Internet of Things (IoT) based Wireless Sensor Networks (WSN) comprises several miniaturized sensor nodes limited in terms of transmission range, available battery power and data rate. These nodes work collaboratively to monitor physical/environmental conditions and provide appropriate control action. Congestion has become one of the key issues in WSN because of the increase in multimedia traffic and IoT proliferation in WSN. The higher traffic load can easily lead to link-level or node-level congestion in the network. A joint layer 4/layer 3 driven congestion control distributed algorithm is proposed to detect congestion and thereby avoid congestion through alternate routing. In this work, congestion detection and avoidance method are presented which uses Random Early Discard (RED) scheme, instead of the Droptail Queue. This scheme computes a threshold to avoid further congestion and uses Location Aided Energy Efficient Routing protocol (LAEER) to find the alternate path for routing data packets. As a result, this approach achieves load balancing as it spreads traffic throughout the network. Also, simulation results infer that LAEER shows better results in terms of Quality of Service (QoS) metrics such as PDR in comparison with AODV as it has avoided further packet drops proactively through alternate forwarding neighbor selection.