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 refuses to repair a product under warranty or offers only a store coupon instead of a refund, you can file a consumer complaint before the District Consumer Commission. The Consumer Protection Act recognizes deficiency in service and unfair trade practice — and courts have often held that forcing a store credit instead of a refund can be challenged. The e-Daakhil portal makes filing easier, even without a lawyer for small-value claims, though professional guidance helps with strategy and evidence.
A few months ago, a client — let's call him Arjun Mehta from Indore — reached the Chamber of Advocate Sudhir Rao with a frustrating problem. He had purchased a Bajaj Electronics robot vacuum cleaner for ₹10,999 in December 2024. The product developed a mechanical defect within the one-year warranty period. Arjun contacted the brand multiple times, but the manufacturer's service team informed him that spare parts for that model were no longer in stock. They refused to repair the unit. They also declined a monetary refund. Instead, they offered an ₹10,999 coupon valid only on their own online store. Arjun had exhausted customer support, sent emails, and filed two complaints on the National Consumer Helpline. Nothing worked. The company's final position was that their internal policy permitted store credit only. It was a dead end — until the matter was taken up legally. Advocate Sudhir Rao and his office examined the warranty terms, the correspondence, and the National Consumer Helpline records. The key argument was that offering a store coupon when the product cannot be repaired is not a valid remedy under the Consumer Protection Act. It forces the consumer to buy again from the same brand — that's an unfair trade practice. The office filed the complaint through the e-Daakhil portal before the District Consumer Commission, Indore. The company was summoned, and during proceedings, the Commission observed that the refusal to refund or repair amounted to clear deficiency in service. Advocate Sudhir Rao's experience in consumer litigation — particularly with warranty disputes and digital filings — helped secure an order directing the company to refund the full purchase price of ₹10,999 with 9% interest from the date of complaint, plus ₹5,000 as litigation costs. The store coupon offer was set aside.
Key Facts of the Case
- Product purchased: Robot vacuum cleaner from Bajaj Electronics, price ₹10,999, dated December 2024.
- Defect developed within the one-year manufacturer warranty period.
- Company confirmed they had no spare parts to repair the product.
- Company refused a cash refund, offering only a ₹10,999 store coupon for their own platform.
- Two National Consumer Helpline complaints were filed, but the company did not change its position.
- Complaint was filed via the e-Daakhil portal before the District Consumer Commission, Indore.
- The Commission held that the store-coupon-only policy was an unfair trade practice and deficiency in service.
- Order: Full refund of ₹10,999 with 9% interest plus ₹5,000 litigation costs.
The Direct Legal Answer
Can a company refuse a refund and force a store coupon?
No — not when the product is under warranty and cannot be repaired. Section 2(11) of the Consumer Protection Act, 2019 defines "deficiency" as any fault, imperfection, or inadequacy in the quality or service. If a company cannot repair a product, they must either replace it or refund the price. Offering only a store coupon that locks you into buying from them again is an unfair trade practice under Section 2(47) of the Act. Consumer Commissions have repeatedly held that such "internal policies" do not override the consumer's statutory rights.
Should I file through e-Daakhil or go to court physically?
e-Daakhil is a good option for claims up to ₹20-25 lakh. It lets you file documents online, pay fees digitally, and track the case. It works well for small-ticket items like electronics. However, if the company does not respond or if the matter involves complex evidence, physical hearings before the District Consumer Commission may still be required. Filing through e-Daakhil is faster and cheaper, but having a lawyer who knows the portal's nuances helps avoid procedural rejections.
What if the company argues that their policy allows only store credit?
That argument rarely works. Consumer protection law overrides company policies. The Supreme Court and various State Commissions have held that a policy that defeats the consumer's right to a refund when the product cannot be repaired is void. Your complaint should specifically plead that the store coupon is a forced restriction — not a genuine remedy.
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.
