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By:DOLLY RANI091202030

Enacted to provide for the better protection of the interest of consumer

Act applies to whole of India except Jammu and Kashmir

Chapter I, II and IV came into force on 15.4.1987. Chapter III came into force on 1.7.1987

The act was amended in 1993 and 2002 and the amendments came into force w.e.f. 15th March 2003.

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The Consumer Protection Bill, 1986 seeks to provide

for better protection of the interests of consumers and

for the purpose, to make provision for the

establishment of Consumer councils and other

authorities for the settlement of consumer disputes

and for matter connected therewith.

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“Complaint” means any allegation in writing made by a compliant that :

I. An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;

II. The goods bought by him or agreed to be bought by him suffer from one or more defects ;

III. The services hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect;

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IV. A trader or service provider as the case may be has charged for the goods or for the services mentioned in the complaint, a price in excess of the price

a) fixed by or under any law for the time being in force;

b) displayed on the goods or any package containing such goods;

c) displayed on the price list exhibited by him by or under any law for the time being in force;

d) agreed between the parties .

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V. Goods which will be hazardous to life and safety when used are being offered for sale to the public –

a) In contravention of any standards relating to safety of such goods as required to be compiled with, by or under any law for the time being in force;

b) If the trader could have known with due diligence that the goods so offered are unsafe to the public;

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VI. Service which are hazardous or likely to be

hazardous to the life and safety of the public

when used, are being offered by the service

provider which such person could have known

with due diligence to be injurious to life and

safety.

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Any person who buys goods or avails services for

consideration.

Consideration may be fully paid, partially paid or

fully promised to be paid or partially promised to be

paid.

Any body who uses the goods or services with the

consent of the consumer.

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Legal heir of consumer in case death of consumer

Does not include any person who buys goods for

resale or commercial purpose and services for

commercial purpose.

However any person who buys goods for

commercial use but exclusively for his livelihood

by means of self employment is a consumer.

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Fault Imperfection Shortcoming

In theQuality Quantity Potency Purity Or Standards

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Which is required to be maintained by or under any law for the time being in force

Fault Imperfection Shortcoming Or Inadequacy

In the Quality Standard and Manner of performance

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Which is required to be maintained by or under any law for the time being in force

“Service” means service of any description, which is made available to potential users and includes, but not limited to the provisions of the facilities in connection with 1) banking 2) financing 3) insurance 4) transport 5) processing 6) supply of electrical or other energy 7) boarding or lodging or both 8) house construction9) entertainment 10) amusement or 11) the purveying or new or other information

But does not include the rendering of any service free of charge or under a contract of personal service

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1) A Consumer Dispute Redressal Forum at the

District level.

2) A Consumer Dispute Redressal Commission at

the State level.

3) A National Consumer Dispute Redressal

Commission at national level.

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Central Consumer Protection Council.

The Central Council shall consist of the following

members,

• The Minister in charge of the consumer affairs in the

Central Government, who shall be its Chairman, and

• Such number of other official or non-official members

representing such interests as may be prescribed. 

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Objects of the Central Council.—

The objects of the Central Council shall be to promote

and protect the rights of the consumers such as,— 

the right to be protected against the marketing of goods

and services which are hazardous to life and property;

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The right to be assured, wherever possible, access to a

variety of goods and services at competitive prices;

the right to be heard and to be assured that

consumer's interests will receive due consideration at

appropriate forums;

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The right to be informed about the quality, quantity,

potency, purity, standard and price of goods or services

the right to seek redressal against unfair trade practices

or restrictive trade practices or unscrupulous

exploitation of consumers; and the right to consumer

education. 

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The Central Council shall meet as and when necessary,

but at least one meeting of the Council shall be held

every year. 

The Central Council shall meet at such time and place as

the Chairman may think fit and shall observe such

procedure in regard to the transaction of its business as

may be prescribed. 

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The State Council shall consist of the following

members, namely:—

the Minister incharge of consumer affairs in the State

Government who shall be its Chairman;

such number of other official or non-official members

representing such interests as may be prescribed by the

State Government.

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Such number of other official or non-official

members, not exceeding ten, as may be nominated by

the Central Government.

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The State Council shall meet as and when necessary

but not less than two meetings shall be held every year.

The State Council shall meet at such time and place as

the Chairman may think fit and shall observe such

procedure in regard to the transaction of its business as

may be prescribed by the State Government.

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Objects of the State Council. —

The objects of every State Council shall be to

promote and protect within the State the rights of

the consumers.

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It consist of the following members, namely—

the Collector of the district (by whatever name called),

who shall be its Chairman;

• Such number of other official and non-official

members representing such interests as may be

prescribed by the State Government.

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The District Council shall meet as and when necessary but

not less than two meetings shall be held every year.

The District Council shall meet at such time and place

within the district as the Chairman may think fit and shall

observe such procedure in regard to the transaction of its

business as may be prescribed by the State Government.

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The objects of every District Council shall be to

promote and protect within the district the rights of

the consumers

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Redressal Forums.

