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.
My client, a resident of Gomti Nagar, Lucknow, placed an order on a small e-commerce platform through his Axis Bank credit card in late February 2024 for a branded laptop accessory worth ₹8,003. The seller confirmed the order but immediately cited stock unavailability. My client cancelled within 24 hours over WhatsApp and by email. The order sat in "processing" for days. He quickly found dozens of online complaints about the same seller. His bank — Axis Bank — gave him a provisional credit after he raised a chargeback request around 20 February 2024.
The trouble started in mid-March. The acquiring bank, Kotak Mahindra Bank, rejected the chargeback, insisting the service had been "successfully delivered." Axis Bank reversed the provisional credit shortly after. When my client called Axis Bank's dispute team asking for the Proof of Delivery, he was flatly told to pursue legal remedies. A Cybercrime complaint filed around 2 April 2024 went nowhere — the local police called him, told him recovery was unlikely, and suggested he close the matter.
He came to this office after these initial attempts had stalled. The approach shifted immediately. We filed a structured complaint with the RBI Ombudsman under the Centralised Management System (CMS) on 3 April 2024, with meticulous supporting documentation. Axis Bank, under RBI scrutiny, initiated a "Good Faith" inquiry. Meanwhile, the merchant generated a brand-new fake tracking ID in late April — for an item the bank had already declared "delivered" in March. That contradiction became the turning point. We compiled all conflicting statements, screenshots, and the seller's subsequent attempt to coerce withdrawal of the dispute in exchange for a refund, and submitted everything to the RBI. Within two days of that final submission, the full ₹8,003 was credited to my client's account. Knowing exactly what evidence to put in front of the RBI adjudicator made the difference where earlier general approaches had not.
Advice in Such Cases
Consult with Lawyer / Advocate: 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.
Go to the RBI Ombudsman first, not Cybercrime: For e-commerce delivery failures involving a credit or debit card, the RBI Ombudsman under the Integrated Ombudsman Scheme, 2021 is almost always the fastest route. Cybercrime portals are designed primarily for hacking, phishing, and identity theft — not non-delivery disputes. Don't waste weeks waiting on a police response that may never come.
Never withdraw your dispute for a promised refund: Sellers and even banks sometimes promise a refund in exchange for dropping your chargeback or Ombudsman complaint. This is a pressure tactic. Once you withdraw, your formal position disappears entirely. Keep the dispute active until the money actually reflects in your account.
Build a contradiction file: Banks and merchants rely on the assumption that consumers won't track inconsistencies across multiple communications. Date every screenshot. Organise every email, chat, and official bank reply chronologically. When their statements contradict each other, the RBI adjudicator can see it immediately. And here's the thing — this kind of matter involves procedural and evidentiary nuances, such as the exact framing of a rebuttal to the acquiring bank's response, that an advocate who regularly handles banking and consumer disputes will approach very differently from a general practitioner.
Applicable Sections of Law
This matter primarily falls under consumer and banking law, with elements of contract and civil fraud. The following statutory provisions are directly applicable:
- Consumer Protection Act, 2019 — Section 2(11): Defines "deficiency in service," which squarely covers non-delivery of a paid-for product and a bank's failure to process a valid chargeback.
- Consumer Protection Act, 2019 — Section 35: Governs the filing of a complaint before the District Consumer Disputes Redressal Commission where the value of goods or services and compensation claimed does not exceed ₹50 lakhs.
- Indian Contract Act, 1872 — Section 73: Entitles a party to compensation for loss caused by a breach of contract — applicable where the seller accepted payment and failed to deliver.
- Payment and Settlement Systems Act, 2007 — Section 18: Empowers the RBI to issue directions to payment system participants, underpinning the Integrated Ombudsman Scheme under which the complaint was filed.
Jurisdiction — Where to File the Case
For monetary disputes of this kind, jurisdiction depends on the forum chosen. Before the District Consumer Disputes Redressal Commission, the complaint is filed at the Commission having territorial jurisdiction over the place where the complainant resides or the cause of action arose — here, Lucknow. Pecuniary jurisdiction up to ₹50 lakhs rests with the District Commission. The RBI Ombudsman complaint is filed online at cms.rbi.org.in and is not territorially restricted. And here's the thing — wrong choice of forum can delay relief by months, so identifying the fastest and most effective forum at the outset matters enormously.
Limitation Period
Two years. That's the window. Under the Limitation Act, 1963, a consumer complaint must ordinarily be filed within two years from the date on which the cause of action arises — in this context, from the date the seller confirmed non-delivery or the bank reversed the provisional credit. The Consumer Protection Act, 2019 under Section 69 also prescribes a two-year limitation period. Missing this window can be fatal to the complaint. Courts do have discretion to condone delay under Section 5 of the Limitation Act if sufficient cause is shown, but relying on that provision is always a risk best avoided.
Interim Reliefs Available
In civil and consumer proceedings of this nature, interim reliefs can be sought at an early stage. Before a Consumer Commission, a complainant may seek a stay on any further debits or a direction to the bank to restore the provisional credit pending adjudication, grounded in Order 39 Rules 1 and 2 of the Code of Civil Procedure, 1908 as applied to consumer proceedings. Where bank accounts or merchant settlement accounts need to be frozen to prevent dissipation of funds, attachment before judgment under Order 38 Rule 5 CPC is available in civil courts. Status quo orders are particularly useful in cases where the merchant is still operating and collecting payments from other consumers. Frankly, these interim tools are underused in small-value e-commerce disputes, and that's a mistake.
