Top 7 Consumer Protection Act Cases - Legitquest (2023)

With the growing frauds on the part of sellers whether it’s substandard quality of products/services or misleading advertisements, it is really important that the customers must be aware about their rights and responsibilities. Consumer Protection Act aims to provide speedy relief to such breach of trust or negligence. , Following are ten important cases that hold relevance in case of consumer disputes:

1. : In this case, the appellant had purchased a second - hand truck under a Hire Purchase agreement. The vehicle was insured by the respondent insurance company. One day when he was driving the truck, a passenger asked him to stop the truck and give him a lift. When he stopped the truck, the passenger brutally assaulted the driver and fled with the vehicle. An FIR was lodged and the respondent finance company was intimated about the theft. However, the insurance company rejected the claim on the ground of breach of terms of the policy. The complainant approached District Consumer Disputes Forum, State Commission and National Commission to compensate him for the loss. All of them had rejected the case. So, finally he approached the Supreme Court.

Judgment: The Supreme Court held that the appellant was not at all in fault. It can be considered as a breach of the policy, but not a fundamental breach to bring the insurance policy to an end and terminate the insurance policy. The two - judge bench of Supreme Court directed the respondent insurance company to pay 75% of the insured amount along with 9% interest p.a. from the date of filing the claim. The court also directed the insurance company to pay sum of Rs. 1, 00, 000 as compensation.

2. .

In this case, the insurance company had refused to compensate the respondent because of damage caused due to heavy rain during a mentioned period. The Insurance Company admittedly denied relief to the insured on the basis of one of the conditions of the policy which stated that National Insurance would not be liable for any loss or damage 12 months after the event of the loss or damage to the insured. The insured filed a complaint with the National Commission under the provisions of the Consumer Protection Act, 1986.

(Video) Conduct of Arbitral Proceedings.

Judgment: The National Commission held that the claim made by the insured is actionable. It also observed that the goods were insured at the time of incident and he asked for the claim next day. It rejected all the contentions urged by National Insurance and ordered the insurance company to award an amount of Rs. 21, 05,803.89 with interest at 9% per annum.

3. Karnataka Power Transmission Corporation (KPTC) Vs. Ashok Iron Works Private Limited

Ashok Iron Works, a private company which manufactures iron had applied for obtaining electricity from the state’s power generation company - the Karnataka Power Transmission Corporation (hereinafter KTPC) for commencing its iron production. Inspite of paying charges and obtaining confirmation for the supply of 1500 KVA energy in February 1991, the actual supply did not begin until ten months later, in November 1991. This delay incurred a huge loss for Ashok Iron Works. This company had filed a complaint to the Belgaum Consumer Dispute Forum and later Karnataka High Court. The legal argument by KTPC was that the complaint was not maintainable as the consumer Protection Act 1986 excludes commercial supply of goods. It also made an argument that the company in engaged in manufacturing iron and intended to use it for commercial consumption which is excluded under the Act. He also said that, the complainant is not a `person’ underSection 2(1)(m)of the Act, 1986.

Judgment: In this case, Supreme Court gave his rulings. The Supreme Court mentioned the General Clause Act that includes a private company within the purview of the definition of a “Person.” It was also held that the supply of electricity by the KPTC to a consumer would be covered underSection 2(1)(o)being ‘service.’ Also, if the electrical energy consumer is not provided to a consumer in time as is agreed upon, then under Section (2)(1)(g), then there can be a case for deficiency in service. Therefore, the clause stating “supply” of goods for commercial purpose would not be applied. The Supreme Court sent this case back to District Forum for retrial on these grounds.

4. Indian Medical Association Vs. V.P. Shantha and others: A writ petition was filed by the Indian Medical Association seeking Supreme Court to declare that the Consumer Protection Act doesn’t apply to the medical profession. Indian Medical Association validated that medical professionals are governed by a separate Code of Ethics. Thus medical negligence can be dealt with by medical experts in their own jurisdiction; the Consumer Protection Act shouldn’t be applied. The writ petition involved two questions as given below:
  • Whether a medical practitioner can be regarded as rendering ‘service’ under the Consumer Protection Act 1986?
  • If medical services are rendered free, then would it be considered under the Act?

Judgment: The Court held that District, State and National Consumer Forums can summon experts in the field of medicine, examine evidence and protect the interest of consumers. Doctors and hospitals who render service without any charge would not fall within the ambit of “service”. In a government hospital, where services are provided free of charge - the Consumer Protection Act would not be applied. However, if customers are being provided for free to the poor, then it shall be covered as a service under the act. In case the insurance policy company pays for the treatment on behalf of the customer, then it will be covered under the Act.

