Coaching institute ordered to pay Rs 20,000 to student after failing to issue proper fee receipts

NEW DELHI: A district consumer court in Kerala has held a coaching institute liable after it failed to issue proper and timely receipts for the full amount collected from the student for the coaching programs, as per a report by LiveLaw.The complaint was filed by a student who had enrolled for GRE and IELTS coaching at a coaching institute named IMS Learning Resources. The student claimed that he paid a total of Rs 42,500 for different courses, but in the receipt issued, the amount was Rs 35,900, while no receipt was issued for the remaining Rs 7,000According to the complaint, the student initially paid Rs 18,500 for a GRE course, later a Rs 17,000 payment was made for an "Admit Guarantee" course after the GRE classes failed to commence, and also paid Rs 7,000 for IELTS coaching, but received a receipt for only Rs 35,900, with no receipt issued for the remaining Rs 7,000.Aggrieved, the student approached the consumer commission seeking a refund, alleging a lack of transparency in the institute's fee handling and claiming that classes had started late and that the coaching provided did not match the fees charged.The institute argued that the student had attended all the classes and that fees were non-refundable under the company policy. It also disputed the grounds for the complaint, claiming it was merely a franchisee of IMS Learning Resources, Mumbai — an argument the commission rejected for lack of supporting evidence, holding that "it is a matter beyond doubt that the complainant is a consumer of the opposite party."

What did the commission observed?The consumer commission observed that issuing proper receipts for money received from consumers is a basic responsibility of a service provider.It held that "the issuance of such receipts is not a mere formality, but a fundamental obligation that ensures transparency, accountability, and protection of the consumers' rights," and further found that "the institute's conduct in failing to issue a valid receipt for the said amount of Rs 7,000 amounts to a clear deficiency in service on its part."However, the commission rejected the student's allegation that the classes themselves were not properly provided, observing that "the complainant has not adduced any cogent evidence to prove that the opposite party had not provided him the classes they promised." It therefore upheld only the receipt-related deficiency.Partly allowing the complaint, the court directed the coaching institute to pay Rs 15,000 as compensation for mental agony and inconvenience, along with Rs 5,000 towards litigation costs. The amounts were also ordered to carry 9 per cent annual interest from the date of filing until payment.