Understand the Process and Timeline for Filing a Consumer Court Case at District, State, and National Levels

May 29, 2024

The Consumer Protection Act of 2019 gives individuals the opportunity to file cases in consumer commissions as per pecuniary Jurisdiction at district, state, and national levels that is known as the NCDRC. These consumer forums are specifically designed to address grievances and violations of the Consumer Protection Act, offering an alternative to traditional civil courts

The Consumer Protection Act, 2019 serves as a safeguard for consumers’ rights, that covers all goods and services across public, private, or cooperative sectors, except those exempted by the central government. It establishes a platform for consumers to address grievances and seek compensation.

According to the Act, individuals who feel aggrieved after purchasing goods or services can seek assistance from consumer commissions to address their concerns. “Any person who has purchased goods or availed services for personal use is entitled to file a case in the consumer forum if the purchased goods are defective, or if the services provided are deficient or inadequate.”

The grounds for filing a complaint in a consumer commission, are outlined below

- Adoption of unfair trade practices or restrictive trade practices by the service provider.

- Defective goods.

- Deficiency in services.

- Overcharging for goods or services.

- Selling hazardous goods or services.

“Consumers should not tolerate inconveniences or wrongdoing and must file appropriate complaints to prevent unscrupulous traders from repeating such actions, both to themselves and others in society,” we emphasizes the importance of taking action against unfair practice and deficiency of services

Steps to follow before filing a complaint in consumer commissions

As Per the below-mentioned three-step process has to be followed before filing a complaint in a consumer forum:

Before filing a complaint in a consumer forum, individuals should follow the below three-step process:

Attempt to resolve the issue directly with the service provider through negotiation or other means of communication.

If the first step fails, send a legal notice to the service provider, highlighting the grievance and demanding resolution within a specified time frame.

If the service provider fails to respond satisfactorily within the given time frame, proceed to file a formal complaint with the consumer forum.

Step 1: Intimation via notice (Optional step we prefer sending notice)

The aggrieved individual should send a notice to the service provider, detailing the defects in the goods or the deficiency in the service, and expressing the intention to pursue legal action if the issue is not resolved satisfactorily.

Step 2: Draft the consumer complaint

If the service provider fails to provide compensation or any other remedy, a formal complaint must be drafted under the Consumer Protection Act, 2019. The complaint should include the following details:

- Name, description, and address of the complainant(s) and the opposite party.

- Relevant facts relating to the cause of action.

- Cause of action, approximate date, time, venue,and grounds

- The relief or remedy claimed by the complainant.

- Signature and verification by the complainant or authorized agent.

Step 3: Gathering of certain documents

Before proceeding, gather all the relevant documents containing material evidence that supports the case. These documents include:

Copies of material evidence such as bills, receipts, warranty/guarantee certificates, email, order, invoice. etc.

Copies of written complaints and notices sent to the service provider,

Affidavit stating the presented facts are true. Except in District Commission all other forums the affidavit has to be notarised

Additionally, a prescribed fee is required based on the consideration paid by the consumer. Ensure the complaint is filed within two years from the date the cause of action arose.

It is not mandatory to serve a personal or legal notice to the opposite party before filing the case but it is recommended that one should serve a legal notice.

Which consumer forum to approach depends on the value of the paid consideration as per the Consumer Protection Act, 2019. Here’s when you can file a complaint with a consumer forum:

District Consumer Disputes Redressal Commission (DCDRC): on the value of the paid consideration up to Rs 50 lakh.

State Consumer Disputes Redressal Commission (SCDRC): on the value of the paid consideration above Rs 50 lakh and within Rs 2 crore.

National Consumer Disputes Redressal Commission (NCDRC): on the value of the paid consideration above Rs 2 crore.

You can file a case in any consumer commission online directly at the relevant district commission through the E-dakhil portal, you will have to remove all the objections that would be raised then submit the hardcopies (3 Sets minimum) 2 sets for the bench and 1 set to be served to the opposite party, if the opposite parties are more than 1 then you will have to submit that many copies to be served to the Opposite Parties or keep it ready to be served after admission of the complaint.

The documents that are mandatorily required for filing a case on the E-dakhil portal include:

- Index of the Complaint

- List of dates and events describing circumstances of the complaint

- Memo of Parties containing the name and address of the Complainant as well as the Opposite Party

- Complaint supported by verification and affidavit of complainant

- Supporting documents such as receipts, proof of payment, contract if any etc., must be annexed. All the Annexures must be attested as true copy on the last page with name and signature.

