Man fails to get visa for working abroad, wins Rs 2.33 lakh consumer payout

A Kerala district consumer commission has directed an immigration consultancy company to pay Rs 2.33 lakh to a man who had hired them to assist in securing a visa and going abroad for work. The company failed to provide the service, which caused inconvenience and financial loss to the man, who was also not refunded for the same.

A bench comprising DB Binu (president), V Ramachandran (member)  and Sreevidhia TN (member) of the Ernakulam District Consumer Dispute Redressal Commission was hearing a complaint filed by a man who had hired the services of the company for obtaining a visa and immigrating abroad, however the company was unsuccessful in securing the visa and the money paid by the man for the services was also not refunded in contrast to the terms of the service agreement.

“The representations made to the complainant induced him to part with substantial amounts in the expectation of obtaining overseas employment and migration. Having failed to deliver the promised service and thereafter failing to refund the amount in accordance with the terms of the agreement, the opposite party adopted a course of conduct that is unfair and prejudicial to the interests of consumers,” the May 30 order read.

Seeking employment abroad

The man, seeking employment abroad, approached the company for assistance with obtaining a visa and immigrating to Canada. The company was operating an immigration consultancy business. After the representations made by the company, the man submitted the required documents and paid an amount of Rs 50,000 as a registration fee.

Subsequently, the company advised him to cancel the Canada application and apply for Sweden and asked him for a further sum of Rs 2.5 lakh, which was also paid. According to the man, even after receiving a total amount of Rs 3 lakh, the company failed to secure the promised visa. Despite repeated demands for a refund, only Rs 1.2 lakh was repaid, leaving a balance of Rs 1.8 lakh.

A cheque issued towards the balance amount which got dishonoured because of insufficiency of funds. The man claimed that the company neither provided the promised service nor refunded the entire amount received, hence the man had to file a consumer complaint.

‘Cannot escape liability’

The commission held that the man had suffered considerable inconvenience, mental agony, hardship, and financial loss due to the failure of the company to provide the promised visa processing services and to refund the amount admittedly payable under the agreement.

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It was noted by the commission that the service agreement, though not signed by the man, bears the seal and signature of the company, hence the execution of agreement by the company was sufficient to establish the contractual obligations undertaken by it.

The agreement clearly shows that the company had promised to process the man’s visa application and had further agreed that if they failed to complete the process within time, the amount received from the man would be refunded within 21 working days from the date of request, subject to the conditions of the agreement.

The commission observed that the company had acknowledged his liability to refund the amount by issuing a cheque of Rs 1,80,000 in favour of the man. The issuance of the cheque showed a clear admission of liability and recognition of the man’s entitlement to receive the amount.

It was the view of the commission that the man was made to believe that overseas employment opportunities would be secured through the efforts of the company and having convinced the man to part with a considerable sum of money and after having failed to perform the promised service, the company could not escape liability.

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The commission further held that the conduct of the company amounted to an unfair trade practice and that the conduct of the company was unfair and prejudicial to the interests of consumers.

Accordingly, the company was directed to pay Rs 1.8 lakh to the man towards refund of the balance amount due and to further pay Rs 50,000 as compensation for the mental agony, hardship, inconvenience, and financial loss suffered by him on account of the deficiency in service and unfair trade practice committed by the company.

Additionally, the commission also directed the company to pay Rs 3,000 towards the costs of the proceedings and that the amount must be paid within 45 days from the date of receipt of the copy of order.

‘Mortgaged the property’

The man contended that the company convinced him to pay money on the promise of securing overseas employment and migration opportunities in Canada and later Sweden. Relying on the assurances, the man paid a total amount of Rs 3 lakh.

It was argued by the man that the company failed to obtain any visa or overseas placement and repeatedly delayed the process with false assurances and when the man sought a refund, only Rs 1.2 lakh was repaid, leaving a balance of Rs 1.8 lakh.

The man further alleged that he had resigned from his employment based on the promises of the company, mortgaged his property, and suffered severe financial hardship and mental agony. It was also urged that the acts of the company amounted to deficiency in service and unfair trade practice under the Consumer Protection Act, 2019.

Significance

The ruling establishes the obligation of companies to ensure proper services and compliance of contracts and agreements signed with the consumers and that the concerns of the consumers must not be ignored, causing them unnecessary inconvenience.

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Consumers must also pursue their complaints in before appropriate forums so that the companies and service providers at fault are held accountable for their actions. For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Kerala helpline:1800-425-1550) or call the National Consumer Helpline at 1915 for assistance.