If You Are the Victim
- Raise a chargeback with your card-issuing bank within 48 to 72 hours of the failed delivery — the sooner the better, as card network rules impose strict timelines on dispute initiation.
- If the chargeback is rejected or the provisional credit is reversed without any Proof of Delivery being shared with you, file a complaint immediately on the RBI CMS portal at cms.rbi.org.in — do not wait for police action.
- Email the Nodal Officer of both your card-issuing bank and the acquiring bank (the merchant's bank) directly, citing the specific transaction reference number and the absence of any valid delivery proof.
- Do not remove negative reviews, withdraw complaints, or sign any settlement letter until the actual credit appears in your bank account and is fully cleared.
- Keep copies of every communication, including WhatsApp chats (export with media), email threads, and bank SMS alerts, in a single dated folder.
Documents You Must Keep Ready
- Aadhaar card and PAN card (identity proof for all filings)
- Order confirmation email or SMS from the merchant
- Payment receipt and credit/debit card statement showing the transaction
- All WhatsApp and email communications with the merchant, exported with timestamps
- Bank's written response to the chargeback request and any provisional credit/reversal notices
- Any tracking IDs or shipment links provided by the merchant, along with screenshots of the courier portal showing the status
- Screenshots of online reviews or complaints about the merchant (to establish a pattern)
- RBI CMS complaint acknowledgement and all subsequent correspondence from the Ombudsman office
What Evidence Is Required?
- Primary evidence — Proof of payment: Card statement or bank passbook entry confirming the debit, along with the merchant's order confirmation.
- Primary evidence — Cancellation record: WhatsApp message or email sent to the merchant requesting cancellation, with timestamps, before any shipment was made.
- Secondary evidence — Contradictory tracking data: Screenshots showing that a fresh tracking ID was generated weeks after the bank certified delivery — this is the most powerful evidence of fabrication.
- Secondary evidence — Online complaint pattern: Documented consumer reviews from Google, social media, or consumer forums showing the same merchant's repeat behaviour.
- Merchant's extortion communication: Any message from the seller conditioning a refund on withdrawal of the dispute — this constitutes independent evidence of bad faith.
- Bank correspondence: Written or email replies from both the issuing bank and the acquiring bank, capturing their stated positions at different points in time.
How Courts Typically Approach Such Cases
Consumer Commissions generally approach e-commerce non-delivery disputes with a degree of scepticism toward merchants who produce Proof of Delivery documents without independent courier verification. As held in Lucknow Development Authority v. M.K. Gupta, 1994 (SC), service deficiency must be judged from the consumer's perspective, and the burden shifts to the service provider once the consumer establishes payment and non-receipt. In chargeback-related matters, commissions have consistently held that a bank can't simply relay the acquiring bank's rejection without independently verifying the delivery proof, as that itself constitutes a service deficiency under Section 2(11) of the Consumer Protection Act, 2019. Make no mistake — banks know this position well, which is exactly why RBI scrutiny tends to move them faster than a Consumer Commission notice alone.
Timeline of Legal Process
- Day 1-3: Raise chargeback with card-issuing bank; collect and organise all documentation.
- Week 2-4: Bank forwards dispute to acquiring bank; provisional credit typically granted within 7-10 working days.
- Week 4-8: Acquiring bank responds (acceptance or rejection of chargeback); if rejected, issuing bank may reverse provisional credit.
- Day of reversal: File RBI Ombudsman complaint on cms.rbi.org.in immediately; simultaneously email bank Nodal Officers.
- Week 2-4 after RBI complaint: Bank files its reply to the Ombudsman; complainant submits rebuttal within the prescribed window.
- Week 4-8 after RBI complaint: RBI adjudicator reviews submissions; most straightforward disputes are resolved within 30-45 days at this stage.
- If unresolved: File before District Consumer Disputes Redressal Commission; typical disposal ranges from 3 to 12 months depending on complexity and hearing dates.
- Appeal: State Consumer Disputes Redressal Commission, then National Commission, if required.
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. Settlement is available at multiple stages. Before filing, a formal legal notice under Section 80 CPC can prompt the merchant or bank to resolve the matter voluntarily. The RBI Ombudsman process itself includes a conciliation phase — the Ombudsman may facilitate a settlement between the complainant and the bank before passing an award. Before a Consumer Commission, the court may refer the parties to mediation under Section 37 of the Consumer Protection Act, 2019 or to a Lok Adalat for pre-litigation settlement. Now, before you accept any settlement offer, make sure the agreed amount is actually credited before you sign any withdrawal or discharge. A verbal or email-only "refund assured" means nothing until the money clears.
Common Mistakes People Make
- Delaying the chargeback request: Card network rules (Visa, Mastercard, RuPay) impose strict timelines for dispute initiation — often 60 to 120 days from the transaction date. Waiting too long can permanently forfeit the chargeback right.
- Withdrawing the dispute in exchange for a verbal
Facing a similar matter? Speak to a criminal advocate in Delhi — Advocate Sudhir Rao appears in bail, trial and appellate matters before the Delhi District Courts, the Delhi High Court and the Supreme Court of India.