A representative of a private college, which closed suddenly two weeks ago, has told a meeting of its creditors that the company accepted that students in India who are owed refunds of up to €5,000 were sent forms that were misleading.

Yesterday the High Court heard that Carlyle Institute had sent forms to the students, asking them to sign them and claiming they were refund forms.

In fact the forms were proxy forms that signed away the students’ rights as a creditor.

The Carlyle representative accepted that this was "a serious misrepresentation".

He said he agreed that the action was completely misleading to students.

The college told creditors it owes over €170,000 in fee refunds to students who have yet to begin their courses.

A list of 71 students was given to creditors, who are owed €176,000 between them.

However, the figure has been challenged by student representatives who say they are aware of students whose names should be on the list but are not.

Carlyle Institute director Simon Morris told the meeting the college had been forced to close due to significant uncertainty in the sector as a result of proposed Government reforms.

A company representative told the meeting that "nobody" was happy that there was not enough money to refund students.