Legal Explainer | How To File A Case In Consumer Court? Step-by-Step Guide

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Consumer rights are an important part of today’s society, designed to protect people from unfair practices and make sure they get the goods and services they pay for. But sometimes, consumers face problems with a product or service and may need to take legal action. In such cases, “filing a consumer case in a consumer court” becomes essential. In today’s digital world, consumers are exposed to many products and services. Sometimes, they may face issues with these goods or services. In these situations, “filing a consumer case” is a legal way to get justice. It allows you to raise your complaints and seek a solution, whether it’s getting a refund, compensation, or fixing the problem.

Legal Explainer | How to File a Case in Consumer Court? Step-by-Step Guide

NEW DELHI : Consumer rights are an important part of today’s society, designed to protect people from unfair practices and make sure they get the goods and services they pay for. But sometimes, consumers face problems with a product or service and may need to take legal action. In such cases, “filing a consumer case in a consumer court” becomes essential.

In today’s digital world, consumers are exposed to many products and services. Sometimes, they may face issues with these goods or services. In these situations, “filing a consumer case” is a legal way to get justice. It allows you to raise your complaints and seek a solution, whether it’s getting a refund, compensation, or fixing the problem.

Before you begin the process of filing a complaint, it’s important to understand your basic rights as a consumer. Consumer rights include the right to be informed, the right to choose, the right to safety, the right to be heard, the right to redress, and the right to consumer education. Knowing these rights will help the help the consumer build a stronger case and ensure you are treated fairly in the market. Familiarize yourself with these rights, as they are key to protecting yourself from exploitation.

Filing a consumer case is not just about having a complaint; it’s about using the law to seek what you’re entitled to and ensuring you are aware of your rights as a consumer.

WHO IS A CONSUMER

A consumer is an individual or group of individuals who purchase goods and services for their own personal use and not for the purpose of manufacturing or resale.

Section 2(7) of the Consumer Protection Act, 2019 defines :

“consumer” means any person who—
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised,

or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or

(ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised,

or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose.

Explanation.—For the purposes of this clause,—
(a) the expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment;
(b) the expressions “buys any goods” and “hires or avails any services” includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing;

Thus , in simple words ,

A consumer as any person who buys goods or services in exchange for consideration and utilises such goods and services for personal use and for the purpose of resale or commercial use.

In the explanation of the definition of consumer, it has been distinctly stated that the term ‘buys any goods’ and ‘hires or avails any services’ also includes all online transactions conducted through electronic means or direct selling or teleshopping or multi-level marketing.”

WHAT ARE CONSUMER RIGHTS AND CONSUMER COURTS ?

Consumer rights are safeguarded under various laws, such as The Indian Contract Act and The Sales of Goods Act, which aim to ensure fair trade practices and protect consumers. However, when a consumer’s rights are violated, the usual course of action—filing a civil suit—can often be expensive and time-consuming.

To address this, the Consumer Protection Act, 1986, was enacted to explicitly to protect consumer rights and promote their interests.

According to the Consumer Protection Act Section 2(9) , “consumer rights” include:

The right to be protected against the marketing of goods, products or services which are hazardous to life and property.
The right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices.
The right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices.
The right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate fora.
The right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers.
The right to consumer awareness.

This Act also introduced specialized statutory bodies known as Consumer Courts, specifically designed to handle cases filed by consumers.

OBJECTIVE OF CONSUMER COURTS

The Consumer Protection Act, 2019, provides a robust three-tier mechanism to handle consumer complaints and resolve disputes. Known as Redressal Agencies, these bodies, offering consumers a structured process for grievance resolution.

The primary goal of establishing consumer courts is to provide a quicker and more affordable means of seeking redressal for grievances. These courts are structured in a three-tier system:

District Forum
State Commission
National Commission

The Consumer Protection Act empowers individuals by providing a comprehensive framework to address grievances efficiently, ensuring their rights are upheld while minimizing the financial and time burden typically associated with traditional legal processes.

The three redressal agencies aim to resolve consumer grievances quickly and efficiently. They ensure that disputes related to defective goods, unfair trade practices, or deficient services are addressed.

