Topic: The Consumer Protection
Act, 1986 and How to use it
effectively
By:
Abdul Hafiz Gandhi,
Research Scholar, JNU.
Email: abdulhafizgandhi@gmail.com
Email: Charchafoundation@gmail.com
www.facebook.com/abdulhafizgandhi
Mob.: 09953585693
4th May, 2013
4 to 6 pm
Organised by: Institute of Objective
Studies, New Delhi.
Today’s discussion is about:
1. History of Consumer Protection
2. A cursory discussion about some laws other than
Consumer Protection Act, 1986
3. Who is a consumer under the Consumer Protection
Act?
4. What are the things which can be complained against?
5. When and by whom a complaint can be made?
5. What reliefs are available to the consumers ?
7. Adjudicatory mechanisms under Consumer Protection
Act
6. Question and Answer session
2
Consumer Protection Act, 1986
[ As amended by the Consumer Protection (Amendment) Act,
2002]
Consumer Protection Act, 1986 was amended
thrice:
1.
1991
2.
1993
3.
2002
3
Every person is the consumer in
the literal sense of the term
When we approach the market as a consumer, we expect
value for money, i.e., right quality, right quantity, right prices,
information about the mode of use, etc. But there may be
instances where a consumer is harassed or cheated.
The Government understood the need to protect consumers
from
unscrupulous
suppliers,
producers,
traders,
manufacturers and service providers etc. and several laws
have been made for this purpose. Prior to the passing of
Consumer Protection Act, 1986, these laws to some extent
protect the consumer interests.
However, these laws require the consumer to initiate action
by way of a civil suit or criminal complaint by govt. officials
involving lengthy legal process which is very expensive and
time consuming.
4
Historical background of Consumer Protection
Movement
1824- History of Consumer Protection can be
traced back to this year
1872- Mail Fraud Law (to control false Advertisements)
1890- Sherman Anti-Trust Act ( to prevent Cartels
and Monopolies)
Book- ‘The Jungle’- by Upton Sinclair ( meat
packaging Industry in Chicago)
Pure Food and Drug Act, 1906
Federal Trade Commission- 1914
Food and Drug Administration -1931
Food, Drug and Cosmetics Act, 1938
15th March, 1962- John F. Kennedy- US CongressConsumer Protection Bill of Rights
5
Ralph Nader- 1967- Advocate in America- Book
‘ Unsafe at Any Speed’
Consumer Product Safety Commission, 1972
Indian Situation: Many criminal laws were passed in
India to protect the interest of the consumers - but these
laws were product or goods specific legislations.
In India- MRTP, 1969- Competition Act, 2002
9th April, 1985- UN General Assembly passed
Resolution no. 39/85 (having general guidelines to
protect consumers’ interest)
In India- Consumer Protection Act, 1986
United Nations- 1999- ’Sustainable Consumption’
Mahatma Gandhi- ‘the rich must live more simply so that
the poor may simply live’.
6
UN GUIDELINES FOR THE CONSUMER PROTECTION
 Protect from hazard to health & safety
 Promote & protect economic interests
 Provide adequate information for informed choice
 Consumer education
 Provide
effective
redress—formal
and
informal
procedures
 Freedom to form groups & present views in decisionmaking affecting consumers
What are the rights of a
‘consumer’?
 Protection from hazardous goods and services
 Information about the quality, quantity, purity,
standard and price
 Access to a variety of goods and services at
competitive prices
 Assurance that his interest will be considered at
appropriate fora
 The right to consumer education
Major Consumer Protection Laws in India
1. The Indian Penal Code, 1860
2. The Indian Contract Act, 1872
3. The Sale of Goods Act, 1930
4. The Agricultural Produce (Grading & Marking ) Act, 1937
5. The Drugs and Cosmetics Act, 1940
6. The Drug (Control) Act, 1950
7. The Industries (Development and Regulation) Act, 1951
8. The Drugs and Magic Remedies (Objectionable Advertisements) Act,
1954
9. The Prevention of Food Adulteration Act, 1954
10. The Essential Commodities Act, 1955
11. The Trade and Merchandise Marks Act, 1958
12. The Monopolies and Restrictive Trade Practices Act, 1969
13. The Cigarettes (Regulation of Production, Distribution and Supply) Act,
1975
14. The Standards of Weights and Measures Act, 1976
15. The Prevention of Black Marketing and Maintenance of Supplies of
Essential Commodities Act, 1980
16. The Standards of Weights and Measures (Enforcement) Act, 1985
17. The Bureau of Indian Standards Act, 1986
18. The Consumer Protection Act, 1986
Note: There were around 28 laws dealing with various
aspects of Consumer Protection in India prior to Consumer
9
Protection Act, 1986.
The Monopolies and Restrictive Trade Practices
(MRTP) Act, 1969
The Act was intended to prevent concentration
of economic power in a few hands, and to
control monopolistic and restrictive trade
practices.
Consumer interest was sought to be protected
through the promotion of competition and
control of anti-competitive business practices.
However, the working of the MRTP Act revealed
that many trade practices, prevailing in the
market, escaped the regulatory measures of the
Act even though they were unfair or deceptive.
10
In pursuance of the recommendations of the High-Powered
Expert Committee, headed by Justice Rajinder Sachar
(Report, 1978), the MRTP Act was amended, with effect from
August 1, 1984. The most important amendment brought about
in the MRTP Act was the incorporation of provisions for the
regulation of unfair trade practices (UTPs). The following five
types of trade practices were considered to be UTPs when they
caused any loss or injury to the consumer:
1. Making false or misleading claims about a product or
service through an advertisement or otherwise;
2. Offering of
advertisements;
bargain
prices
and
making
of
bait
3. Offering of pseudo gifts or prizes and conducting sales
promotion contests, lottery, or games of chance or skill;
4. Supplying unsafe or hazardous products; and
5. Hoarding or destroying goods, or refusing to sell goods,
resulting in a price increase.
