Mumbai’s consumer courts hand out peanuts after years of battle
Despite winning his consumer case against the Narsee Monjee Institute of Management Studies (NMIMS), Mahavir Chopda, 27, is distraught. The court ordered the institute to pay back his admission fees of Rs1 lakh, with interest, since he had opted out of the institute in 2006. But NMIMS paid only Rs2,000 by way of costs. The court held that an interest of 12% would suffice as compensation.
In Mumbai, the consumer is not king, at least the ones who move court. Even in favourable orders, the courts more often than not grant paltry compensation.
“It was the court’s responsibility to restore the status quo and penalise the institution which had wronged me. My situation is like that of a pickpocket who returns my wallet, but is not arrested by the police. NMIMS lost nothing despite the case,” said Chopda, who plans to appeal for an enhancement of the compensation.
Increasingly, consumer courts in the city, meant for the benefit of the people, are proving to be deficient, say experts. While the Consumer Protection Act is benevolent legislation, meant to protect the rights of consumers, the people are losing their confidence in the court.
“As far as Mumbai is concerned, consumer courts have been ridiculous. The orders often defy logic or a sense of justice, which a person can follow as precedent. The courts grant compensation as if they are doing the consumers a favour while totally neglecting the actual loss suffered by the consumer,” said consumer court lawyer Anand Patwardhan.
Take the case of Chandrakant Anandpura, 84. The old man and his wife had taken a Jet Airways flight to Udaipur in 2001. The plane did not have air-conditioning (AC) and was extremely suffocating. However, the consumer court, while advising the airlines to take care of AC in the future, dismissed the complaint on technical grounds in 2005.
“Despite proving that there was no AC in the airplane, the court let the airlines go scot-free. In comparison, in the US, they paid over $6 lakh to a consumer whose hand was burned by hot coffee. Here, we suffer and no one pays any attention,” said Anandpura. He cited a complaint he had filed against MTNL about 10 years ago. The case lasted four years. And the compensation granted was merely Rs750.
Anandpura, who writes columns on consumer-related issues in two Gujarati newspapers every week, said: “When people seek my advice, I tell them not to move consumer court and try compromise. What is the point? The case will go on for four or five years and then the order will not even be worth it.”
The compensation hardly covers even photocopying costs. Advocate Uday Wavikar said: “Legal costs fixed by the Bombay Bar Association is a minimum of Rs20,000 for a senior lawyer and Rs16,000 for a junior lawyer. Even these are not covered in the compensation.”
In Mumbai, the consumer is not king, at least the ones who move court. Even in favourable orders, the courts more often than not grant paltry compensation.
“It was the court’s responsibility to restore the status quo and penalise the institution which had wronged me. My situation is like that of a pickpocket who returns my wallet, but is not arrested by the police. NMIMS lost nothing despite the case,” said Chopda, who plans to appeal for an enhancement of the compensation.
Increasingly, consumer courts in the city, meant for the benefit of the people, are proving to be deficient, say experts. While the Consumer Protection Act is benevolent legislation, meant to protect the rights of consumers, the people are losing their confidence in the court.
“As far as Mumbai is concerned, consumer courts have been ridiculous. The orders often defy logic or a sense of justice, which a person can follow as precedent. The courts grant compensation as if they are doing the consumers a favour while totally neglecting the actual loss suffered by the consumer,” said consumer court lawyer Anand Patwardhan.
Take the case of Chandrakant Anandpura, 84. The old man and his wife had taken a Jet Airways flight to Udaipur in 2001. The plane did not have air-conditioning (AC) and was extremely suffocating. However, the consumer court, while advising the airlines to take care of AC in the future, dismissed the complaint on technical grounds in 2005.
“Despite proving that there was no AC in the airplane, the court let the airlines go scot-free. In comparison, in the US, they paid over $6 lakh to a consumer whose hand was burned by hot coffee. Here, we suffer and no one pays any attention,” said Anandpura. He cited a complaint he had filed against MTNL about 10 years ago. The case lasted four years. And the compensation granted was merely Rs750.
Anandpura, who writes columns on consumer-related issues in two Gujarati newspapers every week, said: “When people seek my advice, I tell them not to move consumer court and try compromise. What is the point? The case will go on for four or five years and then the order will not even be worth it.”
The compensation hardly covers even photocopying costs. Advocate Uday Wavikar said: “Legal costs fixed by the Bombay Bar Association is a minimum of Rs20,000 for a senior lawyer and Rs16,000 for a junior lawyer. Even these are not covered in the compensation.”
Consumer court asks infertility clinic to pay Rs15,000 compensation to patient
A consumer court has ordered an infertility clinic to pay a compensation of Rs15,000 to a patient for failing to maintain her treatment record which amounted to "deficiency in service."
"The institute gave the treatment to the patient against payment but no treatment record like x-ray, ultrasound was brought on record which they claimed had been carried out, a case of unfair trade practice and deficiency in service is clearly made out," the Delhi District Consumer Forum (West Delhi) said.
The forum, comprising president JP Sharma and member Premlata, ordered the capital-based Infertility Research Institute to pay a compensation of Rs15,000 to complainant or her harassment for deficiency in service by not treating her successfully.
The complainant approached the forum, seeking compensation from the institute for its failure to treat her successfully. She said that tall claims were made by the clinic in an advertisement regarding successful treatment of such patients.
The forum noted the clinic had not recorded any reason for the unsuccessful treatment of the patient. The clinic sought dismissal of the complaint, claiming there was no fee charged from the patient.
Disagreeing with the clinic's contention, the Forum said, "No doubt the patient has not been able to place receipt for total payment but the fact remains that she should have paid the treatment charges demanded from time to time as no institute is going to treat an infertile lady free of cost."
"It cannot be lost sight of that the complainant in categorical terms had pleaded that she had not been issued any receipt for the payment received by the institute," the Forum said.
The consumer court further observed that the clinic had not placed on record the extract of their account books to show as to how much amount they had received from the patient.
The forum further said that the advertisement, which was under the heading "married couple intending to have an issue", gave an impression to the people that they can get the infertility treated successfully.
Arora got herself treated with the infertility institute in 2006 but the treatment was unsuccessful as against the claim made in advertisement, published in a Hindi daily.
Uttar Pradesh, Maharashtra lead in delaying consumer justice
If you are planning to move consumer court to get speedy redressalto your dispute, try other methods because consumer courts in the country are reeling under huge backlog of over 3.5 lakh cases.
The latest figures compiled by ministry of consumer affairs, food and public distributions and accessed by DNA reveal that Uttar Pradesh and Maharashtra top the list of pending cases in consumer courts.
Uttar Pradesh and Maharashtra have 1,12,026 and 35,771 cases pending respectively.
They are followed by Haryana, Rajasthan and Gujarat with 28,426, 26,768 and 23,366 cases respectively. Karnataka has 8,942 pending cases.
Consumer experts have attributed the backlog to vacancies in district forums and state commissions. Currently, 311 vacancies for the posts of president and members are to be filled.
Consumer expert prof Sriram Khanna blamed companies more than anyone else for this.
He told DNA “It is an indicator which shows several companies dealing in consumer goods do not care for their consumers. If companies treat their consumers well, there would be no need to approach consumer courts.”
