Furniture Rental Company Claims No Active Order But Never Collected Items — What Are Your Legal Rights?

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.

Rohan Mehta, a software professional based in Indore, had rented furniture from a well-known subscription-based furniture rental company called HomStyle Rentals around early 2021. When he vacated his rented flat in Gomti Nagar, Indore, around March 2022, he called the company's customer care and verbally informed them about cancellation and the need for furniture pickup. He left the furniture at the premises with his landlord for collection. After that, the rental subscription simply vanished from his account — no invoices, no active order, nothing visible in the app.

Nearly two years later, Rohan logged back into the platform and noticed that customer support via chat confirmed there was "no active rental order" linked to his profile. But the furniture, as far as he knew, had never actually been collected. He was deeply worried. Could HomStyle Rentals suddenly raise a demand for years of unpaid dues, penalties, or damages? He had no email record of his 2022 cancellation request — only a phone call. He tried reaching out through the app chat multiple times but received only generic, non-committal responses. A general legal consultation he had earlier hadn't produced any concrete strategy or written resolution.

That's when Rohan came to us. The approach taken was methodical — a formal legal notice under the Consumer Protection Act, 2019, was sent to HomStyle Rentals' registered office, demanding written confirmation that no dues existed, along with a scheduled pickup of the furniture. The notice cited the company's own customer service acknowledgement of "no active order" and framed the continuing possession of un-collected goods as a deficiency in service. Within three weeks of the notice, the company responded in writing, confirmed zero outstanding dues, and arranged a pickup. The matter was resolved without filing a complaint at the Consumer Forum, though one had been fully prepared in parallel. Rohan was relieved — and protected.

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.

Send a Formal Legal Notice Immediately: Don't rely on app chat or phone calls. A written legal notice sent via registered post or speed post to the company's registered address creates a paper trail that can be used as evidence later. It signals seriousness and often prompts companies to respond within a defined timeframe.

Preserve Every Communication: Screenshot every chat conversation, save every call log with timestamps, and retain any email or SMS from the company. And here's the thing — even a chat message from their support saying "no active order exists" is a valuable piece of evidence that works in your favour. Don't delete anything.

File a Consumer Complaint if Not Resolved: If the company doesn't respond to the legal notice satisfactorily, a complaint before the District Consumer Disputes Redressal Commission is a practical, cost-effective remedy. Consumer law matters of this nature involve specific procedural timelines and evidentiary requirements that a general practitioner may not be fully familiar with, so engaging an advocate who regularly handles consumer and contractual disputes typically leads to faster and more decisive outcomes.

Applicable Sections of Law

This matter falls squarely within civil and consumer law. The following provisions are directly applicable:

• Section 2(11) and Section 35, Consumer Protection Act, 2019: Define "deficiency in service" and provide the right to file a complaint before the District Consumer Disputes Redressal Commission for failure to perform a contractual obligation, including pickup of rented goods.
• Section 73, Indian Contract Act, 1872: Entitles the aggrieved party to claim compensation for loss caused by breach of contract — including failure to honour a cancellation request and collect goods.
• Section 55, Indian Contract Act, 1872: Addresses failure to perform a contract within the agreed or reasonable time, which is directly relevant where a company fails to arrange pickup after notice.
• Order 7 Rule 1, Code of Civil Procedure, 1908: Governs the filing of a civil suit for declaration and injunction if a company later attempts to raise unjustified dues or claims — providing a framework to seek a declaratory decree that no dues are owed.

Jurisdiction — Where to File the Case

Jurisdiction matters. For consumer complaints under the Consumer Protection Act, 2019, the pecuniary jurisdiction is key. If the value of goods and compensation claimed is up to Rs. 50 lakhs, the complaint is filed before the District Consumer Disputes Redressal Commission of the district where the complainant resides or the service was availed. In this type of case, that would be the District Commission in Indore. If the claim exceeds Rs. 50 lakhs, it goes to the State Commission. Getting jurisdiction right from the start matters — a filing in the wrong forum wastes months and can be dismissed at threshold. Now, before you act, confirm the company's registered office address independently through the MCA21 portal. Don't rely on their website alone.

Limitation Period

Don't wait. Under the Limitation Act, 1963, a consumer complaint must be filed within two years from the date on which the cause of action arises (Section 24A, Consumer Protection Act, 2019). Here, the cause of action could be treated as continuing — since the company has neither collected the goods nor issued a formal no-dues certificate. That said, the clock can be counted from the last service interaction or the date of oral cancellation notice. Courts can condone delay under Section 5, Limitation Act, 1963, if sufficient cause is shown, but relying on that is risky. Act promptly.

Interim Reliefs Available

In a civil suit before the District Court, the following interim reliefs are available and worth considering:

• Temporary injunction under Order 39 Rules 1 and 2, CPC: To restrain the company from raising any demand, creating any liability, or reporting dues against the complainant while the matter is sub judice.
• Status quo order: Courts can direct that the existing state of affairs — no active dues, no penalty accrual — be maintained until final disposal.
• Declaratory relief under Section 34, Specific Relief Act, 1963: Seeking a declaration that the rental agreement stands terminated and no dues are owed, based on the company's own acknowledgement via customer support.

