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: If a seller has accepted your cancellation and confirmed it on the app, keeping the money after that is a deficiency in service under the Consumer Protection Act, 2019. "Payment is blocked" is an internal problem between the seller and its payment gateway, not a defence you have to accept. Escalate to the National Consumer Helpline, then file before the District Consumer Disputes Redressal Commission where you live, claiming the refund plus interest and costs.
Rohit Malhotra ordered two watches on Myntra on 12 March 2025. Twenty-two thousand rupees each. He cancelled both within the hour and the app showed the cancellations as accepted. Then nothing.
Twelve days later he called customer care. The refund, he was told, was blocked and there was nothing they could do about it. Wait three days. Chat support, reached the same afternoon, said the same three days. He tagged the company on X, sent two emails, and got silence back.
That is when he approached the Chamber of Advocate Sudhir Rao. On the facts, this was never a payment failure. Once a cancellation is accepted and confirmed, the money is due, and a two-line stock reply does not change that. A legal notice went out under the Consumer Protection Act, 2019, and when it went unanswered, a complaint was filed before the District Consumer Disputes Redressal Commission at Pune.
Advocate Sudhir Rao and his office argued that the platform had accepted the cancellation, withheld ₹44,000, and offered no reason beyond the same script. The Commission directed the refund with interest and costs. Advocate Sudhir Rao's specialised handling of consumer matters helped secure the order in favour of the client.
Key Facts of the Case
- Two watches, ₹22,000 each, ordered on Myntra on 12 March 2025 and cancelled the same day.
- Both cancellations were accepted and shown as confirmed on the platform itself.
- Customer care and chat support gave a standard "wait three days" reply on 24 March 2025. No refund followed.
- Posts on X and emails went unanswered.
- The buyer had paid in full, received no product, and held no refund.
- A legal notice under the Consumer Protection Act, 2019 preceded the complaint.
- The complaint was filed before the District Consumer Disputes Redressal Commission at Pune, the amount being well within the District Commission's pecuniary limit.
- The Commission found deficiency in service and directed refund with interest and costs.
The Direct Legal Answer
Can an online store block my online order refund after accepting cancellation?
No. Once the seller or the marketplace accepts your cancellation and confirms it, that sale is finished. Holding on to the money afterwards is a deficiency in service under Section 2(11) of the Consumer Protection Act, 2019. A blocked payment is an internal matter between the seller and its payment partner. It isn't your problem, and it isn't a defence.
What should I do first?
Keep everything. Order confirmation, cancellation confirmation, screenshots of the chat, the complaint number if you raised one, and your bank or card statement. Then escalate in writing: grievance officer first, National Consumer Helpline next, legal notice after that.
Is it worth going to a consumer commission over ₹44,000?
Usually, yes. The District Commission handles claims up to ₹50 lakh, the filing fee is nominal, and you don't have to travel to the seller's city. You can file where you live.
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.
Put the complaint in writing and keep a copy. Phone calls leave no trail, and customer care scripts are designed to run out the clock.
Send one clear legal notice with proof of delivery rather than five angry emails. One notice that says exactly what you want and by when is worth more.
Matters like this turn on procedural detail, how the complaint is drafted, which reliefs are asked for, and how the platform's own refund policy is used against it. A general practitioner may not track those nuances. An advocate who handles consumer matters regularly usually gets to a faster and cleaner result.
Applicable Sections of Law
- Section 2(11), Consumer Protection Act, 2019 defines "deficiency", which covers the failure to refund money that has become due.
- Section 2(47), Consumer Protection Act, 2019 defines "unfair trade practice", which can cover misleading refund assurances.
- Section 35, Consumer Protection Act, 2019 sets out who may file a complaint and before which commission.
- Section 39, Consumer Protection Act, 2019 lists the reliefs a District Commission can grant, including refund and compensation.
- Section 69, Consumer Protection Act, 2019 sets a two-year limitation, with power to condone delay for sufficient cause.
