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 Gupta, a 29-year-old software professional from Indore, had relocated to Pune in early January 2025 for a short project assignment. He signed a three-month accommodation agreement with a well-known co-living operator, OYO Life, paying a security deposit of Rs. 5,000 at the time of joining. The agreement covered food, housekeeping, and basic amenities.
The reality was starkly different. Within the first two weeks, Rohan discovered severe bed bug infestations across his mattress and bedding. Food served in the common dining area was consistently below acceptable hygiene standards, and repeated verbal complaints to the facility manager produced no remedial action. By mid-February 2025, Rohan decided he could not continue living there and vacated the premises without serving a formal notice, forfeiting his security deposit in the process and leaving two months of the agreement unpaid.
About six weeks later, he received a legal notice demanding payment of Rs. 12,000 as outstanding dues, followed by a phone call reiterating the demand. Alarmed, Rohan initially sought advice from a local general practitioner who suggested he simply pay up to avoid litigation. That advice didn't sit right with him. He then approached Advocate Sudhir Rao, who recognised immediately that this was not a straightforward recovery dispute. The case involved a clear deficiency in service under the Consumer Protection Act, 2019, a breach of the underlying agreement, and the operator's failure to maintain habitable conditions. A well-structured reply notice was issued, asserting Rohan's counterclaims. The operator withdrew their demand shortly thereafter, and Rohan was not required to pay any further amount.
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.
Do not ignore the legal notice: Don't. Seriously. A well-drafted reply notice that documents the deficiency in service, the uninhabitable conditions, and the operator's breach of contract can effectively neutralise the demand and shift the burden back to the other party.
Preserve all evidence immediately: Photographs of bed bugs, written complaints (WhatsApp messages, emails), and any receipts or agreements must be secured before anything is deleted or lost. This evidence forms the foundation of both your defence and any counter-claim you may wish to pursue. And here's the thing — once you delete something, recovering it for use in formal proceedings is a painful, uncertain process.
Consider a consumer complaint: Matters involving deficient accommodation services fall squarely within the Consumer Protection Act, 2019. Filing a complaint before the District Consumer Disputes Redressal Commission can result in compensation for mental agony, refund of the security deposit, and costs. This type of matter involves procedural and evidentiary nuances, particularly around establishing "deficiency in service" under Section 2(11) of the Act, that advocates who regularly handle consumer disputes are significantly more familiar with.
Applicable Sections of Law
This matter is civil in nature, primarily governed by consumer protection and contract law. The relevant provisions are:
- Section 2(11), Consumer Protection Act, 2019 — defines "deficiency in service," which includes failure to maintain promised standards of accommodation and food.
- Section 35, Consumer Protection Act, 2019 — provides the right to file a complaint before the District Consumer Disputes Redressal Commission for deficiency in service.
- Section 73, Indian Contract Act, 1872 — entitles the aggrieved party to compensation for loss caused by the other party's breach of contract, applicable here because the operator failed to deliver the services agreed upon.
- Section 14, Specific Relief Act, 1963 — relevant where damages are the more appropriate remedy for breach of a service contract rather than specific performance.
Jurisdiction — Where to File the Case
For consumer complaints, the District Consumer Disputes Redressal Commission has pecuniary jurisdiction where the claim value does not exceed Rs. 50 lakh (Section 34, Consumer Protection Act, 2019). Territorial jurisdiction lies at the place where the service was to be rendered — in this type of case, the city where the PG accommodation was situated. Now, before you act, know this: choosing the right forum matters enormously. Filing before the wrong commission can result in dismissal on jurisdictional grounds, wasting both time and money. A civil suit for recovery or breach of contract would lie before the appropriate Civil Court having pecuniary jurisdiction under the CPC.
Limitation Period
Two years. That's your window for a consumer complaint, ordinarily, from the date on which the cause of action arose (Section 24A, Consumer Protection Act, 2019). The clock starts from the date the deficiency in service was first experienced or when the demand was raised. Missing this window can be fatal to the complaint, though condonation of delay is possible if sufficient cause is shown. For a civil suit based on breach of contract, the limitation period is three years from the date of breach under Article 55 of the First Schedule to the Limitation Act, 1963.
Interim Reliefs Available
In civil proceedings before the District Court, a party can seek interim reliefs to protect their position pending final adjudication. Attachment before judgment under Order 38, Rule 5 of the Code of Civil Procedure, 1908 is available where there's a real apprehension that the opposite party may dispose of assets to defeat a decree. Status quo orders can be sought to prevent adverse action during the pendency of proceedings. Before the Consumer Commission, interim relief in the form of a stay on any further recovery action can be sought at the threshold stage of the complaint. Securing such reliefs early prevents the dispute from escalating while the main matter is pending.
If You Are the Victim
- Document every deficiency immediately — photograph bed bugs, unhygienic food, broken facilities, and any structural problems in the accommodation.