District Commission

The District Commission is the entry-level redressal agency.

Composition: It comprises a president (a working or retired District Court judge) and two members, appointed by the state government.
Jurisdiction: Complaints involving goods or services worth up to ₹1 crore can be filed here.
Procedure:
- The commission may send the goods for laboratory testing if needed.
- Decisions are based on test results and presented facts.
Appeal: If dissatisfied with the decision, the complainant can appeal to the State Commission within 45 days.

State Commission

The State Commission is the second tier of redressal.

Composition: It includes a president (a working or retired High Court judge) and at least two members, also appointed by the state government.
Jurisdiction: Complaints involving goods or services worth more than ₹1 crore but less than ₹10 crores fall under its purview.
Procedure:
- The commission notifies the opposing party upon receiving a complaint.
- If needed, goods are sent to a laboratory for testing, and the decision is made based on reports.
Appeal: Dissatisfied parties can approach the National Commission within 30 days, depositing 50% of the penalty amount.

National Commission

The National Commission is the highest redressal body under the Act.

Composition: It includes a president and four members (at least one of whom is a woman), appointed by the Central Government.
Jurisdiction: Complaints involving goods or services worth more than ₹10 crores are handled here.
Procedure:
- Upon receiving a complaint, the commission informs the opposing party.
- Goods may be sent for laboratory testing, with decisions based on reports and evidence.
Appeal: If dissatisfied, the complainant can appeal to the Supreme Court within 30 days, depositing 50% of the penalty amount.

Consumer courts offer a cost-effective and quicker alternative to civil suits. Their tiered structure ensures that grievances are addressed systematically, promoting accountability and fairness in consumer transactions.

ALSO READ : “This Is An Important Issue”: SC Will Examine Whether ‘Trust’ is a ‘Consumer’ Under Consumer Protection Act

WHO CAN FILE A CONSUMER COMPLAINT

The Act specifies the following individuals and entities who are eligible to file a consumer complaint:

“Consumer”: Any person who has purchased goods or availed services for a consideration. This also includes:
- A person using goods with the buyer’s permission.
- Goods purchased for self-employment and not for resale.
A voluntary organization registered under the Companies Act, 1956.
The Central or State Government.
One or more consumers with a common interest in the matter.
Beneficiaries of goods or services purchased by the consumer.
Legal representatives of a deceased consumer.
Heirs or legal representatives of the deceased consumer.
The spouse of the consumer.
A relative of the consumer.

ALSO READ: ‘Doctors Are Not Just Service Providers’ – Medical Community Challenges SC Ruling on Consumer Protection Act

HOW TO FILE A CONSUMER COMPLAINT?

Before filing a formal complaint, the consumer should:

Contact the trader or service provider to communicate the grievance.
Request a replacement, refund, or resolution of the issue.
If ignored or denied, proceed to the formal complaint process.

Procedure to File a Consumer Complaint

The Consumer Protection Act has made it simple for consumers to file complaints without needing a lawyer. Here’s a detailed step-by-step guide:

1. Identify the Jurisdiction

Pecuniary Jurisdiction: Determine the court based on the value of goods or services and the compensation claimed.
Territorial Jurisdiction: The complaint must be filed where the seller or service provider operates, or where the cause of action arose.

2. Pay the Filing Fee

The fee depends on the value of the goods or services and the level of the court (District, State, or National Commission).

3. Draft the Complaint (Plaint)

Clearly state the facts leading to the grievance.
Include all relevant details that establish the cause of action.

4. Include Identification Details

The complaint must mention the name, address, and description of both the complainant and the opposite party.

5. Sign the Complaint

The complaint must be signed by the complainant.
If filed by a representative, include a letter of authorization.

6. Attach Necessary Documents

The consumer must attach all the necessary documents alongwith the complaint , including :

Copies of bills, receipts, and purchase agreements.
The notice sent to the trader or service provider requesting resolution.

7. Specify the Compensation Amount

State the compensation sought, which may include:
- Refunds.
- Damages.
- Litigation costs.
- Interest on the claimed amount.
Provide a clear breakup of the total amount.