Execution Application

If the final order issued by the consumer commission is not complied with within the specified time frame, it is necessary to file an application seeking execution to enforce the order.

How long does it usually take for cases to be heard and judged in consumer forums?

The timing of a consumer dispute case’s hearing and judgment order passing can vary significantly. While the Act stipulates that cases should be decided within three months, the actual duration may extend from three months to over a year to 3 years, depending on the complexities involved in the matter.

Here is a rough estimate of that happens usually:

District Consumer Disputes Redressal Forum:

• Filing: Few weeks to a couple of months.

• Hearing: First hearing in 1 to 3 months; subsequent hearings every 1 to 3 months.

• Judgement: 6 months to 2 years.

State Consumer Disputes Redressal Commission:

• Filing: Few weeks to a couple of months after DCDR Judgement (in case of Appeal)

Fresh Complaint few weeks, usually within 21 days from the date of filing the complaint inclusive of removing objections and final number allotted to the complaint

• Hearing: First hearing in 2 to 6 months; subsequent hearings every 2 to 6 months.

• Judgement: 1 to 3 years.

National Consumer Disputes Redressal Commission:

• Filing: Few weeks to a couple of months after SCDRC’s judgement.

• Hearing: First hearing in 3 to 12 months; subsequent hearings every 3 to 12 months.

• Judgement: 1 to 5 years.

Indeed, many consumers often neglect to file complaints due to their busy schedules and the perceived hassle of taking on corporate giants. To address this, the government has established consumer-friendly dispute settlement platforms known as commissions, rather than courts. This approach aims to mitigate the deterrence caused by lengthy procedures associated with regular courts. These commissions facilitate summary proceedings, ensuring expedited justice for consumers

Mediation in Consumer Cases

Mediation is a process of facilitating a dialogue between two or more parties who have a dispute or a conflict. The mediator is a neutral third party who helps the parties communicate, understand each other’s perspectives, and find a mutually acceptable solution. Either at the first hearing after admission, or at later stage if the District Commission is of the view that, there exists an element of settlement, can refer the complaint to Mediation with the consent of the parties.

When is a review petition (RP) filed against consumer commission orders?

A review petition against consumer commission orders is typically filed when a party wishes the commission that passed the order to review its own decision. This petition allows for a request to review the decision, usually on the grounds of an error apparent on the face of the record or other compelling reasons. a consumer commission can be appealed against in the higher commission or courts; as the case may be.

The court may decide to confirm, modify, or reverse its earlier decision based on the merits of the review petition. Each of the three tiers of commissions (district, state, national) has the authority to consider and adjudicate upon review petitions in cases where:

a. The commission exercised its powers beyond jurisdiction.

b. The commission failed to exercise its powers where it should have.

c. The commission exercised its powers illegally or with material irregularity.

Revision Petition

To be filed within 90 days from the date of receipt of certified copy of order

Appeal

Appeal against order of District Commission.

Any person aggrieved by an order made by the District Commission may prefer an appeal against such order to the State Commission on the grounds of facts or law within a period of forty-five days from the date of the order, in such form and manner, as may be prescribed:

Provided that the State Commission may entertain an appeal after the expiry of the said period of forty-five days, if it is satisfied that there was sufficient cause for not filing it within that period:

Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the District Commission, shall be entertained by the State Commission unless the appellant has deposited fifty per cent. of that amount in the manner as may be prescribed:

Provided also that no appeal shall lie from any order passed under sub-section (1) of section 81 by the District Commission pursuant to a settlement by mediation under section 80.

Appeal to National Commission.

1. Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of section 47 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed:

- Provided that the National Commission shall not entertain the appeal after the expiry of the said period of thirty days unless it is satisfied that there was sufficient cause for not filing it within that period:

- Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited fifty per cent. of that amount in the manner as may be prescribed.

- Save as otherwise expressly provided under this Act or by any other law for the time being in force, an appeal shall lie to the National Commission from any order passed in appeal by any State Commission, if the National Commission is satisfied that the case involves a substantial question of law.

- In an appeal involving a question of law, the memorandum of appeal shall precisely state the substantial question of law involved in the appeal.

