If a customer has filed a consumer complaint against your business and the District Commission has sent you its notice with a copy of the complaint, you have thirty days from that service to file your version, and the Commission may extend that by not more than fifteen days. That is Section 38(3)(a) of the Consumer Protection Act, 2019 for a service and Section 38(2)(a) for goods. Forty-five days is the outer limit, because a Constitution Bench has held that no forum can take a version on record after it. File nothing and Section 38(3)(b)(ii) lets the Commission decide the case ex parte on the evidence the customer brings.
Part of the consumer protection practice at S Jain & Attorneys, Bangalore.
This page is for the opposite party in a District Commission complaint of ordinary value, not for a complainant and not for a product liability action under Chapter VI. Five defences do most of the work at the threshold, and each belongs in the version with its documents.
| Threshold defence | What has to be on the record | Source |
|---|---|---|
| Not a consumer: the purchase was for a commercial purpose | The customer's own invoices, tax registration or resale records, showing a dominant purpose with a close and direct nexus to profit | Section 2(7) and its Explanation |
| No deficiency and no defect | What the contract required, what you did, and no inadequacy in the service or defect in the goods | Section 2(11) and Section 2(10) |
| The complaint is out of time | A cause of action more than two years before filing, with no sufficient cause recorded | Section 69 |
| Wrong forum by value or territory | Consideration paid above Rs 50 lakh, or no ground in Section 34(2) made out | Section 34 with the 2021 Rules |
| Already settled or paid | The settlement, refund entry, credit note or voucher, and proof it was acted on | A defence on the facts, not in the Act |
If the customer succeeds, Section 39(1) lets the Commission order a refund with interest, compensation, removal of the deficiency and costs, and punitive damages under the proviso to Section 39(1)(d). Three things about the clock come first.
Served with the complaint
The thirty days run from receipt of the notice with a copy of the complaint, not from a bare notice.
Forty-five days total
Thirty days under Section 38 plus an extension of not more than fifteen, which the Commission gives in its discretion.
No power to extend
A Constitution Bench held that no forum can take a version on record beyond those forty-five days. The discretion ends there.
What happens if I do not reply to the consumer complaint against my business in time?
You lose the right to put your own account before the Commission, and the case is decided on the customer's affidavit alone. For a service, Section 38(3)(b)(ii) says that where the opposite party fails to take any action to represent his case in the time given, the Commission proceeds ex parte on the complainant's evidence. For goods the same thirty days sit in Section 38(2)(a), and a goods complaint that needs no sample testing runs under Section 38(3) as well.
In New India Assurance Co. Ltd. v Hilli Multipurpose Cold Storage Pvt. Ltd., decided on 4 March 2020, a Constitution Bench held that the forum has no power to extend the time for the response beyond fifteen days in addition to thirty, and that the thirty days begin from receipt of the notice accompanied by a copy of the complaint, not from the notice alone. It read Section 13 of the repealed 1986 Act, in the same words.
Section 38 of this Act is read the same way. In ATS Real Estate Builders Pvt. Ltd. v Kaushal Kumar Gupta, decided on 29 May 2026, the National Commission applied Hilli to Section 38(2)(a) in a State Commission complaint and held that beyond forty-five days it has no discretion, with one concession it drew from a Larger Bench ruling of 23 July 2024: where the forty-fifth day is a holiday, a version filed on the next opening day is in time.
Hilli requires an objection that no copy came with the notice to be taken on the first date, not later. And Section 61 gives the power to set aside an ex parte order to the National Commission alone, so against a District Commission order the only routes are the review and the appeal below.
Deadline warning. Thirty days from service of the notice with the complaint, extendable by not more than fifteen, and nothing after the forty-fifth day. A review under Section 40 runs thirty days from the order and an appeal forty-five.
- Record the date the papers reached you, keep the envelope or email header, and object on the first date if the annexures did not come with the notice.
- Pull the contract, the invoice, the payment record and every message with this customer, and keep only the defences they support.
- Have the version verified by someone who knows the facts, and file inside thirty days or move the extension before the thirtieth. The Regulations prescribe no form for it, so it goes in as a pleading with the documents annexed.
How does the commercial purpose defence really work, and was my customer a consumer at all?
It works far less often than it is pleaded. Section 2(7) excludes a person who obtains goods for resale or for any commercial purpose, and a person who avails of a service for any commercial purpose, and the Explanation then takes out of commercial purpose the use of goods bought and used exclusively for earning a livelihood by self-employment. That Explanation operates for the purposes of the whole clause, and clause (a) of it speaks of goods bought and used.
The test is not whether your customer is a business. In Lilavati Kirtilal Mehta Medical Trust v M/s Unique Shanti Developers, decided on 14 November 2019, the Supreme Court drew four principles from the earlier cases. The question is one of fact, and commercial purpose ordinarily covers industrial activity and business-to-business transactions between commercial entities. The purchase must have a close and direct nexus with a profit-generating activity. Neither the purchaser's identity nor the value of the transaction is conclusive, because what is looked for is the dominant purpose, and where that purpose was personal use the self-employment question does not arise.