11
Unfair Trade Practices (UTPs) were sought to be
regulated by the MRTP Commission, which was
empowered to conduct an inquiry into any alleged
practice on receipt of:
(i) a
complaint
from
any
consumer,
any
recognised consumer association, or any trade
association
(ii) a reference from the Central Government or
any State Government
(iii) an application from the Director-General of
Investigation and Registration or
(iv) on its own knowledge or information (suo
motu)
At
the conclusion of the inquiry, the Commission was
empowered to pass any appropriate order against the person
indulging in such practices, including passing of a “cease and
desist order” and awarding of suitable compensation for
the loss or injury caused by such trade practice.
12
CONSUMER’S RIGHT TO PARTICIPATE IN INQUIRY PROCEEDINGS
In a landmark decision, delivered in 1989, in a UTP case against
the manufacturers of certain brands of soft drinks, the MRTP
Commission ruled that an individual consumer, registered
consumers’ association, or a trade association which filed a
complaint against a restrictive or unfair trade practice before the
Commission was entitled to pursue the complaint, to participate
fully in the inquiry proceedings, by way of producing evidence,
cross examining the witness of the respondent, administering the
interrogatories, and seeking discovery of documents.
The decision paved the way for consumers to participate
effectively in the inquiry proceedings and to pursue their case
before the MRTP Commission. Before that decision, the consumers’
right was confined to making a complaint and thereafter the case was
left to be pursued by the Director-General of Investigation and
Registration (DGI&R). Many cases fell through, due to their improper
prosecution in the absence of the complainant’s participation.
Case:
VOICE and others vs. Delhi Bottling Co. Private Ltd. (UTP
Inquiry No. 151 of 1986, order dated 16.1.1989).
13
WITHDRAWAL OF PUBLIC SECTOR EXEMPTION
Prior to Sept, 1991, the public sector undertakings were outside the
purview of the MRTP Act. As provided under Section 3 of the MRTP Act,
the provisions of the Act were not applicable to undertakings owned or
controlled by the Central and State Governments, government companies,
statutory corporations, trade unions, private industrial undertakings
whose management had been temporarily taken over by the Central
Government, financial institutions, and cooperative societies.
Note: The Central Government was, however, empowered to extend the
provisions of the MRTP Act,1969 to these undertakings.
Through a gazette notification, issued on September 27, 1991, the Central
Government sought to remove this glaring deficiency in the regulatory
provisions by withdrawing the exemption enjoyed by public-sector
undertakings, co-operative societies and financial institutions.
Consequently, all the public-sector undertakings engaged in
producing and marketing consumer goods and providing
consumer services are now subject to regulatory measures
intended to promote competition and to protect the consumer
interest through the control of unfair, restrictive, and
monopolistic trade practices.
14
Public-sector undertakings, in fact, occupy
commanding heights in the national economy. In
many areas of consumer goods and services, they
are the major suppliers.
This decision of the Central Government had
brought to the MRTP Commission’s fold several
large public-sector organisations such as the
railways,
airlines,
state
road
transport
corporations, banks, state electricity boards,
housing authorities, life and general insurance
corporations, telephone companies and municipal
corporations.
The withdrawal of public-sector exemption has
been hailed as an important step in the direction of
consumer protection in India.
15
Locus standi – right to file complaint
Earlier, consumers and their associations did not enjoy any locus standi
under certain pieces of legislation intended to provide for their
protection. The cognizance of any offence under these enactments could
be taken only by a Government Inspector who was authorised to
lodge a report of the violation of the statutory provision before the
appropriate court/authority. These laws were amended, in December
1986, so as to confer on the individual consumers, and their recognized
associations, the right to file a complaint against any violation of the
relevant Act and seek redress of their grievances. These legislations
included the Agricultural Produce (Grading and Marking) Act, 1937; the
Drugs and Cosmetics Act, 1940; the Prevention of Food Adulteration Act,
1954; the Essential Commodities Act, 1955; the Standards of Weights
and Measures Act, 1976 and the Standards of Weights and Measures
(Enforcement) Act, 1985.
In order to give further fillip to the consumer movement, the MRTP
Act,1969 was also amended in December, 1986 (effective from
1.6.1987), conferring on individual consumers and recognized
consumers’ associations the right to seek redress of grievances against
any restrictive or unfair trade practice. Earlier, a complaint against any
such trade practice could be entertained by the MRTP Commission only
when it was made by at least 25 persons or by a consumers’ association
with a membership of 25 persons or more.
16
The Consumer Protection Act, 1986discussion
a detailed
The most significant milestone in the history of
consumer protection in India was the passing of the
Consumer Protection Act (CPA) in December
1986.
The Consumer Protection Act,1986 was hailed as
the most progressive and comprehensive socioeconomic legislation in the country.
Its enactment was preceded by a prolonged public
debate and a persistent demand from consumer
activists and concerned citizens.
Unlike the earlier laws, which were punitive and
preventive in nature, the provisions of the
Consumer Protection Act, 1986 are compensatory
in nature.
17
The Consumer Protection Act, 1986 was enacted to provide
a simpler and quicker access to redressal of consumer
grievances.
The Act for the first time introduced the concept of ‘consumer’ and
conferred express additional rights on him. It is interesting to
note that the Act doesn’t seek to protect every
consumer within the literal meaning of the term. The
protection is meant for the person who fits in the
definition of ‘consumer’ given by the Act.
The Act has provided a machinery whereby consumers can
file their complaints which will be entertained by the
Consumer Forums with special powers so that action can
be taken against erring suppliers and the possible
compensation may be awarded to consumer for the
hardships he has undergone.
Nominal fee is required to be paid to these forums and
there is no need to engage a lawyer to present
the case.
18
When the State governments dithered and
showed lack of enthusiasm in the setting up of
District Forums and State Commissions, as
mandated by the Consumer Protection Act, the
Supreme Court, in a significant judgment,
delivered on September 19, 1989, directed the
State governments to set up District Forums
and State Commissions in each of the districts
and states, within six weeks and to report
compliance of the order within two weeks
thereafter.
Common Cause vs.
(1989) 2 Scale 541.
Union
of
India,
This literally brought justice to the doorstep
of the consumers.
19
More complaints relate to deficient
services
More than 75 per cent of the
complaints pertain to services
involving
electricity
boards,
telephone corporations, housing
boards, airlines, railways and road
transport
corporations,
banks,
finance companies and insurance
companies. The rest of the cases
have arisen out of the supply of
defective goods.