On whether more consumer courts should come up in country to reduce the burden, he said, “Increasing consumer courts is not a solution, because the main problems lies with the companies. They should have an internal system to deal with every complaint.”
However, a consumer activist working as a consultant in consumer guidance information and helpline SK Virmani said, “Due to entry of lawyers in consumer courts, its purpose has affected a lot. They do everything to drag a case and make things difficult for consumer. There should be a law to restrict their.”
In 2005, consumer affairs ministry started projects like national consumer helpline and consumer online resource and empowerment centre to reduce the burden of consumer courts.
However as per an expert, “Due to less infrastructure and staff these projects could not achieve there target”.
Uttar Pradesh is not only tops the list of pending cases it also tops the number of cases filed in consumer courts since inception.
While consumer courts in Uttar Pradesh have registered a total 5,71,909 cases, Rajasthan and Maharashtra followed it with 2,99,254 and 2,87,430 cases respectively. States such as Delhi and Haryana follow with 2,45,843 and 2,38,177 cases filed so far.
The latest figures compiled by ministry of consumer affairs, food and public distributions and accessed by DNA reveal that Uttar Pradesh and Maharashtra top the list of pending cases in consumer courts.
Uttar Pradesh and Maharashtra have 1,12,026 and 35,771 cases pending respectively.
They are followed by Haryana, Rajasthan and Gujarat with 28,426, 26,768 and 23,366 cases respectively. Karnataka has 8,942 pending cases.
Consumer experts have attributed the backlog to vacancies in district forums and state commissions. Currently, 311 vacancies for the posts of president and members are to be filled.
Consumer expert prof Sriram Khanna blamed companies more than anyone else for this.
He told DNA “It is an indicator which shows several companies dealing in consumer goods do not care for their consumers. If companies treat their consumers well, there would be no need to approach consumer courts.”
On whether more consumer courts should come up in country to reduce the burden, he said, “Increasing consumer courts is not a solution, because the main problems lies with the companies. They should have an internal system to deal with every complaint.”
However, a consumer activist working as a consultant in consumer guidance information and helpline SK Virmani said, “Due to entry of lawyers in consumer courts, its purpose has affected a lot. They do everything to drag a case and make things difficult for consumer. There should be a law to restrict their.”
In 2005, consumer affairs ministry started projects like national consumer helpline and consumer online resource and empowerment centre to reduce the burden of consumer courts.
However as per an expert, “Due to less infrastructure and staff these projects could not achieve there target”.
Uttar Pradesh is not only tops the list of pending cases it also tops the number of cases filed in consumer courts since inception.
While consumer courts in Uttar Pradesh have registered a total 5,71,909 cases, Rajasthan and Maharashtra followed it with 2,99,254 and 2,87,430 cases respectively. States such as Delhi and Haryana follow with 2,45,843 and 2,38,177 cases filed so far.
Consumer court fines ambulance companies for service denial
Imagine a loved one getting a heart attack in middle of the night and you being declined the promised services by an emergency ambulance helpline you have enrolled with for times like these.
Pankaj B Cheda went through a similar experience and thus dragged the Tops Line to The Mumbai Suburban District Additional Consumer Dispute Redressal Forum complaining of dissatisfaction with their services.
Pankaj was taken by surprise on December 18, 2004, when he realised at the last moment that the medical service he was banking on in an emergency for his father was not foolproof.
His father Bhavaniji Cheda suffered a heart attack at midnight and having enrolled for the emergency ambulance service of Tops Line he called them for assistance. Though the ambulance came in time it was not equipped with the first aid services.
Pankaj’s complaint reads that, “There was no response from their control room for providing us the necessary assistance for about 40 minutes while we were rushing to the hospital.”
According to the complaint Bhavaniji Cheda had paid Rs900 to Anil Kamble, a representative of Tops Line on 26 October 2004 to avail the service. But when his son called the control centre, he was horrified to hear that their name and details was not registered.
However, if they paid Rs6,000 immediately they would be given the required service which Pankaj declined.
They gradually found out that this service could be availed by an annual EMI of 1200 rupees per month which they were kept unaware of before the incident.
When they sent a complaint to the company they only got an apology letter.
Pankaj B Cheda went through a similar experience and thus dragged the Tops Line to The Mumbai Suburban District Additional Consumer Dispute Redressal Forum complaining of dissatisfaction with their services.
Pankaj was taken by surprise on December 18, 2004, when he realised at the last moment that the medical service he was banking on in an emergency for his father was not foolproof.
His father Bhavaniji Cheda suffered a heart attack at midnight and having enrolled for the emergency ambulance service of Tops Line he called them for assistance. Though the ambulance came in time it was not equipped with the first aid services.
Pankaj’s complaint reads that, “There was no response from their control room for providing us the necessary assistance for about 40 minutes while we were rushing to the hospital.”
According to the complaint Bhavaniji Cheda had paid Rs900 to Anil Kamble, a representative of Tops Line on 26 October 2004 to avail the service. But when his son called the control centre, he was horrified to hear that their name and details was not registered.
However, if they paid Rs6,000 immediately they would be given the required service which Pankaj declined.
They gradually found out that this service could be availed by an annual EMI of 1200 rupees per month which they were kept unaware of before the incident.
When they sent a complaint to the company they only got an apology letter.
Electric eye keeps watch on consumer courts
An unusual scene played out in the state consumer disputes redressal commission this week. An administrative officer of the court was seen communicating with a staffer via webcam, asking where the judge was. This at 3.30pm — just three hours before closing time.
When the staffer mumbled something about lunch break, the officer asked him: “What time is the lunch break in consumer courts? You either save yourself or your boss.”
The staffer finally disclosed that the judge had left for home after lunch time as the board had been discharged.
All 43 consumer courts in the state have been linked up through webcams, mike and software to the state commission, their administrative body. A source said court staff come on time for fear of conference with the administrative authorities, who can record statements online and take action.
Administrative officers now conduct random checks on courts to ensure discipline among the judges and staff. They can also conduct online inquiries related to consumer complaints against the courts.
Two months ago, state commission president SB Mhase started the computerisation drive. All orders, records of hearings, and daily board of cases are available online.
“Once an order/roznama is uploaded, one can be sure it will not be tampered with,” a source said.
While the commission is using central government funds, it has appealed to the state for more money for further modernisation.
For two months, the commission has also been conducting computer-training workshops for consumer court staff. The next workshop will be held in Nagpur on August 14 for the courts in the Vidharbha region.
When the staffer mumbled something about lunch break, the officer asked him: “What time is the lunch break in consumer courts? You either save yourself or your boss.”
The staffer finally disclosed that the judge had left for home after lunch time as the board had been discharged.
All 43 consumer courts in the state have been linked up through webcams, mike and software to the state commission, their administrative body. A source said court staff come on time for fear of conference with the administrative authorities, who can record statements online and take action.
Administrative officers now conduct random checks on courts to ensure discipline among the judges and staff. They can also conduct online inquiries related to consumer complaints against the courts.
Two months ago, state commission president SB Mhase started the computerisation drive. All orders, records of hearings, and daily board of cases are available online.
“Once an order/roznama is uploaded, one can be sure it will not be tampered with,” a source said.
While the commission is using central government funds, it has appealed to the state for more money for further modernisation.