5. Sehgal School of Competition Vs. Dalbir Singh: In is one of the landmark consumer protection act cases and judgments. A student was asked to deposit lump sum fees of Rs. 18,734 for coaching of medical entrance examination for the next two years. This amount was deposited by the student in two complete instalments. However, the student realized that the quality of the coaching institute was not upto the mark and therefore sought a refund for the remaining period which was further refused by the coaching institute. The appellant lodged a case against Sehgal School of Competition before National Commission. While Sehgal School of Competition submitted records that showed good results of the institute and alleged that it was wrong to observe that the coaching services are substandard.
Judgment: National Commission stated that fees once paid shall not be refunded is an unfair trade practice.It quoted UGC guidelines declaring that even if a student has not attended a single class, an amount of ?1000 can get deducted and proportionate charges for hostel fees, etc, and the balance amount could be refunded. State Consumer Forum, mentioned that not just the balance amount of fee, but also a higher compensation for legal costs as well as the pain that the student had to undertake, could be availed in such cases.
6. : It is one of the remarkable consumer protection act cases. This consumer protection act case happened when a wrongful debit happened from a bank account. The complainant trust - Sapient Corporation Employees Provident Fund Trust maintained an account with the respondent HDFC Bank. The bank received instructions from the Employee Provident Fund Organisation (EPFO) that mentioned order of payment of ?1.47 crores against the trust, and that no other payments from the trust’s account be made until EPFO’s liability has not been settled by the trust. However, the trust issued an instruction to the HDFC bank not to debit any amount until further communication as they wanted to seek a stay order. However, in payment of the statutory due to EPFO, the bank, after giving due time, debit the account with an amount of ?1.47 crores. The challenged this transaction as a deficiency in service and demanded the amount debited along with interest, damages, and legal expenses. Trust lodged the complaint against the HDFC before the National Commission on the ground that bank committed default by paying an amount payable as a statutory due.

Judgment: The National Commission dismissed the argument of the complainant saying that bank informed the trust as its customer and gave them due time. So, it cannot be said that EPFO conducted deficiency in services. Forthis false litigation, the National Commission had imposed a penalty of Rs. 25,000 on the complainant trust to be paid to the HDFC Bank.

(Video) Making of Award, the content of Arbitral Award, challenge, & enforcement of an arbitral award

7. Delhi Development Authority Vs. D.C. Sharma: In this consumer protection act case, DC Sharma (respondent) a Government servant had paid an initial amount for the allotment of a DDA plot of Rs. 5 Lakhs in 1997. He requested for the extra time to pay instalments as he wanted to avail loan facility from his office. Meanwhile, he realized that the plot allotted to him through a draw of lots has already been allotted to another person two years ago. Due to this negligence of the DDA, the respondent approached the District forum that dismissed this case. Subsequently, the state Consumer forum was approached that passed an order in favor of the respondent.

Judgment: National Commission stated that when the plot was already allotted to someone else back in 1995, then why DDA took no steps in correcting its own error in the allotment. It directed DDA to pay an alternate plot of same kind or pay escalate price of Rs. 30 Lakhs.

8. V.N. Shrikhande Vs. Anita Sena Fernandes

The petitioner - Anita Sena, who was a nurse by profession underwent a stone removal surgery from her gall bladder but claimed that she continued to experience pain. After 9 years, it was detected that the reason behind this was that a gauge was left in her abdomen by the surgeon who operated her. This required a second surgery. Therefore, she filed the charges for negligence and compensation of Rs.50 Lakhs was demanded by the petitioner. She filed the case against the doctor for his negligence before Supreme Court.

Judgment: Supreme Court rejected the case on limitation and evidentiary grounds. The court held that when nurse was working in the same hospital where the surgery happened. Then, in the past nine years, why did not she contact the doctor. During the discovery of gauge in the abdomen, appropriate action could have been taken on an immediate basis without requiring the respondent to pay. But she chose to consume pain killers. Her long silence dismissed the complaint and she was entitled to no compensation.


This consumer protect act case arises out of a complaint of medical negligence where a 20-year-old engineering student was admitted to the Nizam Institute of Medical Sciences (NIMS) after he complaint about the acute chest pain. After several tests and x - rays, a tumor was revealed. Though, it could not be diagnosed whether the tumor was malignant or not, therefore, the patient was advised to undergo surgical removal of the same. After the surgery, the patient developed paralysis. There was a complete loss of control over the lower limbs and other related complications also raised leading to urinary tract infections, bedsores, etc. The family of the patient held NIMS and the State of Andhra Pradesh statutorily liable (being a government hospital) liable for this utmost negligence. Family also claimed that no pre-operative tests conducted, no neurosurgeon was present during operation. Consent was only taken for the tumor excision, but the doctors also removed ribs, tumor mass and destroyed blood vessels leading to condition of paralysis.

