Consumer Protection Act 1986 E

8/2/2019 Consumer Protection Act 1986 E

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Consumer Protection Act, 1986

Presenting By

MANJU NIKUMARNAYAKa


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INTRODUCTION

In spite of various provisions providing protectionto the consumer and providing action against

adulterated and sub-standard articles in the

different enactments like Code of Civil Procedure,

1908, the Indian Contract Act, 1872, the Sale of

Goods Act, 1930, the Indian Penal Code, 1860, theStandards of Weights and Measures Act,1976 and

the Motor Vehicles Act, 1988, very little could be

achieved in the field of Consumer Protection.

In order to provide for better protection of the

interests of the consumer the Consumer Protection

Bill, .1986 was introduced in the LokSabha on 5th

December, 1986.


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Consumer Protection Act, 1986

The Consumer Protection Act 1986 is a social welfare legislation

which was enacted as a result of widespread consumer protectionmovement. The main object of the legislature in the enactment of this

act is to provide for the better protection of the interests of the

consumer and to make provisions for establishment of consumer

councils and other authorities for settlement of consumer disputes and

matter therewith connected.

In order to promote and protect the rights and interests of consumers,

quasi judicial machinery is sought to be set up at district, state and

central levels.

The main object of these bodies is to provide speedy and simple

redressal to consumer disputes. It is one of the benevolent pieces of

legislation intended to protect the consumers at large from

exploitation.


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Objectives To provide for better protection of interests of consumers.

To protect the rights of the consumers such as:-

1. The right to be given protection against marketing of goods which

are hazardous, dangerous to life and property.

2. The right to get correct information on the quality, quantity, purity,standard and price of various goods. That is to protect the

consumer from unfair trade practices.

3. The right to be able to make choice from a variety of products, at

competitive prices.

4. The right to seek redressal against unfair trade practices or

exploitation.

5. The right to consumer education.


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Cont..

In order to meet the aforesaid objective, to

provide for the establishment of consumer

councils and other authorities.

To empower the consumer councils and

other authorities to settle consumers

disputes and matters connected therewith.


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Applicability

The act in terms of geographical

applications extends to the whole of India

except the state of Jammu and Kashmir

[U/S 1(2)].

Further it applies to all goods and

services, unless otherwise expressly

notified by the central government [1(4)].


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Consumer [section 2(1)(d)]

A person who buys any goods for a consideration which hasbeen paid or promised or partly paid and partly promised or

under any system of deferred payment i.e. in respect of hire

purchase transaction.

A person who hires or avails of any services for

consideration which has been paid or promised or partly

paid and partly promised, or under any system of deferredpayment.


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Rights of consumers

1. Right to safety.

The consumer has a right to be protected against marketing

of goods which has hazardous to life and property of the

consumers.2. Right to consumer education

The right to consumer education is an important right available to the

consumers. Information about product in the market and for the

proper functioning of the legal system. It is necessary that the

knowledge of the availability of a legal remedies should be so

widely explained.


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Rights of consumers

3.Right to seek redressal:-

The consumer has been given the right to seek redressalagainst unfair trade practices or their unscrupulous

exploitation. The consumer should have some means of

redress when goods fail to live up to their promise or indeed

cause injury.

4.Right to be heard:-

The right to be heard also includes the right to be assured that

the consumer interest will receive due consideration at

appropriate forums.


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District forum (sec. 9 to 15)

5.Right to choose:-

The right to means the right to be assured. Whereverpossible, access to variety of goods and services at

competitive prices. Fair and effective must be encouraged in

order to provide consumers with the greatest range of choice

among products and services at the lowest price.

6.Right to be information:-

The right to be informed about the quality, quantity,

potency, purity, standard and price of goods or services, as

the case may be, so to protect the consumer against unfair

trade practices.

C di t d l i


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Consumer disputes redressal agencies

[sec.9]1. A consumer disputes redressal forum to be the district forum. This

is to be established by the state govt. in each district of the state bymeans of a notification. More than one can also be established in a

single district.

2. A consumer disputes redressal commission to be known as the

state commission. This has also to be established by the govt. inthe state by means of a notification.

