Service Dissatisfaction · 9 min read · 13 min 19 sec listen · Published 11 July 2026

College Demanding Second Year Fees for Transfer Certificate After Dropout – Legal Remedies

Facing illegal demand for second year fees to issue CLC after dropping out? Know your legal rights, applicable university rules, and escalation options under Indian law.

College Demanding Second Year Fees for Transfer Certificate After Dropout – Legal Remedies
One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

TL;DR: A college cannot legally demand fees for an academic year you never enrolled in or attended. You are entitled to a Transfer Certificate (TC) or Conduct and Leaving Certificate (CLC) upon dropping out after your first year. Escalate to the university registrar and file a grievance on the UGC portal if the college refuses.

Key Facts of the Case

  • A student enrolled in a B.Sc. Physics programme at a government college in Bhubaneswar, Odisha completed the 2024-25 academic year.
  • The student chose not to take readmission for the second year during the designated readmission period in mid-2025.
  • No fees were paid for the second academic session. The student attended zero classes and wrote no exams in 2025-26.
  • When the student requested a Transfer Certificate to continue studies elsewhere, the college demanded full second-year fees as a condition for issuing the document.
  • The principal refused to accept the student's formal application seeking a fee waiver for the unenrolled second year.
  • The student remained a first-year student only — no contractual or academic liability arose for the second year.
  • Under UGC guidelines and most university ordinances, fees are chargeable only for the period of actual enrolment and attendance.

Can a college demand fees for a year you never enrolled in?
No. Absolutely not. A college cannot demand fees for an academic year where you did not take readmission, paid nothing, attended zero classes, and wrote no examinations. The relationship between a student and an educational institution is contractual. That contract ended when you did not complete the readmission process for the second year. No fresh contract — no fee liability.

Do you have to pay to get your CLC/TC?
No. The CLC or Transfer Certificate is your right as a former student. It is not a commercial document the college can hold for ransom. The University Grants Commission (UGC) and almost all state university ordinances make it clear that a student who withdraws mid-course is entitled to a TC upon settlement of dues actually owed — and here, no dues exist for the unenrolled year.

Should you pay and run, or fight?
Do not pay. Paying under protest will make recovery difficult later. Escalate immediately to the university registrar, the state higher education department, and the UGC grievance portal. That is your correct legal path.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

First, send a formal legal notice to the college principal and the university registrar through your advocate. The notice should demand the CLC within 7 days, citing relevant UGC guidelines and the university's own ordinances. Next, file a complaint on the UGC's online portal (ugc.ac.in) under the 'Grievance Redressal' section. Keep a copy of your first-year mark sheet, fee receipts, and the college's written refusal as evidence. This type of matter involves nuanced procedural and evidentiary strategies — university service rules and UGC circulars — that a general practitioner may not be fully familiar with. Engaging an advocate who regularly handles student disputes typically leads to faster and better outcomes.

Applicable Sections of Law

This is a civil matter governed by contract law and educational regulations. The key legal framework includes:

  • Indian Contract Act, 1872 — Section 2(d): Consideration. No consideration was given for the second year, so no contract exists.
  • Indian Contract Act, 1872 — Section 65: Obligation of person who has received advantage under void agreement or contract that becomes void. Not applicable here as no advantage was received by the student in the second year.
  • UGC (Establishment of and Maintenance of Standards in Private Universities) Regulations: Prohibit retention of original documents and mandate issuance of TC upon request.
  • Specific Relief Act, 1963 — Section 39: Mandatory injunctions. A court can direct the college to issue the CLC as a mandatory injunction if they refuse without valid cause.

Jurisdiction — Where to File the Case

If escalation fails, you can approach the civil court with territorial jurisdiction where the college is located. For a government college in Bhubaneswar, the court of the Civil Judge (Senior Division) in Bhubaneswar would have jurisdiction. For matters involving university ordinances, a writ petition before the Orissa High Court under Article 226 of the Constitution is also maintainable if there is a violation of fundamental rights (right to education, right to livelihood). Jurisdiction matters because filing in the wrong court will result in the case being returned, wasting your time and money.

If You Are the Victim

  • Collect all documents: first-year mark sheets, fee receipts, admission letter, and any written communication from the college.
  • Send a formal written request for CLC by registered post with acknowledgment due. Keep the postal receipt and tracking proof.
  • Escalate to the university registrar in writing. University authorities often overrule illegal demands by constituent colleges.
  • File a grievance on the UGC online portal. The UGC takes up to 30 days to respond and often issues directives to the college.
  • Do not pay the illegal demand. Once paid, your chance to challenge it weakens significantly.

