An autonomous research institute under the Ministry of Finance


Grievance Redress by Courts in Consumer Finance Disputes

Publication date

Mar, 2021


NIPFP Working Paper No. 331


Karan Gulati and Renuka Sane


This paper studies how courts in India have dealt with consumer finance disputes.  It presents the organisation of the courts that hear consumer finance cases. It reviews the 60 most cited cases to study the position that courts have taken in banking and insurance disputes. For the cases studied, it finds that courts have generally granted relief to consumers in banking disputes. In the case of insurance, courts have emphasised contractual compliance. This is so even if the contracts themselves were opaque or had unfair terms. The paper also finds that courts award low compensation and take a long time for adjudication. It suggests that courts should put in place systems to facilitate class action suits and bring in specialisation to deal with consumer finance disputes.
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