For two months, the commission has also been conducting computer-training workshops for consumer court staff. The next workshop will be held in Nagpur on August 14 for the courts in the Vidharbha region.
Consumer court to have its own building in Shivajinagar
If everything goes well, the Pune District Consumer Redressal Forum (consumer court), which presently operates from a rented building at Bibvewadi Corner on Pune-Satara Road, will have its own building in Shivajinagar.
The consumer court’s demand for a plot to construct its own building, where it can serve the litigants and visitors in a better way, is pending since the court started functioning in 2001.
Speaking to DNA, a senior consumer court officer said that recently the revenue and forest departments communicated to the court that a 631.16-square-metre plot, located in survey number 34 at the Shivajinagar godown, had been allotted.
Last year, divisional commissioner Dilip Band and district collector Chandrakant Dalvi sent official letters to the revenue department after the consumer court authorities formally demanded land for setting up its own building.
The revenue department, which is in possession of the godown land, issued the order for diverting the plot on October 30, to the food and civil supply department under which the consumer court functions.
The letter stated that the land was allotted for exclusive use of the consumer court and with the help of the land mapping department the plot should be identified and ascertained whether it is sufficient for the consumer court.
According to the court officer, currently the consumer court is paying Rs50,000 as rent per month. During the last five years 13,877 cases were filed in the consumer court, out of which 12,247 were successfully disposed of.
The consumer court’s demand for a plot to construct its own building, where it can serve the litigants and visitors in a better way, is pending since the court started functioning in 2001.
Speaking to DNA, a senior consumer court officer said that recently the revenue and forest departments communicated to the court that a 631.16-square-metre plot, located in survey number 34 at the Shivajinagar godown, had been allotted.
Last year, divisional commissioner Dilip Band and district collector Chandrakant Dalvi sent official letters to the revenue department after the consumer court authorities formally demanded land for setting up its own building.
The revenue department, which is in possession of the godown land, issued the order for diverting the plot on October 30, to the food and civil supply department under which the consumer court functions.
The letter stated that the land was allotted for exclusive use of the consumer court and with the help of the land mapping department the plot should be identified and ascertained whether it is sufficient for the consumer court.
According to the court officer, currently the consumer court is paying Rs50,000 as rent per month. During the last five years 13,877 cases were filed in the consumer court, out of which 12,247 were successfully disposed of.
Consumer court punishes finance company
A private finance company was found guilty of forcibly taking possession of a vehicle from a customer by hiring musclemen, by a Sundergarh-based district consumer and redressal court, which directed it to pay Rs 1.65 lakh to the party immediately.
The court on Monday hearing the case filed by Uttam Kumar Gupta of Koida expressed displeasure over the action of the finance company in taking away the vehicle for default in paying instalments. Gupta took a loan of Rs 7.84 lakhs to purchase a tipper with a down payment of Rs 1.20 lakh in 2005.
Till December 2005, Gupta cleared Rs 5.28 lakh, but failed to pay some instalments. The company then took away the tipper and sold it to a third party without informing him. Consumer court president Bijoy Kumar Behera and member judges Sapan Kumar Pani and Sucheta Swain while delivering the judgement directed the company to pay Rs 1.20 lakh as down payment charges along with the permit and registration charges of the vehicle. It also directed payment of another Rs 10,000 for causing mental tension to Gupta.
The court on Monday hearing the case filed by Uttam Kumar Gupta of Koida expressed displeasure over the action of the finance company in taking away the vehicle for default in paying instalments. Gupta took a loan of Rs 7.84 lakhs to purchase a tipper with a down payment of Rs 1.20 lakh in 2005.
Till December 2005, Gupta cleared Rs 5.28 lakh, but failed to pay some instalments. The company then took away the tipper and sold it to a third party without informing him. Consumer court president Bijoy Kumar Behera and member judges Sapan Kumar Pani and Sucheta Swain while delivering the judgement directed the company to pay Rs 1.20 lakh as down payment charges along with the permit and registration charges of the vehicle. It also directed payment of another Rs 10,000 for causing mental tension to Gupta.
Delhi consumer court asks insurance company to pay Rs2.7 lakh claim
Residents of Senior Citizen Home Complex here have filed a case in the National Consumer Forum against the builder and maintenance contractors for not providing facilities as promised during the sale of flats.
"We have filed a case in the National Consumer Forum against the builder and maintenance contractors for not ensuring proper maintenance of elevators and other services in the complex," said SP Malhotra, general secretary of the Senior Citizen Home Complex Welfare Society.
Many residents have moved out of the complex as they cannot climb the stairs. Elevators were not installed in four blocks, while in other blocks poor maintenance of lifts caused several mishaps injuring a number of people.
Residents also held a protest today, Ishwar Chand, a resident of H-33 said, adding that the builder left the project unfinished. "We were promised medical facilities, mess, gym and yoga centre but none of them are available," he said.
"We have filed a case in the National Consumer Forum against the builder and maintenance contractors for not ensuring proper maintenance of elevators and other services in the complex," said SP Malhotra, general secretary of the Senior Citizen Home Complex Welfare Society.
Many residents have moved out of the complex as they cannot climb the stairs. Elevators were not installed in four blocks, while in other blocks poor maintenance of lifts caused several mishaps injuring a number of people.
Residents also held a protest today, Ishwar Chand, a resident of H-33 said, adding that the builder left the project unfinished. "We were promised medical facilities, mess, gym and yoga centre but none of them are available," he said.
SC stays consumer court's order against Air India
Air India on Thursday got reprieve from the Supreme Court which stayed a consumer court's order that asked the state-owned airline to publicise information relating to passenger interest, including those about flight delays and refreshments.
A Bench headed by Justice BN Agarwal, while staying the National Consumer Disputes Redressal Commission's interim order, sought reply from passengers Ajay Kalia and others on whose complaint directions were passed against Air India (now NACIL).
The Commission in its interim orders dated July 23 and August 22, 2008 and February 20, this year had asked the airline to publicise and implement the regulations in the
'Manual for Passenger Service,' According to the orders, the manual which is beneficial for the public at large, should be put up at prominent places at every airport in the country from where the airline operated and also publish a summary of the regulations in one or two paragraphs in a leading English daily within a period of three weeks.
Challenging the Commission's jurisdiction to pass such orders, Air India sought SC's intervention in deciding whether the manual, which is an internal guideline for ensuring that its staff work together as a well-knit cohesive team in their endeavour to provide safe and comfortable travel to passengers, was a public document.
"It is a well-settled proposition of law that internal guidelines have no statutory force and have no binding effect whatsoever," Air India said in its petition.
The petition further said displaying internal guideline would present a wrong picture and "would open a floodgate of unwarranted demands by the consumer, claiming the same to be their right, where it is a matter of contract".
According to Air India, the Directorate General of Civil Aviation, the regulatory authority, was for the first time bringing a Civil Aviation Requirement (CAR) on such facilities and would indicate certain mandatory and recommendatory procedures for passenger handling.
Thus, any such move to display any regulations should only be finalised after the directorate issued CAR to all the operators, the petition filed through Subramonium Prasad added. Air India senior counsel Mukul Rohtagi submitted that under Section 14 of the Consumer Protection Act 1986, the Commission or any other forum did not have power to pass interim relief without satisfying that the goods complained against suffered from any defects or till any allegations about the services in the complaint were proved.
