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Business Law

Consumer

Protection

Act 1986

Group No: 1& 6

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Declaration

I _______________ Kasturi Save hereby certify that the students of St. Andrew’s College F.Y.B.B.I. Semester II have completed a project on “Consumer Protection Act 1986” for the subject “Business Law” for the academic year 2009-10.

The information submitted is true to the best of the students’ knowledge.

Roll.No.

Name Signature

5001 Shereen Alphonso

5007 Adrian D’Costa

5014 Leon D’Silva

5019 Reece D’Souza

5020 Vipeen Farel

5021 Anthony Fernandes

5022 Connie Fernandes

5023 Rosetta Fernandes

5025 Allwyn Gonsalves

5026 Karen Gonsalves

5034 Sinu Manjalay

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CERTIFICATE

St. Andrew’s College, St. Dominic Road, Bandra (W),Mumbai-50

I Mrs. Kasturi Save hereby certify that the following students from FY B.B.I of St. Andrew’s college have completed the project on “ CONSUMER PROTECTION ACT 1986 ” for the subject of “BUSINESS LAW” for the academic year 2009-2010. Information submitted is true and original to the best of my knowledge.

_________________

PROFESSOR

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Index

Sr. No. Topic Pg. No.1 Introduction2 Rights Of Consumers3 Important Terms4 Who Is A Consumer5 Services6 Complaint7 Complainant8 Manufacturer9 Defect In Goods10 Deficiency In Services11 Unfair Trade Practices12 Restrictive Trade Practices13 Consumer Protection Council14 Central Consumer Protection Council15 State Consumer Protection Council16 District Consumer Protection Council17 Consumer Disputes Redressal Agencies18 District Forum19 State Commission20 National Commission21 Procedure on Receipt On Complaint

Relating To Goods22 Powers Of District Forum23 Finding Of The District Commission/State

Commission/National Commission24 Conclusion25 Acknowledgements

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~Introduction~

The Consumer Protection Act, 1986 (‘the act’), has been enacted to ensure better protection of the interest of consumers and to make provisions for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes and matters connected therewith. It attempts to remove the helplessness of the consumer, which he may face against the powerful businessman, described as “network rackets” or a society in which the producers have secured power to “rob the rest” by adopting unfair means.

With a view to protect the consumers from exploitation and to save them from adulteration and substandard goods and deficient services, the Act came into force on 5th April, 1987. It applies to the whole of India except the state of Jammu and Kashmir. The Act attempts to protect the interest of consumers, as understood in commercial sense as a purchaser of goods and hirer of services. This Act is a mild stone in the history of socio-economic legislation. The main object of the Act is to provide speedy and simple redressal to consumer disputes and to protect consumer rights.

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RIGHTS OF CONSUMERS:

The Act envisages the promotion and safeguard of the following rights of the consumers.

1. The right of the consumer to be protected against marketing of goods, which are hazardous to life and property. The consumer life or property is – injured by purchase of any goods which are hazardous goods, he can have speedy and effective redressal under the Consumer protection Act.

2. The right to be informed about the quality, quantity, potency, purity, standard and price of the goods. The right is to save the consumer from unfair trade practice like false and misleading descriptions about the nature and quality of goods, exaggerated statements etc.

3. Right to be assured whenever possible, of access of variety of goods at competitive prices. This right is based upon the belief that the best ways to improve the quality and value for money is to give the consumers wider choice through the mechanism of free competition.

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4. Right to be heard and to assure that consumers interest will receive due consideration at appropriate forums.

5. Right to seek redressal against unfair trade practices or restrictive trade practice or unscrupulous exploitation of consumers.

6. Right to consumer education.

These objects are sought to be promoted and protected by the Consumer Protection Councils established by the central, state, and district level.

To provide speedy redressal to consumer disputes, quasi-judicial machinery is set up at the district, state and central level. These quasi-judicial bodies observe the principles of natural justice and have been empowered to give relief of specific nature and to award, wherever appropriate, compensation to the consumer. There are penalties levied for non –compliance of the orders.

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~Important Terms~

1. Who Is A Consumer? – Section 2(1)(d):

A Consumer is a person who purchases any good s for his use. However, under the Consumer Protection Act, consumer has been defined widely and includes consumer of goods and hirer of services. Definition of Consumer as per the Act is as stated below:

Consumer means any person who :

a) 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 goods for consideration paid or promised or partly paid and partly promised, or under any system of deferred payment, when such use is made by the approval of such person, but does not include a person who obtains such goods for resale or of any commercial purpose.

b) Hires or avails of any service 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 pair 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 the person who avails of such services for any commercial purpose.

