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 company demands unreasonable depreciation for a defective product under warranty, it’s a clear deficiency in service. You can demand a free replacement or full refund, and if they refuse, a legal notice followed by a consumer complaint typically forces a fair resolution. Don’t agree to arbitrary depreciation—it’s not your liability.
Anil Kapoor, a resident of Indore, bought a Samsung refrigerator in March 2023 for about Rs. 55,000. It came with a 10‑year compressor warranty and a 1‑year comprehensive warranty. By July 2023, water started leaking from inside. He called Samsung. A technician replaced a back component, but the leakage continued. The technician then removed the new part and refitted the old one, leaving the fridge worse. Another complaint in August brought a second engineer who inspected, shot a video, and days later informed Anil that the defect was unrepairable. Samsung offered a replacement—but only if Anil paid 65% depreciation on the old unit’s value. That’s around Rs. 35,750, just to get a comparable model. Anil first took advice from a general practitioner. Not much moved. Frustrated, he approached the office of Advocate Sudhir Rao. The chamber examined the warranty terms, the repair reports, and Samsung’s arbitrary depreciation calculation. A crisp legal notice was drafted—pointing out deficiency under the Consumer Protection Act, 2019, and demanding either a free replacement or a full refund with interest. Within two weeks, Samsung backtracked. They agreed to replace the fridge without any depreciation. The matter settled without even reaching the consumer forum. Advocate Sudhir Rao’s grip on product‑liability strategies turned the case around in hours of desk work—not months of litigation.Key Facts of the Case
- Purchase date: March 2023, value Rs. 55,000, with a 10‑year compressor warranty and 1‑year comprehensive warranty.
- First defect reported in July 2023—within the comprehensive warranty period.
- Repair attempt failed; second inspection declared the defect “unrepairable.”
- Samsung demanded 65% depreciation for a replacement, despite the fridge being under warranty.
- No breakdown of depreciation calculation was provided, nor any inspection report offered voluntarily.
- A legal notice asserting deficiency in service and unfair trade practice led to an out‑of‑court settlement with free replacement.
The Direct Legal Answer
You asked several specific questions—here are straight answers.
What things should we type in the notice?
Your legal notice must state the facts chronologically: purchase details, warranty coverage, dates of complaints, what the technicians did, and the company’s final demand for 65% depreciation. Then assert that this amounts to a deficiency in service and an unfair trade practice. Demand a free replacement of the same or equivalent model, or a full refund with 18% interest. Give them 15–30 days to comply, failing which you’ll approach the consumer forum.
If we demand our money back, should we demand it with interest?
Yes. You’re entitled to a refund of the purchase price with reasonable interest—often 12% to 18% per annum from the date the defect was first reported. Courts and forums routinely award interest because your money has been unjustly held by the company.
Or should we demand the recent model without any depreciation?
That’s exactly the right demand. Since the defect is not your fault and the product is under warranty, you’re entitled to a defect‑free replacement at zero extra cost. The company cannot foist its product’s depreciation on you.
I don’t think we should pay any of it because it’s not our fault that the issue is not curable.
Absolutely correct. The manufacturer or seller must bear the cost of a defective product when it’s under warranty. The 65% figure is arbitrary unless they can prove what specific part is irreparable and how its depreciated value is computed under the terms of the warranty. They rarely can.
I read in some cases compensation reached up to 10 times the value. Should we also consider that?
That’s possible but not typical for a simple defect replacement. Punitive damages (or exemplary costs) are awarded when the company’s conduct is grossly negligent or fraudulent, causing severe harassment. In your case, focus first on getting the replacement or refund. If the matter goes to trial and the company acts in bad faith, you can claim additional compensation for mental agony and litigation costs.
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.
Never accept a verbal assurance. Get every inspection report and the depreciation calculation in writing. And here’s the thing—consumer law is more about documentation than argument. Keep a paper trail.
Approach a lawyer who regularly handles consumer matters. General practitioners often miss the procedural shortcuts available in consumer forums, like the absence of strict pleadings and the emphasis on summary trials. That expertise can compress a year‑long ordeal into a few weeks.
Applicable Sections of Law
The Consumer Protection Act, 2019 governs this dispute. Section 2(11) defines “deficiency”—any fault, imperfection, or shortcoming in the quality or service. Section 2(47) covers “unfair trade practice,” which includes making false or misleading representations. Section 84 imposes product liability on manufacturers for any harm caused by a defective product. And Section 35 allows a complainant to file a product liability action. For quick redress, Section 47 enables the consumer commission to refer the matter to mediation.
Limitation Period
Under the Consumer Protection Act, 2019, a complaint must be filed within two years from the date on which the cause of action arises. Here, that clock starts ticking the day Samsung declared the defect unrepairable and demanded depreciation. If you miss this deadline, you can apply for condonation of delay—but it’s not automatic. So move fast.
