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THE
CONSUMER PROTECTION ACT, 1986 |
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CHAPTER – I PRELIMINARY |
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1. |
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2. |
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3. |
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CHAPTER – II CONSUMER PROTECTION COUNCILS |
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4. |
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5. |
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6. |
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7. |
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8. |
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8A. |
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CHAPTER –
III CONSUMER DISPUTES REDRESSAL AGENCIES |
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9. |
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10. |
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11. |
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12. |
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13. |
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14. |
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15. |
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16. |
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17. |
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17A. |
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17B. |
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18. |
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19. |
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19A. |
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20. |
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21. |
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22. |
Power of and
procedure applicable to the National Commission |
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22A. |
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22B. |
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22C. |
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22D. |
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23. |
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24. |
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24A. |
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24B. |
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25. |
Enforcement
of orders of the District Forum, the State Commission or the National
Commission |
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26. |
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27. |
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27A. |
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CHAPTER – IV MISCELLANEOUS |
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28. |
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28A. |
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29. |
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29A. |
Vacancies or
defects in appointment not to invalidate orders |
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30. |
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30A. |
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31. |
Rules and
regulations to be laid before each House of Parliament |
(After
including the amendments made vide the Consumer Protection (Amendment) Act,
2002 [62 of 2002] which was passed by Rajya Sabha on 11.4.2002, Lok Sabha on
30.7.2002{with some amendments} and again by Rajya Sabha on 22.11.2002 and the
President of India gave assent on 17. 12.2002 and the notification was
issue on 18.12.2002.The provisions of the Act are being brought into force
w.e.f. 15.3.2003.
Amendments
are shown in bold & italic form
The Consumer Protection Act, 1986
(68 of 1986)
24th December; 1986
An Act
to provide for better protection of the interests of consumers and for that
purpose to make provision for the establishment of consumer councils and other
authorities for the settlement of consumers' disputes and for matters
connected therewith.
BE it enacted by Parliament in the Thirty-seventh Year of
the
CONSUMER DISPUTES REDRESSAL AGENCIES
CHAPTER I
1. Short title, extent,
commencement and application.—(1 ) This Act may be called the Consumer Protection Act,
1986.
(2) It extends to the
whole of
(3) It shall come
into force on such date as the Central Government may, by notification, appoint
and different dates may be appointed for different States and for different
provisions of this Act.
(4) Save as otherwise
expressly provided by the Central Government by notification, this Act shall
apply to all goods and services.
2. Definitions. - (1) In this Act,
unless the context otherwise requires,—
(a) "appropriate laboratory"
means a laboratory or organisation—
(i) recognised by the Central
Government;
(ii) recognised
by a State Government, subject to such guidelines as may be prescribed by the
Central Government in this behalf; or
(iii) any
such laboratory or organisation established by or under any law for the time
being in force, which is maintained, financed or aided by the Central
Government or a State Government for carrying out analysis or test of any goods
with a view to determining whether such goods suffer from any defect;
(aa) "branch
office" means—
(i) any
establishment described as a branch by the opposite party; or
(ii) any
establishment carrying on either the same or substantially the same activity
as that carried on by the head office of the establishment;
(b) "complainant"
means—
(i) a
consumer; or
(ii) any
voluntary consumer association registered under the Companies Act, 1956 (1of
1956)or under any other law for the time being in force; or
(iii) the
Central Government or any State Government,
(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; who or which makes a
complaint;
(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 service provider, as the case may be, has charged for the goods
or for the service 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 or 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;”;
(d) "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 purposes;
Explanation.— For
the purposes of this clause, “commercial 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;
(e) "consumer
dispute" means a dispute where the person against whom a complaint has
been made, denies or disputes the allegations contained in the complaint.
(f) "defect"
means 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 under any contract, express or implied or as is claimed
by the trader in any manner whatsoever in relation to any goods;
(g)
"deficiency" means any fault,
imperfection, shortcoming or inadequacy in the quality, nature and manner of
performance which is required to be maintained by or under any law for the time
being in force or has been undertaken to be performed by a person in pursuance
of a contract or otherwise in relation to any service;
(h)
"District Forum"
means a Consumer Disputes Redressal Forum established
under clause (a) of section 9;
(i)
"goods" means goods as
defined in the Sale of Goods Act, 1930 (3 of 1930);
(j)
“manufacturer”
means a person who—
(i) makes or
manufactures any goods or part thereof; or
(ii) does not make
or manufacture any goods but assembles parts thereof made or manufactured by
others; or
(iii) puts or causes to be put his own mark on any goods
made or manufactured by any other manufacturer;
Explanation. — Where
a manufacturer dispatches any goods or part thereof to any branch office
maintained by him, such branch office shall not be deemed to be the
manufacturer even though the parts so dispatched to it are assembled at such
branch office and are sold or distributed from such branch office;
(jj) "member"
includes the President and a member of the National Commission or a State
Commission or a District Forum, as the case may be;
(k) "National
Commission" means the National Consumer Disputes Redressal Commission
established under clause (c) of section 9;
(l) "notification"
means a notification published in the Official Gazette;
(m) "person"
includes,—
(i) a firm whether
registered or not;
(ii) a Hindu
undivided family;
(iii) a
co-operative society;
(iv) every other
association of persons whether registered under the Societies Registration Act,
1860 (21 of 1860) or not;
(n) "prescribed"
means prescribed by rules made by the State Government, or as the case may be,
by the Central Government under this Act;
(nn)“regulation” means the regulations made by the National
Commission under this Act;
(nnn) “restrictive
trade practice” means a trade practice which tends to bring about manipulation
of price or conditions of delivery or to affect flow of supplies in the market
relating to goods or services in such a manner as to impose on the consumers
unjustified costs or restrictions and shall include—
(a) delay beyond the
period agreed to by a trader in supply of such goods or in providing the
services which has led or is likely to lead to rise in the price;
(b) any trade
practice which requires a consumer to buy, hire or avail of any goods or, as
the case may be, services as condition precedent to buying, hiring or availing
of other goods or services;
(o) "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;
(oo) “spurious goods
and services” mean such goods and services which are claimed to be genuine but
they are actually not so;
(p) "State
Commission" means a Consumer Disputes Redressal Commission established in
a State under clause (b) of section 9;
(q)
"trader" in relation to any
goods means a person who sells or distributes any goods for sale and includes
the manufacturer thereof, and where such goods are sold or distributed in
package form, includes the packer thereof;
(r)
"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 adopts deceptive
practices in the provision of services.
(2) Any
reference in this Act to any other Act or provision thereof which is not in
force in any area to which this Act applies shall be construed to have a
reference to the corresponding Act or provision thereof in force in such area.
3. Act not in derogation
of any other law.—The
provisions of this Act shall be in addition to and not in derogation of the
provisions of any other law for the time being in force.
CHAPTER
II
4. The Central Consumer
Protection Council.—(1)
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.
5. Procedure for meetings
of the
(2) The Central
Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as
may be prescribed.
6. Objects of the
(a) the right to be protected against the marketing of goods and
services which are hazardous to life and property;
(b) the right to be informed about the quality, quantity,
potency, purity, standard and price of goods or services, as the case may be so
as to protect the consumer against unfair trade practices;
(c) the right to be assured, wherever possible, access to a
variety of goods and services at competitive prices;
(d) the right to be heard and to be assured that consumer's
interests will receive due consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices
or restrictive trade practices or unscrupulous exploitation of consumers; and
(f) the right to consumer education.
7. The State Consumer
Protection Councils.- (1) The State Government shall, by
notification, establish with effect from such date as it may specify in such
notification, a Council to be known as the Consumer Protection Council
for..................... (hereinafter referred to as the State Council).
(2) The State
Council shall consist of the following members, namely:—
(a)
the Minister incharge of consumer
affairs in the State Government who shall be its Chairman;
(b)
such number of other official or
non-official members representing such interests as may be prescribed by the
State Government.
(c)
such number of
other official or non-official members, not exceeding ten, as may be nominated
by the Central Government.
(3) The State
Council shall meet as and when necessary but not less than two meetings shall
be held every year.
(4) The State
Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as
may be prescribed by the State Government.
8. Objects of the State
Council. — The
objects of every State Council shall be to promote and protect within the State
the rights of the consumers laid down in clauses (a) to (f) of section 6.
8A. (1) The State Government shall establish for
every district, by notification, a council to be known as the District Consumer
Protection Council with effect from such date as it may specify in such
notification.
(2) The District
Consumer Protection Council (hereinafter referred to as the District Council)
shall consist of the following members, namely:—
(a)
the
Collector of the district (by whatever name called), who shall be its Chairman;
and
(b)
such number of
other official and non-official members representing such interests as may be
prescribed by the State Government.
(3) The District
Council shall meet as and when necessary but not less than two meetings shall
be held every year.
(4) The District
Council shall meet at such time and place within the district as the Chairman
may think fit and shall observe such procedure in regard to the transaction of
its business as may be prescribed by the State Government.
8B. The
objects of every District Council shall be to promote and protect within the
district the rights of the consumers laid down in clauses (a) to (f) of
section 6.
CHAPTER
III
CONSUMER DISPUTES REDRESSAL AGENCIES
9. Establishment of Consumer Disputes
Redressal Agencies. - 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.
10. 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
undischarged 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;
(1A) Every appointment under sub-section (I) shall be made
by the State Government on the recommendation of a selection committee
consisting of the following, namely:—
(i) the President of the State Commission — Chairman.
(ii) Secretary, Law Department of the State — Member.
(iii) Secretary incharge of the Department dealing with
consumer
affairs in the State — Member.
Provided that where the President of the State Commission
is, by reason of absence or otherwise, unable to act as Chairman of the
Selection Committee, the State Government may refer the matter to the Chief
Justice of the High Court for nominating a sitting Judge of that High Court to
act as Chairman.
(2) Every member of
the District Forum shall hold office for a term of five years or up to the age
of sixty-five 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-five years, whichever
is earlier, subject to the condition that he fulfills the qualifications and
other conditions for appointment mentioned in clause (b) of sub-section (1) and
such re-appointment is also made on the basis of the recommendation of the
Selection Committee:
Provided further that a member may resign his office in
writing under his hand addressed to the State 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:
Provided also that 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.
(3) 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.
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 District Forum.
11. Jurisdiction of the
District Forum.—(1) Subject 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
''does not exceed rupees twenty lakhs.
(2) 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.
12. Manner in which
complaint shall be made.—(1) 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
Government 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.
(2) Every
complaint filed under sub-section (1) shall be 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 (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
section unless an opportunity of being heard has been given to the complainant:
Provided further that the admissibility of the complaint
shall ordinarily be decided within twenty-one days from the date on which the
complaint was received.
(4) Where a
complaint is allowed to be proceeded with under sub-section (3), the
District Forum may proceed 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.
Explanation. - For the purpose
of this section “recognised consumer association” means any voluntary consumer
association registered under the Companies Act, 1956 or any other law for the
time being in force”.
13. Procedure on admission
of complaint. — (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 (/) and issue an appropriate order under section 14.
(2) the District
Forum shall, if the complaint 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) ex parte
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.
(c) where the
complainant fails to appear on the date of hearing before the District Forum,
the District Forum may either dismiss the complaint for default or decide it on
merits.
(3) No proceedings
complying with the procedure laid down in subsections [1] and [2] shall be
called in question in any court on the ground that the principles of natural
justice have not been complied with.
(3A) Every complaint shall be heard as expeditiously as
possible and endeavour shall be made to decide the complaint within a period of
three months from the date of receipt of notice by opposite party where the
complaint does not require analysis or testing of commodities and within five
months if it requires analysis or testing of commodities:
Provided that no adjournment shall be ordinarily granted by
the District Forum unless sufficient cause is shown and the reasons for grant
of adjournment have been recorded in writing by the Forum:
Provided further that the District Forum 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 a complaint being
disposed of after the period so specified, the District Forum shall record in
writing, the reasons for the same at the time of disposing of the said
complaint.
(3B) Where during the pendency of any proceeding before the
District Forum, it appears to it necessary, it may pass such interim order as
is just and proper in the facts and circumstances of the case.
(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 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 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).
(6) Where the
complainant is a consumer referred to in sub-clause (iv) of clause (b) of
sub-section (1) of section 2, the provisions of rule 8 of Order I of the First
Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject
to the modification that every reference therein to a suit or decree shall be
construed as a reference to a complaint or the order of the District Forum
thereon.
(7) In the event of
death of a complainant who is a consumer or of the opposite party against whom
the complaint has been filed, the provisions of Order XXII of the First
Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject
to the modification that every reference therein to the plaintiff and the
defendant shall be construed as reference to a complainant or the opposite party,
as the case may be.
14. Finding of the
District Forum. —
(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.
Provided that the District Forum shall have the power to
grant punitive damages in such circumstances as it deems fit;
(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 it;
(g)
not to offer the hazardous goods for
sale;
(h)
to withdraw the hazardous goods from
being offered for sale;
(ha)to cease manufacture of hazardous goods and to desist
from offering services which are hazardous in nature;
(hb)to pay such sum 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:
Provided that the minimum amount of sum so payable shall not
be less than five per cent. of the value of such defective goods sold or
service provided, as the case may be, to such consumers:
Provided further that the amount so obtained shall be
credited in favour of such person and utilized in such manner as may be
prescribed;
(hc)to issue corrective advertisement to neutralize the
effect of misleading advertisement at the cost of the opposite party responsible
for issuing such misleading advertisement;
(i) to provide for
adequate costs to parties.
(2) Every proceeding
referred to in sub-section (1) shall be conducted by the President of the
District Forum and at least one member thereof sitting together:
Provided that where a member, for any reason, is unable to
conduct a proceeding till it is completed, the President and the other member
shall continue the proceeding from the stage at which it was last heard by the
previous member.
(2A) Every order made by the District Forum under
sub-section (1) shall be signed by its President and the member or members who
conducted the proceeding:
Provided that where the proceeding is conducted by the
President and one member and they differ on any point or points, they shall
state the point or points on which they differ and refer the same to the other
member for hearing on such point or points and the opinion of the majority
shall be the order of the District Forum.
(3) Subject to the
foregoing provisions, the procedure relating to the conduct of the meetings of
the District Forum, its sittings and other matters shall be such as may be
prescribed by the State Government.
15. Appeal. — Any person aggrieved by an order made
by the District Forum may prefer an appeal against such order to the State
Commission within a period of 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:
16. Composition of the
State Commission. —
(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) not less than
two, 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 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 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
undischarged 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.
(1A)Every appointment under sub-section (1) shall be made by
the State Government on the recommendation of a Selection Committee consisting
of the 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:
Provided that where the President of the State Commission
is, by reason of absence or otherwise, unable to act as Chairman of the
Selection Committee, the State Government may refer the matter to the Chief
Justice of the High Court for nominating a sitting Judge of that High Court to
act as Chairman.
(1B)(i) The
jurisdiction, powers and authority of the State 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 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 fulfills 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:
Provided also that a member may resign his office in writing
under his hand addressed to the State 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 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.
17. Jurisdiction of the
State Commission. —
(1) Subject to the other provisions of this Act, the State
Commission shall have jurisdiction—
(a) to entertain—
(i) 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) 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.
(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
work for gain, as the case may be, acquiesce in such institution; or
(c) the cause of
action, wholly or in part, arises.
17A. Transfer of
cases. - On the application of the complainant
or of its own motion, the State Commission may, at any stage of the proceeding,
transfer any complaint pending before the District Forum to another District
Forum within the State if the interest of justice so requires.
17B. Circuit
Benches.-The State Commission shall ordinarily
function in the State Capital but may perform its functions at such other place
as the State Government may, in consultation with the State Commission, notify
in the Official Gazette, from time to time.
18. Procedure applicable
to State Commissions.—The provisions of Sections 12, 13 and 14 and the rules made
thereunder 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.
( 18A. Omitted )
l9. Appeals.—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:
19A. 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.
20. Composition of the
National Commission.—(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 undischarged 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
(b) the
Secretary in the Department of Legal Affairs — Member;
in the Government of
(c) Secretary
of the Department dealing with consumer — Member.;
affairs in the Government of
(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 fulfills 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.
21. Jurisdiction of the
National Commission. —
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.
22. Power of
and procedure applicable to the National Commission. — (1) The provisions of sections 12, 13 and 14 and the
rules made thereunder for the disposal of complaints by the District Forum
shall, with such modifications as may be considered necessary by the
Commission, be applicable to the disposal of disputes by the National
Commission.
(2) Without prejudice to the provisions contained in sub-section
(1), the National Commission shall have the power to review any order made by
it, when there is an error apparent on the face of record.
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.
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 among such members, shall
preside over the National Commission in the absence of President of that
Commission.
23. Appeal. — Any person, aggrieved by an order made by the National
Commission in exercise of its powers conferred by sub-clause (i) of clause (a)
of section 21, may prefer an appeal against such order of the Supreme Court
within a period of thirty days from the date of the order:
Provided that the Supreme Court 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 National Commission shall be entertained
by the Supreme Court unless that person has deposited in the prescribed manner
fifty per cent. of that amount or rupees fifty thousand, whichever is less.
24. Finality
of orders. — Every order of a District Forum, the
State Commission or the National Commission shall, if no appeal has been
preferred against such order under the provisions of this Act, be final.
24A. Limitation
period. - (l) 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 (l), 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.
24B. Administrative
Control.—(1) The National Commission shall have
administrative control over all the State Commissions in the following matters,
namely:—
(i) calling for
periodical return 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).
25. Enforcement
of orders of the District Forum, the State Commission or the National
Commission. — (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.
26. Dismissal
of frivolous or vexatious complaints. —
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
27. Penalties.
— (1) 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, as the case
may be, 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 thousands
rupees but which may extend to ten thousand rupees, or with both:
(2) Notwithstanding
anything contained in the Code of Criminal Procedure, 1973, (2 of 1974), the
District Forum or the State Commission or the National Commission, as the case
may be, shall have the power of a Judicial Magistrate of the first class for
the trial of offences under this Act, and on such conferment of powers, the
District Forum or the State Commission or the National Commission, as the case
may be, on whom the powers are so conferred, shall be deemed to be a Judicial
Magistrate of the first class for the purpose of the Code of Criminal
Procedure, 1973 (2 of 1974).
(3) All offences
under this Act may be tried summarily by the District Forum or the State
Commission or the National Commission, as the case may be.
27A. Appeal
against order passed under section 27 - (1) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974), an appeal under section 27, both on facts
and on law, shall lie from -
(a)
the order made by
the District Forum to the State Commission ;
(b)
the order made by
the State Commission to the National Commission; and
(c)
the order made by
the National Commission to the Supreme Court.
(2) Except as
aforesaid, no appeal shall lie to any court from any order of a District Forum
or a State Commission or the National Commission.
(3) Every appeal
under this section shall be preferred within a period of thirty days from the
date of an order of a District Forum or a State Commission or, as the case may
be, the National Commission :
Provided that the State Commission or the National Commission
or the Supreme Court, as the case may be, may entertain an appeal after the
expiry of the said period of thirty days, if, it is satisfied that the
appellant had sufficient cause for not preferring the appeal within the period
of thirty days.
CHAPTER IV
28. Protection
of action taken in good faith. — No
suit, prosecution or other legal proceedings shall lie against the members of
the District Forum, the State Commission 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.
28A. Service of
notice, etc. - (1) All notices required by this Act to
be served shall be served in the manner hereinafter mentioned in sub-section
(2).
(2) The service of
notices may be made by delivering or transmitting a copy thereof by registered
post acknowledgment due addressed to opposite party against whom complaint is
made or to the complainant by speed post or by such courier service as are
approved by the District Forum, the State Commission or the National
Commission, as the case may be, or by any other means of transmission of
documents (including FAX message).
(3) When an
acknowledgment or any other receipt purporting to be signed
by the opposite party or his agent or by the complainant is received by the
District Forum, the State Commission or the National Commission, as the case
may be, or postal article containing the notice is received back by such
District Forum, State Commission or the National Commission, with an
endorsement purporting to have been made by a postal employee or by any person
authorized by the courier service to the effect that the opposite party or his
agent or complainant had refused to take delivery of the postal article
containing the notice or had refused to accept the notice by any other means
specified in sub- section (2) when tendered or transmitted to him, the District
Forum or the State Commission or the National Commission, as the case may be,
shall declare that the notice had been duly served on the opposite party or to
the complainant :
Provided that where the notice was properly addressed,
pre-paid and duly sent by registered post acknowledgment due, a declaration
referred to in this sub-section shall be made notwithstanding the fact that the
acknowledgment has been lost or mislaid, or for any other reason, has not been
received by the District Forum, the State Commission or the National
Commission, as the case may be, within thirty days from the date of issue of
notice.