Analysis And Definition Of Consumer:

Consumer is a person who:

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a) Buys any goods for consideration; or

b) Uses the goods with the approval of the person who has bought the goods for consideration; or

c) Hires or avails of any services for consideration; or

d) Is beneficiary of the services.

CONSUMER = CONSUMER AS CONSUMER

OF WELL OF

GOODS AS SERVICES

The first part of the definition deals with consumer of goods and the second with consumer of services.

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Consumer Of Goods:

A person claiming to be a consumer of goods should satisfy the following conditions:

1. There must be a sale transaction between the seller and the buyer.

2. Sale transaction must be related to goods.

3. It must be for consideration.

4. Consideration must have been paid or promised or partly paid and partly promised or agreed to be paid under any system of deferred payment. Thus consideration can be in terms of money or exchange of goods and services.

5. The user of the goods is also a consumer provided he uses the goods with the approval of the original buyer.

Exception:

The term “Consumer” does not include a person who purchases goods for resale or for commercial purpose. When the goods are resold in original condition as bought, it is resale. Thus, when the manufacturer sells the goods to the wholesaler who in turn sells the good to the retailers, the wholesaler will be excluded from the definition of a Consumer as he bought the goods for resale or for commercial purpose. If there is a direct nexus between purchase of goods and profit making activity purchase is said to be made for commercial purpose. However, if it is purchased for earning his livelihood by means of self-employment, it is not treated as commercial purpose.

In view of the court whether the goods are bought for self-employment or not are judged not on the value of goods but on the

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purpose to which the goods bought are put. Thus, a mere transfer of goods without immediate final consumption would mean purchase of goods for resale or commercial purpose.

Consumer Of Services:

The second category of consumers identified by the act is that of hirer of service. In order to be considered as a consumer under the Act for the purpose of service, it is essential that service must have been hired or availed for consideration. Consideration must have been paid or promised or partly pair and partly promised or paid under any system of deferred payment.

Even a beneficiary of service is considered as a consumer provided the services are availed with the approval of the hirer.

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2. Service:

“Service” means service of any description, which is made available to the potential users

And includes but not limited to:

The provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electricity or other energy, boarding or lodging of both, housing construction, entertainment, amusement or the purveying of news or other information,

But does not include:

The rendering of any service free of charge or under a contract of personal service.

Analysis Of The Definition:

(a) Main Part (means service of any description or potential users)

The expression “service of any description” has expanded the scope of the definition. It is wide and comprehensive in itself. The expression service of any description extends to any service, provided those services are hired for consideration which has been paid or promised or partly paid and partly promised. The term service is extended not only to actual hirer of service but also to those who are capable of using it i.e. potential users.

(b) Inclusionary part (and includes)

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The definition of the term “service” as defined under the Act is wide enough to include various types of services. Ten services mentioned in the inclusive part of the definition are illustrative in nature. It is inclusive but not exhaustive i.e. not exhausting the services which could be covered in the earlier part. Services specially included in the definition are:

- Banking- Finance- Insurance- Transport - Processing- Supply of electrical and other energy- Board or lodging or both- Housing construction entertainment- Amusement or the purveying of news or other information.

(c) Exclusionary part (but does not include)

The third part of the definition excludes the rendering of any service free of charge or under a contract of personal service. In other words service should be rendered for consideration and should not be a gratuitous service or contract of personal service which denotes a master servant relationship.

Consumer Dispute – Section 2(e)

Consumer dispute arises when the person against whom the complaint is made, disputes or denies the allegation made in the complaint.

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3. Complaint (Under what circumstances or On what grounds a consumer complaint can

be filed) – Section 2(c):

A complaint means any allegation in writing made by a complainant that:

(a) An unfair trade practice or a restricted trade practice has been adopted.

(b) The goods bought by him or agreed to be bought by him suffer from 1 or more defects.

(c) The service hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect.

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(d) If the trader has charged for the goods mentioned in the complainant “a price in excess” of the –

(i) The price fixed by or under any law for the time being in force.

