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Table of Contents
Introduction Chapter 1: The basics Chapter 2: How to? Chapter 3: The devilish details Chapter 4: A photo tour Chapter 5: The e-commerce problem Chapter 6: Conclusion About Akosha
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About this sign Weve included some useful practical tips for you. Even if you are skimming through this e-book, do make it a point to read the information given against this sign.
Introduction
Consumer forums are unofficially known as consumer courts. We have used these terms interchangeably.
Consumer courts are, by design, supposed to be the easiest and most accessible courts in the country. The whole idea behind having consumer forums and consumer courts as separate limbs of the otherwise uniform judiciary is to ensure that consumer issues are resolved promptly and efficiently, without being trapped by the backlog of regular cases and complicated procedures. Simplicity in procedure is the biggest USP of consumer courts and consumer forums. However, in the absence of proper information, most aggrieved consumers are wary of approaching the consumer courts. Through this e-book, we shall demystify the working of consumer forums in the country and answer common questions that concern an average consumer when he wants to file a complaint with a consumer forum.
2. Alternatively, you can register your complaint on online forums like Akosha (which escalates your complaint to the company) or tweet about it on Twitter. Several brands are active on online forums and social media and you might get a prompt response with this method.
Dont confuse online complaint forums with the actual real world consumer courts. These forums trick you into believing that you are filing the complaint with a government sanctioned consumer court.
3. If you have a complaint in a sector which has a ombudsman (like banking or insurance) or other authorities (like TRAI for telecom sector), you could first approach such authorities for redressal of the complaint before approaching a consumer forum. It is important to note that different geographical sectors may have different Ombudsmen and hence make sure you are addressing the correct Ombudsman.
The main point is that consumer forums are a consumers last resort , and should be approached after every other source and method of redressal is exhausted.
the nature of the case, attitude of the companys lawyers, smooth working of the consumer forum (judges have been
appointed etc.),
existing backlog in that consumer court, quality of documentation produced at the time of filing the case
etc.
Send a notice
You should send a letter to the company informing that if they are unable to resolve your complaint, youd be forced to approach a consumer forum. It is ideal to specify a time limit within which youd like them to settle your grievance (usually 15 days is considered adequate).
Dont threaten or abuse and state what you would like them to do exactly. Everybody loves compensation but be practical in India, no one will any real compensation.
6. Submit the complaint and court fee to the receiving clerk in the consumer court who will give you a date for the admission hearing, and a complaint reference number. 7. At the admission hearing, you will be informed whether your case is fit for acceptance or not. If accepted, you will be given a date for the next hearing of your case. 8. The court will send a notice with a copy of your complaint to the opposite party, stating that the opposite party must reply within 30 days, and asking them to attend the hearing. 9. The hearings will continue till the matter is decided. 10. The courts final order will be sent to all the parties by registered post.
It is important to attend the hearings, else the matter may be decided ex-parte, meaning in the absence of the party, which could leave you at a big disadvantage.
Total value of goods or services and the compensation claimed District Forum (1) (2) (3) (4) Up to Rs. 1 lakh Rs. 1 lakh up to Rs. 5 lakhs Above Rs. 5 lakhs up to Rs. 10 lakhs Above Rs. 10 lakhs - up to Rs. 20 lakhs State Commission (5) (6) Above Rs. 20 lakhs - up to Rs. 50 lakhs Above Rs. 50 lakhs - up to Rs. 1 crore National Commission (7) Above Rs. 1 crore
Fee payable
Rs.2000 Rs.4000
Rs.5000
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The Consumer Protection Rules, 1987 provides for two ways of payment of court fees but the situation in the forums across the country varies in terms of practice.
Different consumer courts might insist on different ways of paying of consumer court fee. It is advisable to call the court and check which method they prefer to avoid repeated trips, delays and frustration.
For example, the Central Delhi District Forum insists that customers pay only using a Postal Order (so if you went in there with a DD, there is a high chance youd be disappointed even though the law gives you the right to pay using a DD). Some courts may even allow the payment of court fees in form of a challan available at the forum or even cash. So, before preparing a draft or postal order, do check on the payments accepted by the consumer forum where you are filing your complaint.
