Online Store Kept My Money for a Month, No Delivery, No Refund — What Indian Consumer Law Says

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 resident of Gomti Nagar, Lucknow, placed an order for three casual t-shirts through a small D2C fashion label operating out of its own website. The promised delivery window was 6 to 9 days. Around 18 March 2025, Rohan placed the order and paid in full online. The status sat at "Processed" for weeks. He tried Instagram DMs, WhatsApp messages, and multiple emails. Nothing came back — not even an automated acknowledgment.

By mid-April 2025, the brand unilaterally moved his paid amount into their internal site wallet, calling it a "refund." Rohan requested a bank account transfer. Forty-eight hours passed. Then another four days. No reply. When he tried to use the wallet credit to repurchase the same items, the products weren't even listed anymore. His money was trapped in a store wallet for a brand that no longer stocked what he had originally paid for.

Rohan had already filed a complaint on the National Consumer Helpline before approaching this office. That hadn't moved the needle. When he came to us, the approach shifted: a formal legal notice was issued under the Consumer Protection Act, 2019, citing unfair trade practice and deficiency in service, with a clear 15-day deadline. The brand responded within ten days and processed a full bank refund. Rohan had his money back — something weeks of messages hadn't achieved.

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 First: Before filing at a consumer forum, a properly drafted legal notice under the Consumer Protection Act, 2019 often produces faster results. Many brands settle at this stage to avoid formal proceedings. Don't rely only on social media DMs or helpline tickets — they carry no legal weight.

Document Everything Before You Act: Screenshot every order confirmation, payment receipt, status page, DM, and email thread. If the brand alters its website or removes products, archive those pages. Evidence gathered early is far more useful than evidence collected after a dispute heats up.

File at the Right Forum: Consumer disputes involving e-commerce platforms have specific procedural requirements under the Consumer Protection (E-Commerce) Rules, 2020. This category of case involves procedural and evidentiary nuances — timelines, proper party identification, the right cause of action — that a general practitioner may not be fully familiar with. Engaging an advocate who regularly handles consumer and e-commerce matters typically leads to faster resolution and better outcomes.

Applicable Sections of Law

• Section 2(11) — Consumer Protection Act, 2019: Defines "deficiency in service," which squarely covers non-delivery despite payment.
• Section 2(47) — Consumer Protection Act, 2019: Defines "unfair trade practice," covering forced store-wallet credits instead of genuine refunds.
• Section 35 — Consumer Protection Act, 2019: Enables a consumer to file a complaint before the District Consumer Disputes Redressal Commission for claims up to Rs. 50 lakhs.
• Rule 6 — Consumer Protection (E-Commerce) Rules, 2020: Mandates that e-commerce entities provide a clear refund mechanism and respond to consumer grievances within a specified period. Forced wallet credits without consent violate this rule.

Jurisdiction — Where to File the Case

Jurisdiction is straightforward once you know where to look. For consumer disputes, it's determined by pecuniary value and territorial connection. Claims up to Rs. 50 lakhs go before the District Consumer Disputes Redressal Commission. Claims between Rs. 50 lakhs and Rs. 2 crores go before the State Consumer Disputes Redressal Commission. Claims above Rs. 2 crores go before the National Consumer Disputes Redressal Commission (NCDRC) in New Delhi.

Territorially, a complaint can be filed where the complainant resides, where the opposite party has its registered office, or where the cause of action arose — in this case, Lucknow. And here's the thing, getting jurisdiction right from the start matters because a complaint filed before the wrong forum can be returned, wasting months you simply don't have.

Limitation Period

Don't sit on this.

Under the Limitation Act, 1963, read with Section 69 of the Consumer Protection Act, 2019, a consumer complaint must ordinarily be filed within two years from the date on which the cause of action arose. Here, the cause of action arose when the brand failed to deliver within the promised window and then refused a proper refund — roughly late March to mid-April 2025.

Missing this two-year window can be fatal to your complaint. A delay can be condoned by the Commission if sufficient cause is shown, but condonation is not automatic. Don't wait. Act within the limitation period.

Interim Reliefs Available

In consumer forum proceedings, a complainant can seek interim relief under Section 38(7) of the Consumer Protection Act, 2019. This allows the District Commission to issue interim orders, including directing the opposite party to refrain from deleting transaction records, deactivating the complainant's account, or dissipating funds, pending the final hearing.

Now, before you act, understand this: interim relief is most effective when sought at the very first hearing, before the opposite party has time to take evasive steps. If the amount involved is significant, an attachment before judgment under Order 38 Rule 5 CPC may also be explored in a civil suit running parallel to the consumer complaint. Early action is always better than late action.

If You Are the Victim

• Gather and preserve all transaction records immediately — payment confirmations, order IDs, screenshots of status pages, and all correspondence with the seller.
• Send a written demand via email and registered post giving the brand a clear 15-day deadline to refund to your original payment method.
• If there is no satisfactory response, file a complaint on the National Consumer Helpline (NCH) at 1915 and on the e-Jagriti portal — these create an official grievance record even if they don't always resolve matters.
• Have a qualified consumer advocate issue a formal legal notice — this step, when done properly, resolves a large proportion of such disputes without going to court.
• If the brand still doesn't comply, file a complaint before the District Consumer Disputes Redressal Commission in your city, attaching all evidence and the legal notice with its proof of delivery.

