CONSUMER PROTECTION ACT

Complaint (within 2 yrs of cause of action or with more with reasoning)

Like Plaint in civil court
An allegation in writing with a view to get relief

SITUATIONS WHEN COMPLAINT CAN BE MADE

1. Unfair /Restriced Trade Practice by trader/service provider
Unfair Trade Practice means
any unfair or deceptive method/ practice adopted by a seller for the purpose of
promoting the sale,
use or supply of any goods or for the provision of any service. Such unfair trade
practice will include, inter alia making false or misleading representations about
the standard/quality/quantity/grade, falsely represents old goods as new goods,
non compliance of product safety standards, hoarding or destruction of goods, etc.
restrictive trade practices
Some of the agreements( 13 categories) under section 33 shall be considered to be restricted and
require registration.
2.
3.
4.
5.

Goods suffer from defects.

Service suffer from deficiency.
Price excess than displayed on packaging or literature/agreed/fixed by law
Hazardous goods and services without following the standards of safety.

Service means service of any description which is made available to potential users and
includes facilities in connection with banking, financing, insurance, transport, processing,
supply of electrical or other energy, boarding , lodging, construction, entertainment,
amuse,ment etc.
Complainant
(i)

the consumer to whom the goods are sold

(ii)

the consumer to whom the goods are agreed to be sold

(iii)

any user of such goods other than the purchaser to whom the goods were
delivered

(iv)

any user of such goods other than the purchaser to whom the goods were agreed
to be delivered

(v)

the consumer who has hired the goods for consideration

(vi)

any beneficiary of such services other than the person who hires the service for
consideration

(vii)

the consumer who in view of an agreement was entitled to such services.

(viii) any beneficiary of such services other than the consumer who in view of an
agreement was entitled to such services.
(ix)

Any recognised association of consumers.

(x)

Where there are numerous consumers having the same interest,one or more
consumer

Consumer
i) Buys any
partly paid
any user of
not include

goods or hires/ avails for a consideration which has been paid or promised or
and partly promised, or under any system of deferred payment and includes
such goods when such use is made with the approval of such person but does
a person who obtains such goods for resale or for any commercial purpose; or

Not for resale or commercial purpose (except self consumption in

activity/livelihood/self employment)
Exclusion:
(i0 free of charge
(ii) personal service
(iii) commercial purpose.; undertaking an objective which is to make profit.

economic

Contract of indemnity: takes care of compensation of loss and not any kind of profit and
therefore if insurance is taken for commercial dealings, the said is not for commercial
purpose and relief is available under the Act.

The purchase of vaccine by poultry farmer is a self employment and would be held to be
a consumer.[G Hanumanth Reddy v. Singh poultry Ltd]
The Purchaser of a flat from original allottee for the purpose of change of name in the
original records is a consumer.
The complaint relating to alleged non-issue of certain debentures and shares applied for
does not fall within the purview of the Consumers Protection Act [Sushila Agarwal v. ITC
Agrotech]
Prospective investor is not a consumer[Morgan Stanley mutual fund v Kartik Das-1994]
When there has been no arrangement of hiring of services for consideration, the
complainant cannot be regarded as a consumer [Shabina Motors v. Hero Honda Motor
Cycles Ltd.]
Commercial purpose
Purchase of jeep for the purpose of running it as a jeep. Held purchase for commercial
purpose. [ Smt Pushpa Meena v. Shah Enterprises]

Purchase of computer system for the purpose printing business- Machine found defectiveHeld no compliant lies as purchase of computer system was for commercial purpose.
[ Cadgraf Computers v. International Data Management Ltd.]
Complainant purchased Maruti Van for plying as taxi- held complaint not for commercial
purpose since the complainant had purchased it for the purpose of earning his
livelihood. [Sunita Rana v. Modern Automobiles]
A medical practitioner purchased an ultrasound machine for use in his clinic- He alleged
defects in the machine- Held the purchase was for commercial purpose.[ Dr. Pradeep
Dutta v. Larsen & Toubro Ltd.]
Complainants husband purchased Xerox machine for doing work for earning livelihoodHeld machine was purchased for earning livelihood and it cannot be said that the
machine was purchased for commercial purpose [ S. Anusuya through S.M.N. Consumer
Protection Council, Madras v. Methodex Systems Pvt. Ltd.]