20
CONSUMER PROTECTION ACT, 1986some salient features
 Enacted to provide for the better protection of the
interest of consumer
 Act applies to whole of India except the state of
Jammu and Kashmir
 The Consumer Protection Act was amended latest
in 2002 and the amendments came into force
w.e.f. 15th March 2003.
 It covers all sectors- private, public and Cooperative
 The Act applies to all goods and services unless
specifically exempted by the Central Government
21
Salient features…….continued
 The provisions of this Act are compensatory in nature
 It provides adjudicatory authorities, which are simple,
speedy and less expensive
 It also provides for Consumer Protection Councils at the
National, State and District levels.
 The provisions of this Act are in addition to and not in
derogation of the provisions of any other law for the time
being in force (Section 3 of Consumer Protection Act, 1986)
Note: In the International Conference on Consumer Protection
held in Malaysia in 1997, the Indian Consumer Protection Act,
1986 was described as one “which has set in motion a
revolution in the field of consumer rights, the parallel of
which has not been seen anywhere else in the world”.
22
What to do if the product that you have bought
is defective or the service we availed is
deficient?
1. We should immediately bring it to the notice
of the shopkeeper or service provider and ask
him to replace it or make the service proper.
2. If he does not act, take up the issue with the
manufacturer of that product or service
provider.
3. If this step also does not yield desired result,
you may approach the Consumer Forum.
4. There is at least a District Forum in each and
every district of this country.
23
CONSUMERS NEED PROTECTION AGAINST
 Unfair trade practices
 Restrictive trade practices
 Defects
 Deficiencies
CONSUMERS NEED PROTECTION AGAINST
UNFAIR TRADE PRACTICES
Adopting unfair methods or deception to promote
sale, use or supply of goods or services
Misleading public about price (e.g. bargain price when
it is not so)
Charging above MRP printed
Misleading public about another’s goods or services
Falsely claiming a sponsorship, approval or affiliation
Offering misleading warranty or guarantee
CONSUMERS NEED PROTECTION AGAINST
RESTRICTIVE TRADE PRACTICE
 Price fixing or output restraint eg. delivery/flow of supplies to
impose unjustified costs/restrictions on consumers
 Collusive tendering; market fixing territorially among
competing suppliers, depriving consumers of free choice, fair
competition
 Supplying only to particular distributors or on condition of sale
only within a territory
 Delaying in supplying goods/services leading to rise in price
 Requiring a consumer to buy/hire any goods or services as a
pre-condition for buying/hiring other goods or services
CONSUMERS NEED PROTECTION AGAINST
 DEFECTS
 Any fault, imperfection or shortcoming in the quality,
quantity, potency, purity or standard which is required
to be maintained by or under any law for the time being
in force or under any contract express or implied or as is
claimed by the trader in any manner whatsoever in
relation to any goods.
 DEFICIENCY
 Any fault, imperfection, shortcoming or inadequacy in the
quality, nature and manner of performance which is
required to be maintained by or under any law for the
time being in force or has been undertaken to be
performed by a person in pursuance of a contract or
otherwise in relation to any service.
WHAT IS A DEFECT ?
 Fault
 Imperfection
 Shortcoming
In the
 Quality
 Quantity
 Potency
 Purity
Or
 Standards
Which is required to be maintained by or
under any law for the time being in force
28
WHAT IS A DEFICIENCY ?
 Fault
 Imperfection
 Shortcoming Or
 Inadequacy
In the
 Quality
 Standard and
 Manner of performance
Which is required to be maintained by or
under any law for the time being in force
29
WHAT IS A SERVICE?
“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 construction
9) entertainment 10) amusement or
11) the purveying or news or other information
Note: The list is illustrative and not exhaustive
But does not include the rendering of any
service free of charge or under a contract of
personal service
30
Who is a consumer ?
A person may be a
consumer of goods
or services
Note: Foreigners are also consumers
31
WHO IS A CONSUMER ?
 Two kinds of consumer under the Act
 Consumer of goods
 buys or agrees to buy goods
 any user of such goods
 Consumer of services
 hires or avails any services
 any beneficiary of such service
Section 2(1) (d) of the Consumer Protection Act, 1986 says
that consumer means any person who—
(i) buys any goods for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment, and
includes any user of such goods other than the person who buys such goods
for consideration paid or promised or partly paid or partly promised, or under
any system of deferred payment when such use is made with the approval
of such person, but does not include a person who obtains such goods for
resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment, and includes any beneficiary of such services other than the person
who hires or avails of the services for consideration paid or promised, or partly paid
and partly promised, or under any system of deferred payment, when such
services are availed of with the approval of the first mentioned person but
does not include a person who avails of such services for any commercial ;
Explanation.—For the purposes of the sub-clause “commercial purpose” does
not include use by a consumer of goods bought and used by him and services
availed by him exclusively for the purpose of earning his livelihood, by means
of self-employment.
33
Consumer of goods:
A person claiming himself as a
consumer of goods should satisfy that:
1. The goods are bought for consideration paid or payable
2. Any person who uses the goods with the approval of the buyer is a
consumer ( example: family members, relatives and friends)
The words “....with the approval of the buyer” in the definition denotes
that the user of the goods should be a rightful user.
Case: [Dinesh Bhagat v. Bajaj Auto Ltd. (1992) III CPJ 272]
decided by Delhi State Commission
Note : This is an exception to the general rule of law that a
stranger to a contract cannot sue.
3. Any person who obtains the goods for ‘Resale’ or for ‘Commercial
purpose’ is not a consumer i) [Smt. Pushpa Meena v. Shah
Enterprises (Rajasthan) Ltd. (1991) 1 CPR 229]. A jeep bought to be
used as taxi- its a commercial purpose. ii) Computer purschased for a
company
34
4. A person buying goods for self-employment is a consumer
When goods are bought for commercial purposes and such purchase
satisfy the following criteria :
- the goods are used by the buyer himself ;
- exclusively for the purpose of earning his livelihood ;
-by means of self-employment,
then such use would not be termed as use for commercial purposes
under the Act, and the user is recognised as a consumer.
Examples :
1. A buys a truck for plying it as a public carrier by himself, A is a
consumer.
