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Smart Summary

Factual and Procedural Background

The complainant, Supriyo Ranjan Mahapatra, filed a consumer complaint under Section 12 of the Consumer Protection Act, 1986, alleging deficiency in service against the Opposite Party (O.P.). The complainant placed an order on 12th December 2014 through the O.P.'s website for an ASUS X450-CAWX214D 14-inch laptop (Grey) without a laptop bag at a highly discounted price of Rs.190/- as against the original price of Rs.23,499/-. The O.P. promptly acknowledged the order and confirmed acceptance via email with order number #404-7619826-8681114, assuring delivery. However, on the same day, the complainant was informed by phone and later by email that the order was cancelled due to a pricing error. The complainant attempted to contact the O.P. through customer service and email without success and subsequently issued a legal notice on 17th January 2015, which went unanswered. The complainant alleged breach of contract and deficiency in service, seeking delivery of the laptop, Rs.50,000/- in damages, and Rs.10,000/- for litigation costs.

The O.P. denied the allegations, claiming the complaint was false, frivolous, and vexatious. The O.P. stated the order was cancelled due to a pricing error as per agreed terms and conditions, and no deficiency or negligence occurred. The O.P. also contended that the complainant had not suffered any cause of action under the Consumer Protection Act.

The Forum heard arguments, examined documents, and considered the facts and submissions before rendering its decision on 5th September 2018.

Legal Issues Presented

  1. Whether the cancellation of the complainant's order by the Opposite Party without valid cause constitutes deficiency in service under the Consumer Protection Act, 1986?
  2. Whether the complainant is entitled to compensation for mental agony and litigation costs due to the Opposite Party's actions?

Arguments of the Parties

Complainant's Arguments

  • The complainant placed a valid order which was accepted by the Opposite Party via email.
  • The order was cancelled without any fault on the complainant’s part and on a bald pretext of pricing error.
  • The Opposite Party failed to respond to repeated attempts for resolution and ignored a legal notice.
  • The cancellation amounted to a breach of contract and deficiency in service causing mental and pecuniary harassment.
  • Prayed for delivery of the laptop, Rs.50,000/- as damages, and Rs.10,000/- towards litigation costs.

Opposite Party's Arguments

  • The complaint is false, frivolous, and an abuse of the process of the Forum.
  • The order cancellation was due to a pricing error and was communicated promptly to the complainant.
  • The Opposite Party acted according to the terms and conditions agreed upon by the complainant.
  • The Opposite Party is not responsible for pricing errors as sellers alone are responsible for product listings and prices.
  • No deficiency in service or negligence occurred, and no cause of action arose under the Consumer Protection Act.
  • Prayed for dismissal of the complaint in the interest of justice.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court found that the complainant had accepted the O.P.'s online offer and had promised payment through cash on delivery. The O.P. acknowledged the order by email, thus forming a contract. However, the O.P. cancelled the order on the same day citing a pricing error, which amounted to a breach of contract. The Court noted that the complainant was entitled to protection as a consumer under Section 2(d)(1) of the Consumer Protection Act, 1986, since he had agreed to pay consideration for the goods. The Court held that the O.P. was negligent in rendering proper service and engaged in unfair trade practice by cancelling the order without valid cause and failing to respond to the complainant’s grievances. Hence, the Court found deficiency in service on the part of the O.P.

Holding and Implications

The complainant's case was partly allowed. The Opposite Party was directed to pay Rs.10,000/- as compensation for mental agony and Rs.2,000/- towards the cost of litigation within one month of the order, failing which the dues would carry 14% interest per annum.

The direct effect is financial compensation to the complainant for the deficiency in service. No further directions for delivery of the product were issued. The decision does not establish any new precedent beyond the facts of this case.

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    Mr. Supriyo Ranjan Mahapatra v. M/s. AMAZON Development Centre India Pvt. Ltd

    DATE OF DISPOSAL: 05.09.2018 Sri Karuna Kar Nayak, President. The complainant Supriyo Ranjan Mahapatra has filed this consumer complaint Under Section 12 of the Consumer Protection Act, 1986, alleging deficiency in service against the Opposite Party ( in short the O.P.) and for redressal of his grievance before this Forum.

    2. Briefly stated the case of the complainant is that he placed order on 12 th December 2014 to O.P. in its website . has floated an offer for sale ofhttp://amazon.co.in ASUS X450-cawx214d 14 INCH laptop (Grey) without Laptop Bag (reportedly sold by one of its dealer named Rocky Marketing) for an amount of Rs.190/- as against its reported original price of Rs.23,499/- and there by offering a promotional discount of Rs.23,309/-. Immediately within minutes of placing of the order by the complainant, the O.P. was prompt enough to not only to acknowledges the order but has also sent mail dated 12.12.2014/ 10:27 hours to the complainant to his e-mail ID . Confirmingsupriyaranjan.sr@gmail.com acceptance of the order but also allotted order No. #404-7619826-8681114 with an assurance of the delivery of the order/product soon. While the matter stood thus and the complainant was in waiting for the ordered product, a couple of hours later on the same day

