Académique Documents
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( With amendments of the Act effected from 15.3.2003 and rules from 5.3.2004)
WHAT IS A COMPLAINT?
Complaint means any allegation in writing made my a compliant that : I. An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider; II. The goods bought by him or agreed to be bought by him suffer from one or more defects ; III. The services hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect;
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WHAT IS A COMPLAINT?
IV. 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
a) fixed by or under any law for the time being in force; b) displayed on the goods or any package containing such goods; c) displayed on the price list exhibited by him by or under any law for the time being in force; d) agreed between the parties .
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WHAT IS A COMPLAINT?
V. Goods which will be hazardous to life and safety when used are being offered for sale to the public
a) In contravention of any standards relating to safety of such goods as required to be compiled with, by or under any law for the time being in force; b) If the trader could have known with due diligence that the goods so offered are unsafe to the public;
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WHAT IS A COMPLAINT?
VI. 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 which such person could have known with due diligence to be injurious to life and safety.
A product is something you can touch, a service is an action performed by someone (labor). Example: If you buy a new battery for your car, that's a product. The installation of that battery is a service.
WHO IS A CONSUMER ?
Any person who buys goods or avails services for consideration Consideration may be fully paid, partially paid or fully promised to be paid or partially promised to be paid Any body who uses the goods or services with the consent of the consumer
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WHO IS A CONSUMER ?
Legal heir of consumer in case death of consumer Does not include any person who buys goods for resale or commercial purpose and services for commercial purpose However any person who buys goods for commercial use but exclusively for his livelihood by means of self employment is a consumer.
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WHAT IS A DEFECT ?
Fault Imperfection Shortcoming In the Quality Quantity Potency Purity Standards
Or
Which is required to be maintained by or under any law for the time being in force
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WHAT IS A DEFICIENCY ?
Fault In the Imperfection Quality Shortcoming Or Standard and Inadequacy Manner of performance
Which is required to be maintained by or under any law for the time being in force
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WHAT IS A SERVICE?
Service means service of any description, which is made available to potential users and includes, but not limited to the provisions of the facilities in connection with 1) banking 2) financing 3) insurance 4) transport 5) processing 6) supply of electrical or other energy 7) boarding or lodging or both 8) house construction 9) entertainment 10) amusement or 11) the purveying or new or other information But does not include the rendering of any service free of charge or under a contract of personal service
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As per the Act, the consumer protection councils have been established at Central, State and District levels to promote and protect the consumer rights. They are:
Right to Safety: To be protected against the sale of goods and services which are spurious/hazardous for the life. Right to Information: To know the quality, quantity, weight and the price of goods/services being paid for, so that one is not cheated by unfair trade practices. Right to Choose: To be assured, wherever possible, access to a variety of goods and services at competitive prices. Right to be Heard: To be heard and to be assured that the interest would receive due consideration at appropriate fora (forums). Right to Seek Redressal: To seek legal redressal against unfair or restrictive trade practices or exploitation. Right to Consumer Education: To have access to consumer education.
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1. Central Consumer Protection Council The Consumer Protection Act empowers the Central Government to establish a Central Consumer Protection Council consisting of the Minister in charge of consumer affairs in the Central Government as its Chairman and such number of other official and non-official members nonrepresenting such interests as may be prescribed. Under the Consumer Protection Council Rules 1987, the membership of the Council is restricted to 150 members including the Central Minister in charge of Consumer Affairs as the15 Chairman. The term of the Council is three
To monitor the implementation of the recommendations of the Council, the Central Government may constitute a standing working group from amongst the members of the council under the Chairmanship of the Member Secretary of the Council. The Council shall meet as and when necessary, but at least one meeting of the Council shall be held at such time and place as the Chairman may think fit.
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2. State Consumer Protection Council The Consumer Protection Act provides for the establishment of State Consumer Protection Councils by the State Governments. The State Council shall consist of a Minister in charge of consumer affairs in the State Government as its Chairman and such number of other official or non-official nonmembers representing such interests as may be prescribed by the State Government and ten nominees of the Central Government. The State Council shall meet as and when necessary but not less than two meetings shall be held every year at such time and place as the Chairman may think fit.
