^

Chapter 12

THE CONSUMER PROTECTION ACT, 1986 eed for Consumer Legislation r Most of the manufacturers and traders have been adopting unfair tradepractices for the purptTSe of promoting sale, use or supply of any goods, or for the provision of any senoc^s^Unfaiiigractice&like false and misleading descriptions about the nature and quality of the gooas; exaggerated statements about their power and potency, falseweights afid measurements etc., have'been causingJoss~l)rlpj5ffii to consumers of such goods and service^A number of Acts were enacted by the Government to protect the iTTT^esTsot^oTisTimers. But tnese Acts failed to provide the needed protection to the interests of consumers. To provide for better protection of the interests of the consumers, and to save the consumers from the evils of unfair trade practices, the Government of India enacted the Consumer Protection Act in 1986. Most of the defects in the Act were removed by amendments to the Act in 1991, 1993,2001 and 2005. \The following points or grounds justify the need for consumer protection:] kjr Consumers do not have^d^gjujXe-prQduct knowledge. \j* They are ignorant of their rights and remedie^availaoJe-tGOhem. yf* They are in a weak bargain ingjjosjtjoji^ S- Manufacturers and suppliers have_the_expertise which a consumer does not have. 4 Often products are forced on consumers through eye-caching packing materials, sensational media advertisements, etc. i''-Fake and spenions products are flooding the market and deceivingifae.consumers. f* ,'Let the buyer beware' is not realistic in the context of liberalisation, privatisation and '"globalisation'-complex and mass produced goods and services. ATslHtjJgriilits seller to 1 disown his/her liability.

Hie Consumer Protection Act, 1986

109 I Objecti ves of the Act ^y T he Co nsu me r Pro tect ion Act , 198 6 see ks to pro vid e for bett er pro tect ion of the inte rest s of lon su me rs. Thi s Act see ks, int er ali a, to pro mo te an

d protect the basic rights of customers such as : Right of Protection to Life and Properly : The right to be protected against marketing of goods which are hazardous to life and property. Right to be informed7: The right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumers against unfair trade practices. Right to choose/: The right to be assured, wherever possible, access to a variety of goods at competitive prices. Right to be Heal: The right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums. / Right to Redress: The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers, and Right to Education : The right to consumer education. This is based on the basic rights of consumers as defined by the International Organisation of Consumers (IOCU^viz. Right to safety, to information, of choice, to be heard, to redressalTlcTclSrisuTrTeT educarrOnrto^ifeafthy environment and to basic needs. These objects are being promoted and protected by the Consumer Protection Councils established at the Central and State level. The Act seeks to provide

spe edy an d sim ple red res sal to con su mer dis put es. For this pur pos e a qu asi jud ici al ma chi ner y is bei ng set up at the dist rict , stat e and cen tral lev el. The se qua sijudi cial bod ies will obs

erve the principles of natural justice. These have been empowered to give reliefs of a specific nature and to award compensation to consumers. Penalties for non-compliance of the orders given by the quasijudicial bodies have also been provided. The remedies under this Act are additional and supplemental remedies. Section 3 of the Consumers Protection Act states that the provision of this Act shall be in addition and not in derogation of the provisions of any other law or Act for the time being in force. Advantages of seeking relief under the Consumer Protection Act, 1986. Following are the most important advantages of seeking relief before a Consumer Forum instead of approaching of Civil Court. While evaluating the comparative benefits we may also consider the remedy available to consumers under the MRTP Act, 1969 against restrictive trade practices and unfair trade practices: Firstly administration of justice under the Consumer Protection Act is totally free. Consumer Courts do not levy court fee in respect of legal proceedings. Secondly consumer courts are expected to delivery speedy justice. Despite criticism on this aspect some of which is justified, one agrees that consumer courts certainly score over the civil courts.

Y ou can be you r ow n law yer bef ore con su mer cou rts. Tho ugh app ear anc e of law yer is not pro hibi ted con su mer cou rts do not enc our age app ear anc e of law yer s and ext ensi ve lon g win ded irgu me

nts. Procedural simplicity and amiable atmosphere prevailing in consumer courts is more encouraging oan ordinary litigant as compared to lengthy and procedure oriented civil court proceedings.

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B.Com Business \i While the provisions of Restrictive Trade Practices and Unfair trade practices cannot be invi against Central Govt., State Govt., and public sector organisations, the provisions C.P. Act, 1986 caiH invoked against Govt, run organisati ons such as railways, post office, air line, telephone boaifl electricity boards, insurance companie s, banks. Further Consume r Forum is vested with quasi crinul powers/p enal provision s under Section 27 of the Act. DEFINITION S Consu

mer : 'Cons umer' means any person who: (i)Jbu y^M ^good s for a consi derati on w/j has been paid or promi sed. orpart Ty~pa id and par^J Jfrffn *&ed ^nr_u _nder a syste m of.dfif erjpd payme j or (ii) hjzes anyse x^ices jora consi derati on which has been paid or promi sed^ or partly paid and parfl

promised, or under a system of deferred payment, ue. in respect of hire-purchase transactioH [Sec 2(d)]. "-"" Thus consumer is a person who (i) buys any goods for a considerati on, or (ii) hires or avails aB services for a considerati on. In addition to buyer(s) of goods or hirer(s) or user(s) of services, M beneficiary of such services, using the goods/servi ces with the approval of the purchaser or hirerM user would also be deemed a 'Consumer' under the Act. The widow of the deceased Policy holder was held as a consumer under the Act by the Stafl

Comm ission of A.P. in the case of A Naras amma Vs. LIC ofIndi a. The consid eratio n may be either pail or promi sed, or partly paid and partly promi sed or under any syste m of deferr ed payme nt. The Act thug covers transa ctions for the supply of goods and render ing of servic es. ^^ Buyer of goods for consid

eration : The buyer of goods for a consideration is a consumer. Tki Act, unlike the Sale of Goods Act, does not insist on money consideration only. Transactions of transfer of services, or barter, or exchange will come within the purview of the Act. The user of sue: goods, with the approval of the buyer of goods, is also a consumer as per the Act. According to section 2 (d) of the Act, the term consumer does not include a person who obtains such goods for resale or foil any commercial purpose. Thus a purchaser of goods for reselling them, or a purchaser of taxi for pfyingl the same on hire, a purchaser of a V.C.R. for running a video library, or purchaser of machinery

forhis B comm ercial establi shmen t is not a consu mer. Howe ver, accord ing to the Consu mer Protec tion (Ame nded! Act, 1993, a perso n who purch ases tools or machi nery under selfemplo yment schem e is also a consu mer. I H irer of servic es for consi derati on : Any perso n who hires servic es for a

consideration is a consumer. Consumer, not only means merely one who hires services for consideration , but also includes! a person who is a beneficiary of such services. For example, the user of a telephone, even though he is I not himself the subscriber is a consumer under the Act. Services include all kinds of professional! services, be it the routine services of a barber or the technical services of a highly qualified person. For I example, supply of electricity has been held to be a service and not sale of goods. The services must be I of commercial nature in the sense that they must be on payment. The payments may be in

cash or kind. I It may be made either at once, or partly at once, or partly on credit . The servic es may be rende red wholl y I or partly on credit . Howe ver,//^ servi ces or perso nal servi ce under a contr act have been exclu ded ' from the prote ctive spell of the Cons umer

