HCMI Education vs. Narendra Pal Singh

Civil Appeal · 2022 INSC 698Decided 11 Jul 2022
Civil Appeal No. 2481 of 2016
Abhay S. Oka · M.M. Sundresh

Background

Narendra Pal Singh approached HCMI Education, an agency that facilitated overseas admissions, to secure an MBBS seat in the Philippines. He was admitted to a college for the 2007-08 academic year and completed one year of study. In 2008, the Philippines' Commission on Higher Education abolished the MBBS programme nationwide for that batch of students, offering them an alternative bridge/BS Biology course instead. Rather than accept the alternative course, the respondent returned to India and filed a consumer complaint against HCMI Education, which was upheld by the District, State and National Consumer Commissions, directing HCMI to refund $12,000 plus compensation and costs.

Decision Breakdown

The Supreme Court found merit in HCMI's appeal, holding that although HCMI's promotional material suggested it acted on behalf of the Philippine authorities too, its actual role was limited to securing the admission, which it successfully did. The subsequent policy decision to abolish the MBBS programme was a sovereign policy call of the Republic of the Philippines affecting all similarly placed students nationwide, not a fault attributable to HCMI, and HCMI could not be held vicariously liable for a decision entirely outside its control. Since the student did complete one year without any problem before the policy changed, and HCMI never refused the alternative course option, the consumer fora below had erred in fixing liability on the facilitator. The Court set aside the orders of all three consumer fora and dismissed the original complaint.

Lesson Learnt

A service facilitator (such as an education consultant or agent) cannot be held liable under consumer law for consequences arising purely from a third party's sovereign or institutional policy decision that is beyond the facilitator's control: liability requires a deficiency in the facilitator's own service, not just an unfavourable turn of events.

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