Nor can the objection kill the complaint at the threshold. In Rohit Chaudhary v M/s Vipul Ltd., decided on 6 September 2023, the Court held that where the complaint asserts a purchase to earn a livelihood it cannot be nipped at the bud and the evidence has to be evaluated on the pleadings. Both judgments read the 1986 definition, whose operative exclusion this Act repeats.
Common mistake. Pleading every threshold defence as a bare sentence and keeping the documents back for arguments. The matter is decided on the affidavit and the papers on record, so a defence with no material behind it is usually spent before evidence closes.
What counts as a deficiency in service, and what does not?
Deficiency has a definition and it is narrower than dissatisfaction. Section 2(11) means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance required by law or undertaken under a contract, and it includes any act of negligence, omission or commission causing the consumer loss or injury, and the deliberate withholding of relevant information. Section 2(42) also puts two things outside service altogether: one rendered free of charge, and one under a contract of personal service.
Two rules of evidence matter more than the definition. In Ravneet Singh Bagga v KLM Royal Dutch Airlines, decided on 2 November 1999, the Supreme Court held that deficiency cannot be alleged without attributing fault, imperfection, shortcoming or inadequacy, that the burden of proving it lies on whoever alleges it, that no wilful fault is inferred where the dispute is bona fide, and that where the provider took all precautions and acted in good faith there is no deficiency. In SGS India Ltd. v Dolphin International Ltd., decided on 6 October 2021, the Court held that the burden shifts to the opposite party only once the complainant has discharged that initial onus.
Both decisions read the 1986 definition, which is the first limb of Section 2(11). The present one is wider, so an undisclosed fact is harder to defend than the older cases suggest.
So the answer turns on what you undertook. A delay the contract permits, a result it never promised and a charge approved in writing are not deficiencies. A promise made over a messaging app by someone in your office usually is, which is why how the service agreement was drafted settles most of this in advance.
What can the Commission order against me, including costs and punitive damages?
More than the refund, and the Act fixes no cap on the compensation. Section 39(1) runs from removal of the defect and replacement of the goods, through return of the price or charges with interest and compensation for loss or injury caused by negligence, to removal of deficiencies in the service, discontinuance of an unfair or restrictive trade practice, a corrective advertisement at your cost where the advertising misled, and costs.
Punitive damages sit in the proviso to Section 39(1)(d), in such circumstances as the Commission deems fit, with no stated ceiling and no list of triggers, which is why the facts you admit in the version matter as much as those you deny.
Not everything waits for the final order. Section 38(8) allows an interim order at any stage as is just and proper, and adjournments are expensive by design: Section 38(7) requires reasons and an order as to costs, which Regulation 11(4) of the Consumer Protection (Consumer Commission Procedure) Regulations, 2020 sends to the other side or into the Consumer Legal Aid Account.
Should I offer a settlement or mediation now, and how is it recorded?
Mediation is available from the first hearing after admission, except in the classes of case the Central Government has prescribed, and a settlement recorded through it is the one outcome in this Act the other side cannot appeal. Section 37(1) lets the Commission, at that hearing or later, direct the parties to consent in writing within five days where it appears that elements of a settlement exist, and Section 37(2) requires the reference within five days of that consent. It runs in the consumer mediation cell attached to the Commission, Section 79(1).
The recording is what gives it value. Under Section 80(1) the terms are reduced to writing and signed by the parties or their representatives, and the mediator forwards it with a report, on which Section 81(1) requires the Commission to record the settlement within seven days and dispose of the matter. The third proviso to Section 41 says no appeal lies from that order. Where only some issues settle, Section 81(2) lets it record those and hear the rest.
A settlement reached privately is different. Until it is on the record the complaint is alive, so a quiet payment with no withdrawal and no order can leave you paying and still defending.
Do I need a lawyer, and can my manager appear for the company?
No lawyer is compulsory, and a company can act through a properly authorised officer. Regulation 26(4) of those Regulations says the Commission shall not insist upon the parties engaging advocates, and Regulation 2(b) defines an agent as a person duly authorised by a party to file a written version or written submissions and to address or plead on its behalf. A company is a person under Section 2(31), so the authority goes in by board resolution or a power of attorney naming the officer.
There is a limit on who that officer can be. Regulation 16(7) provides that while a Commission may permit an authorised agent to appear, the agent shall not be one who has used this as a profession, advocates excepted, and Regulation 16(8) allows an agent to be debarred for misconduct. Regulation 16 is headed as dealing with voluntary consumer organisations, so a Commission may read it in that setting. The practical reading is that your own director or employee may appear while a professional appearance agent may not.
Who signs matters more than who speaks. Section 38(6) makes this a hearing on affidavit and documents, with oral examination only on an application and for recorded reasons, so an affidavit sworn by an officer with no knowledge of the transaction is a weakness the other side will find.
If I lose, can I appeal, and must I deposit money first?