Interim Reliefs Available
Consumer commissions can pass interim orders to maintain the status quo. In your case, you can seek a direction to the company to preserve the defective fridge and all inspection reports. While you won’t get a temporary injunction freezing assets, the commission may direct the company to not dispose of the old unit before the case concludes. Ask for this in your complaint; it’s a simple one‑sentence prayer that often catches the opposite party off guard.
If You Are the Victim
- Don’t accept the depreciation demand—push back immediately with a formal email or letter.
- Collect every service report, inspection video, and the name of the technician who visited.
- File a complaint on the company’s official grievance portal and note the ticket number.
- If no resolution within 30 days, send a legal notice through an advocate.
- Then file a complaint before the District Consumer Disputes Redressal Commission if notice is ignored.
Documents You Must Keep Ready
- Purchase invoice and warranty card.
- Copies of all complaint emails or messages to the company.
- Service request numbers and dates.
- Technician’s job sheet or report (if provided), even if handwritten.
- Photos and videos of the defect and the fridge’s condition.
- Any communication where the company admits the defect is unrepairable.
- Legal notice you send and the proof of delivery.
What Evidence Is Required?
- Warranty certificate to prove coverage period.
- Service records: the two repair visits and the second engineer’s conclusion.
- Screenshot or recording of the call where 65% depreciation was demanded.
- If available, an independent technician’s opinion on the defect.
- Proof of the original purchase price (bank statement or invoice).
- All written correspondence with the company—these become primary evidence.
- Witness statements from anyone who saw the leakage or heard the technicians’ remarks.
How Courts Typically Approach Such Cases
Consumer forums lean in favour of the buyer when the product fails during warranty. They’ll ask one core question: was the service deficient? If the company can’t explain why the defect occurred and why depreciation is justified, the forum usually orders a free replacement or full refund. The forum won’t be impressed by arbitrary percentages plucked from thin air. It expects detailed reasoning. So the lack of an inspection report and a depreciation break‑up works heavily against the manufacturer.
Timeline of Legal Process
- Legal notice: 15–30 days for the company to respond.
- Complaint filing: Draft and file before the District Consumer Commission—takes a day or two once documents are ready.
- Admission and notice to opposite party: Within a week or two, the commission issues notice and asks them to file a written version (reply) within 30 days.
- Hearings and evidence: Typically 3–6 hearings over 3–5 months if the matter is not settled.
- Judgment: The commission is supposed to dispose of the complaint within 3–5 months, though delays happen.
- Execution: If the company doesn’t comply, you file an execution petition—another 2–3 months.
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. Consumer forums actively encourage mediation. Under Section 47 of the Consumer Protection Act, 2019, the commission can refer the dispute to mediation at any stage. In our client’s case, the legal notice itself triggered a settlement. That’s the fastest route—a firm, well‑drafted notice often makes the company fold. Even after filing a complaint, you can opt for a Lok Adalat or a mediated settlement. It saves time and costs, and you walk away with a binding order.
Common Mistakes People Make
- Delaying action—thinking the company will fix things on its own. The limitation clock is ticking.
- Not keeping a paper trail. Verbal promises vanish; emails and messages stay.
- Agreeing to pay part of the depreciation without checking the warranty terms.
- Filing a complaint without first sending a legal notice. A notice almost always strengthens your position.
- Handing over the defective product to the company without taking a proper receipt. You lose vital evidence.
- Engaging an advocate without domain experience in consumer law—someone unfamiliar with the summary procedure and the forum’s inclination to protect consumers may not push the right buttons. A specialist knows how to frame the complaint for quick admission and how to demand the correct documents from the opposite party.
FAQs People Normally Have
Can I claim compensation for the harassment alongside a replacement?
Yes. You can claim a lump sum for mental agony and litigation costs. The forum has the power to grant both.
What if the company says the 65% is as per their policy?
A policy that contradicts statutory rights is not binding. Under the Consumer Protection Act, you cannot be made to bear the cost of a manufacturing defect during warranty. Challenge it.
Do I need to return the old fridge before getting a new one?
Usually yes—but only after the company agrees to replace it at no cost. Never hand it over without a proper acknowledgment and only after they confirm in writing that no depreciation will be charged.
Is there a minimum value to file a consumer complaint?
No. The District Commission hears cases where the value of goods or services and the compensation claimed does not exceed Rs. 1 crore. Your fridge and the claim clearly fall within that limit.
How long will the whole case take if it goes to the commission?
Realistically, 6–12 months if contested, but many cases settle after the notice stage itself. Expert handling can cut that timeline drastically.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India