Kanchipuram Commission Orders Ponnaiyah Ramanujam Medical Institute To Refund Rs 19 Lakhs Of Excess Fee, 6 Lakhs For Wasting Student’s 1 Year And 25k For Mental Agony

Brief Facts:

B Pavan Sai (“Complainant”), a student from Chennai secured a spot at Pronnaiyah Ramajayam Institute of Medical Sciences (“PRIMS”) through government counselling in 2016. However, his educational journey took an unexpected turn when he realized that PRIMS had collected a staggering INR 10 lakh in fees for the first year, far beyond the INR 3.25 lakh annual fee fixed by the Tamil Nadu State Government. Alongside the complainant, many students faced a similar situation, paying hefty fees under the premise of receiving quality education and medical facilities.

The complainant and his batchmates were shocked to discover that PRIMS’s hospital lacked proper infrastructure, doctors, and patients for clinical practice. The situation escalated as PRIMS demanded an additional INR 9 lakh as advance fees for the following year. Ultimately, the Madras High Court intervened, directing the transfer of 150 MBBS students to accredited medical colleges due to PRIMS's severe shortcomings in providing a conducive learning environment. Resultantly, the complainant, along with other students, was transferred to Tagore Medical College and Hospital at Vandalur, Chennai. Subsequently, the complainant’s studies were impacted and his 1 year got wasted due to PRIMS’s illegal actions. Aggrieved, the complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Kanchipuram (“District Commission”) seeking compensation from PRIMS.

The complainant contended that PRIMS had misled students by collecting excessive fees without delivering the promised educational and medical infrastructure. He argued that the absence of proper hospital facilities and clinical training amounted to deficiency in service. He sought compensation for the mental distress and loss of an academic year that resulted from PRIMS's deceptive practices.

PRIMS, on the other hand, argued that educational institutions should not be held accountable for deficiency in service, referring to legal precedents. They maintained that the INR 3.25 lakh fee fixed by the government only covered tuition fees, and the additional fees collected were for other services. PRIMS denied the allegations of inadequate infrastructure and facilities, asserting that the complainant had completed two years of education at their institution, disqualifying him from seeking compensation.

Observations of the Commission:

The District Commission noted that PRIMS had collected fees far in excess of the government-mandated amount from students, despite the students’ legitimate expectation of receiving quality education and medical facilities. It was also clear that PRIMS failed to provide the promised infrastructure, including a functional hospital with medical staff and patients for clinical training. The District Commission recognized that the inadequate provision of educational and medical services amounted to a deficiency in service and an unfair trade practice.

The District Commission concluded that PRIMS, despite being an educational institution, was liable to be held accountable for deficiency in service and unfair trade practices. The District Commission rejected the argument that education was not a commodity, distinguishing the case at hand from previous judgments. It emphasized that PRIMS had collected fees for services it had failed to provide, resulting in a breach of trust and obligations.

The District Commission ordered PRIMS to refund the tuition fees of INR 19,06,050 collected from the complainant. The refund would carry an interest rate of 9% from May 2019 until the date of realization. The District Commission also ordered a compensation of INR 6,00,000 to be paid to the complainant for the academic year lost due to PRIMS's inadequate services. An additional compensation of INR 25,000 was awarded to account for the mental agony and physical distress endured by the complainant. Further, PRIMS was directed to reimburse INR 10,000 to the complainant as the cost of the legal proceedings within two months from the issuance of the order.

Case: B. Pavan Sai vs Ponnaiyah Ramanujam Institute of Medical Sciences (PRIMS)

Case No.: CC/59/2022

Advocate for the Appellant: M/s. T.I. Ramanathan

Advocate for the Respondent: Mr. O.S. Thilak Pasumpadiyar

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