Consumer Protection Act Jagdish

8/7/2019 Consumer Protection Act Jagdish

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The Consumer Protection Act, 1986 came into

effect from 15.04.1987 except chapter 3rd

(regarding Consumer Disputes Redress Agencies)which came into effect from 01.07.1987. The Act

was enacted to provide for better protection of

interests of consumers through establishment of

consumer councils and other authorities for thesettlement of consumers disputes.

The Consumer Protection Act, 1986


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Objectives OfThe Act

The Act, inter alia, seeks to promote and protect the rights

ofconsumers such as ------

1. Right to be protected against marketing ofgoods which

are hazardous to life and property;

2. Right to be informed about the quality, quantity,

potency, purity, standard and price ofgoods to protectthe consumer against unfair trade practices;

3. Right to be assured, wherever possible, access to variety

ofgoods at competitive prices;

4. Right to be heard and to be assured that customers

interests will receive due consideration at appropriateforums;

5. Right to seek redresses against unfair trade practices or

unscrupulous exploitation ofconsumers; and

6. Right to consumer education.


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The objects are sought to be promoted and protected by theConsumer Protection Councils to be established at the Central and

State levels.

The Act applies to all goods and services, except if otherwise

provided by the Central Government by Notification. To provide

speedy and simple redresses of consumer disputes, quasi-judicial

machinery is set up at the District, State and Central levels. The

three-tier system of quasi-judicial bodies will observe the

principles of natural justice and are empowered to give reliefs ofaspecific nature and to award, wherever appropriate, compensation

to consumers. Penalties for noncompliance of the orders given by

the quasi judicial bodies have also been provided.

Contd..


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Thus a thrive of the Consumer Protection Act is to serve the

interests of the consumers. Consumer education and redresses of

consumer grievances are the two aspects ofthe Act. It makes good

the loss a consumer suffers and increases the feeling of

responsibility of the manufacturer, trader, supplier or

businessman.

In the case of Lucknow Development Authority Vs M.K. Gupta the

Supreme Court held that the provisions of the Act have to be

construed in favor of the consumer to achieve the purpose of

enactment as it is social benefit oriented legislation. The primaryduty ofthe Court while construing the provisions ofsuch an Act is

to adopt a constructive approach, subject to that it should not do

violence to the language of the provisions and be not contrary to

attempted objective ofthe enactment.

Contd..


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Complaint means-any allegation in writing made by acomplainant with a view to obtaining any reliefprovided

by or under this Act. This allegation in writing must be

that-

Complainant means -a consumer; or any voluntary

consumer association registered under the Companies Act,1956 or under any other law for the time being in force; or the

Central Government or any State Government, who or which

makes a complaint; one or more consumers, where there are

numerous consumers having the same interest, who or which

makes a complaint, in case ofdeath ofa consumer, his legalheir or representative.

Contd..


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1) an unfair trade practice or a restrictive trade practice has been

adopted by any trader or service provider;

2) the goods bought by him or agreed to be bought by him suffer

from one or more defects;

3) the services hired or availed of or agreed to be hired or availed

of by him suffer from deficiency in any respect;4) a trader or the service provider as the case may be, has charged

for the goods or for the services mentioned in the complaint, a

price in excess ofthe 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;

Contd..


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5) goods which will be hazardous to life and safety whenused are being offered for sale to the public-

a. in contravention of any standards relating to safety of such

goods as required to be complied with, by or under any law

for the time being in force;

b. ifthe trader could have known with due diligence that thegoods so offered are unsafe to the public;

6) services which are hazardous or likely to be hazardous to

life and safety ofthe 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.

Contd..


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A Consumer is a person who

1. buys any goods for a consideration; or

hires or avails ofany service for a consideration;

2. uses the goods with the approval of the person whohas bought the goods for consideration;

3. is beneficiary ofservices with the approval ofthe

person who has hired the services for consideration.


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What is a Consumer Dispute?

On a complaint before the Consumers

Redresses Forums against a person, whodenies or disputes the allegations contained

in the complaint a consumer dispute arises.

Separate allegations may form separate

disputes requiring separate finding on each

dispute.


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Unfair Trade Practice:

Means a trade practices which, for the purpose of

promoting the sale, use or supply of any goods or

for the provision of any service, a trader adopts

any unfair method or deceptive practice. Unfair

trade practice is not only related to goods but also

to services rendered. Collecting service charges

during free guarantee period or collecting repair

and service charges but not repairing the goods

sold is unfair trade practice and deficiency of

service


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Restrictive Trade Practice

RTP is one which tends to bring about

manipulation of price or its 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.


