Student Expelled for Night-Out

Hello All, This is regarding something very wrong which has happened to one of my friends. My friend studied in a very reputed mba college till yesterday. He was expelled from the Institute along with another person for not coming back to college campus at night. To be exact, some friends had gone for a birthday party and two of them got very high and they were not in a position to return. The college has the rule that every student should return before 11:30 PM into college campus. I understand that the college rule was broken. Also, this was not something regular but the first time that had happened with them. Now this two people after completing one year successfully are left nowhere. They had to score close to 90+ percentile to get admitted in the institute and have given 8+6=14 lac as tuition fee. I just want help from you guys to know if this is legal to destroy career of students for not coming back and breaking college rules. I can understand such action in cases of sexual offense, criminal activities, false documents, etc. Now, these people are been treated as if they have committed such a big crime. A crime which took 2 years of their life, 14 lac, reputation, future career, parents hope, Is there any law which can allow any Institute to take such actions for offense like this??? Please help as this is something which is destroying life's of great future prospect students