Judgment: Based on the evidence, Supreme Court held that a huge negligence was made out on the part of doctors and the hospital. Hence, the court awarded damages worth Rs. 1 crore to compensate present and prospective medical expenses and suffering of life.

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Q1. What is Consumer Protection Act?

Ans. The Consumer Protection Act safeguards and encourages consumers to speak against insufficiency and flaws in goods and services. It also provides easy and fast compensation to consumer grievances.

Q2. When was Consumer Protection Act passed?

Ans. The Consumer Protection Act was passed in 1986. After amendment, the Consumer Protection Act 2019 came into force. It was passed by the Lok Sabha on July 30, 2019 and Rajya Sabha on August 6, 2019.

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Q3. Who is consumer under Consumer Protection Act?

Ans. ‘Consumer’ is any person who buys goods or avail services for its consumption. It includes any person except for the person avail such goods or services for the purpose of commercial or resale use.

Q4. Who can file a complaint under Consumer Protection Act?

Ans. A consumer complaint can be filed by one or more consumers, the Central or State Government, any registered voluntary consumer association and legal representative of the consumer. In case, the consumer is minor. Then, the complaint can be filed by his legal guardian or parents.


What is the most common consumer complaint? ›

10 common customer complaints
  1. Product is out of stock. ...
  2. Broken/defective product. ...
  3. Product doesn't meet expectations. ...
  4. Preferred payment not accepted. ...
  5. Long hold times. ...
  6. Disinterested customer service. ...
  7. Having to restate the issue. ...
  8. Issue not resolved on first call.
May 5, 2022

What are the 5 consumer protection? ›

In this lesson, we will identify and discuss the five major rights of consumers: safety, information, choice, voice, and redress.

What is Consumer Protection answer? ›

Consumer Protection is a group of laws enacted to protect consumers' rights, fair trade, competition, and accurate information in the marketplace. Consumer protection laws are a form of government regulations that aim to protect the rights of consumers.

What are examples of consumer protection? ›

For example, the U.S. Food and Drug Administration (FDA) calls itself “the world's premier consumer protection regulatory agency.” Other examples of consumer protection by regulation are occupational licensing, housing codes, the Federal Trade Commission, the Consumer Product Safety Commission, the Securities and ...

What are the top 10 consumer complaints? ›

The Top Ten complaint categories made to agencies in 2021 are:
  • Auto Sales & Repair.
  • Landlord Tenant.
  • Home Improvement Repairs and Contractors.
  • Retail Purchase Issues.
  • Consumer Debt & Credit.
  • Frauds and Scams.
  • Utilities.
  • (TIE) Healthcare/Wellness & Robocalls/Telemarketing.
Aug 8, 2022

What are the seven 7 customer complaint procedure principles? ›

Principles of Good Complaint Handling
  • Contents.
  • Introduction.
  • Getting it right.
  • Being customer focused.
  • Being open and accountable.
  • Acting fairly and proportionately.
  • Putting things right.
  • Seeking continuous improvement.

What are 7 consumer rights? ›

in the Consumer Bill of Rights. Consumers are protected by the Consumer Bill of Rights. The bill states that consumers have the right to be informed, the right to choose, the right to safety, the right to be heard, the right to have problems corrected, the right to consumer education, and the right to service.

What are the 8 basic rights of the consumers? ›

  • Consumer's rights to enforce terms about goods.
  • Right to reject.
  • Partial rejection of goods.
  • Time limit for short-term right to reject.
  • Right to repair or replacement.
  • Right to price reduction or final right to reject.

What are the 9 consumer rights? ›

Therefore, the government of India provides some rights to consumers under the Consumer Protection Act to protect their interests. These rights are Right to Safety, Right to Information, Right to make Choice, Right to be Heard, Right to Seek Redressal and Right to Consumer Education.

What are the 6 consumer rights? ›

Rights of consumers: Six consumer rights have been defined in the Bill, including the right to: (i) be protected against marketing of goods and services which are hazardous to life and property; (ii) be informed of the quality, quantity, potency, purity, standard and price of goods or services; (iii) be assured of ...

What is Consumer Protection Act 1986 answer? ›

The Consumer Protection Bill, 1986 seeks to provide for better protection of the interests of consumers and for the purpose, to make provision for the establishment of Consumer councils and other authorities for the settlement of consumer disputes and for matter connected therewith.

