Build up evidence base in your own interest

n consumer disputes, it is always imperative to set legal process in motion at earliest date possible. Writing letters to the company to build an evidence base, serve them with legal notice and filing the case at consumer fora ought to be taken place quickly. Otherwise, consumers would lose the interest compensation as the fora consider the date of legal notice, date of complaint or date of verdict as the base date to award interest on amount of the incurred loss.

A recent verdict by Visakhapatnam District Consumer Forum can vouch for this.

Although the verdict was in favour of the consumer, she could get interest compensation only from January 2006, the date of legal notice, while she had paid money to the builder in July 1995.

“Delay in filing case will not only cost interest compensation, but at times, the cases also can be rejected for taking such a long gap from the date of incident,” said C.V.L. Narasimha Rao, an advocate and consumer rights activist.
Registration

L.T. Vineela joined in Sai Kanaka Durga Layout of GPR Housing Pvt. Ltd., Visakhapatnam in March 1995.

She paid Rs.36,800 towards the plot with in four months but it was not registered in her name in due time.

In spite of a legal notice, the developers failed to register the site with an approved layout from Municipal authorities or to refund her money.

In April 2008, she filed a case in the District Forum seeking a direction to the builder to refund Rs.36,800 with interest of 18 per cent per annum from July 1995, Rs.1 lakh towards damages and court costs.
Compensation

The forum observed that the builder received substantial amount from the customer, but could not get approval from authorities to register the plot and it was nothing but deficiency in service.

It ordered the builder to refund Rs.36,800 with 12 per cent interest per annum from January 6, 2006, the date of legal notice, to the date of realisation and Rs.7,000 for compensation along with Rs.1,000 for court costs. Time given for compliance was four weeks.

To avoid pitfalls in compensation the consumers should move to the court at earliest date possible and seek the compensation they deserve.