The Uttarakhand State Consumer Disputes Redressal Commission has affirmed that a service center operating under multiple brand names from the same premises cannot evade liability by claiming non-affiliation with a particular manufacturer. This ruling reinforces the principle that consumers are entitled to redress when repair services fail to resolve defects despite repeated attempts and payments.
Background & Facts
The Dispute
The complainant, Sh. Yogesh Parihar, purchased a Samsung Galaxy S7 Edge mobile handset on 08.05.2016 from Kumaon Communications, Haldwani, for Rs. 58,695. On 09.09.2017, the device developed a touch screen defect, prompting the complainant to approach the Samsung Service Center located near Ulkadevi Temple, Chaudhanpatta, Almora, operated by M/s S.K. Enterprises. The service center diagnosed display damage and replaced it upon payment of Rs. 13,698. Subsequent issues - overheating, slow charging, connectivity problems, and low sound output - persisted. On advice of the same service center, the complainant paid Rs. 2,111 to replace the battery. When defects continued, the complainant was directed to HCL Services Limited, the authorized service provider for Samsung in Dehradun. HCL informed him the motherboard was defective and required replacement at a cost of Rs. 15,000. The complainant contended these defects did not exist prior to the initial repair and that the service center had provided misleading information.
Key Facts
- Mobile purchased on 08.05.2016 for Rs. 58,695
- First repair conducted on 09.09.2017 at M/s S.K. Enterprises, Almora; cost Rs. 13,698
- Battery replaced on 28.10.2017 at same center; cost Rs. 2,111
- Defects persisted despite repairs
- On 30.10.2017, device handed over to HCL Services Limited, Dehradun
- HCL claimed motherboard defect requiring Rs. 15,000 replacement
- No expert evidence was submitted by either party
- Complainant filed complaint before District Commission on 15.07.2018
Procedural History
- 15.07.2018: Consumer complaint filed before District Consumer Disputes Redressal Forum, Almora (Complaint No. 22 of 2018)
- 06.02.2018: Notice issued by District Commission to M/s S.K. Enterprises
- 09.02.2018: Notice received by employee of 'Samsung Service Center, Khulbe Communication, Almora' with official stamp
- 06.03.2018: Ex-parte proceedings initiated against M/s S.K. Enterprises for non-appearance
- 23.03.2018: Ex-parte proceedings initiated against HCL Services Limited
- 24.08.2018: District Commission passed order allowing complaint: Rs. 58,695 refund, Rs. 10,000 for mental harassment, Rs. 5,000 litigation cost, Rs. 5,000 for travel expenses
- 10.10.2018: Appeal filed by M/s S.K. Enterprises before State Commission (SC/5/A/131/2018)
- 18.10.2023: Order passed for ex-parte hearing due to non-appearance by respondents
- 13.03.2026: Final hearing held
- 31.03.2026: Judgment pronounced
The Parties' Positions
For the Appellant (M/s S.K. Enterprises)
- Claimed no affiliation with Samsung; asserted repairs were done by Khulbe Communication and Computer, another entity
- Argued non-joinder of the actual seller (Kumaon Communications) and service provider (Khulbe)
- Contended notice was not properly served
- Alleged lack of documentary proof linking them to the repair
- Asserted findings were based on conjecture and violated natural justice
For the Respondent (Sh. Yogesh Parihar)
- Maintained he approached the Samsung-branded service center at the address provided
- Presented service acknowledgment slip bearing the service center’s stamp
- Highlighted repeated payments and unresolved defects
- Did not appear in person but submitted evidence through complaint
Relief Sought
The complainant sought: (1) Refund of Rs. 58,695 paid for the handset; (2) Rs. 10,000 for mental harassment; (3) Rs. 5,000 as litigation cost; (4) Rs. 5,000 for travel expenses to Dehradun. The District Commission granted all relief. The appellant sought dismissal of the complaint and setting aside of the order.