(ii) Displayed on goods or on any package containing such goods

(e) Goods which will be hazardous to life or 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 and which requires the traders to display information in regard to the contents, manner and effect of use of such goods.

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3. Complainant (Who can file a complaint before consumer redressal agency?) – Section 2(b)

A complaint can be filed by:

(a) A consumer.

(b) Any voluntary consumer association registered under the companies Act, 1956 or any other law for the time being in force e.g. Mumbai Grahak Panchayat.

(c) The central Government or the State Government.

(d) One or more consumers when there are numerous consumers having the same interest.

(e) Legel hier or representative of a deceased consumer.

4. Manufacturer – Section 2(j):

A manufacturer is a person who –

- Makes or manufactures any goods or parts thereof

- Assembles parts or goods made or manufactured by others and claims the end product to be goods manufactured by himself.

- Puts his own mark on any goods made or manufactured by any other manufacturer and claims such goods to be made or manufactured by him.

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5. Defect In Goods – Section 2(f):

Defect means any –

(a) Fault

(b) Imperfection

(c) Shortcoming in the

(i) Quality

(ii) Quantity

(iii) Potency

(iv) Purity

(v) Standard

Which is required to be maintained by or under any law for the time being in force OR under a contract, expressed/implied or as is claimed by the trader in any manner whatsoever in relation to any goods.

Quality, quantity, potency, purity and standard may be prescribed by legislations or by terms of contract between the parties. Claims or promises can be made by advertisement or by printing on the packet or sachet of the goods or by other means.

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6. Deficiency In Services – Section 2(g):

Deficiency means any –

(a) Fault.

(b) Imperfection.

(c) Shortcoming.

(d) Inadequacy in the,

(i) Quality.

(ii) Nature.

(iii) 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.

Deficiency In Transport System:

(a) Failure on part if Railways to check ticket.

(b) Ignoring the list of passengers in waiting list.

(c) Stale food supplied by Airport Authority.

(d) Non-delivery of baggage at destination.

Deficiency in telephone services like over billing, wrongful shifting, delay in shifting, etc.

Deficiency in housing service.

Deficiency in banking services like delay in encashment of bank guarantee, encashment of forged cheque, improper delivery of documents by banks, etc.

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7. Unfair Trade Practices – Section 2(1)(r):

“Unfair trade practice” means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely:

(1) The practice of making any statement, whether or orally or in writing or by visible representation which:

(a) Falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model.

(b) Falsely represents that the services are of a particular standard, quality, quantity, grade, composition, style or model.

(c) Falsely represents any re-built, second-hand, renovated. Reconditioned or old goods as new goods.

(d) Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have.

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(e) Represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have.

(f) Makes a false or misleading representation considering the need for, or the usefulness of, any goods or services.

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(g) Gives to the public any warranty or guarantee of the performance efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof.

Provided that where a defense is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defense shall lie on the person raising such defense.

(h) Makes to the public a representation in a form that purports to be:

i. A warranty or guarantee of a product or of any goods or services or;

ii. A promise to replace, maintain or repair an article or ant part thereof or to continue a service until it has achieved a specific result,

iii. If such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out.

(i) Materially misleading the public concerning a price at which a product or like products or goods or services, have been or ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or service has been provided by the person by whom or on whose behalf the representation has been made.

(j) Gives false or misleading facts disapproving the goods, services or trade of another person.

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(2)Permits the publication of any Advertisement, whether in a newspaper or otherwise, for a sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at a bargain price, or for a period that is, and in quantities that are, reasonable having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisements.

(3) Permits:(a) The offering of gifts, prizes or other items with the intention of

not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole.

(b) The conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest

(4) Permits the sale or supply of goods intended to be used or are of a kind likely to be used by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by the competent authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods;

(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services.

9. Restrictive Trade Practice – Section 2 (mm):

Restrictive trade practice means a trade practice which tends to bring about manipulation of prices 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.

- It includes:

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(a) Delay beyond the period agreed to be a trader in supply of such goods or in providing the services which has led or is likely to lead to a rise in price.

(b)Any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be services as-condition precedent to buying, hiring or availing of other goods or services.

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~CONSUMER PROTECTION COUNCIL~

The Consumer Protection Councils are important bodies set up by the government for protection of consumer rights. The main objective of the Councils is to protect and promote the rights of the consumers as stated in the Act. They play an important role in spreading consumer movement and awareness about consumer rights in the country, particularly in the rural areas.

