Enugu State High Court has set aside the policy of no refund of money after payment by service providers.
Justice C. O. Ajah, while delivering judgment in a suit filed by Patrick C Chukwuma, a legal practitioner against Peace Mass Transit Limited challenging the latter’s policy of “no refund of money after payment”, held that the failure of the defendant to refund the plaintiff money for services that were not rendered was unlawful.
Mr Chukwuma had on 28 July 2021, filed the suit with suit number: E/514/2021 Patrick Chukwunwike Chukwuma v Peace Mass Transit Limited challenging the refusal of defendant to refund him an amount paid for the purpose of transporting him from Obolo-Afọr to Enugu.
Following a two-hour delay occasioned by the absence of passengers, the Plaintiff returned to the ticketing office and demanded for a refund of the #500 he paid as the transportation fare.
Staff of the Defendant, however, refused to refund the money, insisting that their company’s policy was that money paid for transport fare cannot be returned to the passenger.
The plaintiff in his motion said that when he tried to explain to them that their policy was unlawful, as the law mandates them to refund fares for services that have not been provided, they became rude.
He said he left the park and sought alternative means of traveling back to Enugu.
Mr Chukwuma said further that he wrote a letter to Peace Mass Group of companies demanding an apology and refund but was neglected.
In the suit, the plaintiff prayed the court to determine whether the Defendant’s policy of “no refund of money after payment” is in violation of Section 120 of the Federal Competition and Consumer Protection Act 2018, especially when the contractual obligation to convey the Plaintiff to his preferred location was terminated”.
The Plaintiff through his lawyer, Tochukwu Odo argued that the Federal Competition and Consumer Protection Act 2018 is the primary law that supervises consumer transaction in Nigeria and that by virtue of section 120 of the law, the consumer has a right to cancel any advance booking, reservation or order for any goods or services subject only to the deduction of a reasonable charge by the service provider.
However, the Defendant through its counsel, Titus Odo raised technical arguments on the jurisdiction of the court and mode of commencement of the suit.
Justice C. O. Ajah dismissed the objections of the Defendant and upheld the arguments of the Plaintiff.
The Judge after a thorough analysis of the provisions of the Federal Competition and Consumer Protection Act 2018 and the conduct of the parties in the case held that the policy of no refund of money after payment is illegal, null and void in light of the provisions of Sections 120, 104, 129(1)(a) and (b) (iii) of the Federal Competition and Consumer Protection Act 2018.
The court declared that the refusal of the Defendant to refund the Plaintiff the money paid for the transportation fee from Obollor-Afor to Enugu on 10/2/2021 is unlawful.
The court further ordered the Defendant to pay the sum of #500,000 as damages to the Plaintiff.
