- A Division Bench of Kerala HC, in the case of Sanju Simon and ors. vs. State of Kerala and ors. has held that collection of fees from medical students for the next academic year while the current one is still going on amounts to profiteering.
- In the instant case, a bunch of petitions were filed before the Court by students of various private medical colleges alleging that the medical colleges were demanding fees for the third year of the course while they were still in their second year.
- By doing the same, the appellants contended that they were collecting fees in advance which was not permissible under law. The respondents, on the other hand, contended that it was the third calendar year since the students’ admission and hence they were entitled to collect the same.
- After hearing the contentions of both the parties, the Court observed that the Covid-19 pandemic had undoubtedly disrupted the lives of everyone around the globe. In its wake, even if the months in the calendar year passed, no education was imparted to the students.
- This led to a situation wherein the petitioners were called upon to remit the fee payable for third year when they were effectively still pursuing their second year. Reliance was placed by the Court on the decision of the Apex Court in the case of Islamic Academy of Education and anr. vs State of Karnataka and ors. wherein it was held that the institutions shall charge fees for only one year in accordance with the rules and not for the entire year.
- The Bench, therefore, noted that educational institutions are wholly unjustified in collecting any amount towards fees for a longer period than the year in question.
- The Court also took note of the fact that fees, as a concept, meant the collection of remuneration for the services already rendered. The Court, in this light, observed that the collection of any fees for the academic year of which educational service has not yet been departed would amount to profiteering as it would be for services not yet rendered.
- Thus, the appeal was allowed and the medical colleges were refrained from collecting fees for any year for which education had not yet been departed.
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