CONSUMER PROTECTION ACT, 1986

Procedure and application

Introduction

Before the enactment of the consumer Protection Act,1986 a person aggrieved by the defective goods or deficiency in service had to approach the ordinary civil court to get his grievances redressed

The proceeding in the ordinary civil court is very complex , expensive and time consuming . In Order to give more protection to the interest of consumers of goods and service the parliament enacted the consumer Protection Act 1986.

Contd.

The law relating to consumer protection is contained in the Consumer Protection Act , 1986. The Consumer Protection Act-1986 & enforced from 10 th June 1987 in India Aimed at providing simple, quick, and cheaper protection of consumers interest.

Aims of the Consumer Protection Act

Aims of Consumer Protection Act 1986 (Confer more protection and speedy remedy to consumers of goods and services)

• Establishment of “Consumer Disputes Redressal Forum” (District forum)

• Establishment of “Consumer Disputes Redressal commission” (State commission)

• Establishment of National Consumer Disputes Redressal Commission” (National commission)

• Establishment of a “ Central Consumer Protection Council ” for promoting and protecting the rights of the consumers.

Who is a ‘Consumer’ ?

Consumer of Goods • A person who has purchased goods for a

consideration.• The consideration may be paid or

promised to pay or partly paid or partly promised.

• A person who has purchased goods under a system of deferred payment is also a consumer.

Contd.

Consumer of Service • A person who has hired or availed of any

service for consideration.• Consideration may be paid or promised

to pay or partly paid. • A person who has hired or availed of any

service under system of deferred payment.

Objective of the Act

Better protection of interests of consumers Protection of rights of consumers.

Right to be protected against marketing of goods or services which are hazardous to life and property.

To be informed about the quality, quantity, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices.

Contd.

The right to be assured, where ever possible, access to goods and services at competitive prices.

The right to be heard and to be assured that consumers interest will receive due consideration at appropriate forums.

The right to seek redresses against unfair trade practices or exploitation of consumers.

Scope of the Act

The Act applies to whole India except Jammu & Kashmir. Every State has its own set of rules.

It is divided in 4 chapters & 31 sections. Applies to all type of goods and services,

public utilities & public sector undertakings.

All types of complains relating to goods, unfair trade practice.

A suit pending in civil court cannot be heard in consumer court. (No parallel litigation)

Who can file a complaint?

The consumer to whom the goods are sold or delivered, or agreed to be sold are delivered , or the service has been provided, or agreed to be provided

Any recognized consumer association, regardless of whether the consumer is a member of such association or not. (e.g. class action suit)

Contd.

One or more consumer , where there are numerous consumer having the same interest with permission of the district forum on behalf of or for the benefit of all consumer so interested.

The state or central govt . either its individual capacity or as a representative of the interest of the consumer in general.

Consumer dispute redressal agencies

Under Section 9 of the Act consumer can file a complaint before the District forum.

District forum is headed by District judge, he has jurisdiction over the district.

State Commission is headed by Judge of High Court, he has jurisdiction over the whole State.

National Commission is headed by Chief Justice of India, he has jurisdiction over the entire Nation.

Where to file the complaint?

In District Forum if the cost of goods or services and compensation asked for is up to Rs. 20 Lakhs and cause of action arose there or where the Opposite Party resides or runs their business or has a branch office;

In State Commission if the cost of goods or services and compensation asked for is more than Rs. 20 Lakhs and less than Rs. 1 Crore and cause of action arose there or where the Opposite Party resides or runs their business or has a branch office;

Contd.

In National Commission of the cost of goods or services and compensation is more than Rs. 1 Crore and cause of action arose there or where the Opposite Party resides or runs their business or has a branch office.

Procedure to file a complaint

Send a notice to the Opposite Party giving him time limit to settle your grievance.

Prepare the consumer complaint in the required format Get the complaint affidavit notarized through a notary. Make required number of photocopies after notarizing.

[4+ no. of Opposite Parties] Prepare a bank draft from a nationalized bank to pay

court fee. Submit the complaint and court fee to the receiving

clerk in the consumer court who will give you the date for admission hearing and complaint reference number

Contd.

On admission hearing, you would be informed whether your case is fit for acceptance or not. If accepted, you will be given the date for next hearing.

The court will send a notice with your complaint copy to the opposite party seeking reply within 30 days, and asking him to attend the hearing.

Where complaint alleges a defect in the goods which cannot be determined without proper analysis, the forum/commission shall send it to the laboratory to find out whether there is any defect in it or not?

Contd.

The hearings will continue till the matter is decided.

The proceedings ideally should be decided in 90 days.

The courts final order will be sent to all the parties by registered post.

[Please note: It is important to attend the hearings, else the matter may be decided ex-party on the merits of the case.]

Appeals

If you are not satisfied with the judgement from the District consumer forum, you can appeal to the State and then to the National commission within 30 days of receiving the order. In short from:

- District Forum to State Commission- State Commission to National

Commission- National Commission to Supreme

Court

Limitation Period

Section 24A of the Act provides that a consumer dispute can be filed within 2 years from the date on which the cause of action arises.

Appeals are required to be filed within 30 days from the date of receipt of the court’s order.

Fee structure to file complaint

Fee for District Forum: - Up to Rs. 1 Lakh = Rs. 100/-

- Above Rs. 1 Lakh but less than Rs. 5 Lakh = Rs. 200/-- Above Rs. 5 Lakh but less than Rs. 10 Lakh = Rs. 400/-- Above Rs. 10 Lakh but less than Rs. 20 Lakh = Rs. 500/-

Contd.S.No. Total Value Of Goods Or Services And The

Compensation ClaimedAmount Of Fee Payable

(1) (2) (3)

District Forum

1. Upto One Lakh Rupees – For Complainants Who Are Under The Below Poverty Line Holding Antyodaya Anna Yojna Cards

Nil

2. Upto One Lakh Rupees – For Complainants Other Than Antyodaya Anna Yojna Card Holders

Rs.100

3. Above One Lakh And Upto Five Lakh Rupees Rs.200

4. Above Five Lakhs And Upto Ten Lakh Rupees Rs.400

5. Above Ten Lakhs And Upto Twenty Lakh Rupees Rs.500

State Commission

6. Above Twenty Lakh And Upto Fifty Lakh Rupees Rs.2000

7. Above Fifty Lakh And Upto One Crore Rupees Rs.4000

National Commission

8. Above One Crore Rupees Rs.5000

Relief available to consumer

Replacement of defective goods Refund of price paid for defective

good/services Removal of deficiency in service Refund of extra money charge Withdrawal of goods hazardous to life Compensation for the loss due to

negligence of opposite party.

Penalties

If trader fails to follow the order passed by the forum then he shall be punishable with imprisonment for a term from 1 month up to 3 years or with fine from Rs. 2000/- up to Rs. 10,000/- or with both.