• District Forums - a Consumer Disputes Redressal

Forum to be known as the "District Forum"

established by the State Government in each district

of the State by notification:

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Each District Forum shall consist of,— 

• A person who is, or  has been, or is qualified to be a

District Judge, who shall be its President;

• Two other members, one of whom shall be a woman,

who shall have the following qualifications, namely —

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– be not less than thirty-five years of age,– possess a bachelor's degree from a recognized

university,– be persons of ability, integrity and standing, and have

adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:

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State Commission - A Consumer Disputes Redressal

Commission to be known as the "State Commission"

established by the State Government in the State.

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Each State Commission shall consist of— 

• A person who is or has been a Judge of a High Court,

appointed by the State Government, who shall be its

President.

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• Not less than two, and not more than such number of members, and one of whom shall be a woman, who shall have the following qualifications, namely:—

- Be not less than thirty-five years of age; possess a bachelor's degree from a recognized

university;- Be persons of ability, integrity and standing, and have

adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:

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National Commission - A National Consumer

Disputes Redressal known as the " National

Commission” is established by the Central

Government .

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Forum / Commission Where the value of the goods or services and the compensation, if any claimed,

District Forum Does not exceed Rs. 20 lakhs

State Commission Rs. 20 lakhs and above but not exceeding One Crore

National Commission Above One Crore

Besides, State and National Commission have appellate jurisdiction also.

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A complaint may be filed by:

a) The consumer to whom the goods are sold or

services are provided

b) Any recognized consumer association

c) One or more consumers with same interest

d) The central government or state government

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The Fee for filing the Complaint for the district forum is as under

Sr. No.

Value of Goods / Service and Compensation Amount of Fees

1) Upto Rs. 1 lakh rupees Rs. 100

2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200

3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400

4) Rs. 10 lakhs and above but less than Rs. 20 lakhs

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The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission (w.e.f. 5.3.2004.)

The District Forum shall have the powers of Civil Courtwhile trying a suit in respect of the following matters ;

a) The summoning and enforcing attendance of any defendant or witness and examining the witness on oath.

b) The discovery and production of any document or other material object producible as evidence.

c) The reception of evidence on affidavit d) The requisition of the report of the concerned analysis or test

from the appropriate laboratory of from any other relevant source.

e) Any other matter which may be prescribed.

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IF THE COMPLAINT IS PROVED THE FORUM SHALL ORDER

a) to remove defect pointed out by the appropriate laboratory from the goods in question;

b) to replace the goods with new goods of similar description which shall be free from any defect;

c) to return to the complainant the price, or , as the case may be, the charges paid by the complainant;

d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to negligence of the opposite party;

e) To remove the defect in goods or deficiency in the services in question.

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f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;

g) not to offer hazardous goods for sale;h) to withdraw the hazardous goods from being offered for sale;ha) to cease manufacture of hazardous goods and to desist from offering

services which are hazardous in nature;hb) to pay such sum as may be determined by it, if it is of the opinion that

loss or injury has been suffered by a large number of consumers who are not identifiable conveniently.

hc) to issue corrective advertisements to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement;

i) To provide for adequate cost to parties.

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Shall be filed within thirty days.

Delay in filing appeal may be condoned if there is sufficient cause.

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Within two years from the date on

Which the cause of action has arisen.

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Where a complaint instituted before the District Forum,

the State Commission or the National Commission, is

found to be frivolous or vexatious, it shall, for reasons

to be recorded in writing, dismiss the complaint and

make an order that the complainant shall pay to the

opposite party such Cost, not exceeding ten thousand

rupees, as may specified in the order.

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Where a trader or a person against whom a complaint is made (or the complainant) fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, such trader or person (or complainant) shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both.

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• A person may be consumer of goods, or services. When I purchase a fan, a gas stove or a refrigerator, I could be the consumer of goods.

• When I open a bank account, take an insurance policy, get my car repaired, I could be the consumer of services.

• The consumer protection Act, 1986 tries to help a consumer when for example, the goods purchased are defective or the services rendered to him are subject to so deficiency.

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• Prior to the consumer Protection Act, 1986 for any consumer complaint one had to go to an ordinary Civil Court. He had to engage a lawyer, pay the necessary fee, and be harassed for years or decades before any outcome, positive or negative, was there in that litigation.

• Under the Consumer Protection Act, no Court fee has to be paid and the decision on the complaint is much quicker, as the Court can evolve a summary procedure in disposing off the complaint.

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NO ACTION WHERE NO TERRITORIAL JURISDICTION

In J. K. Synthethetics Vs. Smt. Anita Bhargava (1993) the registered office of the Opposite Party was situated at Kanpur. Payment was made through Bank in Delhi.

The complaint filed in Calcutta was held to be outside

the territorial jurisdiction of the District Forum. The

Order passed by the Calcutta District Forum was set

aside in Appeal

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EVIDENCE THROUGH AFFIDAVITS IS LEGAL & SUFFICIENT EVIDENCE.

In Union of India Vs. Ramswaroop Chandil (1998) the complainant? Respondent had a circular ticket in his possession during journey which was locked in his box. He was not allowed to break open the lock and produce the ticket and was forced to pay excess charge for four persons. The District Forum awarded compensation in his favour for refund of fare and excess charge and for inconvenience, humiliation and Advocates fee, etc.

