Procedure for filing a consumer dispute

In one minute

A consumer files a written complaint, with the prescribed fee, before the right Commission within two years. The Commission decides admission within 21 days. The opposite party gets 30 days to reply. The Commission hears the case on affidavits and documents and tries to decide within three months, or five months if goods must be tested.

In exams, this topic is asked as "describe the procedure for filing and disposal of a consumer complaint". The usual traps are the deemed admission after 21 days, the time for the reply and the time for the laboratory report.

Legal provision

• Section 2(6): defines "complaint": an allegation in writing, made by a complainant for obtaining relief under the Act.
• Section 35: manner in which a complaint is made, and who may make it.
• Section 34(2): the place where the complaint is filed.
• Section 36: proceedings before the District Commission, including admission.
• Section 37: reference to mediation.
• Section 38: procedure on admission of a complaint.
• Section 39: findings and reliefs.
• Section 69: limitation period of two years.
• Section 65: service of notices.

Meaning and definition

A consumer dispute is a dispute where the person against whom a complaint is made denies or disputes the allegations (section 2(8)). The procedure is the series of steps from the filing of the complaint to the order. It is meant to be quick, simple and cheap, and it is not bound by the technical rules of a civil suit.

Detailed explanation

Step 1: Who may file (section 35(1))

• The consumer to whom the goods are sold or delivered or the service is provided, or who alleges an unfair trade practice.
• Any recognised consumer association, whether or not the consumer is its member. A recognised association is a voluntary consumer association registered under any law.
• One or more consumers, where there are numerous consumers with the same interest, with the permission of the District Commission, on behalf of all.
• The Central Government, the Central Authority or the State Government.
• Under section 2(5), the legal heir of a deceased consumer, and the parent or guardian of a minor consumer.

Step 2: Where to file

• The Commission depends on the consideration paid (see the note on jurisdiction).
• The place can be where the opposite party resides, carries on business or works for gain, where the cause of action arises wholly or in part, or where the complainant resides or personally works for gain (section 34(2)).

Step 3: Form, fee and mode

• The complaint is in writing and states the facts, the allegations and the relief sought.
• It is accompanied by the prescribed fee, which may be paid electronically (section 35(2)).
• It may be filed electronically (proviso to section 35(1)). See the note on e-filing.

Step 4: Admission (section 36)

• The President and at least one member, sitting together, conduct the proceeding.
• The Commission admits or rejects the complaint. It cannot reject the complaint without giving the complainant an opportunity of being heard.
• Admissibility is ordinarily decided within 21 days of filing.
• If the Commission does not decide within that time, the complaint is deemed admitted.

Step 5: Mediation if suitable (section 37)

At the first hearing or later, if there are elements of a settlement, the Commission may ask the parties for written consent within five days to settle by mediation, and then refers the matter within five days. See the note on mediation.

Step 6: Notice and reply (section 38)

• A copy of the admitted complaint is sent to the opposite party within 21 days of admission, directing him to give his version within 30 days. The Commission may extend this by up to 15 days.
• If the opposite party denies the allegations or fails to reply, the Commission goes on to decide.
• Notice can be served by registered post, speed post, an approved courier or electronic means (section 65).

Step 7: Goods that need testing (section 38(2))

• A sealed sample goes to an appropriate laboratory, which must report within 45 days or any extended period.
• The complainant deposits the fee for the test. The report is sent to the opposite party.
• If a party disputes the report, he files objections in writing and both sides are heard.

Step 8: Other cases and services (section 38(3))

• The Commission decides on the evidence of both sides if the opposite party denies the claim.
• If the opposite party fails to reply in time, the Commission decides ex parte on the complainant's evidence.
• If the complainant fails to appear on the date of hearing, the Commission decides on merits.

Step 9: Hearing and decision

• The complaint is heard on affidavits and documents. A party may be heard in person or by video conferencing with leave (section 38(6)).
• The Commission endeavours to decide within three months, or five months if testing is needed (section 38(7)).
• Adjournments are not ordinarily granted unless sufficient cause is shown, and costs may be imposed for adjournments.
• The order is made under section 39.

Step 10: Limitation and after the order

• The complaint must be filed within two years from the date the cause of action arose. A late complaint can be admitted if the complainant shows sufficient cause and the Commission records its reasons (section 69).
• Appeals, review and execution follow. See the notes on remedies and the redressal machinery.

1. 1. FilingA written complaint with the fee, in person or electronically, within two years.
2. 2. AdmissionOrdinarily decided in 21 days. Deemed admitted if not decided.
3. 3. Mediation if the parties agreeOr notice to the opposite party within 21 days of admission.
4. 4. Reply and evidenceReply in 30 days, plus up to 15. Goods tested within 45 days if needed.
5. 5. Hearing and orderOn affidavits and documents. Decision in three or five months. Order under section 39.

Don't confuse: a complaint and an appeal

Point	Complaint	Appeal
Filed by	A complainant	A person aggrieved by an order
Time	Two years from the cause of action	45 days, then 30 days
Before	The Commission with jurisdiction	The next tier
Deposit	Prescribed fee	50 per cent of the amount ordered

Common mistakes

• Forgetting that the complaint must be in writing and may be filed electronically.
• Forgetting the deemed admission if the Commission does not decide within 21 days.
• Giving 30 days for the reply without the 15 days' extension.
• Forgetting that the laboratory report is due in 45 days.
• Counting the two years from the date of the purchase and not from the cause of action.

Apply it

Leading case laws

• Spring Meadows Hospital v. Harjot Ahluwalia (1998)

  Facts. A minor patient was left in a vegetative state. The parents and the child each claimed compensation.

  Principle. Both the child as beneficiary and the parents as hirers are consumers who can complain.

  Significance. Who may complain.

• Om Prakash v. Reliance General Insurance Co. Ltd. (2017)

  Facts. An insurer rejected a genuine theft claim because notice was eight days late.

  Principle. A satisfactorily explained delay is not a ground to reject a genuine claim.

  Significance. A consumer complaint can succeed against an unfair rejection.

• SpiceJet Ltd. v. Ranju Aery (2017)

  Facts. A passenger filed a complaint for a refund, extra costs, compensation and litigation costs.

  Principle. The complaint succeeded before the District Forum, the State Commission and the National Commission.

  Significance. Shows a complaint travelling through the tiers.

How to write this answer in the exam

Key points to remember

• Written complaint with the prescribed fee. E-filing allowed.
• Admission ordinarily within 21 days. Deemed admitted if not decided.
• Reply in 30 days, extendable by up to 15 days.
• Laboratory report in 45 days. Decision in three or five months.
• Limitation: two years from the cause of action.

Quick self-test

Related topics

• Consumer Disputes Redressal Commissions: Jurisdiction and Powers
• E-filing
• Continuous cause of action
• Mediation: Empanelment of Mediators, appointment, duties and settlement of disputes