2. A buys a truck and hires a driver to ply it, A is not a consumer.
3. A has one cloth shop. He starts another business of a
photocopier and buys a photocopy machine therefor. He hasn’t
bought this machine exclusively for the purpose of earning
livelihood. He is not a consumer under the Act.
Note : This is an exception to the rule that a buyer of commercial
goods is not a consumer under the Act.
35
However, if such a buyer takes assistance of two or more
persons to help him in operating the vehicle or machine,
etc., he does not cease to be a consumer.
Examples :
1. A buys a truck, ply it himself and hires a cleaner who
accompany him all the time and at times drives also
when A is busy otherwise, A is a consumer.
2. P, an eye surgeon, purchased a machine from R for the
hospital run by him. The machine was found to be a
defective one. R contended that P was not a consumer under
the Act as the machine was bought for commercial
purposes. The National Commission rejected this contention
and held that P is a medical practitioner, a professional
working by way of self employment by using his knowledge
and skill to earn his livelihood. It was not proved by any
evidence that P is running a huge hospital. Thus the
purchase of machinery is in the nature of self employment.
[Rampion Pharmaceuticals v. Dr. Preetam
Shah (1997) I CPJ 23 (NCDRC)].
36
Intention of the legislature in doing so !
The intention of the legislature is to exclude big
business houses carrying on business with profit
motive from the purview of the Act. At the same
time it is pertinent to save the interests of small
consumers who buy goods for self employment to
earn their livelihood, like a rickshaw puller buying
rickshaw for self employment, or a farmer
purchasing fertilizer for his crops, or a taxi driver
buying a car to run it as a taxi, etc.
37
Consumer of services:
A person is a consumer of services
if he satisfy the following criteria :
1. Services are hired or availed of : The term ‘hired’ has not been
defined under the Act. Its Dictionary meaning is - to procure the use of
services at a price.
Examples :
a) A goes to a doctor to get himself treated for a fracture. Here A is
hiring the services of the doctor. Thus he is a consumer.
b) A passenger getting railway reservation after payment is hiring
service for consideration.
c) A landlord neglected and refused to provide the agreed amenities to
his tenant. The tenant filed a complaint against the landlord under the
Consumer Protection Act. The National Commission dismissed the
complaint saying that it was a case of lease of immovable property
and not of hiring services of the landlord. [Smt. Laxmiben
Laxmichand Shah v. Smt. Sakerben Kanji Chandan [1992] 1
Comp. LJ 177 (NCDRC)].
38
d) A presented before the Sub-Registrar a document claiming it to be a will for
registration who sent it to the Collector of Stamps for action. The matter
remain pending for about six years. In the meantime A filed a complaint under
the Consumer Protection Act alleging harassment by the Sub-Registrar and
Collector and prayed for compensation. The National Commission held the
view that A was not a “consumer” under the CPA. Because there was no hiring
of services by the complainant for consideration and because a Government
official doing his duty as functionary of the State under law could not be said
to be rendering a service to the complainant. [S.P. Goel v. Collector of
Stamps (1995) III CPR 684 (SC)].
2. Consideration must be paid or payable
Consideration is regarded necessary for hiring or availing of services. However, its
payment need not necessarily be immediate. It can be in installments. For the
services provided without charging anything in return, the person availing the
services is not a consumer under the Act.
Examples :
a) A goes to a doctor to get himself treated for a fracture. The doctor being his
friend charged him nothing for the treatment. A is not a consumer under the
Act.
39
Note: The Direct and Indirect taxes paid to the State by a citizen is
not payment for the services rendered.
Example : T was paying property tax for his house to the local
corporation. This corporation was responsible for proper water
supply to the premises under its work area. T raised a consumer
dispute over the inadequacy of water supply by the corporation.
The National Commission held that it was not a consumer dispute
as water supply was made by the corporation out of its statutory
duty and not by virtue of payment of taxes by T. [Mayor, Calcutta
Municipal Corporation v. Tarapada Chatterjee (1994) 1 CPR 87
(NCDRC)].
3. Beneficiary of services is also a consumer
When a person hires services, he may hire it for himself or for any
other person. In such cases the beneficiary (or user) of these services is
also a consumer.
Example : A takes his son B to a doctor for his treatment. Here A is hirer
of services of the doctor and B is beneficiary of these services. For the
purpose of the Act, both A and B are consumers.
Note : This is an exception to the Rule of Privity to the Contract.
40
What is a Complaint ?
An aggrieved consumer seeks redressal under the
Consumer Protection Act, 1986 through the instrumentality
of complaint. It does not mean that the consumer can
complain against his each and every problem. The
Consumer Protection Act, 1986 has provided certain
grounds on which complaint can be made. Similarly, relief
against these complaints can be granted within the set pattern.
What constitutes a complaint ? [Section 2(1)(c)]
Complaint is a statement made in writing to the National
Commission, the State Commission or the District Forum by a
person competent to file it, containing the allegations in
detail, and with a view to obtain relief provided under the
Act.
41
What is a Complaint?
 An allegation in writing by a complainant
that:
 An unfair or restrictive trade practice is practiced
by trader or service provider
 Goods bought or to be bought or services hired
or to be hired suffered from any deficiency
 Trader or service provider has charged excess
price
 Goods and services are hazardous or are likely to
be hazardous to life and safety
What a complaint must contain [Section 2(1)(c)]
A complaint must contain any of the following allegations :
(a) An unfair trade practice or a restrictive trade practice
has been adopted by any trader;
Example : A sold a six months old car to B representing it to be a
new one. Here B can make a complaint against A for following an
unfair trade practice.
(b) The goods bought by him or agreed to be bought by
him suffer from one or more defects;
Example : A bought a computer from B. It was not working
properly since day one. A can make a complaint against B for
supplying him a defective computer.
43
(c) The services hired or availed of or agreed to be hired or
availed of by him suffer from deficiency in any respect.
Example : A hired services of an advocate to defend himself
against his landlord. The advocate did not appear every time the
case was scheduled. A can make a complaint against the
advocate.
(d) A trader has charged for the goods mentioned in the
complaint a price in excess of the price fixed by or under
any law for the time being in force or displayed on the
goods or any package containing such goods.
Example : A bought a sack of cement from B who charged him
Rs. 100 over and above the reserve price of the cement declared
by the Government. Here A can make a complaint against B.