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Stage Checklist
I DRAFTING OF COMPLAINT
The Defect/Deficiency in services should be stated clearly Check whether your complaint is within 2 years from the
date when the cause of action arose, if it is more than 2 years then prepare a statement explaining why the delay should be excused
II
Copies
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Check that the Annexures are page numbered Check that an Affidavit by the complainant attested by an
oath commissioner has been attached
Consumer Complaint should be signed by the complainant and supported by a notarised attested affidavit with 1+3 sets + Number of Opposite Parties. (with File cover). While it is true that drafting a complaint is not technical and can be done by a consumer without professional assistance, a professional lawyer or someone on the team at Akosha may be more adept and efficient at drafting such a complaint - this may be a good option if you want to save yourself some hassle and time.
Dont be intimidated by the drafting of consumer complaint. If you dont have the time, seek help.
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National Commission is the apex consumer dispute redressal body. The consumers can approach these forums based on:
Territorial Jurisdiction- The consumers can approach the consumer court located in the place where the companys office is or where it carries on business or where the cause of action arose.
Pecuniary Jurisdiction- The consumers have to approach the consumer courts based on the monetary value of their suit which
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usually refers to the amount involved in dispute. This jurisdiction is decided as follows: Where the value of goods or services and the compensation Forum District Forum State Commission National Commission claimed is Upto Rs. 20,00,000 Rs.20,00,000-Rs.1,00,00,000. Exceeds Rs.1,00,00,000
The companys head office is in Mumbai but I live in Delhi! What can I do?
If the company you want to complain against is situated in your city, that would make matters simple you would have to file your complaint at the District Forum under whom the companys office falls. However, a lot of times, this is not true. For example: Anita, a resident of Gurgaon, who wanted to file a complaint against an auto-maker (which is based out of Aurangabad) went at the District Forum in Gurgaon. The people at the District Forum told her that she would not be able to get the complaint admitted in Gurgaon unless one of the opposite parties was in Gurgaon. Therefore, the only practical option left to her was to also name the local Skoda service center in Gurgaon as a party to the complaint and got her complaint admitted in Gurgaon itself.
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permission of the Forum where you intend to file the complaint, or the opposite parties who do not reside or carry on business in the place you intend to file agree to the jurisdiction of this forum.
As we have mentioned earlier, jurisdiction tends to get complicated for more reasons than one and hence enlisting professional help is always a good idea.
Do I need to send a notice to the company before filling a complaint against it?
It is not compulsory to send a notice to the company before filing the complaint with the District Forum. There is no statutory requirement for the same under the Consumer Protection Act. In urgent circumstances, the consumers can directly file a complaint in the Consumer Court. However, as best practice, one should send a notice to the company informing it about the grievance before filing a formal complaint against the company.
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What is the time period within which a complaint can be filed in a consumer forum?
As per the Consumer Protection Act, the District Forum, the State Commission or the National Commission cannot admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. Otherwise, a complaint is barred by limitation and cannot be filed in a consumer forum. However, such a delay can be condoned, if the complainant shows that he had sufficient cause for not filing the complaint within such period. Of course, you should file your complaint as promptly as possible once it becomes clear that all other means of its resolution have been exhausted.
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Anita (name changed), who lives in Bengaluru, had ordered a mobile phone from online electronics retailer, Timtara, but it was never delivered despite the full payment being made. She, then, filed a complaint at the local consumer forum in Bengaluru, which, however, refused to admit it. Instead, she was asked to file it in Noida, Uttar Pradesh , where Timtaras registered office is located. Anita had to forego the idea, not only of filing the complaint (there was no way she could have gone to Noida for that), but also recovering the money she had paid to Timtara. The rise and fall of Timtara, culminating in the arrest of its founder and CEO just over a month ago, has opened a can of worms as far as the ecommerce sector is concerned. It has even generated a debate on all what is wrong with this ecosystem. However, amidst all this, there is one major concern that has been overlooked the application of the Consumer Protection Act with respect to e-commerce transactions, especially pertaining to the jurisdiction clause.
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The case illustrated above is just one of the hundreds of complaints against Timtara that were filed with Akosha alone. In all such cases, whenever buyers approached the concerned local consumer forum, they were more often than not told to file their complaint in Noida, which is where Timtaras registered office happened to be loc ated. The story does not differ drastically in cases involving other e-commerce players either. Whenever a consumer faces an issue with an e-commerce company and wishes to file a complaint at a consumer forum, she/he very often ends up confronting this dilemma of jurisdiction: Where to file the complaint?