(4) All notices
required to be served on an opposite party or to complainant shall be deemed to
be sufficiently served, if addressed in the case of the opposite party to the
place where business or profession is carried and in case of complainant, the
place where such person actually and voluntarily resides.
29. Power to
remove difficulties.—(l) 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.
29A. Vacancies
or defects in appointment not to invalidate orders.—No act or proceeding of the District Forum, the State
Commission or the National Commission shall be invalid by reason only of the
existence of any vacancy amongst its member or any defect in the constitution
thereof.
30. Power to
make rules. - (1) The Central Government may, by
notification, make rules for carrying out the provisions contained in clause
(a) of sub-section (1) of section 2, clause (b) of sub-section (2) of section
4, sub-section (2) of section 5, sub-section (2) of section 12, clause (vi) of
sub-section (4) of section 13, clause (hb) of sub-section (1) of section 14,
section 19, clause (b) of sub-section (1) and sub-section (2) of section 20, section
22 and section 23 of this Act.
(2) The State
Government may, by notification, make rules for carrying out the provisions
contained in clause (b) of sub-section (2) and sub-section (4) of section 7,
clause (b) of sub-section (2) and sub-section (4) of section 8A, clause (b) of
sub-section (1) and sub-section (3) of section 10, clause (c) of sub-section
(1) of section 13 clause (hb) of sub-section (1) and sub-section (3) of section
14, section 15 and clause (b) of sub-section (1) and sub-section (2) of section
16 of this Act.
30A. Power of
the National Commission to make regulations - (1) The National Commission may, with the previous approval
of the Central Government, by notification, make regulations not inconsistent
with this Act to provide for all matters for which provision is necessary or
expedient for the purpose of giving effect to the provisions of this Act.
(2) In particular and
without prejudice to the generality of the foregoing power, such regulations
may make provisions for the cost of adjournment of any proceeding before the
District Forum, the State Commission or the National Commission, as the case
may be, which a party may be ordered to pay.
31. Rules and
regulations to be laid before each House of Parliament - (1) Every rule and every regulation made under this Act
shall be laid, as soon as may be after it is made, before each House of
Parliament, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if, before
the expiry of the session immediately following the session or the successive
sessions aforesaid, both Houses agree in making any modification in the rule or
regulation or both Houses agree that the rule or regulation should not be made,
the rule or regulation shall thereafter have effect only in such modified form
or be of no effect, as the case may be; so, however, that any such modification
or annulment shall be without prejudice to the validity of anything previously
done under that rule or regulation.
(2) Every rule made
by a State Government under this Act shall be laid as soon as may be after it
is made, before the State Legislature.
File:C:/ CAP-AMENDED
18.12.2002
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Division Two Commentary on |
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Consumer Protection Act Introduction 1.1 The moment a person
comes into this would, he starts consuming. He needs clothes, milk, oil,
soap, water, and many more things and these needs keep taking one form or the
other all along his life. Thus we all are consumers in the literal sense of
the term. When we approach the market as a consumer, we expect value for
money, i.e., right quality, right quantity, right prices, information
about the mode of use, etc. But there may be instances where a consumer is
harassed or cheated. The Government
understood the need to protect consumers from unscrupulous suppliers, and
several laws have been made for this purpose. We have the Indian Contract
Act, the Sale of Goods Act, the Dangerous Drugs Act, the Agricultural Produce
(Grading and Marketing) Act, the Indian Standards Institution (Certification
Marks) Act, the Prevention of Food Adulteration Act, the Standards of
Weights and Measures Act, etc. which to some extent protect consumer
interests. However, these laws require the consumer to initiate action by
way of a civil suit involving lengthy legal process which is very expensive
and time consuming. The Consumer Protection
Act, 1986 was enacted to provide a simpler and quicker access to redressal
of consumer grievances. The Act for the first time introduced the concept of
‘consumer’ and conferred express additional rights on him. It is interesting
to note that the Act doesn’t seek to protect every consumer within the
literal meaning of the term. The protection is meant for the person who fits
in the definition of ‘consumer’ given by the Act. Now we understand that
the Consumer Protection Act provides means to protect consumers from getting
cheated or harassed by suppliers. The question arises how a consumer will
seek protection ? The answer is the Act has provided a machinery whereby
consumers can file their complaints which will be entertained by the Consumer
Forums with special powers so that action can be taken against erring
suppliers and the possible compensation may be awarded to consumer for the
hardships he has undergone. No court fee is required to be paid to these
forums and there is no need to engage a lawyer to present the case. Following chapter
entails a discussion on who is a consumer under the Act, what are the things
which can be complained against, when and by whom a complaint can be made and
what are the relief available to consumers. |
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Who is a
consumer 1.2 Section 2(d) of the Consumer
Protection Act says that 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; Explanation.—For the purposes of the
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. 1.2-1 Consumer of
goods
- The provision reveals that a person claiming himself as a consumer of goods
should satisfy that— 1-2-1a THE GOODS ARE BOUGHT
FOR CONSIDERATION - There must be a sale transaction between a seller and
a buyer; the sale must be of goods; the buying of goods must be for
consideration. The terms sale, goods, and consideration have not been
defined in the Consumer Protection Act. The meaning of the terms ‘sale’, and
‘goods’ is to be construed according to the Sale of Goods Act, and the
meaning of the term ‘consideration’ is to be construed according to the
Indian Contract Act. 1-2-1b ANY PERSON WHO USE THE
GOODS WITH THE APPROVAL OF THE BUYER IS A CONSUMER - When a person buys goods, they may be used by his family
members, relatives and friends. Any person who is making actual use of the goods
may come across the defects in goods. Thus the law construe users of the
goods as consumers although they may not be buyers at the same time. The
words “....with the approval of the buyer” in the definition denotes that the
user of the goods should be a rightful user. Example : A purchased a scooter
which was in B’s possession from the date of purchase. B was using it and
taking it to the seller for repairs and service from time to time. Later on B
had a complaint regarding the scooter. He sued the seller. The seller pleaded
that since B did not buy the scooter, he was not a consumer under the Act.
The Delhi State Commission held that B, the complainant was using it with the
approval of A, the buyer, and therefore he was consumer under the Act. [Dinesh
Bhagat v. Bajaj Auto Ltd.
(1992) III CPJ 272] Note : This is an exception to
the general rule of law that a stranger to a contract cannot sue. |
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1-2-1c ANY PERSON WHO OBTAINS
THE GOODS FOR ‘RESALE’ OR COMMERCIAL PURPOSES’ IS NOT A CONSUMER - The term
‘for resale’ implies that the goods are brought for the purpose of selling
them, and the expression ‘for commercial purpose’ is intended to cover cases
other than those of resale of goods. When goods are bought to resell or
commercially exploit them, such buyer or user is not a consumer under the
Act. Examples : 1. A
jeep was purchased to run it as a taxi. The question was whether the buyer of
the jeep was a consumer under the Act. The Rajasthan State Commission held that
to use the jeep as a taxi with the object to earn profits was a commercial
purpose, and therefore, the buyer/user was not a consumer within the meaning
of the Act. [Smt. Pushpa Meena v. Shah Enterprises (Rajasthan) Ltd.
(1991) 1 CPR 229]. 2. L
Ltd. purchased a computer system from Z. The computer system was giving constant trouble and Z was not attending it
properly. L Ltd. filed a complaint against Z with the National Commission. Z
contended that L Ltd. was not a consumer under the Act because computer
system was used for commercial purposes. L Ltd. argued that computer system
was not directly used of commercial purposes rather it was used to
facilitate the work of the company. The Commission rejected the argument on
the grounds that the system made part of the assets of the company, and its
expenses were met by it out of business income. Thus the said purchase was a
purchase for commercial purposes and L Ltd. was held not to be a consumer
under the Act. One thing is plain and
clear from the decided cases that what is important to decide is - Whether a
particular good is used for commercial purposes. If it is the buyer/user is
not a consumer, and if it is not - the buyer/user is a consumer. 1.2-1d PERSON BUYING GOODS FOR
SELF EMPLOYMENT IS A CONSUMER - When goods are bought for commercial purposes
and such purchase satisfy the following criteria : - the
goods are used by the buyer himself; - exclusively
for the purpose of earning his livelihood; - by
means of self-employment, then such use would not be
termed as use for commercial purposes under the Act, and the user is
recognised as a consumer. Examples : 1. A
buys a truck for plying it as a public carrier by himself, A is a consumer. 2. A
buys a truck and hires a driver to ply it, A is not a consumer. 3. A
has one cloth shop. He starts another business of a photocopier and buys a
photocopy machine therefor. He hasn’t bought this machine exclusively for the
purpose of earning livelihood. He is not a consumer under the Act. Note : That this is an exception
to the rule that a buyer of commercial goods is not a consumer under the Act. |
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The
intention of the legislature is to exclude big business houses carrying on
business with profit motive from the purview of the Act. At the same time it
is pertinent to save the interests of small consumers who buy goods for self
employment to earn their livelihood, like a rickshaw puller buying rickshaw
for self employment, or a farmer purchasing fertilizer for his crops, or a
taxi driver buying a car to run it as a taxi, etc. Example : A was running a small
type institute to earn his livelihood. He purchased a photocopy
machine-canon NP 150. It proved defective. He sued the seller who contended
that A is not a consumer under the Act as he purchased the photocopier for
commercial use. The Commission held that by no stretch of imagination it
can be said that the photocopier would bring large scale profits to A. It was
a part of his small scale enterprise. He was construed as consumer under the
Act. However, if such a buyer
takes assistance of two or more persons to help him in operating the vehicle
or machine, etc., he does not cease to be a consumer. Examples : 1. A
buys a truck, ply it himself and hires a cleaner who accompany him all the
time and at times drives also when A is busy otherwise, A is a consumer. 2. P,
an eye surgeon, purchased a machine from R for the hospital run by him. The
machine was found to be a defective one. R contended that P was not a
consumer under the Act as the machine was bought for commercial purposes.
The National Commission rejected this contention and held that P is a
medical practitioner, a professional working by way of self employment by
using his knowledge and skill to earn his livelihood. It was not proved by
any evidence that P is running a huge hospital. Thus the purchase of
machinery is in the nature of self employment. [Rampion Pharmaceuticals
v. Dr. Preetam Shah (1997) I CPJ 23 (NCDRC)]. 1.2-2 Consumer of
services
- A person is a consumer of services if he satisfy the following criteria : 1.2-2a SERVICES ARE HIRED OR
AVAILED OF - The term ‘hired’ has not been defined under the Act. Its
Dictionary meaning is - to procure the use of services at a price. Thus the
term ‘hire’ has also been used in the sense of ‘avail’ or ‘use’. Accordingly
it may be understood that consumer means any person who avails or uses any
service. Example : A goes to a doctor to
get himself treated for a fracture. Here A is hiring the services of the
doctor. Thus he is a consumer. What constitutes hiring
has been an issue to be dealt with in many consumer disputes. If it is established
that a particular act constitutes hiring of service, the transaction falls
within the net of the Consumer Protection Act, and vice-versa. Examples : 1. A passenger getting railway reservation after payment
is hiring service for consideration. 2. A landlord neglected and refused to provide the
agreed amenities to his tenant. He filed a complaint against the landlord
under the Consumer |
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Protection
Act. The National Commission dismissed the complaint saying that it was a
case of lease of immovable property and not of hiring services of the
landlord. [Smt.
Laxmiben Laxmichand Shah v. Smt. Sakerben Kanji Chandan [1992] 1 Comp. LJ
177 (NCDRC)]. 3. A
presented before the Sub-Registrar a document claiming it to be a will for
registration who sent it to the Collector
of Stamps for action. The matter remain pending for about six years. In the
meantime A filed a complaint under the Consumer Protection Act alleging
harrassment by the Sub-Registrar and Collector and prayed for compensation.
The National Commission held the view that A was not a “consumer” under the
CPA. Because there was no hiring of services by the complainant for consideration
and because a Government official doing his duty as functionary of the State
under law could not be said to be rendering a service to the complainant. [S.P.
Goel v. Collector of Stamps (1995) III CPR 684 (SC)]. 1.2-2b CONSIDERATION MUST BE
PAID OR PAYABLE - Consideration is regarded necessary for hiring or availing
of services. However, its payment need not necessarily be immediate. It can
be in instalments. For the services provided without charging anything in
return, the person availing the services is not a consumer under the Act. Examples : 1. A
hires an advocate to file a suit for recovery of money from his employer. He
promises to pay fee to the advocate after settlement of the suit. A is a
consumer under the Act. 2. A
goes to a Doctor to get himself treated for a fracture. The Doctor being his
friend charged him nothing for the treatment. A is not a consumer under the
Act. 3. B
issued an advertisement that a person could enter the contest by booking a
Premier Padmini car. S purchased the car and thus entered the contest. He was
declared as winner of the draw and was thus entitled to the two tickets from The Direct and Indirect
taxes paid to the State by a citizen is not payment for the services
rendered. Example : T was paying property
tax for his house to the local corporation. This corporation was responsible
for proper water supply to the premises under its work area. T raised a
consumer dispute over the inadequacy of water supply by the corporation. The
National Commission held that it was not a consumer dispute as water supply
was made by the corporation out of its statutory duty and not by virtue of
payment of taxes by T. - Mayor, Calcutta Municipal Corporation v. Tarapada
Chatterjee (1994) 1 CPR 87 (NCDRC). |
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1.2-2c BENEFICIARY OF SERVICES
IS ALSO A CONSUMER - When a person hires services, he may hire it for himself
or for any other person. In such cases the beneficiary (or user) of these
services is also a consumer. Example : A takes his son B to
a doctor for his treatment. Here A is hirer of services of the doctor and B
is beneficiary of these services. For the purpose of the Act, both A and B
are consumers. Note : This is an exception
to the rule of privity to the contract. Note that in case of
goods, buyer of goods for commercial purpose ceases to be a consumer under
the Act. On the other hand, a consumer of service for commercial purpose
remains a consumer under the Act. Example : S applied to
Electricity Board for electricity connection for a flour mill. There was a
delay in releasing the connection. S made a complaint for deficiency in
service. He was held a consumer under the Act. - Shamsher Khan v. Complaint 1.3 An aggrieved consumer
seeks redressal under the Act through the instrumentality of complaint. It
does not mean that the consumer can complain
against his each and every problem. The Act has provided certain
grounds on which complaint can be made. Similarly, relief against these
complaints can be granted within the set
pattern. 1.3-1 What
constitutes a complaint [Section 2(1)(c)] - Complaint is a statement
made in writing to the National Commission, the State Commission or the
District Forum by a person competent to file it, containing the allegations
in detail, and with a view to obtain relief provided under the Act. 1.3-2 Who can file a
complaint [Sections 2(b) & 12] - At the outset it is clear that a person who
can be termed as a consumer under the Act can make a complaint. To be
specific on this account, following are the persons who can file a complaint
under the Act : (a) a
consumer; or (b) any
voluntary consumer association registered under the Companies Act, 1956 or
under any other law for the time being in force, or (c) the
Central Government or any State Government, (d) one
or more consumers, where there are numerious consumers having the same
interest. In addition to the above
following are also considered as a
consumer and hence they may file a complaint : Beneficiary of the
goods/services
: The definition of consumer itself includes beneficiary of goods and
services - K.B. Jayalaxmi v. Government of Tamil Nadu 1994(1)
CPR 114. Where a young child is
taken to the hospital by his parents and the child is treated by the doctor,
the parents of such a minor child can file a complaint under the Act - Spring
Meadows Hospital v. Harjot Ahluwalia JT 1998(2) SC 620. Legal representative of the deceased consumer : The Act does not
expressly indicate that the LR of a consumer are also included in its scope.
But by |
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operation of
law, the legal representatives get clothed with the rights, status and
personality of the deceased. Thus the expression consumer would include legal
representative of the deceased consumer and he can exercise his right for the
purpose of enforcing the cause of action which has devolved on him - Cosmopolitan Hospital v. Smt. Vasantha P.
Nair (1) 1992 CPJ NC 302. Legal heirs of the
deceased consumer
: A legal heir of the deceased consumer can well maintain a complaint under
the Act - Joseph Alias Animon v. Dr. Elizabeth Zachariah (1) 1997
CPJ 96. Husband of the consumer : In the Indian
conditions, women may be illiterate, educated women may be unaware of their
legal rights, thus a husband can file and prosecute complaint under the
Consumer Protection Act on behalf of his spouse - Punjab National Bank,
Bombay v. K.B. Shetty 1991 (2) CPR 633. A relative of consumer : When a consumer signs
the original complaint, it can be initiated by his/her relative - Motibai
Dalvi Hospital v. M.I. Govilkar 1992 (1) CPR 408. Insurance company : Where Insurance
company pays and settles the claim of the insured and the insured person
transfers his rights in the insured goods to the company, it can file a
complaint for the loss caused to the insured goods by negligence of
goods/service providers. For example, when loss is caused to such goods
because of negligence of transport company, the insurance company can file a
claim against the transport company - New India Assurance Company Ltd.
v. Green Transport Co. II 1991 CPJ (1) Delhi. 1.3-3 What a
complaint must contain [Section 2(1)(c)] - A complaint must
contain any of the following allegations : (a) An
unfair trade practice or a restrictive
trade practice has been adopted by any trader; Example : A sold a six
months old car to B representing it to be a new one. Here B can make a
complaint against A for following an unfair trade practice. (b) The
goods bought by him or agreed to be bought by him suffer from one or more
defects; Example : A bought a
computer from B. It was not working properly since day one. A can make a
complaint against B for supplying him a defective computer. (c) The
services hired or availed of or agreed to be hired or availed of by him
suffer from deficiency in any respect. Example : A hired services
of an advocate to defend himself against his landlord. The advocate did not
appear every time the case was scheduled. A can make a complaint against the
advocate. (d) 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. Example : A bought a sack of
cement from B who charged him Rs. 100 over and above the reserve price of the
cement declared by the Government. Here A can make a complaint against B. |
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(e) Goods which will be hazardous to life and safety when used, are
being offered for sale to the public in contravention of the provisions of
any law for the time being in force requiring traders to display information
in regard to the contents, manner and effect of use of such goods. Example : A bought a tin of
disinfectant powder. It had lid which was to be opened in a specific manner.
Trader did not inform. A about this. While opening the lid in ordinary way,
some powder flew in the eyes of A which affected his vision. Here A can make
a complaint against the trader. Note : The terms ‘unfair trade
practice’, ‘restrictive trade practice’, ‘Goods’, ‘Defect’, ‘service’,
‘Deficiency’, ‘trader’, ‘Excess price’, and ‘Hazardous goods’ have been
discussed in detail in the chapter separately. 1.3-4 Time frame
within which a complaint can be filed - Section 24A of the Act provides that a
consumer dispute can be filed within two years from the date on which the
cause of action arises. Since this provision was
inserted in the Act in 1993, before that the Consumer Forums were following
the Limitation Act, 1963, which says that a suit can be filed within three
years after the cause of action arises. The point of time when
cause of action arises is an important factor in determining the time period
available to file a complaint. There are no set rules to decide such time.
It depends on the facts and circumstances of each case. Examples : 1. A
got his eye operated by B in 1989. He got a certificate of blindness on 18th
December, 1989. He was still in hope of gaining his sight and went from
second operation in 1992 and was discharged on 21-1-1992. He filed a
complaint against B on 11-1-1994. B opposed on the ground that more than 2
years were over after 18-12-1989, thus the complaint is not maintainable. The
Commission held that here the cause of action for filing the complaint would
arose after the second operation when A lost entire hope of recovery. Thus
the suit is maintainable - Mukund Lal Ganguly v. Dr. Abhijit Ghosh
III 1995 CPJ 64. 2. A
house was allotted on 1-1-1999. Defects appeared in the house on 10-1-1999.