3. A national consumer disputes redressal commission to be

established by the central govt. by means of a notification.

The act thus envisages a hierarchy of three redressal forums:-

1. District forum(Less than Rs. 20 Lacs).

2. State forum (Between Rs. 20 Lacs-1 Crore).

3. National forum (More than Rs. 1 Crore) .


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District forum (sec. 9 to 15)

District consumer forum is the 1st and lowest court to be established

under consumer protection act.

State govt. will establish a district forum, in each district. If state

govt. thinks fit, more than one forum can also be established in one

district.

Each district forum shall have one president and two members, one

of whom shall be a women.

The president will be the person who is or has been qualified to be a

district judge.

Every member of the forum shall hold office for a term of 5yrs or up

to the age of 65yrs whichever is earlier.


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Cont.

District forum dispose a complaint generally within 3months of thereceipt of notice by opposite party (within 5months if it requires

analysis or testing of commodities by a laboratory).

Any person aggrieved by the order made by the district forum mayappeal to state commission within 30days from the date of order.

District forum shall refer a copy of complaint to the opposite party.

District forum shall entertain the complaint up to the value of Rs20

lakhs.


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Cont.

Appeal[sec.15]

Any person aggrieved by an order made by the District

Forum may prefer an appeal against such order to the StateCommission within a period of thirty days from the date of

the order, in such form and manner as may be prescribed:

Provided that the State commission may entertain an

appeal after the expiry of the said period of thirty days If it

is satisfied that there was sufficient cause for not filing it

within that period.


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Cont.Jurisdiction:-(Sec.11)

i. Subject to the other provisions of this Act, the

District Forum shall have jurisdiction to entertain

complaints where the value of the goods or

services and the compensation, if any, claimed 2[does not exceed rupees twenty lakhs].

ii. A complaint shall be instituted in a District Forum

within the local limits of whose jurisdiction:-

the opposite party or each of the opposite parties,where there are more than one, at the time of the

institution of the complaint, actually and voluntarily

resides or 2[carries on business or has a branch

office or] personally works for gain.


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Cont.

Any of the opposite parties, where there are more

than one, at the time of the institution of the

complaint, actually and voluntarily resides, or

2[carries on business or has a branch office], or

personally works for gain, provided that in such case

either the permission of the District Forum is given,or the opposite parties who do not reside, or 2[ carry

on business or have a branch office], or personally

work for gain, as the case may be, acquiesce in such

institution; or

The cause of action, wholly or in part, arises.


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State Commission (Sec. 9 and 16 to 19)

State commission is the higher court after district consumer forum.

State govt. shall establish state commission.

State commission shall have one president and at least two

members, one of whom shall be a women.

The president of state commission shall be the person who is or has

been the judge of a high court.

State commission shall entertain complaints where the value of claim

exceeds Rs20 lakhs but does not exceeds Rs1 crore. Besides, it shall

entertain appeals against the order of any district forum within the

state also.


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Cont.

State commission shall decide a complaint within 3months from the

receipt of notice by opposite party.

Any person aggrieved by an order of state commission may prefer an

appeal to national commission within 30days from the date of order.

State commission shall refer a copy of complaint to the opposite party

and sample of goods to the laboratory.

Every member of state commission shall hold office for a term of

5yrs or up to the age of 67yrs, whichever is earlier.


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Cont.

Appeals:-[sec.(19)]i. An aggrieved person of state commission can appeal to the national

commission.

ii. 30days period from the order of the state commission is allowed for

carrying the matter before the national commission.

iii. A late appeal may also be entertained provided that the commission

is satisfied that there was a sufficient cause for not preferring an

appeal within the prescribed period.


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Cont.

Jurisdiction:- [sec.(17)]i. To entertain complaint where the value of the goods or services and

compensation, if any, claimed exceeds RS5 lakhs but does not

exceeds RS 20 lakhs.

ii. To entertain appeals against the order of any district forum within the

state.

iii. 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.


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National commission (sec. 9 and 20 to 23)

National commission is the highest court established under

consumer protection act.

Central govt. shall establish a national commission.

National commission shall have one president and at least four

members, one shall be a women.