Protection Act. Unio n of India. Vs. Mrs. S. Prakash : It was held that the subscriber of telephone is a consumer as the rental charges paid to the Central Governmen t is the consideratio n for the services rendered by the TeleCommunic ation Department , District Manager, Telephones Patna Vs Lalit Kumar Bajla (1989). Mumba i Grahak Panchayat. Vs. Andhra Pradesh Scooters, Ltd : The complainant made an advance deposit of Rs. 500 with the A.P. Scooters Ltd., booking a scooter. The complinant was not given the refund of the deposit when he demanded the same as per

his contra ct with the oppos ite party, j It was held that the compl ainant was a consu mer, and was entitle d to relief asked by him.

The Consumer Protection Act, 1986

HI G anap athi. Vs. Post Mast er, Karn ataka State: In this case, the remitt er of T.M. O. was held to be a consu mer and was award ed comp ensati on. C osmo polita n Hospi tals. Vs. Smt. V.P. Nair's : The Natio nal Com missi on held, that a patien t is a consu mer and the

medical assistance was a service. The medical officer's service was not a personal service so as the constitute an exception to the application of the Consumer Protection Act. Act. Who are not Consumers : The following persons are not consumers as per the Consumer Protect (a) a person who purchased goods for resale. .*-(b) a person who purchased goods for commercial purpose (3)a person who^bjaiiis_sgryices without consideration i (4)a person who obtains services under a contract of personal service, v-^ The National Commission, in various cases, had decided that the following are not consumers : tax-payers to municipality / contractors r applicants for jobs -/ persons who filed suits in courts, etc. Consumer Dispute : According to section 2(1 )(e) of the Consumer Protectioji^A^tJC^nsi^rne r Dispute' means^a dispute wherelhejagison

agains Lwh^ m_a_c omplai nt HaYbe en made denies or dispute s flTelall egation s contain ed in the compla int". . ~~T ~1---------------------~----------------------~ <SD efici ency : D^fj cjeji c^Lr jiea DS_ aiiyj [ault , imp erfe ctio n, shor tc^ min g^n najg guac y in the qual ity, nature' and maj^er

ofperformance which is requir^To^bTmaintained by or under any law for the time beJng_iiLforceoirhas been undertaken to be performed by a person in pursuance of a contract-oc. otherwise in relation to any service [Section 2(1 )(g)]. The definition of 'deficiency' also has two parts to it like the definition of 'defect' pertaining to services for which standards are prescribed by the law and services for which express warranties or guarantees are given by the persons concerned, say, traders, etc. Service : "Service" meansService of any description which is made available to_potgntial users, and inemdes the provisions of facilities in connection with banking, financing, insurance, transport, processing, supply of electricaf or other energy, boarding or lodging or both, house construction, entertainmen^amusem^ntorl^en 2(0)]. The expression "Service" includes in its scope provision of facility in connection with telephone provided by Telecommunication Department and houses and plots by Housing & Development Board. Free services and personal services under a control have been excluded from the protective spell of the Act. Thus services must be of commercial nature in the sense that they must be on payment. The payment may be in cash or kind. It may be made either at once or partly at once or partly later i.e., on credit. For services rendered without consideration, the complaint cannot be maintained in forum. For

examp le a medic al service render ed by Gover nment hospit als will not come within the scope of Consu mer Protect ion Act. I n Consu mer Unity and Trust Societ y Vs. State of Rajast han (1989 ), the Nation al Comm ission, while hearin g an appeal from the State of Rajast han, held that compl

aints against hospitals

government

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B.Com Business Law \ cannot be entertained under the Act on the ground that a person receiving treatment in such hospital I is not a 'consumer' as the patient does not 'hire' the services of the hospital; moreover, the treatment I provided is free of charge, and therefore, it does not amount to "service". In the case of Cosmopolitan Hospitals Vs. Smt. Vasantha P. Nair, (1991) and Cosmopolitan I Hospitals Vs. Smt. V.P. Santha (1992), the National Commission considered at length whether service | rendered by doctors in private hospitals for consideration would come under the purview of 'service', J whether the medical profession was outside the scope of the Consumer Protection Act, and whether legal representatives of a deceased patient could file a complaint against the hospital alleging negligence. The facts of both cases were similar- the widows of the deceased patients alleged the hospital authorities with negligence - in the diagnosis and

treatm ent in the first case and in the perfor mance of an operati on in the second case. T he conte ntions or the hospit al author ities denyi ng the allega tion of neglig ence were that (i) the compl ainant s were not 'consu mers' under the Act, and theref ore, were not entitle d to initiat e the proce eding s; and (ii) the

treatment rendered in the hospital did not constitute 'service' under the Act. Their contention was that the Act ensured protection to consumers against unscrupulous traders selling defective goods or indulging in unfair trade practice and against deficiency in service relating to commercial transactions only and that services rendered to a patient by a medical practitioner, which is a professional service, is of a personal nature and contracts of personal service being outside the purview of the Act, the services rendered in hospitals whether by government or private agencies were not 'services' under the Act. The National Commission upholding the decision of the State Commission held that (i) the complainants who were legal representatives of the deceased were clothed by operation of law with the rights which the deceased had to initiate action against the hospital on the ground of alleged deficiency in service and that

those rights had not beco me exting uished by his death but remai ned enforc eable by his legal repres entati ves. Unles s such a broad and pragm atic view is taken, the intenti on of the legisla ture in enacti ng the Consu mer Protec tion Act would be defeat ed. There fore, the compl ainant s were "cons umers " and had

full locus standi to maintain the complaint petitions before the Forums. (ii) the activity carried on by the hospital constituted 'service' under the Act and did not fall within the exempted category of service rendered under a "contract of personal service". The definition of "service" as given in Section 2(1)(0) of the Act mentions "service of any description" made available to potential users and only exempts "service rendered free of charge" or "under a contract of personal service" from its ambit. Restricting the scope of the definition to only "service relating to commercial transactions" would not be warranted, given the intention of the legislature. Thus, there is no substance in the contention that service rendered by hospitals and members of the medical profession for consideration will not constitute "service" as defined in the Act because it does not relate to a "commercial transaction". Quoting its own observations in the case of A.C. Modagi Vs. Cross