Here the cause of action will arise on 10-1-1999. It may be noted that
these time frames are not absolute limitations. If the Consumer Forum is
satisfied that there was sufficient cause for not filing the complaint
within the prescribed period, it can entertain a complaint beyond limitation
time. However the Forum must record the reasons for condonation of delay. Example : A deposited some
jewellery with a bank. Bank lost it. Bank kept giving her false sense of hope
to retrieve the jewellery, and thus A was put in a state of inaction. Later
on when A filed a suit on the Bank, it claimed that the suit was not maintainable
as the limitation time after the cause of action arose has lapsed. The
Commission reprimanded the bank and admitted the case - Agnes D’Mello
v. Canara Bank [1992] I CPJ 335 (NCDRC). 1.3-5 Relief
available against complaint [Sections 14 and 22] - A complainant can
seek any one or more of the following relief under the Act: |
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(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 or deficiencies in the services in question; (f) to
discontinue the unfair trade practice or the restrictive trade practice or
not to repeat it; (g) not
to offer the hazardous goods for sale; (h) to
withdraw the hazardous goods from being offered for sale; (i) to
provide from adequate costs to complainant. 1.3-6 When a
complaint cannot be filed - A complaint on behalf of the public which
consists of unidentifiable consumers cannot be filed under the Act. Example : A complaint was filed
on the basis of a newspaper report that passengers travelling by flight No.
1C-401 from A complaint by an
individual on behalf of general public is not permitted - Commissioner of
Transport v. Y.R. Grover 1994 (1) CPJ 199 NC. An unregistered
association cannot file a complaint under the Act. Example : The complainant was an
association formed in the Gulf and was unregistered in A complaint after expiry
of limitation period is not permitted. A complaint cannot be filed after the
lapse of two years from the date on which the cause of action arise unless
the Forum is satisfied about the genuineness of the reason for not filing
complaint within the prescribed time. Example : A supplied defective
machinery to B on 12-1-1998. B filed a suit against A on 10-3-2001. It was
not admitted before the Forum for the reason that the time available to make
complaint lapsed. 1.3-7 Dismissal of frivolous and vexatious
complaints
- Since the Act provides for an inexpensive procedure (Court fees is not
charged in consumer |
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complaints
under the Act) for filing complaints, there is a possibility that the Act is
misused by people for filing vexations claims. To discourage frivolous and
vexatious claims, the Act has provided that such complaints will be
dismissed and the complainant can be charged with the costs not exceeding Rs.
10,000. Example : A filed a complaint
against B to recover compensation of Unfair Trade Practice
and Restrictive Trade Practice [Section 2(1)(r) and (nn)]. 1.4 We have discussed that
a consumer can make a complaint when an unfair or a restrictive trade
practice is followed by a trader. What can be termed as an unfair or a
restrictive trade practice is another question of law. 1.4-1 What is an
Unfair Trade Practice - The Act says that, “unfair trade practice” means a trade
practice which, for the purpose of promoting the sale, use or supply of any
goods or for the provison 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 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
false or misleading statement 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; (viii) makes to the public a representation in a
form that purports to be a warranty or guarantee of a product or of any goods
or services; or 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 perported warranty or guarantee or promise is
materially misleading or |
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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 other
representation is made; (x) gives
false or misleading facts disparaging the goods, services or trade of another
person. Note : A statement is said to
be made to public when it 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, 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. Note : “Bargain 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 bargain price having regard to the prices at
which the product advertised or like products are ordinarily sold. (3) Permits 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; or 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; (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 |
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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. 1.4-2 What is a
Restrictive Trade Practice - Section 2(1)(nn) of the Act provides
that, “restrictive trade practice” means “any trade practice which requires a
consumer to buy, hire or avail of any goods or, as the case may be, services
as a condition precedent for buying, hiring or availing of other goods or
services”. An analysis of above
definition reveals that where sale or purchase of a product or service is
made conditional on the sale or purchase of one or more other products and
services, it amounts to restrictive trade practice. Technically, this type
of arrangement is called ‘tie-up sales’ or ‘tying arrangement’. The effect of
such an arrangement is that a purchaser is forced to buy some goods or
services which he may not require alongwith the goods or services which he
wants to buy. Thus where a buyer agrees to purchase product ‘X’ upon a
condition that he will also purchase product ‘Y’ from the seller, the sale of
product ‘Y’ (tied product) is tied to the sale of product ‘X’ (tying
product). The buyer has to forego
his free choice between competing products. This results in neutralizing
healthy competition in the ‘tied’ market. Example : A, a gas distributor
instead his customers to buy gas stove as a condition to give gas connection.
It was held that it was a restrictive trade practice - Re. Anand Gas
RTPE 43/1983 (MRTPC). However, where there is
no such precondition and the buyer is free to take either product, no tying
arrangement could be alleged even though the seller may offer both the
products as a single unit at a composite price. Example : A is a furniture
dealer. He is selling Sofa at Rs. 20,000 and Bed at Note : The term ‘restrictive
trade practice’ has a very wide meaning when read in context of the MRTP Act,
1969. However under Consumer Protection Act, 1986, it has been used in a
narrower sense. Goods and Defect
[Section 2(1)(i) and (f)] 1.5 A consumer can make
complaint when he come across defective goods. Here it is required to
understand what are the items which can be considered as ‘goods’ and what
constitutes ‘defect’ under the Act. 1.5-1 Goods - The Consumer
Protection Act does not define the term ‘Goods’ It says that - “goods” means
goods as defined in the Sale of Goods Act, 1930. Section 2(7) of the Sale of Goods Act, 1930,
defines ‘goods’ as - “Goods means every kind of movable property other than
actionable claims and money; and includes
stock and shares,
growing crops, grass,
and things attached
to or |
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forming part
of the land which are agreed to be severed before sale or under the contract
of sale.” The definition reveals
that— (a) Goods
must be movable; (b) Things
attached to or forming part of land which can be severed satisfy the
movability criteria; (c) Actionable
claim and Money have been specifically excluded from definition of goods. Note : For elaboration on the
term ‘goods’, refer para 15-2-1d. 1.5-2 Defect - Section 2(1)(f)
of the Act provides that, “defect” means any fault, imperfection or
shortcoming in the quality, quantity, potency, purity or standard which
is required to be maintained by or under any law of the time being in
force under any contract, express or implied or as is claimed by the trader
in any manner whatsoever in relation to any goods. This is an exhaustive
definition. It means that the Act recognises only those defects which are
covered by the definition. Any type of defect not mentioned here will not be
entertained by Consumer Forums. Moreover the defect has to be in relation to
goods only, i.e., if an item does not fall within the definition of
‘Goods’, no defect can be complained therein. However, the coverage of this
definition is very wide. Examples: 1. A
Pressure Cooker burst and caused injury to the user. It was held to be a
manufacturing defect - T.T. (P.) Ltd. v. Akhil Bhartiya Grahak
Panchayat II [1996] CPJ 239 NC. 2. Failure
to handover registration book along with jeep purchased by complainant is a
defect. [Ramesh Chandra v. Commercial Tax Officer [1993] 3 CPR
182 (Ori.). 3. Where
laboratory test report showed that soft drink was not fit for human
consumption, it was held defective - Narayanan Vyankatkrishnan Iyengar
v. Shakti Foods [1994] 2 CPJ 652 (Mah.). 4. Rape
seed oil adulterated with toxic substances, which led to paralysis of limbs
and other disabilities, has been considered as defective - Barsad Ali
v. MD West Bengal Essential Commodities Supply Corporation Ltd. (1993)
1 CPR 217 WB. 5. Electric
household appliances which are not in accordance with the standards
prescribed by ISI, being unsafe are defective - Farooq Hazi Ismail Saya
v. Gavabhai Bhesania (1991) 2 CPJ 452 (Guj.). 6. Gas
Cylinder with excessive gas is defective goods - Dayanand A Avasare v.
Bharat Petroleum Corporation Ltd. (1993) 1 CPR 278 (Mah.). 7. Development
of cracks of half inch to three and a half inch in walls and mosaic floor in
a flat after taking possession from a Housing Board - R. Shanmugasundaram
v. Tamil Nadu Housing Board (1998) 1 CPJ 96 NC. 8. A
supplied white marble to B. Later on the colour of the marble changed. B sued
a alleging supply of defective marble. It was held that A
should have |
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expressly told B that the marble would not retain its colour
when polished. In the absence of such assertion, it is deemed that A made B
to understand that the marble would retain its white colour and when the
colour changed, it comes within the scope of ‘defect’ in goods under the Act
- Chitranjan
Sahu v.
N.C. Jain II (1993) CPJ 1127 (Ori.). 9. A
sold a stolen car to B. B wanted to sue A for defect in the title of the car.
Here B cannot sue A under the Consumer Protection Act as the defect in title
of goods would not constitute defective goods as defined under the Act. Service and Deficiency
[Section 2(1)(o) and (g)] 1.6 When a service is found
deficient by a consumer, he can make a complaint under the Act. Thus the
prime requirement is that the matter must fall within the definition of
service, and it must entail a deficiency as per the norms given by the Act. 1.6-1 What can be
termed as a service - Section 2(1)(o) of the Act provides that
“service” means service of any description which is made available to
potential users and includes the provision of facilities in connection with banking,
financing, insurance, transport, processing, supply of electrical or other
energy, board or loading 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 definition provides
a list of eleven sectors to which service may pertain in order to come under
the purview of the Act. The list of these sectors is not an exhaustive one.
Service may be of any description and pertain to any sector if it satisfy the
following criteria: 1. service
is made available to the potential users, i.e., service not only to
the actual users but also to those who are capable of using it. 2. it
should not be free of charge, e.g., the medical service rendered free
of charge in Government hospital is not a service under the Act; 3. it
should not be under a contract of personal service. When we talk about
‘service’ under the Consumer Protection Act, we take it as a regular
commercial transaction. Thus the services rendered under the contract of
personal service are specifically excluded from the definition. The expression ‘contract
of personal service’ is not defined under the Act. In common parlance, it
means - a contract to render service in a private capacity to an individual.
For example, where a servant enters into an agreement with a master for employment,
or where a landlord agrees to supply water to his tenant, these are the
contracts of personal service. The idea is that under a personal service
relationship, a person can discontinue the service at any time according to
his will, he need not approach Consumer Forum to complaint about deficiency
in service. There is a difference between ‘contract of
personal service’ and ‘contract for personal service’. In case of ‘contract
of personal service’, the service seeker can order or require what is to be
done and how it should be done. Like a master can tell his servant to bring
goods from a particular place. But in a ‘contract for |
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personal
service’, the service seeker can tell only what is to be done. How the work
will be done is at the wish of the performer. Like when a person gives a suit
to the tailor for stitching, he does not tell him which method he should use
to stitch it. Note : That it is ‘contract of
personal service’ is excluded from the definition of service, ‘contract for
personal service’ is recognised as service under the Act. It does not make a
difference whether the service provider is a Government body or a Private
body. Thus even if a statutory corporation provides a deficient service, it
can be made liable under the Act. Example : A applied for
electricity connection for his flour mill to Rajasthan State Electricity
Board. The Board delayed in releasing the connection. It was held deficient
in performing service. Some other
sectors/professionals/services which are not specified in the definition of
service but which have been considered by the Consumer Forums as service
sectors from time to time are listed below: Advocates, Airlines,
Chartered Accountants, Courier, Chit Fund, Education, Gas Cylinder/LPG,
Medical services, Postal services, Railways, Investment related services, and
Telephone services. Thus, the test is -
whether the person against whom the complaint is made performs a service for
consideration which is sought by a potential user. 1.6-2 What is meant
by “deficiency” in service - Section 2(1)(g) of the Act provides
that, “deficiency” means any fault, imperfection, shortcoming or inadequacy
in the quality, nature and manner of performance which is required to be
maintained by or under any law for the time being in force or has been undertaken
to be performed by a person in pursuance of a contract or otherwise in
relation to any service. Reading the above
definition by breaking it into elements, we get— (a) “deficiency”
means any fault, imperfection, shortcoming or inadequacy in the quality,
nature and manner of performance Examples : 1. A boarded a train. The compartment in which he and his wife
travelled was in a bad shape-fans not working, shutters of windows were not
working, rexin of the upper berth was badly torn and there were rusty nails
which caused some injuries to the wife of A. A made a complaint against the
railway department. It was held that the complaint constituted ‘deficiency in
service’ and the compensation of Rs. 1500 was awarded to A - General
Manager, South Eastern Railway v. Anand Prasad Sinha I [1991] CPJ
10 (12) NC. 2. Dr. A treated P under Allopathic system, though he himself was a
Homoeopathic practitioner. Later on P allegated A for wrong treatment. The
Commission held it as deficiency in service - Poonam Verma v. Ashwin
Patel [1996] II CPJ 1 SC. 3. A booked a car for B and promised to deliver it within one month
of booking. The car was not delivered even after four months. Here A could be
held liable for deficiency in service. |
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One interesting
aspect is that deficiency in service should occur during the happening of
performance. Thus it is crucial to determine when the performance of a
service commenced. Example : A contracted with
B to supply, erect and commission cold rolling mill. A supplied the mill, but
failed to erect and commission the mill. B filed a suit alleging deficiency
of service on A’s failure to elect and commission the mill. The National
Commission observed that the deficiency must pertain to performance of
service. Since A never started erecting and commissioning the mill, the
question of performance did not arise. Thus the case is not that of deficiency
of service - Jaipur Metals & Electricals Ltd. v. Laxmi Inds.
[1991] II CPJ 602 (NC). (b) Such
quality and manner of performance of service should have been required to be
maintained by or under any law for the time being in force or undertaken to
be performed by a person in pursuance of a contract or otherwise. Example : A, the builder,
promised under written agreement to provide a flat to B. Subsequently he
expressed his inability to give possession of the flat and entered into a
fresh agreement to pay Rs. 9,51,000 to B in place of flat. A didn’t even pay
this money. B sued A. The Commission held that since A had not even paid the
money as per subsequent contract, the rights of earlier contract can be
involved by B. And that there was a deficiency of service on the part of
builders - Lata Construction v. Dr. Rameshchandra Ramniklal Shah
AIR 2000 SC 380 (384). (c) The
deficiency must be in relation to a service - The words ‘....in relation
to any service’ in the definition signifies that the deficiency is always in
terms of service. Thus if the grievance pertains to a matter which does not
fall in the definition of service, the concept of deficiency would not apply. Example : A deposited Rs.
100 with B as application fee and executed bond for the purpose of drilling
tubewell. B did not drill the tubewell because it was not feasible. A alleged
deficiency in service. It was held that depositing Rs. 100 as application
fee and executing a bond does not amount to hiring of services, thus the
deficiency of service cannot be complained of in the matter - Mangilal
v. Chairman District Rural Development Agency [1991] 1 CPJ 474 (Raj.). Deficiency in service
due to circumstances beyond control In normal course, if the
service is found deficient as per the above criteria, it is held deficient
and the compensation is awarded. However there may be abnormal circumstances
beyond the control of the person performing service. If such circumstances
prevent a person from rendering service of the desired quality, nature and
the manner, such person should not be penalised for the same. Example : A undertook to supply
water to B for irrigation of crops. Due to power grid failure of the State, A
could not get sufficient power to perform the service. Here A cannot be held
liable for deficiency in service. However, negligence on
the part of performer may not be excused under the cover of circumstances
beyond control. |
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Example : A agreed to supply
water to B for irrigation of crops. He failed to do so because of a power
breakdown due to burning of transformer. As a result crops damaged. B sued A
for providing deficient service. The National Commission held that it was
duty of A to get the transformer repaired immediately. Since he was negligent
in doing so, he is liable for the deficiency in service - Orissa Lift
Irrigation Corpn. Ltd. v. Birakishore Raut [1991] 2 CPJ 213 (NC). Trader and Manufacturer
[Section 2(1)(q) and (j)] 1.7 When a person finds any
defect in the goods, be it manufacturing defect, or excessive price, or lack
of information about hazardous nature, or restrictive or unfair trade
practice, he can make a complaint against the trader. Thus it is very
important to know who can be termed as a trader under the Act. 1.7-1 Trader - Section 2(1)(q)
of the Act says that ‘trader’ means any person who sells or distributes any goods for sale and includes the manufacturer
thereof, and where such goods are
sold or distributed in package form, includes the packer thereof. Generally speaking
‘trader’ means any person who carries on a trade. Under the Consumer
Protection Act, even a packer has been included in the definition of trader.