Virtual Jurisdiction
With e-commerce in India growing annually by over 57 per cent and expected to touch $8.8 billion by 2016 as per projections by Forrester Research Inc, a leading global research and advisory firm one should not be surprised to find the growth rate of complaints also keeping pace. From our own analysis of e-commerce complaints received on the Akosha platform, these are growing by 19 per cent quarter on quarter. Out of the 11,980 complaints received by Akosha for the e-commerce sector in the January-March 2013 quarter, about 58 per cent related to deficiency in delivery, while 29 per cent had to do with refunds, the balance 13 per cent concerning other issues. The bulk of these were registered by consumers in the metros, with Delhi topping the list. However, despite the urban tilt, the geographical distribution of the complaints is diverse enough to validate concerns regarding the misapplication of the jurisdiction clause. The Consumer Protection Act, by itself, is not very ambiguous, though. It clearly lays down that a consumer has to file a complaint in the place where the company resides or carries on business.
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Alternatively, she/he can also file it in the place where the cause of action arose, that is, where the issue or grievance arose. However, cause of action is a complicated legal concept something that is difficult to understand, or simply inconvenient to grapple with, for the consumer forum registrars and judges. In the case of the e-commerce sector, which caters to consumers across the country irrespective of an online retailers geographical location, this becomes hugely problematic. A lot of consumers are told by the relevant registrar or the judges that their complaints cannot be accepted because the companys office does not lie within the said jurisdiction. That is quite similar to the police refusing to register an FIR because it falls outside their jurisdiction. One practical expedient that some consumers use is to make a local branch, service centre or even a warehouse (in the case of an ecommerce company) party to the complaint and, then, get it admitted at the local consumer forum. When the legislature drafted the jurisdiction clause in the Consumer Protection Act, they tried to balance the burden on the companies with that on the consumers. While it would be unaffordable for a company to represent itself everywhere thereby justifying the customer having to file the complaint in the place where it did business the cause of action concept, at the same time, allowed wriggle room for consumers.
It is this wriggle room that is now squeezed by non-application of mind by consumer forums.
Lost Opportunity
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The Consumer Protection Amendment Bill, 2011, which was introduced in the Lok Sabha last December, could have proposed an amendment to Section 11 of the Act that deals with jurisdiction. This would have incorporated a separate jurisdiction clause directed at the e-commerce sector, taking into consideration its unique nonterritorial nature. Such a clause should have clearly laid down that in e-commerce cases, a complaint should be filed where the cause of action arises, irrespective of the physical location of the company concerned. This would have been a perfect, even though overly legislative, redressal of an issue that is already a major problem for Indian consumers making online purchases. Unfortunately, the Bill has already been tabled and referred to the Standing Committee and it looks as though e-commerce consumer hopes have been dashed. Another way out could be to have the National Consumer Disputes Redressal Commission lay down clear directives in this regard, clarifying that cause of action be given precedence when dealing with jurisdiction issues specific to e-commerce complaints. In the absence of these, Indian e-commerce consumers will have little to look forward to in terms of redressal of their complaints. (The author is founder of www.akosha.com, an online consumer complaints resolution platform).
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Chapter 6: Conclusion
While we have tried to address the basics in as much detail as possible, every consumer complaint is unique and may have issues that need to be addressed individually. However, this guide shall give every consumer a fair idea on how to get started and things that should be kept in mind when planning to file a complaint with a consumer forum.
If you have suggestions on improving this e-book, please write to feedback@akosha.com. If you liked this e-book, please share copiously. If you have a complaint, give us a try just file your complaint on www.akosha.com.
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About Akosha 3,50,000+ Complaints 10,00,000+ Updates 1250+ Daily customers 185+Brands 80+ Team 2010 Founded
Address: E-40/7, Second Floor, Coraza Technologies Private Limited, Okhla Industrial Area, Phase 2, New Delhi - 110020 Landline 011 64643453 www.akosha.com Design by Radhika Dutt All rights reserved. First Edition, September 2013 For the sake of repetition: This book does not constitute legal advice.
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