President of national commission shall be a person who is or has

been a judge of supreme court.

Every member of national commission shall hold office for a term

of 5yrs or up to the age of 70yrs, whichever is earlier.


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Cont.

National commission shall entertain complaint where the

value of claim exceeds Rs1 crore.

National commission enjoys all power which are enjoyedby a civil court.

Any person aggrieved by the order made by nationalcommission may prefer an appeal to supreme court

within 30days from the date of order.


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Cont.

Appeals:- [sec.(23)]

The working procedure is the same as that of the

Forum U/S [13(4)], (5) and (6) and for the rest it

has been prescribed by the central govt.

The national commission has the power to issue

an order to the opposite party directing him to do

any 1 or more of the things referred to

sec.14(1)(a) to(i).


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Cont.

Jurisdiction:- [sec.(21)]

i. The national commission is to entertain

complaints where the value of the goods or

services and compensation claimed exceeds RS20

lakhs.

ii. The appellate jurisdiction is to entertain appealsagainst orders of any of the state commission.


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Complaint

Section 2(1)(c) of the consumer protection act, 1986

defines the term complaint to mean any allegationin writing made by a complainant that:

A. Any unfair or restrictive trade practice has been

adopted by the trader;

B. The goods bought by him or agreed to be bought byhim suffer from one or more defects;

C. The services hired or availed of or agreed to be hired

or availed of by him suffer from some deficiency in

any respect;D. The trader has charged for the goods a price higher

than the price fixed or displayed on the goods or the

package containing them or under any law for the

time being in force;


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Cont.E. Goods which will be hazardous to life and safety

when used, are being offered for sale to the public in

contravention of the provision 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.

F. When the price of any article is not fixed by any lawor displayed on the goods or the package containing

them, the act does not contemplate any complaint

being instituted in respect of the price charged on

the ground that such price is excessive

R li f il bl i t l i t [S ti 14


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Relief available against complaint [Sections 14

and 22](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;

(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 and to withdraw the

hazardous goods from being offered for sale.


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REQUISTIES OF A COMPLAINT

Who can file a complaint

How to file a complaint

Where to file a complaint

What constitutes a complaint?

Procedure for filing the appeal.


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Who can file a complaint? (section 12)

1.The consumer to whom such goods are sold or delivered or agreed tobe sold or such service provided or agreed to be provided ,

The expression consumer means:

A person who buy any goods or hires, avails of any services for aconsideration. Its, however, not necessary that the consideration

must have been paid. the person shall still be regarded as a consumer

where either the whole consideration is promised to be paid in future

or it has been partly and balance is promised to be paid in future. theterm also includes:

a buyer under any system of deferred payments

Any other user of goods or services provided such use is made with

the approval of the buyer.


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Cont.

2.Any recognized consumer association, namely, voluntary consumerassociation registered under the company act 1956 or any other law

for the time being in force. It is not necessary that the consumer is a

member of such association .

3.One or more consumers were there are numerous consumer having

the same interest, with the permission ofthe district forum, on behalf

of, or for the benefit of, all consumers so interested.

4.The central or the state government as the case may be, either its

individual capacity or as representative of interests of the consumers

in general.


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How to file a Complaint?

The complainant or his authorized

agent can present the complaint in

person.

The complaint can also be sent by post

to the appropriate Forum/

Commission. The complaint should beaddressed to the president of the

Forum/Commission.


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Where to file a complaint?

1. If the value of the goods or services and the

compensation, if any, claimed does not

exceed rupees twenty lakhs, than the

complaint can be filed in the District Forumwithin the local limits of whose jurisdiction

the opposite party actually resides or carries

on business or has a branch office or

personally works for gain or were the cause

of action, wholly or in part, arises

(section 11).


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Cont2. If the value of goods or services and

compensation, if any, claimed exceeds rupeestwenty lakhs but dose not exceeds rupees 1cr,

the complaint can be filed before the state

commission (section 17).

3. If the value of goods or services and

compensation, if any, claimed exceeds rupees

1cr, the complaint can be filed before thenational commition (section 21)


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What constitutes a complaint?