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3. District Consumer Protection Council In order to promote and protect the rights of consumers, within the district, the Consumer Protection Act, provides for the establishment of a District Consumer Protection Council in every district. It shall consist of the Collector of the district as its Chairman and such number of other official and non-official members representing such noninterests as may be prescribed by the State Government. It shall meet as and when necessary but not less then two meetings shall be held every year. The year. 18 Chairman shall decide the time and place of the
on a plain paper. It should containcontainThe name description and address of the complaints and the opposite party The Facts relating to complaint and when and where it arose. Documents in support of allegations in the complaint The relief which the complainants is seeking The complaint should be signed by the complainants or his authorized agent.
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Where to File a Complaint (depends upon the cost of the goods or services or the compensation asked)
District Forum: if it is less than Rs. 20 lakhs Forum: State Commission: if more than Rs. 20 lakhs but Commission: less then Rs. 1 crore National Commission: if more than Rs. 1 crore Commission:
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Who Can File A Complaint - A complainant in relation to any goods or services may be filled byby
A consumer or Any voluntary consumer association registered under the Companies Act, 1956 (1of 1956)or under any other law for the time being in force or The Central Government or any State Government; or One or more consumers, where there are numerous consumers having the same interest or In case of death of a consumer, his legal heir or representative A power of attorney (lawyer) holder cannot file a complaint under the Act.
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District Forum
National Commission
State commission
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1. District Forum Composition of the District Forum.-4[(I) Forum. Each District Forum shall consist of,of,(a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President; (b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely ::(i) be not less than thirty-five years of age, thirty(ii) possess a bachelors degree from a recognized university, (iii) be persons of ability, integrity and standing, and have adequate problems relating to economics, law, commerce, accountancy, industry public affairs or administration:
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has been convicted and sentenced to imprisonment for an offence which, in the opinion of the State Government, involves moral turpitude; or
(b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a 24 competent court; or
(d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e) has, in the opinion of the state Government, such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f) has such other disqualifications as may be prescribed by the State Government;)
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Jurisdiction of the District Forum.--( I) Subject Forum.--( to the other provisions of this Act, The District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed 2[ does not exceed rupees twenty lakhs]. A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,jurisdiction,(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or [carries on business or has a branch office or] personally works for gain, 26 or
(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or 2[carries on business or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or 2[ carry on business or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or (c) the cause of action, wholly or in part, arises. 27
Manner in which complaint shall be made.made. A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum byby(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided; (b) any recognized consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not; 28
(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or (d) the Central or the State Government, as the case may be, either in its individual capacity or as a representative of interests of the consumers in general.
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(2) Every complaint filed under sub-section (1) shall subbe accompanied with such amount of fee and payable in such manner as may be prescribed. (3) On receipt of a complaint made under sub-section sub(1), the District Forum may, by order, allow the complaint to be proceeded with or rejected: Provided that a complaint shall not be rejected under this sub-section unless an opportunity of subbeing heard has been given to the complainant: Provided further that the admissibility of the complaint shall ordinarily be decided within twentytwenty-one days from the date on which the 30 complaint was received.
(4) Where a complaint is allowed to be proceeded with under sub-section (3), the District Forum may subproceed with the complaint in the manner provided under this Act: Provided that where a complaint has been admitted by the District Forum, it shall not be transferred to any other court or tribunal or any authority set up by or under any other law for the time being in force.
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2. State Commission Composition of the State Commission.Commission. Each State Commission shall consist ofof(a) a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President: 1[Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;]
(1)
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(b) not less than two, and not more than such number of members, as may be prescribed, and one of who shall be a woman, who shall have the following qualifications, namely:namely:(i) be not less than thirty-five years of age; thirty(ii) possess a bachelors degree from a recognized university; and (iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration: Provided that not more than fifty per cent of the members shall be from amongst persons having a 33 judicial background.
