The Consumer Protection Act, 1986 received the assent of the President on December, 24, 1986 but it was implemented w.e.f. 15th April, 1987. Its objects can be divided into two parts:
First.-
It seeks to promote and protect the rights of consumers, viz
(a) the right to be protected against marketing of goods which are hazardous to life and property;
(b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices;
(c) the right to be assured, wherever possible, access to an authority of goods at competitive prices;
(d) the right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and
(f) right to consumer education.
Second.-
It aims at helping the consumers in getting quicker or speedy redressal of their grievances through specially established quasi-judicial agencies instead of filing a suit in civil court. Court-fee is not required to be paid for filing the complaint.
This Act consists of 31 sections, covering various aspects of consumer protection rights.
The Act enables a consumer to fight with the wrongdoers who has cheated him by misleading information or inferior service or commodities.
As other Acts, this Act too gives meaning (definition) of certain words/phrases to elaborate it.
So, before proceeding to the provisions of this Act, it is necessary to explain certain terms and phases here.
Section 2(1)(b) defines complainant. It means:
(i) a consumer; or
(ii) any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or under any other law for the time being in force; or
(iii) the Central Government or any State Government; or
(iv) one or more consumers, where there are numerous consumers having the same interest;
(v) in case of death of a consumer, his legal heir or representative.
So, the literal meaning of complainant is a person who has some grievance or injury and makes an allegation against another. Section 2(1)(b) has a wider connotation and not just its literal meaning. It includes not only a consumer but also a voluntary consumer association registered under law under Central/State Government or one or more consumers who or which makes the complaint.
What is the difference between unfair trade practices and restrictive trade practices?
It means a grievance, distress, dissatisfaction, objection, wrong or injury. Under the Act, the term complaint has specified meaning and is limited by the definition given in section 2(1)(c), by which it means any allegation by the complainant in writing with a view to obtaining any relief in regard to the following matters:
"(c) "complaint" means any allegation in writing made by a complainant 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 of by him suffer from deficiency in any respect;
(iv) a trader or the 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;
(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 complied 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;
(vi) services which are hazardous or likely to be hazardous to 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;
with a view to obtaining any relief provided by or under this Act;"
So, the complaint under the Consumer Protection Act must contain allegation in writing with a view to obtain relief only in relation to the following matters-
(a) unfair trade practice adopted by a trader;
(b) defects in purchased goods;
(c) deficiency in services hired;
(d) charging of price in excess; and
(e) goods hazardous to life and property without giving any information as required by the provisions of any law.
In U.T. Chandigarh Administration v. Amarjeet Singh, MANU/SC/0389/2009 : AIR 2009 SC 1607, the court held that with reference to a public auction of existing sites, the purchaser is not a "Consumer", the owner is not a "trader" or "service provider" and the grievance does not relate to any matter in regard to which a complaint can be filed. Therefore, any grievance by the purchaser will not give rise to a complaint or consumer dispute and the fora under the Act will not have jurisdiction to entertain or decide any complaint by the auction purchaser against the owner holding the auction of site.
In Sujit Kumar Banerjee v. Rameshwaran, MANU/SC/7790/2008 : AIR 2009 SC 1188, the Apex Court held that the agreement between the parties is an agreement for construction of a residential building and delivery of an agreed percentage of the constructed area to the landowners and not a joint venture agreement. Consequently, the appellant is a consumer and respondents are 'service providers" and the complaint of the appellant is maintainable.
Unfair Trade Practice or Restrictive Trade Practice have been inserted by the Amendment Act of 1993.
In section 2(1)(r) of the Consumer Protection Act, Unfair trade practice has been defined as-
"unfair trade practice" means a trade practice which, for the
purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair
or deceptive practice including any of the following practices, namely:-
(1) the practice of making any statement, whether orally or in writing or by visible representation which,-
(i) falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model;
(ii) falsely represents that the services are of a particular standard, quality or grade;
(iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods;
(iv) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;
(vi) makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof:
Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence;
(viii) makes to the public a representation in a form that purports to be-
(i) a warranty or guarantee of a product or of any goods or services; or
(ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result,
if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out;
(ix) materially misleads the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made;
(x) gives false or misleading facts disparaging the goods, services or trade of another person.
Explanation.-
For the purposes of clause (1), a statement that is-
(a) expressed on an article offered or displayed for sale, or on its wrapper or container; or
(b) expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale; or
(c) contained in or on anything that is sold, sent, delivered, transmitted or in any other manner whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be so expressed, made or contained;
(2) permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement.
Explanation.-
For the purpose of clause (2), "bargaining price" means-
(a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or
(b) a price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold;
(3) permits-
(a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest;
(3A) withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final results of the scheme.
Explanation.-For the purposes of this sub-clause, the participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable time published, prominently in the same newspapers in which the scheme was originally advertised;
(4) permits the sale or supply of goods intended to be used, or are of a kind likely to be used, by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by competent authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods;
(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services;
(6) manufacture of spurious goods or offering such goods for sale or adopting deceptive practices in the provision of services."