Packer means one who packs the goods. Examples : 1. A
got an agency of ‘Indana’ products. He sells and distributes these products
in 2. A
manufactures combs. He is a trader under the Act. 3. A
provide bottles to pack the perfume manufactured by B. Here A is also a
trader under the Act. Note : “Trader” is a wider
term which includes a manufacturer also. 1.7-2 Manufacturer - In terms if clause (j)
of section 2(1) of the Act, “manufacturer” means a person who— (i) makes
or manufactures any goods or parts thereof; or (ii) does
not make or manufacture any goods but assembles parts thereof made or
manufactured by others and claims the end-product to be goods manufactured by
himself; or (iii) puts
or causes to be put his own mark on any goods made or manufactured by
any other manufacturer and claims such goods to be goods made or manufactured
by himself. Thus manufacturer is a
person who either himself manufactures goods, or assemble any goods
manufactured by others, or puts his own mark or trade mark on the goods
manufactured by others. Examples : 1. A
Ltd. were into manufacturing of Pressure Cookers. B bought a Cooker which
burst out while using. B sued A Ltd. for compensation. Here A Ltd. being
manufacturer of the Cooker is liable for the loss. |
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2. A Ltd. used to buy components and assemble
computers therefrom. They were selling them under the brand name ‘Rotal’. B
bought a Rotal computer which turned out to be defective. Here B can hold A
Ltd. Liable for the loss as they will be considered manufacturer of Rotal
computer under the Act. 3. N
bought H-4 Cotton seeds from the market which were labelled as produced and
marketed by the Hindustan Levers Ltd. N established that the seeds were
defective. He sued HLL. HLL contended that it did not manufactured the seeds
but had only marketed them, and that some company based in It may be noted that
where a manufacturer despatches any goods or part thereof to any branch
office maintained by him, such branch office shall not be deemed to be the
manufacturer even though the parts so despatched to it are assembled at such
branch office and are sold or distributed from such branch office. Example : A Ltd. based in 1.7-3 Who should be
sued by a consumer - manufacturer or seller - Generally when a
consumer finds defect in the goods, he sues the person from whom he bought
the goods. Reason being privity of contract. If the defect is a
manufacturing defect, the consumer may sue the manufacturer also along with
the seller. This is an option with the consumer. Thus the manufacturer is a
possible party, and not a necessary party. Example : A was manufacturer of
“X” brand cars and B was a dealer for them. C bought a car from B and found
it defective. Here he may sue B alone, or A and B both. Charging Excessive Price 1.8 A complaint may be made
against a trader who has charged a price in excess of the price : (a) fixed
by or under any law for the time being in force, or (b) displayed
on the goods, or (c) displayed
on any package containing the goods. Examples : 1. Government
fixed control rate of milk at Rs. 15 per litre in the month of June 2001. A
sold it at the rate of Rs. 18 per litre in the same period. Price charged by
A are excessive. 2. The
price displayed on a one Kg. packet of salt was Rs. 4. Suddenly there was
paucity of salt in the market. A started selling the same @ Rs. 6 per kg. The
price charged by A is excessive. |
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It may be
noted that when price of an article is not fixed by law, or when the same is
not displayed on goods or on the package containing goods, no complaint can
be made under the Act for excess pricing. Example : Mahaboobnagar Milk
Chilling Centre charged 15 paise extra per half litre of milk supplied in
sachets in comparison to the other varieties of milk. The National Commission
held that in the absence of any law requiring an article to be sold at or
below a particular price fixed thereunder, and when there was no declaration
of the price on the packet containing the goods, a case for excessive pricing
may not be construed. Hazardous Goods 1.9 The term “Hazardous
goods’ has not been defined in the Act. The dictionary meaning of the term is
- dangerous or risky. However, the term is used in context of ‘goods’ only, i.e.,
a person can make a complaint if he is not informed about the hazardous
nature of the goods but the same is not true in case of hazardous services. The rationale behind
this provision is to ensure physical safety of the consumers. The law seeks
to ensure that those responsible for bringing goods to the market, in
particular, suppliers, exporters, importers, retailers and the like should
ensure that while in their care these goods are not rendered unsafe through
improper handling or storage. Consumers should be instructed
in the proper use of goods and should be informed of the risks involved in
intended or normally foreseeable use. Vital safety information should be
conveyed to consumers. Example : A bought an insecticide
from B. B did not inform A that touching this insecticide with bare hands can
create skin problem. A, while using the insecticide came in contact with it
and suffered from skin problem consequently. Here B can be held liable under
the Act. Consumer Protection
Councils. 2.1 Ram, an engineer by
profession shifted to Ram could have gone to
courts, but knowing the lengthy and expensive procedures involved, he
preferred not to initiate any action against Shyam. One day while watching
television he came across a programme on consumer protection. Ram got
interested in it and noted the address of consumer council which was
sponsoring the programme. Thereafter he contacted the Council and talked
about his computer affair. The Council made him aware that there is a speedy
and inexpensive way to assert his right as a consumer, and that where and
how a complaint can be filed for that, and that he need not hire an advocate
for the suit, and assured him of any assistance he may need for the same. The Consumer Councils are created to advise and
assist the consumers in seeking and enforcing their rights. We have Consumer
Protection Councils |
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both at
Centre level and State level, that is one Central Council and many State
Councils. These councils work
towards the promotion and protection of consumers. They make investigations
and give publicity to the matters concerning consumer interests, take steps
towards furthering consumer education and protecting consumer from exploitation,
advice the Government in the matter of policy formulation keeping consumer
interest as pivotal concern, etc. Although their suggestions are
recommendatory in nature, but they have significant impact in policy making. While deciding about the
composition of these councils, the State keeps in mind that it should have
proper representation from all the possible areas affecting consumer
interests. Again the rules as to when should these councils meet, what should
they aim at, how they conduct their business are framed by the Government
with a view to balance the efficacy and practicability of its business. Objects of the Councils
[Sections 6 and 8] 2.2 There is one basic
thought that ‘consumer need to be protected’. Another thought is - how he
can be protected ? Definitely, there has to be some agency to work towards
this protection. The Act has provided for constitution of Consumer Councils
for this purpose. Now, when we say that
these councils are there to protect the consumers, a question arises - consumers
are protected against what ? Thus the Act has detailed some rights of
consumers which need to be protected by the councils. These are : Right to safety - It is right to be
protected against the marketing of goods and services which are hazardous to
life and property. Unsafe goods may cause
death or serious injury to the user due to defective ingredients, defective
design, poor workmanship, or any other reason. At times safety hazards are
found due to absence of proper instructions to use the product. Thus it is to
be ensured that— Manufacturers and
traders ensure that the goods are safe for the users, in case of hazardous
goods, they give clear instructions as to mode of use, consumer is informed
of the risk involved in improper use of goods, vital safety information is
conveyed to consumers. Manufacturers or
distributors who become aware of the unforeseen hazards after the goods are
supplied must inform the authorities and the public in order to forewarn
consumers about such hazards. Where a product is found
such as is likely to be hazardous even when properly used, traders should
either recall it and modify the same, or replace it with a new product, or
adequately compensate for it. Right to information - It is right to be
informed about the quality, quantity, potency, purity, standard and price of
goods or services, with a view to protect the consumer against unfair trade
practices. |
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Adequate
information is very important in order to make a right choice. In our
country, however, consumers do not get adequate comparative information about
the quality, quantity, potency, purity, standard and price of different kinds
of goods or services which are available. As a result buying decisions become
difficult. Therefore consumers need to be given maximum information about the
wide variety of competing goods available in the market. Right to choose - The right to choose
can be made meaningful by ensuring access to a variety of goods and services
at competitive prices. Fair and effective
competition must be encouraged so as to provide consumers with the widest
range of products and services at the lowest cost. Right to represent - It is right to be
heard and to be assured that consumer’s interests will receive due consideration
at appropriate forums. The Consumer Protection
Act, 1986 has well taken care of this right by making available the
instrumentality of Redressal Forums. Every consumer has a right to file
complaint and be heard in that context. Right to redressal - It is a right to seek
redressal against unfair trade practices or restrictive trade practices or
unserpulous exploitation of consumers. When consumers are
wronged in a market place transaction, appropriate and adequate redress must
be available. The Act has ensured this right by establishing Consumer Forums
and recognising restrictive and unfair trade practices as a ground to make a
complaint. Right to education - The right to consumer
education is a right which ensures that consumers are informed about the
practices prevalent in the market and the remedies available to them. For spreading this
education, media, or school curriculum, or cultural activities, etc. may be
used as a medium. Note that the Central
Council’s object is to ensure these rights of the consumers throughout the
country while the State Councils look to ensure these rights to consumers
within their territories. Central Council 2.3-1 Composition
[Section 2 and rule 3] Members of the councils are selected from
various areas of consumer interest, who are, when possible, leading members
of statewide organisations representing segments of the consumer public so
as to establish a broadly based and representative consumer council. The Consumer Protection
Act has authorised the Central Government to make rules as to the composition
of the Central Council. Accordingly, the Central Government has provided that
the Central Council shall consist of the following members not exceeding 150,
namely :— 1. the
Minister in-charge of Consumer Affairs in the Central Government who shall be
the Chairman of the Central Council; 2. the
Minister of State (where he is not holding independent charge) or Deputy
Minister in-charge of Consumer Affairs in the Central Government who shall be
the Vice-Chairman of the Central Council; |
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3. the Secretary in-charge of Consumer Affairs
in the Central Government who shall be the member-secretary of the Central
Council; 4. the
Minister in-charge of Consumer Affairs in States; 5. eight
Members of Parliament—five from the Lok Sabha and three from the Rajya Sabha; 6. the
Secretary of the National Commission for Scheduled Castes and Scheduled
Tribes; 7. representatives
of the Central Government Departments and autonomous organisations concerned
with consumer interests—not exceeding twenty; 8. representatives
of the Consumer Organisations or consumers—not less than thirty-five; 9. representatives
of women—not less than ten; 10. representatives
of farmers, trade and industries—not exceeding twenty; 11. persons
capable of representing consumer interest not specified above—not exceeding
fifteen; 2.3-2 Vacancy - Any member may, by
writing under his hand to the Chairman of the Central Council, resign from
the Council. The vacancies, so caused or otherwise, are filled from the same
category by the Central Government and such person shall hold office so long
as the member whose place he fills would have been entitled to hold office,
if the vacancy had not occurred. 2.3-3 Term - The term of the
Council is three years. 2.3-4 Meatings of the
Central Council [Section 5 and rule 4] - Central Council is required to
organise at least one meeting every year. In addition, it may meet as and
when necessary. Time and place of the meeting is decided by the Chairman of
the council. Each meeting of the
Central Council shall be called by giving, not less than ten days from the
date of issue, notice in writing to every member. Every notice of a
meeting of the Central Council shall specify the place and the day and hour
of the meeting and shall contain statement of business to be transacted
thereat. The meeting of the
Central Council shall be presided over by the Chairman. In the absence of the
Chairman, the Vice-Chairman shall preside over the meeting of the Central
Council. In the absence of the Chairman and the Vice-Chairman, the Central
Council shall elect a member to preside over that meeting of the Council. The resolutions passed
by the Central Council are recommendatory in nature. No proceedings of the Central
Council shall be invalid merely by reasons of existence of any vacancy in or
any defect in the constitution of the Council. State Consumer
Protection Councils (State Councils) [Section 7] 2.4-1 Composition - The power to
establish State Councils is with the States. The Act provides that the
Minister incharge of consumer affairs in the State |
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Government
shall be the Chairman of the State Council. About the number and
qualifications of the rest of the members, State is the deciding authority. 2.4-2 Meetings - The State Council
meet at least twice a year. In addition, it may meet as and when necessary.
The council may meet at such time and place as the Chairman may think fit. Procedure in regard to
the transaction of its business is prescribed by the State Government. Working Groups [Rule 3] 2.5 For the purpose of
monitoring the implementation of the recommendations of the Central Council
and to suggest the working of the Council, the Central Government may constitute
from amongst the members of the Council, a Standing Working Group, under the
chairmanship of the Member Secretary of the Council. The Standing Working
Group shall consist of not exceeding 30 members and shall meet as and when
considered necessary by the Central Government. Consumer Forums. 3.1 Ram, a resident of
Panipat district, took his son Shyam to a doctor for eye treatment. Due to
negligence of the doctor, Shyam lost sight of his left eye. Ram filed a suit
against the doctor in District Forum claiming Rs. 4 lakh as compensation. The
District Forum dismissed his complaint on the ground that negligence of the
doctor could not be proved. Ram appealed to Haryana
State Commission against this order. State Commission also upheld the
decision of District Forum. Now Ram approached the National Commission and
made an appeal therein. Ram knew that after National Commission also, he is
still left with an option to approach the Supreme Court against the order of
the Commission. However, the National Commission decided in favour of Ram. The Consumer Protection
Act provides for a 3 tier approach in resolving consumer disputes. There are
three levels of consumer courts — First, there is the
district court, called District Consumer Disputes Rederessal Forum (District
Forum), Next comes the State
Consumer Disputes Redressal Commission (State Commission), At the national level,
there is National Consumer Disputes Redressal Commission (National
Commission). District Forum and State
Commission are formed by States with the permission of the Central Government
while the National Commission is formed by the Central Government. These
forums have not taken away the jurisdiction of the civil courts but have
provided an alternative remedy. The Consumer Protection
Act, 1986 has given powers to the Central and State Governments to make rules
with regard to various aspects of the consumer protection machinery. In our
discussion, we have included the Consumer Protection Rules, 1987 made by the
Central Government, wherever required. |
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Constitution
of the Forums. 3.2 The composition of the
District Forum and the State Commission has been detailed out by the
Consumer Protection Act, 1986. As for the National Commission, the Consumer
Protection Rules, 1987, elaborates upon its composition. 3.2-1 District Forum
[Section 10] 3.2-1a COMPOSITION - District
Forum consist of one president and two other members (one of whom is to be a
woman). The president of the
Forum is a person who is, or has been qualified to be a District Judge, and
other members are 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. The object underlying
the inclusion of non-judicial members appears to be to impart a balance to
the functioning of the District Forum by ensuring that the members are able
to understand the economic and social impact of the matters. Further
inclusion of one female members ensures that the matters are viewed from a
woman’s angle also. 3.2-1b APPOINTING AUTHORITY -
Every appointment of the president and members of the District Forum is made
by the State Government on the recommendation of a selection committee
consisting of the following, namely— (i) the
President of the State Commission — Chairman. (ii) Secretary,
Law Department of the State — Member. (iii) Secretary
incharge of the Department dealing with consumer affairs in the State —
Member. 3.2-1c TERM OF OFFICE [SECTION
10(2)] - Every member of the District Forum is to hold office for a term of
five years or up to the age of 65 years, whichever is earlier. However,
he/she shall not be eligible for re-appointment. 3.2-1d VACANCY - A vacancy in
the office of president or a member may occur after the expiry of his term,
or by his death, resignation, or removal. In terms of proviso to
section 10(2), a member may resign his office in writing under his hand
addressed to the State Government and on such resignation being accepted,
his office shall become vacant and may be filled by the appointment of a
person possessing the requisite qualifications in relation to the category of
the member who has resigned. The Consumer Protection
Act does not have any specific provision for removal of the president and
members of the District Forum. But the consumer protection rules made by
various States provide for such removal. Accordingly, a president or member
of a District Forum may be removed by the State Government, who— (a) has
been adjudged an insolvent, or (b) has
been convicted of an offence involving moral turpitude, or (c) has
become physically or mentally incapable of performing his duties, or |
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(d) has acquired such financial interest in the matter as would
prejudicially affect his functions as president or member, or (e) has
abused his position so as to render his continuance to office prejudicial to
public interest. 3.2-1e TERMS AND CONDITIONS OF
SERVICE [SECTION 10(3)] - 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. Different States have made different rules in this regard. 3.2-2 State Commission
[Section 16] - After the District Forum, State Commission is next in
the hierarchy of Consumer Rederessal Forums under the Act. 3.2-2a COMPOSITION - State
Commission consists of a president and two members one of whom is to be a
woman. President is a person
who is or has been a Judge of a High Court, and the members, are 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. 3.2-2b APPOINTING AUTHORITY -
President of a State Commission is appointed by the State Government after
consultation with the Chief Justice of the High Court. Other members of the
Commission are made by the State Government on the recommendation of a
selection committee consisting of the following, namely— (i) President
of the State Commission — Chairman. (ii) Secretary
of the Law Department of the State — Member. (iii) Secretary,
incharge of Department dealing with consumer affairs in the State — Member. 3.2-2c TERM OF OFFICE [SECTION
16(3)] - Every member of the State Commission shall hold office for five
years or upto the age of 67 years whichever is earlier and he shall not be
eligible for re-appointment. 3.2-2d VACANCY - Rules as to
the vacancy related in the office of the president or any member are similar
to those discussed in context of the members of the District Forum. Refer para
33.2-1d for the details. 3.2-1e TERMS AND CONDITIONS OF
SERVICE [SECTION 16(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. 3.2-3 National
Commission [Section 20] - The National Commission is the top most
layer in the three level hierarchy of the Consumer Forums. 3.2-3a COMPOSITION - The
National Commission consists of a president, and four other members (one of
whom is to be a woman). The president should be the one who is or has
been a Judge of the Supreme Court, and the members should be the persons of
ability, integrity and standing |
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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. 3.2-3b APPOINTING AUTHORITY -
The President is appointed by the Central Government after consultation with
the Chief Justice of India; The appointment of other
members of the Commission is made by the Central Government on the
recommendation of a selection committee. This selection committee
consists of, namely:— (a) a
person who is a Judge of the Supreme Court, to be nominated by the Chief
Justice of India—Chairman. (b) the
Secretary in the Department of Legal Affairs in the Government of (c) Secretary
of the Department dealing with consumer affairs in the Government of India —
Member. Note that before
appointment, the president and member(s) of the National Commission have to
take an undertaking that he does not and will not have any such financial or
other interest as is likely to affect prejudicially his functions as such
member. 3.2-3c TERM OF OFFICE [SECTION
20(3)] - Every member of the National Commission is to hold office for a term
of five years or upto the age of seventy years, whichever is earlier and is
not eligible for re-appointment. 3.2-3d VACANCY - A vacancy in
the office of president or a member may occur after the expiry of his term,
or by his death, resignation, or removal. In terms of proviso to
rule 12(3), the president or a member may resign his office in writing under
his hand addressed to the Central Government, or he can be removed from his
office in accordance with the provisions of rule 13. Removal of the president
and members in certain circumstances: In terms of Rule 13 of the Consumer Protection
Rules, 1987, the Central Government may remove from office, the President or
any member, who — (a) has
been adjudged as an insolvent; or (b) has
been convicted of an offence which, in the opinion of the Central Government,
involves moral turpitude; or (c) has
become physically or mentally incapable of acting as the President or the
member; or (d) has
acquired such financial or other interest as is likely to affect
prejudicially his functions as the President or a member; or (e) has
so abused his position as to render his continuance in office prejudicial to
the public interest; or (f) remain
absent in three consecutive sittings except for reasons beyond his control. Note that the President or any member shall not
be removed from his office on the grounds specified in clauses (d), (e)
and (f) above except on an inquiry held |
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by Central
Government in accordance with such procedure as it may specify in this
behalf and finds the President or a member to be guilty of such ground. Note : 1. A casual vacancy
caused by resignation or removal of the President or any other member of the
National Commission is filled by fresh appointment. 2. When the President of
the National Commission is unable to discharge the functions owing to
absence, illness or any other cause, the senior most member of the National
Commission with judicial background, if authorised so to do by the President
in writing, shall discharge the functions of the President until the day on
which the President resumes the charge of his functions. 3.2-3e TERMS AND CONDITIONS OF
SERVICE [SECTION 20(2)] - In terms of the rules 11 and 12 made by the Central
Government in pursuance of the powers given under the Act, the terms and
conditions of service of the president and the members of the Commission are
as follows: (a) The
President of the National Commission is entitled to salary, allowances and
other perquisites as are available to a sitting Judge of the Supreme Court. (b) The
members, if sitting on whole-time basis, are entitled to a consolidated
honorarium of ten thousand rupees per month or if sitting on part-time basis,
a consolidated honorarium of five hundred rupees per day of sitting. (c) The
President and the members are entitled to travelling and daily allowances on
official tours at the same rates as are admissible to group ‘A’ Officers of
the Central Government. (d) The
President and the members of the National Commission are entitled to
conveyance allowance of one hundred fifty rupees per day of its sitting or a
sum of one thousand and five hundred rupees per month, as may be opted by
them. Notes : 1. The terms and
conditions of service of the President and the members should not be varied
to their disadvantage during their tenure of office. 2. The money payable to
these members and the president shall be defrayed out of the Consolidated
Fund of India. Further it is worth
noting that in case any defect lies in the constitution of the District
Forum, or State Commission or National Commission, or any vacancy remains
therein while proceedings are made for any dispute, such defect or vacancy
shall not affect the validity of the order of the Forum. [Section 29A]. Jurisdiction. 3.3 The term jurisdiction
may be defined as authority or legal power to hear and decide the cases. Thus
a court may adjudicate only those matters which fall under its jurisdiction.
The question of jurisdiction has to be considered with reference to the
value, place, and nature of the subject matter. Example : A and B reside in |
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The general
rule is that if the court rendering the judgment suffers from want of
jurisdiction, its judgment is nullity and may be ignored. Jurisdiction of Consumer
Forums (i.e., consumer courts) differ in terms of monetary value of
claims, geographical area, and appellate powers. 3.3-1 District Forum 3.3-1a PECUNIARY JURISDICTION
- District Forum entertains the cases where the value of claim is upto Rs. 5
Lakh. Where a claim exceed this limit, the matter is beyond the jurisdiction
of the Forum. This limit of Rs. 5 lakh
is as to the value of claim filed by the party. Value of goods or services in
question or value of relief granted is not relevant for this purpose. Example : A purchased machinery
for Rs. 7 lakhs. After working for some time, the machine broke down due to
some manufacturing defect. A filed a claim for compensation worth Rs. 4.5
lakh. Since the value of claim is less than Rs. 5 Lakh, it will fall under
the jurisdiction of District Forum. The complainant has a
right to reduce value of his claim in order to bring his claim within the
jurisdiction of a junior forum. Example : A filed a complaint
with a District Forum claiming Rs. 6,00,000 as against a supplier of
machinery. The complaint was rejected on the ground that it was beyond the
jurisdiction of the District Forum. A revised his claim to 3.3-1b TERRITORIAL
JURISDICTION - Every District Forum has definite geographical limits within
which it can exercise its jurisdiction. A case is supposed to fall within
such territory when at the time of the institution of the complaint— (a) The
party against whom the claim is made actually and voluntarily resides or
carries on business or has a branch office or personally works for gain in
that area, or (b) Where
there are more than one opposite party, each such party actually and
voluntarily resides or carries on business or has a branch office or
personally works for gain in that area, or (c) Where
there are more than one opposite party, and any such party actually and
voluntarily resides or carries on business or has a branch office or
personally works for gain in that area, provided the other parties not so
residing or working agrees, or the District Forum gives permission in this
regard, (d) The
cause of action, wholly or in part, arises in that area. 3.3-1c APPELLATE JURISDICTION
- District Forum is the lowest rung of the ladder of the consumer courts.
Thus this is not an appellate court, i.e., no appeal lies in this
court. 3.3-2a PECUNIARY JURISDICTION
- State Commission entertains the cases where the value of claim exceeds Rs.