- Section 73, Indian Contract Act, 1872 covers compensation for loss caused by breach of contract.
- The Consumer Protection (E-Commerce) Rules, 2020 require e-commerce entities to provide a grievance mechanism and clear refund timelines.
Jurisdiction — Where to File the Case
For an amount of ₹44,000, the District Consumer Disputes Redressal Commission is the right forum. Under the jurisdiction rules framed under the 2019 Act, the District Commission hears matters up to ₹50 lakh, the State Commission above that up to ₹2 crore, and the National Commission beyond.
On territory, Section 34(2) of the Act lets you file where the opposite party has an office or carries on business, or where you reside or personally work for gain. That last limb is what most buyers use. Complaints can be filed online through the e-daakhil portal, and hearings are now often held by video conference.
Limitation Period
Section 69 of the Consumer Protection Act, 2019 gives you two years from the date the cause of action arises. In a refund case, that date is usually when the refund became due and was refused. Don't wait for the platform to tire itself out. The clock is running from the refusal, not from the last time you called.
Missing the two-year window is serious, though not always fatal. The proviso to Section 69 allows the Commission to condone delay if you can show sufficient cause. That is an argument, not a right, so treat the two years as a hard outer line.
Interim Reliefs Available
Consumer commissions follow a summary procedure, and they can pass interim directions while a complaint is pending, including a direction to deposit the disputed amount or to maintain status quo. Ask for it in the complaint itself; don't assume it will come up on its own.
If a parallel civil suit becomes necessary, Order 39 of the Code of Civil Procedure, 1908 allows a temporary injunction, and Order 38 allows attachment before judgment where there is reason to believe the opposite party may dispose of assets to defeat a decree. In practice, the consumer route is quicker and cheaper for a refund claim of this size. Interim protection matters early, because by the time a final order arrives, the money may already have moved.
If You Are the Victim
- Write to the grievance officer of the platform and keep the acknowledgement.
- Register a complaint on the National Consumer Helpline and note the complaint number.
- Do not accept store credit or a voucher in place of a refund unless you actually want it.
- Send a legal notice demanding the amount with interest, giving a clear deadline.
- File before the District Commission where you live if the deadline passes with no payment.
Documents You Must Keep Ready
- Identity proof such as
- Identity proof such as Aadhaar, PAN or passport.
- Order confirmation email or SMS showing the order number, date and amount paid.
- Screenshots of the cancellation, including the screen where the cancellation was shown as accepted. Take these from inside the app while the order page is still visible.
- The bank or card statement or UPI record showing the debit and, more importantly, showing that no credit came back.
- Screenshots or exports of the chat with customer support, and the emails you sent.
- The complaint number from the National Consumer Helpline, if you registered one.
- Copy of the legal notice with the postal or courier proof of delivery.
- The acknowledgement or reply, if any, to that notice.
Save the chat transcripts as PDFs, not as photos of a phone screen. Commissions read files more easily than images, and a clean PDF is harder to dispute.
How the Complaint Moves
- Drafting. The complaint sets out the facts, the deficiency, the reliefs and the list of documents, and is supported by an affidavit. Along with it goes an application for condonation of delay if you are past two years, and a separate application if you want interim directions.
- Filing. Either online through the e-daakhil portal or over the counter. The prescribed fee for a claim of this size is nominal; check the current schedule under the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020, since it changes with the claim value.
- Admission and notice. The Commission admits the complaint and issues notice to the opposite party, who then files a written version. Under the Act, the opposite party is expected to file within thirty days, extendable by another fifteen on reasons recorded in writing.
- Evidence by affidavit. Both sides file affidavits of evidence rather than examining witnesses in person, unless the Commission orders otherwise.
- Arguments and order. Section 38 of the Act requires the District Commission to follow a summary procedure and directs it to endeavour to decide the complaint within three months where no testing or expert analysis is needed, and within five months where it is. Those are targets, not guarantees. In practice a contested refund complaint can run well past a year, and an uncontested one that ends in an ex parte order often moves faster.
