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2. CONSUMER PROTECTION ACT, 1986( With amendments of the Act effected from 15.3.2003 and rules from 5.3.2004)2 3. CONSUMER PROTECTIONACT, 1986 Enacted to provide for the better protectionof the interest of consumer Act applies to whole of India except Jammuand Kashmir Chapter I, II and IV came into force on15.4.1987. Chapter III came into force on1.7.1987 The act was amended in 2002 and theamendments came into force w.e.f. 15thMarch 2003. 3 4. WHAT IS A COMPLAINT?Complaint means any allegation inwriting made my 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;4 5. WHAT IS A COMPLAINT?IV. A trader or service provider as the case maybe has charged for the goods or for theservices mentioned in the complaint, a pricein excess of the price a) fixed by or under any law for the time beingin force; b) displayed on the goods or any packagecontaining such goods; c) displayed on the price list exhibited by himby or under any law for the time being inforce; d) agreed between the parties .5 6. WHAT IS A COMPLAINT?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;6 7. WHAT IS A COMPLAINT?VI. Service which are hazardous or likely tbe hazardous to the life and safety ofthe public when used, are beingoffered by the service provider whichsuch person could have known withdue diligence to be injurious to life andsafety.7 8. WHO IS A CONSUMER ? Any person who buys goods oravails services for consideration Consideration may be fully paid,partially paid or fully promised to bepaid or partially promised to be paid Any body who uses the goods orservices with the consent of theconsumer 8 9. WHO IS A CONSUMER ? Legal heir of consumer in case death ofconsumer Does not include any person who buysgoods for resale or commercial purposeand services for commercial purpose However any person who buys goods forcommercial use but exclusively for hislivelihood by means of self employmentis a consumer.9 10. WHAT IS A DEFECT ? Fault In the Imperfection Quality Shortcoming Quantity Potency Purity Or StandardsWhich is required to be maintained by orunder any law for the time being in force10 11. WHAT IS A DEFICIENCY ? Fault In the Imperfection Quality ShortcomingOr Standard and Inadequacy Manner of performanceWhich is required to be maintained by orunder any law for the time being in force11 12. WHAT IS A SERVICE?Service means service of any description, which ismade available to potential users and includes, but notlimited to the provisions of the facilities in connectionwith1) banking 2) financing 3) insurance 4) transport5) processing 6) supply of electrical or other energy7) boarding or lodging or both 8) house construction9) entertainment 10) amusement or11) the purveying or new or other informationBut does not include the rendering of any service free of charge or under a contract of personal service 12 13. CONSUMER DISPUTE REDRESSAL AGENCIES1) 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. 13 14. JURISDICTIONForum / Commission Where the value of the goods or services and the compensation, if any claimed,District Forum Does not exceed Rs. 20 lakhsState Commission Rs. 20 lakhs and above but not exceeding One CroreNational Commission Above One CroreBesides, State and National Commission have appellatejurisdiction also.14 15. FILING OF COMPLAINTS A complaint may be filed bya) The consumer to whom the goods are sold or services are providedb) Any recognised consumer associationc) One or more consumers with same interestd) The central government or state government15 16. FILING OF COMPLAINTSThe Fee for filing the Complaint for the district forum is as underSr. Value of Goods / Service and CompensationAmountNo.of Fees1)Upto Rs. 1 lakh rupees Rs. 1002)Rs. 1 Lakh and above but less than Rs.5 lakhsRs. 2003)Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 4004)Rs. 10 lakhs and above but less than Rs. 20 lakhsThe fees shall be paid by Cross demand Draft drawn on a nationalizedbank or through crossed Indian postal order drawn in favour of theRegistrar of the Sate Commission and payable at the place of the StateCommission (w.e.f. 5.3.2004.) 16 17. 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 affidavitd) 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.17 18. RELIEF TO THE COMPLAINANT ? IF THE COMPLAINT IS PROVED THE FORUM SHALLORDERa) 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.18 19. RELIEF TO THE COMPLAINANT ?f)to discontinue the unfair trade practice or the restrictivetrade practice or not to repeat them;g)not to offer hazardous goods for sale;h)to withdraw the hazardous goods from being offered forsale;ha) to cease manufacture of hazardous goods and to desist fromoffering services which are hazardous in nature;hb) to pay such sum as may be determined by it, if it is of theopinion that loss or injury has been suffered by a largenumber of consumers who are not identifiable conveniently.hc) to issue corrective advertisements to neutralize the effect ofmisleading advertisement at the cost of the opposite partyresponsible for issuing such misleading advertisement;i)To provide for adequate cost to parties. 19 20. APPEAL shall be filed within thirty days. Delay in filing appeal may becondoned if there is sufficient cause. 20 21. LIMITATION PERIODWithin two years from the date onwhich the cause of action has arisen.21 22. DISMISSAL OF FRIVOLOUS OR VEXATIOUS COMPLAINTS Where a complaint instituted before theDistrict Forum, the State Commission orthe National Commission, is found to befrivolous or vexatious, it shall, for reasonsto be recorded in writing, dismiss thecomplaint and make an order that thecomplainant shall pay to the oppositeparty such Cost, not exceeding tenthousand rupees, as may specified in theorder. 22 23. PENALTIESWhere a trader or a person against whom acomplaint is made (or the complainant) fails oromits to comply with any order made by theDistrict Forum, the State Commission or theNational Commission, such trader or person (orcomplainant)shall bepunishable withimprisonment for a term which shall not be lessthan one month but which may extend to threeyears or with fine which shall not be less thantwo thousand rupees but which may extend toten thousand rupees, or with both. 23 24. NOTE ON CONSUMERPROTECTION ACT, 1986 A person may be consumer of goods, or services. When Ipurchase a fan, a gas stove or a refrigerator, I could be theconsumer of goods. When I open a bank account, take an insurance policy, get mycar repaired, I could be the consumer of services. The consumer protection Act, 1986 tries to help a consumerwhen for example, the goods purchased are defective or theservices rendered to him are subject to so deficiency. Prior to the consumer Protection Act, 1986 for any consumercomplaint one had to go to an ordinary Civil Court. He had toengage a lawyer, pay the necessary fee, and be harassed foryears or decades before any outcome, positive or negative, wasthere in that litigation. Under the Consumer Protection Act, no Court fee has to be paidand the decision on the complaint is much quicker, as the Courtcan evolve a summary procedure in disposing off the complaint.24 25. 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/-. Itwas held that the matter was not within the jurisdiction of theState Commission and such a claim was rejected by the StateCommission. The Complainant could seek the remedy from theDistrict Forum. Therefore, jurisdiction, which is vested in adistrict Forum cannot be created for State Commission by merelyexaggeration of a claim. In B. Raghunath Vs Trans India Tourism (1996) thecomplainant had suffered a loss of Rs. 5,000/-, according to hisown statement. He claimed compensation of Rs. 5,00,000. Itwas evident that he had purposely boosted his claim to bring thematter within the pecuniary jurisdiction of the State Commission.The complaint was returned bt the State Commission forpresentation in proper District Forum with necessary correction.25 26. CASE LAWS ON THE ACT.NO ACTION WHERE NO TERRITORIAL JURISDICTIONIn J. K. Synthethetics Vs. Smt. Anita Bhargava (1993)the registered office of the Opp