I've decided not to pursue this for two reasons:
1. Its been one month since I put up this post, I left messages on various websites where people have posted messages complaining about Air Deccan. I send personal messages to people who has posted messages complaining about Air Deccan. After all this, only TWO people have contacted me. Crazy. If I needed more proof that people in India only like to talk and when it comes to actually doing something, can't be bothered, well I have it now. And in this case, they were not even required to *do* anything, just send me their story. Even that didn't happen. Shame on you guys, all you can do is talk and bitch on websites, but do nothing to fight for your rights. May I say politely that you deserve whatever shit happens to you.
2. After quite a few mails to Air Deccan threatening them with consumer court action, they refunded my money completely a couple of weeks ago, within 1 month of the canceled flight. This is indeed quite fast, compared to various complaints I've read. So of course, I do not have a case anymore to go to the court with.