Hearings in many District Commissions now happen by video conference. You do not have to be physically present at every date, though you should have an advocate or a representative who is.
What the Commission Can Order
Under Section 39 of the Act, the District Commission can direct the opposite party to return the money with interest, to pay compensation for the loss and the mental agony caused, and to pay the cost of the proceedings. It can also order the party to discontinue the unfair practice and to correct a misleading representation.
There is no fixed rate of interest written into the Act. Commissions tend to award something in the region of the prevailing bank rate on the amount withheld, and the figure varies from state to state and bench to bench. Ask for a specific rate in the complaint and give reasons for it; asking for "interest as the Commission deems fit" invites a low number.
Frequently Asked Questions
Can the seller keep saying the online order refund is blocked by the payment gateway?
They can say it. It doesn't help them. The gateway is the seller's own service provider, engaged and paid by the seller. A failure on that side is a failure in the seller's own chain, and the Consumer Protection (E-Commerce) Rules, 2020 require e-commerce entities to maintain a grievance mechanism and to effect refunds within the timelines stated in their own policy. If the seller's policy says refunds within seven working days, that is the standard it will be measured against.
Do I have to travel to Bengaluru or Delhi to file?
Not for this. Section 34(2) of the Act allows the complaint to be filed where you reside or personally work for gain. A buyer in Pune, Kochi or Guwahati can file at the District Commission covering their own address.
Do I need a lawyer for a consumer complaint?
You are entitled to appear in person. For a straightforward refund claim with clean screenshots, many people do. Where the opposite party turns up with counsel, disputes the documents, or drags the matter into evidence, a complaint drafted and argued properly saves more than it costs. Get a consultation first and decide after that.
What if they offer a coupon or store credit instead of a refund?
Don't take it unless you genuinely want to buy from them again. Once you accept store credit, the claim to your money weakens considerably. A refund is what you are owed; a voucher is a substitute that shifts the loss to you, because the value is only real if you keep using the platform.
Can I just do a chargeback through my bank?
You can try, and it sometimes works, particularly on a credit card. But a chargeback is not a legal remedy and the bank can decline it. Raising one does not stop the two-year clock under Section 69 of the Consumer Protection Act, 2019, so keep the consumer route open while you wait for the bank.
What is the limitation period for a refund complaint?
Two years from the date the cause of action arises, which for a refund is normally the date the refund became due and was refused. If the platform keeps promising "three more days" and you keep waiting, the clock is still running. The Commission has power to condone delay for sufficient cause under the proviso to Section 69, but treat that as a fallback, not a plan.
What does it cost in time and money?
The filing fee is small for a claim under ₹5 lakh. The real cost is the waiting, plus whatever you pay your advocate. If the opposite party never appears, the matter can end in an ex parte order fairly quickly. If it contests, expect the better part of a year or more. On these facts there may be little to argue if your own screenshots show the cancellation was not actually accepted, or if you received the product and are now disputing quality — those are different cases with different answers.
Next Step
If a seller has accepted your cancellation and is still holding your money, send a short note with the order number, the date of cancellation, a screenshot of the accepted cancellation, and the stock reply you received. Two lines is enough to start. You can write through our contact page or book a consultation.
You can also reach the chamber at Lawyers' Chamber, Chamber No. 86, Supreme Court of India, New Delhi - 110001, by phone on +91 97295 06771, or by email at me@sudhirrao.com. On the consumer side, Advocate Sudhir Rao handles refund and deficiency matters; Adv. Jyoti Rao, an associate enrolled with the Bar Council of Delhi, handles family and matrimonial work.
This article is general information about Indian law and is not legal advice on your own situation. Outcomes depend on the facts and the evidence, and no result is promised.
Advocate Sudhir Rao, Supreme Court of India