Not many consumers are aware of the fact that there is a time limit within which complaints have to be filed before the consumer courts. This lack of awareness has resulted in many a consumer being denied justice before these forums.

Section 24 A of the Consumer Protection Act says that the consumer courts shall not admit a complaint that is filed beyond two years from the date on which the cause of action arose. The courts can condone the delay beyond this period, only in rare cases where it is satisfied that there was sufficient reason for such delay.

Here is a sad case where 51 consumers, who had not got back the money deposited with a non-banking financial company (NBFC), lost their right to get justice because of the lack of awareness about the limitation period.

In this case, 54 consumers who had not got back their money deposited with an NBFC, Manipal Soubhagaya Nidhi Ltd, had filed complaints before the District Forum, seeking the amount promised on their deposits (cash certificates), besides compensation. The NBFC contested this on the ground that the complaints of 51 of the consumers were time-barred.

Their deposits had matured in the year 2002, but they had filed their complaints only in 2006, it argued.

The District Forum disagreed with this contention on the ground that if a person who receives the deposit fails to pay it back, it is a “recurring cause of action” for the depositor so long as the person who receives the deposit has not denied his liability to pay back the deposit. It therefore directed the company to pay the matured value due to the complainants as per the certificate in addition to costs.

However, the National Consumer Disputes Redressal Commission set aside this order, quoting a Supreme Court judgement in the case of State Bank of India vs B.S. Agriculture Industries, where it said that “If the complainant is barred by time and yet the consumer forum decides the complaint on merits, the forum would be committing an illegality.”

The Commission therefore agreed to a settlement offer from the NBFC as a goodwill gesture and asked it to pay 60 per cent of the original amount invested by the 51 complainants as a full and final settlement (Manipal Soubhagaya Nidhi Ltd vs Ms Prabhu, RP No 3425 of 2006).

So I would advise consumers to always keep in mind the limitation period and ensure that the complaints are filed well within two years.