    i.e. on 12.12.2014 to the utter surprise and embarrassment of the complainant, he received a phone call reportedly from the customer service department of the O.P. saying that the subject order of the complainant stands cancelled. Later, being questioned as to the reason for such illegal cancellation, the O.P. vide its e-mail communication dated, 12 Decemberth 2014 14:56 & 17:30 hrs intimated cancellation of the order on a bald pretext of pricing issue which is crystal clear of a severe breach of specific performance of the contract on the part of the O.P. Upon receipt of the e-mail communication with regard to the cancellation of the order and that too for no fault and/or no wrong on the part of the complainant, the complainant made his level best to contract the O.P. through the O.Ps toll free 24 hours costumer care help line as well as through e-mail but all went in vain and the O.P. did not bother to come forward to respond and/or resolve to the complainants issue. Having received no response from the O.P. the complainant finally was forced to issue a legal notice on 17 th January 2015 through his lawyer but to no effect as the O.P. did not reply to the said notice nor took any action to resolve the issue of the complainant as was conveyed to the O.P. in the said notice. Acceptance of the order of the complainant and there after cancellation of the same without and valid cause and/or without any default on the part of the complainant, clearly amounts to severe breach of performance of the contract on the part of the O.P. and as such the O.P. is liable not only to perform the contract enter into with complainant vide its confirmation e-mail referred above and thereby deliver the subject product i.e. ASUS X450-CAWX214D 14 inch Laptop (Grey) without laptop bag but is also liable for damages for subjecting the complainant into unwarranted mental and pecuniary harassment and also is liable for cost of litigation. Alleging deficiency in service on the part of the O.P. the complainant prayed to direct the O.P. to deliver the subject product i.e. ASUS X450-CAWX214D 14 inch (Laptop Grey) without laptop Bag to the complainant together with RTs.50,000/- towards damages, Rs.10,000/- towards costs of litigation in the best interest of justice.

    3. Upon notice the O.P. filed version through his advocate. It is stated that the complaint is false, frivolous, vexatious and abuse of the process of this Forum and the same is liable to be dismissed. The present complaint does not raise any Consumer Dispute as defined under the Act, and therefore the same is liable to be dismissed. The complainant placed order for Asus X450CA-WX214D 14-inch Laptop (Gray) without laptop bag vide order No. #404-7619826-8681114 on 12 December 2014 on the website of the OP, after duly agreeing to conditions of use and sale and other terms and conditions prescribed therein. Only after duly agreeing to and giving assent to conditions of use and sale, the complainant placed order for the said product. The order was cancelled due to pricing error and the complainant was informed via phone and Email about the cancellation of the order due to pricing error. No complaint whatsoever was received by the O.P. from the complainant and the complainant with an intention to concoct a story and gain unlawful returns against the OP has filed this instant case. The OP has acted strictly as per the conditions for use and sale and OP is in no manner responsible for listing and/or pricing of the products available on the website and the sellers are solely responsible for any pricing error on the website, to the total exclusion of O.P. No cause of action ever arose against the O.P. and there is no deficiency of service or negligence on the part of the O.P. It is clearly deduced that as per the agreed terms and conditions, courts and Delhi are vested with exclusive jurisdiction to try this complaint. Hence the O.P. prayed to dismiss the case in the interest of equity, justice and good conscience.

    4. On the date of hearing of the consumer complaint learned counsel for both sides were present. We heard argument at length and perused the complaint petition, written version and written argument and materials placed on the case records. It reveals that the complainant placed his order through online in the Website of O.P. i.e. .http://amazon.co.in of O.P. for a laptop for an amount of Rs.190/- as against its reported original price of Rs.23,499/- and thereby offering a promotional discount of Rs.23,309/-on 12.12.2014 by the O.P, with the option for the mode of payment as cash on delivery and the O.P. also sent e-mail on dated 12.12.2014 at 10.27 hours to the complainants e-mail I.D. confirming the acceptance of the order vide No.#404-7619826-8681114. It implies that the complainant has accepted the offer of the O.P. but on the same day the Customer Service Department of the O.P. through telephone informed the complainant that the subject order stands cancelled. It also reveals that the complainant after query regarding the cancellation of the order got to know through E-mail that due to Pricing issue the said order is cancelled. Section 2(d)(1) Consumer means any person who:-

    (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose.

    5. In the instant case it is clear evident that the complainant has accepted the online offer of the O.P. and the complainant has promised to pay the cash on delivery of the product as he had opted with the option for the mode of payment as cash on delivery. Hence, in our considered view the O.P. is not only negligent in rendering proper service to the complainant but also involved in unfair trade practice; as such we hold there is deficiency in service on the part of the O.P.

    6. In the result the complainants case is partly allowed against the Opposite Party on contest and the O.P. is directed to pay Rs.10,000/- (Rupees Ten Thousand) only towards compensation for mental agony to the complainant along with Rs.2,000/- (Rupees Two Thousand) only towards the cost of litigation within one month from the receipt of this order, failing which all the dues shall carry 14% interest per annum. The order is pronounced on this day of 5 September 2018 under the signatureth and seal of this Forum. The office is directed to supply copy of order to the parties free of cost and a copy of same be sent to the server of for posting in internetwww.confonet.nic.in and thereafter the file be consigned to record room. [HON'BLE MR. Karunakar Nayak] PRESIDENT [HON'BLE MR. Purna Chandra Tripathy] MEMBER

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    Mr. Supriyo Ranjan Mahapatra v. M/s. AMAZON Development Centre India Pvt. Ltd
    (Sep 5, 2018)