UGC Guidelines Overrule AICTE Rules On Student Fee Refunds: Kerala HC

The Kerala High Court has firmly established the primacy of University Grants Commission guidelines over technical council regulations, mandating that educational institutions must honor liberal fee refund policies for students cancelling admissions during 'special' academic windows. In a decisive ruling, the Division Bench upheld the student's right to a full refund, effectively nullifying university-specific restrictive policies that conflicted with central mandates aimed at mitigating financial hardship.

A Division Bench comprising Justice Anil K. Narendran and Justice Muralee Krishna S. delivered the judgment while hearing an appeal filed by the Cochin University of Science and Technology. The University challenged a Single Judge's directive to refund fees to a student who cancelled his B.Tech admission to join another institution after the commencement of classes.

Primacy of UGC Guidelines Over AICTE Regulations

The central legal conflict involved the clash between the Kerala High Court Act, 1958 and the All India Council for Technical Education. While the University and All India Council for Technical Education prescribed early cut-off dates for fee refunds, the University Grants Commission had issued special circulars for the 2022-23 academic year allowing refunds for cancellations made up to December 31, 2022. The Court relied on the precedent set in Association of Management of Private Colleges v. All India Council for Technical Education and Others ( "2013 (8) SCC 271": 2013 CaseBase(SC) 292) to resolve this conflict.

The Court, in its reasoning, observed: "As rightly observed by the learned Single Judge, Ext.P5 communication dated 02.08.2022 issued by the UGC stipulates that the academic year 2022-23 has to be treated as a special case and full refund of the amount collected is required to be effected after deducting not more than Rs.1,000/-, when the cancellation of admission/migration is made up to 31.10.2022. There is no illegality in the finding of the learned Single Judge, based on the judgment of the Apex Court in Association of Management of Private Colleges v. All India Council for Technical Education and Others ( "2013 (8) SCC 271": 2013 CaseBase(SC) 292), that it is the regulation by the UGC which will prevail over the guidelines issued by AICTE."

University's Internal Policy Struck Down

The appellant University contended that according to its own notice and the All India Council for Technical Education academic calendar, the last date for refund had passed. However, the Court noted that since the University Grants Commission had specifically notified that violations of these refund directions would invite punitive action, the University could not unilaterally fix an earlier closure date for admissions or refund eligibility.

The Court has following directions:
"There will be a direction to the 1st respondent herein to refund the course fee to the petitioner with reference to the mandate under Ext. P5."

Key Takeaways:

UGC Authority Reinforced

Educational institutions cannot bypass University Grants Commission refund mandates by citing All India Council for Technical Education regulations or internal policies, as University Grants Commission regulations hold superior binding authority in this domain.

Protection Against Financial Forfeiture

Students are entitled to refunds for admission cancellations made within the windows specified by central regulators, even if classes have commenced, provided the University Grants Commission has declared a 'special case' window.

Binding Nature of Central Circulars

Statutory circulars issued by the University Grants Commission for specific academic years carry the force of law and override any contradictory state government or university-level notifications.

Ratio Decidendi:

Regulations and guidelines issued by the University Grants Commission regarding fee refunds and admission cancellations prevail over the guidelines issued by the All India Council for Technical Education and the internal administrative notices of a University. For the academic session 2022-23, the 'special case' refund policy of the University Grants Commission is binding on all higher educational institutions.

Background:

The dispute began when a student (the 1st respondent) secured admission to a B.Tech (C.S.) course at Cochin University on November 2, 2022, remitting ₹64,985. He sought cancellation on November 30, 2022, to join another college. The University refused a refund, citing a policy that prohibited refunds 30 days after classes commenced. The student approached the High Court under Article 226 of the Constitution of India, arguing that the University's stance violated University Grants Commission circulars dated August 2, 2022, and November 1, 2022. The University argued that the seat remained vacant and that All India Council for Technical Education rules should apply. A Single Judge ruled in favor of the student, leading to the present appeal by the University. The Division Bench found no merit in the appeal and dismissed it, confirming that the University’s early closure of admissions could not be used as a reason to deny a refund mandated by central guidelines.

Case Details:
Case No.: WA NO. 1067 OF 2026
NeutralCitation: 2026:KER:51706
Case Title: Cochin University Of Science And Technology V. Prithvish M. Menon And Others
Appearances:
For the Petitioner(s): Sri.S.P.Aravindakshan Pillay, Smt.Kavya Varma M. M.
For the Respondent(s): Shri.S.Krishnamoorthy, Sc; Sri.K.N Chandra Babu, Sc; Sri.V.Sajith Kumar, SC

Source: 2026 CaseBase(KER) 420