44
(e) Goods which will be hazardous to life and safety when
used, are being offered for sale to the public in
contravention of the provisions of any law for the time
being in force requiring
traders to display
information in regard to the contents, manner
and effect of use of such goods.
Example : A bought a tin of disinfectant powder. It had lid which was
to be opened in a specific manner. Trader did not inform A about
this. While opening the lid in ordinary way, some powder flew in the
eyes of A which affected his vision. Here A can make a complaint
against the trader.
45
Who can file a complaint
[Sections 2(b) & 12]
 A consumer
 Any voluntary consumer association
registered under the Companies Act or any
other law for the time being in force
 Central or State Government, if it makes a
complaint
 One or more consumers having same interest
In addition to the above following are also considered as a consumer
and hence they may file a complaint :
a) Beneficiary of the goods/services : The definition of consumer
itself includes beneficiary of goods and services. [K.B. Jayalaxmi v.
Government of Tamil Nadu 1994(1) CPR 114].
Where a young child is taken to the hospital by his parents and the
child is treated by the doctor, the parents of such a minor child can file
a complaint under the Act. [Spring Meadows Hospital v. Harjot
Ahluwalia JT 1998(2) SC 620].
b) Legal representative of the deceased consumer - Section
2(b) of CPA, 1986: By the operation of law, the legal
representatives get clothed with the rights, status and
personality of the deceased. Thus the expression consumer would
include legal representative of the deceased consumer and he can
exercise his right for the purpose of enforcing the cause of action
which has devolved on him.
[Cosmopolitan Hospital v. Smt. Vasantha P. Nair (1)
1992 CPJ NC 302].
47
c) Legal heirs of the deceased consumer : A legal heir of the
deceased consumer can file a complaint under the Act. [ Joseph Alias
Animon v. Dr. Elizabeth Zachariah (1) 1997 CPJ 96].
d) Husband of the consumer : In the Indian conditions, women may
be illiterate, educated women may be unaware of their legal rights, thus a
husband can file and prosecute complaint under the Consumer Protection
Act on behalf of his spouse. [Punjab National Bank, Bombay v. K.B.
Shetty 1991 (2) CPR 633].
e) A relative of consumer : When a consumer signs the original
complaint, it can be initiated by his/her relative. [Motibai Dalvi Hospital
v. M.I. Govilkar 1992 (1) CPR 408].
f) Insurance company : Where Insurance company pays and settles
the claim of the insured and the insured person transfers his rights in
the insured goods to the company, it can file a complaint for the loss
caused to the insured goods by negligence of goods/service
providers. For example, when loss is caused to such goods because of
negligence of transport company, the insurance company can file a claim
against the transport company. [New India Assurance Company
Ltd. v. Green Transport Co. II 1991 CPJ (1) Delhi].
48
ESSENTIAL INFORMATION IN THE APPLICATION
 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
Machinery under the Act
 Central Consumer Protection Council
 to be established by Central Government
 State Consumer Protection Council
 to be established by State Government
 District Consumer Protection Council
 to be established by State Government for every
district
Consumer Dispute Redressal
Machinery under CPA, 1986
 There are Consumer Fora at the District,
State and National level
 District Forum – At the District level
 State Commission – At the State level
 National Commission – At the National level
FORUMS AND THEIR JURISDICTION
 Consumer Disputes Redressal Forums (District Forum)

Claims less than or equal Rs.20 lacs.
 Consumer Disputes Redressal Commissions (State
Commission)
 Claim more than Rs.
20 lacs & less than Rs.1 crore &
appeals.
 National Consumer Disputes Redressal Commission
(National Commission)

Claim equal to Rs.1 crore and more & appeals
Pecuniary Jurisdiction
 Forum where complaints can be entertained
 Depends on value of goods and service and
compensation claimed
 Limits are :
 District Forum
 not exceeding Rs.20 lakhs
 State Commission
 exceeds Rs.20 lakhs but does not exceed Rs.1 Crore
 National Commission
 exceeds Rs.1 Crore.
Territorial Jurisdiction
 Territorial Jurisdiction lies in the Consumer
Forum (Court) of the place :
 Where the opposite party resides or carries
on business or personally works for gain
 Where the cause of action wholly or partly
arose.
FEE FOR FILING OF COMPLAINTS
The fee for filing the complaint in 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
Rs. 500
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.)
55
POWER OF CIVIL COURT TO
DISTRICT FORUM
The District Forum shall have the powers of Civil Court
while 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 or from any other relevant source.
e)
Any other matter which may be prescribed.
56
Relief
available
against
[Sections 14 and 22]
complaint
A complainant can seek any one or more of the following relief
under the Consumer Protection Act,1986:
(a) to remove the 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 the negligence of the
opposite party;
57
(e) to remove the defects or deficiencies in the services
in question;
(f) to discontinue the unfair trade practice or the
restrictive trade practice or not to repeat it;
(g) not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered
for sale;
(i) to provide from adequate costs to complainant.
58
What is the appeal provision?
If one is not satisfied with the orders issued by
the District Forum, one can file appeal petition
before State Commission. Similarly, appeal
against the
orders issued by the State
Commission goes to the National Commission
and from the National Commission to the
Supreme Court.
The time limit within which the appeal should
be filed is 30 days from the date of the decision
in all cases.
59
Time frame within which a complaint can be filed
- Section 24A
Section 24A of the Consumer Protection Act, 1986 provides
that a consumer dispute can be filed within two years from the
date on which the cause of action arises.
Since this provision was inserted in the Act in 1993, before that
the Consumer Forums were following the Limitation Act, 1963,
which says that a suit can be filed within three years after the
cause of action arises.
The point of time when cause of action arises is an important
factor in determining the time period available to file a complaint.
There are no set rules to decide such time. It depends on
the facts and circumstances of each case.
Example: A house was allotted on 1-1-1999. Defects appeared in
the house on 10-1-1999. Here the cause of action will arise on
10-1-1999.
60
Note: It may be noted that these time frames are not
absolute limitations. If the Consumer Forum is satisfied
that there was sufficient cause for not filing the complaint
within the prescribed period, it can entertain a complaint
beyond limitation time. However the Forum must record
the reasons in writing for condonation of such delay.
