Can Consumer Disputes Be Settled During NCDRC Proceeding?

Answer:

Yes, most consumer disputes can be settled before or during NCDRC hearing if the parties agree to sensible terms. Settlement may be agreed upon for refund amount, sending a replacement goods, repair services, granting possession, paying compensation, waiving unreasonable charges, processing pending claims, correcting records, or agreeing to mutually convenient payment plan. Settlement saves time, money, uncertainty of litigation, and emotional stress. However, the terms of settlement must be clear and legally safe.

Consumer should not accept handshake settlement and should ask for signed settlement on lawful terms. Ideally, settlement should mention exact amount, timeline for payment, mode of payment, terms to comply with once paid, interest in case of delay, list of documents to be issued by opposite party, and what happens if one party defaults on settlement. Builder settlement terms can include refund with interest, handing over possession by certain date, penalty for delay in handing possession, or handing over executed title documents. Banking settlement can mention correction of CIBIL records, issuing NOC, reversal of wrongful charges, or sending account closed confirmation.

Accepting settlement does not mean you are weak or that you accepted you were wrong. Often settlement is the best practical solution. But before agreeing to settlement, consumer should analyze if the settlement amount is fair when compared to possible legal recovery. Lawyer can help you weigh litigation risk, evidence in hand, likely delays, and practical recovery.

LEGAL365 assists clients understand risks and benefits of settling consumer disputes. Advocate BK Singh and I review facts and documents with clients and give informed opinion about how settlement or litigation will affect them.