Keep all documents organized — your invoice, warranty card, email threads, and complaint references. Don't accept verbal assurances; get every response in writing. And here's the thing: do not agree to any "one-time exchange" or "goodwill coupon" without understanding that it may extinguish your right to a refund. Consumer cases of this type involve specific arguments on deficiency and unfair trade practice — a general civil lawyer might miss these nuances. An advocate who regularly handles consumer forum litigation will know how to frame the complaint, what to include in evidence, and how to argue against standard-form warranties.
Applicable Sections of Law
- Consumer Protection Act, 2019: Section 2(11) defines deficiency in service; Section 2(47) defines unfair trade practice; Section 49 deals with the jurisdiction of the District Commission.
- Section 2(47)(i)(d) and (e): Covers false or misleading claims about the need for service or replacement — relevant where a company claims it cannot repair but offers only its own store coupon.
- The Legal Metrology Act, 2009: Section 19 read with Legal Metrology (Packaged Commodities) Rules, 2011 — dealing with mandatory warranty and refund obligations on electronic goods.
Jurisdiction — Where to File the Case
Consumer complaints for goods under ₹1 crore are filed before the District Consumer Disputes Redressal Commission (commonly called the District Consumer Forum) of the district where the product was purchased, where the seller is located, or where the consumer resides. For this case, since the client lived in Indore and purchased the product there, the Indore District Commission had territorial jurisdiction. Pecuniary jurisdiction is based on the value of the goods plus compensation claimed — here, ₹10,999 plus litigation costs. Filing in the wrong jurisdiction will result in return of the complaint — so check carefully or let your advocate confirm it.
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 arose. That is usually the date when the company finally refuses to repair or refund. In this case, the cause of action arose when the company communicated that they had no spare parts and offered only a store coupon. That's when the two-year clock starts. The Commission has the power to condone a delay if sufficient cause is shown, but it's best to file promptly — within a few weeks or months of the refusal.
Interim Reliefs Available
Under Section 39 of the Consumer Protection Act, 2019, the Commission can pass interim orders — for example, directing the company to deposit the disputed amount or to cease the unfair trade practice until the final hearing. In practice, consumer commissions are cautious about granting interim relief early on, but where the defect is clear and documents are strong, a direction to the company to maintain status quo or to not dispose of the product can be sought. This is why an experienced consumer lawyer can make a difference — they know how to frame the application for interim orders effectively.
If You Are the Victim
- Do not accept a store coupon or voucher without understanding that it may close your legal remedies.
- File a complaint on the National Consumer Helpline (NCH) first — it's free and creates a record.
- If NCH fails, move to the e-Daakhil portal for the District Consumer Commission.
- Consider engaging a consumer lawyer for drafting and strategy, even if you file through e-Daakhil yourself.
- Claim not just the refund but also compensation for harassment and litigation costs — this discourages companies from using repetitive denial tactics.
Documents You Must Keep Ready
- Purchase invoice or receipt showing price and date.
- Warranty card or warranty terms provided at purchase.
- Video recordings or photographs of the defect — timestamped where possible.
- Email and chat correspondence with customer support and senior management.
- Service ticket history and job sheets (if any visits were made).
- National Consumer Helpline complaint numbers and final response.
- Any written communication from the company stating their "internal policy" on store coupons.
- Identity proof (Aadhaar or PAN) and address proof for e-Daakhil registration.
What Evidence Is Required?
- Primary evidence: The purchase invoice and warranty document — these prove the contract.
- Documentary evidence: Emails, NCH records, and service tickets showing the company's refusal to repair.
- Electronic evidence: Videos or screenshots of the defect — admissible under the Bharatiya Sakshya Adhiniyam, 2023, Section 63 (electronic records as primary evidence if properly certified).
- Corroborative evidence: Any statement or affidavit from you describing the timeline and the company's conduct.
- Company's own policy documents: If the company cites a written policy, ask for a copy — they may have to produce it in proceedings.
- Expert opinion (rarely needed): If the defect is technical, a service centre report can support your claim, but usually the company's own admission that they cannot repair is enough.