5 lakh. But where value of a claim exceed Rs. 20 lakh, the matter is beyond
the jurisdiction of the Commission. |
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Example : A of Note : That although the value
of house is less than 5 lakh, the decisive factor regarding jurisdiction is
the value of claim. 3.3-2b TERRITORIAL
JURISDICTION - The Consumer Protection Act does not specifically provides for
the territorial jurisdiction of the State Commission. Thus it is governed by
the general principle of the law which are contained in section 20 of the
Civil Procedure Code. Broadly these principles
are on the similar lines on which the territorial jurisdiction of District
Forum is based. Thus a suit can be instituted in the State Commission within
whose local limits— (a) the
party against whom the claim is made actually and voluntarily resides or
carries on business or personally works for gain, or (b) where
there are more than one opposite party, each such party actually and
voluntarily resides or carries on business or personally works for gain, or (c) where
there are more than one opposite party, and any such party actually and
voluntarily resides or carries on business or has a branch office or
personally works for gain, provided the other parties not so residing or
working agrees, or the State Commission gives permission in this regard, or (d) the
cause of action, wholly or in part, arises. 3.3-2c APPELLATE JURISDICTION
[SECTION 17(a)(ii)] - State Commission has power to adjudicate
upon the appeals made against the order of the District Forums. Any person
aggrieved by an order made by the District Forum may prefer an appeal against
such order within 30 days from the date of order. However, the State
Commission may entertain an appeal after the expiry of 30 days if it is
satisfied that there was sufficient cause for delay. Note : 30 days are counted not
from the date of order but from the date when the order is communicated to
the appellant. 3.3-2d REVISIONAL JURISDICTION
[SECTION 17(b)] - State Commission may 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 State Commission is of
the view that the District Forum— - has
exercised jurisdiction which it was not entitled to, or - has
failed to exercise such jurisdiction which it was entitled to, or - has
exercised its jurisdiction illegally or with material irregularity. Such revisional
jurisdiction may be exercised by the Commission on its own or on the
application of a party. 3.3-3 National
Commission 3.3-3a PECUNIARY JURISDICTION
- Since National Commission is the highest level of Consumer Forums, it may
entertain all the matters where the value of claim exceeds Rs. 20 lakh. |
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3.3-3b TERRITORIAL
JURISDICTION - The territorial jurisdiction of the National Commission is
whole of However, the Consumer
Protection Act is applicable only if the cause of action arise in Example: The complainant alleged
that they were not properly treated by the Egyptian Airlines authorities at 3.3-3c APPELLATE JURISDICTION
- The National Commission has jurisdiction to entertain appeals against the
order of any State Commission. The appeal may be made within 30 days from the
date of the order of the State Commission. However the National Commission
may entertain an appeal filed after the expiry of 30 days if it is satisfied
that there was sufficient cause for not filing the appeal within the given
time. 3.3-3d REVISIONAL JURISDICTION
[SECTION 21(b)] - National Commission can call for the records and
pass the appropriate orders in any consumer dispute which is pending before
or has been decided by any State Commission it is of the view that the State
Commission— - has
exercised jurisdiction which it was not entitled to, or - has
failed to exercise such jurisdiction which it was entitled to, or - has
exercised its jurisdiction illegally or with material irregularity. Note that the revisional
jurisdiction is available to the National Commission only in the cases where
there has been wrongful, illegal, and improper exercise of jurisdiction or
failure to exercise jurisdiction on the part of State Commission. Example: K made an appeal to the
National Commission against the order of the State Commission whereby the
State Commission had made an order against him although he was not a made a
party to the dispute by the complainant. The National Commission observed
that the order of the State Commission was vitiated by illegal exercise of
jurisdiction resulting immaterial irregularity and accordingly, the same was
liable to be set aside - Kinetic Engineering Ltd. v. Samasi
Saunand [1993] II CPR 409 (NC). Procedures 3.4 We understand that the
Consumer Forums are the bodies who function like courts in order to settle
the consumer disputes. Their composition is so made as to best represent the
interests of the consumers, and they have specified jurisdictions. The next
question is - what procedure these Forums adopt in order to deal with the
consumer disputes. Section 13 of the Act has detailed the
procedure in context of District Forum only. For State Commission, section 18
says that it will follow the same procedure as followed by District Forum
with such modifications as necessary, and for the National Commission,
section 22 gives power to the Central Government to make rules in this
regard. These rules in turn have included |
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therein the
procedure given by section 13. In addition, these rules have prescribed some
procedures to be followed by the parties to the complaint. A complaint may be made
with respect to the goods or services. When complaint relates to goods, the
criteria for the decision is - whether the goods are defective or not. Now
the question is - how to hold that the goods are defective. The most logical
way is to get the goods tested to determine the defect. However, in certain
cases defect can be determined without technical support or it may happen
that the test is not feasible. These are— - The
opposite party admits the defect. - The
defect is obvious and is visible to naked eyes, like in a complaint about
contamination of water, the sample of water given was so dirty that the Forum
did not consider it necessary to send it for test. - When
the complainant is not in possession of the subject matter of the complaint,
e.g., in a matter the complainant had given to the dealer the tyre and
tube which had burst, the dealer sent the same to the manufacturer. Thus the
complainant was not in possession of the same. - When
subject matter of the complaint gets destroyed, like in case a pressure
cooker burst, its remains can’t be send to the laboratory for testing. - In
case of complaint regarding deficiency in service there is no question of
testing or analysis. Thus the procedure to be
followed by the Forums can be discussed under the two heads— 1. where
laboratory test is required to determine the defect in goods. 2. where
no laboratory test is required to determine the defect in goods or the
complaint relates to services. 3.4-1 Procedure to be
followed by the District Forum [Section 13] - The following
procedure is equally applicable to the District Forum, State Commission with
required modifications, and National Commission with additional procedures
required by the rules. 3.4-1a WHERE LABORATORY TEST
IS REQUIRED TO DETERMINE THE DEFECT IN GOODS - A consumer is supposed to file
as many copies of the complaint as there are number of judges, with all essential
information, supporting papers like correspondence, and specifying the
compensation demanded. On receipt of such
complaint— (a) The
District Forum should refer a copy of the complaint to the opposite party
directing him to give his version of the case within a period of thirty days
which can be extended to forty five days. Where the opposite party on receipt
of a complaint referred to him 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 would take
the following steps to settle the dispute : |
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(b) The District Forum may require the complainant to deposit
specified fees for payment to the appropriate laboratory for carrying out the
necessary analysis or test in relation to the goods in question. (c) The
District Forum will obtain a sample of the goods, seal it, authenticate it
and refer the sample so sealed to the *appropriate laboratory for an
analysis or test, whichever may be necessary, with a view to finding out
whether such goods suffer from any defect. The District Forum will remit the
fees to the appropriate laboratory to enable it to carry out required
analysis or test. The laboratories supposed to report
its findings to the District Forum within a period of fifty-five days. This
period is extendible by the District Forum. (d) Upon
receiving laboratory’s report, its copy will be forwarded by the District
Forum to the opposite party alongwith its own remarks. (e) In
the event of any party disputing the correctness of the findings, or the
methods of analysis or test adopted by the appropriate laboratory, the
District Forum shall require the objecting party to submit his objections in
writing. (f) The
District Forum will give an opportunity of hearing to the objecting party. (g) The
District Forum shall issue appropriate order after hearing the parties. 3.4-1b WHERE NO LABORATORY
TEST IS REQUIRED TO DETERMINE THE DEFECT IN GOODS OR THE COMPLAINT RELATES TO
SERVICES (a) On
receiving the complaint, the District Forum should refer a copy of the
complaint to the opposite party directing him to give his version of the case
within a period of thirty days which can be extended to forty five days. (b) The
opposite party on receipt of a complaint referred to him may— (i) admit the complaint (ii) deny or dispute the allegations contained
in the complaint, or (iii) omits or fails to respond within the time
given by the District Forum. (c) Where
the opposite party admits the allegation, the District Forum should decide
the matter on the basis of the merits of the case and the documents before
it. Where the opposite party denies or
disputes the allegations made in the complaint, the District Forum will
proceed to settle the dispute on the basis of evidence brought to its notice
by both the parties. Where the opposite party omits or
fails to respond within the time given by the Forum, the District Forum will
proceed to settle the dispute on the basis of evidence brought to its notice
by the complainant. (d) The
District Forum shall issue an appropriate order after hearing the parties and
taking into account available evidence. |
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Note : Although this procedure
may be followed by all - the District Forum, State Commission, and National
Commission, we have used the name of ‘District Forum’ while describing the
procedure. *What is an
appropriate laboratory under the Act Section 2(1)(a)
of the Act defines an “appropriate laboratory” as a laboratory or
organisation— (i) recognised
by the Central Government; (ii) recognised
by a State Government, subject to such guidelines as may be prescribed by the
Central Government in this behalf; or (iii) any
such laboratory or organisation established by or under any law for the time
being in force, which is maintained, financed or aided by the Central
Government or a State Government for carrying out analysis or test of any
goods with a view to determining whether such goods suffer from any defect. Note : Rule 2A of the Consumer
Protection Rules, 1987 provides the procedure to be followed by the
laboratories in order to get recognition from the States. We have not
discussed this procedure here since it is beyond purview of our study. 3.4-2 Procedure to be
followed by the National Commission [Section 22] - Section 22 of the Act
provides that the National Commission shall follow such procedure as
prescribed by the Central Government. The Consumer Protection Rules, 1987
framed by the Central Government lay down the procedure which is as follows : (1) A complaint
containing the following particulars shall be presented by the complainant in
person or by his agent to the National Commission or be sent by registered
post, addressed to the National Commission : (a) the
name, description and the address of the complainant; (b) the
name, description and address of the opposite party or parties, as the case
may be, so far as they can be ascertained; (c) the
facts relating to the complaint and when and where it arose; (d) documents
in support of the allegations contained in the complaint; (e) the
relief which the complainant claims. (2) The National
Commission shall, in disposal of any complaint before it, as far as possible,
follow the procedures laid down section 13 of the Act. (discussed in para
33.4-1) (3) On the date of
hearing, it shall be obligatory on the parties or their agents to appear
before the National Commission. Where the complainant or his agent fails to
appear, the National Commission may either dismiss the complaint for default
or decide it on merits. Where the opposite party or its agent fails to appear
on the date of hearing the National Commission may decide the complaint ex
parte. (4) The complaint shall be
decided as far as possible within a period of three months from the date of
notice received by opposite party where complaint |
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consumer protection act |
2.36 |
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does not
require analysis or testing of commodities and within five months if it
requires analysis or testing of commodities. (5) After the
proceedings, the National Commission shall issue the orders accordingly.
(Refer para 33.5-3) Powers of the Consumer
Forums [Sections 13(4), 14(1) and Rule 10] 3.5 For the purpose of
adjudicating a consumer dispute, section 13(4) has vested the Consumer Forums
with certain powers of a civil court. Apart from these powers, the Central
Government has provided some additional powers to them under Rule 10 of the
Consumer Protection Rules, 1987. Finally section 14 of the Act has provided
them with the power to issues orders. 3.5-1 Powers akin to
those of civil court [Section 13(4)] - The Forums are vested with the (a) summoning
and enforcing the attendance of any defendant or witness and examining the
witness on oath; (b) discovery
and production of any document or other material object producible as
evidence; (c) receiving
of evidence on affidavits; (d) requisitioning
of the report of the concerned analysis or test from the appropriate
laboratory or from any other relevant source; (e) issuing
of any commission for the examination of any witness; and (f) any
other matter which may be prescribed. 3.5-2 Additional
powers of the consumer forums [Rule 10] - The National Commission, the State
Commission and the District Forum have following additional powers : (a) Requiring
production of any books, accounts, documents, or commodities from any person,
examining and retaining them. (b) Obtaining
information required for the purpose of the proceedings from any person. (c) enter
and search any premises and seize from such premises books, papers,
documents, commodities required for the purpose of proceedings under the Act. 3.5-3 Power to issue
order [Section 14(1)] - If, after the proceedings, the Forum is satisfied that
the complainant suffer from any defect in goods or deficiency in service, it
may 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; |
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2.37 |
consumer protection act |
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|
(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 or deficiencies in the services in question; (f) to
discontinue the unfair trade practice or the restrictive trade practice or
not to repeat it; (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 complainant. Sitting of the Forums 3.6 The law has provided
certain norms as to the number of judges who will handle a dispute. The
rationale must have been to make the decisive body as broad as possible. 3.6-1 Sitting of the
District Forum
- For conducting any proceedings to resolve a consumer dispute, at least two
members of the Forum must be there one of whom should be the president. Where the member, for
any reason, is unable to conduct the proceeding till it is completed, the
President and the other member shall conduct such proceeding de novo i.e.
from the beginning. Example - A District Forum has
three members, P the president, and X and Y, the other two members. P and X
started dealing with a particular case. In the meantime, X fell ill and
dropped out. Now the proceedings in the given case will be started afresh by
P and Y (or any other member appointed in place of X). 3.6-2 Sitting of the
State Commission
- Every proceeding is required to be conducted by the president of the State
Commission and at least one member thereof sitting together. However, if for any
reason the member is unable to conduct the proceeding till it is completed,
the president and the other member shall conduct such proceeding afresh. 3.6-3 Sitting of the
National Commission - The disputes must be disposed of by at least three
members of the National Commission, one of whom must be the president (or the
senior most member authorised to work as president). Where the member(s) for
any reason are unable to conduct the proceeding till it is completed, the
president (or the senior most member acting as president) shall conduct the
proceeding afresh. Note that the rules
regarding sitting are mandatory. Any failure to comply with the same may
invalidate the order. Orders of the Forums 3.7 The orders of the
Consumers Forums are like orders of the |
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consumer protection act |
2.38 |
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3.7-1 District Forum - Signing
requirement
- Section 14(2A) provides that every order made by the District Forum shall
be signed by its President and the member or members who conducted the
proceeding. Example : A complaint was
dismissed by the President of a District Forum where other members of the
Forum were not parties to it. On appeal, the State Commission held that
section 14(2) of the Act makes it abundantly clear that for the decision on a
complaint, one member of the Forum is must besides the President. Thus in the
present case, the President of the Forum alone is not competent to dismiss
the claim - Pankaj v. Chairman Central Secondary Education Board
[1991] 1 CPR 711 If there is difference
of opinion between any two members, matter should be referred to the third
member for a decision. And the decision of the majority would be final. Thus
any order passed by a single member of the District Forum is not warranted. If there is difference
of opinion between any two members, matter should be referred to the third
member for a decision. And the decision of the majority would be final. 3.7-3 National
Commission - Signing requirement - Every order made by the National Commission
must be signed by the president (or the senior most member acting as
president), and at least two members who conducted the proceeding, and in
case of any difference of opinion, the opinion of the majority shall be the
order of the Commission. 3.7-4 Appeals against
orders
- ‘Appeal’ is a legal instrumentality whereby a person not satisfied with
the findings of a court has an option to go to a higher court to present his
case and seek justice. In the context of Consumer Forums - 1. An
appeal can be made with the State Commission against the order of the
District Forum within 30 days of the order which is extendable for further 15
days. [Section 15] 2. An
appeal can be made with the National Commission against the order of the
State Commission within 30 days of the order or within such time as the
National Commission allows. [Section 19] 3. An
appeal can be made with the Supreme Court against the order of the National
Commission within 30 days of the order or within such time as the Supreme
Court allows. [Section 23] 3.7-5 Finality of
orders
- Where no appeal has been preferred against the order made by the District
Forum, or State Commission, or the National Commission, such order shall be
final. [Section 24] 3.7-6 Penalties for
non-compliance
- Every order made by the District Forum or State Commission, or the National
Commission may be enforced in the same manner as if it were a decree of the
court. [Section 25] |
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2.39 |
consumer protection act |
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All the
persons - the trader, or complainant, or the opposite party, are supposed to
comply with the orders. When any such person fails or omits to comply with
the order, the District Forum, or State Commission, or the National
Commission, as the case may be, may punish him with— - imprisonment
for a term ranging between one month and three years, or - with
fine ranging between Rs. 2,000 and Rs. 10,000, or - with both. |
||
The principal rules were
published in the Gazette of India vide number GSR 398(E) dated 15th
April, 1987 and subsequently amended vide; 1. GSR 533(E) dated 14.8.1991, 2.
GSR 800(E) dated 30.12.1993, 3. GSR 522(E) dated 22.6.1994 , 4. GSR 605(E)
dated 30.8.1995, 5. GSR 759(E) dated 21.11.1995, 6. GSR 95(E) dated
27.2.1997, 7. GSR 88(E) dated 24.2.1998, 8. GSR 175(E) dated 5.3.2004. 9. GSR 50(E)
dated 1.2.2005, 10. GSR 64(E) dated 10.2.2005, 11. GSR 67(E) dated 11.2.2005,
12. GSR 273(E) dated 5.5.2006, 13. GSR 462(E) dated 4.8.2006 and 14. GSR 637(E)
dated 13.10.2006.
THE CONSUMER PROTECTION RULES 1987
(Amended up to 13.10.2006)
In exercise of
the powers conferred by sub-section (1) of section 30 of the Consumer
Protection Act, 1986 (68 of l986), the Central Government hereby makes the
following rules, namely:
1. Short
title, extent and commencement. - (1)
These rules may be called the Consumer Protection (Second Amendment) Rules,
2006.
(2)
They shall come into force on the date
of their publication in the Official Gazette.
2. Definitions.
- ln these rules, unless the
context otherwise requires--
(a) "Act' means
the Consumer Protection Act l986 (68 of 1986);
(b) "agent”
means a person duly authorised by a party to present any complaint, appeal or
reply on its behalf before the National Commission;
(c) "appellant”
means a party which makes an appeal against the order of the State Commission;
(d) "chairman"
means a chairman of the Central Consumer Protection Council established under
sub-section (1 ) of the section 4 of the Act;
(e) "memorandum"
means any memorandum of appeal filed by the appellant;
(f) "opposite
party" means a person who answers complaint or claim;
(g) "president”
means the President of the National Commission;
(h) “respondent”
means the person who answers any memorandum of appeal;
(i) “section"
means section of the Act;
(j) “state” includes
Union territories also;
(k) words and expressions
used in the rules and not defined but defined in the Act shall have the
meanings respectively assigned to them in the Act.
2A. State
Governments to recognise a laboratory as an appropriate Laboratory. - (1) For the purpose of obtaining recognition as an
appropriate laboratory, the applicant shall send application, in triplicate, in
the proforma prescribed by the Bureau of Indian Standards with the relevant
details to the Department concerned with the consumer protection work in the
State Government.
(2)
The State Government on receiving the
application from the applicant, shall forward its two copies to the Bureau of
Indian Standards to assess the suitability of the laboratory from the standards
prescribed by them (Bureau of Indian Standards). The fee charged by the Bureau
of Indian Standards, for this purpose, shall be paid by the applicant.
(3)
The State Government on receiving the
recommendations and approval of the Bureau of Indian Standards, shall notify
that laboratory as an “appropriate laboratory" for the purpose of Consumer
Protection Act, 1986 for a period of three years.
3. The
Constitution of the Central Consumer Protection Council and the Working Groups.
- (1) The Central Government
shall, by notification in the Official Gazette constitute the Central Consumer
Protection Council (herein after referred to as the Central Council)
which shall consist of the following members, not exceeding 35, namely:—
(a) the Minister
in-charge of Consumer Affairs in the Central Government who shall be the Chairman
of the Central Council;
(b)
the Minister of State (where he is not
holding independent charge) or Deputy Minister in charge of Consumer Affairs in
the Central Government who shall be the Vice-Chairman of the Central Council;
(c)
the
Minister in-charge of Consumer Affairs of two of the States from each region as
mentioned in Schedule I to be changed by rotation on expiration of the term of
the Council on each occasion;
(ca) an administrator (whether designated as
administrator or Lieutenant Governor), of a Union Territory, to represent a
Union Territory, as mentioned in Schedule II, to be changed by rotation on
expiration of the term of the Council on each occasion;
(d) two Members of Parliament — one from the Lok
Sabha and one from the Rajya Sabha;
(f) representatives
of the Central Government Departments and autonomous orginisations concerned
with consumer interests—not exceeding five;
(f(a)The Registrar, National Consumer Disputes Redressal
Commission,
(g)
representatives of the Consumer
Organisations from amongst the Indian members of the International
Organisation, namely, Consumer International – not exceeding six, to be
nominated by the Central Government;
(ga) representatives
with proven expertise and experience who are capable of representing consumer
interests, drawn from amongst consumer organizations, consumer activists,
women, farmers trade and industry – not exceeding five, one from each of the
regions specified in Schedule annexed to these rules;
(j)
the Secretary in-charge of Consumer
Affairs in the State to be nominated by the Central Government – not exceeding
three;
(k)
the Secretary in-charge of Consumer
Affairs in the Central Government shall be the member – secretary of the
Central Council.
(2) The term of the
Council shall be three years.
(3) Any member may,
by writing under his hand to the Chairman of the Central Council, resign from
the Council. The vacancies, so caused or otherwise, shall be filled from the
same category by the Central Government and such person shall hold office so
long as the member whose place he fills would have been entitled to hold
office, if the vacancy had not occurred.
