Quantum of Compensation by a Consumer Court

Under section 14 (1) (d) of the C.P.Act, 1986: ‘Compensation’ means anything given as recovery . In ordinary words, ‘Compensation’ means anything given that is equivalent to any loss, payment, remuneration, etc. It also refers to damages.

While quantifying damages, consumer courts are required to make attempt to compensate the victim and the calculation of damage depends on the facts and circumstances of each case. No universal law is applicable as it varies from case to case basis.

A Consumer court has to take into account all relevant factors and decide the compensation on the basis of accepted legal principles, on moderation. Besides that, interests can also be awarded on equitable grounds in some cases.

As established by the Hon’ble Supreme Court under Clause (d) of Sec. 14 (1) of the C.P.Act, 1986, Compensation can be awarded to a consumer only in respect of loss or injury suffered by the consumer due to negligence of the opposite party.

The Hon’ble National Commission decided that compensation should be given on the basis of material on record and there must be a rational relation to the nature and extent of injury, physical and mental inconvenience caused to the complainant by any action or omission of the Opposite Party.

If you are suffering with any issues with any related matter, please feel free to reach out to contact us by lodging a complaint with our award winning Legal Adviser at You must bring all the relevant details/documents of your case to prove – negligence, action or omission of the other party because of which you are suffering and that would have caused any losses/injury/inconvenience (physical and/or mental) to the extent of being compensated adequately.

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