Well Tailor (1991) the Nation al Comm ission reitera ted that there was a distinc tion betwe en contra ct for servic e and contra ct of servic e. 'Perso nal servic e' stemm ed from a master and servan t relatio nship where the master can order what is to be done and how it shall be done and under which, an emplo

yee could be turned out of service by the master at will, and therefore, no occasion would arise for the master to complain about the deficiency in the rendering of service by the employee. Where the hirer of the service is not in a position to exercise any sort of control or supervision over the work of the person rendering the service, there would not be any 'personal service'. In the case of hospitals which provide treatment to patients for payment, there could be no reason to hold that there was any element of personal service in such arrangement. The provisions of the Consumer Protection Act relating to adjudication of consumer

The Consumer Protection Act, 1986

113

disputes and award of reliefs under Section 14 fully apply to disputes concerning deficiency in the service rendered by hospitals and members of the medical profession also. The following have been held to be services for the purpose of application of the provisions of the Consumer Protection Act: Banking Services, Insurance Services, Railway Services, Airlines Services, Telephone Services, Transport Services, Electricity Board Services, Private Hospitals Services, Services of Intermediate Board, Tourist Services, Services provided by Universities, Postal Department Services, Registration Department Services. The following services are held to be not covered by the Consumer Protection Act: Services provided by Government hospitals, Service Commission Services, Service of Courts etc. Complaint: "Complaint" means any ajjegation in writing made by a complainant with a view to claiming any relief, by a complainant that: ~" c----(i) as a result of any unfair trade practice or restrictive trade practice, adopted by a trader the complainant has suffered loss or damage; (ii) the goods mentioned in the compliant suffer from one or more defects; (iii) the services mentioned in the complainant suffer from deficiency in any respect; (iv) a trader has charged for the goods mentioned in the complainant a price in excess of the price fixed by or under any law for the time being in force. can make a Compliant : A complaint in relation to any goods sold or delivered, or any ; service provided may be filed with quasi-judicial organs constituted under the Consumer Protection - Acj-by any of the following : (i) the consumer to whom such goods are sold or delivered or such service provided; (ii) any recognised consumer's association registered under law, or (iii) the Central or any State Government, and (iv) one or more consumers on behalf of many consumers having same interest. Note : 'Recognised Consumer Association' means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force. To Whom the Complaint is to be made (Pecuniary limits) : According to the Consumer Protection (Amendment) Act, 1993, a complaint can be made to the following quasi-judicial agencies in the following manner: (5) Where the value of goods or services and compensation, if any, claimed does not exceed Rs. 20 lakhs, complaint is to be filed with the District Forum; (6) Where the value of goods or services and compensation, if any, claimed exceeds Rs. 20 lakhs, but does not exceed Rs.50 lakhs, complaint is to be filed with the State Commission. (7) Where the value of goods or services and compensation, if any, claimed

exceeds Rs. 50 lakhs, the complaint to be filed with the National Commission,

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Where to file a Complaint (Territorial limit): A complaint should be filed in a District Foni (subject to pecuniary jurisdiction) within the limits of whose jurisdiction all the opposite parties residf or carry on business, or Any one of the opposite parties resides or carry on business (with the permission of DistricJ Forum or acquiescence of the opposite party not residing there) or where the cause of action whollyt in part arises. , How to file a Complaint: (8) No fees have been prescribed. (9) Complainant or his authorised agent can present the complaint in person. (10) The complaint can be sent by post to the appropriate Forum/Commission. JHow to draft a Complaint: A complaint should contain the following information: (11) Name, description and address of the complainant. (12) Name, description and address of the opposite party or parties. (13) The facts relating to complaint and when and where it arose, (14) Documents, if any, in support of the allegation contained in the complaint. (15) The relief which the complainant is seeking. The complaint should be signed by the complainant or his authorised agent. tJnfair Trade Practices I The Consumer Protection Act has adopted the definition of'Unfare Trade Practices' as given in the MRTP Act. ____ (^"Section 36-A of the Monopolies and Restrictive Trade Practices Act, 1969, amended in 1993 ;xplan*s what 'unfair trade practice' means. Unfair trade practice methods are listed in section 36-A. Where the methods listed in Section 36-A are adopted for the purpose of promoting the sale, use or ;upply of any goods, or for the provision of any services and thereby some loss or injury is caused to he consumers of such goods or services, it is an unfair trade practice. The practices mentioned in ection 36-A are grouped into the following five categories^ . Misleading Advertisement and False Representation: These include: (16) falsely representing that the goods'areVf a particular standard, quality, quantity, grade, composition, style or model. (17) falsely representing that the services are of a particular standard, quality or grade. (18) falsely representing that the re-built, second-hand, renovated, reconditioned or old goods as new goods. (19) representing that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have.

(20) representing that the seller or the supplier has a sponsorship or approval or affiliation which he does not have. (0 making a false or misleading representation concerning the need, for, or the usefulness of any goods or services.

The Consumer Protection Act, 1986

115 (g) g iv i n g t o t h e p u b li c a n y w a r r a n ty o r g u a r a n te e o f t h e p e rf o r m a n c e or le n

gth of life of a product which is not based on adequate test. (h) making a materially misleading representation to the public concerning the price at which a product or like products of goods have been or are ordinarily sold. (i) giving false or misleading facts disparaging the goods, services or trade of another person. The mode of representation or statement to the public may be by any method. It will be enough if the statement comes to the knowledge of the buyer of those goods etc. The representation may appear on the article or on its wrapper or container or on anything on which the article is mounted. 2. Sale offer of bargain price r'This includes advertising for supply, at a bargain price, goods or services that are not intended to be offered for supply at the price for a reasonable period or reasonable quantities. ^ (21) Schemes offering Gifts or Prizes: This category includes : (a) offering gifts or prizes or other items with the intention of not providing them and conducting promotional contests; (b) the conduct of any contest, lottery or game of chances, etc.

onco mpl ian ce of pre scri bed Sta nda rds: Thi s cate gor y incl ude s cas es whe re goo ds are sold for use by con sum ers kno win g or hav ing reas on to beli eve that the y do not co

( 2 2 ) N

mply with the standards prescribed by some competent authority. The prescribed standard may relate to performance, composition, contents, design, construction, finishing or packing as are necessary to prevent or reduce the risk of injury to the person using the goods, (23) Hoarding, destruction or refusal: The fifth and last category of unfair trade practices includes cases of hoarding, destruction of goods or refusal to sell goods or services so as to raise the cost of those or similar goods. Ingredients of Unfair Trade Practices (24) The trade practices must consist of any of the practices listed as above. (25) The purpose of such trade practice must be to promote the sale, use or supply of any goods or provision of any services. (26) The trade practices must have caused loss or injury to the consumer whether by eliminating or restricting competition. Restrictive Trade Practice -' Sec. 2(nn) of the Consumer Protection Act defines "Restrictive Trade Practice" as any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as a condition precedent for buying, hiring or availing of other goods or services.

Whi le the "Re stric tive Tra de Prac tice " cov ered und er C.P. Act relat es to tie up sale s of slo w mov ing goo ds with fast mov ing goo ds, Sec. 2(o) of MR TP Act has a wid er amb it whi ch cov ers all prac tice s whi

ch prevent distort or restrict competition and obstructs free flow of goods and services or obstruct free flow of capital and resources in to production. / ^^NSUMER DISPUTES REDRESSAL AGENCIES For the purpose of speedy and simple settlement of 'consumer's disputes' section 9 of the Act, 1986 provides for the establjshroejjtjpf the following three Consumer Disputes Redressal Agencies. A "Consumer Disputes Redres.sal Forum" to be known as the District Forum established by the State Government in each district of the State by notification.

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B.Com Business

A "Consumer Disputes Redressal Commission" to be known as State Qojuwissien-esiablhbM by the State Government, with the prior approvaYoTthe Central Government, in the State by notification! and A "National Consumer Disputes Redressal Commission" to be known as National CommissioM established by the Central Government by notification. Thus, the Act envisages a hierarchy of three Redressal Forums :,^f)~DTStrict Forums, (2) State! Commissions and (3) National Commission. These are quasi-judicial, bodies.- - -i _-~-~~~ ~~C^>ISTRICTFORUM^/ \r District Forum means a Consumer Disputes Redressal Forumx establishedi undefrgecjion 9 (2)41 the Comsmra^FFS^ SfiuTbymeansofa notification. Jf re^sDi(jhIje-aiidHge^^ than_one_district forum in a district. As per the amended Act, 1993, permission of the Central Government is ^ot necessary for establishing^ district forum. Composition of the District Forum/: According to section IQuf the-Act, each district forum shall I 'consist of: ffl a person who is, or has been orjsjjualified to be aDistrict Judge shall be^aerrrmateo' by I the State GovernmenFaTTous4rafH3glfiej?/^^ field of I education, trade or commerce, law etc. and (iii) a lady social worker, *>"~ ^ Appointments to the State Commission shall be made by the State Government on the I recommendation of a Selection Committee consisting of the President of the State Committee, the | Secretary - Law Department of the State and the Secretary in charge of Consumer Affairs in the State. I Every member of the District Forum shall hold office of a term office 5 yedrs or upto the age of 65 \ years, which ever is earlier. Of course, a member may resign by giving a notice in writing to the State Government where upon the vacancy will be filled up by the State Government. The salary or honorarium and other allowances payable to members, and their conditions of service may be prescribed by the State Government. A member shall not be eligible for re-appointment. Pecuniary and Territorial Jurisdiction of the District Forum : Section 11 provides for the jurisdiction of the District Forum under two criteria: Pecuniary and Territorial. The district forum enjoys jurisdiciton to entertain complaints where the value of goods or the services and the compensation, if any, claimed, does not exceed Rs. 20 lakhs. A complaint can be filed either at the place where the opposite party resides or carries oh business or at the place where the cause of action arises. In case of action arises also at the place where the product is sold. In the case, Consumer Education and Research Society Vs. Canara Bank, it was held that a banking company to be proceeded against the district forum where its branch was located. Manner of making a Complaint and Complaint by Whom A complaint, in relation to any goods sold or delivered, or any service period, may be filed with a District Forjm by any of the following : The consumer to whom such goods are sold or delivered, or such services provided, any recognised consumer association, whether the consumer is a member of such association or not, the Central or the State Governments, any consumer or consumers on behalf of a number of consumers

having same interests. Every complaint shall be accompanied by a fee (prescribed by the Consumer Protection (Amendment) Act, 2005) as given below:

The Consumer Protection Act, 1986

117 Eees prescr ibed for every compl aint filed under Sectio ns 12(1) and 21(1) of the Act

Procedure on Receipt of Complaint

D i s t r i c t F o r u m ( i ) U

below poverty line holding Andyodaya Anna Yojana " (ii) Upto Rs. 1 lakh other than cited above in (i) (iii) Above Rs.l lakh upto Rs.5 lakh (iv) Above Rs.5 lakh upto Rs. 10 lakh *NLJ s (v) Above Rs.10 lakh to Rs.20 lakh v State Commission (vi) Above Rs.20 lakh upto Rs.50 lakh National Commission (vii) Above Rs.50 lakhs upto Rs.l \ crore (viii)Above Rs.l crore of the Act. / ' - /The District Forum has to observe the following procedure as detailed in section 13 (i) The first step on receiving a complaint is to refer a copy of the complaint to the opposite party directing liim^to give his version of the case within a period ofW-day^.When the opposite party denies or disputes the "allegations

e e s ( R s . )

con tain ed in the corr rpkr int, or omi ts or fail s to take any acti on to repr ese nt his cas e wit hin the 30 day s or exte nde d peri od of 15 day s, a disp ute aris es, the Dist rict For um shal l pro cee d to settl e the

consumer dispute. After these preliminary steps, the Forum has to follow the procedure prescribed in section 13 of the Act. ii) The complaint may relate to the defects of goods. The term 'defect' means any fault, imperfection or sr^tcoliiing~nTthe qualityTquantity, purity or standard which is required to be maintained by any law in force or which the trader claimed that his goods possessed. If the alleged defect in the goods is such that his goods possessed. If the alleged defect in the goods is such that it cannot be determined without proper analysis or test of the goods, the Forum should obtain a sample of the goods from the complainant. The sample of goods should be protected by a seal. The sample of goods received must be sent to 'appropriate laboratory' along with a direction that the goods should be tested or analysed for the alleged defect. The time allowed to the laboratory is 45 days. The District Forum/State Commission may require the complainant to deposit with it such amount as may be specified towards payment of fees to the 'appropriate laboratory' for the purpose of carrying out the necessary analysis or tests. [Section 13(l)(d)]. The amount so deposited shall be remitted by them to the appropriate laboratory to enable it to carry out the analysis and send the report. (jrjj On receipt of the report from thejaboratory^ the Forum should send a copy of it fo the opposite party^alon^_with such rf.marlfSj as-the District

For um ma y feel nec ess ary. J $\) If any part y disp utes the corr ectn ess of the rep ort or the corr ectn ess of the met hod s of anal ysis , the For um shal l req uire him to sub mit his obj ecti ons in writ ing.

(y^Before issuing any final qrdej: in thejaatter, the Forum will provide an opportunity to both parties to present their views about the report. The Forum shall proceed to settle the dispute on the

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B.Com Business Law basis of allegations, counter allegations and the evidence produced by the parties in support of their I case. Where the opposite party does nothing in response to the complaint, the matter may be decided I on the basis of the evidence produced by the complainant. The proceedings of the Forum in compliance I with the procedure laid down by the Act are to be regarded as valid. The validity cannot be questioned I on the ground that the principles of natural justice have not been complied with. Limitation Period for filing of Complaint: Section 24A provides that the District Forum, the State Commission, or the National Commission shall not admit a complaint unless it is filed within two ! years from the date on which the cause of action has arisen. However,

where the compl ainant satisfie s the Forum /Com missio n as the case may be, that he had suffici ent cause for not filling the compl aint within one year, such compl aint may be entert ained by it after record ing the reason s for condo ning the delay. Admi nistrat ive Contr ol S ection 24-B provi des that

the National Commission shall have administrative control overall the State Commission in the matter of calling for periodical returns regarding the institution, pendency and disposal of cases, issuance of instructions regarding adopting of uniform procedure in hearing of matters, serving copies of documents, translation of judgements etc. and generally overseeing the functioning of the State Commission/Dis trict fora to ensure that the objects and purposes of the Act are served in the best possible manner. The State Commission shall have administrative control over all the District fora within its jurisdiction in all the abovereferred matters. indings of A the Forum

If the Forum is convinced that the goods are

really defecti ve, or that the compl aint about the servic e impro ved, the Forum shall have to order the opposi te party to do one or more of the follow ing things : f / t o r e m o v e t h e d e f e

ct pointed out by the laboratory from the goods in question. */to replace the goods with new goods of a similar description, which should be free from any defect. V to return to the complai nant the price of the goods, or the charges oservic es paid by the complai nant. JC to pay such amount as may be awarded compens ation to the consume r for any loss or injury suffered by the consume r due to the negligen ce of the opposite

p ar ty . f t o r e m o v e t h e d e f e c t s o r d e f i c i e n c i e s i n t h e s e r v i c e

s in to offer the hazardous goods for sale. 'ithdraw the hazardous^oG^itom being offered for sale. provide for adequate costsjtgjtarties. question. yto discontinue the unfair trade practice or the restrictive trade practice or not to repeat ^"'them. - The order for the District Forum shall be signed by it's president and the member or members who conducted the proceedings. In case of difference of opinion, the order of the majority of the members shall be the order of the Forum.

The Consumer Protection Act, 1986

119 E n f o r c e m e n t o f o r d e r s : T h e o r d e r s o f D i s tr i c t F o r u m a r e e n f o r c e

able in the manner of an order or decree made by a civil court, in a civil suit. If the forum is not able to execute its order, it may forward the same to the court for execution. The court to which the order is sent, shall then execute the orders as if it were a decree or order sent to it for execution. /Appeal : Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of 30 days from the date of the order. The period or 30 days would be computed from the date of receipt of the order by the appellant. The appeal to the State Commission is to be made in such form and manner as may be prescribed. Where no appeal has been preferred, the orders of a District Forum shall be final. In Kohinor Carpets. Vs. Rajendra Arora, Haryana, it was held that a penalty become final in the absence of any appeal against it. ^ Pjyialties : Every trade or a person against whom complaint is made is bound to comply with the order ofjhe District Forum. If a trader fails to comply with the order, he shall be punishable. with imprisonment for a minimum duration ofonejrumlh and maximum-ofSjysar^ot

w i t h m i n i m u m f i n e o f R s . 2 0 0 0 ' a n d m a x i m

um ofRs. 10,000 or b o t h , w i t h i m p r i s o n m e n t a n d f i n e a s

m e n t i o n e d a b o v e . P o w e r s o f t h e D i s t r i c

t F o r u m i7

For the purposes of settling the disputes under section 13, the District Forums have been vested I with the same powers as are vested in a civil court under the Code of Civil Procedure, 1908. Such powers I are enjoyed by the Forum in respect of the following matters. (27) the summoning and enforcing the attendance of any defendant or witness and examining the [ witness on oath. (28) the discovery and production of any document or other material object producible as evidence. (29) the reception of evidence on affidavits. (30) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory [ or other relevant source. (31) issuing of any commission for the examination of any witness. (32) dismiss a complaint which appears to have been filed frivolously or with a view

to cau se ve xat ion , or de r the co mp lai na nt to ma ke pa ym ent of co st, not ex ce edi ng Rs. 10, 00 0 to the (u nd er the Se c. 26 of the Ac t) op po sit e pa rty. ( 3

The authorised officer may seize such books, papers, documents or commodities as are required for the purpose of this Act. (34) The Officer has a right to exercise power of entry and search of any premises of the opposite party. Isaac Mathew Vs. Maruti Udyog Ltd.: A car which was damaged and was subsequently repaired and supplied as new car was ordered to be replaced and some compensation for inconvenience was also allowed. Kailash Kumari Vs. Narandra Electronics : A defective television was ordered to be replaced along with compensation. Vinod Seth Vs. Rathan Road Lines : The carrier was held liable for loss of goods and for mental agony.

120 Lnw

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Bnany. Vs. Shenoy, Karnataka S.R.T.C. Karnataka : The passenger who could not be conveyed to his destinatin owing to road obstruction was allowed to recover from the bus operators his ticket money to and from. -ESTATE COMMISSION State Commission is a "Consumer Disputes Redressal Commission" established by the State Government with the prior approval of the Central Government, in the State notification under Section 9(b) of the Consumer Protection Act. Composition of the State Commission : According to Section 16(1) of the Act, each State Commission shall consist of the following : a person who is or has been a judge of High Court^shall be appointed, on the recommendation of a Selection Committee,by the State Government and shall be itspresident. two other members, who shall be persons of ability, integrity and standing. They shall have adequate knowledge or experience of or have shown capacity in dealing with, problems I relating to economics, law, commerce, accountancy, industry, public affairs or administration. One of such members shall be a woman. The provision to this clause states that every appointment made under this clause shall be made by the State Government on the recommendation of a Selection Committee consisting of the President of the State Commission, Secretary-Law Department of the State and Secretary in charge of Consumer Affairs in the State. Under Section 16(2), the State Government has the power to decide on the salary or honorarium and other allowances payable to the members of the State Commission and the other terms and conditions of service. Every member of the State Commission shall hold office for a term of 5 years or upto the age of 67years, whichever is earlier and shall not be eligible for reappointment. Pecuniary and Territorail Jurisdiction : According to Section 17 of the Act, subject to the other provision of this Act, the State Commission shall have jurisdiction in the following matters. (35) To entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 lakhs, but does not exceed Rs. 50 lakhs. (36) To entertain appeal against the orders of any District Forum within the State, and (37) To call for the records and pass appropriate orders in any consumer dispute which is pending before and has been decided by any District Forum within the state. Therefore, the State Commission's jurisdiction may be original, appellate or revisional. In respect of (3) above, the State Commission may reverse the orders passed by the District Forum on any question of fact or law or correct or error of fact of law made by the Forum. In respect of the original jurisdiction of the State Commission, Section 17 only prescribes pecuniary limits. No territorial limits have been fixed for the exercise of original jurisdiction under the Act though the provision contained in Section 11(2) of the Act apply mat is mutandis in the matter of entertaining original complaints by the State Commission as was held by the National Commission in Indian Airlines Vs. Consumer

Education and Research Society (1992). The territorial jurisdiction of the State Commission, therefore, extends to the territorial limit of the State.

fa Consumer Protection Act, 1986

121

In the exercise of its appellate jurisdiction, the State Commission may entertain appeals only I binst the orders of any District Forum within the State. Similar condition also applies in respect of the State Commission's power to revise orders of the District Forums-only orders of the District Forum nithin the State may be subject to revision by the State Commission. Procedure applicable to State Commission : The procedure prescribed for the working of District Forums by Sections 12, and 14 and the rules framed under these sections, with suitable modifications, isalso applicable to State Commissions. I Findings of the State Commission According to Section 13 of the Act, if the State Commission is convinced that the goods are really defective or that the complaint about the service is proved the State Commission shall issue an order to the opposite party to take one or more of the following things: * to remove the defect pointed out by the laboratory from the goods in question. to replace the goods with new goods of a similar description, which should be free from any defect. to return to the complainant the price of the goods, or the charges of services paid by the complainant. to pay such amount as may be awarded compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party.

to remove the defects or deficiencies in the services in question. to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them. not to offer the hazardous goods for sale. to withdraw the hazardous goods from being offered for sale. to provide for adequate costs to parties. Appeal: Any person aggrieved by an order made by the State Commission may prefer an appeal against such order to the National Commission within a period of 30 days from the date of the order. The appeal must be made in such form and manner as maybe prescribed. The procedure for hearing appeal is laid down by the Consumer Protection Rules, 1987. National Commission may, however, entertain an appeal after the expiry of the said period of 30 days if it is satisfied that there was sufficient cause for not filing it within that period. Where no appeal has been preferred, the order of the State Commission shall be final. However, the order of the State Commission on appeal made against the order of a District Forum shall not be entertained by the National Commission. Enforcement of Orders : The orders of a State Commission are enforceable in the manner of an order or decree made by a Civil Court in a civil suit. If the State Commission is not able to execute its order, it may forward the same to the civil court for execution. Penalties : Every trader or a person against whom complaint is made is bound to comply with the order,of the State Commission. If a trader fails comply with the order, he shall be punishable as under : with imprisonment for a minimum period of one month and maximum of 3 years; or

 with minimum fine ofRs. 2000 and maximum ofRs. 10,000, or both with imprisonment and fine as stated above.

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^/ NATIONAL COMMISSION In exercise of the powers conferred under sec 9(c) of The Consumers Protection Act, the Central Government established a "National Consumer Disputes Redressal Commission" to be known asthtl 'National Commission' by notification. Composition of the National Commission According to Section 20(1) of the Act, the National Commission shall consist of the following:) (a>-A person who is or has been a judge of the Supreme Court shall be appointed by tJieXentrall Government in consultation with the Chief Justice of India. "He shall be its president. Four other members shall be persons of ability, integrity anj^juajidjnj^ T^ adequate e'xperlentre-oftjr have shown capacity in dealing with problems relating to economics. I law, commerce, accountancy, industry, public affairs or adim'njstrajjon. One ofjjicmiaiailfel a woman. A sitting judge of the Supreme Course can he-appointed onlylmer consulting the I h ief Justice of the Supreme Court. Every member of the National Commission shall hold I office for a term of 5 years of upto 70 years of age whichever is earlier and shall not be eligible I for reappointment. Every appointment made under this clause by the Central Government shall be made on the I recommendation of a Selection Committee consisting of a Judge of a Supreme Court to be nominated by 1 the Chief Justice of India, the Secretary in the Department of Legal Affairs and the Secretary in charge I of Consumer Affairs in the Government of India. Section 20(2) gives power to Central Government to fix the salary/honorarium and other allowances I payable to the members as well as the other terms and conditions of their service. Every member of the I National Commission shall hold office for term of five years or upto seventy years of age, whichever is I earlier and shall not be eligible for reappointment. Jurisdiction of the National Commission : The jurisdiction of the National Commission shall be as under: (38) It can entertain complaints where the value of goods or service and compensating, if any, claimed exceeds Rs. 50 lakhs. (39) It can entertain appeals against the orders of any State Commission, and (40) It can call for the records and pass appropriate orders in any consumer dispute pending before or has been decided by any State Commission. It can do so where the State Commission has exercised jurisdiction not vested in it by law or has acted in the exercise of its jurisdiction illegally or with material irregularity. Therefore, the jurisdiction of the National Commission could also he categorised as original, appellate and revision as that of the State Commission. Procedure applicable to the National Commission : The National Commission shall, in the disposal of any complaints or of any proceedings before it, have the powers of a Civl Court. It shall follow such procedure as may be prescribed by the Central Government. The procedure to be followed by the National Commission has been prescribed by the Consumer Protection Rules, 1987 made by the Central Government. The procedure to be followed is as under: A complaint containing the following particulars shall be presented by the

complainant in person or by his agent to the National Commission or be sent by registered post to the National Commission: (a) the name, description and the address of the complainant.

I The Consumer Protection Act, 1986 123 (b)the name, description and address of the opposite party or parties. (41) the facts, relating to complaint, and when and where it arose. (42) documents in support of the allegations contained in the complaint. (43) the relief which complainant claims. Procedure on receipt of complainant: The National Commission on receipt of a complaint, has to observe the following procedures as outlined in section 13 of the Act: A. Refer a copy of the complaint to thon^ipy.tP pnrty Hirppting him to give his version of the case w^ithin_a_rjejiDApX30_^ays or such extended period not exceeding 15 days. B. Where the opposite party, on receipt of a complaint copy, denies or disputes the allegation contained in the complaint, the omits or fails to take any action to represent his case within the time given by the National Commission, the National Commission shall proceed to settle the consumer dispute in the manner provided by the Act. C If the complaint relates to some defects in _the_goods, which cannot be determined without proper analysjs_oxJe^tjif-tr4e-geods, the NationjalJ^mmissiolTsTTaTl obtain a sample of the goods from the complainant and refer the sample to the appropriate laboratory for analysis or test. D. The appropriate laboratory has to analyses or test the sample received to find out whether such goods suffer from any defect alleged in the complaint, within 45 days of the receipt of the reference or with such extended period as may be granted by the Commission the laboratory shall submit its report the National Commission. E On receipt of the report from the appropriate laboratory, the National Commission shall forward a copy of the report along with such remarks as the National Commission may feel appropriate to the opposite party. F. If any of the parties dispute the correctness of the findings of the laboratory, or disputes the correctness of the methods of analysis or test adopted by the laboratory, the National Commission shall require the opposite party or the complaint to state in writing his objections in regard to the report made by the laboratory. G The National Commission, before issuing any final order in the matter, will provide an opportunity to both parties to present their views about the report of the laboratory. On the date of hearing, it shall be obligatory on the parties or their agents to appear before the National Commission. Where the complainant or his agent fails to appear before the National Commission on the date of hearing, the National Commission may in its discretion, either dismiss the complaint for default or decide its in merits. Where the opposite party or its agent fails to appear on the date of hearing, the National Commission may decide the complaint ex parte. Findings of the National Commission : If the National Commission is convinced that the goods were really defective or that the complain about the service is proved, it shall order the opposite party to do one or more of the following things :

 to remove the defect pointed out by the appropriate laboratory from the goods. to replace the goods with new goods of a similar description, which shall be free from any defect.

124

B.Com Business to return to the complainant the price of the goods or the charges for services paid by complainant. to pay to the complainant a sum of money by way of compensation for any loss oriitj suffered by the consumer due to the negligence of the opposite party.

to remove the defects or deficiencies in the services in question. to discontinue the unfair trade practice or the restrictive trade practice or not to re1 them. not to offer the hazardous goods for sale. to withdraw the hazardous goods from being offered for sale. to provide for adequate costs to parties. Appeal: An appeal against the orders of the National Commission can lie to the Supreme Court] An appeal to the Supreme Court can be made within a period of 30 days from the date of the order? National Commission. The Supreme Court may permit an appeal even after the expiry of the prescribj period if there was a sufficient cause for not being able to file an appeal in time. Finality of the Orders : Where no appeal has been filed against the order of the National Commission, the same shall be final. Enforcement of Orders : Every order made by the National Commission may be enforced in the same manner as a decree or order made by a Civil Court. Penalties : Every trader or a person against whom complaint is made is bound to comply with i order of the National Commission. If a trader or a person fails to comply with the order, he shall be punishable. with imprisonment for a minimum period of one month and maximum of 3 years, or with minimum fine ofRs. 2000 and maximum ofRs. 10,000, or both, (with imprisonment and fine as stated above) According to Section 19 of the Consumers Protection Act, a person aggrieved by an order of the State Commission can prefer an appeal against such order to the National Commission within 30 days from the date of the order in such form and manner as may be prescribed. The procedure for hearing the appeal is laid down by the Consumer Protection Rules, 1987. Procedure for hearing an appeal 1. Memorandum shall be presented by the appellant or his agent to the National Commission in person or be sent by registered post to the Commission. 2 The memorandum shall be in legible hand writing, preferably typed. The memorandum shall include grounds of appeal without any argument or narrative. The grounds must be numbered consecutively. (44) The memorandum shall be accompanied by a certified coy of the order the State Commission appealed against. It shall also be accompanied by any of the documents as may be required to support grounds of objection stated in the memorandum. (45) The appellant shall submit six copies of the memorandum to the Commission for office use. (46) On the date of hearing, all the parties or agents must appear before the

National Commission.

The Consumer Protection Act, 1986

125 6. T h e a p p e l l a n t s h a l l n o t , e x c e p t b y l e a v e o f t h e N a t i o

nal Commission, urge or be heard in support of any ground of objection not set forth in the memorandum but the National Commission, in deciding the appeal, may not confine to the grounds of objection set forth in the memorandum. Provided that the Commission shall not rest its decision on any other ground than those specified in the memorandum unless the party who may be affected thereby, has been given an opportunity of being heard by the National Commission. (47) The National Commission may, on such terms as it deems fit and at any stage of the proceedings, adjourn the hearing of the appeal, but not more than one adjournment shall ordinarily be given and the appeal should be decided, as far as possible, within 90 days from the first date of hearing. (48) The order of the National Commission shall be communicated to the parties concerned free of cost. Appeal: An appeal to the Supreme Court, against the order of the National Commission in case of an appeal to it, cannot be made as per law. An appeal lies to the

Sup rem e Co urt fro m an ord er pas sed by the Nat ion al Co mm issi on. Ord er XX (F) of the Sup rem e Co urt Rue s, 196 6 pro vid es the foll owi ng pro ced ure for fili ng of app eals to the Sup

reme Court: (49) Subject to the provisions of Sections 4, 5 and 12 of the Limitation Act, 1963, the petition of appeal from the order of the National Commission shall be presented by an aggrieved person within 30 days from the date of the order sought to be appealed against. However, in computing the said period of 30 days, the time required for obtaining a copy of such order shall be excluded. (50) Petition of appeal shall recite succinctly and clearly all the relevant facts leading up to the order from which appeal is sought. The appeal petition shall also set forth in brief, objections to the order appealed from and other grounds relied upon in support of the appeal. The petition shall further state the date of the order appealed from as well as the date on which it was received by the appellant. (51) The petition of appeal shall be accompanied by the following : (i) an authenticated copy of the order in appeal.

(ii ) atl ea st 7 sp ar e set s of pe titi on an d th e pa pe rs fil ed wi th it. (5 2) I f t h e a p p e a l i

s registered, it is put up for hearing exparte before the Court. The Court may dismiss it either summarily or direct issue of notice to all concerned parties or make such order as the circumstances of the case may require. (53) A fixed court fee of Rs. 350 shall be paid on the petition of appeal. For the purpose of settling the disputes, under Section, 13 of the Consumer Protection Act, State Commission or National Commission shall have the same powers as are vested in the Civil Court under the Civil Procedures Code in the following matters : 1. the summoning and enforcing the attendance of any defendant and witness and examining the witness on oath.

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B.Com Business Lou (54) t he discovery and productio n of any document or other material object producible as evidence! (55) t he reception of evidence of affidavits. (56) t he requisit ion of the report of the concer ned analysi s or test from the appropr iate laborat ofl or other relevan t source. (57) i ssuing of any commissi on for the examinati on of any

w it n e s s, a n d ( 5 8 ) d is m is s al o f fr i v o l o u s o r v e x at i o u s c o m p la i n ts .

Consumer Protection Rules, 1987 framed by the Central Government have given additional powers! to the National Commission and State Commission : They are : 1. The National Commissi on or the State Commissi on shall have power to require any person: f (59) t o pro duc e bef ore and all ow to be exa mi ned and kep t by an offi cer of the Nat ion al) Co

m m is si o n o r t h e S t a t e C o m m is si o n s u c h b o o k s, a c c o u n ts d o c u m e n ts o r c o m m o d it

ies in] the cus tod y or un der the con trol of the per son so req uir ed des cri bed in the req uisi tio n. (60) t o fur nis h to an off ice so spe cifi ed suc h inf or ma tio n as ma y be req uir ed

f o r t h e p u r p o s e o f t h is A c t. 2. W h e r e d u ri n g a n y p r o c e e d i n g s u n d e r t h i s

