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Unpaid MBA fees at an IIM after failure — legal position?


15-Jan-2026 (In Recovery Law)
I was enrolled in an MBA program at an IIM and attended 3 trimesters. I paid the 1st trimester fee but could not pay fees for the 2nd and 3rd trimesters. I later failed academically and left. The IIM is now demanding payment of the pending fees. During the 2nd trimester, a professor verbally advised me that I could continue and that the 3rd trimester fee would be managed, but there was no written confirmation. Do I have any legal standing, or is payment mandatory?
Answers (3)

Answer #1
732 votes
Indian courts have held: Educational institutions can recover fees if contract allows No force or coercion allowed Reasonableness & fairness of fee clause matters 8️⃣ Practical Defence Options for Student You can: Demand fee policy & signed agreement Argue unfair contract / unconscionable clause Seek proportional fee adjustment Request amicable settlement / waiver File case before: Civil Court, or High Court (Writ) if public law violation exists
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Advocate Prashant Gupta

Adv. Prashant Gupta

LawRato Mumbai | 50+ Answers
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Answer #2
771 votes
Admission to an IIM and continuation in the MBA program is governed by the admission offer, fee structure, and academic regulations accepted by you at the time of joining. In absence of any written waiver or official approval, a professor’s verbal assurance has no binding legal value. Since you attended the 2nd and 3rd trimesters and availed academic facilities, the institute can legally demand the applicable fees. Non-payment does not automatically stand waived due to academic failure or exit. However, you may seek relief by requesting a compassionate or discretionary waiver under institute rules, or contest unreasonable charges if services were not actually availed, but as a rule, payment is legally enforceable.
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Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRatoPune | 700+ Answers
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Answer #3
888 votes
Inform the bank about your job loss and request a loan restructuring or a moratorium. Under RBI guidelines, creditors cannot harass you. If harassment persists, file a police complaint immediately as per the concerned provisions of law
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Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRatoMumbai | 1000+ Answers
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