In the case, Godrej and Boyce Mfg. Co. Ltd., (1991) 7 Camp Cas 224, unfair trade practice has been explained by Luthra J. as-"It is apparent from a plain reading of he aforesaid definition that unfair trade practice consists of making any statement, whether orally or in writing, or by visible representation in respect of any particular standard, quality or grade of goods, or which amounts to warranty or guarantee of a product. There is unfair trade practice, if aforesaid such statement or representation is wrong or false or the warranty or guarantee is not based on any adequate or proper test." Therefore, the unfair trade practice is completed as soon as the aforesaid statement is made.
Restrictive trade practice-Section 2(1)(m) has defined 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 to buying, hiring or availing of other goods or services."
In the case, Modern Suiting Ltd., the offering of equity shares linked to debenture was held to be prima facie a restrictive trade practice in the nature of a tie-up. Similarly, insisting that a consumer should buy a gas stove with the release of gas connection amounts to restrictive trade practice or sale of a back view mirror with the delivery of motorcycle is restrictive trade practice.
The Consumer Protection Act defines the term 'goods' in section 2(1)(i) as it has been defined in the section 2(7) of the Sales of Goods Act, 1930 which means - Goods is every kind of movable property other than actionable claims and money and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.
Defect has been defined in Consumer Protection Act in 2(1)(f) as - any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or implied, or as is claimed by the trader in any manner whatsoever in relation to any goods.
Defect in goods means lack or absence of something essential for its completeness. If a seller fails to deliver the goods which he agreed to sell.
In order to succeed in an action on the 'deficiency in service' there is a need to have service. It has been defined in section 2(1)(o) as-
'"service" means service of any description which is made available to potential users and includes, but not limited to, the 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 or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.'
The question emerged after passing of the Act whether 'professional' services like medical, have also been included in the above definition of 'service'.
The Supreme Court in the case Indian Medical Assn. v. V.P. Shantha, MANU/SC/0836/1995 : (1995) 6 SCC 651: MANU/SC/0836/1995 : AIR 1996 SC 550: 1996 (1) BLJR 281: (1996) 98 Bom LR 343: (1996) 86 Comp Cas 806 (SC): 1996 (1) CTC 119: (1995) 2 GLR 1806: JT 1995 (8) SC 119: 1996 (6) Kar LJ 689: (1996) 112 PLR 1: 1995 (6) SCALE 273: (1995) Supp 5 SCR 110: 1996 (1) UJ 664 (SC): (1996) 1 UPLB EC 227, held that the 'potential users' mentioned in the definition were employed to emphasise services which are in public use and thereby to cover all professions.
In the section 2(1)(o) 'free of charge' means when any organization or person who renders service without any charge whatsoever to every person availing of the service would not fall within the ambit of service and consequently, would be exempted from liability.
Another expression in the section "contract of personal service" cannot be confined to contracts or employment of domestic servants only. The expression 'personal service' has a well-known connotation and has been construed in the context of the right to seek enforcement of such a contract under the Specific Relief Act.
Trader charged price in excess
The term price has not been defined in the Consumer Protection Act, 1986. But, it has been defined in section 2(10) of the Sales of Goods Act which says that "money consideration for a sale of goods". A complaint can be made by the complainant under section 2(1)(c)(iv) where a trader has charged for the goods mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force or displayed on the goods or any package containing such goods.
Hence, a complaint can be made against a trader where he has charged price in excess of the price fixed by or under any law or displayed on the goods or any package containing such goods. But, it also happens that sometimes, price has not been fixed or the seller has sold the goods in loose then it appears that there is no remedy under the Act.
In a case, Dr. S.P.T. Rao v. M.D. Karnataka State Road Transport Corp., 1991 CPJ 641 (Karn), the Karnataka State Commission held that the correctness or otherwise of bus fare cannot be questioned before the consumer forum. It said-
"The fixation of fare is a matter to be decided by the State Transport Authority subject to the rules made by the Government according to section 67 of the Motor Vehicles Act, 1939. The correctness or otherwise of the bus fare fixed by the S.T.A. cannot be questioned before this Forum and it cannot be decided by the Commission. Charges in respect of the service cannot be questioned under the Act. It is only excess charges paid in respect of goods alone contrary to the fare fixed under any law, that can be ordered to be refunded by this Commission. Hence, we are clearly of the view that we cannot grant any relief to the complainant under the Act."
Goods hazardous to life and safety
This is the last ground on which the complaint can be made and it has been inserted in section 2(1)(c)(v) by the Amendment Act of 1993. It says that goods hazardous to life and safety when used, if, offered for sale to the public in contravention of the provision of any law for the time being in force requiring traders to display information in regard the contents, manner and effect of use of such goods.
The main emphasis of this Act is an consumer and entire Act revolves around the consumer. Section 2(1)(d) of the Act defined consumer as-
'"consumer" means any person who,-
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purpose;
Explanation.-For the purposes of this clause, "commecial purpose" does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment;'
From the above provision, it appears that there are two distinct types of consumers-
First 2(1)(d)(i) -
those who buy any goods for consideration and
Second 2(1)(d)(ii) -
those who hire any services for consideration.
