Section 12 in The Ombudsman Scheme for Non-Banking Financial Companies, 2018
12. Award by the Ombudsman.
(1)If a complaint is not settled by agreement within a specified period as the Ombudsman may allow the parties, he may, after affording the parties a reasonable opportunity to present their case, either in writing or in a meeting, pass an Award either allowing or rejecting the complaint.(2)The Ombudsman shall take into account the evidence placed before him by the parties, the underlying principles on which the practices in vogue have arisen, directions, instructions and guidelines issued by the Reserve Bank from time to time and such other factors which in his opinion are relevant to the complaint.(3)The Award shall state briefly the reasons for passing the Award.(4)Where the Ombudsman decides to allow the complaint, the Award passed shall contain the direction/s, if any, to the NBFC for specific performance of its obligations and in addition to or otherwise, the amount, if any, to be paid by the NBFC to the complainant by way of compensation for any loss suffered by the complainant, arising directly out of the act or omission of the NBFC.(5)Notwithstanding anything contained in Sub-Clause (4), the Ombudsman shall not have the power to pass an Award directing payment of an amount which is more than the actual loss suffered by the complainant as a direct consequence of the act of omission or commission of the NBFC, or one million rupees whichever is lower.(6)The Ombudsman may, also award compensation not exceeding one hundred thousand rupees to the complainant, taking into account the loss of time, expenses incurred, harassment and mental anguish suffered by the complainant.(7)A copy of the Award shall be sent to the complainant and the NBFC free of cost.(8)An Award allowing the complaint shall lapse and be of no effect unless the complainant furnishes to the NBFC and the Ombudsman concerned within a period of 30 days from the date of receipt of copy of the Award, a letter of acceptance of the Award in full and final settlement of his claim.Provided that no such acceptance may be furnished by the complainant if he has filed an appeal under Cub Clause (1) of Clause 14.(9)The NBFC shall, unless it has preferred an appeal under Sub-Clause (1) of Clause 14, within one month from the date of receipt by it of the acceptance in writing of the Award by the complainant under Sub-Clause (8), comply with the Award and intimate compliance to the complainant and the Ombudsman.