Frankly, applying early for interim relief secures your position and prevents the company from manufacturing retroactive claims during the pendency of proceedings. It's a step many people skip, and they regret it later.

If You Are the Victim

• Document everything immediately: Take screenshots of the company's app or website showing "no active order," save all chat transcripts, and photograph the furniture still on the premises with a date-stamped image if possible.
• Obtain a written statement from your landlord: If the furniture is still at your former residence, get a signed letter from the landlord confirming the goods were left for pickup and were never collected.
• Send a legal notice via registered post: Address it to the company's registered office and demand written no-dues confirmation and a confirmed pickup date within 15 days.
• Preserve your call records: Even without a recording, telecom call detail records showing you called the company's customer care number on a specific date can corroborate your cancellation request.
• Do not make any new payments: Paying any amount without a proper written settlement agreement can be construed as an acknowledgement of an ongoing obligation.

Documents You Must Keep Ready

• Aadhaar card and PAN card (identity proof)
• Original rental agreement or subscription confirmation email
• Invoices or payment receipts from the rental period
• Screenshots of app/website showing "no active order" message
• Chat transcripts with customer support
• Call logs showing calls made to customer care around the cancellation date
• Any email or SMS correspondence with the company
• Written statement or letter from the landlord confirming furniture was left for pickup

What Evidence Is Required?

• Digital chat transcript (primary evidence): Customer support's own statement that "no active rental order" is linked to your profile is direct, party-admission evidence — highly valuable.
• Call detail records from telecom provider: Shows calls were made to the company's customer care number on or around the date of oral cancellation. Secondary but corroborative.
• Rental agreement: Establishes the original contractual relationship, the obligations of both parties, and the terms around cancellation and pickup.
• Account screenshot showing no invoices: Demonstrates that the company itself treated the subscription as terminated at some point.
• Landlord's affidavit or letter: Confirms physical possession of the furniture at the former address and the fact that no pickup was made.
• Date-stamped photographs: Visual evidence of the furniture's continued presence at the premises, if accessible.

How Courts Typically Approach Such Cases

Consumer forums in India take a practical view in service deficiency cases. Where a company's own records or customer support communications contradict a subsequent demand for dues, courts generally treat that as an admission against interest. Make no mistake, this is a well-settled principle. In cases like LG Electronics India Pvt. Ltd. v. Vijay Raghavan, NCDRC 2018, consumer forums have consistently held that a company cannot approbate and reprobate — it cannot acknowledge no active obligation and then raise a belated demand. Courts also look at whether the consumer took reasonable steps to notify the company. A phone call followed by a legal notice, even without email, can satisfy that standard, particularly where the company's own system reflects no active order.

Timeline of Legal Process

• Week 1-2: Consult advocate, gather documents, send formal legal notice via registered post to company's registered office.
• Week 3-6: Await company's response to legal notice (typically 15-30 days). Many matters, like this one, resolve at this stage.
• Month 2: If no satisfactory response, draft and file consumer complaint before District Consumer Disputes Redressal Commission. Pay court fee (fixed nominal fee for consumer matters).
• Month 2-3: Commission admits complaint, issues notice to the company (opposite party). Company files written version.
• Month 4-6: Evidence stage — complainant files affidavit evidence; company may cross-examine.
• Month 6-9: Arguments. Commission passes order.
• Post-Order: If order is favourable, execution proceedings if company does not comply. If unfavourable, appeal lies to State Commission within 45 days.
• Overall timeline: 6 to 18 months depending on commission's workload and cooperation of opposite party.

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

Can the Matter Be Settled Out of Court?

Yes — and in many cases, that's the most efficient path. A well-drafted legal notice alone often prompts companies to issue written no-dues confirmations and arrange pickup without any litigation. If the notice doesn't work, Section 89 of the Code of Civil Procedure, 1908, empowers courts to refer disputes to mediation or conciliation before full trial. Consumer forums also have pre-litigation mediation cells in several districts. A Lok Adalat can take up the matter if both parties consent, and an award passed by a Lok Adalat has the status of a court decree, which is final and binding and cannot be appealed. And here's why settlement makes sense in a case like this — the company's own admission of "no active order" gives you significant negotiating strength at the table. Use it.

Common Mistakes People Make

• Relying solely on verbal communication: Informing a company about cancellation only by phone, without following up in writing via email or registered letter, leaves you without documentary proof. Always confirm verbal instructions in writing.
• Waiting too long before acting: Sitting on the matter for years while hoping the company forgets creates a risk that limitation periods may expire or that the company builds a paper trail of its own.
• Making partial payments without a written settlement: Paying any amount, even a small one, without a signed settlement agreement can be treated as an acknowledgement of continuing liability.
• Discarding old rental documents and app screenshots: People delete old apps and emails routinely. But in a dispute, those records become evidence. Preserve them.

Advocate Sudhir Rao, Supreme Court of India