Uber Faces Penalty as Court Takes Action Following Driver's Refusal to Complete Trip

The Punjab State Consumer Disputes Redressal Commission recently upheld a penalty of ₹15,000 on Uber India for causing mental agony and harassment to a passenger.

This followed an incident where an Uber driver prematurely ended a trip, compelling the passenger to disembark without completing the journey.

The Commission, comprising Presiding Member HPS Mahal and Member Kiran Sibal, affirmed that in an employer-employee relationship, the employer bears responsibility for third-party actions.

They emphasized Uber's control over its app, transactions, and services, stating that such control implies liability under law.

The case arose from a consumer's complaint regarding an Uber-X cab ride booked from Zirakpur to Kalka on March 7, 2017. The complainant alleged that the driver behaved improperly and terminated the trip prematurely, demanding an incomplete fare of ₹105.

Despite Uber's assurance of a refund, none was received, prompting the complaint to the Mohali District Commission.

After evaluating evidence and arguments, the District Commission ordered Uber to pay ₹15,000 in compensation for mental anguish, harassment, and litigation costs.

Uber appealed this decision to the State Commission, claiming procedural unfairness during the initial hearing due to COVID-19 constraints.

Uber argued that it functions solely as a technological platform connecting drivers and passengers and should not be held liable for the driver's actions, given the independent contractor status of drivers.

However, the State Commission found Uber had ample opportunity to present its case but failed to adequately do so.

Citing Uber's active role in booking and payment processes, the State Commission affirmed that Uber's intermediary status does not absolve it from liability under the Consumer Protection Act for service deficiencies.

Consequently, the State Commission upheld the District Commission's ruling, dismissing Uber's appeal.