What are the 3 methods of consumer protection? ›

Ways and means of Consumer Protection
  • Lok Adalat. ...
  • Public Interest Litigation (PIL) ...
  • Redressal Forums and Consumer Protection Councils. ...
  • Mindfulness Program. ...
  • Authoritative Measures. ...
  • Customer Protection Act, 1986. ...
  • Self Regulations by Business. ...
  • Business Associations.
Jul 19, 2022

What are the two main objects of Consumer Protection Act? ›

The main objectives of the Consumer Protection Act, 1986 is the protection of the rights of consumers which are as follows: Right to protection against unfair practices. Right to protection against hazardous goods.

What are the 4 types of complaints? ›

When customers are dissatisfied with the service you're providing, they will be one of four kinds of complainers: aggressive, expressive, passive or constructive.

What can I do if a company won't give me a refund? ›

Try to contact the trader

It's best to email or write to the trader - you can use a template letter. Keep a copy of anything you send, in case you need to check it later. If you can't contact the trader or they won't help, you can then ask your card provider or PayPal.

What are the biggest consumer problems? ›

Consumer debt and credit: Complaints about lending issues (including mortgages), banking, debt collection, credit reporting and other financial services. Frauds and scams: Complaints about various scams (“charge pending” scams, fraudulent lotteries/sweepstakes, IRS calls, etc.), elder fraud and identity theft.

How do you write a powerful complaint letter? ›

How to write an effective complaint letter
  1. Be clear and concise. ...
  2. State exactly what you want done and how long you're willing to wait for a response. ...
  3. Don't write an angry, sarcastic, or threatening letter. ...
  4. Include copies of relevant documents, like receipts, work orders, and warranties.
Sep 4, 2015

What are the 5 categories of complaints? ›

5 of the Most Common Types of Customer Complaints, and How to Handle Them
  • The Meek Customer. The Meek Customer will avoid submitting a complaint because he or she doesn't want to be a pain or believes you don't care. ...
  • The Aggressive Customer. ...
  • The High Roller Customer. ...
  • The Rip-Off Customer. ...
  • The Chronic Complainer Customer.
Oct 27, 2016

What are the five 5 steps in complaints resolution? ›

A 5-step process for handling customer complaints
  1. Step 1: Dig deeper by asking the right questions. ...
  2. Step 2: Identify the type of customer you're dealing with. ...
  3. Step 3: Respond to the customer quickly. ...
  4. Step 4: Present a solution, and verify that the problem is solved. ...
  5. Step 5: Log the complaint so you can track trends.
Jun 2, 2022

What is a consumer class 7? ›

Consumer: The person for whom the goods or products have been made and who pays money to buy and use them.

What is Section 2 7 Consumer Protection Act? ›

Section 2(7) of the Consumer Protection Act, 2019 defines a consumer as any person who buys goods or services in exchange for consideration and utilises such goods and services for personal use and for the purpose of resale or commercial use.

What are the main points of the Consumer Protection Act 2007? ›

The Consumer Protection Act 2007 protects consumers against false or misleading claims about goods, services and prices. The National Consumer Agency now CCPC can prosecute offenders under this Act.

Which of the following is not a consumer right? ›

The basic rights of any individual as a consumer are right to safety, right to information, right to choose, right to be heard, right to seek redressal, right to consumer education, but not the right to credit purchase.

What are the four main consumer rights? ›

How a charter of basic rights began. In 1962, then US President John F Kennedy declared four basic consumer rights – the right to safety; the right to be informed; the right to choose and the right to be heard.

How do you enforce consumer rights? ›

If the complaint is not resolved by the supplier within a reasonable time period, the consumer may lodge a complaint, with the relevant ombud, industry ombud, Consumer Goods and Service Ombud, National Consumer Commission, National Consumer Tribunal, an alternative dispute resolution agent, consumer court or civil ...

When choice is denied consumer rights? ›

When Choice Is Denied: Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service. Consumer can choose the products from the given alternatives.

What is consumer right 10? ›

Consumer Rights are referred to a set of laws that represent the right to be informed about the quantity, quality, purity, potency, price of goods and their standards so that the consumer is protected against all sorts of unfair trade practices. The Consumer Bill of Rights upholds the right to safety of every citizen.

Who is a consumer 30 words? ›

The person who pays and purchases a product is called a consumer.

What are the 3 main elements of the Consumer Rights Act 2015? ›

4. The Act is in three Parts: Consumer contracts for goods, digital content and services; Unfair terms; and.

What is the purpose of Consumer Protection Act 2008? ›

The CPA aims, among others, at promoting fair business practices and protecting consumers from unconscionable, unfair, unreasonable, unjust or improper trade practices and deceptive, misleading, unfair or fraudulent conduct.