Documents You Must Keep Ready

• Aadhaar card or PAN card (identity proof of the complainant)
• Order confirmation email or SMS from the e-commerce brand
• Payment receipt or bank/UPI transaction statement showing the debit
• Screenshots of the order status page showing "Processed" without any delivery update
• All DM, WhatsApp, and email exchanges with the brand (exported or screenshotted with timestamps)
• Screenshot or recording of the store wallet showing the unilateral credit
• Your written demand/refund request email and any replies received
• Copy of the legal notice and its postal acknowledgment or delivery receipt

What Evidence Is Required?

• Primary evidence — payment proof: Bank statement, UPI transaction history, or credit/debit card statement showing the exact amount debited on the order date.
• Primary evidence — order record: Order confirmation with order ID, product description, promised delivery date, and the seller's name/website URL.
• Primary evidence — non-delivery proof: Screenshots of the order status remaining at "Processed" beyond the promised delivery window.
• Secondary evidence — communication trail: All emails, DMs, and chat messages sent by you and the responses (or absence of responses) from the brand.
• Secondary evidence — wallet credit screenshot: Showing the forced credit into store wallet instead of a bank refund.
• Website archive: Screenshots or Wayback Machine captures showing that the originally ordered products are no longer available on the site.
• Legal notice and service proof: Signed copy of the advocate-issued notice and postal acknowledgment or courier delivery proof.

How Courts Typically Approach Such Cases

Consumer Commissions in India generally take a practical, consumer-friendly view in clear non-delivery and forced-credit cases. Where documentary evidence of payment and non-delivery is strong, the Commission tends to admit complaints quickly and issue notices to the opposite party at the first hearing itself. In cases like Vijay Kumar Bhatia v. DTDC Courier, 2017 (NCDRC), and Lucknow Development Authority v. M.K. Gupta, 1994 (Supreme Court), courts have affirmed that service providers and sellers cannot escape liability through technical excuses when the deficiency is apparent. Make no mistake — the Commission's patience for sellers who don't appear or respond is limited, and ex-parte orders in favour of consumers are not uncommon.

Timeline of Legal Process

• Week 1-2: Lawyer issues formal legal notice; give the brand 15 days to respond and refund.
• Week 3-4: If no resolution, draft and file consumer complaint before the District Consumer Disputes Redressal Commission, paying court fee.
• Week 5-8: Commission admits complaint (or raises queries); notice issued to opposite party (the brand).
• Month 2-3: Opposite party files written version / reply; if they don't appear, the Commission may proceed ex-parte.
• Month 3-5: Evidence affidavits filed by both sides; brief written arguments submitted.
• Month 5-8: Oral arguments heard; Commission reserves order.
• Month 8-12: Order pronounced; if favourable, the Commission directs refund plus compensation and costs.
• Post-order: If the brand doesn't comply, execution proceedings are initiated. Appeals lie before the State 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?

Frankly, in most straightforward non-delivery cases, yes. Settlement before the Commission is both faster and more practical. Under Section 89 CPC and Section 37 of the Consumer Protection Act, 2019, the Commission can refer parties to mediation at any stage before the final order.

Lok Adalats are also an option for pre-litigation settlement. If both parties agree, a Lok Adalat award is final and cannot be appealed, which provides certainty. For small amounts like a few hundred to a few thousand rupees, this route is often the most efficient. A properly drafted compromise deed, filed before the Commission and accepted, closes the matter permanently. Settlement is advisable where the seller shows willingness and the primary goal is simply recovering the money.

Common Mistakes People Make

• Relying only on social media complaints: Instagram posts and Twitter/X tags create noise but carry no legal obligation on the seller. They don't stop the limitation clock either.
• Accepting store wallet credits without protest: Once you use a wallet credit, even partially, you may weaken your argument that the forced credit was non-consensual. Refuse it in writing immediately.
• Delaying action beyond the limitation period: Two years sounds long, but many consumers wait and wait hoping the brand will resolve things. Then they discover time has run out and condonation is contested.
• Not preserving evidence contemporaneously: Brands delete listings, deactivate accounts, or alter websites. Screenshot and archive everything the moment the dispute begins — not weeks later.
• Engaging an advocate without relevant consumer law experience: Consumer and e-commerce disputes involve specific procedural steps under the Consumer Protection Act, 2019 and the E-Commerce Rules, 2020 — including proper cause of action framing, correct identification of the opposite party (platform versus seller), and interim relief strategy. A general practitioner unfamiliar with these nuances may file before the wrong forum, miss procedural requirements, or fail to claim all available heads of compensation. Experience in this specific area of practice genuinely affects how efficiently a matter is handled.
• Communicating with the opposite party without counsel after filing: Anything you say or write after a complaint is filed can be used against you. Route all communications through your advocate once proceedings begin.

Advocate Sudhir Rao, Supreme Court of India