Consumer Protection Councils are set up at Central, State and District levels. Consumer Protection Councils assist the government in formulation of policies for protecting consumer rights. Te decisions of

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the Council are recommendatory in nature but they have significant impact on the several authorities concerned with the matters of consumer protection. Section 4 to 8 of the Consumer Protection Act, 1986, contains provisions related to Consumer Protection Councils.

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~CENTRAL CONSUMER PROTECTION COUNCIL~

1) Constitution of the Council: The Central Government has constituted Central Consumer

Protection Council consisting of maximum 35 members. The Chairman of the Central Council is the minister in charge of

consumer affairs in the Central Government and the Vice-Chairman is the Minister of State (where he is not holding independent charge) or the deputy minister in charge of the consumer affairs in the Central Government.

The Council has wide base and representation from all the concerned sections. It consists of representatives not only from the consumers, but also from the traders and industry. Women have been given adequate representation. Members also include representation of weaker sections scheduled caste and scheduled tribes.. They also include Member of Parliament and representation from concerned industries like food and civil supplies etc.

2) Terms of the Council: The term of the Council is 3 years. Any member by writing may

resign from the Council by letter addressed to the Chairman of the Council. The vacancy so created shall be filled by the Central Government from the same category.

3) Object of then Council:

The object of the Council shall be to protect and promote the rights of consumers, which are specified in the Act.

4) Meeting of the Council:

The Central Consumer Protection Council can meet as and when necessary but must hold at least one meeting every year.

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5) Procedure of the Meeting:

The procedure which the Central Council shall follow in its meeting is as follows:

(a) Proper authority: The meeting must be called by a proper authority. In case of meeting of Central Consumer Protection Council, proper authority is the Chairman of the Council.

(b) Notice: Proper and adequate notice of the meeting of the Central Council should be given to its members at least 10 days before the date of the meeting. The notice must specify the place, day and hour of the meeting and shall contain statements of the business to be transacted at the meeting.

(c) Presiding Officer: Meeting shall be presided over by the Chairman of the Council. In his absence, the vice-chairman shall preside over the meeting. In the absence of both, the Central Council shall elect any member to preside over that meeting of the council.

(d) Resolution: All the resolutions in the meeting shall be passed by simple majority of members present and voting. Such resolutions shall be only recommendatory in nature.

The proceedings of the Central Consumer Protection Council shall not be invalid merely because of the existence of any vacancy in or any defect in the constitution of the council.

STATE CONSUMER PROTECTION COUNCIL–SECTION 7:

Like the Central Government, State Government is also authorized to establish consumer protection council by notification published in the official gazette.

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1. Object of the State Consumer Protection Council:

The object of the Central and State consumer protection council is the same i.e. every state consumer protection council shall also promote and protect the rights of the consumer within the state. The rights of the consumers includes right to safety, right to information, right to choose, right to be heard, right to seek redressal and right to consumer education.

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2. Constitution:

The State Consumer Protection Council shall consist of the following members: (a) Minister in charge of the consumer affairs in the state government as its Chairman.(b) Such number of other official or non-official members representing such interest as may be prescribed by the state government.

The State Council has a wide base and has representation not only from consumers but also industry. Also, women and weaker sections like scheduled caste and scheduled tribes have been given adequate representation.

3. Number of State Councils:

There is only one such council in every state.

4. Term:

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The term of the council is 3 years. Any member can resign from the council by writing a letter addressed to the chairman of the council.

5. Meeting:

The state consumer protection consumer shall meet as and when necessary but not less than 2 meetings shall be held every year. It shall meet at such time and place as the Chairman may think fit and shall meet and observe such procedure as may be prescribed by the State Government.

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DISTRICT CONSUMER PROTECTION COUNCIL – Section 8(A):

State government is authorized to establish for every district, a district consumer protection council. This provision was introduced by Amendment Act, 2002.

1. Constitution of District Consumer Protection Council:

District consumer protection council shall consist of the following members’ viz.,(a) Collector of the District, as its Chairman.(b) Such number of other official and non-official members representing such interest may be prescribed by the state government.

2. Number of Members:

Total number of members is decided by the State Government.