Passengers Kalia and his family had boarded an Air India flight from Dubai to Delhi on January 2, this year. However, when the family reached Dubai airport they found that the flight was delayed by three hours due to dense fog.
A Bench headed by Justice BN Agarwal, while staying the National Consumer Disputes Redressal Commission's interim order, sought reply from passengers Ajay Kalia and others on whose complaint directions were passed against Air India (now NACIL).
The Commission in its interim orders dated July 23 and August 22, 2008 and February 20, this year had asked the airline to publicise and implement the regulations in the
'Manual for Passenger Service,' According to the orders, the manual which is beneficial for the public at large, should be put up at prominent places at every airport in the country from where the airline operated and also publish a summary of the regulations in one or two paragraphs in a leading English daily within a period of three weeks.
Challenging the Commission's jurisdiction to pass such orders, Air India sought SC's intervention in deciding whether the manual, which is an internal guideline for ensuring that its staff work together as a well-knit cohesive team in their endeavour to provide safe and comfortable travel to passengers, was a public document.
"It is a well-settled proposition of law that internal guidelines have no statutory force and have no binding effect whatsoever," Air India said in its petition.
The petition further said displaying internal guideline would present a wrong picture and "would open a floodgate of unwarranted demands by the consumer, claiming the same to be their right, where it is a matter of contract".
According to Air India, the Directorate General of Civil Aviation, the regulatory authority, was for the first time bringing a Civil Aviation Requirement (CAR) on such facilities and would indicate certain mandatory and recommendatory procedures for passenger handling.
Thus, any such move to display any regulations should only be finalised after the directorate issued CAR to all the operators, the petition filed through Subramonium Prasad added. Air India senior counsel Mukul Rohtagi submitted that under Section 14 of the Consumer Protection Act 1986, the Commission or any other forum did not have power to pass interim relief without satisfying that the goods complained against suffered from any defects or till any allegations about the services in the complaint were proved.
Passengers Kalia and his family had boarded an Air India flight from Dubai to Delhi on January 2, this year. However, when the family reached Dubai airport they found that the flight was delayed by three hours due to dense fog.
Consumer court gets tutorial to refund fees
In a relief to thousands of students studying in coaching institutes, a consumer forum in Delhi has held that they can seek a refund of fees if they decide to leave an institute without completing the course.
Though it was a Delhi consumer forum decision for coaching institute Brilliant Tutorials to refund Rs36,250 to a student who left the course midway due to health problems, it will have a bearing on hundreds of coaching institutes in the city-state.
Union human resource development minister Kapil Sibal had recently launched a tirade against private coaching institutes that have flourished and this judgment can be a trendsetter.
The court directed the institute to pay a compensation of Rs5,000 for harassment to the student and Rs2,000 as litigation cost.
In 2008, Kanishk had joined Brilliant for a two-year course, to prepare for competitive exams, and had paid the fees. However, after two months, he had to discontinue the classes due to health problems.
He approached the institute for a refund of the remaining half of the period and was assured it would be granted. However, when he didn’t get the money, he approached the court.
The institute told the forum that as per the terms of admission, fees once paid were not refundable. However, the forum said, “We have taken a consistent view that fees are bound to be refunded when such a service has not been availed.”
It also cited a judgment that said: “A student or a trainee may leave midstream if he finds the service deficient, substandard and non-yielding, and to tell him that fees once paid are not refundable was an unfair trade practice, as no service provider can take or charge the consideration of the service which it has either not given or has not been availed.”
The court said, “We find that the institute’s stand that fees once paid shall not be refundable was not tenable and they are liable to refund the fees on pro-rata basis for the period the complainant has not attended their coaching services.” It directed the institute to refund the fees and provide compensation within a month.
Though it was a Delhi consumer forum decision for coaching institute Brilliant Tutorials to refund Rs36,250 to a student who left the course midway due to health problems, it will have a bearing on hundreds of coaching institutes in the city-state.
Union human resource development minister Kapil Sibal had recently launched a tirade against private coaching institutes that have flourished and this judgment can be a trendsetter.
The court directed the institute to pay a compensation of Rs5,000 for harassment to the student and Rs2,000 as litigation cost.
In 2008, Kanishk had joined Brilliant for a two-year course, to prepare for competitive exams, and had paid the fees. However, after two months, he had to discontinue the classes due to health problems.
He approached the institute for a refund of the remaining half of the period and was assured it would be granted. However, when he didn’t get the money, he approached the court.
The institute told the forum that as per the terms of admission, fees once paid were not refundable. However, the forum said, “We have taken a consistent view that fees are bound to be refunded when such a service has not been availed.”
It also cited a judgment that said: “A student or a trainee may leave midstream if he finds the service deficient, substandard and non-yielding, and to tell him that fees once paid are not refundable was an unfair trade practice, as no service provider can take or charge the consideration of the service which it has either not given or has not been availed.”
The court said, “We find that the institute’s stand that fees once paid shall not be refundable was not tenable and they are liable to refund the fees on pro-rata basis for the period the complainant has not attended their coaching services.” It directed the institute to refund the fees and provide compensation within a month.
Consumer court’s balm for singed firm owners
The state consumer redressal commission has ordered an insurance company to pay Rs48 lakh to two proprietors of a firm who had suffered huge loss as their factory was gutted in a major fire in 2001.
The two proprietors - brother duo Amit Patel and Nimesh Patel - had filed a complaint before the state consumer redressal commission against New India insurance company as the latter had repudiated their compensation claim.
According to case details, the Patels owned a cotton mill at Jasdan in Rajkot district.
On June 11, 2001, the mill premises got burnt down from a major fire and they suffered huge losses in cotton and other stocks.
The mill was covered under a Rs40 lakh-policy of standard fire and special perils with the insurance company. However, the insurance company repudiated the claim for compensation on the several grounds including that the claimant has adopted fraudulent means to get claim.
The Patels then filed a complaint before the commission through their advocate Himanshu Thakkar, alleging that despite several communication, the terms and conditions of the policy was not provided to them by the company. The fire brigade has also given report that the fire had gutted the entire premises.
The insurance company contended the Patels’ claims stating that the benefit of the policy should be forfeited as the bills, photographs and fire brigade report produced by the claimant was fabricated.
However, after hearing both the sides, the two member commission comprising BH Joshi and GA Ahuja, ordered the insurance company to pay Rs18.39 lakh to Amit Patel and Rs29.14 lakh to Nimesh Patel with 6% interest from October, 11, 2002.
The two proprietors - brother duo Amit Patel and Nimesh Patel - had filed a complaint before the state consumer redressal commission against New India insurance company as the latter had repudiated their compensation claim.
According to case details, the Patels owned a cotton mill at Jasdan in Rajkot district.
On June 11, 2001, the mill premises got burnt down from a major fire and they suffered huge losses in cotton and other stocks.
The mill was covered under a Rs40 lakh-policy of standard fire and special perils with the insurance company. However, the insurance company repudiated the claim for compensation on the several grounds including that the claimant has adopted fraudulent means to get claim.
The Patels then filed a complaint before the commission through their advocate Himanshu Thakkar, alleging that despite several communication, the terms and conditions of the policy was not provided to them by the company. The fire brigade has also given report that the fire had gutted the entire premises.
