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Gujarat High Court

Mulani Akash Jaysukhbhai & 26 vs Union Of India & 22....Opponent(S) on 18 March, 2016

Author: R. Subhash Reddy

Bench: R.Subhash Reddy, J.B.Pardiwala

                   C/MCA/2960/2015                                              ORDER




                   IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

              MISC. CIVIL APPLICATION (FOR DIRECTION) NO. 2960 of 2015

                    In SPECIAL CIVIL APPLICATION NO. 16600 of 2010

                                              With
                         MISC. CIVIL APPLICATION NO. 2961 of 2015
                                                In
                       SPECIAL CIVIL APPLICATION NO. 715 of 2011


                                              With
                         MISC. CIVIL APPLICATION NO. 2962 of 2015
                                                In
                      SPECIAL CIVIL APPLICATION NO. 3518 of 2011
         ==========================================================

MULANI AKASH JAYSUKHBHAI & 26....Applicant(s) Versus UNION OF INDIA & 22....Opponent(s) ========================================================== Appearance:

MR TULSHI R SAVANI, ADVOCATE for the Applicant(s) No. 1 - 27 MR DM DEVNANI, ASSISTANT GOVERNMENT PLEADER for the Opponent(s) No. 2 - 4 MR MITUL K SHELAT, ADVOCATE for the Opponent(s) No. 8 MS MANISHA LAVKUMAR, ADVOCATE for the Opponent(s) No. 9 NOTICE NOT RECD BACK for the Opponent(s) No. 5 NOTICE SERVED for the Opponent(s) No. 6 - 7 , 10 - 11 , 15 - 23 NOTICE UNSERVED for the Opponent(s) No. 13 UNSERVED-EXPIRED (N) for the Opponent(s) No. 12 , 14 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. R.SUBHASH REDDY and HONOURABLE MR.JUSTICE J.B.PARDIWALA Date : 18/03/2016 ORAL COMMON ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) Page 1 of 7 HC-NIC Page 1 of 7 Created On Wed Mar 23 01:34:32 IST 2016 C/MCA/2960/2015 ORDER 1 Since the issue raised in all the captioned applications is more or  less the same, those were heard analogously and are being disposed of  by this common order.
2 The applicants before us are the original petitioners of a public  interest petition being Special Civil Application No.16600 of 2010. 
3 The main petition in the public interest was filed by the applicants  who,   at  the   relevant  point  of   time,  were   all   students   studying   in   the  second year of M.B.B.S. Degree course at the opponent No.8's college,  namely, K.M. Mehta General Hospital and College of Medical Science,  Bhavnagar. The public interest litigation was disposed of by this Court  issuing various directions. One of those directions read as under: 
"(8) Respondent no.8 - College is directed to refund the fees if paid by each   of the students of 2nd M.B.B.S. course to the tune of Rs.1,37,000=00 with   8% interest,  to the petitioners­students  within a period of three months   from today. The College is also directed to refund the N.R.I. fees if paid by   any of the N.R.I. students, as per the statement made at the Bar by learned   senior counsel appearing for respondent no.8 - College."

4 The case of the applicants is that the college has failed to comply  with the direction referred to above fully. According to the applicants,  substantial amount of more than Rs.40,000/­ (Rupees Forty Thousand  only) has been deducted from the amount of Rs.1,37,500/­ (Rupees One  Lac Thirty Thousand Five Hundred only) while refunding the fees. 

5 Notice   was   issued   to   the   respondents.   The   respondent   No.8   -  college has appeared. Mr. Mitul Shelat, the learned advocate appearing  Page 2 of 7 HC-NIC Page 2 of 7 Created On Wed Mar 23 01:34:32 IST 2016 C/MCA/2960/2015 ORDER for the respondent No.8 has filed an affidavit­in­reply inter alia stating as  under:

