Module 5
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Module V: Consumer Protection Act 1986
Rights and duties of the consumer
Tribunal forums and appellate authorities
An understanding of significant cases and role
of NGO’s.
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Consumer Protection Act 1986
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Any person who buys goods and services is considered to be
consumer.
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In the earlier days the person who buys had to be careful while
buying goods and services based on the legal principle “caveat
Emptor” i.e. “Let the buyer beware”.
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The principle has been done away with now, as the Consumer
Protection Act, 1986(CPA) has been enacted with the objective of
protecting the consumers.
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By enacting this law, which is a socio—economic legislation to
check the exaggerated claims and advertisements of the sellers,
the law treats “consumer as a king” as per the CPA.
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Scope of the Consumer Protection Act 1986
• It is enacted with the objective of providing better
protection of the consumers and their interest.
• The provisions of the Act are compensatory in nature.
• It intends to provide simple, speedy and inexpensive
redressal forums to address the consumer grievances,
and remedies of specific nature and award of
compensation.
• The Act has been amended i.e. in 1991,1993 and
2002, to extend the scope and coverage of the powers
of the redressal forums and the rights of the
consumers.
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Salient Features of CPA
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It is applicable to all types of goods and services unless specifically
exempted by the Central Government.
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The ambit of the Act covers all the sectors like public, private or cooperative societies etc.
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It is compensatory in nature.
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The forums are empowered to award even punitive damages.
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The amount of damages awarded can be recovered like the arrears
of the land revenue.
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A three tier system of redressal forums have been created like
District forum, State Commission and the National Commission
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Who are Consumers
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The persons who buy goods and services are called consumers.
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The definition does not include persons who obtained goods and
services for commercial purposes.
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The persons who buys and sells goods and services for resale or
commercial purpose will fall outside the purview of the Act.
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But if something is bought for complying with statutory provisions
of photo-copying registered documents for public, it can be
considered to be for non-commercial use (State Government of
Maharashtra V. Hindustan Computers Ltd.)
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Complaint under CPA
• Any person who is aggrieved , has to file a complaint
in writing to any forum based on the jurisdiction. Once
a complaint is filed, the opposite party will be sent a
copy of it within 21 days with a direction to give their
response within 30 days. In case of requirement the
forum may grant an extension of another 15 days.
• Complainant :will include the legal heir or
representative of the consumer, in case of death of
the complainant.
• Once the forum admits the case, it cannot be
transferred to any other court or tribunal.
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Jurisdiction
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The jurisdiction under CPA is pecuniary in nature.
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The pecuniary jurisdiction for awarding compensation has been
increased after the amendments to lessen the burden of the
appellate forums.
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The jurisdiction specified under the Act as per the lowest to higher
forum are: (The organizer chart shows lowest to highest forum as
per its pecuniary jurisdiction)
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After the decision of the National Commission an Appeal can be
filed before the Supreme Court.
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Compensation amount upto Rs20 lakhs—District Forum
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Compensation
Commission
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Compensation amount > Rs1crore—National Commission
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Appellate Authority: Supreme Court of India
amount
>20
lakhs
upto
Rs1
crore—State
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Procedure for refusal of complaints
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The District Forum may refuse to accept a complaint for any of the following
reasons:
Lack of Jurisdiction
Non- Payment of the prescribed fee
Frivolous or vexatious complaints
Dispute is not a consumer dispute
Lapse of time ( Limitation Period Two years from the date of the cause of
Action))
If the same matter is already pending before another forum or court
After a complaint has being admitted, which has to be done
within 21 days of a complaint been filed before the forum. Any complaint
admitted by the forum must be decided within 3 months of its receipt.
Once the complaint is admitted then, the opposite party has to be served
with a notice . The opposite party can either dispute or deny the allegations
contained . Later the forum may dismiss or decide on merits.
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Powers of the Redressal Forums
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The DF can pass interim orders.
Order compensation
Order to cease manufacturing
Award general and punitive damages
It can pass ex-parte orders
Judicial Review
Transfer of cases for convenience
Enforcement of the interim orders
Summary powers for disobedience of the order
To try the offences under the Act summarily
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Consumer Redressal Mechanisms
• It aims at providing simple, speedy, and in expensive
redressal of consumer grievances.
• The Act envisages three-tier quasi-judicial machinery at the
national, Sate and District levels.
• The procedure that is followed by the Civil Court has to be
followed like summoning, attendance of defendants and
examining witnesses, production of documentary evidence
including reception of evidence on affidavits. In case of
necessity the results of test conducted at laboratories, issuing
commission for examination of any witness etc….
• After the decision of the district forum, there is provision for
appeal to State and National Commission within 30 days. If no
appeal is filed within the prescribed period, the order of the
particular forum would be final. The Act also provides the
forums with powers of revision.
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Other provisions
• Circuit Benches- New provisions have also been
made for creation of circuit benches of the
commission. The commission shall function in the
State capital but may perform at such other places
as notified in the official gazette.
• Manufacturer- Manufacturer to include the
manufacturer of goods and parts; assembler of
goods and parts and the person who puts or
causes to be put, his mark on any product. The
decisions have induced the manufacture to include
the person who has lent his brand name for
making them liable for defective goods.
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Establishment of Consumer Protection Councils
Under the CPA one of the objectives is to establish State
and Central Councils which must work to promote and
protect the rights of the consumers regarding availment
of services as follows:
• Right of protection against unfair trade practices and
restrictive trade practices.
• Right of assurance and access to services at
competitive prices.
• Right to consumer education
• It has been made mandatory to establish these councils
including the District CPC, whereas the Central
Government is obliged and empowered to nominate
officials and non-officials members.
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Consumer Protection Act
• ..\CPA Cases.docx
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