Nepal's Consumer Court Marks One Year, Registers 41 Cases Dominated by Medical Negligence Claims

Kathmandu. The Consumer Court, established with the specific objective of protecting the rights, interests, and welfare of consumers in Nepal, has completed one year of operation. During this period, a total of 41 cases from various sectors have been registered at the court. According to the court's information officer, Homnath Kandel, an analysis of the registered cases reveals that problems related to 'medical negligence' are highly prevalent in the Nepali market.

The court, which began operating for the first time in Nepal, was inaugurated on Chaitra 2, 2081 BS, in the building complex of the Department of Industry in Tripureshwor. It became operational the day after its inauguration. Three cases were registered on the very first day the Consumer Court began functioning, and the very first case was related to medical negligence.

Although provisioned in the Consumer Protection Act, 2075, the Consumer Court was formed only after a six-year delay and following an order from the Supreme Court. The three-member court, formed based on the policy and program for the fiscal year 2081/82 and the cabinet decision on Magh 21, 2081, was chaired by Judge Ramprasad Sharma, with Gehendraraj Regmi and Anandaraj Pokhrel as members. Following the transfer of Ramprasad Sharma last Bhadra, the court remained without a chairman for eight months. Currently, Dr. Diwakar Bhatta serves as the Chairman, appointed by the cabinet decision on Falgun 12, 2082 BS.

• What types of cases were filed? How many were settled?

A total of 17 cases were registered by the end of Ashar in the first fiscal year (2080/81) after the court's establishment. From Shrawan 1, 2082/83 to the end of Falgun, 24 cases have been registered in the current fiscal year, bringing the total number of cases registered at the Consumer Court to 41. According to Information Officer Kandel, 21 of the received complaints have been successfully settled, while 20 cases are still pending decision.

Among those settled in the fiscal year 2081/82, three applications were withdrawn through mediation. Out of eight judgments passed, one claim was dismissed due to insufficient grounds, and seven involved partial fulfillment of claims. Furthermore, out of the 24 cases registered since Shrawan 2083, six have been settled.

Some of the settled cases concluded through mediation, while others were withdrawn by the complainant who deemed their claim satisfied. In some cases, the court ruled in favor of partial claims, and in others, full claims. The court aims to deliver a verdict within 90 days of the respondent's appearance by adopting the 'Summary Procedure Act'. However, Kandel stated that complex cases sometimes require expert opinions, leading to delays beyond the stipulated time limit due to the time taken to secure expert availability.

Medical negligence constitutes the largest share of complaints registered at the court. It appears that consumers are frequently defrauded or experience serious negligence in the sensitive sector of health services. Additionally, a significant number of complaints have been filed against fraud and substandard services in the automobile sector.

Issues arising from the purchase and sale of laptops and electronics, delays or negligence in services provided by airlines, fees charged by schools and service quality, and complaints related to the construction sector have also reached the court. So far, there are 15 cases related to medical negligence, 10 related to vehicle purchases, 2 related to construction, 5 related to laptop/television repair and purchase, 1 related to airways, 1 related to DishHome, and the rest belong to other categories.

• Consumers do not approach the court for minor fraud cases

According to Kandel, consumers are gradually becoming more aware of their rights, resulting in an increasing number of complaints being filed across various domains.

However, Information Officer Kandel noted that the biggest challenge facing the Consumer Court is bringing consumers to the legal process regarding 'minor fraud'. When consumers are defrauded of amounts like 1,000, 1,500, or 2,000 rupees, they often choose to remain silent, citing the 'cumbersome legal process'. Kandel stated, 'Even if one is cheated of 100 rupees, it is still fraud, but the tendency to avoid the hassle of hiring a lawyer and frequenting the court for small amounts empowers the fraudsters.'

Nevertheless, even when the court does not formally register a case, it often resolves issues informally. By calling and advising the respondent at the request of the complaining consumer, the court facilitates settlements, providing relief to many consumers. However, in cases of fraud occurring in online shopping, technical complexities and jurisdiction issues sometimes necessitate sending cases to the Cyber Bureau.

Furthermore, a year after the court began operating, the Department of Commerce, Supply and Consumer Protection has not registered a single case. Consumer rights activists have criticized the Department of Commerce for not bringing cases to the Consumer Court. In this regard, Kandel mentioned that this matter falls under the department's jurisdiction.

'It is natural for rights activists to question why not a single case comes to the court from such a large market, but the department might also be imposing fines and taking action at its own level,' he said.

Kandel emphasized that the relevance of the Consumer Court is being proven and stressed the need for the government to widely promote 'consumer education' and advertising to make it more effective. He believes that the disorder in the market will only end when consumers become aware of their rights and start speaking up even against the smallest instances of fraud.

• What is the status of infrastructure and manpower at the court?

Starting with only 2-3 employees and minimal physical infrastructure in its initial days, the court has now expanded its structure. Currently, the court has a sanctioned strength of 21 personnel, with an active team including 6 Nayab Subbas, 1 Officer, and 1 Under Secretary. The court, which initially operated without its own courtroom, has now established an organized office and courtroom in the Ministry's block.

Kandel mentioned that although there was some slowdown in case disposal due to a temporary lack of leadership (Chairman) and political unrest, work has gained momentum with the arrival of the new leadership. He also informed that while the Department of Commerce sustained damage during the recent Gen Z protests, the Consumer Court's office remained secure.