The Lahore High Court (LHC) has ruled that online shopping disputes fall under consumer courts. This includes non-delivery of goods and order cancellations after payment. The ruling clarifies jurisdiction for the growing volume of e-commerce complaints. It establishes that buyers cannot bypass the consumer forum by reframing their claims.
The case originated from a seemingly small online transaction. A buyer purchased two clothing articles worth Rs6,480 through an online platform. He paid the full amount using his credit card upfront. However, the articles were never delivered within the promised period.
After 17 days, the sellers cancelled the order entirely. They cited the Covid-19 pandemic as the reason for cancellation. The buyer then filed a suit seeking Rs2,116,480 in refund and damages. He approached a civil court rather than a consumer court. The sellers initially denied the online transaction took place. However, they later admitted a booking had been made. They said the stock was unavailable and claimed the amount had been refunded already. The civil court returned the case under Order VII Rule 10. It directed the buyer to approach the competent forum instead. Specifically, it pointed to the Punjab Consumer Protection Act 2005. The appellate court upheld that decision on appeal afterward.
The buyer then moved to the LHC challenging both decisions. However, the court agreed with the lower courts entirely. It held that jurisdiction must be determined by the cause of action. The terminology or amount of relief sought does not change that.
Crucially, LHC observed that buyers cannot disguise consumer claims. Describing compensation as “general damages” does not shift jurisdiction to civil courts. The underlying dispute remains a consumer transaction regardless.