"2a) I state that the Answering Respondent is established and managed   by   "K.J.   Mehta   TB   Hospital   Trust".   K.J.   Mehta   TB   Hospital   Trust   is  established   as   a   Society   under   the   Society   Registration   Act,   and   upon   enactment   of   the   Bombay   Public   Trust   Act   was   registered   as   a   Public   Charitable   Trust.   The   Trust   is   today   running   the   K   J   Mehta   General   Hospital. Prior to its development as a General Hospital in the year 2004,   it was exclusively a TB and Thoracic Institute since inception (1945).
b) I state that during the academic year 2009­2010 the Government   of  India   had   granted  permission  to  the  Society  to  commerce   a medical   college   with   an   intake   of   150   students.   I   state   that   in   terms   of   the   permission, the College was administered by the Society. 
c) I   state   that   the   Government   of   India   did   not   grant   renewal   permission for the academic year 2010­11. I state that this Honourable   Court   by   its   judgment   and   order   dated   26/08/2011   directed   that   the   students   admitted   in   the   College   be   transferred   to   other   Government   Medical Colleges. I state that since the students were being transferred in  the   Second   Year   of   the   Course,   the   Court   directed   that   the   fees   of   the   second MBBS, if paid by the students be refunded to the students and in   reference thereto the Court directed that a sum of Rs 1,37,000 be refunded   to the students. I state that in fact no lis regarding the fees actually paid   and liable to be refunded was adjudicated by this Honourable Court. 
d) I state that the College by its letter dated 19.11.2011 informed by   all the students to submit the fee receipt and obtain refund of the fees paid   by them. I state that in so far as the petitioners are concerned they are the   students   who   had   failed   in   the   1st  MBBS   Course   and   had   therefore   repeated the course. I state that as per the norms prescribed by the Justice   RJ Shah Committee, a college is entitled to charge 25% of the prescribed   annual fees in respect of the repeater students. I state that in accordance   with the said norms, the College after deducting the amount due towards   fees refunded  the  balance  amount  vide account  payee  cheque  drawn  on   State Bank of India, Amargarh Branch. I state that the said amount was   duly credited into the account of the petitioners as is set out in the table   reproduced by the petitioners in the respective  petitions. I state that the   specific order  passed  by the fee  committee  in the case  of the  Answering   Respondent   is   not   available   on   record,   however   in   all   cases   similar   conditions have been imposed as regards repeater fees. 

A copy of the general conditions prescribed by the Justice R J Shah   Committee, is annexed herewith and marked Annexure R­8/1. 

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HC-NIC Page 3 of 7 Created On Wed Mar 23 01:34:32 IST 2016 C/MCA/2960/2015 ORDER

e) I   state   that   the   students   were   aware   of   the   above   circular   and   accepted  the payments  made  to them without protest.  I state  that MCA   No.979/2013 was filed before this Honourable Court by certain students   raising  a grievance  that fees as directed  were  not  paid since  deductions   were made towards repeater fees. I state that when the said proceedings   were instituted and decided, the Society was under the administration of a   Committee  appointed  by this Honourable  Court  and  the  records  reveals   that   no   appearance   was   filed   on   behalf   of   the   Society   and   no   representations were made on behalf of the Society before this Honourable   Court. I state in the said circumstances, this Honourable Court has by its   order held that the said students were entitled to seek the entire amount   due   to   them   without   any   deductions   more   particularly     since   no   clarification in this regard was sought by the Society from the Court. 

f) I state that thereafter a period of another 2 years and more, the   petitioners have filed these applications seeking direction for compliance of   the order of this Honourable Court in SCA 3518 of 2011 and for payment   of the amount deducted towards repeater fees. 

g) I   submit   that   the   order   in   question   has   been   passed   on   26/08/2011. I state that the present applications have been filed after a   period of more than 5 years from the date of the judgment and from the   date of compliance thereof. I submit that as such the deduction made by   the college while  making  the payments  was bonafide and in accordance   with the regulations of the Fee Regulatory Committee. 

h) I state  that in view of the above  there  is no disobedience  by the   college of the judgment and order of this Honourable Court. I submit that   the petitioners were only entitled to the refund of the fees payable for the   2nd  year. There was no direction for repayment of the fees of the 1st  year   which the petitioner had repeated. I submit that after adjustment of the   repeater fees the balance amount has been refunded to the petitioner."

6 Thus, it appears from the stance of the college that the applicants  were having A.T.K.T. in the first year, and according to the Justice R.J.  Shah   Fee   Regulatory   Committee   recommendations',   the   college   could  have retained a portion of the fees. 

7 We   take   notice   of   the   fact   that   identical   applications   being  Miscellaneous Civil Application No.979 of 2013 and allied were filed by  the   similarly   situated   students,   who   were   not   refunded   the   full   fees,  despite   the   direction   issued   by   this   Court   referred   to   above.   Those  Page 4 of 7 HC-NIC Page 4 of 7 Created On Wed Mar 23 01:34:32 IST 2016 C/MCA/2960/2015 ORDER applications   were   disposed   of   by   a   Division   Bench   of   this   Court   vide  order dated 12th December, 2014, which reads as under:

