Money
Consumer court begins work amid rising instances of negligence, fraud
The first case was lodged by Basanta Gautam against Om Hospital for alleged negligence, which killed his father.
Krishana Prasain
On September 18, 2019, Manital Shrestha, a resident of Gharbaritol in Banke, passed away. Following his death, his wife, Namrata, filed a lawsuit against the Nepalgunj Medical College Teaching Hospital at the district court, accusing the hospital of negligence and seeking compensation.
The bereaved family alleged that the hospital’s carelessness, seen including in allowing inexperienced medical students to conduct checkups, led to Shrestha’s death. The case was filed under the Consumer Protection Act 2018 against the medical institute and the medical officers involved.
Shrestha, who had a fever, was admitted to the hospital’s emergency ward, where, according to the family, he was examined by medical students without proper supervision.
After four and a half years of legal proceedings, the Banke District Court in February ruled that the hospital was guilty of negligence, holding it responsible for the patient’s death. The court ordered the hospital to pay Rs2.6 million in compensation to the victim’s family.
A similar case has emerged but, this time, Nepal’s newly inaugurated consumer court will handle it—the first of its kind in the country, officially launched on Saturday.
The first case before the consumer court was filed on Sunday by Basanta Gautam, a resident of Ward 9 in Budanilakantha Municipality. He accused Chabahil-based Om Hospital and Research Centre of medical negligence that allegedly led to his father’s death.
Harihar Prasad Gautam, 98, had visited the hospital after suffering a fall. On January 18, he slipped in the bathroom and was rushed to the hospital.
The doctors in the emergency ward suggested an X-ray and, based on the details, injected Harihar Prasad with Dynapar 75 mg, a pain relief injection, and prescribed Ecox 70mg for three days, Pantocid 40mg for 7 days, and Myospal for five days.
They discharged the patient and suggested a ‘follow up in orthopaedics’.
After reaching home and taking the prescribed medication for four days, the pain did not subside. So the family members took Harihar Prasad to HAMS Hospital for a check-up.
At HAMS, another doctor examined the X-ray taken at Om Hospital and diagnosed an Acetabulum Fracture. The doctor advised an immediate CT scan to determine the appropriate treatment method.
Upon reviewing the CT scan, the doctor informed the family that what was initially a minor fracture on Day 1 had worsened, leading to multiple such fractures in the femoral head and acetabulum, causing severe damage.
He further explained that the condition had significantly deteriorated compared to the time of the first X-ray.
Initially, natural healing with rest was possible, but due to severe damage, a long treatment—skeletal traction—was now required.
In general medical practice, discharging a patient without identifying a visible fracture on the X-ray is a serious case of negligence. Clinically, a patient who cannot put weight on their leg should be suspected of having an issue in the pelvic area.
The standard medical procedure in such cases is to admit the patient, restrict weight-bearing, and conduct a CT scan to assess the condition before making further decisions.
“The doctors failed in ‘duty of care’, and it was a serious negligence which caused the death of Harihar Prasad after a few weeks,” said advocate Bishnu Prasad Timilsina, the Forum for Protection of Consumer Rights-Nepal general secretary.
Basanta Gautam, an advocate himself, has filed a case against the hospital and two doctors, accusing them of serious errors in his father’s treatment and seeking Rs50 million in compensation.
Timilsina expressed confidence that with the establishment of a dedicated consumer court, such cases will now be resolved faster.
Nepal’s consumer court was established nearly four decades after India introduced its own National Consumer Disputes Redressal Commission in 1988 under the Consumer Protection Act of 1986.
Observers believe consumer courts will simplify complaint procedures and mitigate legal hurdles. Their presence is expected to significantly curb food adulteration, artificial shortages, and price manipulation.
Despite paying substantial amounts for essential services like water, energy, telecom, and financial services, consumers continue to face accessibility challenges.
Another case has been filed in the consumer court against Swastik Silver Palace, located in Bishal Bazaar, New Road, with a compensation claim of Rs 35,700.
Savitri Thapa, a resident of Ward 13 in Godavari Municipality, purchased a silver idol from the shop for Rs4,600. Within seven days, she returned the item, expecting a full refund. However, the seller deducted Rs2,375 from the price and returned only Rs2,225.
Thapa originally bought the idol on March 9 and tried to return it on March 14. The shop owner, however, refused a full refund.
“A case has been registered against Sunita Shrestha, the owner of Swastik Silver Palace, for fraud,” said Timilsina.
As per Timilsina, Thapa has filed a lawsuit seeking Rs4,600 for financial loss, Rs1,500 for travel expenses incurred while visiting the shop, Rs25,000 for mental distress, and Rs4,600 for physical damage, bringing the total compensation claim to Rs35,700.
A third case has been filed by Ram Sagar Yadav, a resident of Sunsari district currently living in ward 18 of Lalitpur Metropolitan City, against CG Holding. Yadav alleged that his vehicle, which was still covered by warranty, was damaged in the September floods.
He took the car for repair at Suzuki Service Centre in Dallu, but the workshop supposedly opened the vehicle’s new engine without authorisation during the warranty period, affecting its performance. He has sought Rs7.77 million in compensation for the damage caused to his car’s engine.
“We are preparing to issue a seven-day notice for the defendants to appear before the court,” said Shobhakar Kharel, the court’s registrar. “So far, three cases have been lodged as of Monday.”
“Once the defendants appear in court, the relevant parties in all three cases will be asked to seek an out-of-court settlement. If there is no resolution, the case will proceed to a hearing,” Kharel said.
Chief Justice Prakash Man Singh Raut inaugurated the consumer court on Saturday at the Department of Cottage and Small Scale Industries, Tripureshwar. Initially, the court will handle cases only from Kathmandu, Lalitpur, and Bhaktapur due to budget constraints.
However, the Supreme Court has directed the establishment of consumer courts beyond the Kathmandu Valley.
Officials stated that consumers can lodge complaints via email or in writing. An inspection officer will investigate the complaint, and if consumer laws are found to have been violated, a case will be filed at the recommendation of a government lawyer.
Kharel, the court registrar, emphasised that petitioners seeking compensation must appear in court physically to file a case. He added that the official website of the consumer court is being developed and will soon be in operation.
Judge Ram Prasad Sharma of the Kathmandu District Court will conduct hearings as required, with Under-secretary Ananda Raj Pokharel from the civil service also serving on the bench. Consumers and organisations advocating consumer rights can file cases in court if they feel deceived.
Nepal moved to establish the consumer court seven years after the Consumer Protection Act 2018 mandated its formation. Although the court’s working procedures are still being finalised, it will initially operate under the Consumer Protection Act.
Consumer courts are specialised judicial bodies designed to handle consumer-related disputes efficiently. They aim to expedite legal proceedings and resolve consumer complaints swiftly.
The demand for consumer courts has grown as consumers seek legal recourse against fraudulent traders. Many avoid lengthy and complicated legal procedures, particularly at the Supreme Court, which allows unethical traders to operate with impunity.
Experts assert that the court’s success will depend on its transparency, independence, and efficiency in case handling.