Technically they're both in the wrong, or at least they would be if they were in the states.
Person down hill has the right of way, but it also clearly says that one should stop in areas where they can be seen both uphill and downhill and not hidden by natural terrain.
That said fuck the instructor. They are in no position to ask for or take your pass and telling them to eat a bag of dicks comes to mind.
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Because someone has to call it how they see it!