2(1)(d)(i) extends the concept of consideration not merely to one actually paid, but one which is merely promised or partly paid or partly promised and includes within its ambit every system of deferred payments.
2(1)(d)(ii) includes not only the actual hirer of the services but also any beneficiary of such services, if they are availed with the approval of the first mentioned person.
Under this category three kinds of persons are considered as consumers, viz.-
(a) person buying goods for consideration and consideration having been paid in full or promised or partly paid or partly promised;
(b) person buying goods under any system of deferred payment; and
(c) any user of such goods which has been purchased as under (a) or (b) above.
A person who obtains or buys goods for resale or for any commercial purpose is not a consumer within the meaning of section 2(1)(d)(i). Such persons have been excluded from the purview of this Act. Thus, a buyer of taxi who has purchased it for plying it on hire, or a purchaser of prototype setting machine for commercial purposes or any equipment for commercial use were not held consumers under section 2(1)(i) and they cannot get relief under this Act.
Amendment in section 2(1)(d)(i) in 1993-In section 2(1)(d)(i), an explanation has been added as-
Explanation.-
For the purposes of sub-clause (i), 'commercial purpose' does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment.
So, where a person purchases a sewing machine, or a taxi, or an auto-rickshaw, or a photostat machine or any other goods which are to be used by him exclusively for the purpose of earning his livelihood by means of self-employment, that will not be considered as 'commercial purpose' and such persons will be a consumer under this Act.
3. Deficiency in services: Some cases
In the case Chief Commercial Officer, Indian Airlines v. P. Lal Chand, III (1995) CPJ 134, the complainant, purchased the ticket from the Indian Airlines on which departure time was mentioned as 10.45 a.m. and when he reached the airport at 9.45 a.m. to catch the flight he came to know that the flight had already taken off at 9.20 a.m. The District Forum held the opposite party guilty of deficiency in service.
Define `deficiency in services' with the help of some relevant cases.
In Satish Bagdoria v. Airdoot International, III (1996) CPJ 96 (Chand SCDRC), the complainant purchased a ticket from the respondents, but the flight was cancelled and the complainant was not informed. The Forum held the respondent liable to refund the price of the ticket and pay compensation of Rs. 5000.
In the case, N.R. Nair v. Branch Manager, State Bank of India, I (1991) CPJ 648, a bank draft was dishonoured because it did not bear the signatures of two officials of issuing Bank. The Consumer Forum held it as deficiency in service. In another case Sankar v. Vijaya Bank, (1996) 1 CPJ (Kant SCDRC) it was held that dishonouring of cheque without any justification amounts to deficiency in service, and the Bank was held liable to pay compensation for the same for deficiency in the service.
In Gita Rani Chakraborty v. S.S.B. W.B.S.E.B., I (1997) CPJ 450 (WB) SCDRC, inspite of repeated requests, defective meter was not replaced. It was a case of negligence and deficiency in service and compensation of Rs. 1000 was awarded to the complainant for harassment and mental agony caused to him.
In the case Haryana State Electricity Board v. T.R. Poultry Farm, II (1996) CPJ 15 (NC), an electric transformer got burnt and the same was not replaced for 25 days. Due to lack of supply of electricity, 3080 birds in poultry farm of complainant died. The State Commission found it a case of negligence and deficiency in service and awarded a compensation of Rs. 75,000 to the complainant. On appeal, the National Commission affirmed the order of the State Commission and further awarded a cost of Rs. 2000 to the complainant-respondent.
In the case of Escon Pvt. Ltd. v. Karnataka Electricity Board, 1991 CPJ 450 (Kant), it was observed that when an electric supply company fails to supply electric energy at a particular voltage causing loss to the complainant, it amounts to deficiency in the supply of energy, no matter whether the energy is being supplied for commercial purpose, the complainant is not a consumer under section 2(1)(d)(ii) of the Act, but maintenance of electricity connection at minimum charges is a service, and even if supply of energy is for commercial purpose, complainant is a consumer within the meaning of section 2(i)(d)(ii) of the Act.
But, it was also held that mere fluctuation in the voltage by itself will not be treated as 'deficiency in service' without proof of negligence.
In Umedilal v. United India Assurance Co., III (1996) CPJ 112 (Chand. SCDRC), it was observed that fault of negligence in settling the claim by the insurance company constitutes deficiency. But, where the insurance company rejected a claim after investigation on the ground that the claim was false, it was held by the Forum that such a controversy between the parties could not be decided by the Forum. However, when the policy of insurance becomes inoperative due to the act of the State, any dispute between the insured and the insurer as to the amount payable to the insured due to the policy becoming prematurely inoperative cannot be construed as deficiency in service.
It was long debated whether medical profession should be covered under the expression 'service' as defined in section 2(1)(o) has been put to rest by the Supreme Court in the case Indian Medical Association v. V.P. Shantha, III (1995) CPJ 1 (SC): MANU/SC/0836/1995 : AIR 1996 SC 550. The Supreme Court held that section 14(1)(d) indicates that the compensation to be awarded is for loss or injury suffered by the consumer due to the negligence of the opposite party. A determination about deficiency in service for the purpose of section 2(1)(g) has, therefore, to be made by applying the same principle as is applied in an action for damages for negligence. As the expression regarding negligence was given in the section 2(1)(g), medical practitioners must be included within the ambit of the act and the service rendered by them is covered under
section 2(1)(o).