The insurance company contended the Patels’ claims stating that the benefit of the policy should be forfeited as the bills, photographs and fire brigade report produced by the claimant was fabricated.
However, after hearing both the sides, the two member commission comprising BH Joshi and GA Ahuja, ordered the insurance company to pay Rs18.39 lakh to Amit Patel and Rs29.14 lakh to Nimesh Patel with 6% interest from October, 11, 2002.
Thane consumer forum head held for caste slur
The president of Thane consumer redressal forum, Shashikala Patil, has been booked by the Thane police for allegedly making casteist remarks about a pregnant lady staffer and abusing her.
According to complaints of the staffer, Pragati Tayade, 37, she was five weeks pregnant when the abuse took place and she subsequently suffered a miscarriage. Tayade is a record-keeper in the court and has a disability in one leg.
Patil, who was missing for two months, was finally arrested last week. The Thane city police have booked her and a ‘social worker’, Ganesh Joshi, under the Scheduled Caste and Scheduled Tribes (Prevention of Atrocities) Act and section 312 of the Indian Penal Code (for voluntarily causing miscarriage). In case of conviction, Patil faces a maximum punishment of seven years in prison; Patil is currently out on bail.
“Patil surrendered at the Thane city police chowky on March 10. She was later produced in the chief judicial magistrate court and released on bail by the sessions court,” said RS Tadvi, assistant commissioner of police, Naupada division.
As per Tayade’s FIR, on October 28, 2009, Patil deliberately removed the cushion on her seat and got into an argument with her. The FIR said that Patil insulted her about her disability and ‘low’ caste. Tayade wrote to the president of the state commission consumer disputes redressal, justice SB Mhase, the next day.
After the incident, on November 18, 2009, Patil and Joshi came to the court registrar’s office, where Patil allegedly told Tayade, “I don’t need to talk to a low caste like you. I am 96% Marathi. Get out of the room.”
Tayade told the police, “The next day I was so stressed at work that I couldn’tstop crying. I felt pain in my stomach and fainted. My superiors called for an ambulance. I realised that I had suffered a miscarriage,” Tayade told the police. Patil’s advocate Rahul Thakur argued that Tayade was unprofessional and had complained out of “bitterness”.
Justice BR Gavai, however, perused statements of witnesses who supported Tayade’s case and stated that no case was made out by Patil. Sources in the state commission said an enquiry had been initiated into the alleged incident.
According to complaints of the staffer, Pragati Tayade, 37, she was five weeks pregnant when the abuse took place and she subsequently suffered a miscarriage. Tayade is a record-keeper in the court and has a disability in one leg.
Patil, who was missing for two months, was finally arrested last week. The Thane city police have booked her and a ‘social worker’, Ganesh Joshi, under the Scheduled Caste and Scheduled Tribes (Prevention of Atrocities) Act and section 312 of the Indian Penal Code (for voluntarily causing miscarriage). In case of conviction, Patil faces a maximum punishment of seven years in prison; Patil is currently out on bail.
“Patil surrendered at the Thane city police chowky on March 10. She was later produced in the chief judicial magistrate court and released on bail by the sessions court,” said RS Tadvi, assistant commissioner of police, Naupada division.
As per Tayade’s FIR, on October 28, 2009, Patil deliberately removed the cushion on her seat and got into an argument with her. The FIR said that Patil insulted her about her disability and ‘low’ caste. Tayade wrote to the president of the state commission consumer disputes redressal, justice SB Mhase, the next day.
After the incident, on November 18, 2009, Patil and Joshi came to the court registrar’s office, where Patil allegedly told Tayade, “I don’t need to talk to a low caste like you. I am 96% Marathi. Get out of the room.”
Tayade told the police, “The next day I was so stressed at work that I couldn’tstop crying. I felt pain in my stomach and fainted. My superiors called for an ambulance. I realised that I had suffered a miscarriage,” Tayade told the police. Patil’s advocate Rahul Thakur argued that Tayade was unprofessional and had complained out of “bitterness”.
Justice BR Gavai, however, perused statements of witnesses who supported Tayade’s case and stated that no case was made out by Patil. Sources in the state commission said an enquiry had been initiated into the alleged incident.
Consumer court pulls up Kingfisher airline
The national consumer redressal body has pulled up Kingfisher Airlines for adopting an unfair trade practice by misinforming passengers about the airline they were flying by.
JK Mittal bought a Delhi-Bhubaneswar return ticket on a March 8 Kingfisher flight over the internet from the airline's website. He paid Rs 4,800 each way.
When he reached the airport, he was told at the check-in counter that Kingfisher Airlines did not have a flight between Delhi and Bhubaneswar. Mittal was asked to take an Air Deccan flight instead.
The ticket for an Air Deccan flight cost Rs 2,500 each way while Mittal had paid Rs 4,800, he pointed out when he approached the National Consumer Redressal Commission.
Mittal, a lawyer, contended in his petition that the trade practice adopted by Kingfisher Airlines was unfair and should be prevented. He demanded Rs 50 million as punitive damages, to be given to the Consumer Welfare Fund set up by the commission.
Kingfisher Airlines lawyer MN Krishnamani told the commission that if Mittal had suffered a loss, he should have gone to the district forum. He also described the Rs.50 million claim as "totally exaggerated".
In his interim order, National Consumer Disputes Redressal Commission president M.B. Shah said he was not going into the exaggeration or otherwise of the claim at this stage.
But he ordered the airline "not to indulge in such unfair trade practice. A copy of this order be also sent to Director General of Civil Aviation for appropriate action," said the commission.
Krishnamani had also said that Consumer Voice, an NGO, ought not to have joined the case as a party at the request of Mittal.
Rejecting this contention of the airline, the commission said: "This contention appears to be without any substance, because consumer organisations are required to take up such causes for preventing unfair trade practices and under the Consumer Protection Act they are entitled to file such complaints".
JK Mittal bought a Delhi-Bhubaneswar return ticket on a March 8 Kingfisher flight over the internet from the airline's website. He paid Rs 4,800 each way.
When he reached the airport, he was told at the check-in counter that Kingfisher Airlines did not have a flight between Delhi and Bhubaneswar. Mittal was asked to take an Air Deccan flight instead.
The ticket for an Air Deccan flight cost Rs 2,500 each way while Mittal had paid Rs 4,800, he pointed out when he approached the National Consumer Redressal Commission.
Mittal, a lawyer, contended in his petition that the trade practice adopted by Kingfisher Airlines was unfair and should be prevented. He demanded Rs 50 million as punitive damages, to be given to the Consumer Welfare Fund set up by the commission.
Kingfisher Airlines lawyer MN Krishnamani told the commission that if Mittal had suffered a loss, he should have gone to the district forum. He also described the Rs.50 million claim as "totally exaggerated".
In his interim order, National Consumer Disputes Redressal Commission president M.B. Shah said he was not going into the exaggeration or otherwise of the claim at this stage.
But he ordered the airline "not to indulge in such unfair trade practice. A copy of this order be also sent to Director General of Civil Aviation for appropriate action," said the commission.
Krishnamani had also said that Consumer Voice, an NGO, ought not to have joined the case as a party at the request of Mittal.
