Introduction

After a complaint is admitted and mediation is not possible or has failed, the Consumer Commission proceeds with the formal hearing of the complaint. Section 38 of the Consumer Protection Act, 2019 lays down the procedure for conducting this hearing. The purpose is to ensure a fair and quick resolution of consumer disputes.

Meaning / Definition

Hearing of the complaint refers to the stage where the Consumer Commission examines the claims of the complainant and the response of the opposite party, evaluates the evidence, and finally decides the dispute.

Under Section 38, the Commission follows specific procedures depending on whether the complaint relates to goods or services.

Modes or Types

Situations When Hearing Begins

The Commission proceeds with the hearing of the complaint when:

• The Commission finds that the dispute cannot be settled through mediation
• The dispute belongs to a category that cannot be referred to mediation
• The dispute was referred to mediation but the mediation process failed

Procedure in Complaints Relating to Goods

Notice to the Opposite Party

The Commission sends a copy of the complaint to the opposite party within 21 days asking for its response.

The opposite party must submit its objections within 30 days. The Commission may extend this period by a maximum of 15 additional days.

Admission of Liability

If the opposite party admits the claim, the Commission may pass an appropriate order and dispose of the complaint.

Dispute or No Response

If the opposite party:

• Files objections denying the allegations, or
• Fails to file objections within the allowed time

the Commission will proceed to hear and decide the complaint.

Testing of Defective Goods

If the alleged defect cannot be determined without testing, the Commission will:

• Obtain a sample of the goods from the complainant
• Seal and authenticate the sample
• Ask the complainant to deposit the required testing fee

The sealed sample will then be sent to an appropriate laboratory for analysis.

An appropriate laboratory means a laboratory or organisation:

• Recognised by the Central Government
• Recognised by a State Government
• Established under law and supported by the Central or State Government for testing goods

Laboratory Report

After the laboratory completes the analysis:

• A copy of the report is given to both parties
• Both parties may raise objections to the report
• Both parties are given an opportunity to argue for or against the report

After considering the report and arguments, the Commission passes a final order.

If testing of goods is not required, the Commission follows the procedure used for complaints relating to services.

Procedure in Complaints Relating to Services

The procedure is largely similar to that followed for goods.

Notice to Opposite Party

• A copy of the complaint is sent within 21 days
• The opposite party must submit objections within 30 days
• The Commission may extend the time by a maximum of 15 days

Disposal of Complaint

If the opposite party:

• Admits liability, the Commission may pass an order immediately.

If the opposite party:

• Denies the allegations, or
• Fails to respond,

the Commission will proceed to hear the complaint and decide the dispute.

Recording of Evidence

Under Sections 38(5) and 38(6):

• The Commission decides the case based on evidence produced by the parties
• Evidence is generally given through affidavits (written sworn statements) and documents

The Commission may allow:

• Personal hearing of parties, or
• Video conferencing hearings

Witnesses may be examined only if:

• The applicant shows sufficient reason, and
• The Commission records its reasons in writing for allowing such examination.

Time Frame for Disposal of Complaints

The Act requires the Commission to decide complaints as quickly as possible.

The usual time limits are:

• Three months if the complaint does not require testing of goods
• Five months if testing or laboratory analysis is required

Adjournments

The Commission normally avoids granting adjournments (postponements of hearings).

However, if there is a valid reason, an adjournment may be granted. In such cases, the party seeking the adjournment may be required to pay costs (compensation for delay) to the opposite party.

Practical Example

A consumer purchases a pressure cooker that explodes during use. The consumer files a complaint claiming that the cooker is defective.

The Commission sends a copy of the complaint to the manufacturer. If the manufacturer denies the allegation, the Commission may send the cooker sample to an approved laboratory for testing. After receiving the laboratory report and hearing both parties, the Commission will decide whether the product was defective and grant appropriate relief.

Summary

• Section 38 of the Consumer Protection Act, 2019 governs the hearing of consumer complaints.
• Hearing begins when mediation is not possible or mediation fails.
• The Commission sends a copy of the complaint to the opposite party within 21 days.
• The opposite party must file objections within 30 days, extendable by 15 days.
• In cases involving defective goods, the Commission may send samples to an appropriate laboratory for testing.
• Evidence is usually presented through affidavits and documents, though witnesses may be examined if necessary.
• Complaints should normally be decided within 3 months, or 5 months if laboratory testing is required.
• Adjournments are discouraged but may be granted for valid reasons with payment of costs.