Case: Today Merchandise Pvt Ltd &amp; Another Vs. Anil Kumar Luthra

The appellant advertised a holiday voucher scheme through its website. In September 2012, an employee of the appellant communicated the scheme to the respondent who expressed his willingness to purchase holiday scheme vouchers. The terms on which the vouchers were available were indicated on the website of the appellant. The scheme envisaged that free gifts would be made available to the purchaser against further referrals. The gifts were contingent on the number of referrals made by the subscriber. The relevant part of the scheme is reproduced below:3. The respondent purchased three vouchers each of Rs 5998 and thus paid a total sum of Rs 17,994. On 18 September 2012, the appellant addressed an e-mail to the respondent specifically adverting to the referral scheme. The respondent was informed that, by making referrals of his friends and associates, he could avail of the gifts which were on offer, in the terms noted above4. The respondent moved the District Consumer Redressal Forum (District Forum) , Sikar claiming that he was entitled to three free gifts, namely, (i) a lap top; (ii) a mobile phone; and (iii) a 42 LED television. The District Forum allowed the claim. The order of the District Forum was confirmed by the State Consumer Disputes Redressal Forum (SCDRC) and in revision by the NCDRC. Monetary compensation has also been awarded in the amount of Rs 5,000 for mental torture, together with costs of Rs 2000.

Court's reasoning:
7. Under the scheme which was propagated by the appellant, the free gifts were contingent on the subscriber making referrals.Though the learned counsel appearing on behalf of the respondent submitted that the e-mail dated 18 September 2012 was not a part of the record of the District Forum,learned counsel appearing on behalf of the appellant has controverted this by adverting to the reply filed on behalf of the appellant before the District Forum in which there is a clear reference to the e-mail.Significantly, the e-mail is of 18 September 2012, a day after the respondent is alleged to have received a communication from the representative of the appellant. Both from the scheme as well as from the e-mail dated 18 September 2012, it is evident that a subscriber was not entitled, as a matter of right, to the free gifts merely on purchasing the holiday vouchers. The free gifts were contingent upon making referrals which, admittedly, were not made by the respondent. The directions of the District Forum, which were affirmed by the SCDRC and NCDRC will result in a manifestly absurd outcome. The order of the District Forum was manifestly contrary to the terms of the agreement between the parties. Both the SCDRC and the NCDRC have erred in confirming the order of the District Forum.