Remedies

In one minute

If a complaint is proved, the Commission can order the opposite party to remove the defect, replace the goods, refund the price with interest, pay compensation, stop an unfair practice, withdraw hazardous goods, issue a corrective advertisement and pay costs. Section 39 lists these reliefs.

In exams, this topic is asked as "what reliefs can a Consumer Commission grant", and as a problem on a defective product with a claim for money. The usual trap is to forget compensation for mental agony and the power to award punitive damages.

Legal provision

• Section 39(1): findings and reliefs of the District Commission. Sections 49 and 59 apply the same procedure and reliefs to the State and National Commissions.
• Section 38(8): interim orders.
• Section 39(2): sums obtained under section 39(1) are credited to a prescribed fund.
• Sections 40, 50 and 60: review.
• Sections 41, 51 and 67: appeals, with a deposit of 50 per cent.
• Sections 71 and 72: enforcement as a decree and the penalty for non-compliance.
• Sections 74 to 81: settlement through mediation.
• Sections 20 and 21: reliefs by the Central Authority: recall of goods, refund and discontinuation.

Meaning and definition

A remedy is the relief that the law gives to a person whose right has been violated. Under the Consumer Protection Act, the remedy is the order that a Commission makes when it is satisfied that the goods suffer from a defect, or that the allegations about services, unfair trade practices or product liability are proved.

Detailed explanation

Step 1: The reliefs under section 39(1)

The Commission may direct the opposite party to do one or more of the following:

1. remove the defect pointed out by the appropriate laboratory from the goods;
2. replace the goods with new goods of similar description free from any defect;
3. return the price or charges paid, along with interest as decided by the Commission;
4. pay compensation for any loss or injury suffered due to the negligence of the opposite party, with power to grant punitive damages in a fit case;
5. pay compensation in a product liability action under Chapter VI;
6. remove the defects in goods or deficiencies in services;
7. discontinue the unfair trade practice or restrictive trade practice and not repeat it;
8. not offer hazardous or unsafe goods for sale;
9. withdraw hazardous goods from sale;
10. cease to manufacture hazardous goods and desist from offering hazardous services;
11. pay a sum, which cannot be less than 25 per cent of the value of the defective goods sold or services provided, where a large number of consumers who cannot conveniently be identified suffered loss;
12. issue a corrective advertisement to neutralise a misleading advertisement at the opposite party's cost;
13. pay adequate costs to the parties; and
14. cease and desist from issuing any misleading advertisement.

Step 2: Compensation and its heads

• Compensation covers loss or injury caused by negligence. This includes the direct loss, medical costs, and extra expense that the consumer had to bear.
• In Lucknow Development Authority v. M.K. Gupta, the Supreme Court held that the power to award compensation is not limited to direct financial loss. It extends to harassment and mental agony. The Court ordered interest on the amount deposited, possession of the flat or refund of the estimated cost of the incomplete work, and Rs 10,000 for the mental harassment.
• In SpiceJet Ltd. v. Ranju Aery, the family claimed a refund of the Rs 20,000 fare with 12 per cent interest, reimbursement of Rs 80,885 for the replacement flight, Rs 1.5 lakh for mental harassment and Rs 22,000 for litigation costs. The District Forum ruled in their favour, and the State Commission and the National Commission upheld the order.
• In Spring Meadows Hospital v. Harjot Ahluwalia, the Supreme Court held that the child and his parents are both consumers, and that each can be compensated on a different head.

Step 3: Punitive damages

The proviso to section 39(1)(d) gives the Commission power to grant punitive damages in such circumstances as it deems fit. They punish the wrongdoer and deter others. They are over and above compensation.

Step 4: Class relief

• Where a large number of consumers who cannot be conveniently identified have suffered loss, the Commission can order a sum of at least 25 per cent of the value of the defective goods or services sold. The amount goes to a prescribed fund (section 39(2)).
• One or more consumers with the same interest can file a complaint on behalf of all (section 35(1)(c)).
• The Central Authority can recall goods and order refunds for all purchasers (section 20).

Step 5: Interim orders and review

• While the complaint is pending, the Commission can pass such interim orders as are just and proper (section 38(8)).
• It can review its own order for an error apparent on the face of the record (section 40).

Step 6: Settlement

Parties may settle through mediation. A settlement is recorded as an order of the Commission, and no appeal lies against it.

Step 7: Enforcement and appeal

• An order is enforced like a civil court decree (section 71).
• Failure to comply is punishable with imprisonment of one month to three years, or a fine of Rs 25,000 to Rs 1 lakh, or both (section 72).
• Appeals lie in 45 days to the State Commission, then 30 days to the National Commission and the Supreme Court, with a deposit of 50 per cent.

Step 8: Remedies outside the Commission

• A civil suit, since the Act is in addition to other laws (section 100).
• A criminal complaint for offences such as adulteration, spurious goods and misleading advertisements (sections 89 to 91).
• Compensation under the Motor Vehicles Act for road accidents, where a vehicle is involved.

1. 1. Complaint provedThe defect, deficiency, unfair practice or product liability is shown.
2. 2. Order under section 39Repair, replace, refund with interest, compensation, discontinue, withdraw, corrective advertisement, costs.
3. 3. Extra reliefPunitive damages in a fit case. At least 25 per cent where many consumers cannot be identified.
4. 4. Appeal or complianceAppeal within 45 or 30 days with a 50 per cent deposit, or comply.
5. 5. EnforcementExecution as a decree, and penalty of one month to three years or a fine for non-compliance.

Don't confuse: compensation and punitive damages

Point	Compensation	Punitive damages
Purpose	To make good the consumer's loss	To punish and deter
Basis	Loss or injury caused by negligence	Circumstances that the Commission thinks fit
Section	39(1)(d)	Proviso to 39(1)(d)

Common mistakes

• Listing only refund and replacement. Section 39 lists fourteen reliefs.
• Forgetting interest on the price returned.
• Forgetting compensation for mental agony (Lucknow Development Authority v. M.K. Gupta).
• Giving the 1986 figure of five per cent for class relief. The 2019 Act says at least 25 per cent.
• Forgetting that a mediation settlement cannot be appealed.

Apply it

Leading case laws

• Lucknow Development Authority v. M.K. Gupta (1994)

  Facts. An allottee deposited money for a flat and did not get possession on time.

  Principle. Compensation extends to harassment and mental agony. Interest, possession or refund and Rs 10,000 were ordered.

  Significance. Purposive reading of compensation.

• SpiceJet Ltd. v. Ranju Aery (2017)

  Facts. An airline cancelled a connecting flight and refused a refund. The family bought a costlier replacement.

  Principle. The family was entitled to a refund, reimbursement of the extra cost and compensation.

  Significance. Reliefs in an air travel dispute.

• Spring Meadows Hospital v. Harjot Ahluwalia (1998)

  Facts. A minor patient was left in a vegetative state after an injection given without a sensitivity test.

  Principle. The child and the parents may each be awarded compensation on a different head.

  Significance. Separate heads of compensation.

How to write this answer in the exam

Key points to remember

• Section 39(1) lists the reliefs: repair, replace, refund with interest, compensation, and more.
• Compensation includes harassment and mental agony.
• Punitive damages can be granted in a fit case.
• Class relief: at least 25 per cent of the value of the goods or services.
• Non-compliance: imprisonment of one month to three years, or a fine of Rs 25,000 to Rs 1 lakh.

Quick self-test

Related topics

• Defects in goods and deficiency in services
• Consumer Disputes Redressal Commissions: Jurisdiction and Powers
• Continuous cause of action
• Mediation: Empanelment of Mediators, appointment, duties and settlement of disputes