Rejecting this contention of the airline, the commission said: "This contention appears to be without any substance, because consumer organisations are required to take up such causes for preventing unfair trade practices and under the Consumer Protection Act they are entitled to file such complaints".
Net banking fraud is not bank’s fault: Consumer forum
In an order which can affect scores of consumers who use net banking facility, a State Consumer Redressal Commission has struck down a lower court order that compensated a customer whose money was transferred out of his accountwithout his knowledge via net banking.
A bench comprising presiding member SR Khanzode and member Dhanraj Khamatkar recently upheld HDFC Bank’s contention that the consumer was informed about the risks involved in net banking as stipulated in the security instructions and the form executed by the customer to avail net banking facility.
Besides, the commission held that the consumer also informed them of the fraudulent transfer too late.
In January 2009, the complainant, Nikhil Phutane, who works for an international bank, found that Rs4.6 lakh had been transferred from his HDFC Bank account to one Shukla’s account in Lucknow and to one Rajiv’s account at Vijaywada in November 2008.
Phutane first approached the bank with the complaint, but to no avail. He then approached the police who arrested the accused, but recovered only Rs70,500 from them.
The consumer forum at Mumbai Central in March 2010 passed an order in favour of Phutane and asked the bank to reimburse him Rs3.89 lakh with interest and compensation of Rs35,000. The bank went in appeal before the state forum against this order.
Advocate Ashutosh Marathe who appeared for the bank argued that Phutane did not adversely respond to the sms and emails sent to him before and after effecting the transfer of money from the account. “In fact, before the transfer, the bank even sent an alert sms asking if the accused were the beneficiaries, in whose account money can be transferred. The bank waits for 24 hours before the money is transferred,” said Marathe.
They also argued that only the complainant knows about the net banking password, but failed to observe security norms. Besides, Phutane responded to the bank about the fraudulent transaction 45 days after the money was transferred. The court held that no case of negligence is made out against the bank.
A bench comprising presiding member SR Khanzode and member Dhanraj Khamatkar recently upheld HDFC Bank’s contention that the consumer was informed about the risks involved in net banking as stipulated in the security instructions and the form executed by the customer to avail net banking facility.
Besides, the commission held that the consumer also informed them of the fraudulent transfer too late.
In January 2009, the complainant, Nikhil Phutane, who works for an international bank, found that Rs4.6 lakh had been transferred from his HDFC Bank account to one Shukla’s account in Lucknow and to one Rajiv’s account at Vijaywada in November 2008.
Phutane first approached the bank with the complaint, but to no avail. He then approached the police who arrested the accused, but recovered only Rs70,500 from them.
The consumer forum at Mumbai Central in March 2010 passed an order in favour of Phutane and asked the bank to reimburse him Rs3.89 lakh with interest and compensation of Rs35,000. The bank went in appeal before the state forum against this order.
Advocate Ashutosh Marathe who appeared for the bank argued that Phutane did not adversely respond to the sms and emails sent to him before and after effecting the transfer of money from the account. “In fact, before the transfer, the bank even sent an alert sms asking if the accused were the beneficiaries, in whose account money can be transferred. The bank waits for 24 hours before the money is transferred,” said Marathe.
They also argued that only the complainant knows about the net banking password, but failed to observe security norms. Besides, Phutane responded to the bank about the fraudulent transaction 45 days after the money was transferred. The court held that no case of negligence is made out against the bank.
You can take your housing society to consumer court
Now, residents of cooperative societies, locked in a battle with the management, need not wait for years to get justice from cooperative courts. They can hit the fast track to justice — consumer courts.
In a landmark judgment, the State Consumer Disputes Redressal Commission directed the district consumer forum to hear the case of 72-year-old Worli resident Rajan Alimchandani against his society by declaring him a “consumer”. The commission also directed the forum to dispose of the case within three months.
Three years ago, the management of Venus Cooperative Housing Society on Worli Seaface, of which Alimchandani is a resident, decided to replace the old bathroom pipes. The decision was taken without a general body meeting, and each flat owner was billed an additional Rs5,000 over and above the maintenance charges. The society plumber was entrusted with the job after Rs1,40,000 was collected.
Alimchandani found leakages inside his bathroom ever after the pipes were changed. “This happened after I had my bathroom spruced up at my own cost. I spoke to the management, but no one responded to my written complaints. So, I moved the district consumer forum,” said Alimchandani.
But the forum dismissed the complaint, saying that under the Consumer Protection Act (CPA), 1986, he was not a consumer. Alimchandani then filed an appeal in the State Commission. In an order, Justice BB Vagyani and member Anjali Karadkhedkar said the Supreme Court had observed that the remedies under CPA for the aggrieved party were wider.
It said CPA not only created a framework for speedy disposal of consumer disputes by granting specific reliefs, but the consumer forums too had the jurisdiction to award compensation for mental agony and suffering. The Commission held Alimchandani a “consumer” and his complaint maintainable, and directed the case back to the district consumer forum for speedy redressal.
Although Alimchandani has demanded Rs 32,000 as compensation for his three-year-old battle, he wants to donate the money to the society for repair work. “For me, it was a fight for my rights,” he said.
The judgment has wider repercussions as more than 15,000 cases are pending in the six cooperative courts in Mumbai. “Cases referring to deficiency of services like leakage and parking can now be tried in consumer courts for faster redressal,” said advocate and president of Co-operative Societies Residents and Users Association Vinod Sampat.
In a landmark judgment, the State Consumer Disputes Redressal Commission directed the district consumer forum to hear the case of 72-year-old Worli resident Rajan Alimchandani against his society by declaring him a “consumer”. The commission also directed the forum to dispose of the case within three months.
Three years ago, the management of Venus Cooperative Housing Society on Worli Seaface, of which Alimchandani is a resident, decided to replace the old bathroom pipes. The decision was taken without a general body meeting, and each flat owner was billed an additional Rs5,000 over and above the maintenance charges. The society plumber was entrusted with the job after Rs1,40,000 was collected.
Alimchandani found leakages inside his bathroom ever after the pipes were changed. “This happened after I had my bathroom spruced up at my own cost. I spoke to the management, but no one responded to my written complaints. So, I moved the district consumer forum,” said Alimchandani.
But the forum dismissed the complaint, saying that under the Consumer Protection Act (CPA), 1986, he was not a consumer. Alimchandani then filed an appeal in the State Commission. In an order, Justice BB Vagyani and member Anjali Karadkhedkar said the Supreme Court had observed that the remedies under CPA for the aggrieved party were wider.
It said CPA not only created a framework for speedy disposal of consumer disputes by granting specific reliefs, but the consumer forums too had the jurisdiction to award compensation for mental agony and suffering. The Commission held Alimchandani a “consumer” and his complaint maintainable, and directed the case back to the district consumer forum for speedy redressal.
Although Alimchandani has demanded Rs 32,000 as compensation for his three-year-old battle, he wants to donate the money to the society for repair work. “For me, it was a fight for my rights,” he said.
The judgment has wider repercussions as more than 15,000 cases are pending in the six cooperative courts in Mumbai. “Cases referring to deficiency of services like leakage and parking can now be tried in consumer courts for faster redressal,” said advocate and president of Co-operative Societies Residents and Users Association Vinod Sampat.