What are the objectives of Consumer Protection Act 1986 10? ›

It provides effective safeguards to consumers against various types of exploitations and unfair trade practices. The Act has created special consumer courts for enforcement of the rights of consumers. It provides a convenient and inexpensive procedure for redressal of grievances of consumers.

What is the Consumer Protection Act 1987 summary? ›

The Consumer Protection Act 1987 is in place to hold manufacturers accountable for producing unsafe goods. It allows consumers to claim compensation if the defective product has caused personal injury, damage to property or death. Claims under the Act are generally brought against the product's 'producer'.

What is Section 6 of the consumer protection Act? ›

A consumer has the absolute right to buy any goods or services of his choice from among the different goods or services available in the market. In other words, no seller can influence his choice in an unfair manner. If any seller does so, it will be deemed as interference in his right to choice.

What are the 3 types of consumers called? ›

Primary consumers, mostly herbivores, exist at the next level, and secondary and tertiary consumers, omnivores and carnivores, follow. At the top of the system are the apex predators: animals who have no predators other than humans.

What is Section 13 of Consumer Protection Act? ›

(1) The District Forum shall, 2[on admission of a complaint], if it relates to any goods,— 3[(a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or ...

Who is the highest authority to settle the consumer dispute under Act? ›

State Consumer Disputes Redressal Commission or State Commission • National Consumer Disputes Redressal Commission or National Commission.

Who is a consumer class 12 consumer protection? ›

Any individual who purchases products or services for his personal use and not for manufacturing or resale is called a consumer. A consumer is one who is the decision-maker whether or not to buy an item at the store or someone who is influenced by advertisement and marketing.

What three 3 Things do all customers want when they complain? ›

It can be some major disaster or a trifle, in any case you should think of it as of an opportunity for improvements.
  • Customers want you to fix the problem. That's what your customers normally want. ...
  • Customers want to hear your excuses. ...
  • Customers want to help you. ...
  • Customers want to break up with you.
Apr 22, 2017

How do you write a strongly worded letter of complaint? ›

How to write an effective complaint letter
  1. Be clear and concise. ...
  2. State exactly what you want done and how long you're willing to wait for a response. ...
  3. Don't write an angry, sarcastic, or threatening letter. ...
  4. Include copies of relevant documents, like receipts, work orders, and warranties.
Sep 4, 2015

What kind of complaints can be filed? ›

The complaints can be of any types ranging from false bank charges, defective products, online shopping,defective services, fraudulent services etc.

What are the 2 types of complaints? ›

There are two types of complaints; misconduct and overcharging.

What are the 27 complaints? ›

The 27 grievances is a section from the United States Declaration of Independence. The Second Continental Congress's Committee of Five drafted the document listing their grievances with the actions and decisions of King George III with regard to the Colonies in North America.

What is it called when you complain about everything? ›

grump. noun. informal someone who complains a lot and is rarely happy.

What is a constructive complaint? ›

Constructive complaints are solution oriented, versus unfiltered rumination on negative experiences. As it turns out, there's some science behind the art of complaining.

How do you win a customer service complaint? ›

  1. Stay calm. If a client is upset or even rude, the best and sometimes only way to win them back is to stay calm. ...
  2. Listen to the client. ...
  3. Identify with their problems. ...
  4. Offer an apology. ...
  5. Take the initiative to solve a problem. ...
  6. Solve the problem as soon as possible. ...
  7. Take a few minutes to relax. ...
  8. Learn from your mistakes.
May 5, 2020

How do you complain effectively and get what you want? ›

How to complain effectively – and get results
  1. Put it in writing.
  2. Be reasonable.
  3. Know your consumer law.
  4. Go to the right place.
  5. Give a deadline.
  6. Say what you want.
  7. Take the matter further.
Mar 21, 2022

Which company has the most complaints? ›

The three august institutions — Equifax, Experian and TransUnion — are among the most complained-about companies in the nation, according to a recent analysis of data from the Consumer Financial Protection Bureau.
They are:
  • Equifax.
  • Experian.
  • TransUnion.
  • Bank of America.
  • Wells Fargo.
  • JPMorgan Chase.
  • Citibank.
  • Capital One.

What are the 5 factors most affecting consumer behavior? ›

Major Factors Influencing Consumer Behavior
  • Psychological Factors.
  • Social Factors.
  • Cultural Factors.
  • Personal Factors.
  • Economic Factors.


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