4. Procedure
of the Central Council.—Under sub-section
(2) of section 5, the Central Council shall observe the following procedure in
regard to the transaction of its business,—
(1) The
meeting of the Central Council shall be presided over by the Chairman. In the
absence of the Chairman, the Vice-Chairman shall preside over the meeting of
the Central Council. In the absence of the Chairman and the Vice-Chairman, the
Central Council shall elect a member to preside over that meeting of the
Council.
(2) Each
meeting of the Central Council shall be called by giving, not less than ten
days from the date of issue, notice in writing to every member.
(3) Every
notice of a meeting of the Central Council shall specify the place and the day
and hour of the meeting and shall contain statement of business to be
transacted thereat.
(4)
No
proceedings of the Central Council shall be invalid merely by reasons of
existence of any vacancy in or any defect in the constitution of the Council.
(5)
For
the purpose of performing its functions under the Act, the Central Council may
constitute from amongst its members, such working groups as it may deem
necessary and every working group so constituted shall perform such functions
as are assigned to it by the Central Council. The findings of such working
groups shall be placed before the Central Council for its consideration.
(6)
In
connection with the journey undertaken to and fro by the non-official members
for attending the meeting of the Central Consumer Protection Council or its
working group, they shall be entitled to avail first class or two-tier air-
conditioned class of railway accommodation by all trains (including
Rajdhani Express) and claim such fare or cost of actual mode of travel,
whichever is less. The non-official members from Island territories shall
be entitled to, to and fro air journey (economy class) in domestic airlines
from the
(7)
The
resolution passed by the Central Council shall be recommendatory in nature.
5. Place of
the National Commission.—The office of the
National Commission shall be located in the Union Territory of Delhi.
6. Working
days and office hours of the National Commission.—The working days and office hours of the National
Commission shall be the same as that of the Central Government.
7. Seal and
emblem.—The official seal and emblem of the
National Commission shall be such as the Central Government may specify.
8. Sitting
of the National Commission.—The sitting of
the National Commission as and when necessary, shall be convened by the
President.
9. Staff of
the National Commission.—The Central
Government shall appoint such staff as may be necessary to assist the National
Commission in its day to day work and to perform such other functions as are
provided under the Act and these rules or assigned to it by the President. The
salary payable to such staff shall be defrayed out of the Consolidated Fund of
India.
9A. Fee for
making complaints before District Forum - (1)
Every complaint filed under sub-section (1) of section 12, sub-section (1) of
section 17 and clause (a) in sub-clause (i) of section 21 of the Act shall be
accompanied by a fee as specified in the table given below in the form of
crossed Demand Draft drawn on a nationalised bank or through a crossed Indian
Postal Order drawn in favour of the Registrar of the State Commission and
payable at the respective place where the State Commission or the National
Commission is situated.
(2) The concerned
authority referred to in sub-rule (1) shall credit the amount of fee received
by it into the Consumer Welfare Fund of the respective State and where such
fund is not established into the Receipt Account of the State Government and in
the case of the National Commission, to the Consumer Welfare Fund of the
Central Government.
TABLE
|
Sl. No. |
Total Value of goods or services and the compensation
claimed |
Amount of fee payable |
|
(1) |
(2) |
(3) |
|
|
District Forum
|
|
|
(1) |
Upto
one lakh rupees – For complainants who are under the Below Poverty Line
holding Antyodaya Anna Yojana Cards |
Nil |
|
(2) |
Upto
one lakh rupees – For complainants other than Antyodaya Anna Yojana card
holders. |
Rs.100 |
|
(3) |
Above
one lakh and upto five lakh rupees |
Rs.200 |
|
(4) |
Above
five lakh and upto ten lakh rupees |
Rs.400 |
|
(5) |
Above
ten lakh and upto twenty lakh rupees |
Rs.500 |
|
|
State Commission
|
|
|
(6) |
Above
twenty lakh and upto fifty lakh rupees |
Rs.2000 |
|
(7) |
Above
fifty lakh and upto one crore rupees |
Rs.4000 |
|
|
National Commission
|
|
|
(8) |
Above
one crore rupees |
Rs.5000 |
TABLE
|
Sl. No. |
Value of goods or services and
the compensation claimed |
Amount of fee payable |
|
(1) |
(2) |
(3) |
|
|
District Forum
|
|
|
(1) |
(1)
Upto one lakh rupees |
Rs.100 |
|
(2) |
One
lakh rupees and above but less than five lakh rupees |
Rs.200 |
|
(3) |
Five
lakh rupees and above but less than Rs.10 lakh |
Rs.400 |
|
(4) |
Ten
lakh rupees and above but not exceeding twenty lakh rupees |
Rs.500 |
(3) The
complainants who are under the Below Poverty Line shall be entitled for the
exemption of payment of fee only on production of an attested copy of the
Antyodaya Anna Yojana cards.
10. Additional
powers of the National Commission, State Commission and District Forum. - (1) The National Commission, the State Commission and the
District Forum shall have power to require any person,—
(a) to produce
before, and allow to be examined and kept by an officer of the National
Commission, the State Commission or the District Forum, as the case may be, specified
in this behalf, such books, accounts, documents or commodities in the custody
or under the control of the person so required as may be specified or described
in the requisition, if the examination of such books, accounts, documents or
commodities are required for the purpose of this Act;
(b) to furnish to an
officer so specified, such information as may be required for the purpose of
this Act.
(2)(a) Where during
any proceedings under this Act, the National Commission, the State Commission
or the District Forum, as the case may be, has any ground to believe that any
book, paper, commodity or document which may be required to be produced in such
proceedings, are being or may be, destroyed, mutilated, altered, falsified or
secreted, it may, by written order, authorise any officer to exercise the power
of entry and search of any premises. Such authorised officer may also seize
such books, papers, documents or commodities as are required for the purpose of
this Act:
Provided that such seizure shall be communicated to the
National Commission, the State Commission or the District Forum, as the case
may be, as soon as it is made or within a period not exceeding 72 hours of
making such seizure after specifying the reasons in writing for making such
seizure.
(b) The National
Commission, the State Commission or the District Forum, as the case may be, on
examination of such seized documents or commodities, as the case may be, may
order the retention thereof or may return it to the party concerned.
10A. Credit of the fine into the Consumer
Welfare Fund when consumers are not identified conveniently.
(1) Where an order is
passed by the National Commission in exercise of the powers vested under clause
(hb) of sub-section (1) of section 14 directing the opposite party to pay such
amount as determined by it on account of loss or injury suffered due to defects
in goods complained ~gains~ or alleged deficiency of service to a large number
of consumers, who are not identifiable conveniently;
Such sum shall be credited by the National Commission in the
Consumer Welfare Fund established by the Central Government under section 12
(C) of the Central Excise Act, '1944 (1 of 1944).
(2) Any amount
credited to the said Fund shall be utilized in accordance with the provisions
of the Consumer Welfare Fund Rules, 1992.
10B. Number of
Members in the National Commission: - The
National Commission shall consist of not less than four members and not more
than nine members and at least one of them shall be a woman.
11. Salaries,
honorarium and other allowances of the President and Members of the National
Commission.—(1) The President of the National
Commission shall be entitled to salary, allowances and other perquisites as are
available to a sitting Judge of the Supreme Court.
(1A) The other members of the National Commission appointed
on whole time basis shall be entitled to the following honorarium and other
allowances with effect from the 1st day of April, 2006, namely :-
(a)
the members shall be paid twenty-three
thousand rupees per month by way of honorarium:
Provided that the members, who are retired Judges of High
Courts or retired Secretaries to the Government of India shall have the option
to either receive consolidated honorarium of twenty-three thousand rupees per
month or receive remuneration of last pay drawn less pension;
(b)
a woman who has not held an office of
profit earlier, on appointment as a member shall be entitled to a pay in the
scale of Rs.24050-26000 per month along with other benefits;
(c)
the members shall be provided with
Government accommodation or receive house rent allowance of eight thousand
rupees per month in lieu thereof;
(d)
the members shall be paid conveyance
allowance at the rate of ten thousand rupees per month, if no chauffeur driven
government vehicle is provided in which event one hundred fifty liters of
petrol shall be supplied or the price thereof shall be paid;
(e)
the members shall be entitled to one
thousand free calls for the telephone installed at their residence, with STD
and ISD facilities; and
(f)
the members shall be entitled to
fifteen days casual leave in a year.
(2) The members shall be entitled to traveling
and daily allowances on official tours at the same rates as are admissible to
group 'A' Officers of the Central Government.
(3) The honorarium or
the salary, as the case may be, and other allowances shall be defrayed out of
the Consolidated Fund of India.
12. Terms and
conditions of service of the President and members of the National
Commission.--(1) Before appointment, the
President and a member of the National Commission shall have to take an
undertaking that he does not and will not have any such financial or other
interest as is likely to affect prejudicially his functions as such member.
(3) Notwithstanding anything contained in sub-rule (2) the
President or a member may.—
(a) by writing under
his hand and addressed to the Central Government resign his office at any time
but his office shall become vacant only when such resignation is accepted by
the Central Government,
(b) be removed from
his office in accordance with the provisions of rule 13.
(4) The terms and
conditions of service of the President and the members shall not be varied to
their disadvantage during their tenure of office.
(5) A casual vacancy
caused by resignation or removal of the President or any other member of the
National Commission under sub-rule (3) or otherwise shall be filled by fresh
appointment.
(6) when the office
of the President of the National Commission is vacant or a person occupying
such office is by reason of absence or otherwise, unable to perform the duties
of his office, the same shall, save as otherwise provided in the proviso to
section 22 D be performed by the senior most member of the National Commission.
(7) The President or
any member ceasing to hold office as such shall not hold any appointment in or
be connected with the management or administrations of an organisation which
have been the subject of any proceeding under the Act during his tenure for a
period of 5 years from the date on which he ceases to hold such office.
12A. Procedure
for selection of members. - (1) Save as
otherwise provided in sub-rule (2), the process of appointment of a member
shall be initiated at least three months before the vacancy arises.
(2) If a post falls
vacant due to resignation or death of a member or creation of a new post, the
process for filling the post shall be initiated immediately after the post has
fallen vacant or its created, as the case may be.
(3) An advertisement of a vacancy inviting applications from
eligible candidates may be published in leading newspapers in
(4) After scrutiny of
the applications received till the last date specified for receipt of
applications, a list of eligible candidates alongwith their applications shall
be placed before the Selection Committee constituted under the third proviso to
sub-section (1) of section 20.
(5) The Selection Committee shall consider all the
applications of eligible applicants referred to it.
(6) The Selection
Committee shall, subject to the provisions of sub-rule (6A), assess the
suitability of the candidates for the post of Member.
Provided
that the Selection Committee may, if it considers necessary, depending on the
number of candidates, short list them on the basis of comparative merit and
experience of such candidates for selection.
(6A) The Selection Committee shall assess the suitability of
the candidates and where short listing is done, from among the short-listed
candidates, for the post of Member in the Following manner, namely:-
(a)
in the case of candidates having
judicial background, by assessing them on the basis of the judgments and other
judicial orders passed by such candidates;
(b)
in the case of candidates having
experience of working under the Central Government or any State Government or
an undertaking under the Central Government or a State Government, by assessing
such candidates on the basis of their Annual Confidential Reports and their
experience relevant to the post applied for;
(c)
in other cases, the suitability of the
short listed candidates shall be assessed by the Selection Committee on the
basis of personal interview conducted by it:
Provided that notwithstanding anything contained in this
sub-rule, the Selection Committee may, for assessing the suitability of a class
or category of candidates, if it considers necessary, call such class or
category of candidates for interview for assessing their suitability for the
post of Member.
(7) The Selection
Committee may, on the basis of its assessment made by it, recommend a panel of
names of candidates for appointment as members from amongst the applicants
referred to in sub-rule (5) in order of merit for the consideration of the
Central Government.
(8) The Central
Government shall, before seeking approval of the Appointments Committee of the
Cabinet, verify or cause to be verified the credentials and antecedents of the
candidates selected by the Central Government from the panel recommended by the
Selection Committee and satisfy the suitability of such candidates for
appointment as members.
(9) Every appointment
of a member shall be subject to his medical fitness.
13. Removal
of President or members from office in certain circumstances. - (1) The Central Government may remove from office, the
President or any member, who,—
(a) has been adjudged
as an insolvent; or
(b) has been
convicted of an offence which, in the opinion of the Central Government,
involves moral turpitude; or
(c) has become
physically or mentally incapable of acting as the President or the member; or
(d) has acquired such
financial or other interest as is likely to affect prejudicially his functions
as the President or a member; or
(e) has so abused his
position as to render his continuance in office prejudicial to the public
interest ;or
(f) remain absent in
three consecutive sittings except for reasons beyond his control.
(2) Notwithstanding
anything contained in sub rule (1), the President or any member of the National
Commission shall not be removed from his office except by an order made
by the Central Government on the grounds specified in clauses (d), (e) and (f)
of that sub-rule and after an inquiry held by a sitting Judge of the Supreme
Court nominated by the Chief Justice of India in which the President or member
of the National Commission, as the case may be, has been informed of the
charges against him and given a reasonable opportunity of being heard in
respect of those charges and found guilty.
14. Procedure
to be followed by the National Commission.—(1)
A complaint containing the following particulars shall be presented by the
complainant in person or by his agent to the National Commission or be
sent by registered post, addressed to the National Commission:
(a) the name,
description and the address of the complainant;
(b) the name,
description and address of the opposite party or parties, as the case may be,
so far as they can be ascertained;
(c) the facts
relating to the complaint and when and where it arose;
(d) documents in
support of the allegations contained in the complaint;
(e) the relief which
the complainant claims.
(1A) Every complaint
under sub-rule (1) shall be accompanied by the relevant fee as is
specified in rule 9A.
(1B) Every complaint
under sub-rule (1) shall be filed in quadruplicate or with such number of
copies as may be required by the National Commission.
(2) The National
Commission shall, in disposal of any complaint before it, as far as possible,
follow the procedure and conditions including the provisions governing adjournments
as laid down in sections 12 and 13 in relation to the complaints received by
the District Forum, with such modification as may be considered necessary by
the Commission.
(3) On the date of
hearing or any other date to which hearing could be adjourned, it shall be
obligatory on the parties or their agents to appear before the National
Commission. Where the complainant or his agent fails to appear before the
National Commission on such days, the National Commission may in its discretion
either dismiss the complaint for default or decide it on merits . Where the
opposite party or its agent fails to appear on the date of hearing the National
Commission may decide the complaint ex-parte.
(4) The National
Commission may, on such terms as it deems fit and at any stage of the
proceedings, adjourn the hearing of the complaint but the complaint shall be
decided as far as possible within a period of three months from the date of
notice received by opposite party where complaint does not require analysis or
testing of commodities and within five months if it requires analysis or
testing of commodities.
(4A) In the event of a complaint being disposed of after the
period specified in sub-rule (4), the National Commission shall record in
writing, the reasons for the delay in such disposal.
(5) If after the
proceedings conducted under sub-rule (3), the National Commission is satisfied
with the allegations contained in the complaint, it shall issue orders to the
opposite party or parties, as the case may be, directing him or them to take
one or more of the things as mentioned in sub-section (1) of section 14. The
National Commission shall also have the power to direct that any order passed
by it, where no appeal has been preferred under section 23 or where the order of
the National Commission has been affirmed by the Supreme Court under that
section, be published in the Official Gazette or through any other media and no
legal proceedings shall lie against the National Commission or any media for
such publication.
14A. Appeals
before National Commission.- Every appeal
filed in terms of section 19 shall be accompanied by such amount as
specified in the second proviso to the said section and such amount may be
remitted in the form of a crossed Demand Draft drawn on a nationalized
bank in favour of the Registrar, National Commission, payable at
Explanafion.- In
this rule, "nationalized bank" means a corresponding new bank
specified in the First Schedule to the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank
specified in the First Schedule to the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980 (40 of 1980).
15. Procedure
for hearing the appeal.-- (1) Memorandum
shall be presented by the appellant or his agent to the National Commission in
person or be sent by registered post addressed to the Commission.
(2) Every
memorandum filed under sub-rule (I) shall be in legible handwriting preferably
typed and shall set forth concisely under distinct heads, the grounds of appeal
without any argument or narrative and such grounds shall be numbered
consecutively.
(3) Each
memorandum shall be accompanied by a crossed demand draft as referred to in
rule 14A and by a certified copy of the order of the State Commission
appealed against and such of the documents as may be required to support
grounds of objection mentioned in the memorandum.
(4) When
the appeal is presented after the expiry of the period of limitation as
specified in the Act, the memorandum shall be accompanied by an application
supported by an affidavit setting forth the facts on which the appellant relies
to satisfy the National Commission that he has sufficient cause for not
preferring the appeal within the period of limitation.
(5) The
appellant shall submit four copies or
such number of copies of the memorandum
to the Commission for official purpose.
(6) On
the date of hearing or on any other day to which hearing may be adjourned, it
shall be obligatory for the parties or their agents to appear before the
National Commission . If appellant or his agent fails to appear on such date,
the National Commission may in its discretion either dismiss the appeal or
decide ex-parte on merits. If the respondent or his agent fails to
appear on such date, the National Commission shall proceed ex-parte and
shall decide the appeal on merits of the case.
(7) The
appellant shall not, except by leave of the National Commission, urge or be
heard in support of any ground of objection not set forth in the memorandum but
the National Commission, in deciding the appeal, may not confine to the grounds
of objection set forth in the memorandum:
Provided that the Commission shall not
rest its decision on any other ground other than those specified in the
memorandum unless the party who may be affected thereby, has been given, an
opportunity of being heard by the National Commission.
(8) No adjournment
shall ordinarily be granted by the National Commission, unless sufficient cause
is shown and the reasons for grant of adjournment have been recorded in writing
by the Commission. The National Commission may also adjourn the hearing of the
appeal suo motu, on such terms as it may think fit and at any stage of the
proceedings for reasons to be recorded in writing. The appeal shall be decided,
as far as possible, within ninety days from the date of its admission. In the
event of an appeal being disposed of after the period so specified, the
National Commission shall record in writing the reasons of the same at the time
of disposal of the said appeal.
(9) The order of the
National Commission shall be communicated to the parties concerned free of
cost.
15A. Sitting
of the National Commission and signing of orders. - (1) Every proceeding
of the National Commission shall be conducted by the President or the
seniormost member authorised and at least two members thereof sitting together
except when a bench is constituted by the President of the National Commission
with one or more members as he may deem fit.
Provided that where the member or members for any reason are
unable to conduct the proceeding till it is completed, the President or the
senior most member, as provided in section 22D of the Act, shall conduct such
proceedings from the state at which it was last heard by the previous member.
(2) Every order made
by the National Commission shall be signed by the President or the seniormost
member as provided in section 22D and at least two members who conducted the
proceeding and if there is any difference of opinion among themselves, the
opinion of majority shall be the order of the National Commission:
Provided that where the proceeding is conducted by the
President or the seniormost member as provided in section 22D and three members
thereof and they differ on any point or points, they shall state the point or
points on which they differ and refer the same to the other member for hearing
on such point or points and such point or points shall be decided accordingly
to the opinion of the majority of the National Commission.
16. Manner of
deposit of amount in appeals before Supreme Court - Every appeal filed before the Supreme Court in terms of
section 23 shall be accompanied by an amount as provided in the second proviso
to that section and such amount may be remitted in the form of a crossed
Demand Draft drawn on a nationalized bank in favour of Registrar, Supreme
Court, payable at Delhi.