Defect
Fault, imperfection/shortcoming in quality, quantity, potency, purity or standard required
by law, implied agreement or claimed by the trader in any manner
T.V. set purchased by a consumer developed black spot on its picture tube, defect was not
removed. Opposite party asked to replace the T.V. set [Rosemary v. Santhosh Agency]
A Pressure cooker burst and caused injury to the user. Held to be manufacturing defect.
[T.T.(P.) Ltd v. Akhil Bhartiya Grahak Panchayat]
Gas cylinder with excessive gas is defective goods [ Dayanand A Avasare v. Bharat
Petroleum Corporation Ltd.]
Wrist watch purchased by complainant, advertised as water resistant, stopped
functioning due to entry of water in rainy season- ordered refund of price with interest.
[Titan Industries v.Rajendra Naik, 2000]
Deficiency in service
Service:
Means service of any description which is made available to potential users and includes,
but not limited to, provision of facilities in connection with banking, financing, insurance,
transport, processing, supply of electrical or other energy, board or lodging or both,
housing construction, entertainment, amusement but does not include the rendering of
any service free of charge or under a contract of personal service.
Any fault, imperfection, shortcoming, inadequacy in the quality, nature or manner
required by law, implied agreement
The Municipal Corporation of Delhi was directed for restoration of hygienic water supply
as payments are made towards supply of water: supply of dirty water held to be
deficiency of service.[Municipal Corporation, Delhi v. Narendra Kumar]

Delay in delivering the phonogram due to incomplete address was held to be no

deficiency in service[Chief Superintendent, Central Telegraph Office v. Geeta
Sreenivasan]

The cancellation of flights due to non-availability of pilots held as deficiency in services

[ Air India Ltd v. M.K. Abdul Majeed]
Disconnection of electricity line after reasonable time of application and deposit of fees
amounts to deficiency in service[Nirmala v PSEB]
Delivery of air cargo to the addressee without presentation of Airways bill- Held
deficiency in service[ M/s. Leather Worldwide v. Air Canada]
Aircrafts left before time- Cancellation of return flight- Price of ticket not refunded- no
arrangement made for stay in hotel- Held deficiency in service. [M/s Jagsons Airlines v.
M.R. Shah & Ors]
Delay in sending of cheque for collection issued for premium of insurance- death of
insured in the meantime-Held bank deficient in service towards insurer. [United
Commercial Bank v. Smt. Anita Arun &Ors]
Cheque encashed but units of master gain not issued even after repeated requests- Held
deficiency in service. [Unit Trust of India v. Bandana Roychowdhury]
Refusal to issue no dues certificate after receipt of full payment- Held deficiency in
service. [ Ashok Leylend Finance Ltd. V. Smt. Krishna Yadav]
Delay in making payment of dues to the widow of an employee- held deficiency in
service. [ The Provident Fund Commissioner v. Sulekha]
Delay in Speed Post- Complainant send a speed post money order from Port Blair to
Calcutta which should have been delivered within 48 hours , but it was delivered after
delay of 9 days- Held Deficiency in service. [The Director, Postal Services, A&N Islands,
Port Blair and another v. Miss Shyamali Ganguly]
Consumer dispute:
"Consumer dispute'' means a dispute where the person against whom a complaint has been
made, denies or disputes the allegations contained in the complaint;

Central consumer protection council

By Central Governmnet, MOCA to be chairman and upto 150 members-term 3yrs- min.
one meeting in a year.
Objects:
1. Protection of rights of consumer
2. Protection from hazardous goods
3. Consumer awareness: information on quality, qtty.,use, standard and price
4. Access to variety of goods.
State consumer protection council
By SG, MOCA to be chairman 3yrs- min. two meetings in a year.
District consumer protection council by SG, district magistrate to be chairman
redressal machinery
( shall have the powers of civil court)
Redressal agency

Financial jurisdiction

District forum

Value of goods/services /
claim upto Rs. 20 lakhs

State commission

Above Rs. 20 lakhs to

Rs 1 crore

Territorial jurisdiction

The opposite party resides, carries on

office or the cause of action wholly or

Appeal lies within 30 days from the da

the District forum and the State comm
such powers if the District Commissio
(i) has exercised a jurisdiction
not vested in it by law
(ii) has failed to exercise the
jurisdiction vested in it
(iii) has acted in exercise of its
jurisdiction
(a)illegally
(b)with material irregularity
50% of the claim
or Rs.25,000/- whichever is
less to deposit.

National
commission

Above I crore

Appeal lies within 30 days from the da

State commission.the National commi
exercise such powers if the
State Commission :

(i) has exercised a jurisdiction not vest

(ii) has failed to exercise the jurisdictio
(iii) has acted in exercise of itsjurisdict
(a)illegally
(b)with material irregularity
50%
of the claim or Rs.35,000/whichever is less to deposit.
Appealable to Supreme court.
50% of the claim or Rs.50,000/whichever is less to deposit.
Redressal procedure
1. Copy to alleged party, who shall reply within 3o days
2. If not replies, case to disposed off ex-parte, on the basis of evidences available
3. Hearing of the other party and his objections to be noted the complainant shall be
given opportunity to counter
4. Testing in recognised laboratory; in case of service on evidence
5. The consumer for a do not have power to make interim relief final order may contain:
(i) remove the defects
(ii) replace the goods
(iii)return the price
(iv)award compensation
(v)remove deficiency
(v)discontinue unfair/ restrictive trade practice
(vi)adequate cost to parties
(vii)withdraw sale of hazardous goods.

Enforcement of Order
Failure/ omission/ delay in compliance of order of Consumer For a will
amount to an offence. The opposite party shall be punishable with
imprisonment upto 3 years and fine. Court may issue a certificate for the
amount to District collecter who will recover the amount as arrear of land
revenue.