Malappuram District Commission Holds Ola Liable For Failure To Deliver E-Scooter After Receiving Full Payment

Brief Facts:

The Complainant transferred Rs. 1,45,777/- to Ola Electric Technologies (“Ola”) to book an electric scooter, with a promised delivery date of April 18th, 2023. Allegedly, Ola failed to fulfil its commitment, despite repeated attempts by the Complainant to secure delivery. Finally, frustrated by the delay, the Complainant cancelled the booking and notified Ola. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Malappuram, Kerala (“District Commission”) against Ola and its dealer.

In response, Ola argued that it refunded the vehicle amount to the Complainant and argued that there was no ongoing consumer dispute. It argued that the delivery timeline was only indicative, not binding, as per the Pre-Booking and Booking terms and conditions. It emphasized the unpredictable nature of delivery due to various internal and external factors beyond its control. It also accused the Complainant of attempting to unjustly profit from it.

Observations by the District Commission:

The District Commission noted that Ola refunded the amount for the vehicle only after the complaint. It held that this delay in refund after the filing of the complaint suggested a deficiency in service, which caused mental distress and inconvenience to the Complainant. It noted that despite repeated attempts by the Complainant to secure delivery, Ola and its dealer failed to fulfil their commitment to deliver the vehicle as promised after receiving payment. Their contention that delivery timelines were merely indicative and not binding under pre-booking terms was held to be unacceptable by the District Commission, especially since they did not provide a valid explanation for the delay.

The District Commission held that under normal circumstances, delivery and payment are concurrent conditions unless agreed otherwise. Therefore, it held that Ola and its dealer can't evade responsibility for retaining the full payment and delaying delivery indefinitely without adequate justification. Therefore, the District Commission held them liable for deficiency in services.

Consequently, the District Commission ordered Ola and its dealer to pay Rs. 50,000/- as compensation to the Complainant, considering the mental agony and inconvenience suffered along with Rs. 5,000/- for the litigation costs incurred by the Complainant. Regarding the additional expenses amounting to Rs. 16,000/- incurred by the Complainant for purchasing another electric scooter from Ola under loan direction, the District Commission found insufficient evidence to support the Complainant's claim that he was coerced into availing a loan for purchase.

Case Title: Shafeek Paravath vs Ola Electric Technologies Pvt Ltd and Anr.

Case Number: CC/254/2023

Date of Pronouncement: 23rd April 2024