"1. These applications are filed by some of the original petitioners. This   Court in various petitions, raising common issue of the medical education   in a college run by respondent no.8­ College, disposed of the petitions by a   common judgment and order dated 26.08.2011 interalia giving following   directions.
(8) Respondent  no.8­  College  is directed  to refund  the  fees if   paid by each of the students of 2nd M.B.B.S. Course to the tune   of Rs.1,37,000=00 with 8% interest, to the petitioners­students   within a period of three months from today. The College is also,   directed to refund the N.R.I. Fees if paid by any of the N.R.I.   students,   as   per   the   statement   made   at   the   Bar   by   learned   senior counsel appearing for respondent no.8 College.
2. These applicants complain that such direction has not been complied in   full. The College has withheld a portion of refundable fees of the students   of Rs.1,37,000=00. They have therefore filed these applications seeking a   direction  to the respondent  no.8 to refund  the full  fees with interest as   directed by the High Court. 
3.   Though   served,   no   one   appeared   for   the   respondent   no.8.   Learned   counsel   Mr.   Mitul   Shelat   appearing   for   respondents   nos.10   and   11   erstwhile Trustees of the Trust, which run the College stated that the said   respondents  no longer  are in the position  of the Trustees.  They  had no   personal liability. They are wrongly joined in this proceedings. He further   submitted that the applicants­ students had A.T.K.T. in the 1st year of the   medical   course.   As   provided   by   the   Justice   R.J.   Shah   Fee   Regulatory   Committee, the College was therefore entitled to charge 25% of the fees   from such students. It was perhaps therefore that the College withheld a   part of the refundable fee out of Rs.1,37,000=00  while releasing rest of   the   fees   of   the   applicants­   students,   which   even   the   applicants   did   not   dispute.
4. In so far as the respondent nos.10 and 11 are concerned, they cannot be   personally held liable  for refund  of the fees as erstwhile  Trustees  of the   Trust. However, their alternative stand that since the students were having   A.T.K.T. in the 1st  year and as per the Justice R.J. Shah Fee Regulatory   Committee recommendations, the College could have retained a portion of   the fee, cannot be accepted for the simple reason that such facts were never   placed   before   the   Court   at   the   time   of   final   disposal   of   the   original   petitions.   Even,   if   the   general   directions   for   refund   of   the   fee   of   Rs.1,37,000=00,   could   not   have   been   made   applicable   to   such   special   cases, it was the duty of the concerned respondent to bring such facts to   Page 5 of 7 HC-NIC Page 5 of 7 Created On Wed Mar 23 01:34:32 IST 2016 C/MCA/2960/2015 ORDER the notice of the Court at the time of disposal of the petitions and at any   rate thereafter through applications for modification or clarification of the   order. The College simply cannot take upon itself to modify the order of   the   Court   in   the   guise   that   such   general   directions   cannot   be   made   applicable to all students.
5. Under the circumstances, the respondent no.8 is directed to release the   remaining   portion   of   the   fees   of   the   concerned   students   out   of  total   of   Rs.1,37,000=00   required   to   be   paid   under   the   judgment   of   the   High   Court. This shall be paid latest by 31st January 2015.

With the above directions, all these applications are disposed of."

8 We propose to take  the  very same view referred to above. The  explanation offered by the college for not refunding the entire fees and  retaining a portion is not justified. While disposing of the main petition,  the college had not raised the issue as regards the refund of fees which is  now sought to be raised for the  first time. In such circumstances, we  should not look into or consider an absolute new plea.

9 Mr. Shelat invited our attention to the averments made in para 3  of the reply which reads as under:

"I submit that without prejudice to the above, the Society has resolved to   abide by any directions as may be issued by this Honourable Court. The   Answering Respondent has determined the amount payable on the basis of   the information provided by the petitioners and is making arrangements   for ensuring that the amount if and as may be directed by this Honourable   Court be made to the petitioners."

10 Mr. Shelat, however, submitted that some relief may be granted so  far as the interest part is concerned. 

11 We are not inclined to accept such plea as almost five years have  passed and the students have been deprived of the amount which the  college was otherwise obliged to pay in accordance with the directions  issued by this Court. 

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HC-NIC Page 6 of 7 Created On Wed Mar 23 01:34:32 IST 2016 C/MCA/2960/2015 ORDER 12 In the result, all these applications are allowed. The respondent  No.8 - college is directed to release the remaining portion of the fees of  the applicants out of total Rs.1,37,000/­ (Rupees One Lac Thirty Seven  Thousand only) required to be paid under the judgment of this Court.  The details of the fees paid, fees refunded, fees not refunded with the  necessary remarks are in para - 3 of the applications. The college shall  take   note   of   those   figures   and   refund   the   amount   with   8%   interest  within a period of three months from the date of receipt of the writ of  this order. 

(R. SUBHASH REDDY, CJ) (J.B.PARDIWALA, J.) chandresh Page 7 of 7 HC-NIC Page 7 of 7 Created On Wed Mar 23 01:34:32 IST 2016