3. Object of District Consumer Protection Council:

The object of the District Consumer Protection Council is the same as that of the Central and State Consumer Protection Council i.e. every District Consumer Protection Council shall also promote and protect the rights of the consumer within the state. The rights of the consumers includes right to safety, right to information, right to choose, right to be heard, right to seek redressal and right to consumer education.

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4. Procedure for meetings:

The district council shall meet at such time and place within the district as the chairman may think fit and shall observe such procedures in regards to the transaction of its business as may be prescribed by the State Government.

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~CONSUMER DISPUTES REDRESSAL AGENCIES~

Consumer Disputes Redressal Agencies are the three tier quasi judical machinery set up at the district, state and national level to hear and adjudicate consumer disputes.

i) National Commissionii) State Commission.iii) District Forum.

The object of this quasi judicial machinery is to provide simple, speedy and inexpensive redressal of the consumer grievances. Section 9 to 23 of the Consumer Protection Act, 1986, contains various provisions related to redressal agencies like establishment of the consumer disputes redressal agencies, Composition of Redressal Agencies, Jurisdiction and Manner in which a complaint shall be made, Procedure on receipt of complaint, Vacancy in the office of the president, Appeal provisions, power and procedure applicable to National Commission etc.

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Important provisions related to redressal agencies are discussed as under:

1) DISTRICT FORUM: District Forum is set up in each district by the State Government.

a) Composition of District Forum: District Forum consists of total three members of which one has to

be a woman.

b) President: A person who is District judge (Past or present or who is qualified to

be a District judge) shall be President of District Forum.

c) Members: Other two members must be persons of ability, integrity, and

standing and must have adequate knowledge or experience or have shown capacity in dealing with problems relating to economics, law, accountancy, commerce, industry, public affairs or administration etc.

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d) Who appoints the members: Members of the District Forum are appointed by State Government

on recommendation of a selection committee consisting of:

i) President of the State Commission – Chairman.ii) Secretary of Law Department of the state – Member.iii) Secretary, in charge of Consumer Affairs Department in the

State – Member.

e) Term of Office of Members: Every member shall hold office for a term of 5 years or 65 years,

whichever is earlier.

f) Salary, Honorarium and Other Allowances: Members get their salary, honorarium or other allowances as

prescribed by State Government by making necessary rules.

g) Pecuniary Jurisdiction: Aggregate amount of compensation determines pecuniary

jurisdiction.

Complaint can be filed before the district forum if the value of goods or services and compensation claimed is upto Rs.20 Lakhs.

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h) Territorial Jurisdiction: Complaint shall be instituted in a District Forum within whose local

lamits of jurisdiction.

i) The opposite party or each of the opposite parties resides or carries on business or works for gain or has a branch office at the time of institution of complaint.

Or

ii) In case of more than one opposite party – any one party actually resides or carriers on business or has a branch office or personally works for gain.

Or

iv) Where the cause of action wholly or in part arises.

2) STATE COMMISSION:

The second in the hierarchy of the Consumer Redressal Forums is the State Commission. The State Commission is required to be established in every state.

a) Composition: State Commission consists of total three members of which one shall

be a woman.

b) President: A Person who is or has been a judge of High Court shall be president of

State Commission. Appointment of the President of State Commission shall be made in consultation with the Chief Justice of the High Court.

c) Members:

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Two others members must be persons of ability, integrity, standing and must have adequate knowledge or experience or have shown capacity in dealing with problems relating to economics, law, accountancy, commerce, industry, public affairs or administration etc.

d) Appointment: Members of the District Forum are appointed by State Government on

recommendation of a selection committee consisting of:

i) President of the State Commission – Chairman.ii) Secretary of Law Department of the State - Member.iii) Secretary, in charge of Consumer Affairs Department in the State –

Member.

e) Term of Office of Members: Every member shall hold office for a term of 5 years or 67 years

whichever is earlier.

f) Salary, Honorarium and Other Allowances: Members get their salary, honorarium or other allowances as prescribed

by State Government by making necessary rules.

g) Jurisdiction: Jurisdiction refers to the court or tribunal of a country in which an action

can be brought or suit or complaint can be brought or suit or complaint can be filed. Jurisdiction of the State commission is as under:

Pecuniary Jurisdiction:

Complaint can be filed before the State Commission if the value or goods or services and compensation claimed is more than 20 lakhs and upto one crore.

