I had enrolled for a program from a coaching institute in Noida in Decembef 2025 and paid Rs 2000 as token advance money. Rest 1 lac was to be paid after 1 month. But due to medical reasons I asked the institute to cancel my admission.
But instead of refunding me the Rs 2000 , they have sent me a legal notice demanding Rs 1 lac from me for the course. I have not attended any class nor taken any educational services from them. They are yet to give any online access for the classes and allot me a batch.
They have sent me a legal notice under order 37 of CPC , 1908 demanding money.
Do I have to pay the amount to the institute even if I haven't taken any classes nor any educational services. Is this not mental harassment.
Please provide a legal solution to the problem.
You are not automatically liable to pay ₹1 lakh merely because you paid ₹2000 as token amount, especially when:
• You did not attend any class
• No batch was allotted
• No online access was provided
• No services were rendered
• You cancelled due to medical reasons
Now let us address the legal aspects clearly.
Order 37 CPC Notice – What It Means
Code of Civil Procedure, 1908 Order 37 applies only to summary suits based on written contracts, bills of exchange, promissory notes, etc.
Important:
A legal notice mentioning Order 37 does NOT mean you must pay.
They can only recover money if:
• There is a clear written agreement binding you to pay ₹1 lakh
• The agreement contains a strict non-refundable clause
• They can prove breach of contract
Even then, they must prove actual loss.
No Service = No Consideration
Under contract law, if no service is provided and no batch allotted, claiming full ₹1 lakh is legally excessive and appears penal in nature.
Courts do not allow “penalty clauses” unless actual loss is proved.
₹2000 Token Amount
If prospectus clearly states “non-refundable registration fee”, then refund may be difficult.
If no such written condition exists, you can demand refund.
Mental Harassment Angle
Sending exaggerated legal notice for ₹1 lakh without rendering service can amount to:
• Unfair trade practice
• Deficiency of service
• Coercive recovery attempt
You can proceed before Consumer Commission.
Your Legal Remedies
Option A – Strong Legal Reply
Send a firm reply stating:
• No batch allotted
• No services rendered
• No agreement to pay ₹1 lakh unconditionally
• Cancellation due to medical emergency
• Demand withdrawal of false claim
Most institutes withdraw after strong reply.
Option B – Consumer Complaint
File complaint under Consumer Protection Act, 2019 before District Consumer Commission (Noida jurisdiction).
Reliefs you can claim:
• Refund of ₹2000
• Compensation for harassment
• Litigation cost
Option C – If They File Order 37 Suit
If they actually file suit, you must enter appearance within 10 days and seek leave to defend.
Since no services were provided, you have strong defence and the court will likely grant leave.
Important Questions
Did you sign any written agreement?
Does it contain “full fee payable even if student withdraws”?
Do you have medical documents?
Was cancellation within cooling period?
In practical terms:
Their ₹1 lakh claim appears legally weak unless you signed a strict enforceable contract.
Do not ignore the notice. Send a proper legal reply within time.
If you want, I can draft a strong reply notice protecting you legally and psychologically putting pressure back on them.
Analyze the Legal Notice
Formulate Your Defense
You must formally reply to the legal notice through an advocate within the stipulated time mentioned in the notice (usually 10 days for Order 37) to explain your position and prevent an ex parte order against you.
You should reply to the notice immediately to avoid a court judgment against you.
ADVOCATE Sudesh Kumar
LLB AND LLM
HIGH COURT & Other Courts
so you have to dodge the summons appear only when called in the notice you paid booking as 2000 you want refund and the coaching class is for 1 lakh per month which you are unable to pay you haven't taken classes you have to go in for settlement
no you don't have to pay a single penny and why will you and you haven't entered into a contract with them or you are bound to pay them, send a reply to their legal notice stating all the grounds to withdraw their legal notice otherwise you will initiate a legal recourse against them on their own risk and cost.
Disclaimer: The above query and its response is NOT a legal opinion in any way
whatsoever as this is based on the information shared by the person posting the
query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to
address the specific facts and details.