The Legal Issue
The central question was whether an entity operating a service center under a different trade name but from the same premises, with identical signatures and address as the branded service center, can be held liable for deficiency in service under the Consumer Protection Act, 1986, despite denying affiliation with the manufacturer.
Arguments Presented
For the Appellant
The appellant relied on the distinction between M/s S.K. Enterprises and Khulbe Communication and Computer, arguing that the latter was the actual Samsung service center. It submitted that the notice was received by Khulbe’s employee, not its own, and that its authorization for Micromax service was unrelated. It contended that the District Commission failed to appreciate documentary evidence and violated principles of natural justice by proceeding ex-parte without proper service.
For the Respondent
The respondent, though not represented, had submitted documentary evidence including the service acknowledgment slip bearing the service center’s official stamp and the address matching the appellant’s premises. The State Commission inferred that the complainant acted in good faith and relied on the visible branding and location.
The Court's Analysis
The Commission conducted a detailed review of documentary evidence from the District Commission’s record. Paper No. 8Ka/1 showed that the notice issued to M/s S.K. Enterprises was received by an employee of 'Samsung Service Center, Khulbe Communication, Almora', bearing the official stamp of the service center. Paper No. 5Ka/2, the service request acknowledgment, bore the signature of an employee who received the handset. Crucially, the signature on this document matched that of Sh. Ravindra Arya, the authorized signatory of M/s S.K. Enterprises, as evidenced by Paper No. 23 in the appeal file - a document authorizing him to represent the firm.
Further, the address of M/s S.K. Enterprises listed in its Micromax authorization application (Paper No. 20) was identical to the address of Khulbe Communication and Computer. The Commission concluded that the appellant was operating multiple brands from the same physical location under different trade names to obscure liability.
"The documentary evidence including common address, similar signatures of the authorised signatory of both the entity clearly establishes that the appellant was running the service center of Samsung."
The Commission held that the appellant’s attempt to disclaim responsibility was a deliberate evasion of liability. The complainant had paid for repair services and was assured the defects were resolved. The persistence of defects after multiple paid repairs constituted clear deficiency in service under Section 2(1)(g) of the Consumer Protection Act, 1986. The misleading representation that the handset was repaired, followed by the demand for an additional Rs. 15,000 for a motherboard replacement, further aggravated the deficiency.
The Commission rejected the plea of non-service, noting the notice was received at the same premises by an employee of the service center, which was under the appellant’s control. The ex-parte proceedings were therefore valid.
The Verdict
The appeal was dismissed. The State Commission affirmed the District Commission’s order dated 24.08.2018. The appellant, M/s S.K. Enterprises, and HCL Services Limited are jointly and severally liable to pay the complainant: (1) Rs. 58,695 as refund for the defective mobile handset; (2) Rs. 10,000 for mental harassment; (3) Rs. 5,000 as litigation cost; and (4) Rs. 5,000 as travel expenses. No costs were awarded on the appeal.
What This Means For Similar Cases
Service Centers Cannot Hide Behind Trade Names
- Practitioners must now argue that any entity operating a branded service center under a different legal name from a shared location is equally liable for service deficiencies
- Consumers need not prove formal authorization - visible branding, shared premises, and common personnel suffice to establish liability
- Defense of non-affiliation will fail if documentary evidence links the entity to the service delivery
Ex-parte Orders Are Valid When Service Is Proven
- Failure to appear does not automatically invalidate proceedings if notice was received at the registered or operational address
- Courts will infer service from receipt by an employee at the premises, even if under a different trade name
- Practitioners must advise clients to respond to notices even if they dispute affiliation
Deficiency Includes Misleading Representations
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A service center commits deficiency not only by failing to repair, but also by falsely representing that a repair was successful
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Repeated paid repairs without resolution constitute a pattern of deficiency
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Compensation for mental harassment and travel costs is justified when the consumer is misled and inconvenienced
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Always document all service interactions, including receipts, communication, and dates
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If a service center refuses to repair despite warranty, file a complaint immediately
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Do not assume liability lies only with the manufacturer - service providers are directly accountable
