One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
Priya Mehta from Koramangala, Bangalore, approached my office regarding a dispute with Radiance Skin Care Clinic. She had signed up for a laser hair removal package worth Rs. 45,000, payable through 12 monthly EMIs of Rs. 4,200 each. After the first session, Priya experienced severe skin irritation and decided to discontinue the treatment. Despite not availing any further sessions and formally canceling within the cooling-off period, Radiance Skin Care refused to cancel the EMI arrangement. The clinic claimed that the EMI was “non-cancellable” as per their terms and conditions. Priya had only utilized services worth Rs. 3,500 but was being forced to pay the entire amount. The clinic’s management, led by Dr. Rajesh Kumar, insisted that cancellation was impossible due to their financing partner’s policies.
Advice in Such Cases
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 to 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.
Document all communications with the service provider including cancellation requests, terms and conditions, and service agreements. File a formal complaint with the consumer forum within the prescribed time limit. Contact your bank or financing company to dispute unauthorized EMI deductions. Preserve evidence of partial service utilization and any adverse effects experienced.
Applicable Sections of Law
This case falls under multiple provisions of the Bharatiya Nyaya Sanhita (BNS). Section 316 deals with criminal breach of trust, applicable when service providers retain money for unrendered services. Section 318 covers cheating, relevant when businesses use deceptive practices regarding EMI cancellation policies. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), Section 154 allows filing of cognizable complaints for fraudulent business practices. The Consumer Protection Act, 2019, provides additional remedies for unfair trade practices and deficiency in services, making this a comprehensive legal matter requiring immediate attention.
Relevant Legal Precedents
Indian courts have consistently held that service providers cannot retain payment for unrendered services, establishing the principle of proportionate refund for partially utilized services. The Supreme Court has ruled that cooling-off periods mentioned in agreements must be honored, and EMI arrangements cannot be used to circumvent consumer rights. Various High Courts have determined that financing arrangements cannot override fundamental consumer protection rights. These precedents strengthen cases where consumers seek refunds for unused services.
If you need specific judgement references for your case, you can contact Adv. Sudhir Rao on his helpline numbers for detailed legal research and citations.
If You Are the Complainant
Gather all documentation including service agreements, payment receipts, and correspondence with the service provider. File a complaint with the appropriate consumer forum based on the transaction amount – District Forum for amounts up to Rs. 1 crore. Send a legal notice demanding refund of unused services and EMI cancellation within 15 days. Contact the financing company separately to explain the situation and request EMI suspension. Document any adverse effects or deficiency in services experienced. Maintain detailed records of all financial transactions and attempted resolutions through the service provider’s grievance mechanism.
If You Are the Victim
Immediately stop making EMI payments and inform your bank about the dispute in writing. File a complaint with the consumer forum seeking compensation for unused services, mental harassment, and legal costs. Report the matter to local police if the service provider is using threatening language or unfair means for collection. Contact consumer helplines and register complaints with relevant regulatory authorities. Seek medical documentation if you experienced any adverse effects from the partial services received. Consider joining with other affected customers if this appears to be a pattern of unfair business practice.
How the Police Behave in Such Cases
Police typically treat such matters as civil disputes initially and may suggest approaching consumer forums or civil courts. However, if there’s evidence of deliberate cheating, fraud, or criminal breach of trust, they are obligated to register an FIR under relevant BNS sections. Police response improves significantly when complaints involve multiple victims or systematic fraudulent practices. Documentation of threats or harassment by collection agents can lead to immediate police action under appropriate sections.
FAQs People Normally Have
Can EMI be cancelled for unused services? Yes, you have the right to proportionate refund for unused services, and EMI should be adjusted accordingly.
What if the agreement says EMI is non-cancellable? Such clauses are unfair trade practices and can be challenged in consumer forums as they violate consumer protection laws.
How long does consumer forum proceedings take? District forums typically resolve cases within 3-5 months, though complex cases may take longer.
Can I stop EMI payments immediately? Yes, but inform your bank in writing about the dispute to avoid credit score impact while the matter is being resolved.
What Evidence Is Required?
- Original service agreement and terms and conditions
- Payment receipts and EMI documentation
- Correspondence regarding service cancellation
- Medical reports if adverse effects occurred
- Bank statements showing EMI deductions
- Photographs or documentation of services received
- Witness statements from accompanying persons
How Long Will the Investigation Take?
Consumer forum complaints typically get resolved within 3-6 months for straightforward cases. Police investigations, if criminal charges are filed, may take 6-12 months depending on the complexity and cooperation from all parties. The timeline can be accelerated with proper documentation and legal representation. EMI suspension from banks usually happens within 2-4 weeks of formal dispute filing.
Advocate Sudhir Rao, Supreme Court of India