- Where the National Commission is satisfied that a substantial question of law is involved in any case, it shall formulate that question and hear the appeal on that question:

- Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the National Commission to hear, for reasons to be recorded in writing, the appeal on any other substantial question of law, if it is satisfied that the case involves such question of law.

- An appeal may lie to the National Commission under this section from an order passed ex parte by the State Commission.

Appeal against order of National Commission.

Any person, aggrieved by an order made by the National Commission in exercise of its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of section 58, may prefer an appeal against such order to the Supreme Court within a period of thirty days from the date of the order:

Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period:

Provided further that no appeal by a person who is required to pay any amount in terms of an order of the National Commission shall be entertained by the Supreme Court unless that person has deposited fifty per cent. of that amount in the manner as may be prescribed.

Appeal against order passed under section 72.

1. Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), where an order is passed under sub-section (1) of section 72, an appeal shall lie, both on facts and on law from–

1. the order made by the District Commission to the State Commission;

1. the order made by the State Commission to the National Commission; and

1. the order made by the National Commission to the Supreme Court.

2. Except as provided in sub-section (1), no appeal shall lie before any court, from any order of District Commission or a State Commission or the National Commission, as the case may be.

3. Every appeal under this section shall be preferred within a period of thirty days from the date of order of a District Commission or a State Commission or the National Commission, as the case may be:

Provided that the State Commission or the National Commission or the Supreme Court, as the case may be, may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period of thirty days.

Mediation.

1. At the first hearing of the complaint after its admission, or at any later stage, if it appears to the District Commission that there exists elements of a settlement which may be acceptable to the parties, except in such cases as may be prescribed, it may direct the parties to give in writing, within five days, consent to have their dispute settled by mediation in accordance with the provisions of Chapter V.

- Where the parties agree for settlement by mediation and give their consent in writing, the District Commission shall, within five days of receipt of such consent, refer the matter for mediation, and in such case, the provisions of Chapter V, relating to mediation, shall apply

Section 5. Pre-litigation mediation.

1. (1) Subject to other provisions of this Act, whether any mediation agreement exists or not, the parties before filing any suit or proceedings of civil or commercial nature in any court, may voluntarily and with mutual consent take steps to settle the disputes by pre-litigation mediation in accordance with the provisions of this Act:

1. Provided that pre-litigation mediation in matters of commercial disputes of Specified Value shall be undertaken in accordance with the provisions of section 12A of the Commercial Courts Act, 2015 (4 of 2016), and the rules made thereunder.

1. (2) The provisions of sub-section (1) shall be applicable to the tribunals notified by the Central Government or a State Government, as the case may be.

1. (3) For the purposes of sub-sections (1) and (2), unless otherwise agreed upon by the parties, a mediator,–

(i) registered with the Council; or

(ii) empanelled by a court-annexed mediation centre; or

(iii) empanelled by an Authority constituted under the Legal Services Authorities Act, 1987 (39 of 1987); or

(iv) empanelled by a mediation service provider recognised under this Act, shall conduct pre-litigation mediation.

(4) For conducting pre-litigation mediation under clauses (ii) and (iii) of sub-section (3), a party may request any person designated for this purpose by the High Courts, or an Authority constituted under the Legal Services Authorities Act, 1987 (39 of 1987), as the case may be.

(5) The court-annexed mediation centre and an Authority constituted under the Legal Services Authorities Act, 1987 (39 of 1987), shall maintain a panel of mediators for the purposes of pre-litigation mediation.

(6) Notwithstanding anything contained in sub-sections (1) and (2) and the Motor Vehicles Act, 1988 (59 of 1988), when an application for compensation arising out of an accident is made before the Claims Tribunal, if the settlement as provided for in section 149 of that Act is not arrived at between the parties, the Claims Tribunal shall refer the parties for mediation to a mediator or mediation service provider under this Act.

(7) Where the parties arrive at a settlement agreement under sub-section (6), it shall be placed before the Claims Tribunal for its consideration.

(8) If the parties do not reach to settlement agreement under sub-section (6), a non-settlement report prepared by the mediator shall be forwarded to the Claims Tribunal, which has referred the matter for mediation, for adjudication.

Posted and reproduced in Public Interest by

Adv. Sulaiman Bhimani Legal Consultant

Expert in RERA & Consumer Matters, Co-operative Scty Matters,

Deem Conveyance, Family Matters, and Property Disputes.

Human and Civil Rights Campaigner

President Citizens Justice Forum https://citizensjusticeforum.in