Applying Principle Of Promissory Estoppel, Madhya Pradesh High Court Directs State To Refund College Fees Under Reimbursement Scheme

Applying the principle of promissory estoppel, the Madhya Pradesh High Court recently directed the State Government to reimburse the entire admissible fees to a law student belonging to the OBC category under its Backward Class and Minority Welfare Scheme.

A Division Bench of Justices SA Dharmadhikari and Vishal Mishra upheld the claim of full reimbursement while observing that.

"the principle of estoppel and acquiescence will apply and the State Government cannot stop payment of scholarship/fees to the dis-advantage of the petitioner particularly in the light of the Clause 5.3 and 6.2 of the Policy quoted above."

The State of Madhya Pradesh had promulgated the Backward Class and Minority Welfare Scheme of 2013 for reimbursement of fees paid by students belonging to the OBC category, given that family income eligibility and other criteria are fulfilled. 

Background

The matter arises out of a claim of a student domiciled in Madhya Pradesh, who pursued a BA.LLB (Hons.) from National University of Study and Research in Law, Ranchi (Jharkhand) in 2014-19. The student-petitioner comes from a financially weak background belonging to the Other Backward Class [OBC] category.

Advocate Prashant Singh Kaurav, appearing as party-in-person, claimed that he paid a total non-refundable fee of Rs. 9,83,832/- in his five-year course, including tuition fees, hostel fee, registration fee, enrollment fee, etc. However, against the said fee payment, the petitioner received only Rs. 4,29,602/- from the State Government in benefit of the scheme.

The petitioner made several representations to the concerned State Authority requesting the reimbursement of the outstanding fees, but no relief was granted.

Additional Advocate General MPS Raghuvanshi, appearing for the State-respondent, submitted that the petitioner is not entitled to the sought relief as he pursued his studies outside the State of Madhya Pradesh, in Jharkhand. He further averred the State Government is yet to give their opinion on the said matter, and if the petitioner-student is found eligible, the benefit will be granted.

Seeking dismissal of the petition, he argued that the petitioner is not entitled to any relief as claimed in the present petition.

Findings

On a thorough examination of the State's scheme, the Court noted that the State Government is obliged to reimburse the fees under tuition fees and all other heads. On the argument that the petitioner had pursued his education in a government university situated in another state, the Court noted that as per the scheme, the fees would be reimbursed irrespective of that.

The Court confirmed the applicability of Piru Dhakad v. The State of Madhya Pradesh (2015), where students of NLIU, Bhopal had sought a similar relief. The Court had directed as follows:

"Such of the students who have already paid the Tuition Fee and have passed out from the University after conclusion of the course may submit a representation to the competent authority of the State Government, with proof of payment of the Tuition Fee and on the same being done, the entire Tuition Fee paid by them shall be refunded by the State Government within a period of 60 days of submission of the representation, as per the direction issued in Clause (a) and (b) of this order, as may be applicable to a particular student."

The Court observed that the grant of scholarship or refund of fees is a matter of policy based on the government's decision in a benevolent scheme to be implemented strictly following the scheme. It also noted that the petitioner had deposited the entire amount of fees and other expenses; the State Government is bound to refund the same as per the terms and conditions of the said policy.

"Once a student seeks admission in a particular course based on the scheme, he is influenced by the promise given by the State Government for refund of his Tuition Fee and he takes admission under a bonafide belief that for the entire course his Tuition Fee shall be refunded. Once the State Government gives a promise to a student at the time of his admission, the State Government has to fulfill the promise and grant refund of the Tuition Fee for the entire duration of course as originally promised at the time of admission," the Court said relying on Prakhar Gupta and another v. State of Madhya Pradesh & Anr (2019).

[Note: In compliance with the above order, the State Government has reimbursed the entire fees to the Petitioner.]

Case Title: Prashant Singh Kaurav v. State of Madhya Pradesh 

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