Why in India top B school or any B school is not liable to refund the registration fee to the student in case they not able to fulfill the minimum eligibility criteria?

Scenario :-

U have to apply MDI Guragon before your CAT and in case u not able to get 98-99% in CAT they didn't even give u a call for next round.

There are many colleges are there like this?

By which rule in India which allow these college to earn money by this method? And why we can't sue them in the court in case if we didn't get any call from these colleges!

Like in EWS category who is not so strong financially bound to pay fee in advance and in return most of the student didn't even get any refund or any call from these college and the total money wasted!!

So cant we just sue these college and ask them refund?