So, a patient who is aggrieved by the services or deficiency in treatment, either from private clinics or Government Hospital, is entitled to seek damages under the Consumer Protection Act. From the case, it emerged-
(1) Service rendered to patient by a medical practitioner by way of consultation, diagnosis and treatment, both medical and surgical would come within the ambit of 'service' under section 2(1)(o).
If, the medical service is rendered -
(a) free of charge of,
(b) under a contract of personal service, that will not fall within the ambit of 'service under section 2(1)(o).
The service rendered by a medical officer to his employer under the contract of employment would be outside the purview of 'service' as defined in section 2(1)(o) of the Act.
Following are the examples of 'deficiency in service'-
(i) a pair of scissors was left in the stomach of the patient during operation who died later on; Nihal Kaur v. Director, PGI Chandigarh, III (1996) CPJ 112 (Chand. SCDRC).
(ii) Uterus of a lady adged 40 years was removed without any justification; Lakshmi Rajan v. Malar Hospital Ltd., III (1998) CPJ 586 (TN SCDRC).
(iii) a patient had some difficulty in passing urine and his penis was cut off without any justification; C. Siva Kumar v. Dr. John Arthur, III (1998) CPJ 436(TN SCDRC).
In a case Harjot Ahluwalia v. Spring Meadows Hospital, II (1997) CPJ 98 (NC): MANU/SC/1014/1998 : AIR 1998 SC 1801, the facts of the case were that the complainant was the only child of his parents, suffering from high fever, hospitalized in the Spring Meadows Hospital, New Delhi. There he was administered certain medicines, and intravenous chloroquine injection by an unqualified nurse without prior test. Immediately after, the child suffered cardiac arrest. No oxygen could be given as it was not available in the hospital. The child suffered irreparable brain damage and consequently became immobile for whole of his life. The Supreme Court upheld the decision of National Commission where negligence of hospital was established and it was directed to pay compensation of Rs. 12.5 lacs to the minor child for his brain damage and Rs. 5 lacs to the parents. The Supreme Court further observed that the parents of the child were consumers having hired the services, and the child was 'a consumer' as the beneficiary of such services. Free services in hospitals and nursing homes where medical services are rendered free of charge to every body, and not to a few, will be excluded or will not fall within the ambit of the definition under section 2(1)(o) and the doctors/hospital will not be liable under the Consumer Protection Act, 1986.
In the case, Addl. Director, CGHS. v. Dr. R.L. Bhutani, the complainant was a retired Government servant who used to pay Rs. 9 per month towards Central Government Health Scheme. He and his wife were beneficiaries of CGHS. His wife was getting treatment for some ailment for which surgery was done. But, instead of improving, she got paralyzed. The National Commission held that the services under CGHS are rendered free of charge to everybody and under contract of service; such service is excluded from section 2(1)(o) and the complainant was not a consumer within the meaning of section 2(1)(d). The complaint was dismissed. The court further observed that the payment of Rs. 9 per month was only regarding administrative charges and not for treatment.
The Karnataka State Commission in K. Rangaswamy v. Jaya Vittal, 1991 CPJ 685 (Karn), held that the service offered by an advocate to his client is one under a contract of personal service. It cannot be service within the meaning of clause (o). Therefore, in such a situation as provision given in section 2(d) of the Act, the client will not be a consumer. In the case, R.R. Pal Gupta v. Ranjana, the National Commission held that if a lawyer who has charged the fees from his client but fails to appear on his clients' behalf in a court or tribunal, then it is a deficiency in service on his part.
In a case Union of India v. Nathmal Hansaria, 1 (1991) CPJ 308, the daughter of the complainants fell down while walking from one compartment to another through inter-connecting passage and died. The passage was not protected by grill. The State Commission awarded the compensation of Rs. 2 lacs for death of the girl-Kabita and Rs. 25,000 for mental agony to the parents of the girl. It was observed that there was deficiency in service of Railways. On appeal, the National Commission upheld the decision of the State Commission and also held that the death was accidental and not due to railway accident and that the jurisdiction of the consumer fora was not barred under sections 13 and 15 of the Railway Claims Tribunal Act, 1987.
In the case, Distt. Engineer, Telecom v. Dr. T.N. Sharma, 1995 CPJ 225, the complainant paid the dues of telephone bill after the due date. After 22 days of making the payment, the telephone connection was disconnected without serving any notice or reminder on phone. The disconnection continued for 15 days. The District Forum held that it was deficiency on the part of Telephone service provider and awarded Rs 800 as economic loss and Rs. 2000 as compensation for mental distress, agony and loss of reputation.
4. Consumer Protection Councils
The provision of establishing a Consumer Protection Council has been given in section 4 of the Act. It has provisions for establishing it both at the Centre and State levels. The provision is as follows-
The Central Consumer Protection Council (Section 4).-
The Central Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council).