Jurisdiction of the State Commission. Commission. Subject to the other provisions of this Act, the State Commission shall have jurisdictionjurisdiction(a) to entertainentertain(i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees 1 [exceeds rupees twenty lakhs but does not exceed rupees one crore ; ) and (ii) appeals against the orders of any District Forum within the State; and
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(b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State, where it appears to the State Commission that such District Forum has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity.
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(2) A complaint shall be instituted in a State Commission within the limits of whose jurisdiction
(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain; or (b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office or personally works for gain, provided that in such case either the permission of the State Commission is given or the opposite parties who do not reside or carry on business or have a branch office or personally works for gain, as the case may be, acquiesce in such institution; or 36
Procedure applicable to State Commissions. Commissions. [The provisions of Sections 12, 13 and 14 and the rules made there under] for the disposal of complaints by the District Forum shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the State Commission.
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3. National Commission Composition of the National Commission.-(I) The National Commission. Commission shall consist ofof(a) a person who is or has been a Judge of the Supreme Court, to Court, be appointed by the Central Government, who shall be its President; (b) not less than four, and not more than such number of four, members, as may be prescribed, and one of whom shall be a woman, who shall have the following qualifications, namely ::-
(i) be not less than thirty-five years of age; thirty(ii) possess a bachelors degree from a recognized university; and (iii) be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or 38 administration:
Provided that not more than fifty per cent of the members shall be from amongst the
Jurisdiction of the National Commission.-Subject to Commission. the other provisions of this Act, the National Commission shall have jurisdictionjurisdiction(a) to entertainentertain(i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees [twenty lakhs]; and (ii) appeals against the orders of any State Commission; and (b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity. 39
Questions
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What are the objects of the Consumer Protection Act, 1986? Define the following terms as used in the Consumer Protection Act, 1986: Complaint, Complainant, Consumer, Manufacturer, Restrictive trade practice, unfair trade practice What are the objects of the Consumer Protection Council? What is the function of Consumer Protection Council? Write a note on: Consumer disputes redressal agencies.
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7. What is the jurisdiction of a Consumer disputes Redressal Forum (the District Forum)? In what manner is a complaint filed before it? What procedure is followed by it after receiving the complaint? 8. Write a note on: Consumer disputes Redressal Commission (the State Commission) as to its composition, jurisdiction and procedure to be followed by it. 9. What is the composition of the National Consumer Disputes Redressal Commission (the National Commission)? What is Jurisdiction and what procedure does it follow to settle any complaint?
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FILING OF COMPLAINTS
A complaint may be filed by a) The consumer to whom the goods are sold or services are provided b) Any recognised consumer association c) One or more consumers with same interest
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FILING OF COMPLAINTS
The Fee for filing the Complaint for the district forum is as under
Sr. No. 1) 2) 3) Value of Goods / Service and Compensation Upto Rs. 1 lakh rupees Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 5 Lakhs and above but less than Rs. 10 lakhs Amount of Fees Rs. 100 Rs. 200 Rs. 400
4)
The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission (w.e.f. 5.3.2004.)
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a) b) c) d)
e)
e)
APPEAL
shall be filed within thirty days. Delay in filing appeal may be condoned if there is sufficient cause.
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LIMITATION PERIOD
Within two years from the date on which the cause of action has arisen.
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PENALTIES
Where a trader or a person against whom a complaint is made (or the complainant) fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, such trader or person (or complainant) shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both.
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In S. Ravisankar Vs. Aslo Steel Ltd., the order of the District forum was signed only by the President of the Forum. No other member had signed it. Section 14 requires that every order shall be conducted/signed by the President and at least one member. The present order was held to be invalid, and the matter was remanded to the District Forum.
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It has been held by the National Commission that the orders passed by the President of the State Commission sitting singly without the junction of any other member is contrary to Section 14(2) of the Consumer Protection Act, 1986. Such an order is invalid (Raj kumar Mangla Vs. R.S. Singh (1995)
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