You can appeal to the State Commission within forty-five days of the order, and if the order directs you to pay anything the appeal will not be entertained until you deposit fifty per cent of that amount in the prescribed manner. Section 41 carries both, with a first proviso allowing a late appeal where the State Commission is satisfied there was sufficient cause, and a third proviso barring an appeal from an order recording a mediated settlement.
Section 40 also lets the District Commission review its own order for an error apparent on the face of the record, on an application made within thirty days. Section 47(1)(b) gives the State Commission a revisional power where a District Commission has exercised a jurisdiction not vested in it or acted illegally, for which Regulation 14(1)(i) allows ninety days from the certified copy. Which forum sits where, and on what value, is in the guide to consumer court types and jurisdiction.
The deposit is the figure to plan for. It is fifty per cent of what the order directs you to pay, not a court fee, so an order for a refund with interest and compensation is a cash requirement inside forty-five days.
What happens if I ignore the order?
The order is executed against the business like a civil decree, and failing to comply is itself an offence. Section 71 applies Order XXI of the Code of Civil Procedure, 1908 to it as far as may be, the stage covered in the note on execution of a decree. Section 72(1) carries one month to three years, or a fine of Rs 25,000 to Rs 1 lakh, or both, which Section 72(2) and 72(3) let the Commission try summarily with the powers of a Judicial Magistrate of the first class.
The files that go badly for a business are rarely the ones with a weak defence. They are the ones where nobody wrote down the date the notice arrived, where the version was drafted from the complaint instead of the company's own records, and where every defence was pleaded because none had been tested against a document. Fix the service date, decide which defence the papers actually carry, and put a number on the exposure early, because a refund with interest and a modest compensation is often smaller than defending to a contested order and then finding fifty per cent of it for an appeal.
Three figures carry most of the risk beyond the clock.
Punitive damages uncapped
The proviso to Section 39(1)(d) allows punitive damages as the Commission deems fit, and the Act states no ceiling.
Deposit before appealing
Where the order directs you to pay, Section 41 bars the appeal until fifty per cent of that amount has been deposited.
Non-compliance is an offence
Section 72(1) makes failure to comply punishable with one month to three years, or a fine of Rs 25,000 to Rs 1 lakh, or both.
Frequently Asked Questions
How long do I have to reply to a consumer complaint filed against my business?
Thirty days from receipt of the notice accompanied by a copy of the complaint, which the Commission may extend by not more than fifteen days under Section 38(3)(a) for a service or Section 38(2)(a) for goods. Forty-five days is the outer limit and the extension is discretionary, so the safe plan is the thirty.
What happens if I miss the forty-five days?
The Commission has no power to take your version on record, which a Constitution Bench of the Supreme Court decided in the Hilli Multipurpose Cold Storage case on 4 March 2020 and the Court applied again in M/s Daddy's Builders Pvt. Ltd. v Manisha Bhargava on 11 February 2021. The matter then proceeds ex parte on the complainant's evidence under Section 38(3)(b)(ii).
Can I get the complaint dismissed because my customer is a business?
Only if the record shows it. The exclusion in Section 2(7) turns on the dominant purpose of the purchase and its close and direct nexus with the customer's own profit-making activity, and the Supreme Court has held that where a complaint asserts a purchase to earn a livelihood it cannot be dismissed at the threshold without evaluating the evidence.
Does the amount my customer claims decide which Commission hears the case?
No. Under Section 34(1) read with the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021, the measure is the value of the goods or services paid as consideration, and the District Commission hears complaints where that does not exceed Rs 50 lakh. The compensation claimed does not move the forum.
Is a bona fide dispute about my bill a deficiency in service?
Not by itself. The Supreme Court has held that deficiency cannot be alleged without attributing fault, imperfection, shortcoming or inadequacy, that no wilful fault is inferred where the dispute is bona fide, and that the burden of proving deficiency lies on the person alleging it.
Can my accounts manager sign and file the version for the company?
Yes, if the company has authorised that person, because Regulation 2(b) of the 2020 Regulations covers an agent authorised to file a written version and to plead, and Regulation 26(4) says the Commission shall not insist on advocates. Choose someone with personal knowledge of the transaction, since the hearing runs on affidavit evidence under Section 38(6).
If I settle at mediation, can the customer still appeal?
No. Once the Commission passes an order under Section 81(1) recording a settlement reached by mediation under Section 80, the third proviso to Section 41 bars an appeal from that order. A private settlement never brought on the record gives you none of that protection.
How much do I have to deposit to appeal a District Commission order?
Fifty per cent of the amount the order directs you to pay, under the second proviso to Section 41, deposited in the prescribed manner before the State Commission will entertain the appeal. The appeal itself has to be filed within forty-five days of the order.
This article is for general informational purposes only and does not constitute legal advice. Consult a qualified advocate for advice on your specific situation.
Related Guides
- Consumer Court Types and Jurisdiction in India: Where to File
- How to File a Consumer Complaint in India: A Step-by-Step Guide
- Service Agreement Drafting in India: Scope, Payment, Indemnity and Termination
- Execution of Decree in India: How to Actually Recover Money After Winning (2026)
- How to Send a Legal Notice in India: Format, Contents and Steps