(2) The Central Council shall consist of the following members, namely:-
(a) the Minister-in-charge of the consumer affairs in the Central Government, who shall be its Chairman, and
(b) such number of other official or non-official members representing such interests as may be prescribed.
So, the appointment of official and non-official members have thus been left to the rule making power of the Government. Central Government issued a notification which contained a set of rules in 1987. Section 4 of this Consumer Protection Rules 1987, deals with the constitution of Central Council.
It provides that the Central Council shall consist of the following 150 members:
(a) Chairman:
· The Minister-in-charge of Consumer Affairs shall be the Chairman of the Council.
(b) Vice-Chairman:
· The Minister of State (where he is not holding Independent Charge) or Deputy Minister in the Department of Consumer Affairs, shall be the Vice-Chairman of the Council.
(c) Members:
· The Minister-in-charge of Consumers Affairs;
· Eight members of Parliament-five from the Lok Sabha and three from Rajya Sabha;
· The Secretary of National Commissioner for Scheduled Castes and Tribes;
· Representatives of the Central Government Departments and Autonomous Organisations concerned with consumer interest ... not exceeding twenty;
· The Registrar, National Consumer Disputes Redressal Commission;
· Representative of the Consumer Organisations or Consumers-not less than thirty five;
· Representatives of women-not less then ten;
· Representatives of farmers, trade and industries-not exceeding twenty;
· Persons capable of representing consumers interests not specified above-not exceeding 15;
· The Secretary in the Department of Consumer Affairs shall be the Member-Secretary of the Central Council.
Term of the Council is three years. But any member can resign by giving his written resignation to the Chairman and the vacancy thus created will be filled from the person belonging to same category for the remaining period.
The meeting of the Central Council shall be presided over by the Chairman. In the absence of Chairman, the Vice-Chairman will preside the meeting and in absence of both the Chairman and the Vice-Chairman the committee shall elect a member to preside over that meeting of the Council.
Section 7 of the Consumer Protection Act authorises the State Government to establish the State Consumer Protection Councils in their respective States.
5. Consumer Disputes Redressal Agencies
Establishment of Consumer Disputes Redressal Agencies (Section 9).-There shall be established for the purposes of this Act, the following agencies, namely:-
(a) a Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government in each district of the State by notification:
Provided that the State Government may, if it deems fit, establish more than one District Forum in a district;
(b) a Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government in the State by notification; and
(c) a National Consumer Disputes Redressal Commission established by the Central Government by notification.
As mentioned above, section 9 of the Consumer Protection Act envisages provision of establishing the Consumer Disputes Redressal Agencies.
Thus, the Act establishes a hierarchy of three redressal forums-
(i) District Forums
(ii) State Commissions
(iii) National Commission
The provision for constituting a District Forum has been given in
section 10 of the Consumer Protection Act, 1986.
Composition of the District Forum
(1) Each District Forum shall consist 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,
(ii) possess a bachelor's degree from a recognised university,
(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 a person shall be disqualified for appointment as a member, if he-
(a) 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 undercharged insolvent; or
(c) is of unsound mind and stands so declared by a 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.
Every appointment as mentioned above shall be made by the State Government on the recommendation of a selection committee.
This committee shall consist of the following:
(i) President of the State Commission;
(ii) Secretary of the Law Department;
(iii) Secretary in-charge of the Department dealing with Consumer Affairs in the State.
Terms and conditions of office
The Members of the District Forum shall hold office for a term of five years or up to the age of 65 years whichever is earlier and shall not be eligible for re-appointment.
The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the District Forum shall be such as may be prescribed by the State Government.
Jurisdiction of District Forum (Section 11)
Pecuniary Jurisdiction-the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs.
Territorial Jurisdiction-A complaint shall be instituted in a District Forum within the local 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 District Forum is given, or the opposite parties who do not reside, or 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.
So, a complaint can be filed either at the place where the opposite party resides or where each or whole number of the opposite parties reside or carry on business.
Who can file complaint (Section 12)
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 by-
(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 recognised 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;
(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.
For the purpose of above provisions, "recognized consumer association" means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force.
Procedure on receipt of complaint (Section 13)
(1) The District Forum shall, on admission of a complaint, if it relates to any goods,-
(a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum;
(b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute in the manner specified in clauses (c) to (g);
(c) where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, the District Forum shall obtain a sample of the goods from the complainant, seal it and authenticate it in the manner prescribed and refer
the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test, whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the District Forum within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by the District Forum;
(d) before any sample of the goods is referred to any appropriate laboratory under clause (c), the District Forum may require the complainant to deposit to the credit of the Forum such fees as
may be specified, for payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question;
(e) the District Forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks as the District Forum may feel appropriate to the opposite party;
(f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, the District Forum shall require the opposite party or the complainant to submit in writing his objections in regard to the report made by the appropriate laboratory;
(g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the objection made in relation thereto under clause (f) and issue an appropriate order under section 14.
(2) The District Forum shall, if the complaints admitted by it under section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services,-
(a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum;
(b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute,-
(i) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint, or
(ii) on the basis of evidence brought to its notice by the complainant where the opposite party omits or fails to take any action to represent his case within the time given by the Forum;
(3) No proceedings complying with the procedure laid down in sub-sections (i) and (ii) shall be called in question in any court on the ground that the principles of natural justice have not been complied with.