- Send written complaints to the operator via WhatsApp or email, even if you've already raised verbal complaints, so there is a timestamped record of the issue being reported and ignored.
- Do not simply vacate quietly. Issue a short written communication (even a WhatsApp message) stating that you are vacating due to the uninhabitable conditions, preserving your ground that you left because of the operator's breach.
- Respond to any legal notice through a lawyer — a well-drafted reply that sets out your counterclaims can often resolve the matter without any further litigation.
- Explore filing a consumer complaint to recover your security deposit and claim compensation for the distress caused by the deficient services.
Documents You Must Keep Ready
- Aadhaar card and PAN card for identity verification
- Signed accommodation agreement or licence agreement with the PG operator
- Receipts or bank transaction records evidencing payment of security deposit
- Photographs and videos documenting the bed bug infestation and food quality issues
- WhatsApp messages, emails, or any written communications complaining about the conditions
- Copy of the legal notice received from the operator
- Any written reply you or your advocate has issued in response to the notice
- Bank statements showing any payment made to the operator
What Evidence Is Required?
- Photographic and video evidence: Timestamped photos and videos of bed bugs, food served, and premises condition constitute primary evidence of the deficiency.
- Written complaints: WhatsApp messages or emails sent to the operator or facility manager documenting complaints are critical secondary evidence showing the operator was aware of the problem and failed to act.
- Accommodation agreement: The signed contract establishes the services that were promised and the consideration paid — essential for establishing breach.
- Payment receipts: Proof of security deposit payment and any advance rent paid.
- Medical records (if applicable): If the bed bug infestation caused physical injury or skin conditions, a doctor's certificate strengthens the consumer complaint significantly.
- Witness statements: Statements from other residents of the same PG who experienced similar conditions can corroborate the account.
How Courts Typically Approach Such Cases
Consumer Commissions in India take a practical and consumer-friendly approach in accommodation and hospitality disputes. The Commission in Brigadier (Retd.) A.S. Sethi v. Hotel Ashoka, 2003 affirmed that service providers who charge consideration are held to the standard of services they promise. Where photographs and written complaints are available, Commissions generally look unfavourably at operators who failed to remedy reported deficiencies. Courts assess whether the resident had a reasonable opportunity to raise complaints, whether the operator responded, and whether continued occupation was practical. Make no mistake: an operator can't seek recovery of dues for a period during which the accommodation was demonstrably uninhabitable.
Timeline of Legal Process
- Reply to legal notice (Week 1-2): Issue a detailed reply notice through your advocate asserting deficiency in service and counterclaims.
- Filing consumer complaint (Week 2-4): Draft and file the complaint before the District Consumer Disputes Redressal Commission with supporting documents.
- Admission and notice to opposite party (Month 1-2): The Commission admits the complaint and issues notice to the operator. The operator files a written version.
- Evidence stage (Month 3-6): Both parties file their affidavits of evidence and supporting documents.
- Arguments (Month 6-9): Written and oral arguments before the Commission.
- Order (Month 9-14): The Commission passes its final order, which may direct refund, compensation, and costs.
- Appeal if needed (Month 14 onwards): Either party may appeal to the State Consumer Disputes Redressal Commission within 45 days of the order.
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?
Absolutely. And in most cases involving PG accommodation disputes of this value, settlement is the most efficient path. The parties can negotiate directly through their advocates to reach a compromise — the operator withdraws its demand, refunds the security deposit, and both parties execute a settlement deed. Under Section 89 of the Code of Civil Procedure, 1908, courts can also refer pending civil disputes to mediation or conciliation. Lok Adalats, constituted under the Legal Services Authorities Act, 1987, can take up pre-litigation matters and pass an award with the force of a civil court decree, at no filing cost to either party. A settlement reached at this stage saves time, costs, and the uncertainty of litigation.
Common Mistakes People Make
- Ignoring the legal notice entirely: A legal notice that goes unanswered can be used against you as evidence of admission. Always respond through a qualified advocate.
- Vacating without any written record: Leaving the premises without sending even a brief written communication stating the reason deprives you of documentary proof that the vacating was caused by the operator's breach, not your default.
- Deleting WhatsApp messages and photographs: Evidence of complaints and conditions must be preserved. Deleted messages are recoverable with effort but may not be admissible in the same form.
- Paying up under pressure without legal advice: Operators or their recovery agents sometimes use intimidating language. Paying without understanding your legal position can foreclose legitimate counterclaims you may have had.
- Posting details of the dispute on social media: Publishing accusations about the operator online, even if factually accurate, can expose you to a separate civil defamation claim and complicate your case.
- Engaging an advocate without relevant domain experience: Consumer and contract disputes involving service agreements require familiarity with specific procedural steps, including how to frame "deficiency in service" under Section 2(11) of the Consumer Protection Act, 2019, and how to lead photographic and digital evidence before a Consumer Commission. A general practitioner unfamiliar with this forum may miss these steps, weakening the case significantly.
Advocate Sudhir Rao, Supreme Court of India