Compensation can’t be enhanced on re-appeal

Pushpa Girimaji

Two years ago I bought a laptop of a well-known manufacturer, but it turned out to be defective and despite several repairs, I could not use it. After my persistent complaints, the manufacturer offered to replace it, but I wanted a refund. So I filed a complaint before the consumer court and got what I wanted — refund and Rs 20,000 towards compensation. The manufacturer appealed against it, but was dismissed by the State Consumer Commission. Can I now file a complaint before the National Consumer Commission, seeking an enhancement of the compensation? I feel that I underestimated the compensation. 

I would advise you against it. First of all, you yourself had sought a compensation of Rs 20,000 and the District Forum granted you that. So I really do not see how you can now seek a higher compensation. Even if you had some valid and strong reason for enhancement of the damages, you should have brought it out before the State Commission. You did not do that and the State commission upheld the verdict of the District Forum. Now you cannot go to the National Consumer Disputes Redressal Commission seeking a higher compensation.

Let me quote for your benefit, a recent order of the National Commission in a somewhat similar case. Here, the complaint was about a desktop bought by the consumer in 2012, for a price of Rs 35,800. According to the complainant, within just four days of purchase, the machine malfunctioned and the company’s engineer repaired it and even charged Rs 500 from him. But the computer continued to have problems and when the engineer was called for the fourth time, he expressed his inability to resolve it. Fed up, the consumer filed a complaint before the District Consumer Disputes Redressal Forum. 

The Forum directed the manufacturer to refund the cost of the machine and in addition pay Rs 15,000 as compensation. Failure to refund the cost within 45 days will attract an interest of 9 per cent per annum from the date of the complaint till the date of payment, the Forum said. The manufacturer filed an appeal against this order before the State Consumer Disputes Redressal Commission, which dismissed the appeal and upheld the decision of the District Forum.

The consumer then filed a revision petition before the National Consumer Disputes Redressal Commission. His plea was that during the proceedings before the State Commission, he had demanded Rs 3 lakh as compensation and the President of the Commission had agreed to grant it. However, he had not ordered it. He was, therefore, seeking the intervention of the National Commission to get that amount.

The Commission dismissed the revision petition, saying it was infructuous. The Commission pointed out that the consumer should have filed an appeal before the State Commission, if he wanted an enhancement of the compensation, but he had not done so. Besides, in the averments made before the State Commission, nowhere was it mentioned that the consumer had made a claim for higher compensation. Nor had the State Commission made any changes in the order of the District Forum. Thus, the order of the State Commission, upholding the decision of the District Forum, had attained finality. And the revision petition had become infructuous, the Commission said. (Amarnath Vs M/S HCL Infosystem Ltd, RP No 3352 of 2018, order dated May 29, 2019)

I must also mention that the revisional powers of the National Commission are limited. The Supreme Court has made it clear in Rubi (Chandra)Dutta Vs M/S United India Insurance Co (CA No 2588 of 2011 ) that the National Commission can exercise its revisional jurisdiction only if there is prima facie jurisdictional error or miscarriage of justice. 

How much compensation can one expect in a complaint pertaining to a defective product?

That depends on various factors, including the product and its function, nature of the defect and its consequences. Obviously if the defect caused an injury to the user or damage to property, then the compensation will be proportionate to the loss caused. In many cases, the consumer courts also take into consideration the response of the manufacturer to consumer complaints about the defect. Hence, one has to carefully calculate the quantum of compensation on the basis of the financial loss, physical injury if any as well as mental anguish or agony. One can also ask for punitive or exemplary damages.