(4) For the purposes of this section, the District Forum shall have the same powers as are vested in a civil court under Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely:-
(i) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath,
(ii) the discovery and production of any document or other material object producible as evidence,
(iii) the reception of evidence on affidavits,
(iv) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source,
(v) issuing of any commission for the examination of any witness, and
(vi) any other matter which may be prescribed.
(5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860), and the District Forum shall be deemed to be a civil court for the purposes of section 195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
Here, it would be noted that every proceedings before the District Forum shall be deemed to be a judicial proceedings within the meaning of section 193 and 228 of the Indian Penal Code i.e., punishment for false evidence and intentional insult or interruption to public servant sitting in judicial proceedings.
Findings of District forum (Section 14)
(1) If, after the proceeding conducted under section 13, the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things, namely:-
(a) to remove the defect pointed out by the appropriate laboratory from the goods in question;
(b) to replace the goods with new goods of similar description which shall be free from any defect;
(c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant;
(d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party;
(e) to remove the defects in goods or deficiencies in the services in question;
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;
(g) not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;
(i) to provide for adequate costs to parties.
(j) to pay such as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently;
(k) to issue corrective advertisement to neutralize the effect of misleading advertisement of the cost of the opposite party responsible for issuing such misleading advertisement;
The Act was amended in 1993 and 2002 and some abovementioned clauses were added in course of conferring greater powers on the consumer forum in respect of its findings.
Conduct of Proceedings and Quorum
The Act provides that every proceeding referred to in section 14(1) shall be conducted by the President of the District Forum and at least one member thereof sitting together. However, if the member is unable to conduct the meeting due to some reason till it is completed, the President and the other member shall conduct the proceedings by continuing it from the stage at which it was last heard by the previous member.
The Quorum-As per the provision given in sections 14(2) and 14(2)(A), proceedings are to be conducted by the President of the District Forum and at least one member thereof sitting together. Hence, the President and at least one sitting member of the District Forum constitute the Quorum.
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 thirty days from the date of the order, in such form and manner as may be prescribed:
Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not finding it within that period:
Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the District Forum, shall be entertained by the State Commission unless the appellant has deposited in the prescribed manner fifty per cent. of that amount or twenty-five thousand rupees, whichever is less.
In the case Delhi Development Authority v. I.S. Narula, 1995 (III) CPJ 333, certified copy of the order was received by the appellant on 13-7-1994. The appeal was filed on 27-9-1994. The delay was stated to be due to public holidays on 14th and 15th August, 1995, strike in Tis Hazari Courts and procedural delay in obtaining sanction of D.D.A., for filing the appeal. The Supreme Court while condoning the delay for sufficient cause, observed that the power of condonation should be exercised liberally.
Ex parte order-Ex parte order is passed by the District Forum when the opposite party fails to appear on the date of hearing. But, if sufficient/genuine reason is given or shown then the District Forum can set aside the ex parte order.
In the case Maya Mitra v. K.P. Equipment, (1996) I CPJ 330 (WB SCDRC), it was held that the District Forum, which has the right to pass an ex parte order has also the power to set aside the same provided sufficient cause is shown and the prayer is made early, without any undue delay.
Composition of the State Commission
What is the composition of State Commissions
(1) Each State Commission shall consist of-
(a) a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President:
Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;
(b) two other members, who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman.
(1A) Every appointment under sub-section (1) shall be made by the State Government on the recommendation of a Selection Committee consisting of following members, namely:-
(i) President of the State Commission.......Chairman;
(ii) Secretary of the Law Department of the State.......Member;
(iii) Secretary incharge of the Department dealing with Consumer Affairs in the State.......Member:
(2) The salary or honorarium and other allowances payable to, and the other terms and conditions of service of, the members of the State Commission shall be such as may be prescribed by the State Government.
Provided that the appointment of a member on whole-time basis shall be made by the State Government on the recommendation of the President of the State Commission taking into consideration such factors as may be prescribed including the work load of the State Commission.
(3) Every member of the State Commission shall hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier:
Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of sixty-seven years, whichever is earlier, subject to the condition that he fulfils the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is made on the basis of the recommendation of the Selection Committee:
Provided further that a person appointed as a President of the State Commission shall also be eligible for re-appointment in the manner provided in clause (a) of sub-section (1) of this section.
(4) Notwithstanding anything contained in sub-section (3), a person appointed as the President or as a member, before the commencement of the Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as President or member, as the case may be, till the completion of his term.
Salary and Terms of the Office
The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the State Commission shall be such as may be prescribed by the State Government.
Jurisdiction of the State Commission is given in Section 17 of the Act as below:
The State Commission shall have jurisdiction in the following matters:
(a) (i) To entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore; and
(ii) To entertain appeals against the orders of any District Forum within the State; 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 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.
Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 17 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed:
Provided that the National Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period:
Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited in the prescribed manner fifty per cent. of the amount or rupees thirty-five thousand, whichever is less.