8. Provide Required Statements

Include a statement establishing the jurisdiction of the court.
Specify the relief sought.

9. Adhere to the Limitation Period

The complaint must be filed within 2 years from the date the cause of action arose.
If filed after this period, explain the delay, which the court may or may not condone.

10. Submit Copies of the Complaint

Submit 5 copies of the complaint for the court and each opposite party.
Attach an affidavit affirming that all stated facts are true.

BENEFITS TO THE CONSUMERS UNDER THE NEW CONSUMER PROTECTION ACT , 2019

The Consumer Protection Act, 2019 offers strong protection for consumers in India. In the following ways it benefits the consumers:

Unfair Contracts: The Act defines “unfair contracts” under Section 2(46), which includes agreements that demand excessive security deposits from consumers for the performance of contractual duties. This provision helps protect consumers by allowing them to file complaints against businesses that engage in unfair practices, keeping fraudulent businesses under control.
Territorial Jurisdiction: Consumers can now file complaints in the place where they reside or work. This makes it easier for consumers to seek redress, especially for those who live far from the business or service provider. It provides a more convenient and accessible way to resolve grievances.
False and Misleading Advertisements: The Act addresses false and misleading advertisements by clearly defining what constitutes such practices and imposing penalties on businesses that engage in them. This helps protect consumers from being misled by deceptive ads and ensures businesses are held accountable.
Product Liability: The Act defines “product liability,” which holds manufacturers, service providers, or sellers responsible for compensating consumers if they suffer harm from defective products or services. This ensures that consumers can seek compensation if harmed by unsafe or faulty products.
Mediation and Alternative Dispute Resolution (ADR): The Act encourages mediation and ADR mechanisms to resolve consumer disputes quickly and efficiently. Consumers can now opt for these methods, avoiding lengthy court procedures and achieving faster resolutions.
E-Filing of Complaints: The Act also enables e-filing of complaints and allows consumers to request video conference hearings with the Commission. This modern approach makes it easier for consumers to file complaints and track their cases without needing to visit the Commission in person.

ALSO READ : ‘Failure to Provide Services & Defects in Vehicles’: Consumer Protection Authority Issues Show Cause Notice To Ola Electric

IMPORTANT RECENT PRECEDENTS

1.Manjeet Singh Vs. National Insurance Company Ltd. & Anr. (2018) 2 SCC 108
In this case, the appellant’s truck was stolen after an assault by a passenger. The insurance claim was denied, but the Supreme Court ruled that while it wasn’t a fundamental breach of the policy, the insurance company should pay 75% of the insured amount with interest and compensation.

2.National Insurance Company Ltd. Vs. Hindustan Safety Glass Works Ltd. & Anr. (2017)
The insurance company refused compensation for damage caused by heavy rain, citing policy exclusions. The National Commission ruled in favor of the insured, stating the claim was valid and awarded compensation with interest.

3.Karnataka Power Transmission Corporation (KPTC) Vs. Ashok Iron Works Private Limited (2009)
A private company filed a complaint against KPTC for a delay in electricity supply. The Supreme Court ruled that the supply of electricity was a “service” under the Consumer Protection Act and directed the case to be retried.

4. Indian Medical Association Vs. V.P. Shantha and others (1995)
The Supreme Court clarified that doctors are considered to be rendering a “service” under the Consumer Protection Act, but if services are rendered free of charge, they don’t fall under the Act, unless paid by an insurance provider.

5. Sehgal School of Competition Vs. Dalbir Singh
A student demanded a refund for substandard coaching services, and the National Commission ruled in favor of the student, declaring no-refund policies as unfair and ordering a refund along with additional compensation.

6. Sapient Corporation Employees Provident Fund Trust Vs. HDFC & Ors. (2012)
The Sapient Trust sued HDFC for a wrongful debit from their account, but the National Commission dismissed the case, ruling that the bank had informed the trust and gave ample time, imposing a penalty on the complainant for false litigation.

CONSUMER HELPLINE AND ONLINE GRIEVANCE REDRESSAL

The aggrieved consumer can also file a consumer complaint online , by way of :