Explanation.- In
this rule, "nationalized bank" means a corresponding new bank
specified in the First Schedule to the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank
specified in the First Schedule to the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980 (40 of 1980)
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1.4 Consumer
welfare fund GSR
895(E), Dated 25-11-1992 In exercise of the
powers conferred by sub-section (2) of section 37, read with section 12D of
the Central Excises and Salt Act, 1944 (1 of 1994), the Central Government
hereby makes the following rules, namely :— Short title and
commencement. 1. (1) These rules may
be called the Consumer Welfare Fund Rules, 1992. (2) They shall come into
force on the date of their publication in the Official Gazette. Definitions. 2. In these rules,
unless the context otherwise requires,— (a) “Act”
means the Central Excises and Salt Act, 1944 (1 of 1944), or, as the case may
be, the Customs Act, 1962 (52 of 1962); 1[(b) “Applicant” means any agency/organisation
engaged in consumer welfare activities for a period of three years registered
under the Companies Act, 1956 (1 of 1956) or under any other law for the time
being in force, including village/mandal/Samiti level cooperatives of
consumers especially Women, Scheduled Castes and Scheduled Tribes, or any
industry as defined in the Industrial Disputes Act, 1947 (14 of 1947) recommended
by the Bureau to be engaged for a period of five years in viable and useful
research activity which has made, or is likely to make, significant
contribution in formulation of standard mark of the products of mass
consumption, or State Government, and includes a consumer for the purpose of
reimbursing legal expenses as referred to in clause (d) of rule 8 of
these rules;] (c) “Application”
means an application in Form A-I, appended to these rules; (d) “Bureau”
means the Bureau of Indian Standards constituted under the Bureau of Indian
Standards Act, 1986 (63 of 1986); (e) “Central
Consumer Protection Council” means the Central Consumer Protection Council
established under sub-section (1) of section 4 of the Consumer Protection
Act, 1986 (68 of 1986), for promotion and protection of rights of consumers; (f) “Committee”
means the Committee constituted under rule 5; |
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1. Substituted by the Consumer Welfare Fund (Amendment) Rules,
1994, w.e.f. 27-1-1994. |
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(g) “Consumer” has the same meaning as assigned to it in clause (d)
of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of
1986), and includes consumer of goods on which duty has been paid. (h) “Consumer
Welfare Fund” means the fund established by the Central Government under
sub-section (1) of section 12C of the Central Excises and Salt Act, 1944 (1
of 1944); (i) “Duty”
means the duty paid under the Act ; 2[i-a) “Proper Officer” means the officer having
the power under the Act to make an order that the whole or any part of the
duty is refundable;] (j) “Standard
mark” shall have the same meaning as assigned to it in clause (t) of
section 2 of the Bureau of Indian Standards Act, 1986 (63 of 1986); (k) “Welfare
of the Consumers” includes promotion and protection of rights of consumers; (l) Words
and expressions used in the rules and not defined but defined in the Consumer
Protection Act, 1986 (68 of 1986) shall have the meanings respectively
assigned to them in that Act. Establishment of
Consumer Welfare Fund. 3. There shall be established a Consumer
Welfare Fund with the Central Provided that any amount having
been credited to the Fund is ordered or directed as payable to any claimant
by orders of proper officer, appellate authority or court, shall be paid from
the Fund. Maintenance of Accounts
and Records of Consumer Welfare Fund. 4. Proper and separate accounts in relation
to the Consumer Welfare Fund Constitution of the
Committee. 5. (1) The Committee constituted by the
Central Government under sub-rule (2) The Committee shall
consist of the following Members, namely:— 2a[(a) The Secretary, Ministry of Civil Supplies,
Consumer Affairs and Public Distribution, who shall be the Chairman of the
Committee;] (b) Secretary,
Department of Expenditure in the Ministry of Finance who shall be the
Vice-Chairman of the Committee; (c) Chairman,
Central Board of Excise and Customs in the Department of Revenue of the
Ministry of Finance ; |
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2. Inserted by the Consumer Welfare Fund (Amendment) Rules, 1994,
w.e.f 27-1-1994. 2a. Substituted
by the Consumer Welfare Fund (Amendment) Rules, 1995, w.e.f. 16-1-1995. |
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(d) Member (Central Excise) of the Central Board of Excise and
Customs in the Department of Revenue of the Ministry of Finance ; 3[(e) Secretary/Additional Secretary of
Department of Rural Development; (f) Director
General/Additional Director General, Bureau of Indian Standards;] 3a[(g) The Joint Secretary of Consumer Welfare Fund
in the Ministry of Civil Supplies, Consumer Affairs and Public Distribution,
who shall be the member Secretary of the Committee:] 4[Provided that
the Chairman or Vice-Chairman, as the case may be, may invite representatives
of the State Governments concerned and a nominee of the Consumer
co-ordination Council to the meetings as and when necessary.] (3) The Committee shall
be a Standing Committee. 5[Procedure for
conduct of business.] 6. (1) The Committee shall meet as and when
necessary, but not more than (2) The Committee shall
meet at such time and place as the Chairman, or in his absence the
Vice-Chairman of the Committee may deem fit. (3) The meeting of the
Committee shall be presided over by the Chairman, and in the absence of the
Chairman, the Vice-Chairman shall preside over the meetings of the Committee. (4) Each meeting of the
Committee shall be called, by giving notice in writing to every member of not
less than ten days from the date of issue of such notice. (5) Every notice of the
meeting of the Committee shall specify the place and the day and hour of the
meeting and shall contain statement of business to be transacted thereat. (6) No proceeding of the
Committee shall be valid, unless it is presided over by the Chairman or
Vice-Chairman and a minimum of 5a[three] other members are
present. Powers and Functions of
the Committee. 7. (1) The Committee
shall have power :— (a) to
require any applicant to produce before it, or before a duly authorised
Officer of the Central Government, or as the case may be, the State
Government, such books, accounts, documents, instruments, or commodities in
custody and control of the applicant, as may be necessary for proper
evaluation of the application; |
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3. Clauses (e)
and (f) substituted by the Consumer Welfare Fund (Second Amendment)
Rules, 1994, w.e.f. 16-6-1994. 3a. Substituted
by the Consumer Welfare Fund (Amendment) Rules, 1995, w.e.f. 16-1-1995. 4. Inserted
by the Consumer Welfare Fund (Amendment) Rules, 1994, w.e.f. 27-1-1994. 5. Substituted
for the heading “Procedure of the Committee”, ibid. 5a. Substituted
for “four” by the Consumer Welfare Fund (Amendment) Rules, 1995, w.e.f.
16-1-1995. |
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(b) to require any applicant to allow entry and inspection of any
premises, from which activities claimed to be for the welfare of consumers,
are stated to be carried on, to a duly authorised officer of Central
Government or, as the case may be, State Government; (c) to
get the accounts of the applicants audited, for ensuring proper utilization
of the grant; (d) to
require any applicant, in case of any default, or suppression of material
information on his part, to refund in lump sum, the sanctioned grant to the
Committee, and to be subject to prosecution under the Act; (e) to
recover any sum due from any applicant in accordance with the provisions of
the Act. (f) to
require any applicant, or class of applicants to submit a periodical report,
indicating proper utilization of the grant; (g) to
reject an application placed before it on the basis of involvement of factual
inconsistency, or inaccuracy in the material particulars; (h) to
recommend minimum financial assistance, by way of grant to an applicant, having
regard to his financial status, and importance and utility of nature of
activity under pursuit, after ensuring that the financial assistance provided
shall not be misutilised; (i) to
require Central Consumer Protection Council or the Bureau, to formulate broad
guidelines for considering the projects/proposals for the purpose of
incurring expenditure from the Consumer Welfare Fund; (j) to
identify beneficial and safe sectors, where investments out of Consumer
Welfare Fund may be made and make recommendations, accordingly. (2) The
Committee shall not consider an application, unless it has been inquired
into, in material details and recommended for consideration accordingly, by
the Member-Secretary. Specification
of Purposes for Utilization of credits available in Consumer Welfare Fund. 8. The Committee shall make recommendations :— (a) for
making available grants to any applicant; (b) for
making available grants recommended by the Bureau for activities relating to
standard marks, which may be considered essential by the Central Government,
for the welfare of the consumers; (c) for
investment of the money available in the Consumer Welfare Fund; (d) for
making available grants 6[on a selective basis], for reimbursing
legal expenses incurred by a complainant, or class of complaints in a
consumer dispute, after its final adjudication; |
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6. Inserted by the Consumer Welfare Fund (Amendment) Rules, 1994,
w.e.f. 27-1-1994. |
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(e) for making available grants for any other purpose recommended by
the Central Consumer Protection Council 7[as may be considered
appropriate by the Committee.] 8Form AI (See Rule 8 of
the Consumer Welfare Fund Rules, 1992) Important : Please fill up this
form, furnishing correct details sought for, based on verifiable true state
of affairs without causing suppression of any material information which, if
resorted to, shall entail prosecution under the Act. 1. Name
and full postal address of the applicant : 2. Status
of the applicant under clause (b) of rule 2 : 3. Date
of establishment : 4. Whether
registered under the Societies Registra-tion
Act, 1860 (21 of
1860) or any other relevant Act : 5. If
yes, number and year of registration (Attested copy of registration certificate to
be enclosed) : 6. Whether
the organisation is of national/State level : 7. Number
of Managing Committee members tion of the office bearers : 8. Brief details
of the organization, objectives and activities during the last three
years : 9. Purpose
for which the amount is required (Please state the
details of the
project and its proposed implementation) : 10. Amount
of grant required, itemwise details under non-recurring/recurring to be
enclosed : 11. Time
schedule of the activities arranged : 12. The
total amount incurred/invested by the appli- cant, or likely to be incurred by
the applicant : 13. Sources
of funding of balance amount whether the organisation is getting financial
assistance from any other official/non-official source. If yes, give details : 14. Details
of prosecution, if any, in a court of law launched against
the applicant, during
the last five years : |
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7. Substituted for “as may be specified by Central Government to
be necessary and expedient for the welfare of consumers” by the Consumer
Welfare Fund (Amendment) Rules, 1994, w.e.f. 27-1-1994. 8. Substituted,
ibid. |
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15. Copies of the following documents to be
attached : (i) Constitution of the organisation and
Articles of Association. (ii) Last Annual Report and audited statement of
accounts. Declaration (To be signed by the
applicant or its authorised agent) The particulars heretofore
given are true and correct. Nothing material has been suppressed. It is
certified that I/we have read the guidelines, terms and conditions governing
the scheme and undertake to abide by them on behalf of our
organisation/institution. The financial assistance, if provided, shall be
put to the declared use for promotion and protection of rights of consumers,
or for standard marks (strike out whichever is inapplicable). Dated
........................... Station
......................... Applicant To Member-Secretary, Committee (Consumer
Welfare Fund), Krishi Bhawan, Recommendation
of member-secretary Factual details
furnished in the application have been verified in consultation with
Ministry/Department of..................agency, who is/are administratively
concerned in the matter, and found to be correct/incorrect. The claims of the
applicant are recommended for consideration by the Committee (Please give
reasons in support of your recommendation). Member-Secretary Committee (Consumer
Welfare Fund) Recommendation of the committee Recommended for grant of
Rs................... (Rupees in..................words) from the Consumer
Welfare Fund, as discussed in the meeting held on..................(date). Chairman Committee. |
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TO BE PUBLISHED IN THE
GAZETTE OF
Government of
National Consumer Disputes Redressal Commission
NOTIFICATION
G.S.R.
342(E). - In exercise of the powers conferred by section 30A of the Consumer
Protection Act, 1986 (68 of 1986), the National Consumer Disputes Redressal
Commission with the previous approval of the Central Government, hereby makes
the following regulations, namely:-
1. Short title and commencement.-(1 ) These regulations may be called the Consumer
Protection Regulations, 2005.
(2) They shall come into force on the date of their
publication in the Official Gazette.
2. Definitions.- In these regulations unless the context otherwise
requires,-
(a) "Act" means the Consumer Protection Act, 1986
(68 of 1986);
(b) "Consumer Forum" means a District Forum. a
Consumer Disputes Redressal Commission
established in a State under clause (b) of section 9 (hereafter called the
State Commission) or the National Consumer Disputes Redressal Commission;
(c) "Registrar" means the head of the ministerial
establishment of the Consumer Forum and exercising such powers and functions as
are conferred upon him by the President of the Consumer Forum:
(d) "rules" means the rules made under the Act;
(e) "section" means a section of the Act:
(f) words and expressions used in these regulations and not
defined herein but defined either in the
Act or in the rules shall have the same meaning respectively assigned to them
either in the Act or in the rules, as the case may be.
3. Arrangements in Consumer Forum,--(1 ) A Consumer Forum, being not a regular court,
shall have the arrangements as to depict it distinct from a court.
(2) In the hall in which the Consumer
Forum shall hear the parties, the dais may not be kept more than 30c.m. in
height than the place earmarked for the parties to occupy.
(3) At the dais of the hall, the
President and the members of the
Consumer Forum shall use the same type of chairs at the same level and
these chairs need not have high backs.
4.
Dress code.-(1 ) The President and
members of every Consumer Forum while presiding over the Benches,-
(a) shall wear simple and sober dress;
(b) shall not wear-
(i) flashy dress or dress display any affluence;
(ii) Jeans or T-shirts.
(iii) as if they are holding Courts as Judges of a High
Court or a District Court.
(2) The advocates shall be allowed to
appear in the usual dress as prescribed by the High
Court
but without the gown.
5. Hearing hours.-Subject to the provisions of the rules, the normal
working hours of the Consumer Forum for
hearing matters shall be from 10.30 am to 1.00 p.m and 2.00 p.m to 4.00 p.m on
all working days of the Central Government in the case of the National
Commission and on all working days of the State Government in the case of the
State Commission and the District Forum
6. Cause List.-(1 ) Cause list of the Consumer forum for the following entire week
shall be made ready before the close of the working hours of the preceding week
and displayed on the notice board. The cause list in respect of a Consumer
Forum having a website shall also be hosted on the website.
(2) Cause list shall be split into three
different parts, namely:-
(i) Admission and after notice matters;
(ii) Matters where evidence is to be recorded;
(iii) Final disposal matters.
(3)
Every cause list shall contain the following particulars, namely:-
(1) Sl. No.
(2) No. of the matter (3) Names
of the parties (4) Name of the party
or
Counsel or agent
appearing
(4)
If a date of hearing is given in the presence of parties or their agents, it
shall not be a ground for non-appearance for the reason that the cause list for
the concerned date does not show the matter or contains incorrect entry or
there is omission of the particulars of the matter.
7. Institution of complaints, appeals and
revision petitions.-(1 ) Where a
complaint is filed in District Forum or State Commission it shall be filed in
three sets and where it is filed in the National Commission it shall be filed
in four sets with additional sets equal
to the number of opposite party(ies)/respondent(s).
(2) Every complaint shall clearly contain
particulars of dispute and the relief claimed and shall also be accompanied by
copies of such documents as are necessary to prove the claim made in the
complaint.
8. Nomenclature to be given to the
complaints, appeals and revisions petitions. -( 1 ) A complaint shall hereinafter be referred to as Consumer
Complaint (C.C.) instead of O.P., e.g., C.C. No.2 of 2005.
(2) An appeal shall be referred to as
F.A., Revision Petition as R.P.,
Execution .Application as E.A, Transfer Application T.A. and Review as RA containing the number and the year of
filing.
9.
Scrutiny of complaint, appeal, petition and revision petition.-(1 ) Every
complaint, appeal, or revision petition shall after it is filed be numbered by
the Registrar.
(2) If there is any defect in the filing of
the complaint, appeal or revision petition, the particulars of such defects
shall be recorded and the party or his agents shall be informed of the defects
asking them for removing the defects within 15 days.
(3) In case the party disputes in the
correctness of the defects pointed out the matter shall be placed before the
Consumer Forum for appropriate orders.
(4) After the expiry of the time given, the
matter shall, irrespective of the fact as to whether the defects have been
removed or not, be placed before the Consumer Forum for appropriate orders.
(5) If the objections raised by the
Registrar are substantial and are not removed within the time allowed for the
purpose, those days shall not be excluded for counting the period of
limitation.
(6) As required by the second proviso to
sub-section (3) of section 12, the admissibility of the complaint shall
ordinarily be decided within twenty-one days from the date on which the
complaint was received.
(7) In case any defect is pointed out by
the Registrar, twenty-one days from the date on which such defect was removed
shall be reckoned for the purpose of sub-regulation (5).
(8) All pending complaints, appeals and
revision petitions which have not come up for admission till the date of
commencement of these regulations and are pending for admission for more than
21 days shall be listed immediately by the Consumer Forum for admission and not
later than 21 days from the date of commencement of these regulations.
10. Issue of notice.-(1 ) Whenever
the Consumer Forum directs the issuance of a notice in respect of a complaint,
appeal or revision petition, as the case may be, to the opposite
party(ies)/respondent(s), ordinarily such notice shall be issued for a period
of 30 days and depending upon the circumstances of each case even for less than
30 days.
(2) When there is a question of raising
presumption of service, 30 days notice shall be required.
(3) Whenever notices are sought to be
effected by a courier service, it shall be ascertained that the courier is of
repute.
(4) While appointing the courier for the
purpose of effecting service, security deposit may also be taken.
(5) Along with the notice, copies of the
complaint, memorandum of grounds of appeal, petitions as the case may be and
other documents filed shall be served upon the opposite party(ies )/respondent( s).
(6) After the opposite party or respondent
has put in appearance, no application or document shall be received by the
Registrar unless it bears an endorsement that a copy thereof has been served
upon the other side.
11. Adjournment.-(1 ) Every
proceeding before a Consumer Forum shall be conducted as expeditiously as
possible and as per the requirements of the Act.
(2) The Consumer Forum shall record the
reasons for any adjournment made by it.
(3) The cost of adjournment, if asked by
the opposite party or parties, shall not be less than five hundred rupees per
adjournment and could be more depending upon the value and nature of the
complaint as may be decided by the Consumer Forum.
(4).
The complainant, appellant or petitioner, as the case may be, may also be
burdened with cost unless sufficient cause is shown for seeking adjournment:
Provided that in the circumstances of a
particular case, the amount of cost imposed may be less than five hundred
rupees but in no case less than one hundred rupees.
(5) The cost imposed may be given to the
other party or parties to defray his or their expenses or be deposited in the
Consumer Legal Aid Account to be maintained by the respective Consumer Forum,
as the Consumer Forum may order.
(6) If any adjournment is granted without
awarding cost, the order sheet shall mention the reasons thereof.
(7) All orders adjourning the matter shall
be signed by the President and members constituting the Bench and not by the
Court Master or Bench Clerk.
(8) Non-availability of a lawyer who is
representing the party shall not be a ground for seeking adjournment of the
matter unless absence is beyond the control of the lawyer such as his sudden
illness or bereavement in the family.
12. Hearing by Benches.-Where a
Bench, constituted by the President of the State Commission or the National
Commission as provided under section 16 or section 20, as the case may be, does
not have a member with judicial background and any complex question of law
arises and there is no precedent to decide the law point, the Bench so
constituted may refer the matter to the President of the State Commission or
the National Commission as the case may be to constitute another Bench of which
the President shall be a member.
13. Arguments.-(1 ) Arguments should be as
brief as possible and to the point at issue.
(2) Where a party is represented by a
counsel, it shall be mandatory to file a brief of written arguments two days before the matter
is fixed for arguments.
(3) In case of default to file briefs, the
cost shall be imposed at the same rates as laid down for grant of adjournments.
14. Limitation.-(1 ) Subject to the
provisions of sections 15, 19 and 24A, the period of limitation in the
following matters shall be as follows:-
(i)
Revision Petition
shall be filed within 90 days from the date of the order or the date of receipt
of the order as the case may be;
(ii)
Application for
setting aside the ex-parte order under section 22A or dismissal of the
complaint in default shall be maintainable if filed within thirty days from the
date of the order or date of receipt of the order, as the case may be;
(iii)
An application for
review under sub-section (2) of section 22 shall be filed to the National
Commission within 30 days from the date of the order or receipt of the order,
as the case may be;
(iv)
The period of
limitation for filing any application for which no period of limitation has
been specified in the Act, the rules of these regulations shall be thirty days
from the date of the cause of action or the date of knowledge.
(2) Subject to the provisions of the Act,
the Consumer Forum may condone the delay
in filing an application or a petition referred to in sub-regulation (1) if
valid and sufficient reasons to its satisfaction are given.
15. Review.-(1 ) It shall set out clearly the grounds for review.
(2) Unless otherwise ordered by the National Commission, an application for review
shall be disposed of by circulation without oral arguments, as far as
practicable between the same members who had delivered the order sought to be
reviewed.
16. Appearance of Voluntary Consumer
Organisations.-(1) Recognised Consumer Organisations have a right of
audience before the Consumer Forum
(2) An authorisation of a Voluntary
Consumer Organisation may be by way of
special power of attorney executed on a non-judicial paper or even on plain
paper duly attested by a Gazetted Officer or a Notary Public.