The complaint should contain the following

information :-a) The name, description, and address of the complainant.

b) The name, description and address of the opposite party or parties,

as the case may be, as far as they can ascertained.

c) The facts relating to complaints and when and where it arose;

d) Document if any, in support of the allegations contained in the

complaint;

e) The relief which the complainant is seeking.f) The complaint should be signed by the complainant or his

authorized agent. Minimum four copies of the complaint should be

filed.

ESSENTIAL INFORMATION IN THE


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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


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Procedure on receipt of complaint (sec 13)

1. Procedure in respect of goods where the defect alleged requires no

testing or analysis.

a) Refer a copy of the admitted complaint within 21 days from the

date of its admission of the opposite party mentioned in the

complaint directing him to give his version of the case within aperiod of 30 days or such extended period not exceeding 15 days,

as may be granted by the District Forum.

b) Where the opposite party, on admission of a complaint referred tohim under (a) above, denies or disputes the allegations contained

in the complaint, or omits or fails to take any action to represent

his case within the time given by the District Forum, the District

Forum shall proceed to settle the consumer disputes in the manner

specified in the clause(C) to (G) hereunder.


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Cont.

2. Procedure in respect of goods where the defect alleged requires

analysis or testing.

a) Where a complainant alleges a defect in the goods which cannot

be determined without proper analysis or test of the goods, the

district forum shall obtain a sample of the goods from thecomplainant, seal it and authenticate it in the manner prescribed. It

shall then refer the sample to sealed the appropriate laboratory

along with a direction that such laboratory make an analysis or

test, whichever may be necessary, with a view to finding out

whether such goods suffer from any defect alleged in thecomplaint or from any other defect and to report its findings

thereof to the district forum within a period of 45 days of the

receipt of the reference or within such extended period as may be

granted by the District Forum ( Clause C).


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Cont.

b. Before any sample of goods is referred to any appropriate laboratoryunder clause (C), the District Forum may require the complaint to

deposit to the credit of the forum such fees as may be specified, for

payment to the appropriate laboratory for carrying out the necessary

analysis or test in relation to the goods in question clause ( D).

c. The district forum shall remit the amount deposited to its credit under

clause(d) to the appropriate laboratory to enable it carry out the

analysis or test as aforesaid .on receipt of the report from the

appropriate laboratory, the district forum shall forward a copy of the

report along with such remarks as the District Forum may feel

appropriate to the opposite party[Clause (e)]


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Cont.

d. If any of the other parties disputes the correctness of the findings ofthe appropriate laboratory, or disputes the correctness of the method

of analysis or test adopted appropriate laboratory, the District Forum

shall require the opposite party or the complainant to submit in

writing his objections in regard to the report made by the appropriate

laboratory[Clause (f)].

e. The district Forum shall thereafter give a reasonable opportunity to

the complainant as well as the opposite party of being heard as to the

correctness or otherwise of the report made by the appropriate

laboratory and also as to the objection made in relation thereto under

clause (f) and issue and appropriate order under s.14 [Clause (g)].


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Cont.

3) If the complaint relates to goods in respect of which the aforesaidprocedure cannot be followed or if the complaint relates to any

services the District Forum shall after following the procedure in

clause (a) and (b) of sub section (1) of s.13 (noted above) proceed to

settle consumer dispute :

I. On the basis of evidence brought to its notice by the complainant and

the opposite party derives or disputes the allegations contained in the

complaint.

II. Ex parte on the basis of evidence brought to its notice by the

complainant where the opposite party omits or fails to take any

action to represent his case within the time given by the Forum.


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Cont.

4) Where the complainant fails to appear on the date of hearing beforethe District Forum, the District Forum may either dismiss the

complaint for default or decide it on merits.

5) No proceedings complying with the procedure as aforesaid shall becalled in question in any court on the ground that the principles of

natural justice have not been complied with.

6) Every complaint shall be heard as expeditiously as possible andendeavor shall be made to decide the complaint within a period of 3

months from the date of received of notice by opposite party where

the complaint does not required analysis or testing of commodity and

within 5 months if it so requires.


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Thank You

Consumer Protection Act 1986 E

Documents

Transcript of Consumer Protection Act 1986 E