Some students were complaining because your grade can be affected by other students. One really good or one really bad student can drastically change your grade.
Do you think grades like that are fair?
Generally I hate things that are put on a curve. It means moderately good engineers are booted out even though they're proficient enough to do a good job. It can also mean that dangerously bad engineers graduate just because the rest of the class happens to be dangerous as well.
I wonder what would happen if the police or the army were on a curve. A bunch of fat retards show up for police tryouts and half of them are hired because it's on a curve.
edit
Sounds crappy to me. The only way grades should be affected by other students is in a case where they are totally offset, then they will do a bell curve. Basically if everyone fails, they make the best person have close to 100% and rearrange the rest of the grades accordingly, so more people pass. I have never, ever seen or heard of this happening though, it's more or less a myth.
It happens a lot in engineering. Tests are unbelievably hard, are virtually impossible to finish on time, and nobody gets higher than 50%. The reason for making the test impossible is that it doesn't set an artificial limit of 100%; the smartest person in the world will always score slightly higher than the second smartest person. The curve can then be applied in such a way that a certain quota move on to the next level of training. If the university only has enough capacity for 100 second year students, they can get away with accepting 200 first year students and applying a curve that will fail half of them.
It sucks, but that's life. Applying for jobs is on a curve. You can be a very qualified candidate, but you still won't get the job if someone else is better.