In appeal by the Railway Authorities it was pleaded that the complainant had not produced any witness to support his claim. Dismissing the appeal it was held that he had narrated his case in the affidavit and the same was not rebutted by the Opposite party.

It was held that the evidence by affidavit was legal and sufficient to support the complainant’s case.

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AFFIDAVITS PERMITTED TO DETERMINE DEFICIENCY IN SERVICE AS WELL AS DAMAGES.

The Consumer Protection Act contemplates speedy disposal of complaints, which are required to be disposed off within 90 days of service of notice to Opposite Party. The Consumer Protection Act, therefore, does not contemplate regular trial as is usually done in civil suits.

In Prem Prakash Mehra Vs. Oriental Insurance Co. Ltd., (1995) it has been held that the parties can be called upon tom lead evidence on affidavits not only on question of deficiency in service but also on subject of determination of damages. This in consonance with the objective of the Consumer Protection Act, for speedy disposal of cases.

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PREGNANCY NO GROUND FOR CONDONATION OF DELAY

In Registrar, University of Pune Vs. Mrs. Puja Pravin Wagh (1999) the complainant filed a complaint 3 1/2 months after the expiry of the limitation period of 2 years against the University of Pune for the wrong declaration of result. The reason for delay in filing the complaint given by the complainant was her pregnancy. The District Forum condoned the delay and awarded compensation of Rs. 2,5000/- to the complainant. On appeal it was held that the fact of pregnancy was no justification for the delay. The complaint being time barred the order of the District Forum was set aside.

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DAMAGES In Charan Singh Vs. Healing Touch Hospital (2000) it has

been held by the Supreme Court that while quantifying damages, Consumer Forums are required to make an attempt to serve the ends of justice so that compensation is awarded, in an established case, which not only serves the purpose of recompensing the individual, but which also at the same time, aims to bring about a qualitative change in the attitude of the service provider. Indeed, calculation of damages depends on the facts and circumstances of each case. No hard and fast rule can be laid down for universal application. While awarding compensation, a Consumer Forum has to take into account all relevant factors and assess compensation on the basis of accepted legal principles, on moderation.

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In Harjot Ahluwalia (Minor), Spring Meadows Hospital an unqualified nurse gave wrong intravenous injection to a minor child, due to which the minor child suffered irreparable brain damage. The child now has to live vegetative and helpless life forever, requiring lifelong care and attention. The doctor as well as the nurse was found to be negligent and compensation of Rs 12.50 lakhs to the child, plus Rs 5.00 lakhs to the parent (for mental agony) were awarded.

 

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Name and full address of complainant

Name and full address of opposite party

Description of goods and services

Quality and quantity

Price

Date & proof of purchase

Nature of deception

Type of redressal prayed for

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BenefitBenefit

Disposal within 90 daysDisposal within 90 days

No adjournment shall ordinarily be granted - No adjournment shall ordinarily be granted - Speedy trial Relief

Removal of defects in goods or deficiency in services.

Replacement of defective goods.

Refund against defective goods or deficient services.

Compensation.

Prohibition on sale of hazardous goods.

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The Act was amended in 1993 mainly to incorporate provisions for the quorum of District Forum, appointing persons to preside over State Commission/District Forum in case of absence of the President to enable the court function uninterruptedly. In 1993 the Act was amended exhaustively to make it more effective and purposeful. The Consumer Protection (Amendment) Bill, 1993 among other things addresses the issues of quicker disposal of complaints, widening the scope of the Act, strengthening the Consumer Courts. It is also proposed to establish a consumer protection council in every district in order to strengthen the consumer movement at the grassroots level

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A BILL further to amend the Consumer Protection Act, 1986. 

It enacted by Parliament in the Fifty-third Year of the Republic of India as follows:- 

1.(1) This Act may be called the Consumer Protection (Amendment) Act, 2002. Act, 2001. 

   (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

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2.In the Consumer Protection Act, 1986 (hereinafter referred to as the principal Act), in section 2, in sub-section (1), -

(1) in clause (b), after sub-clause (iv), the following sub-clause shall be inserted, namely :-

"(v) in case of death of a consumer, his legal heir or representative;";

(2) in clause (c), -(i ) in sub-clause (i ) for the words "any trader", the

words "any trader or service provider" shall be substituted

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5) for clause (nn), the following clauses shall be substituted, namely:---

(nn) "Regulation" means the regulations made by the National Commission under this Act;

(nnn) "restrictive trade practice" means a trade practice which tends to bring about manipulation of price or conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include –

( a ) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price;

( b ) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent to buying, hiring or availing other goods or services,;

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1. Interim Orders can be passed during the pendency of the

Complaint by the District Forum. This can include orders

of the nature of disruption of the case papers in cases

involving medical fraternity.

2. Jurisdiction of the District Forum is now increased to

Rs.20/- Lacs, State Forum up to Rs.1/- Crore and

National Forum, Rs. 1/- Crore onwards.

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