel appearing for the Complainants submitted that there is no Regulatory Mechanism applicable to the Coaching Institutes.  He contended that Coaching Centres are promoting rote learning and not imparting actual knowledge.  He vehemently contended  that they are running for a  commercial purpose with a single aim of making profit and are expanding using the franchise route. 

45.     We are of the considered view that conduction of Coaching Classes does not fall within the ambit of definition of ‘Education’ as defined by the Hon’ble Seven Judge Bench of the Supreme Court in P.A. Inamdar (Supra).    Coaching Centres cannot be equated to regular schools or colleges which are regulated by a Regulatory Authority and also confer a Degree/Diploma on the student who has passed in the examinations conducted as per the Rules and norms specified in the statute and also by the concerned Universities.  Therefore, strictly speaking Coaching Centres cannot fall within the definition of ‘Educational Institutions’.  We refrain from making any comments on the submissions of the learned Counsel for the Complainants with respect of Coaching Institutions indulging only in ‘rote learning’.

46.     For all the afore-noted reasons, we are of the opinion that any defect or deficiency or unfair trade practice pertaining to a service provider like ‘Coaching Centres’ does fall within the jurisdiction of the Consumer Fora.

47.     Learned Counsel appearing for the Petitioner in Revision Petition Nos. 3383 and 3384 of 2018 submitted that student, who took admission in Multimedia Diploma and Certificate Courses in 3D Animation, Visual Effects, Video, Editing, Graphic Designing and Web Designing, though fall within the definition of Vocational training, the programs are recognized by Karnataka State Open University and withdrawal of any such program cannot fall within the jurisdiction of the Consumer Fora.

48.     At the outset, a broad definition of all that comprises ‘Vocational Courses’ needs to be seen. Generally speaking, there is a three tier system in HR Vocational Training program in India, which involve Certification level for 10+2 students, Diploma level Graduation program and Post-Graduation programs. For example vocational program include courses in areas of agriculture, automobiles, information technology, air conditioning, lab technician, live stock management, films and television, tourism etc. The Hon’ble Supreme Court in State of Punjab & Ors. Vs. Senior Vocational Staff Masters Association & Ors., 2017 (9) SCC 379, in para 22 observed that Vocational Courses are those Courses in which teaching              is not on regular basis, though they play an important role in the grooming of  students in the different fields. Vocational education can also be termed as job oriented education and trains young people for various jobs and helps them acquire specialize skills.

49.     The Union Cabinet has approved a merger of the existing  Regulatory Institutions in the skills space —  National Council for Vocational Training (NCVT) and the National Skill Development Agency (NSDA) into the National Council for Vocational Education and Training (NCVET).

50.     The main purpose and objective of NCVET is to recognize and regulate and assess the skill related service regulators. It is clarified that even if there is any defect/deficiency/unfair trade practice in the services offered by private bodies in offering these courses and are not regulated and do not confer any Degree or Diploma recognized by any Approved Authority do fall within the ambit of definition of ‘Educational Institutions’ and hence the Consumer Fora have no jurisdiction to entertain the same.

51.     In view of the foregoing discussion, we are of the considered opinion that the Institutions rendering Education including Vocational courses and activities undertaken during the process of pre-admission as well as post-admission and also imparting excursion tours, picnics, extra co-curricular activities, swimming, sport, etc. except Coaching Institutions, will, therefore, not be covered under the provisions of the Consumer Protection Act, 1986. “

9.       From the averments made in the Complaint filed by the Complainant/ Respondent No.1 and the Orders passed by both the Foras below, I find that Manonmaniam Sundaranar University (Petitioner herein) is imparting Education to the students and the Complainant/ Respondent No.1 took admission in MBA in Marketing of the Petitioner University.  Therefore, the law laid down by the Larger Bench of this Commission in the case of Manu Solanki (Supra), is fully applicable and the Petitioner University do not fall within the purview of the Act as it is not rendering any service.

10.     In view of the foregoing discussions, Revision Petition No. 554 of 2019 succeeds and is allowed. Consequently, the Complaint filed by the Complainant/Respondent no.1 herein stands dismissed as not maintainable and the orders passed by the Foras below cannot be sustained and are hereby set aside. However, liberty is given to the Complainant/Respondent No.1 to take recourse to such remedy as is available under law. 

11.     However, it will be open to the Complainant/Respondent to seek such remedies which are available to her in accordance with law.