Government may introduce e-filing in consumer courts
In a bid to provide faster disposal of cases relating to consumers across the country, the government is all set to introduce e-filing of complaints in consumer courts.
In reply to a question in the Rajya Sabha, minister of state KV Thomas said the government is contemplating to amend the consumer protection act and introducing online filing of cases.
At present, Uttar Pradesh has the highest number of pending consumer cases in India. However states likes Maharashtra, Rajasthan and Gujarat follow UP’s footsteps. Minister of agriculture, consumer affairs and public distribution, Sharad Pawar, in a written reply in Lok Sabha, said that more than one lakh consumer cases both in state commissions and district consumer forums are pending in Uttar Pradesh only.
“Maharashtra is on the second spot with almost 36 thousand consumer cases pending across the state. States like Gujarat and Rajasthan also have a backlog of pending consumer cases with nearly 25 thousand and 24 thousand cases respectively,” Pawar statement reads.
According to figures, nearly 3.68 lakh consumer cases are pending across the country, out of which more than 2.50 lakh, 1.81 lakh and 8,000 cases are pending in District Forums, State Commissions and National Commission respectively.
The government of India has taken some steps for the clearance of the backlog of cases pending before various consumer for a, including national commission, in addition to speedier disposal of fresh cases. Some state commissions and district forums are adopting the process of holding Lok Adalats for speedy disposal of cases. The National Commission has also started holding Lok Adalats.
The Delhi high court has already started two e-courts last year, which are running successfully, and were the first in India in which paper files were replaced with a sleek LCD screen and a touch screen handbook.
In reply to a question in the Rajya Sabha, minister of state KV Thomas said the government is contemplating to amend the consumer protection act and introducing online filing of cases.
At present, Uttar Pradesh has the highest number of pending consumer cases in India. However states likes Maharashtra, Rajasthan and Gujarat follow UP’s footsteps. Minister of agriculture, consumer affairs and public distribution, Sharad Pawar, in a written reply in Lok Sabha, said that more than one lakh consumer cases both in state commissions and district consumer forums are pending in Uttar Pradesh only.
“Maharashtra is on the second spot with almost 36 thousand consumer cases pending across the state. States like Gujarat and Rajasthan also have a backlog of pending consumer cases with nearly 25 thousand and 24 thousand cases respectively,” Pawar statement reads.
According to figures, nearly 3.68 lakh consumer cases are pending across the country, out of which more than 2.50 lakh, 1.81 lakh and 8,000 cases are pending in District Forums, State Commissions and National Commission respectively.
The government of India has taken some steps for the clearance of the backlog of cases pending before various consumer for a, including national commission, in addition to speedier disposal of fresh cases. Some state commissions and district forums are adopting the process of holding Lok Adalats for speedy disposal of cases. The National Commission has also started holding Lok Adalats.
The Delhi high court has already started two e-courts last year, which are running successfully, and were the first in India in which paper files were replaced with a sleek LCD screen and a touch screen handbook.
Consumer is a clueless king
Everyone has had a consumer grouse at some point in time, but only a few move the court. Speak Up finds out what’s stopping people from exercising their rights.
The law is good, implementation is not
Shirish Deshpande
Vice-chairman,Mumbai Grahak Panchayat
The Consumer Protection Act is comprehensive and to me, much better than any piece of consumer legislation elsewhere in the world. What is lacking is proper implementation.
The government seems indifferent to the cause of consumer protection and has to be prodded or admonished by the judiciary. The infrastructure is often inadequate, the facilities are below par and several vacancies in the courtsare yet to be filled. On the positive side though, the level of awareness among consumers has gone up considerably thanks to the positive verdicts from the consumer courts.
Earlier, investment-related claims formed bulk of the complaints. In addition to that, consumers today are seeking redressal against builders, insurance companies, etc.
Previously, consumers were reluctant to drag negligent doctors to court, venerating them as gods. That, however has changed and doctors can no longer get away with acts of negligence. The very existence of the Consumer Protection Act has made companies more consumer-oriented. Many, if not all, companies have set up consumer grievance cells and are keen to resolve matters before they reach the court. If anything, the Act has made PSUs, who till some time back believed they were not accountable, more consumer-friendly.
However, there are some myths about consumer protection act that need to be dispelled. Although consumer courts are expected to deliver the verdict within 90 days, procedural delays ensure that the schedule is not adhered to in most cases.
Some approach consumer courts seeking astronomical compensation. The judiciary in countries like the US awards huge sums as compensation. Often, consumers in India too claim exorbitant damages. They must understand that the claim has to be justified and quantified in the court. This way, we ensure that there are no reckless litigations. However, we do have a provision for exemplary compensation which can be awarded in rare and deserving cases.
Let’s talk
No clue about procedure
I’ve had consumer grievances in the past, but never approached the consumer court.Even if I want to, I have no clue about the procedure. I have never been enraged enough to actually get into the entire hassle. It has more to do with the Indian attitude. We are so flexible that we will make do with anything.
The system abroad is far better. Here, if you think of filing a case the first thought that comes to your mind is that you will be made to run from pillar to post and fill several pockets. The very thought puts you off.
The law is on our side, but what is missing is awareness. Maybe the government should start some awareness programmes informing us of our rights. Online shopping is one huge area of consumer grievance because you can't see the product nor test it.
Sarang Varma
We need more helplines
I am thinking of filing a consumer case. I had reserved air tickets online and my account was debited but I didn’t get my ticket. I called both parties, but neither have an explanation. I have threatened to go to the court, but I'm hoping I don't have to. In India, these threats aren't taken seriously.
Manufacturers and service providers know that most people never act on their threats.
I have no clue about consumer courts. I wish there were helplines. Already we perceive going to court a cumbersome affair. Systems abroad are clearer and people know their rights.
Visheseh P
Cases take too long
I have never thought of approaching a consumer court or a consumer body. I just crib and move on. Going to court is a long-drawn process, although justice is supposed to be dispensed in 90 days, all cases drag on. It's a perception problem. If I have an issue with something, the next time round, I'll change the product or service. I think it is easier to do that than fight a case. The service industry has the most consumer problems. From loans to cell phone service providers, all try to fleece consumers.
Shravan Menda
Let’s have justice online
Occasionally, I have found hair in myfood, but I simply ask for a replacement. Some people raise hell over similar situations, but I don't believe in doing so. Going to a consumer court over something as insignificant as this is senseless. Abroad, they stretch things too far making them look like money -making scams.
But if a consumer grouse serves a larger good, I will fight for it. The pesticide-in-cola issue was worth the hue and cry. Big names don't daunt me as much as the procedures do. Activism is yet to catch on in India. People need to become savvier about their rights. Other reasons why we probably don't hear of such instances are the laidback attitude of people, shortage of time, labour involved etc. I would move the court only if it’s worth the effort. I should be able to address my grievances online knowing that at the other end, someone is taking me seriously.
Shipra Mishra
Fast track justice needed
I don't know about others, but I wouldn't go to a consumer court for situations which can be resolved amicably. If matters can be settled, why go all way? Going to a consumer court is important if you are suffering a huge loss. I will raise hell if I have been gypped by a builder over a residence deal.