Example :
A deposited some jewellery with a bank. Bank lost it. Bank kept
giving her false sense of hope to retrieve the jewellery, and thus
A was put in a state of inaction. Later on when A filed a suit on the
Bank, it claimed that the suit was not maintainable as the limitation
time after the cause of action arose has lapsed. The Commission
reprimanded the bank and admitted the case. [Agnes D’Mello v.
Canara Bank [1992] I CPJ 335 (NCDRC)].
Note: The delay for every single day has to be
explained.
61
PENALTIES
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.
62
DISMISSAL OF FRIVOLOUS OR
VEXATIOUS COMPLAINTS
 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.
63
Medical Service covered under Consumer Protection Act,
1986
Medical professionals, argued that the service rendered by a doctor was a service
“under a contract of personal service,” and was, therefore, excluded from the
scope of the term “service,” as defined in section 2(o) of the CPA.
In two cases, decided in April 1992, the National Consumer Disputes Redressal
Commission rejected the contention of the Indian Medical Association (IMA) and
certain others that the medical service is a personal service exempt under the CPA.
In a judgment that sets the future course of medical service in the country, the
National Commission upheld the consumer’s right to seek redress before a
consumer court for any negligence or deficiency in the service
rendered by any medical professional or hospital for a fee.
1. Cosmopolitan Hospitals vs. Vasantha P. Nair,
2. Cosmopolitan Hospitals vs. V. P. Santha,
[Both decided on 21.4.1992; Company Law Digest, Vol. 21, No. 4
(June 1992), p. 65; II (1992) CPJ 302 (NC)].
64
The Indian Medical Association, acting on behalf of the medical profession
in the country, challenged the order of the National Commission before the
Supreme Court.
In its landmark judgment, delivered on November 13, 1995, the Supreme
Court classified all medical service organisations (hospitals, nursing
homes, dispensaries, and medical practitioners), whether government or
non-government, into three categories:
1. Those providing service free of cost to all patients (rich or poor), the
payment of a token amount as registration fee being ignored.
2. Those providing service on payment of charges.
3. Those providing service free to some and on payment of charges
to others.
The Supreme Court ruled that while services provided in the first category
would be outside the purview of CPA, those provided in the categories (2)
and (3) would be covered by the CPA. Moreover, the recipient of the
services would be considered a “consumer,” entitled to claim
compensation in case of any “deficiency” in the service. The Supreme Court
rejected the contention of the medical practitioners that the consumer
courts are incapable of handling cases of medical negligence because they
are not composed of experts in the field of medicine.
Indian Medical Association vs. V. P. Santha and
65
others, (1995) 6 SCC 651.
PROBLEM - 1




A had purchased seeds from a party.
The seeds did not germinate.
The party which supplied seeds took the
plea that A was not a consumer.
Is purchase of seeds for the purpose of
agriculture, a purchase for commercial
purpose?
PROBLEM - 2



A had applied for electricity connection.
However, power supply was not provided to
A.
Can A seek redressal of his grievance in
Consumer Court?
PROBLEM - 3


A registered letter sent to A was not
delivered.
What is the liability of an employee of the
Post Office in this matter?
CASE LAWS ON THE ACT.
PECUNIARY JURISDICTION
 In Krishan Dass Chaurasia V. State Bank of India (1995) the total claim
in a complaint did not exceed Rs. 1,00,000/-. It was held that the matter was not
within the jurisdiction of the State Commission and such a claim was rejected by
the State Commission. The Complainant could seek the remedy from the District
Forum. Therefore, jurisdiction, which is vested in a district Forum cannot be
created for State Commission by merely exaggeration of a claim.

In B. Raghunath Vs Trans India Tourism (1996) the complainant had
suffered a loss of Rs. 5,000/-, according to his own statement. He claimed
compensation of Rs. 5,00,000. It was evident that he had purposely boosted his
claim to bring the matter within the pecuniary jurisdiction of the State
Commission.
The complaint was returned by the State Commission for presentation in proper
District Forum with necessary correction.
69
CASE LAWS ON THE ACT.
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
70
CASE LAWS ON THE ACT.
EVIDENCE THROUGH AFFIDAVITS IS LEGAL & SUFFICIENT
EVIDENCE.
 Union of India Vs. Ramswaroop Chandil (1998)


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.
71
CASE LAWS ON THE ACT
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 to 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.
72
CASE LAWS ON THE ACT
NON-SPEAKING ORDER CAN BE SET ASIDE

In S.D.O. Telephone Vs. Rama Shankar Pandey (1997) the District
Forum, Hardoi, allowed the complaint and directed that the telephone bills of the
complainant be revised on the basis of average consumption and awarded Rs.
200/- compensation to the complainant. No reasons were given for such order.

The State Commission held that the order of the District Forum should be a
speaking one. It should give, however briefly, the essential facts and
material, considered by it as well as the reasons for the conclusion. Else the
order becomes arbitrary in the eyes of law.

The order of the District Forum was set aside and the case was sent back to the
District forum for re-consideration in accordance with law after notice to the
parties.
73
CASE LAWS ON THE ACT.
REMAND WHEN ORDER SIGNED BY
PRESIDENT ONLY
 In S. Ravisankar Vs. Aslo Steel Ltd., the order of the
District forum was signed only by the President of the
Forum. No other member had signed it.
 Section 14 requires that every order shall be
conducted/signed by the President and at least one
member. The present order was held to be invalid, and the
matter was remanded to the District Forum.
74
CASE LAWS ON THE ACT.
PRESIDENT SITTING SINGLY
 It has been held by the National Commission that the orders
passed by the President of the State Commission sitting
singly without the junction of any other member is contrary
to Section 14(2) of the Consumer Protection Act, 1986. Such
an order is invalid
(Raj kumar Mangla Vs. R.S. Singh (1995)
75
CASE LAWS ON THE ACT
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.
76
CASE LAWS ON THE ACT.
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.
77
CASE LAWS ON THE ACT.
DAMAGES
 In Patel Roadways Ltd. Vs. Birla Yahama Ltd. AIR 2000 the Supreme
Court has held that Consumer Forums have jurisdiction to entertain
complaints against carriers regarding loss of or damage to goods
entrusted to carrier for transportation.
