Source: Indian Express  

Introduction 

In recent times, the efficacy of online travel agencies in handling customer disputes has come under scrutiny. The case involves the Jaiswal family, who booked flights through Goibibo, only to face complications when Jet Airways went bankrupt. Despite multiple attempts to secure a refund, Goibibo's inaction led the family to seek redress through the consumer dispute redressal commissions. 

What Were the Background and Judgment of the Forum in the Jaiswal Family's Dispute with Goibibo? 

Background of the Case

• The case involves a family of three who had booked flights from New Delhi to Edmonton, Canada through the online travel agency Goibibo.  
• The booking was for Jet Airways flights, which were scheduled for October 2019. However, in April 2019, Jet Airways went bankrupt and ceased all flight operations, leading to the cancellation of the Jaiswal family's flight. 
• The Jaiswal family then approached Goibibo multiple times to seek a refund of the ticket amount, which was Rs. 1,83,140.  
• Despite their repeated requests and even a legal notice, Goibibo did not provide the refund.  
• Consequently, the family filed a complaint at the District Consumer Disputes Redressal Commission, Moga, alleging deficiency of service and unfair trade practices by Goibibo. 

Observations and Judgment 

• The District Commission directed Goibibo to refund the ticket amount with interest at the rate of 8% per annum from the date the tickets were booked. 
• Goibibo appealed this order before the State Consumer Disputes Redressal Commission, but the appeal was rejected.  
• This led to a further appeal before the National Consumer Disputes Redressal Commission (the National Commission). 
•  The National Commission, like the State Commission before it, referred to the 'Goibibo International flight booking policy,' which stated that it was mandatory for the customer to contact Goibibo for all refunds, as the airline would not be able to refund the tickets booked through Goibibo.  
  • The National Commission also noted a circular issued by Jet Airways, which directed customers to claim their refund from the travel agent or aggregator, as applicable. 
• The National Commission agreed with the well-reasoned order of the State Commission and held that Goibibo had failed to produce any convincing evidence to show that it had passed the payment to Jet Airways and that Jet Airways was responsible for the refund.  
• Therefore, Goibibo could not escape liability for the refund, which it had received from the Jaiswal family. 

What is Consumer Disputes Redressal Commission? 

About: 

• The Consumer Disputes Redressal Commission is an institutional mechanism established in India to provide speedy and inexpensive redressal of consumer complaints and disputes through quasi-judicial bodies at the national, state, and district levels. 
• Chapter IV of The Consumer Protection Act, 2019 deals with Consumer Dispute Redressal Commission 
• There are 3 types of Consumer Dispute Redressal Commission in India. 
  • District Consumer Dispute Redressal Commission 
  • State Consumer Dispute Redressal Commission 
  • National Consumer Dispute Redressal Commission 

District Consumer Dispute Redressal Commission under the Consumer Protection Act, 2019: 

• Section 28 - Establishment of District Consumer Disputes Redressal Commission 
  • The state government shall establish a District Consumer Disputes Redressal Commission (District Commission) in each district. 
  • The District Commission shall consist of a President and 2-5 members. 
• Section 34 - Jurisdiction of District Commission 
  • The District Commission shall have jurisdiction for complaints where the value of goods/services does not exceed 1 crore rupees. 
  • A complaint can be filed within the local limits where the opposite party resides/carries on business, where the cause of action arises, or where the complainant resides. 
  • The District Commission shall function at the district headquarters and other notified locations. 

State Consumer Dispute Redressal Commission under the Consumer Protection Act, 2019: 