How Courts Typically Approach Such Cases
Consumer Commissions take a pragmatic view. They examine whether the product has a genuine defect, whether the warranty period has expired, and whether the company made reasonable efforts to repair. If the company admits it cannot repair due to lack of spare parts, the Commission usually finds deficiency in service. The store-coupon argument is often rejected as an unfair trade practice — the consumer is entitled to a refund or replacement, not forced loyalty. Commissions are also strict about repeated adjournments, especially for small-value claims. The process is faster than ordinary civil courts — often resolved within 6-12 months if both sides cooperate.
Timeline of Legal Process
- Filing (1-2 weeks): Draft the complaint, attach documents, file via e-Daakhil or physically — fees are negligible.
- Notice to opposite party (2-4 weeks): Commission issues notice to the company; they must appear within 30 days.
- Written statement (4-8 weeks): Company files its defence; consumer can file a rejoinder.
- Evidence by affidavits (4-8 weeks): Both sides file affidavits and documents; no oral evidence usually for small claims.
- Arguments (2-4 weeks): Brief hearing; Commission may ask questions.
- Judgment (2-4 weeks after arguments): Order is pronounced — typically within 6-12 months from filing for a straightforward warranty dispute.
- Appeal (if any): Either side can appeal to the State Commission within 30 days — adds another 6-12 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?
Yes — consumer disputes are amenable to settlement. The Commission may refer the matter to mediation or Lok Adalat. If the company offers a full refund plus reasonable compensation for harassment during mediation, it may be worth considering. But do not accept a store coupon or a partial refund. A settlement must be recorded in writing and signed by both parties. Under Section 88 of the Consumer Protection Act, the Commission can dispose of the matter as per the terms of settlement. It is advisable to have your lawyer review any settlement offer before you agree — especially if the company tries to impose confidentiality or limits on future claims.
Common Mistakes People Make
- Delaying the complaint — waiting months after the final refusal can weaken your case and may raise issues of limitation.
- Throwing away or not preserving the defective product — without it, proving the defect becomes harder.
- Accepting a store coupon or voucher in settlement without legal advice — you may lose the right to a cash refund.
- Signing any "full and final settlement" letter from the company without reading the fine print — it can bar future claims.
- Posting aggressively on social media — while venting is natural, statements made publicly can be used against you in proceedings if they are exaggerated or defamatory.
- Engaging an advocate who does not regularly handle consumer forum cases — consumer law has its own procedural rules (e-Daakhil, specific pleading requirements, evidentiary burdens under the Consumer Protection Act). A general civil lawyer may not know how to frame a deficiency or unfair trade practice claim effectively, or may miss the window for interim relief. This can delay the case or weaken the outcome. Domain-specific experience matters.
FAQs People Normally Have
Can I file the case myself without a lawyer?
Yes — the Consumer Protection Act allows you to file in person. The e-Daakhil portal is designed for self-representation. However, if the company hires a lawyer, you may struggle with procedural objections. Many people file a consumer case themselves but consult a lawyer for drafting the complaint and evidence strategy.
What if the company is not in my city?
That doesn't matter for territorial jurisdiction — you can file where you reside or where the product was bought. The company will be served notice through the Commission's registry. Remote filing through e-Daakhil is specifically intended for such situations.
How long does a consumer case typically take?
For small-value warranty disputes (under ₹20 lakh), most District Consumer Commissions resolve matters within 6-12 months if both sides cooperate. If the company files a frivolous defence or appeals, it can extend to 2-3 years.
Is a store coupon ever acceptable?
Only if you voluntarily accept it and the company clearly states it is not a full settlement. But you should know that accepting a store coupon may waive your right to a cash refund. Most consumer lawyers advise against accepting it unless it's a genuine goodwill gesture and you still file for the refund.
What compensation can I claim besides the refund?
You can claim compensation for mental harassment, loss of time, and litigation costs. Commissions usually award modest amounts — often ₹5,000-₹25,000 — but the total should be proportionate to the product value. Claim high only if you have strong evidence of harassment.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India