Hearing of appeal.-An appeal filed before the State Commission or the National Commission shall be heard as expeditiously as possible and an endeavour shall be made to finally dispose of the appeal within a period of ninety days from the date of its admission:
Provided that no adjournment shall be ordinarily granted by the State Commission or the National Commission, as the case may be, unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by such Commission:
Provided further that the State Commission or the National Commission, as the case may be, shall make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this Act:
Provided also that in the event of an appeal being disposed of after the period so specified, the State Commission or the National Commission, as the case may be, shall record in writing the reasons for the same at the time of disposing of the said appeal. [Section 19]
6. National Commission (Section 20)
Explain in in length the Composition of National Commission.
The composition of the National Commission has been given in the
section 20 as below:
(1) The National Commission shall consist of-
(a) a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President:
Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India;
(b) not less than four, and not more than such number of 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;
(ii) possess a bachelor's degree from a recognised 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 the persons having a judicial background.
Explanation.-For the purposes of this clause, the expression "persons having judicial background" shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level:
Provided further that a person shall be disqualified for appointment, if he--
(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or
(b) is an undercharged insolvent; or
(c) is of unsound mind and stands so declared by a 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 Central 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 Central Government:
Provided also that every appointment under this clause shall be made by the Central Government on the recommendation of a Selection Committee consisting of the following, namely:-
(a) a person who is a Judge of the Supreme Court, -Chairman;
to be nominated by the Chief Justice of India
(b) the Secretary in the Department of Legal -Member;
Affairs in the Government of India
(c) Secretary of the Department dealing with -Member.
consumer affairs in the Government of India
(1A) (i) The jurisdiction, powers and authority of the National Commission may be exercised by Benches thereof.
(ii) A Bench may be constituted by the President with one or more members as the President may deem fit.
(iii) If the members of a Bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the President who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more or the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case, including those who first heard it.
(2) The salary or honorarium and other allowances payable to and the other terms and conditions of service of the members of the National Commission shall be such as may be prescribed by the Central Government.
(3) Every member of the National Commission shall hold office for a term of five years or up to the age of seventy years, whichever is earlier:
Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of seventy years, whichever is earlier, subject to the condition that he fulfils the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is made on the basis of the recommendation of the Selection Committee:
Provided further that a person appointed as a President of the National Commission shall also be eligible for re-appointment in the manner provided in clause (a) of sub-section (1):
Provided also that a member may resign his office in writing under his hand addressed to the Central Government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the person who has resigned.
(4) Notwithstanding anything contained in sub-section (3), a person appointed as a President or as a member before the commencement of the Consumer Protection (Amendment) Act, 2002 shall continue to hold such office as President or member, as the case may be, till the completion of his term.
(3) Every member of the National Commission shall hold office for a term of five years or upto the age of seventy years, whichever is earlier and shall not be eligible for re-appointment.
(4) Notwithstanding anything contained in sub-section (3), a person appointed as a President or as a member before the commencement of the Consumer Protection (Amendment) Act, 2002 shall continue to hold such office as President or member, as the case may be, till the completion of his term.
Subject to the other provisions of this Act, the National Commission shall have jurisdiction-
(a) to entertain-
(i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore; 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.
The powers and procedure of the National Commission shall be the same as applicable to a District Forum under sections 13 and 14 of the Act. It means that the working procedure of the National Commission is the same as that of the District Forum under sections 13(4), (5) and (6). It has also the power to issue an order to the opposite party directing him to do any one or more of the things referred to in clauses (a) to (i) of sub-section (1) of section 14.
22A. Power to set aside ex parte orders.-
Where an order is passed by the National Commission ex parte against the opposite party or a complainant, as the case may be, the aggrieved party may apply to the Commission to set aside the said order in the interest of justice.
22B. Transfer of cases.-
On the application of the complainant or of its own motion, the National Commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending before the District Forum of one State to a District Forum of another State or before one State Commission to another State Commission.
22C. Circuit Benches.-
The National Commission shall ordinarily function at New Delhi and perform its functions at such other place as the Central Government may, in consultation with the National Commission, notify in the Official Gazette, from time to time.
The Central Government has notified that the National Commission shall perform its functions at the following places other than New Delhi:-
|
1. Ahmedabad |
5. Chennai |
9. Lucknow |
|
2. Allahabad |
6. Hyderabad |
10. Nagpur |
|
3. Bangalore |
7. Jodhpur |
11. Pune |
|
4. Bhopal |
8. Kolkata |
Vide S.O. 974 (E), dated 31st August, 2004, published in the Gazette of India, Extra., Pt. II, Sec. 3(ii), dated 31st August, 2004.
22D. Vacancy in the office of the President.-
When the office of President of a District Forum, State Commission, or of the National Commission, as the case may be, is vacant or a person occupying such office is, by reason of absence or otherwise, unable to perform the duties of his office, these shall be performed by the senior-most member of the District Forum, the State Commission or of the National Commission, as the case may be:
Provided that where a retired Judge of a High Court is a member of the National Commission, such member or where the number of such members is more than one, the senior-most person amongst such members, shall preside over the National Commission in the absence of President of that Commission.
