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.
TL;DR: When a company admits a refund is due but keeps delaying payment, you have a strong consumer case. You can claim interest on the delayed amount, compensation for mental harassment, and litigation costs. Their insistence that you withdraw a consumer grievance before they pay can also amount to an unfair trade practice.
Vikram Mehta, a professional from Pune, purchased a holiday membership from Sterling Holidays in October 2024 for ₹2,52,000. He cancelled within a week. No services had been used. The company insisted on a 32% deduction under their cancellation clause. He accepted it reluctantly, and Sterling Holidays confirmed in writing that the refundable amount was ₹1,71,360, due by 15 March 2025. That date passed. Then the company blamed banking issues, internal delays — always a new reason. They later proposed to refund in six monthly installments. Vikram agreed, hoping for closure. But then came a strange demand: they wouldn’t pay a single rupee unless he first withdrew his National Consumer Helpline grievance and a bank dispute. He refused. After months of back-and-forth and multiple broken promises, the last promised installment date — 27 July 2025 — also passed. No money ever arrived. Earlier, Vikram had tried handling the matter himself through emails and a general consumer helpline, but the company kept stringing him along. Frustrated, he approached the Chamber of Advocate Sudhir Rao, known for his deep experience in consumer disputes. Advocate Sudhir Rao’s office promptly filed a complaint before the Pune District Consumer Disputes Redressal Commission, arguing that the repeated broken commitments constituted deficiency in service and an unfair trade practice. The Commission, after hearing both sides, directed Sterling Holidays to refund the entire admitted amount with 9% interest from the original due date, plus ₹30,000 as compensation for mental harassment and litigation costs. The matter was resolved in the client’s favour.Key Facts of the Case
- Client purchased a holiday membership for ₹2,52,000 and cancelled within a week without availing any benefits.
- Company admitted a refund of ₹1,71,360 after a 32% deduction and confirmed it in writing.
- Refund was promised within 90 days, but the company missed several self-declared deadlines.
- They agreed to six installments but refused to pay unless the consumer withdrew his NCH complaint and bank dispute.
- After the NCH grievance was disposed of, the company still failed to make any payment.
- Email chains, written commitments, and the “withdraw grievance first” demand were preserved as evidence.
- The consumer commission treated the series of delays and the coercive demand as both deficiency in service and unfair trade practice.
The Direct Legal Answer
Is this a strong case before the Consumer Commission?
Yes. Written admissions from the company that they owe you a specific amount, along with repeated broken promises, make a powerful consumer complaint. The delay itself constitutes deficiency in service under the Consumer Protection Act, 2019. And here’s the thing — when a company admits liability but refuses to pay, the commission rarely needs to dig deep into factual disputes.
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.
Does their insistence on withdrawing the consumer grievance before processing the refund amount to an unfair trade practice?
Absolutely. Forcing a consumer to abandon a legal remedy as a precondition for receiving a legitimate refund is a coercive practice. It falls squarely within the definition of “unfair trade practice” under Section 2(47) of the Consumer Protection Act, 2019. The commission can take serious note of such behaviour and often awards higher compensation to deter it.
Is there anything else I should include in my complaint?
Preserve every email, SMS, and call recording where they admit the refund, set deadlines, and ask you to withdraw complaints. Also keep your bank dispute records and the NCH complaint disposal order. All of this helps you establish a pattern of delaying tactics.
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.
Don’t wait for the company’s next promise — each new deadline they miss builds your case, but also prolongs your loss. File your complaint as soon as the cause of action crystallises. Also, keep a chronological timeline of events with dates. That single document often becomes the backbone of your argument before the commission.
Consumer disputes involving service failures and coercive refund tactics benefit enormously from advocates who handle them day in, day out. Procedural nuances, the right kind of evidence, and drafting the complaint precisely are frequently missed by general practitioners — and that can slow things down. Engaging an advocate with domain-specific experience here usually gets you a faster, more effective resolution.
Applicable Sections of Law
- Consumer Protection Act, 2019, Section 2(11): Defines “deficiency” in service — includes any fault, imperfection, shortcoming, or inadequacy in the performance of a service.
- Consumer Protection Act, 2019, Section 2(47): Unfair trade practice — includes any practice that uses coercion, deception, or unfair methods to promote a service or impose conditions.
- Consumer Protection Act, 2019, Section 35: Powers of the District Commission to grant relief such as refund, compensation, costs, and interest.
- Consumer Protection Act, 2019, Section 69(1): Limitation — complaint must be filed within two years from the date the cause of action arises.
Jurisdiction — Where to File the Case
You can file the complaint before the District Consumer Disputes Redressal Commission if the value of goods or services and the compensation claimed does not exceed ₹1 crore. For amounts above that up to ₹10 crore, the State Commission, and beyond that, the National Commission. Territorial jurisdiction lies where the opposite party resides, carries on business, or where the cause of action arose — in this type of case, usually where you booked the membership or received the refund promise. Pecuniary and territorial jurisdiction matters a great deal; filing in the wrong forum can get your complaint returned, wasting months.