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Territorial Jurisdiction:

Complaint shall be instituted in a State Commission within whose local limits of jurisdiction:

(i) The opposite party or each of the opposite parties resides or carries on business or works for gain or has a branch office at the time of institution of complaint.

OR

(ii) In case of more than one opposite party-any one party actually resides or carries on business or has a branch office or personally works for gains.

OR

(iii) Where the cause of action wholly or in part arises.

Appellate Jurisdiction:

State Commission has appellate jurisdiction to entertain appeal against orders of any District Forum within the state. Any person aggrieved of decision of District Forum, can prefer an appeal before the State Commission within 30 days from the date of the order.

h) Revisional Jurisdiction:

State Commission has the power to call for records and pass appropriate orders for complaint which is pending before or has been decided by any District Forum within the state.

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3) NATIONAL COMMISSION:

National Consumer Disputes Redressal Commission known as National Commission is established by the Central Government.

It is the apex body at the centre to settle the consumer disputes under the Act.

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a) Composition: National commission consists of total five members of which one

shall be a woman.

(b) President:

A person who is or has been (past or present) a judge of the Supremacy Court of India can be appointed as the president of the National Commission.

Appointment of the president of National Commission must be made in consultation with the chief justice of India.

(c) Members:

Other four members must be persons of ability, integrity, and standing and must have adequate knowledge and experience or have shown capacity in dealing with problems relating to economics, law, accountancy, commerce, industry, public affairs or administration etc.

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(d) Appointment:

Members of the National Commission are appointed by the Central Government or recommendation of selection Committee consisting of:

(i) Judge of Supreme Court nominated by chief justice of Supreme Court – Chairman.

(ii) Secretary in department of Legal Affairs in the Government of India – Members.

(iii) Secretary in department of Consumer Affairs in the Government of India – Members.

(e) Term of Office of Members:

Every member shall hold office for a term of 5 years or 70 years whichever is earlier.

(f) Salary, Honorarium and other allowances:

Members get their salary, honorarium and other allowances as prescribed by Central Government by making necessary rules.

(g) Jurisdiction:

National commission is the final apex body in redressal agencies of India. Jurisdiction of the National Commission is as under:

Pecuniary Jurisdiction:

Complaint can be filed before the National Commission if the value or goods or services and compensation claimed is more than one crore.

Appellate Jurisdiction:

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National Commission has appellate jurisdiction to entertain appeal against orders of any State Commission within the state. Any person aggrieved of decision of State Commission, can prefer an appeal before the National Commission within 30 days from the date of the order.

Revisional Jurisdiction:

To call for records and to pass appropriate orders for complaint this is pending before or has been decided by any State Commission. Such Powers can be exercised by the National Commission if:

(i) State Commission has exercised a jurisdiction not vested in it.

(ii) Hs failed to exercise jurisdiction so vested.

(iii) Has acted in exercise of jurisdiction illegally or with material irregularity.

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~Procedure On Receipt Of Complaint Relating To Goods - Section 13, 18 AND 22~

District forum, state commission or national commission shall adopt the following procedure on receipt of complaint relating to goods:

1) Refer a copy of the complaint within 21 days to opposite party directing him to give his version (reply) of the case within the period of thirty days or such extended period not exceeding 15 days as may be granted by the district forum.

2) If the opposite party to file the objections on merit.

3) Where the opposite party on receipt of complaint denies or disputes the allegation contained in the complaint or omits or fails to take any action to represent his case within the time given, the district forum shall proceed to settle the matter in the following manner:

a) In case of defect of goods, which cannot be determined without proper analysis or test of the goods, the district forum shall obtain sample of the goods from the complaint, seal it and authenticate it.

b) It shall then refer the sealed sample to an appropriate laboratory for test and analysis to find out whether such goods suffer from any defect

c) The appropriate laboratory shall report its findings on the sample to district forum within a period of 45 days of receipt of reference or within such extended period as may be granted by the district forum.

d) The complaint has to deposit with the forum the fees for the analysis or test, to be remitted to the laboratory.

e) The district forum shall remit the amount to the laboratory to enable it to carry out the analysis or test.

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f) On the receipt of the receipt, the district forum shall forward a copy of the report with its remarks to its opposite party.

g) If the findings of the laboratory are disputed, the party the party disputing the finding shall submit written objections.

h) The district forum shall after hearing the parties, issue an appropriate order.

