Mr. Sameer Verma, a resident of Anandpur, found himself in a frustrating situation. He had filed a consumer complaint against ‘Global Gadgets Ltd.’ after a high-end laptop he purchased from them turned out to be defective. Despite numerous emails, calls, and even a legal notice, the company ignored his pleas for a replacement.

He decided to take the matter to the District Consumer Disputes Redressal Commission. After filing his complaint with all necessary evidence, he waited for the company’s response. Global Gadgets Ltd. failed to submit their official reply within the mandated 45-day period. Consequently, the Commission scheduled the next hearing for the submission of evidence.

On the day of the hearing, Mr. Verma was delayed by unexpected traffic and reached the Commission a few minutes after his case was called. The Commission had already adjourned his case and assigned a new date nearly two months away. When he enquired with the bench after the morning session, he was politely informed that he needed to file a separate ‘evidence affidavit’ on the next date, even though he had submitted all documents with his initial complaint. A staff member was assigned to guide him on the procedure.

While waiting in the corridor, the lawyer for Global Gadgets Ltd. approached him. “We are ready to exchange the product,” she said. “If you agree, we can take the case back.” Mr. Verma was taken aback. After months of being ignored, the company was suddenly offering a settlement, but only after he had spent considerable time, money on travel and documentation, and mental energy pursuing the case. He felt the offer was insufficient as it didn’t account for the harassment and costs he had incurred.

Advice in such cases

It is a common tactic for companies to offer out-of-court settlements once they realize the consumer is serious and the case is progressing. They do this to avoid the cost of litigation, potential penalties, and a formal order against them which could set a precedent.

• Evaluate the Offer Carefully: Do not reject the offer outright, but do not accept it in haste either. The initial offer is often just a starting point for negotiation.
• Calculate Your True Costs: The settlement should cover more than just the price of the defective product. Calculate your expenses, including travel costs, photocopying and documentation charges, legal fees (if any), and most importantly, compensation for the mental agony and harassment you have endured.
• Negotiate for Full Compensation: Inform the opposing party that you are open to a settlement, but it must be comprehensive. Propose a counter-offer that includes the product replacement/refund, litigation costs, and a reasonable amount for mental harassment.
• Get it in Writing and on Record: Never agree to withdraw a case based on a verbal promise. Any settlement must be documented in a formal ‘Settlement Agreement’ or a ‘Joint Memo’ and submitted to the Consumer Commission. The case should only be withdrawn after the Commission has taken the settlement on record in its formal order.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The primary law governing such cases is the Consumer Protection Act, 2019. Key provisions include:

• Section 35: Lays down the manner of making a complaint to the District Commission.
• Section 36: Details the procedure upon the admission of a complaint, including the provision that the opposite party must file their version within 30 days, extendable by another 15 days. If they fail to do so, the Commission may proceed to decide the complaint on its merits.
• Section 39: This is a crucial section that lists the reliefs the Commission can grant. This includes not just the removal of defects or replacement of goods, but also compensation for any loss or injury suffered by the consumer, punitive damages, and the costs incurred by the complainant. This section empowers you to claim more than just the product’s value.

If you are the complainant

• Remain calm and professional when the offer is made. Do not show anger or frustration.
• Politely decline to give an immediate answer. State that you need time to consider the offer.
• Do not sign any document or agree to withdraw the complaint on the spot.
• Communicate any counter-offer formally, preferably through email or a written letter, to have a record.
• Insist that the final settlement terms be recorded in an order by the Commission before you agree to the closure of the case.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

• Recognize that as a consumer, you have significant rights. The law is designed to protect you from unfair trade practices and deficiency in service.
• Document the settlement offer immediately. Note down the name of the person who made the offer, the date, time, and the exact terms proposed.
• Do not be pressured into accepting an unfair offer. The company is likely making the offer because they know their case is weak.
• The ultimate goal is not just to get a replacement or refund, but to be compensated for the entire ordeal the company put you through.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Consumer disputes are civil in nature, and the police have no direct role in these matters. The appropriate forum is the Consumer Disputes Redressal Commission. You should not approach the police for issues related to defective products or deficient services. Police intervention would only be relevant if there is a clear criminal element involved, such as fraud or cheating, which would need to be pursued as a separate criminal complaint under the Bharatiya Nyaya Sanhita (BNS). However, for the purpose of getting a refund, replacement, or compensation, the Consumer Commission is the exclusive and effective authority.

FAQs people normally have

What evidence is required?

Evidence in a consumer case is crucial. It is submitted in two stages. First, with the initial complaint, and second, through a formal Evidence Affidavit.

• Initial Documents: This includes copies of the bill/invoice, warranty card, product photographs/videos showing the defect, all correspondence with the company (emails, chat transcripts), and a copy of the legal notice sent.
• Evidence Affidavit: This is a sworn statement where you reaffirm the facts of your case and formally present your documents as evidence. Each document is annexed and marked. This is a mandatory procedural step to ensure the evidence is formally brought on record under oath.

How long will the investigation take?

The Consumer Protection Act, 2019, mandates a swift resolution, ideally within three to five months. However, in practice, the timeline can be longer due to various factors like a heavy caseload in the commission, adjournments sought by parties, or procedural complexities. In cases where the opposite party fails to file a reply, the commission has the power to proceed ex-parte (in their absence), which can sometimes expedite the process.

Advocate Sudhir Rao, Supreme Court of India