 In Provident Fund Commissioner Vs. Shiv Kumar Joshi (2000) the
Supreme Court has held that an employee, who is a member of the
Employees’ Provident Fund Scheme, is a consumer and duties performed
by the Regional Provident Fund Commissioner under such scheme is
“service” and thus, in case of delay in release of provident fund,
complaint for deficiency in service, is maintainable.
78
Some decisions
1. British Airways told to pay Rs 90,000 for losing luggage
The South West District Consumer Disputes Redressal Forum, Delhi
The airline had opposed the claim for compensation saying their liability is
governed by the Hague Protocol and Warsaw Convention on Air carriages
and deficiency in service is not covered under these international laws.
The forum, however, rejected the airline's contention saying under the
Consumer Protection Act there is no provision which limits or restricts their
liability for deficiency in service.
2. NCDRC asks Emirate Airlines to pay Rs 2 lakh for baggage loss
The apex consumer commission today directed Emirate Airlines to pay Rs two
lakh to a doctor as compensation for losing one of his bags when he had
travelled to Greece in 1998 and damaging another on the return journey. The
National Consumer Disputes Redressal Commission (NCDRC) held the airline
negligent and deficient in service for failing to keep the luggage in safe custody
and deliver it to the passenger, while upholding a Delhi State Consumer
Commission order on the compensation.
It noted that when the doctor travelled by Emirate Airlines to Athens for a
conference one of his bags was misplaced, which has not been found till date,
and on the return journey his second bag was damaged.
79
3. Errant builder told to pay over Rs 50 lakh to flat applicant
A builder who failed to start a Greater Noida residential project on time has landed
in trouble as a consumer court here has directed him to pay compensation of Rs 3
lakh and refund the over Rs 49 lakh cost of a flat to a complainant.
Delhi Consumer Disputes Redressal Commission member Salma Noor and Member
(Judicial) VK Gupta held RS Builtwell and its director guilty of deficiency in service
and gave them time till April 30 to refund the entire cost of the 1,248.05 sq.ft. flat,
with interest, and compensation to complainant Arun Patwal, a resident of
Janakpuri in west Delhi.
4. SBI to pay Mumbai couple Rs 7L over cheque goof
The State Bank of India has been ordered to pay an Andheri-based doctor
coupleRs 7 lakh in compensation after the couple lost out on acquiring some bluechip shares because the bank failed to inform them that their chequefor about half
that amount had beendishonoured due to mismatched signatures. The couple also
proved to the Maharashtra State Consumer Disputes Redressal Commission, which
delivered the order on Saturday, that the signatures, in fact, were not mismatched.
"Because of the deficiency in service or negligence by the bank, the appellants
could not get shares and thereby legal injury is caused to the complainants and
they need to be compensated,"
Some Important Consumer Concerns
Misleading Advertisements
Misleading ads are one of the greatest banes of modern society, which
depends heavily on media for information as well as entertainment. It is
a matter of grave concern that there is no regulatory authority in India
to deal with Misleading advertisements and they continue duping
consumers in India without any check.
Advertising in USA is regulated by Federal Trade Commission, a United
States administrative agency since 1914. In the year 2011, they
imposed fine of $ 25 million (US Dollars) on Rebook for their shoe
brand claiming “Better legs and a better butt with every step.”
We also need a strong Regulatory Body in India to protect our 121
crore consumers from misleading ads!
We have to take up the campaign for a strong independent regulatory
body.
Don’t be fooled by misleading ads promising magical cure of chronic
ailments.
81
Colour of skin is determined by genetic factors.
Purchase decisions made on the basis of ads
only lighten the purse, not the colour of skin.
Don’t hesitate to
misleading ads.
raise
your
voice
against
Whenever you come across an ad which
appears to be misleading, write to Secretary
General, Advertising Standards Council of India
(ASCI), 219 Bombay Market, 78 Tardeo Road,
Mumbai 400034, with a cutting of the
advertisement. If this does not help, you can go
to Consumer Forum, set up in your district
under Consumer Protection Act.
82
Don’t be a victim of unethical medical
practices
In the path-breaking case of Indian Medical Association vs. V.P.
Shantha, (AIR 1996 SC 550), the Supreme Court has held that a
doctor can be held liable under Consumer Protection Act 1986 for
deficiency of service.
There have also been some landmark cases like that of US-based doctor
Kunal Saha, whose wife had died in 1998 due to negligence of some
doctors in Kolkata. West Bengal Medical Council had given a clean chit to
the doctors. However, after fighting for 12 long years, the National
Commission ordered compensation of Rs 1.73 crores during 2011.
In another case of Prashant S Dhananka, who was paralyzed waist
down after a surgeon damaged his spinal chord during an operation to
remove a tumour in the chest, damages worth Rs 1 crore were
awarded by the Supreme Court in May 2009.
Such cases, however, are far and few. Overall, the system is not able to
deliver justice to consumers and unethical practices continue to thrive.
83
Follow these tips and avoid the trap of unethical medical
practices
1. Always go to a registered medical practitioner. Medical Council
registration is vital to check
2. Always ask for a prescription
3. Always take full course of medicine
4. Always insist for a new disposable syringe and needle each time
you go for a blood test or blood donation or injection
5. Always go to a recognised/accredited laboratory for
investigations, if required
6. Always check the label on medicines for dates of manufacturing
and expiry.
7. Always ask for a receipt.
8. Never buy unpacked medicine.
9. Never pay more than printed MRP. It includes all taxes.
10. Never be misled by tall claims made in advertisements. Look for
scientific evidence.
If you are a victim of unethical medical practice, you should
immediately write to the State Medical council with full facts of
the case. You can also go to Consumer Forum.
84
Total Number of Consumer Complaints Filed / Disposed
since inception Under Consumer Protection Law
(Update on 06.03.2013)
Sl.
No.
1
Name of Agency
National
Commission
2 State Commissions
3 District Forums
TOTAL
Cases
Cases filed
% of
disposed Cases
since
total
Remarks
of since Pending
inception
Disposal
inception
80014
69253
10761
86.55%
600097
504834
95263
84.13%
3242324
2994256
248068
92.35%
3922435
3568343
354092
90.97%
85
Consumer Case (CC) to be filed at District
Forum
1. FEE FOR MAKING COMPLAINANT,IF REQUIRED (IN THE
NAME OF REGISTRAR,NCDRC,NEW DELHI)
2. COMPLAINT WITH AFFIDAVIT
3. SUPPORTING DOCUMENTS IN FAVOUR OF THE
COMPLAINT E.G. RECEIPT, VOUCHER ETC.