If the above mentioned procedure cannot be followed or if the complaint relates to any service, district forum, state commission or national commission shall follow the following procedure:

1) Refer a copy of the complaint within 21 days to the opposite party directing him to give his version (reply) of the case within a period of thirty days or such extended period not exceeding 15 days as may be granted by the district forum.

2) If the opposite party files preliminary objections and not a written statement, the commission should give an opportunity to the opposite party to file the objection on merit.

3) It shall decide the complaint on the basis of evidence brought by complaint and opponent.

4) If the opponent remains absent or fails to take any action to represent his case, then appropriate forum shall decide on the basis of evidence brought by the complaint i.e. he may decide the complaint exe-parte.

5) If the complaint fails to appear on the date of hearing before the district forum, state commission or national commission, the respective redressal agency may either dismiss the complaint for default or decide on merits.

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~ Powers of district forum- SECTION 13(4) ~

The district forum, state commission and national commission shall have the same powers as are vested in the civil court under the civil procedure code, 1908 in respect of the following:

1) The summoning and enforcing attendance of any defendant or witness and examining the witness on oath;

2) The discovery and production of any document or other material producible as evidence;

3) Receipt of evidence of affidavit;

4) The requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;

5) Issuing of any commission for examining of any witness;

6) Any other matter which may be prescribed.

Rule 10 of the consumer protection rules, 1987 made by the central government lays down the provisions conferring additional powers to the national commission, the state commission and the district forum regarding production of documents, furnishing documents, furnishing of information, search and seizure.

Findings of the district commission/state commission/ national commission- section 14:

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If after the proceeding conducted under section 13, the district forum is satisfied that the goods complained against suffer from any of contained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things namely:

1) Remove the defect from the goods as pointed out by the appropriate laboratory

2) Replace the goods with new goods of similar description which shall be free from any defect

3) Return to the complaint the price, or , as the case may be, the charges paid by the complaint

4) 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

5) To remove the defects or deficiencies in the services in question

6) To discontinue the unfair trade practice or the restrictive trade practice or not to repeat them

7) Not to offer any hazardous goods for sale

8) To withdraw the hazardous goods from being offered for sale

9) To provide for adequate costs to parties.

Limitation period- section 24(A)

The complaint before the district forum, state commission or the national commission shall be filled within two years from the date on which cause of action has arisen.

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However, a complaint may be entertained after two years, if the complaint satisfies respective redressal agency that he had sufficient cause of action has sufficient cause for not filing the complaint within such prescribed period.

Redressal agencies shall record the reason for condoning the delay.

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Vexatious or frivolous complaints- section 26:

Complaints which are filed without any base and with a view to trouble and harass the opposite party are called as frivolous or vexatious complaints. It is groundless law suit with little prospect of success, often filed to embarrass or annoy the opposite party. It means a proceeding instituted malicious and without probable case.

There is widespread tendency to lodge false complaints before the consumer forums, against the companies especially because the court fees payable is minimum for processing their complaint.

To curb-such a tendency of filling of frivolous or vexatious complaint and to avoid abuse of consumer protection act 1986, consumer forum may dismiss such complaint and can pass an order directing the complaint to pay compensation to the opposite party not exceeding Rs.10,000.

Penalties-section 27(1):

If a trader or a person against whom a complaint is made or the complaints fails or omits to comply with any order made by the district forum, the state commission, or the national commission, then he shall be punishable with imprisonment of minimum one month and maximum 3 years, or with minimum fine of Rs. 10000 or both.

~Conclusion~

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In conclusion, consumers are meant to be protected from being cheated. This Act provides the consumers with that protection. Consumers feel safe as they have these rights such as right to be heard, right to seek redressal, right to knowledge, etc.

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~Acknowledgements~

It gives us immense pleasure in acknowledging the valuable and co-operative assistance extended to us by various individuals who have helped us successfully in completing our project. We would like to show gratitude to Prof. Kasturi Save for her valuable assistance, encouragement and support on the topic "Consumer Protection Act 1986" Lastly we would like to thank our friends, colleagues and professors who have supported us during the making of this project. It’s the encouragement of these people that has made us precede us towards achieving our goals.

~Bibliography~

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www.google.com

www.wikipedia.com

www.scrbd.com

www.citehr.com

http://india.gov.in/sectors/consumer_affairs/consumer_protection.php