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Deficiency means 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 aperson in pursuance of a contract or otherwise in relation to any

service..

Ex: Failure ofinsurance company to settle claim without sufficient

cause is deficiency.

Failure ofRailways to provide cushioned seats in 1st Class is

deficiency ofservice.

Deficiency:


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It means any fault, imperfection or shortcoming in the quality,

potency, purity or standard which is required to be maintained by

or under any law for the time being in force under any contract,

express or implied or as is claimed by the trader in any manner

whatsoever in relation to any goods;

Defect:


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Consumer Protection Councils

Sections 4 to 8 ofthe Act provide for establishment

and objectives ofConsumer Protection Councils.


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1) Central Consumer Protection Council:

The Central Government shall constitute Central Consumer

Protection Council to promote and protect the rights of the

consumers. The term of the council is three years. TheMinister in charge of Consumer Affairs in the Central

Government, who shall be the Chairman of the Central

Council and such number of other official or non-official

members representing such interests not exceeding 150.


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Objectives:

1. The right to be protected against the marketing ofgoods andservices which are hazardous to life and property;

2. The right to be informed about the quality, quantity, potency,

purity, standard and price ofgoods or services, as the case may

be so, as to protect the consumer against unfair trade practices;

3. The right to be assured, wherever possible, access to a variety

ofgoods and services at competitive prices;

4. The right to be heard and to be assured that the consumers

interests will receive due consideration will receive due

consideration at appropriate forums;5. The right to seek redressal against unfair trade practices or

restrictive trade practices or unscrupulous exploitation of

consumers; and

6. The right to consumer education.


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State Consumer Protection Council:

Each State Government shall establish a Council consist

of the Minister in charge of Consumer Affairs in the State

Government as its Chairman; such number of other

official or non-official members representing such

interests as may be prescribed by the State Government;and such number of other official or non-official

members, not exceeding ten, as may be nominated by the

Central Government.

The objectives ofevery State Council shall be the same as

the objects of the Central Council to promote and protect

within the State the rights ofthe consumers.

2) State Consumer Protection Council:


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3)The District Consumer Protection Council:

The State Government shall establish for every district, a

District Consumer Protection Council. It shall consist of the

Collector ofthe district, who shall be its Chairman; and such

number of other official and non-official membersrepresenting such interests as may be prescribed by the

State Government.

The objects ofevery district council shall be the same as the

objects ofthe Central Council to promote and protect within

the district the rights ofthe consumers.


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Consumer Dispute Redressal Agencies

Redressal Forums:

In order to carry out the purposes and objects of the Act, the following

agencies are established as Consumer Dispute Redressal Agencies.

(Sections 9 to 27).

1. District Forum: A Consumer Dispute forum is established in each

district of the State by the State Government by notification in the

official gazette for redressal of consumer disputes. The State

government may, if it deems fit, establish more than one district

forums in a particular district.

2. State Commission: The commission is established by the StateGovernment by notification in the official gazette for redressal of

consumer disputes.

3. National Commission: Such commission is established by the Central

Government by notification in the official gazette for redressal of

consumer disputes.


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A three tier system of Consumer Disputes

Redresses Agencies in the Districts, States and the

Centre is envisaged by Sec.9 of the Act. The

District Forum is at the base level. Next in

hierarchy is State Commission. Both District

Forums and State Commission are constituted in

each state. At National or Central level and at the

top of hierarchy is National Commission. The

object of setting up these Forums is to provide

inexpensive litigation without much of legal

technicalities and formalities.


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The functions ofthe Commissions are quasi judicial

in nature. Though it has powers of a Civil Court,strictly speaking it is not a civil court.

Final appeal from orders of National Commission

lies to Supreme Court.

Contd..


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District Forum

Each State Government shall establish in each district a Consumer

Redressal Forum, known as a District Forum. Each District Forum

shall consist of

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

District Judge shall be a President ofDistrict Forum

Member: A District Forum shall have two other members who

shall have the following qualifications, namely:


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a) Be not less than thirty five years ofage

b) Possess a bachelors degree from a recognized

university

c) Be persons ofability, integrity and standing and have

adequate knowledge and experience of atleast ten

years in dealing with problems relating to economic,

law, commerce, accountancy, industry, public affairsor administration. One of the two members shall be

a woman.


