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Uber India Held Accountable for Cab Driver's Misconduct: Consumer Awarded Compensation

Punjab Consumer Commission Upholds Compensation for Passenger's Harassment

The Additional Bench of the State Consumer Disputes Redressal Commission, Punjab, upheld a district consumer forum's order directing Uber India Systems Pvt. Ltd. to pay compensation to Mohit Bansal, a resident of Himachal Pradesh, for harassment caused by a cab driver. The ruling reinforces accountability for ride-hailing platforms under the Consumer Protection Act, 2019, and the E-Commerce Rules, 2020.

Case Background

Incident Details:

• On March 7, 2017, Mohit Bansal booked an Uber cab from Zirakpur, Punjab, to Kalka, Haryana, using the Uber App.
• The driver initially agreed to the trip but after traveling for 10 minutes, began misbehaving, forced Bansal to leave the cab, and demanded ₹105 for the incomplete journey.
• The complainant was left stranded at 6:20 a.m. on an empty road, unable to reach his elderly parents in Kalka on time, causing significant harassment and inconvenience.

Uber’s Response:

• Uber claimed it refunded ₹105 to the complainant, but Bansal denied receiving the amount.
• A legal notice sent to Uber went unanswered, prompting Bansal to file a consumer complaint seeking compensation for harassment, mental agony, and litigation costs.

District Forum's Ruling:

• The District Commission, Mohali, ordered Uber to pay ₹15,000 as consolidated compensation for mental agony and litigation costs.

Appeal by Uber India

Uber challenged the District Forum’s decision, arguing:

Lack of Responsibility:

• Claimed it is merely a technology service provider and not liable for actions of independent contractors (drivers).
• Asserted that its role is limited to connecting drivers and passengers through the Uber App.

Insufficient Opportunity:

• Alleged the District Forum decided the case ex-parte without giving Uber adequate opportunity to present evidence.

Unserviceable Destination:

• Claimed the destination, Kalka, was outside the serviceable area for the type of ride booked (Uber Go).

Punjab Consumer Commission’s Findings

Sufficient Opportunities:

• The Commission rejected Uber's claim of insufficient opportunity, noting Uber was given multiple chances to file evidence but failed to do so due to casual and negligent behavior.

Accountability of Uber:

• The Commission ruled that Uber, as an aggregator, has significant control over cab bookings, fare determination, and payments, making it more than just an intermediary.
• Under the Consumer Protection Act, 2019, and E-Commerce Rules, 2020, Uber qualifies as a marketplace e-commerce entity and is liable for deficiencies in services provided through its platform.

Misconduct by Driver:

• The driver’s refusal to complete the trip after accepting the booking and abandoning the complainant caused harassment and constituted deficiency in service.
• The claim that the destination was unserviceable was dismissed, as the driver should not have accepted the booking if it was outside the serviceable area.

Consumer Protection Standards:

• The ruling emphasized that platforms like Uber must ensure the reliability of their services, including holding driver-partners accountable for misconduct.

Final Decision

The Punjab Consumer Commission dismissed Uber's appeal and upheld the District Forum’s order, directing Uber to:

• Pay ₹15,000 as compensation to the complainant for harassment and litigation costs.

Uber was further directed to comply with the judgment within the stipulated period, failing which additional legal action could be initiated.

Implications of the Judgment

Accountability of Ride-Hailing Platforms:

• The ruling establishes that ride-hailing platforms are not mere intermediaries but active participants in the service provision, making them liable for deficiencies and misconduct.

E-Commerce Rules Compliance:

• The judgment reinforces the applicability of E-Commerce Rules, 2020, which mandate fair practices and accountability for platforms facilitating transactions.

Consumer Empowerment: