2012

L & T FInance Mr. Anil Suverna

[Consumer Protection Act whose time has come]

An Idea

A few instances when a complaint may be made include losses caused to a consumer as a result of unfair trade practice, defect in goods, deficiency in services, charging in excess of price displayed etc. Once the complaint has been received the other party will be asked to give their version of the case. If the matter pertains to defective goods, the same may be sent to a laboratory for testing. If it relates to a service matter then both parties shall be asked to produce evidence in support of their claims. If the authority is convinced that the complaint is valid then it may order the producer to remove the defect, replace the goods, return the price paid by the consumer, or pay an amount to the consumer as compensation for any loss or injury suffered. An appeal may be made against such orders to the next highest authority If a trader or any person against whom an order has been made, fails to comply with the order then they may be fined or imprisoned. On the other hand if a complaint is found to be frivolous or malicious then the complainant may be fined. One of the major developments in the Consumer protection Act has been with respect to whether services provided by the medical profession, especially when it is a free service as in the case of government hospitals can fall under the act. It had been argued that technically such professions do not provide any contracts for services . The courts however keeping in mind the fact that the Act was intended to protect consumers have held that all professional services whether free or paid for would render a person a consumer under the Act.

Consumer Protection Act 1986  The Consumer Protection Act was enacted in 1986  Amendments were made in 2002.  The Act applies to the whole of India except the State of Jammu and Kashmir.  An Act to provide for the better protection of the interest of the consumers.  Establishment of Consumer Councils and other authorities for the settlement of consumers disputes. Provisions of CPA 1986 and Consumer Rights  Right to safety against hazardous goods and services  Right to be informed about quality, quantity, purity, standard, price  Right to choose from a variety at competitive prices  Right to be heard  Right to seek redressal  Right to consumer education Important Terms: Consumer Protection Act 1986

 Who is a Consumer?
 Two kind of consumers under the Act  Consumer of Goods   Buys any goods for a consideration. uses the goods with the approval of the person who has bought the goods for consideration.

Consumer of goods   Hires or avails of any services for a consideration. is beneficiary of services with the approval of the person who has hired the services for consideration.

Legal heir of consumer in case death of consumer of Goods and Services

 Who is not a Consumer?

y     A person is not a consumer if: He obtains the goods for resale or for any commercial purpose . Buys goods without consideration. Hires or avails of any services without consideration. Uses the goods without the approval of the person who has bought the goods for consideration. Is beneficiary of services without the consent of the person who has hired the services for consideration [sec. 2(1)(d)] He obtains service under a contract of personal service.

 Who is Person?
y     A person includes: A firm whether registered or not. A Hindu Undivided Family. A Co-Operative Society. Every other association or person whether registered under the societies Registration Act, 1860 or not(Sec. 2(1) (m)).

y What is Consumer Dispute?

Consumer dispute arises when a person against whom the compliant is filed with Consumer redressal forums denies the allegations in the compliant.  What is a Complaint?  A complaint is any allegation in writing made by a complainant that :  An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider; The goods bought by him or agreed to be bought by him suffer from one or more defects; The services hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect;

 

Goods which will be hazardous to life and safety when used Service which are hazardous or likely t be hazardous to the life and safety of the public when used, are being offered by the service provider What is a Complaint? A trader or service provider as the case may be has charged for the goods or for the services mentioned in the complaint, a price in excess of the price    fixed by or under any law for the time being in force; displayed on the goods or any package containing such goods; displayed on the price list exhibited by him by or under any law for the time being in force; agreed between the parties.

 

 Who can be a complainant?

Complainant before the Consumer redressal Forums can be:   A Consumer. Any voluntary consumer association registered under the companies act, 1956 or under any other law for the time being in force. The Central Government or any State Government. One or more Consumers. Legal Heir in case of death of the consumer.

  

 Consumer Protection Councils

y Central Consumer Protection Council (Central Council) The Central Consumer Protection Council is a body appointed by the Central Government in accordance with provisions of the CPA 1986.  Members  The Minister in charge of the Consumer Affairs in the Central Government, who shall be its Chairman, and other such official or non-official members representing such interests

 Meetings  The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year.

 State Consumer Protection Councils (State Council) The State Consumer Protection Councils is a body appointed by the State Government in accordance with provisions of the CPA 1986.  Members  The Minister in-charge of consumer affairs in the State Government shall be its Chairman Other such official or non-official members representing such interests as may be prescribed by the State Government, and such members, not exceeding ten, as may be nominated by the Central Government.

 Meetings  The State Council shall meet when necessary but not less than two meetings shall be held every year.

 District Consumer Protection Council (District Council) The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council in accordance with provisions of the CPA 1986.  Members   The Collector of the district shall be its Chairman Other such official or non-official members representing such interests as may be appointed by the State Government

 Meetings  The State Council shall meet when necessary but at least than two meetings shall be held every year. Consumer Disputes Redressal Agencies

 Consumer Disputes Redressal Agencies 1) A Consumer Dispute Redressal Forum at the District level. 2) A Consumer Dispute Redressal Commission at the State level. 3) A National Consumer Dispute Redressal Commission at national level.

 When can I file a case with Consumer Court?

 When your manufacturer and retailer or service provider provides you with faulty product or service, and denies to repair or compensate you for same, or not following terms of sales agreement, only then you can file case with Consumer Court.

 How do I file a complaint?  You or your authorized representative can file a case in the Consumer Court in person; or you can send the complaint (signed by you or your representative) by post to the appropriate Forum / Commission along with the court fee.

 In which city or state should I file my complaint?  Usually the case has to be filed where the company has its office, or carries on business. The case can also be filed wherever the cause of action wholly or partially arose.

 How do I make the payment of the Court fee?  The payment should be made through a Nationalized Bank Demand Draft duly crossed, drawn in favor of:  "President, Consumer Disputes Redressal Forum, (district name)" For District Forum "Registrar, State Consumer Disputes Redressal Commission, _ (Name of the State)" For State commission "Registrar, National Consumer Disputes Redressal Commission" National Commission For

 What information do I need to furnish while filing case with consumer court?        Name and full address of complainant Name and full address of opposite party Description of goods and services Quality and quantity Price Date & proof of purchase Nature of deception

Type of redressal prayed for

 What kind of relief am I likely to get if I file a consumer complaint?      Removal of defects in goods or deficiency in services. Replacement of defective goods. Refund against defective goods or deficient services. Compensation. Prohibition on sale of hazardous goods.

 Do I need a lawyer for filing a complaint in the Consumer Court?  No. The complainant (consumer) can himself or through his representative file and represent his case.

 Is there any period of time before which a complaint is to be filed?  Normally, a complaint is to be filed within two years from the date on which the cause for taking action arose.

 What should I do if I am not satisfied with the decision given by the consumer court?  Any person aggrieved by an order of any consumer court may file an appeal in the subsequent (higher) consumer commission within a period of thirty days from the date of the order. Delay in filing appeal may be condoned if there is sufficient cause. A person aggrieved of the order of the National Commission can file an appeal to the Supreme Court of India.

 Cases: Consumer Protection Act 1986

 In Provident Fund Commissioner Vs. Shiv Kumar Joshi (2000) the Supreme Court has held that an employee, who is a member of the Employees Provident Fund Scheme, is a consumer and duties performed by the Regional Provident Fund Commissioner under such scheme is service and thus, in case of delay in release of provident fund, complaint for deficiency in service, is maintainable.  In Registrar, University of Pune Vs. Mrs. Puja Pravin Wagh (1999) the complainant filed a complaint 3 1/2 months after the expiry of the limitation period of 2 years against the University of Pune for the wrong declaration of result. The reason for delay in filing the complaint given by the complainant was her pregnancy. The District Forum condoned the delay and awarded compensation of Rs. 25,000/- to the complainant. On appeal it was held that the fact of pregnancy was no justification for the delay. The complaint being time barred the order of the District Forum was set aside.  Super Engineering Corporation Vs Sanjay Vinayak Pant Kores (India) Ltd Vs Samir Purkayastha (1996) 4 CTJ 579 National Commission, in a given case a farmer had purchased seeds from a party. The seeds did not germinate. The other party took the plea that I was not a consumer. Whether purchase of seeds for the purpose of agriculture is purchase for commercial purpose? Purchase made for agriculture is not for commercial purpose. Therefore, the complainant is a consumer and entitled to seek redressal of his grievance in a Consumer Court against the party which supplied defective seed to him.

 JAGO GRAHAK JAGO An Advertisements issued by the government of India in public interest

Contacts
NATIONAL CONSUMER HELPLINE Call on toll free number 1800-11-4000 (from MTNL or BSNL) FOR CONSUMER COMPLAINTS complaints@core.nic.in

 Bibliography & Webliography

y y y y y y Business Law For Management -By. K.R. Bulchandani Law Of Torts http://www.ncdrc.nic.in/ http://www.fcamin.nic.in/ http://www.consumerhelpline.in/pages/jago-grahak-jago-video.asp http://www.akosha.com/consumer-complaints/content/faqs-consumer-complaints -By. Prakash K. Mokal