Act, the Nation al Commi ssion or the State Commi ssion has any ground to believe that any book, paper, commo dity or docum ent which I may be require d to be produc ed in such procee dings are being or may be destroy ed, mutilat ed, J altered, falsifie d or secrete d, it may be written order authori se any officer to exercis e the power of entry and

s e a r c h o f a n y p r e m i s e s . S u c h a u t h o ri s e d o f fi c e r m a y a l s o s e i z e s u c h b o

oks, papers, docum ents or commo dities as are require d for the purpos e of this Act. CONSUMER PROTECTION COUNCILS The objects of the Consumer Protection Act are sought to be promoted and protected by the consumer protection councils established at the Central and State levels. The consumer protection council established at Central level is known as Central Council. The consumer protection council established at State level is known as State Council. CENTRAL COUNCIL The Central Government has constituted a Central Protection Council by

notific ation with effect from 1-61987. As per the Consu mer Protect ion Rules the Centra l Counc il consist of 150 membe rs. They are : (61) the M i n i s t e r i n c h a r g e o f D e p a rt m e n t

of Civil Suppli es in the Central Gover nment. He shall be the Chair man of the Central Counci l. (62) t he Minist er of State or Deputy Minist er in the Depart ment of Civil Suppli es in the Central Gover nment. He shall be the ViceChair man of the council . (63) t he Minister of Food and Supplies

i n S t a t e s . ( 6 4 ) e i g h t M e m b e r s o f P a rl i a m e n tF i

ve from the Lok Sabha and three from Rajya Sabha. (65) t he Commissi oner of scheduled castes and scheduled tribes. (66) 1 0 representa tives of women. 7. 20 representa tives of farmers, trade and industries.

The Consumer Protection Act, 1986 (67) 15 persons capable of representative consumer interests. (68) 35 representatives of the consumer organisation or consumers. (69) the Secretary in the Department of Civil Supplies. He shall be the members secretary of the Central Council.

127

Procedure of the Central Council The Central Council shall meet as and when necessary. Atleast one meeting of the council shall be held every year. The Central Council shall meet as at such time and place as the Chairman may think fit. It shall observe such procedure in regard to the transaction of its business as may be prescribed. For the purpose of performing its functions under the Act, the Central Council may constitute from amongst its members necessary working groups. Every working group shall perform such functions as are assigned to it by the Central Council. The findings of such working groups shall be placed before the Central Council for its consideration. The resolutions passed by the Central Council shall be recommendatory in nature. Objects of the Central Council Section 6 of the Consumers Protection Act, 1986 lays down the objects of the Central Council. The objects of the Central Council shall be to promote and protect the right of the consumers. (70) The right to he protected against the marketing of goods which are hazardous to life and property: For example, adulterated goods are dangerous to life as well as to property. The consumer is assured by this Act that if he has been victimised into purchasing goods which have injured his person or property, he will have simple, speedy and effective remedy under the hierarchy constituted under the Act. The subject matter of dangerous goods is generally taken care of under law of Torts. All such matters can now be taken before the authorities constituted under the Act. It has become an established principle that a producer sending goods into the market would be liable to the ultimate user if his person or property is injured in the normal use of goods. (71) The right to informed about the quality, quantity, potency, purity, standard and price of goods so as to protect consumer against unfair trade practices : This is intended to save the consumer from unfair trade practices like false and misleading descriptions about the nature and quality of the goods, and exaggerated statements about their power and potency. In all cases of unfair trade practices or restrictive trade practices, the consumer would have the option of either apply to the Monopolies Commission under the Monopolies and Restrictive Trade Practices Act, 1969 or the Redressal Agencies constituted under the Consumer Protection Act. Viz., (a) District Forum, (b) State Commission, (c) National Commission. (72) The right to be assured, wherever, possible, access to variety of goods at competitive price : The Central Council constituted under this Act has been charged with the responsibility or bringing about the organisation of markets and market practices in such a way that all dealers are supplied with a variety of goods for the benefit of consumer and that the goods with a variety are being offered at competitive prices. It is only then that the consumer will have success to variety and will be able to enjoy the benefit of competitive prices. (73) The right to be heard and to be assured that consumer's interest will receive due consideration at appropriate Forums: The Central Council is charged with the responsibility of assuring the consumers that they would be heard of right by the appropriate Forums and the consumers will receive due attention and consideration from such Forums.

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(74) The right to seek redressal against unfair trade practices, or unscrupulous exploitation^^ consumers : Three redressal agencies have been established to provide simple and speedy redressalti consumer disputes. These agencies have been empowered to give relief of specific nature and toawail compensation to consumers. They will observe the principles of natural justice. Their orders arefinl I unless appealed. (75) The right to consumer education : The consumer has been given the right to education bl I section 6 of the Consumer Protection Act, 1986. The Central Council has been charged with the I responsibility to provide to the people proper education in terms of their remedies under Act. People's I awareness is likely to prove a better for putting the trade on some level of discipline that of Governments I Controls. STATE COUNCIL The objects of every State Council shall be the same as those of the Central Council. The objects I of every State Council shall be to promote and protect within the State the rights of consumers as laid I down in action 6 of the Consumer Protection Act. Section 7 provides for the establishment of State Consumer Protection Councils by any State Government (by notification) to be known as Consumer Protection Council for (name of the State). The 1 State Council shall consist of a Minister incharge of consumer affairs in the State Government who shall I be its Chairman and such number of other official or non-official members representing such interests I as may be prescribed by the State Government. The State Council shall meet as and when necessary but I not less than two meetings shall be held every year. The procedure to be observed in regard to the I transaction of its business at such meetings shall be prescribed by the State Government. Consumer Protection Council. Vs. National Dairy Development Board: The complainant wanted 1 to known in what way the Dairy Board and using the imported palm oil. The Board was refusing to give ' the information on the ground that the disclosure was against the public interest. Without that information the complainant was to able to make out his case. It was held that the consumer had the right to the requisite information. REVIEW QUESTIONS I. What are the objectives of Consumer Protection Act, 1986? 2 Who is a 'Consumer'? Who is not a consumer under the Consumer Protection Act, 1986? (76) What do you mean by 'Service'? What services will come under the purview of the Consumer Protection Act, 1986? (77) What do you mean by 'Complaint'? Who can make a complaint and to whom a complaint can be made? (78) What do you mean by 'Unfair Trade Practices'? State its ingredients and instances. Support your answer with few decided cases. (79) What is meant by deficiency in service? (80) What are the consumer disputes redressal agencies provided under the Consumer Protection Act, 1986? (81) What is the nature and scope of remedies under the Consumer Protection Act? (82) What is the jurisdiction of the various forums/commissions for the purpose of Consumer Protection Act, 1986?

The Consumer Protection Act, 1986

129

(83) What is a 'District Forum'? Explain the procedure to be adopted by the forum on receipt of a complaint. (84) State the jurisdiction, powers and procedure and settlement of disputes by the National Commission. (85) State the jurisdiction, powers and procedure and settlement of disputes by the tate Commission. (86) State the objects and composition of the Central Consumer Protection Council and State Consumer Protection Council. (87) What are the rights of consumers and how the Consumer Protection Act, 1986 seeks to protect such rights of consumers? (88) Write short notes on (a) Defect in goods, (b) Deficiency in service, (c) Public interest complaints, (d) Consumer Rights, (e) Consumer Welfare legislations, (f) Unfair trade Practices, (g) Restrictive trade practices. 4-4-4-