Against the order of the National Commission, an appeal lies before the Supreme Court. The appeal should be made to the Supreme Court within 30 days from the date of the order of the National Commission. But, if Supreme Court thinks that the case is fit for the appeal even after the expiry of 30 days, seeing the sufficient cause of delay, it can allow the appeal.
Every order of a District Forum, State Commission or the National Commission shall, if no appeal has been preferred against such order under the provisions of this Act, be final.
Section 24A has been added by the Amendment Act, 1993. It gives the provision for period of limitation for filing the complaint as under:
(1) 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.
(2) Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the period specified in sub-section (1), if the complainant satisfies the District Forum, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period:
Provided that no such complaint shall be entertained unless the National Commission, the State Commission or the District Forum, as the case may be, records its reasons for condoning such delay.
Prior to the Amendment Act, 1993, the limitation period for filing the complaint was in accordance with the provisions of Limitation Act.
(1) The National Commission shall have administrative control over all the State Commissions in the following matters, namely:-
(i) calling for periodical returns regarding the institution, disposal, pendency of cases;
(ii) issuance of instructions regarding adoption of uniform procedure in the hearing of matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of English translation of judgments written in any language, speedy grant of copies of documents;
(iii) generally overseeing the functioning of the State Commissions or the District Fora to ensure that the objects and purposes of the Act are best served without in any way interfering with their quasi-judicial freedom.
(2) The State Commission shall have administrative control over all the District Fora within its jurisdiction in all matters referred to in sub-section (1).
7. Enforcement of Orders (Section 25)
As per the amended provisions as to enforcement of orders of the District Forum, the State Commission or the National Commission are as mentioned below:
(1) Where an interim order made under this Act is not complied with, the District Forum or the State Commission or the National Commission, as the case may be, may order the property of the person, not complying with such order to be attached.
(2) No attachment made under sub-section (1) shall remain in force for more than three months at the end of which, if the non-compliance continues, the property attached may be sold and out of the proceeds thereof, the District Forum or the State Commission or the National Commission may award such damages as it thinks fit to the complainant and shall pay the balance, if any, to the party entitled thereto.
(3) Where any amount is due from any person under an order made by a District Forum, State Commission or the National Commission, as the case may be, the person entitled to the amount may make an application to the District Forum, the State Commission or the National Commission, as the case may be, and such District Forum or the State Commission or the National Commission may issue a certificate for the said amount to the Collector of the district (by whatever name called) and the Collector shall proceed to recover the amount in the same manner as arrears of land revenue.
In Raheemunnisa v. District Consumer Forum, Ongole, MANU/AP/0857/2008 : AIR 2009 AP 100, it is contended by the petitioner that the District Forum has no jurisdiction to entertain the execution petition for cancellation of the sale deed infavour of the writ petitioner. The court held that sub-section (3) of section 25 shows that the collector has to proceed to recover the amount on the basis of a certificate issued by the District Forum on an application made by the person entitled to the said amount. Thus, an application for enforcement of a final order has to be made before the District Forum and thereupon it is for the District Forum to make the necessary enquiry and issue the certificate as contemplated under section 25(3) of the Act where any amount found to be due from any person under an order made by it. Hence, there is absolutely no reason to hold that an execution petition cannot be maintained before the District Forum.
8. Dismissal of frivolous or vexatious complaints (Section 26)
Where a complaint instituted before the District Forum, the State Commission or, as the case may be, the National Commission is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order.
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 National Commission, as the case may be, such trader or person or complainant shall be punishable as under:
(a) with fine not less than Rs. 2000 and not more than Rs. 10,000; or
(b) with imprisonment for a minimum period of one month and maximum period of 3 years; or
(c) with both i.e., imprisonment and fine as mentioned above.
10. Some Miscellaneous Provisions (Section 28)
No suit, prosecution or other legal proceedings shall lie against the members of the District Forum, the State Commissions or the National Commission or any officer or person acting under the direction of the District Forum, the State Commission or the National Commission for executing any order made by it or in respect of anything which is in good faith done or intended to be done by such member, officer or person under this Act or under any rule or order made thereunder.
11. Power to remove difficulties (Section 29)
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.
(3) If any difficulty arises in giving effect to the provisions of the Consumer Protection (Amendment) Act, 2002, the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the commencement of the Consumer Protection (Amendment) Act, 2002.
(4) Every order made under sub-section (3) shall be laid before each House of Parliament.
12. Vacancies or defects in appointment not to invalidate orders (Section 29A)
No act or proceeding of the Districts Forum, the State Commission or the National Commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.
13. Powers to make rules (Sections 30, 30A & 31)
Section 30 of the Act empowers the Central and State Governments to make rules in their respective spheres of power. Section 30A provides that the National Commission may, with the previous approval of the Central Government, make regulations not inconsistent with the Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of the Act. Section 31 requires that every rule made by the Central Government under this Act, shall be laid, as soon as possible, before each House of Parliament who may approve, modify or annul the rule. Similarly, every rule made by the State Governments under this Act shall be laid, as soon as possible before the State Legislature.
© Universal law Publishing Co.