(3) The Power of Attorney holder shall be
entitled to engage a counsel, if authorised to do so.
(4) A Voluntary Consumer Organisation can
engage a counsel or an advocate of its choice or it can itself represent
through one of its office bearers as per the rules governing it.
(5)
In case of a complaint where the Voluntary Consumer Organisation is a
complainant along with the consumer
himself and the dispute affects the complainant individually, he can withdraw the
complaint:
Provided that if the issue involves unfair
trade practice or restrictive trade practice a Voluntary Consumer Organisation
may continue to proceed with the complaint even if the complainant wishes to
withdraw the same.
(6) A Consumer Forum has to guard itself
from touts and busybodies in the garb of power of attorney holders or
authorised agents in the proceedings before it.
(7) While a Consumer Forum may permit an
authorised agent to appear before it, but authorised agent shall not be one who
has used this as a profession:
Provided
that this sub-regulation shall not apply in case of advocates.
(8) An authorised agent may be debarred
from appearing before a Consumer Forum if he is found guilty of misconduct or
any other malpractice at any time.
17. Ex-parte interim order.-Any
ex-parte interim order issued by the Consumer Forum shall stand vacated
after 45 days if in the meanwhile the objections to the interim order are not
heard and disposed of.
18. Final order.-(1) An order on the
top right hand comer shall show as to when the complaint was filed and the date
of the order.
(2) The cause title of the order shall
contain the names of all the parties with their addresses.
(3) In the body of the order it is desirable
that after mentioning the complainant or the opposite party, their names as
shown in the title be mentioned and parties thereafter may not be mentioned as
complainant or opposite party No.1 or
opposite party No.2, etc.
(4) The cause title shall also clearly show
if the appellant or respondent was the complainant or opposite party.
(5) The order of a Consumer Forum disposing
of a matter shall be as short and precise as practicable and unnecessary long
quotations from the judgments of the higher courts or otherwise shall be
avoided.
(6) When a copy of the order is sent to a
party, the mode by which it is sent and the date on which it is sent shall be
stamped on the last page of the order.
(7) The Consumer Forum shall pass final
order invariably within fifteen days of the conclusion of the arguments.
19. Return on institution and disposal
of cases.-( 1) A Consumer Forum is expected to dispose of at least 75 to
100 matters every month.
(2) A periodic monthly return of institution
and disposal of cases shall be sent by the District Forums to the State
Commission.
(3) The State Commission shall submit a
periodic monthly return of institution and disposal of cases to the National
Commission.
(4) Notwithstanding anything contained in
this regulation, the President of the National Commission may, at any time,
call for any return or information relating to its functioning from a State
Commission or District Forums.
20. Preservation of records. -( 1 )
In the case of complaint, the record containing main files with original order
sheet shall be preserved for a period five years.
(2) In the case of records of first appeal
and revision petitions, it shall be preserved for three years from the date of
disposal of the appeal or revision as the case may be.
(3) Immediately after the consumer
complaint, first appeal or revision petition, as the case may be, is disposed
of, extra sets shall be given to the parties who may use the same for filing of
appeal or revision petition and in that case the necessity to summon the record
from the forums below can be dispensed with.
(4) The Registrar shall inform the parties
while forwarding the certified copy of the final order, where they do not
appear in person at the time of finally disposing of the matter to arrange to
collect the extra sets.
(5) A period of at least one month shall be
given for the purpose of collection of records by the party and in case of
default the ex1ra sets shall be weeded out.
21. Certified copy.-(l) A copy of
the order is to be given to the parties free of cost as required under the Act
and the rules made thereunder.
(2) In case a party requires an extra copy,
it shall be issued to him duly certified by the Registry on a payment of
Rs.20/- irrespective of number of pages.
(3) A certified copy of an order shall
clearly specify the date when free copy was issued, date of application, date
when the copy was made ready and the date when it was so delivered to him.
(4) A fee of Rs.20/- shall be paid for
obtaining another certified copy.
(5) Any party desiring to get a certified
copy of any document on the file of the Consumer Forum, may get the same on
payment of certification fee of twenty rupees per copy. Provided that if any
such document of which certified copy is sought, is over and above 5 pages, an
extra amount of one rupee per page shall be charged over and above the fee of
twenty rupees.
(6) Certified copy of any miscellaneous
order passed by the Consumer Forum shall be
supplied on payment of Rs.5 per
copy.
22. Inspection of records.-Parties or their agents can
inspect the records of any matter by filing an application on payment often
rupees as fee.
23. Filing of criminal complaint.-Wherever
a complaint is required to be filed by the Consumer Forum under sub-section (5)
of section 13, the Consumer Forum may authorise its Registrar to file the
complaint.
24. Practice Directions.- The
National Commission shall be entitled to issue practice directions from time to
time as may be necessary for the proper conduct of the cases before Consumer
Forum including prescribing forms for complaints, notices, returns, certificate
to be issued to the collector and the like.
25. Parcsha Yad-dast.- Where a party
appears in person and is illiterate, the Court Master or Bench Clerk shall give
to that party the next date of hearing in writing.
26. Miscellaneous.-(1 ) In all
proceedings before the Consumer Forum, endeavour shall be made by the parties
and their counsel to avoid the use of provisions of Code of Civil Procedure,
1908 (5 of 1908):
Provided that the provisions of the Code of
Civil Procedure, 1908 may be applied which have been referred to in the Act or
in the rules made thereunder.
(2) Every State Commission and every
District Forum shall take steps for its
computerisation and networking.
(3) The Consumer Forum shall give proper
respect and courtesy to the parties who appear in person and shall provide separate
accommodation in the Hall for the convenience of the parties.
(4) The Consumer Forum shall not insist
upon the parties to engage advocates.
(5) The Fees collected for inspection of
the documents and supply of certified copies shall be deposited in the account
maintained for the purpose of depositing fee for filing a complaint as
prescribed by the Central Government by rules.
(6) The cases filed by or against the
senior citizens, physically challenged, widows and persons suffering from
serious ailments shall be listed and disposed of on a priority basis.
[ F.No.A-105/NCDRC/2005 ]
( B.V. SHARMA )
Joint Registrar
|
1.29 Bureau
of indian standards GSR 619(E) dated 9-10-1991 In exercise of the
powers conferred by section 37 of the Bureau of Indian Standards Act, 1986
(63 of 1986), the Central Government hereby makes the following rules,
namely:— Short title and
commencement. 1. (1) These rules may be called the Bureau
of Indian Standards (Recognition (2) They shall come into
force on the date of their publication in the Official Gazette. Definitions. 2. In these rules, unless the context otherwise
requires — (a) “Act”
means the Bureau of Indian Standards Act, 1986 ( 63 of 1986); (b) “Form”
means a Form appended to the Schedule to these rules; (c) “Ministry”
means the Ministry of Civil Supplies, Consumer Affairs and Public
Distribution; and (d) “Principal
Officer” in relation to a consumer association means any individual who is
specifically authorised in writing or by means of a resolution adopted by
such consumers’ association in that behalf. Application for
recognition of consumers’ association. 3. (1) Every consumers’ association which is
desirous of being recognised as (a) shall
have not less than fifty consumers as its members; and (b) shall
make an application for such recognition in triplicate to the Bureau of
Indian Standards in Form I. (2) Every application
made under sub-rule (1) shall be accompanied by a bank draft of rupees one
thousand. (3) On receipt of an
application made under sub-rule (1), the Bureau of Indian Standards shall note
thereon the date of its receipt and shall forthwith communicate such date to
the applicant. |
||
|
1. Published in the Gazette of India (Extra), Pt. II section
3(i), No. 363, dated 9-10-1991, |
||
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|
1.246 |
|
|
1.247 |
Bureau of Indian standards rules, 1991 |
Form I
|
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(4) The
Bureau of Indian Standards may, before issue of a certificate of
recognition, require the applicant to furnish, within such period as may be
specified by it, such additional information as may be considered necessary
within a period of 30 days of a receipt of that letter by the applicant. (5) On receipt of an
application and such other additional information as may be sought under
sub-rule (4), the Bureau of Indian Standards shall process the application
and forward documents to the Ministry of Civil Supplies. Government of (6) On receipt of the
recommendations of the Bureau under sub-rule (5), the Ministry shall consider
those recommendations and after satisfying itself that the applicants’
association is fit to be recognised, may recognise the association in this
behalf. (7) The certificate of
recognition to be issued by the Ministry under sub-rule (6) shall be in Form
II. (8) Where a certificate
of recognition issued under these rules is lost, destroyed or mutilated, a
duplicate may be issued on an application made in this behalf and on payment
of a fee of rupees one hundred. Payment of fees. 4. The fees payable under those rules shall
be paid in the form of a bank draft Refusal to grant
certificate of recognition to consumers’ association. 5. Where a certificate of recognition of a
consumers’ association has been Copies of certificate of
recognition to be furnished to certain authorities. 6. Every consumers’ association which has
been recognised as a ‘registered Verification of
application. 7. Every application made under these rules
shall be duly verified by the Schedule Form
I [See sub-rule (1)
of rule 3] Form of application to
be submitted to the Bureau of Indian Standards for recognition of consumers’
association. (to be submitted in
triplicate) (1) Name of the
Consumers’ Association: (2) Address: (a) Registered
Office: (b) For
correspondence: (c) Branches: |
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Form I |
Bureau of Indian standards rules, 1991 |
1.248 |
|
(3) If registered under
any other law the Act under which registered and date of registration
(certified copy of the certificate of registration to be enclosed): (4) Total number of members of the association
(as on date of application): (5) Objects of the association (certified copy
of Memorandum of Association to be enclosed along with copy of the rules and
regulations of the Association): (6) Names, addresses and occupations of persons
on the Board of Directors, Governing body, Council/Committee (by whatever
name called), to whom the management of the affairs of the association is
entrusted: (7) Number of employees: (a) Whole-time: (b) Part-time: (8) Year-wise details of the work done by the
association during the last three years in the filed of protection of
consumers’ interest: (9) Copies of published annual report and
audited accounts of the association of the last three years: (10) Details of Laboratory organisation, if any,
owned, run or operated by the association for purposes of protection of
consumer’s interest: Place :............ Signature
:.................................... Date :............. Name
& designation :.............. Verification I, ........ do hereby
solemnly state that what is stated in terms 1 to 11 above is true to the best
of my knowledge and behalf. Place :............ Signature
:.................................... Date :............. Name
& designation :.............. |
||
|
1.249 |
Bureau of Indian standards rules, 1991 |
Form II
|
|
Form II [See sub-rule (7)
of rule 3] Certificate
of recognition (Government of Ministry of Civil
Supplies, consumer affairs and Public distribution Certified that the
consumers’ Association whose particulars are given below has this day been
recognised as a “registered Consumers’ Association” in terms of section 34
of the Bureau of Indian Standards Act, 1986 (63 of 1986). Particulars (1) Name
of the Consumers’ Association: (2) Address: (3) Name
of persons on the governing board/body/council to whom management of the
Association is entrusted: (4) Number
of members: (5) Registration
Number: Signature
:......................................... Date
:................................................... File
No :.............................................. Seal
of the Ministry of Civil Supplies, Consumer Affairs and
Public Distribution |
||
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1.37 Supreme
Court Rules Relevant to Consumer Protection Act GSR
409, dated 3-7-1990 In exercise of the
powers conferred by Article 145 of the Constitution and all other powers
enabling it in this behalf, the Supreme Court hereby makes, with the approval
of the President, the following rules further to amend the Supreme Court
Rules, 1966, namely:— 1. (1) These rules may be called the Supreme
Court (First Amendment) Rules, (2) They shall come into
force on the date of their publication in the Official Gazette.* In the Supreme Court
Rules, 1966. 2. (a) Order XX(F) with the title
“Appeals under section 23 of the Consumer XX(F).—The petition of
appeal from an order made by the National Disputes Redressal Commission
(hereinafter referred to as “The National Commission”) under sub-clause (i)
of clause (a) of section 21 of the Consumer Protection Act, 1986 (69
of 1986) shall, subject to the provisions of sections 4, 5 and 12 of the
Limitation Act, 1963 (36 of 1963) be presented by an aggrieved person within
thirty days from the date of the order sought to be appealed against: Provided that computing the said
period, the time requisite for obtaining a copy of such order shall be
excluded. 2A. The petition of appeal shall recite
succinctly and clearly all the relevant 3. The petition of appeal shall be
accompanied by:— (i) an
authenticated copy of the order appealed from; and (ii) at
least seven spare sets of the petition and the papers filed with it. |
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*Supreme Court of |
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1.305 |
|
R. 6 |
sc Rules relevant to Consumer Protection Act |
1.306 |
|
4. After the appeal is registered, it shall be put
up for hearing ex parte before 5. A fixed court fee of Rs. 250 shall be
payable on the petition of appeal under 6. Save as otherwise provided by the rules
contained in this order, the The table of contents
(page vi) of the Supreme Court Rules, 1966 and Third Schedule—Part II with
regard to fees will be amended as under:— Order Table of Contents Rules Page XX-F Appeals under section 23 of Consumer 1-6 63 Protection
Act, 1986 (68 of 1986) |
||
Recommendations
of the Committee Constituted under the Chairmanship of Dr. P D Shenoy, Member,
NCDRC, to consider the following issues:
(i)
To examine the administrative and financial
powers of the Presidents of the State Commission and make recommendations to
ensure the effective functioning of the State and District Fora.
(ii)
To study the imposition of cost and levying
of fees by the State and District Fora and to suggest guidelines for their
proper and effective utilization.
(iii)
To examine the necessity of conducting
induction training to the new Members of the State and District Fora and make
suitable recommendations.
(iv)
To suggest suitable guidelines for grant of
pay and perquisites to the Members of the State and District Fora.
The
following Members were present:
1. Hon’ble
Mr Justice N K Jain, President,
2.
Hon’ble Justice Mr B B Vagyani, President,
3.
Hon’ble Justice Mr R C Kathuria, President,
The
recommendations of the Committee are as follows:
1.
To examine the administrative and
financial powers of the Presidents of the State Commission and make
recommendations to ensure the effective functioning of the State and District
Fora.
In
order to translate the mandate, of the Hon’ble Supreme Court in the case of
State of Uttar Pradesh vs Jeet Singh Bisht and Others, (Special Leave Petition
No. 6928 of 1999) as per order dated 10th July, 2002 as well as the
State of Rajasthan and Others vs Anand Parkash Solanki, (Civil Appeal No. 6733
of 2003) as per order dated 25th August, 2003. (Annexure ‘A’ &
B) into a reality and to have effective control over the functioning of the
State Commissions and the District Fora in terms of the Provisions of Section
24 B of the Consumer Protection Act, 1986;
It
is recommended that various State Governments may incorporate the following
Rules in their existing Consumer Protection Rules;-
(a) The
President of the State Commission shall be Head of the Department and
Controlling Authority for the purposes of Book/ Code of Financial Powers.
(b) Appointment
of Officers and staff (except the President and Members) of the District Fora
and State Commission shall be made by the President of the State Commission;
Provided
that the cadre, number, salaries and allowances of such officers and staff
shall be fixed by the State Government by Rules to be made in consultation with
the President of the State Commission.
(c) Salaries
of such officers and staff shall be defrayed out of the consolidated fund of
the State.
2. To
study the imposition of cost and levying of fees by the State and District Fora
and to suggest guidelines for their proper and effective utilization.
It is suggested that Regulation 11 (5) which provides
for imposition of minimum cost need to be amended and it should be left to the
discretion of the Commission or the District Forum concerned to decide about
the quantum of cost depending on the facts and circumstances of each case.
As regards utilization of costs, the National
Commission may frame appropriate Regulations provided for the purpose and
manner of utilizing this amount. For this purpose, guidelines contained in the
Legal Services Act, may be followed.
Fees for filing complaints of the valuation upto
Rs.10,000/- should be NIL and accordingly Rule 9 A of the Consumer Protection
Rules 1987 (Central Rules) may be amended.
With regard to payment of fees on complaints,
existing Table of Rule 9 A of Consumer Protection Rules, 1987 may be
substituted by the following Table:
|
S No. |
Total value of goods
or service and the compensation claimed |
Amount of fee payable |
|
(1) |
(2) |
(3) |
|
|
DISTRICT FORUM |
|
|
1. |
Upto to one lakh rupees –
For complainants who are under the Below Proverty Line holding Antyodaya Anna
Yojana cards |
NIL |
|
1 A. |
Upto Rs.10,000/- |
NIL |
|
2. |
Upto one lakh Rupees –
For complainants other than Antyodaya Anna Yojana card holders |
Rs.100/- |
|
3. |
Above one lakh and upto
five lakh rupees |
Rs.500/- |
|
4. |
Above five lakh and upto
ten lakh rupees |
Rs.1000/- |
|
5. |
Above ten lakh and upto
twenty lakh rupees |
Rs.2000/- |
|
|
STATE COMMISSION |
|
|
6. |
Above twenty lakh and
upto fifty lakh rupees |
Rs.5000/- |
|
7. |
Above fifty lakh and upto
one crore rupees |
Rs.10,000/- |
|
|
NATIONAL COMMISSION |
|
|
8. |
Above one crore rupees |
Rs.25,000/- |
|
9. |
Above five crore rupees |
Rs.50,000.- |
|
10. |
Above ten crore rupees |
Rs.1,00,000/- |
3. To examine
the necessity of conducting induction training to the new Members of the State
and District Fora and make suitable recommendations.
At
present help is being taken of the Indian Institute of Public Administration
(IIPA) for imparting training to the Members of the State Commission as well as
Presidents and Members of the District Fora which is being monitored at the
level of the National Commission. The programme and orientation training needs
to be de-centralized at the Headquarter level of the respective State
Commissions by introducing 15 days training programme to the newly inducted
Members of the State and District Fora including the Presidents of the District
Fora so as to equip them with regard to the procedure to be followed while
conducting the complaint cases so as to help them to avoid illegalities being
committed for the smooth functioning of the District Fora. The training
programme shall take care of following aspects:
1.
Consumer
Protection Act, 1986 and amendments in the Consumer Protection Act, their
judicial implications on different points.
2.
A
correct approach of the Judgment writing.
3.
General
principles of Consumer Protection Act to be followed by the Consumer Fora with
reference to the settled law by the Hon’ble National Commission on the
procedure of dealing the complaints by District Consumer Fora.
4.
Settled
law in deciding cases related to HUDA etc., Electricity, Insurance Assurance,
Banking and Telecommunications.
5.
Procedure
of Institution, processing granting of adjournments recording of zimini orders,
granting of interim injunctions, maintenance of Institution and disposal
register, maintenance of statistical information as per Consumer Protection Act
and instructions issued by the Hon’ble National Commission from time to time.
6.
A
peep into Civil Service Rules so far as working of the District Consumer Fora
is concerned demystified.
7.
Canons
of filing of properties, purchase procedure, store procedure, writing of loss
etc., demystified.
8.
Initiating
of disciplinary action against the staff under various Rules/ Government
instructions issued by the State Government and writing of A C R s.
9.
Any
other topic suitable for trainees to be selected by the President of the State
Commission.
The
State Government shall provide suitable Budget for this purpose and keep the
amount at the disposal of the President of the State Commission.
4. To suggest suitable guidelines for
grant of pay and perquisites to the Members of the State and District Fora.
Salary
and other allowances of the President of the State Commission and District
Forum (Minus pension drawn, if any)
The service conditions of the President of the State Commission shall be
the same as that of a sitting Judge of the High Court.
Member
of the State Commission appointed on a whole-time basis shall be entitled to
pay and allowance as are available to a sitting District Judge.
Provided that if a Member of the
State Commission appointed on a part-time basis he/ she shall be paid
Honorarium of not less than Rs.1000/- and conveyance allowance of not
less than Rs.300/- per day’s sitting.
The President of the District
Forum shall be entitled to pay and allowances payable to a sitting District
Judge (Minus pension drawn, if any)
Members of the District Forum
appointed on whole time basis shall be entitled to not less than
Rs.15,000/- per month by way of Honorarium plus not less than Rs.3000/-
as conveyance allowance per month.
Provided a Member of the
District Forum appointed on a part-time basis, he/ she shall be entitled to
Honorarium of not less than Rs.600/- and conveyance allowance of not
less than Rs.150/- per day’s sitting.
Sd/-
[ P D Shenoy ]
Member, NCDRC
07.05.2008
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