Consumer panel fines stem cell firm for discarding newborn's cord blood over payment dispute

The Jalandhar District Consumer Disputes Redressal Commission has held Cordlife Sciences India Pvt Ltd guilty of deficiency in service and unfair trade practice for discarding a newborn's umbilical cord blood and stem cell sample over an alleged delay in payment, directing the company to refund the booking amount and pay Rs 2.1 lakh as compensation.

In its July 14 order, the commission observed that preserving umbilical cord blood is a "one-time opportunity" that cannot be recreated after childbirth and held that the couple had suffered a permanent loss after the biological sample was discarded.

"The opposite party has committed unfair trade practice and deficiency in service in rejecting the sample merely on the ground of non-payment or late payment, whereas it has been proved that the complainant has never refused to make the payment," the commission said.

The bench, comprising president Harveen Bhardwaj and members Jyotsna and Jaswant Singh Dhillon, said the couple had lost an opportunity to preserve stem cells that could potentially benefit not only their child but also family members in the future.

According to the complaint, the couple approached Cordlife Sciences India Pvt Ltd during pregnancy for long-term preservation of their child's umbilical cord blood and stem cells after being informed of their potential future medical benefits.

They paid an initial booking amount of Rs 6,490 and signed the required agreement. After the child's birth on September 15, 2023, the company's representatives collected the cord blood and stem cell sample from the hospital. The couple later received an email confirming that the specimen had safely reached the storage facility.

However, on September 25, the company allegedly contacted them for the first time to collect a cheque for the remaining payment. The couple said they immediately provided an address for collection, but before the representative arrived, they received a message stating that the sample had been rejected due to delayed payment and could no longer be preserved.

The couple further alleged that subsequent communications from the company contained inconsistencies regarding the dates on which the sample had reached the storage facility, indicating negligence and lack of professionalism. They sought Rs 48 lakh in compensation before the consumer commission.

The company denied all allegations, contending that the couple had voluntarily accepted the contractual terms and later breached the agreement by failing to complete payment and submit the required documents within the stipulated period.

It argued that the agreement entitled it not to process or preserve the specimen in case of non-compliance, citing the perishable nature of the biological material.

Rejecting the company's defence, the commission noted that the email acknowledging receipt of the sample made no mention of any outstanding payment. It also observed that although the total package was valued at Rs 62,990, the agreement did not specify any due date for payment of the balance amount.

The commission further found that the company had neither issued any written reminder nor served a demand notice, email or recorded telephone call warning the couple that failure to pay within a specified period would lead to permanent rejection of the specimen.

Holding the company's conduct to be an unfair trade practice, the commission directed it to refund Rs 6,490, pay Rs 2 lakh as compensation for deficiency in service, mental agony and harassment, and Rs 10,000 towards litigation expenses within 45 days.