4. LIMITATIONS, IF ANY (2 YEARS FROM CAUSE OF
ACTION)
5. INDEX
86
First Appeal (FA) to State or National
Commission
1. MEMO OF APPEAL WITH AFFIDAVIT
2. STAY APPLICATION WITH AFFIDAVIT,IF REQUIRED
3. CERTIFEID COPY OF ORDER OF STATE COMMISSION
4. BANK DRAFTS(IN THE NAME OF REGISTRAR,NCDRC,NEW
DELHI)
5. LIMITATIONS, IF ANY(WITHIN 30 DAYS OF THE RECEIPT
OF THE ORDER )
6. ANY OTHER DOCUMENTS REQUIRED
7. MISCELLANEOUS APPLICATION WITH AFFIDAVIT
8. SUPPORTING DOCUMENTS IN FAVOUR OF MA
9. INDEX
87
Earlier measures, contained in numerous enactments, brought
little relief to consumers, in the absence of a unified and
effective enforcement agency. The Consumer Protection Act,
1986, has provided an effective organisational structure.
The law of consumer protection has substantially developed as a
result of successive reforms and a number of decisions handed
down by consumer tribunals and the Supreme Court.
Much depends on how the consumers organize themselves and
assert their rights and how effectively the consumer courts
function for achieving the avowed objective of delivering speedy
and in-expensive justice to consumers.
Consumer information and education programmes need to be
further strengthened, particularly in the rural areas, which
account for about 75 per cent of the total population.
88
NOTE ON CONSUMER PROTECTION ACT,
1986
•
•
•
•
•
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.
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.
89
Don’t suffer in silence…...
Raise your voice…..Always!
90
Highlights of the Consumer Protection (Amendment) Act,
2002 as notified on 15th March 2003
- In case of death of a consumer, his legal heir or representative
– a new sub-clause (1) under Section 2 of the Principal Act.
- Exclusion of a person who avails of such service for any
commercial purpose from the category of the consumer. However,
the “Commercial purpose” does not include use by a person of
goods bought and used by him and services availed by him
exclusively for the purpose of earning his livelihood by means of
self-employment.
- “Spurious goods and services” in the form of new clause (oo)
after clause (o) under Section 2 of the Principal Act.
- With a view to promote and protect within the district the rights
of the consumer laid down under the Principal Act “establishment
of the District Consumer Protection Council” under the
Chairmanship of the District Collector, insertion of new Sections
8A and 8B; is proposed.
91
- Qualifications including academic and also disqualifications
for members.
-Re-appointment of a member for another term of five years or up
to the age of sixty-five years, which ever is earlier.
- Substitution of new Section for Section 12 dealing with the
manner in which complaint shall be made.
-Provisions dealing with adjournment – “ no adjournment shall be
ordinarily granted”. Proviso to the new sub-clause (3A) under
Section 13 of the Principal Act.
-Power to make “interim order” new sub-clause (3B) of Section
13.
- Power to grant “punitive damages” new proviso to clause (d) of
Sub-Section (1) of Section 14.
- Power to issue “corrective advertisement” to neutralize the
effect of misleading advertisement at the cost of the opposite
party, new clause (nc) under Sub-Section (1) of Section 14.
92
- Benches of the State Commission may be constituted by the
President of the State Commission with one or more members.
-Insertion of new Section 17A authorising the State Commission,
on the application of the complainant or of its own motion, to
transfer any complaint pending before the District Forum to
another District Forum within the State in the interest of justice.
-Creation of benches of the National Commission.
- Power of the National Commission to review its own order, when
there is an error apparent on the face of record.
- Provision in regard to the execution of orders of the District
Forum, the State Commission or the National Commission.
-All offences under the Consumer Protection Act may be tried
summarily, notwithstanding anything contained in the code of
Criminal Procedure, 1973. The District Forum, the State
Commission or the National Commission shall have the power of a
Judicial Magistrate of the first class for the trial of offences.
- New Section 28-A dealing with the procedure for service of
93
notice.
National
Consumer
Commission
Disputes
Redressal
The Registry of the National Commission is at
the Ground Floor, Upbhokta Nyay Bhawan, 'F'
Block, GPO Complex, INA, New Delhi-110 023
which remains open on all working days.
For any enquiry with the Registry of the
National Commission, one can contact on
Telephone
Nos.
011-24608801,
24608802,
24608803, 24608804 and Fax No. 24651505.
The filing timings are from 10.00 a.m. to 4.30
p.m. Every matter filed with the Registry is
listed on the 7th day of its filing for admission
before the National Commission.
94
Delhi State Consumer Disputes Redressal
Commission
‘A’ Block, First Floor,
Vikas Bhawan, I.P. Estate,
NEW DELHI –110 002
Telephone nos. 011- 23370258, 23378644, 23378566
Email: statecommission@vsnl.net & del-sforum@nic.in
Website for other State Commissions’ addresses:
http://ncdrc.nic.in/sDetails.html
Website for District Forums’ addresses( whole country):
http://ncdrc.nic.in/districtforums.html
95
Consumer Helpline Numbers
JAGO GRAHAK JAGO!
Seek Guidance and Information on complaint redressal
Toll-free number
1800-11-4000
(between 9.30 to 5.30 Mon-Sat)
Normal Call Charges Applicable for other Users
011-27662955/56/57/58
Call National Consumer Helpline (NCH )
http://www.consumerhelpline.in
96
97
98
Topic: The Consumer Protection
Act, 1986 and How to use it
effectively
By:
Abdul Hafiz Gandhi,
Research Scholar, JNU.
Email: abdulhafizgandhi@gmail.com
Email: Charcha.foundation@gmail.com
www.facebook.com/abdulhafizgandhi
Mob.: 09953585693
4th May, 2013
4 to 6 pm
Organised by: Institute of Objective
Studies, Jamia Nagar, New Delhi.