DC Debate: Who pays liquidated damages

he new government has decided to retain the clause for liquidated damages in the agreement entered into with Kerala Self Financing Engineering College Management Association. Hence, students who seek transfer from private self-financing colleges after the third round of allotment would not get their fees refunded. Moreover, they will have to pay liquidated damages. DC looks at the pros and cons of the clause.

A way to repay  college’s cost

1) As per the KEAM prospectus-2016, the clause (No.12.2.4.(a) (iii)) regarding liquidated damages is as follows: “If any candidate admitted against government seats in government /government-controlled/ private self-financing medical and dental colleges and management seats in government-controlled self-financing colleges allotted by the CEE for MBBS/BDS courses discontinues after the closing of admission in the same academic year, to join other courses/colleges or for other purposes, he/she is liable to pay liquidated damages of Rs 10 lakh in the case of MBBS course and Rs 5 lakh in the case of BDS course, irrespective of annual family income / nativity / reservation status and also liable to be debarred from appearing in the entrance examinations conducted by the CEE for a period not exceeding two  years. In the case of failure to remit the penalty, the same is liable to be recovered under the Revenue Recovery Act.”

2) As per the agreement between the government of Kerala and Kerala Christian Professional College Managements’ Federation (KCPCMF), the clause (No.14) regarding liquidated damages is as follows: “The educational agency can retain the tuition fee remitted by the student, in the event the student admitted under the management quota or government quota, discontinues his/her studies for any reason at any time after September 20 of the respective year. The educational agency shall also be entitled to collect the tuition fee of the entire course. The documents pertaining to such student shall be released only on payment of the above amount. However, in the event of the seat so falling vacant being filled up by a new candidate, the tuition fee collected as per this clause shall be refunded.”

3) As per the prospectus published by Kerala Christian Professional College Managements’ Federation – 2015, approved by the ‘Admission Supervisory Committee’ and the ‘Fee Regulatory Committee’ the clause (No. 7.3) regarding liquidated damages is as follows: “If any student discontinues the studies without giving notice 10 days prior to the date for closure of admissions to MBBS/BDS courses stipulated by the Supreme Court of India, he/she will be liable to pay liquidated damages equivalent to the tuition fee for the entire duration of the course. In such cases, all certificates, including the transfer and other certificates, will be issued only after payment of all dues, including tuition fees for the entire course.”

- George Paul, Coordinator, Kerala Christian Medical College Managements’ Federation

Vacant seats are not wrong

I am not aware what exactly the clause on liquidated damages in the agreement entered between the managements and the state government says. If the logic for introducing such a clause was for reducing the number of vacant seats in professional colleges, the logic is flawed. There is nothing wrong in a number of professional seats remaining vacant. It is estimated that around 40,000 seats would remain vacant in self-financing engineering colleges this year. This would not make any difference in the quality of engineering education in the state.

The question is whether the state needed that much engineers. Though privatisation of engineering education increased enrolments, it has actually led to deterioration in the educational quality. It has also not improved the quantity to the desired extent as can be seen from the low pass percentage. At the same time, it had a harmful effect on the quality of engineers produced within the state.

In such circumstances, there is no need to introduce such a clause to prevent migration of students from self-financing colleges to government colleges. I am not clear whether doing away with the restriction that students who got admitted to self-financing colleges could not move to even government colleges after the third round of allotment could make any qualitative change either. Of course, it is an injustice to the students who are denied such an opportunity. Whether the decision would make any qualitative change on the standard of engineering education is another matter.

It could be known only if the quality of the student who got the admissions in his place is also assessed. We cannot say that someone who is ranked higher in the entrance examination is qualitatively in a higher plain than one who is ranked lower. The common entrance examination was created to allocate seats to students applying to the engineering college.

It was introduced to act as a filter, which will select students with aptitude and capabilities for technical education. However, we cannot say that there is much difference between one who is ranked below and one who is ranked above him. We cannot also say that the present mode of entrance examination is foolproof.

(As told to Sabloo Thomas)