If you are stuck in such a situation, here is what to do.

Mr. Verma, a resident of a bustling neighbourhood in Aravalli Nagar, commissioned a local artisan from ‘Heritage Woodcrafts’ to build a custom wardrobe and a matching study table for his new apartment. The artisan was recommended by a close friend who had previously praised his craftsmanship. An agreement was made, and Mr. Verma paid an advance of ₹50,000, which was approximately 75% of the total cost, with the balance due upon delivery. The promised delivery timeline was three weeks.

However, the deadline passed with no sign of the furniture. It has now been several months, and each time Mr. Verma contacts the artisan, he is met with a new excuse. The reasons range from a sudden shortage of skilled labour to unexpected delays in procuring raw materials and even disruptions caused by seasonal changes. Recently, Mr. Verma noticed that the artisan was posting online about selling off his workshop machinery and some existing furniture pieces, raising concerns about his financial stability and intention to complete the order. When confronted, the artisan claimed he was merely selling old equipment and clearing out surplus stock unrelated to Mr. Verma’s project. Feeling helpless, Mr. Verma is now seeking clarity on his legal rights and the best course of action to either recover his money or get the furniture he paid for.

Advice in such cases

When you find yourself in a situation where a service provider or vendor has taken an advance payment but failed to deliver the goods or services as promised, it can be frustrating. Here is a structured approach to handle it:

• Gather All Documentation: Collect all proofs of the transaction. This includes any written agreement, quotation, invoices, bank transaction details, screenshots of online payments, and all communication records like WhatsApp chats, SMS messages, or emails exchanged with the person.
• Send a Formal Communication: Before escalating the matter, send a final written communication, preferably through a trackable method like registered post or email. Clearly state the terms of the agreement, the amount paid, the failure to deliver, and give a final, reasonable deadline (e.g., 7-10 days) to either deliver the furniture or refund the entire advance amount. Mention that failure to comply will result in legal action.
• Send a Legal Notice: If the formal communication yields no result, the next step is to have a lawyer draft and send a formal Legal Notice. A legal notice is a formal intimation that you intend to initiate legal proceedings. It often puts pressure on the other party to settle the matter to avoid litigation.
• Explore Mediation: Sometimes, a neutral third party can help resolve the dispute without going to court. However, this is only effective if both parties are willing to participate in good faith.
• File a Complaint: If the matter is still not resolved, you have the option to file a police complaint for criminal breach of trust and cheating, or a complaint in the Consumer Forum for deficiency in service.
• 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

This situation involves elements of both civil and criminal law under the new Indian legal framework.

• Section 316 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section deals with Criminal Breach of Trust. For this to apply, it must be shown that you ‘entrusted’ your money to the artisan for a specific purpose (to build furniture) and that he dishonestly misappropriated or converted that money for his own use, or willfully allowed someone else to do so, in violation of your trust and the legal contract. The artisan’s failure to deliver the goods and potential sale of his assets could be used to argue dishonest intent.
• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section pertains to Cheating. To invoke this, you would need to prove that the artisan had a dishonest intention to deceive you from the very beginning of the agreement. If it can be shown that he took your money with no intention of ever delivering the furniture, it constitutes cheating.
• The Consumer Protection Act, 2019: Since you paid for goods (furniture) that were not delivered, this is a clear case of ‘deficiency in service’ and potentially an ‘unfair trade practice’. You can file a complaint before the appropriate District Consumer Disputes Redressal Commission. The consumer courts are known for speedier resolution and can order the delivery of goods, a full refund with interest, and compensation for the harassment and mental agony suffered.

If you are the complainant

If you have decided to take action as the complainant who has been wronged, follow these steps:

• Organize Your Evidence: Create a file with all payment proofs, communication records, the artisan’s details (name, address, phone number), and any witness information.
• Draft a Complaint: With the help of your lawyer, draft a detailed complaint. If approaching the police, the complaint should clearly outline the facts and highlight the elements of entrustment and dishonest intent to make a case for an FIR under BNS sections.
• Approaching the Police: Visit the police station that has jurisdiction over the area where the transaction took place or where the artisan operates. Submit your written complaint to the officer in charge. If they are hesitant to file an FIR, you have the right to send the complaint to the Superintendent of Police (SP) via registered post.
• Filing a Consumer Complaint: This can often be a more effective and faster route. You can file the complaint online or offline with the District Consumer Commission. The process is less formal than a criminal case.
• Follow Up: Whether it’s a police case or a consumer complaint, regular follow-up is essential to ensure your case is progressing.
• 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

As the victim in this scenario, your primary goal is to mitigate your loss and seek justice. Your actions should be methodical and legally sound.

• Do Not Engage in Aggression: Avoid getting into heated arguments, threats, or any form of aggression with the artisan. Keep all further communication formal and documented.
• Secure Digital Evidence: Take screenshots of all relevant chats and online activities, like the artisan’s posts about selling his machinery. Back up this evidence in multiple places.
• Act Promptly: Delays can weaken your case. The sooner you send a legal notice and initiate proceedings, the higher the chances of a favourable outcome.
• Choose the Right Forum: Your lawyer will help you decide the best legal path. A consumer complaint is often ideal for recovering money and getting compensation. A criminal complaint is more serious and aims to penalize the wrongdoer for their criminal actions. Both can sometimes be pursued simultaneously.
• 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

Often, the police may initially be reluctant to register a First Information Report (FIR) in such matters. They might perceive the issue as a ‘civil dispute’—a mere breach of contract—rather than a criminal offense. They may advise you to go to court and file a civil suit for recovery of money. This is because the line between a simple contractual failure and a criminal act like cheating can be thin. The police look for clear evidence of ‘dishonest intention’ from the outset. However, if your complaint, drafted with a lawyer’s help, clearly establishes the elements of criminal breach of trust or cheating, they are obligated to register an FIR and investigate under the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).

FAQs people normally have

What evidence is required?

Strong evidence is the backbone of any legal case. For a situation like this, you must secure:

• Proof of Payment: Bank statements, UPI transaction receipts, a copy of the cashed cheque, or a signed cash receipt.
• Proof of Agreement: Any written contract, quotation, or even detailed WhatsApp/email chats confirming the order, specifications, price, and delivery timeline.
• Communication Records: All SMS, WhatsApp chats, call recordings (if legally permissible in your state), and emails where you have followed up and where the artisan has given excuses.
• Evidence of Dishonest Intent: Screenshots of the artisan selling his equipment can be used to suggest he had no intention or capability to finish your work.
• Witnesses: If a friend or family member was present when the deal was made, their testimony can be valuable.

How long will the investigation take?

The duration varies significantly based on the legal path you choose.

• Police Investigation: After an FIR is filed, the police investigation under the BNSS is supposed to be completed in a timely manner, but it can often take several months due to workload and procedural requirements.
• Consumer Court: The Consumer Protection Act, 2019, mandates a speedier process. A complaint is expected to be decided within 3 to 5 months if no complex analysis is required. However, practical delays can extend this period.
• Legal Notice: The immediate effect of a legal notice can sometimes be seen within 15-30 days, as the other party may choose to settle the matter immediately upon receiving it.

Advocate Sudhir Rao, Supreme Court of India