DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION SAS NAGAR (MOHALI)

Consumer Complaint No.1859 of 2019

                                                Date of institution:  25.09.2019                                              Date of decision   :  20.08.2020

Gurpreet Kaur resident of SCF 32, Phase-5, SAS Nagar, Mohali 160059.

…….Complainant

Versus

Brand Factory (FLFL), through its Store Manager,

Address: Cosmo Plaza, NH-22, Zirakpur, District Mohali-140603

                                                      ……..Opposite Party  

Complaint under Consumer Protection Act.

Quorum:   Shri Sanjiv Dutt Sharma, President.

                Mrs. Natasha Chopra, Member

Present:    Shri Karamveer Singh, counsel for the complainant.

                OP Ex-parte.

Order dictated by :-  Shri Sanjiv Dutt Sharma, President.

Order

               The present order of ours will dispose of a complaint under Consumer Protection Act, filed by the complainant (hereinafter referred as ‘CC’ for short) against the Opposite Party (hereinafter referred as ‘OP’ for short), wherein it is mentioned, that CC has approached this Commission on the ground that she purchased Hankies of Firenzi Brand from the Clothing Store of the OP. It is alleged that MRP of the product was Rs.199/- inclusive of all taxes and there was 60% discount on it. It is alleged that the CC was to pay only Rs.79.60 to the OP, but instead of charging this amount, the OP added GST @ 5% of Rs.3.98 and charged Rs.84/- from the CC. Despite repeated requests of the CC, no clarification was provided by the OP. It is alleged that it is a case of misleading advertisement and also of unfair trade practice.

                Thus alleging unfair trade practice and deficiency in service on the part of the OP, the CC has sought the refund of Rs.3.98 charged by the OP for the GST and compensation to the tune of Rs.35,000/-. Complaint is duly signed and verified. Further the same is also supported by an affidavit of the CC.

2.             Notice was duly issued to the OP on 10.07.2020. Since period of 30 days has elapsed, it is presumed that the OP stands served but today no one appeared on behalf of the OP Accordingly, the OP is proceeded against ex-parte at 4.00 p.m.

3.             At this stage, counsel for the CC appeared and filed an application alongwith copy of compromise and also made a statement in the Commission. He has stated that the CC has compromised the matter with the OP and “case be decided accordingly”. Since the OP has compromised the matter with the CC and a copy of the same is attached with the application, wherein it is mentioned that the OP is ready to pay Rs.7,000/- to the CC within 60 days on or before 14.09.2020. To our mind, this is clear admission on the part of the OP which clearly proves that OP has arbitrarily charged GST from the CC by adopting unfair trade practice and has also committed deficiency in service.

4.             It is noticed that such type of huge number of cases are pending against the OP on similar point in controversy. It is also noticed that in a number of cases CCs without giving full details of their whereabouts file complaint against the OP and as and when OP,  is served a compromise is produced or a statement is given by the Advocate of the CC that OP has compromised the matter on certain amount and he prays for withdrawal of the complaint. It is also noticed that even in some cases the compromise is also not produced. It is also noticed that even in some cases address of the various CCs is also the same which is given in various cases. It appears to be a case of misuse of process of law by both the parties. It appears that somebody is misusing the process of law by simply filing complaints before this Commission against a particular OP and then whenever service of the OP is effected,  compromises the matter and then withdraws the case so that OP could continue with this malpractice regularly in future. It is writ- large on the file that OP must be minting lakhs and lakhs of rupees by overcharging innocent consumers daily and do not mind in paying small amount in lieu of these complaints to the various complainants who are probably generated for this purpose. We feel, that such type of malpractice has to be stopped. We also feel that in order to stop malpractice strict order is required to be passed from this Commission. District Mohali is a big district. The OP must be having number of stores around Mohali also. In order to curb this practice, following order is passed by this Commission:

(1)    It is ordered that OP will pay Rs.7,000/- (Rs. Seven Thousand only) to the CC as settled by it with the CC in terms of compromise Ex.Z-1.

(2)    It is further ordered that OP will pay punitive cost of Rs.25,000/- (Rs. Twenty Five Thousand only) which will be deposited in the Legal Aid Fund of this Commission. This special punitive cost is imposed to deter the OP for its outrageous conduct in order to reform the OP and refrain it from engaging in such type of similar activities.

5.             The OP is further ordered to comply with this order within a period of 60 days. Free certified copies of this order be supplied to the parties as per rules.  File be indexed and consigned to record room.

Announced

August 20, 2020

                                                                (Sanjiv Dutt Sharma)

                                                                President

(Mrs. Natasha Chopra)

Member