Limitation Period
Under Section 69(1) of the Consumer Protection Act, 2019, a complaint must be filed within two years from the date on which the cause of action arises. Here, the cause of action first arose when the refund became due and was not paid. Every subsequent broken promise gives you a fresh starting point. But waiting too long is risky. If the two-year window is missed, you can seek condonation of delay, but the commission will need a solid reason. Once limitation sets in and isn’t excused, the case can be dismissed outright.
Interim Reliefs Available
While consumer commissions are not courts of plenary civil jurisdiction, they can pass interim orders to protect your interest. If you have reason to believe the company may dispose of assets or wind up operations to avoid paying, you can seek an attachment before judgment analogous to Order 38 CPC. A status quo direction or an injunction restraining the company from alienating certain funds can also be requested. These interim measures are crucial early on — they prevent the opposite party from making the final order meaningless. Advocate Sudhir Rao often identifies such risks early and moves for interim relief at the time of filing.
How Courts Typically Approach Such Cases
Consumer commissions usually view admitted liability seriously. When the opposite party acknowledges the debt in writing but keeps postponing payment, the commission tends to treat it as a clear case of deficiency. They are less patient with companies that set conditions like withdrawing a complaint before paying. The focus quickly shifts to quantifying the harassment and awarding compensation. Expect the commission to press for a settlement or to pass an order expeditiously once they see the email admissions and the pattern of delays.
Timeline of Legal Process
- Notice before filing: Ideally send a legal notice giving 15-30 days to pay. Though not mandatory, it strengthens your position.
- Filing complaint: Preparation and drafting take a few days, then submission before the District Commission.
- Admission and notice: The commission examines the complaint, admits it if prima facie case exists, and issues notice to the opposite party — usually within 1-2 weeks.
- Written statement: Opposite party gets 30 days (extendable by 15 days) to file their reply.
- Evidence and arguments: Affidavit evidence and short arguments. This can take a few hearings over 2-4 months.
- Judgment: The commission usually pronounces order within a few weeks of concluding arguments. An appeal can be filed within 45 days.
Understanding the Costs
The total cost of pursuing a consumer complaint varies significantly from case to case. It depends on the complexity of the matter, the forum you approach, the number of hearings, and the specific factual matrix. A professional advocate can provide an accurate estimate only after reviewing all the facts and documents during a consultation. There is no one-size-fits-all figure, and it is best to discuss this directly with your lawyer before filing.
Can the Matter Be Settled Out of Court?
Yes, and consumer commissions actively encourage mediation. The forum can refer the matter to mediation at any stage under the Consumer Protection (Mediation) Rules, 2020. If the parties reach a settlement, the commission can pass a consent order reflecting the terms. Pre-litigation settlement is also possible through the National Consumer Helpline or private negotiation. But if the company has a history of breaking promises, settlement only works if you secure a time-bound, enforceable commitment — ideally with a clause that if they default, you can revive the complaint immediately.
Common Mistakes People Make
- Waiting endlessly for a refund: Every missed deadline isn’t a reason to give them more time — it’s evidence. Delay weakens your leverage.
- Accepting verbal assurances: Once a written promise exists, ignore phone calls that make new promises without a paper trail. Get everything in email.
- Withdrawing complaints without payment: Companies often promise to pay only if you withdraw grievances first. Don’t do it. That strips you of your only formal record.
- Not preserving the chain of emails and messages: Screenshots and forwarded emails are fine, but original inbox records are stronger. Back them up.
- Filing a generic complaint: A vague prayer for “refund” without interest or compensation gets a weaker order. Be specific about what you want and why.
- Engaging an advocate without domain-specific experience: Consumer law has its own rhythm — procedural deadlines, evidence rules, and relief structures. A general practitioner may not know that you can claim interim relief or push for an early hearing when admissions exist. That lack of nuance often prolongs the case and results in less favourable orders.
FAQs People Normally Have
Can I file the complaint myself without a lawyer?
You can, but given the procedural and drafting requirements, having an experienced consumer advocate significantly improves your chances — especially when the opposite party is a well-funded company.
What if the company doesn’t respond to the commission’s notice?
The commission can proceed ex-parte. It will examine your evidence and pass an order on merits. Ex-parte orders are enforceable just like contested orders.
Will I get the full ₹1,71,360 or only the 68% after deduction?
You are entitled only to the admitted refund amount unless you can prove the 32% deduction was itself illegal or unconscionable. Here, you had agreed to the deduction, so the claim is for the admitted amount plus interest and compensation.
How long until I actually receive payment after an order?
If the company doesn’t comply within the time given in the order, you’ll need to file an execution petition. That can take a few weeks to a couple of months, but the commission has coercive tools — including contempt proceedings — to enforce compliance.
Can I also file a criminal complaint?
This is primarily a civil consumer dispute. In extreme cases, if there is evidence of deliberate cheating from the very beginning, a criminal complaint under the BNS could be explored — but that’s rare in refund-delay scenarios and requires strong proof of dishonest intention at the time of contracting.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India