Companies have set up customer care departments to address small grievances. This shows that companies have started giving importance to consumers. But I wonder if my problems will be taken seriously by the consumer forum because I don't have extra time or money to get involved in something that may yield zero returns. I will not complain about the litigation cost as long as my problem is resolved quickly.
Fast track justice is what will draw people to demand justice when wronged by bigwigs.
Poonam Shah
The law is good, implementation is not
Shirish Deshpande
Vice-chairman,Mumbai Grahak Panchayat
The Consumer Protection Act is comprehensive and to me, much better than any piece of consumer legislation elsewhere in the world. What is lacking is proper implementation.
The government seems indifferent to the cause of consumer protection and has to be prodded or admonished by the judiciary. The infrastructure is often inadequate, the facilities are below par and several vacancies in the courtsare yet to be filled. On the positive side though, the level of awareness among consumers has gone up considerably thanks to the positive verdicts from the consumer courts.
Earlier, investment-related claims formed bulk of the complaints. In addition to that, consumers today are seeking redressal against builders, insurance companies, etc.
Previously, consumers were reluctant to drag negligent doctors to court, venerating them as gods. That, however has changed and doctors can no longer get away with acts of negligence. The very existence of the Consumer Protection Act has made companies more consumer-oriented. Many, if not all, companies have set up consumer grievance cells and are keen to resolve matters before they reach the court. If anything, the Act has made PSUs, who till some time back believed they were not accountable, more consumer-friendly.
However, there are some myths about consumer protection act that need to be dispelled. Although consumer courts are expected to deliver the verdict within 90 days, procedural delays ensure that the schedule is not adhered to in most cases.
Some approach consumer courts seeking astronomical compensation. The judiciary in countries like the US awards huge sums as compensation. Often, consumers in India too claim exorbitant damages. They must understand that the claim has to be justified and quantified in the court. This way, we ensure that there are no reckless litigations. However, we do have a provision for exemplary compensation which can be awarded in rare and deserving cases.
Let’s talk
No clue about procedure
I’ve had consumer grievances in the past, but never approached the consumer court.Even if I want to, I have no clue about the procedure. I have never been enraged enough to actually get into the entire hassle. It has more to do with the Indian attitude. We are so flexible that we will make do with anything.
The system abroad is far better. Here, if you think of filing a case the first thought that comes to your mind is that you will be made to run from pillar to post and fill several pockets. The very thought puts you off.
The law is on our side, but what is missing is awareness. Maybe the government should start some awareness programmes informing us of our rights. Online shopping is one huge area of consumer grievance because you can't see the product nor test it.
Sarang Varma
We need more helplines
I am thinking of filing a consumer case. I had reserved air tickets online and my account was debited but I didn’t get my ticket. I called both parties, but neither have an explanation. I have threatened to go to the court, but I'm hoping I don't have to. In India, these threats aren't taken seriously.
Manufacturers and service providers know that most people never act on their threats.
I have no clue about consumer courts. I wish there were helplines. Already we perceive going to court a cumbersome affair. Systems abroad are clearer and people know their rights.
Visheseh P
Cases take too long
I have never thought of approaching a consumer court or a consumer body. I just crib and move on. Going to court is a long-drawn process, although justice is supposed to be dispensed in 90 days, all cases drag on. It's a perception problem. If I have an issue with something, the next time round, I'll change the product or service. I think it is easier to do that than fight a case. The service industry has the most consumer problems. From loans to cell phone service providers, all try to fleece consumers.
Shravan Menda
Let’s have justice online
Occasionally, I have found hair in myfood, but I simply ask for a replacement. Some people raise hell over similar situations, but I don't believe in doing so. Going to a consumer court over something as insignificant as this is senseless. Abroad, they stretch things too far making them look like money -making scams.
But if a consumer grouse serves a larger good, I will fight for it. The pesticide-in-cola issue was worth the hue and cry. Big names don't daunt me as much as the procedures do. Activism is yet to catch on in India. People need to become savvier about their rights. Other reasons why we probably don't hear of such instances are the laidback attitude of people, shortage of time, labour involved etc. I would move the court only if it’s worth the effort. I should be able to address my grievances online knowing that at the other end, someone is taking me seriously.
Shipra Mishra
Fast track justice needed
I don't know about others, but I wouldn't go to a consumer court for situations which can be resolved amicably. If matters can be settled, why go all way? Going to a consumer court is important if you are suffering a huge loss. I will raise hell if I have been gypped by a builder over a residence deal.
Companies have set up customer care departments to address small grievances. This shows that companies have started giving importance to consumers. But I wonder if my problems will be taken seriously by the consumer forum because I don't have extra time or money to get involved in something that may yield zero returns. I will not complain about the litigation cost as long as my problem is resolved quickly.
Fast track justice is what will draw people to demand justice when wronged by bigwigs.
Poonam Shah
Rajasthan Consumer Court rapped for acting on 'emotional perception'
The National Consumer Commission has pulled up the Rajasthan State Commission for "misdirecting" itself while allowing an insurance claim of a man, who had lost one of his hands, on "emotional perception".
"State Commission while interpreting terms of policy has totally misdirected itself, stretching terms to impermissible extent, presumably on emotional perception," the Commission comprising Members justice BNP Singh and SK Naik said.
It passed the order on a petition of the LIC challenging the State Commission's direction to pay Rs one lakh claim amount to policy holder Girraj Mehta on the ground that the loss of limb would be deemed to be a permanent disability.
The State Commission had said "there would be a reduction in his power to earn money or to do other job and for that aspect also the case of amputation of one hand should be treated as permanent loss."
"Policy condition (of LIC) in no uncertain terms enjoins that in case of accident, there must be total and permanent disability so that insured can never sufficiently do or follow to earn or obtain any wages, compensation or profit," the apex consumer body said.
It also did not agree with the decision of the State Commission, saying that the insured person was not entitled to the benefit of the policy as impairment was not total and permanent.
"Permanent disability, which would render the insured not capable to constitute such disability since there was amputation of only one hand, that too to the extent of 75 per cent disability, rest part of terms of policy having been satisfied, he would not be eligible to secure benefit of accident-cum-disability benefit policy," the National Consumer Commission said.
"State Commission while interpreting terms of policy has totally misdirected itself, stretching terms to impermissible extent, presumably on emotional perception," the Commission comprising Members justice BNP Singh and SK Naik said.
It passed the order on a petition of the LIC challenging the State Commission's direction to pay Rs one lakh claim amount to policy holder Girraj Mehta on the ground that the loss of limb would be deemed to be a permanent disability.
The State Commission had said "there would be a reduction in his power to earn money or to do other job and for that aspect also the case of amputation of one hand should be treated as permanent loss."
"Policy condition (of LIC) in no uncertain terms enjoins that in case of accident, there must be total and permanent disability so that insured can never sufficiently do or follow to earn or obtain any wages, compensation or profit," the apex consumer body said.
It also did not agree with the decision of the State Commission, saying that the insured person was not entitled to the benefit of the policy as impairment was not total and permanent.
"Permanent disability, which would render the insured not capable to constitute such disability since there was amputation of only one hand, that too to the extent of 75 per cent disability, rest part of terms of policy having been satisfied, he would not be eligible to secure benefit of accident-cum-disability benefit policy," the National Consumer Commission said.
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