• Section 42 - Establishment of State Consumer Disputes Redressal Commission 
  • The state government shall establish a State Consumer Disputes Redressal Commission (State Commission) in the state. 
  • The State Commission shall ordinarily function at the state capital and may establish regional benches at other places. 
  • The State Commission shall consist of a President and 4-10 members. 
• Section 47 - Jurisdiction of State Commission 
  • The State Commission shall have jurisdiction for: 
  • Complaints where the value of goods/services exceeds 1 crore rupees but does not exceed 10 crore rupees. 
  • Complaints against unfair contracts where the value does not exceed 10 crore rupees. 
  • Appeals against orders of District Commissions within the state. 
  • Calling for records and passing orders in any consumer dispute pending before or decided by a District Commission within the state, if the District Commission has exercised jurisdiction not vested in it or failed to exercise jurisdiction vested in it, or acted illegally or with material irregularity. 
  • The jurisdiction may be exercised by benches constituted by the President with one or more members. 
  • Where the bench members differ in opinion, the majority opinion shall prevail, or if equally divided, the President or another member shall hear and decide the matter. 
  • A complaint can be filed in the State Commission based on the location of the opposite party, cause of action, or location of the complainant. 
• Section 50 - Review by State Commission 
  • The State Commission shall have the power to review any of its own orders if there is an error apparent on the record, either on its own motion or on an application made by any party within 30 days. 
• Section 51 - Appeal to National Commission 
  • Any person aggrieved by an order of the State Commission on matters within its jurisdiction may appeal to the National Commission within 30 days. 
  • The National Commission shall not entertain the appeal after 30 days unless there was sufficient cause for the delay. 
  • No appeal shall be entertained by the National Commission unless the appellant has deposited 50% of the amount ordered by the State Commission. 
  • An appeal may also lie to the National Commission from any order passed in appeal by a State Commission, if the National Commission is satisfied that the case involves a substantial question of law. 

National Consumer Dispute Redressal Commission under the Consumer Protection Act, 2019: 

• Section 53 - Establishment of National Consumer Disputes Redressal Commission 
  • The central government shall establish a National Consumer Disputes Redressal Commission (National Commission). 
  • The National Commission shall ordinarily function at the National Capital Region and may establish regional benches at other places. 
• Section 54 - Composition of National Commission 
  • The National Commission shall consist of a President and 4-10 members. 
• Section 55 - Qualifications, Appointment, and Terms of President and Members 
  • The central government shall make rules regarding the qualifications, appointment, term of office (not exceeding 5 years), salaries, allowances, resignation, removal, and other terms and conditions of service of the President and members of the National Commission. 
  • The President and members shall not hold office after attaining the age of 70 and 67 years respectively. 
• Section 58 - Jurisdiction of National Commission 
  • The National Commission shall have jurisdiction for: 
  • Complaints where the value of goods/services exceeds 10 crore rupees. 
  • Complaints against unfair contracts where the value exceeds 10 crore rupees. 
  • Appeals against orders of State Commissions. 
  • Appeals against orders of the Central Authority. 
  • Calling for records and passing orders in any consumer dispute pending before or decided by a State Commission, if the State Commission has exercised jurisdiction not vested in it or failed to exercise jurisdiction vested in it, or acted illegally or with material irregularity. 
  • The jurisdiction may be exercised by benches constituted by the President with one or more members. 
  • Where the bench members differ in opinion, the majority opinion shall prevail, or if equally divided, the President or another member shall hear and decide the matter.
• Section 62 - Transfer of Cases 
  • The National Commission may, in the interest of justice, transfer any complaint pending before a District Commission or State Commission to another District or State Commission, on the application of the complainant or of its own motion. 

Enforcement of Order by Consumer Dispute Redressal Commission: 

• Section 71 - Enforcement of Orders 
  • Orders of the District Commission, State Commission, or National Commission shall be enforced in the same manner as a court decree, using the provisions of Order 21 of the Code of Civil Procedure. 
• Section 72 - Penalty for Non-Compliance of Orders 
  • Failure to comply with an order of the District Commission, State Commission, or National Commission is punishable with:  
    • Imprisonment of 1 month to 3 years, and/or 
    • Fine of ₹25,000 to ₹1 lakh. 
  • The respective Commission shall have the powers of a Judicial Magistrate of the First Class for trial of such offences. 
  • The offences shall be tried summarily by the respective Commission. 
• Section 73 - Appeal Against Orders Under Section 72 
  • Appeals against orders under Section 72 can be made:  
    • From District Commission order to State Commission 
    • From State Commission order to National Commission 
    • From National Commission order to Supreme Court 
  • No other appeal shall lie against orders of the Commissions, except as provided in this section. 
  • Appeals must be filed within 30 days, but the higher forum may condone the delay if sufficient cause is shown. 

Conclusion 

The Consumer Disputes Redressal Commission system in India provides a structured approach for resolving consumer complaints through quasi-judicial bodies at district, state, and national levels. In the Jaiswal family's case, their dispute with Goibibo over a flight refund was initially resolved by the District Commission, which directed Goibibo to refund the amount. This decision was upheld by both the State and National Commissions, which found that Goibibo was responsible for the refund as per its own policies. The commissions ensure accountability and protect consumer rights.