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Every appointment shall be made by the State

Government on the recommendation of a Selection

Committee consisting ofthe following namely:a) The President ofthe State Commission-Chairman

b) Secretary, Law Department ofthe State-Member

c) Secretary in charge of the department dealing with

consumer affairs in the State-Members.


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Jurisdiction: The District Forum shall have jurisdiction to entertaincomplaints where the value of goods and services and the

compensation, if any, claimed does not exceed Rs.20 lakhs. A

complaint shall be filed in district forum within the local limits of

whose jurisdiction the opposite party (i.e., the person who

answers complaint or claim) reside or carry on business or the

cause ofaction has arisen.

The complaint may be filed by any ofthe following:

a) The consumer concerned.

b) Any recognized consumer association,c) One or more consumers for the benefit ofall consumers

d) The Central or State Government

Powers:


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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 ofevidence on affidavits;

d) The requisitioning of the report of the concerned analysis or

test from the appropriate laboratory or from any other relevant

source;e) Issuing of any commission for the examination of any witness;

and

f) Any other matter which may be prescribed.


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State Commission

Each State Commission shall consist ofa person who is or has

been a judge of a High Court, appointed by the State

Government, who shall be its President: However, no

appointment under this Clause shall be made except after

consultation with ChiefJustice ofthe High Court.

Not less than two and not more than such number of

members as may be prescribed, one of whom shall be a

woman, who shall have the following qualifications namely:-


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a) Be not less than 35 years ofage,

b) Possess a bachelors degree from a recognized university;

and

c) Be person of ability, integrity and standing and haveadequate knowledge and experience of at least 10 years in

dealing with problems relating to economics, law,

commerce, accountancy, industry, public affairs or

administration.

However not more than 50 percent of the members shall be

from amongst persons having a judicial background.


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Jurisdiction:

The State Commission shall have the jurisdiction:

To entertain:

1) To entertain:

a) Complaints where the value of the goods or services and

compensation, ifany, claimed exceeds rupees 20 lakhs but doesnot exceed rupees one crore; and

b) Appeals against the orders of any District Forum within the

state, and


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2) To call for the records and pass appropriate orders in

any consumer dispute which is pending before or has

been decided by any District Forum within the state,

where it appears to the State Commission that suchDistrict Forum has exercised a jurisdiction not vested

in it by law, or has failed to exercise a jurisdiction

illegally or with material irregularity.


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National Commission

The National Commission shall consist of-

a) A person who is or has been a judge ofthe Supreme Court,

to be appointed by the Central Government, who shall beits President. However, no appointment under this Clause

shall be made except after consultation with the Chief

Justice ofIndia:


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b) Not less than four and not more than such number of

members, as may be prescribed and one whom shall be a

woman who shall have the following qualifications,

namely:-

a) Be not less than 35 years ofage;

b) Possess a bachelors degree from a recognized

university; and

c) Be persons of ability, integrity and standing and have

adequate knowledge and experience of at least 10years in dealing with problems relating to economics,

law, commerce, accountancy, industry, public affairs or

administration.


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However, not more than 50% of the members shall

be from amongst the persons having a judicial

background.

Judicial background means persons having

knowledge and experience for at least a period of10

years as a presiding officer at the district level court

or any tribunal at equivalent level;


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Every appointment referred to above shall be made

by the Central Government on therecommendation of a selection committee

consisting ofthe following namely-

A person who is a judge of the Supreme Court to be

nominated by the ChiefJustice ofIndiaChairman

The Secretary in the Department of Legal Affairs in the

Government ofIndia.Member

Secretary of the Department dealing with Consumer

affairs in the Government ofIndia.MemberThe jurisdiction, powers and authority of National

Commission may be exercised by Benches thereof.

A Bench may be constituted by the President with one

or more members as the President may deem fit.


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Jurisdiction:

A. To entertain(i) complaints where the value of the goods or services and

compensation, ifany, claimed exceeds one crore and

(ii) appeals against the orders ofany State Commission; and

B. To call for the records and pass appropriate orders in any

consumer dispute which is pending before or has been

decided by any State Commission where it appears to the

National Commission that such State Commission

(i) has exercised a jurisdiction not vested in it by law, or(ii) has failed to exercise a jurisdiction so vested, or

(iii) has acted in the exercise of its jurisdiction illegally or with

material irregularity.


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Every order ofa District Forum, the State Commission or

the National Commission shall, if no appeal has been

preferred against such order under the provisions ofthis

Act, be final.

Consumer Protection Act Jagdish

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