Documents You Must Keep Ready

  • First-year mark sheet and pass certificate.
  • Fee receipts for the first academic year.
  • Admission letter and original college identity card.
  • Any written or emailed communication from the college demanding fees for CLC.
  • Copy of the formal application submitted to the principal (keep a photo of the submission or send it by registered post).
  • UGC grievance portal complaint acknowledgment.
  • Aadhaar card and PAN card for identity verification.

What Evidence Is Required?

  • Documentary proof that you completed the first academic year (mark sheets, admission records).
  • Proof that you did not take readmission for the second year (admission notice showing deadlines, your absence from attendance records).
  • Written communication from the college demanding second-year fees for CLC release.
  • Proof of your attempt to approach the principal (application copy, date-stamped receipt, or registered post proof).
  • Evidence that you never attended classes or wrote exams in the second academic year.
  • University ordinance or prospectus provisions on fee refund and TC issuance (often available on the university website).

How Courts Typically Approach Such Cases

Indian courts take a firm view against educational institutions that hold back documents or demand fees for services not provided. Courts have consistently held that a student who has not taken admission for a subsequent year does not owe fees for that year. The court will examine whether the student was readmitted, whether fees were paid, and whether any contractual liability arose. If none of these exist, a mandatory injunction is routinely granted directing the college to issue the CLC within a specified time, often with costs imposed on the institution for illegal conduct.

  • Step 1 — Escalation within university (2 to 4 weeks): Write to university registrar. University often resolves the issue by directive.
  • Step 2 — UGC grievance (3 to 6 weeks): File on UGC portal. UGC issues notice to college and may direct compliance.
  • Step 3 — Legal notice (1 week): Advocate sends formal legal notice to college and university.
  • Step 4 — Civil suit (3 to 6 months): If no response, file a suit for mandatory injunction. Court issues summons, hears both sides, and typically disposes of such matters relatively quickly since the facts are simple.
  • Step 5 — Execution (2 to 4 weeks): If the college defies the court order, you can seek execution for contempt.

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

Can the Matter Be Settled Out of Court?

Yes, in many cases. This type of dispute is highly amenable to settlement. Once the university registrar or the UGC intervenes, colleges often back down rather than face adverse orders. You can also approach the Lok Adalat for a negotiated settlement if the matter is pending before a court. The college may agree to issue the CLC without fees if the university pressures them. However, if the college is adamant, do not settle for paying an illegal demand. A compromise where you pay a reduced amount is still paying for nothing — you are better off litigating, as the legal position is clearly in your favour.

Common Mistakes People Make

  • Paying the illegal demand: Once you pay, recovering that money becomes difficult and the college gets away with it. Never pay under threat.
  • Delay in action: The longer you wait, the harder it becomes to get the CLC. Time matters because colleges purge old admission records.
  • Not keeping documentary evidence: Lose the fee receipts or admission letter, and proving your case becomes harder.
  • Engaging a lawyer without domain-specific experience: Student disputes involve university ordinances, UGC regulations, and contract law nuances. A general practitioner may miss the specific circular or ordinance that directly decides the case. An advocate who handles education-related matters regularly will know the exact procedural steps — escalation to the right university authority, the correct format for UGC complaints, and the precise legal provisions for a mandatory injunction — which saves months of delay.
  • Posting on social media instead of following formal grievance mechanisms: This can prejudice your case and invites defamation risk. Always use the formal legal and administrative channels first.

FAQs People Normally Have

Can the college keep my original documents if I don't pay?

No. Retaining original certificates or mark sheets as a coercive measure is illegal. The UGC has specifically directed that no institution shall withhold original documents under any pretext.

What if I already paid the second-year fees before dropping out?

If you paid and then dropped out, you are entitled to a refund of fees for the unserved period. The college cannot keep fees for services not provided. You can file a complaint with the university or approach the consumer forum.

Will the CLC mention that I dropped out?

Typically, a CLC only states the period of study and the conduct of the student. It will not contain a negative remark like "dropout" unless the college specifically mentions it, and even then, it must be factually accurate. If false remarks are made, you have a defamation remedy.

How long does the UGC take to resolve such complaints?

The UGC usually acknowledges the complaint within a week and issues a notice to the college within 15-20 days. The entire process of resolution can take 30 to 60 days depending on the college's response.

Can I join another college without a CLC?

Most colleges require a CLC or TC from the previous institution for admission. Without it, you may face difficulty. However, you can submit an affidavit explaining the situation and produce alternative proof of your academic record, and some colleges may provisionally admit you while the CLC issue is resolved.

This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.

Advocate Sudhir Rao, Supreme Court of India

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