Professional Documents
Culture Documents
16 - Chapter-Viii Conclusion and Suggestions
16 - Chapter-Viii Conclusion and Suggestions
16 - Chapter-Viii Conclusion and Suggestions
8.1 Conclusion
provide maximum possible satisfaction to consumers. But in reality, consumers are often
exploited. A few firms enjoy monopoly powers in the market place. A large majority of
Indian consumers are ignorant and illiterate and do not know their rights. They are poor
and there is lack of unity among them. Due to all these reasons, consumers are often
deprived of their rights. They are often exploited through misleading advertisements,
poor quality goods and services, fractional weights and measures, overcharging, etc.
However, the recent economic development has given the consumers tremendous
increase in purchasing power while at the same time prompting changes in the
the services like medical, legal, architect etc. are now being marketed in such a manner
that it is more difficult for consumer to judge their quality adequately. This problem bears
protection is not simply a middle class issue but a matter of vital importance for the less
Consumer protection entails protecting the rights and interests of the consumer in
matters of availability, quality, quantity and price of goods and services. It in fact
promotes the concept of value for money and enhances the trust between the customer
and the producer or providers of services. The part played by the professional’s vis-à-vis
the consumer is hardly flattering. In terms of consumer laws, it has not shown the
slightest indication to come out of the shroud to display the desire to live up to the
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expectations of society and to reach the height of Poundian Model. In so far as the barbed
remarks by Bernard Shaw, that “all professions are conspiracies against laity”, are laden
with many a home truth, “all professional monopoly deserves to be demonetized. For, the
quid pro quo for professional monopoly need to be a pro bono publico commitment.
In India, the consumer movement found a clear conception during the freedom
movement of the 40’s when Gandhi established the lead. Father of the nation, Mahatma
Gandhi, has been considered as the greatest consumer advocate the world had ever seen.
His various views the consumer interests were even applauded by Ralph Nader, who
himself has been considered the greatest consumer activist of USA in recent times. In
India, laws have been used to protect consumers for centuries. These laws have drawn on
a variety of legal forms, including criminal and civil laws to achieve their objectives. In
addition to those laws that specify consumer protection as their primary concern,
numerous other provisions have the effect of protecting the consumer, for example by
result, the boundaries of consumer protection laws with reference to services are not
easily drawn. This area of consumer interest which deserves top priority among other
things has been sidelined by the authorities concerned. Thus, it is high time to have
against exploitation from the professionals. If we take the Indian society, where most of
the consumers are illiterate and consumer awareness is at the lowest ebb when one
approaches a professional for assistance. The aura, the mystique and the mystery that go
with a profession makes it all the more difficult for the consumer-client to ascertain for
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himself whether he received the right advice or not. This is especially so in the case of the
legal and medical professions. In fact it is a reality that when consumer approaches the
professional, he expects value for money, i.e., right quality of services it may be medical,
legal or architectural. But there are instances where a consumer is harassed, cheated or
Indeed, the need for consumer protection is recognized by law makers in India
since ancient times. It was very well realized that a consumer is prone to exploitation on
the part of providers of goods and services. Therefore, the ancient Indian law codes
regulated not only social conditions but also the economic life of people by establishing
human values and code trade practices to protect the interest of buyers. The ancient law
givers established trade restrictions in order to protect the interest of buyers. In the
During this period, Mughals ruled India. Though they were primarily concerned with
expansion of their empire, there were strict controls in the market place, there was
mechanism for price-enforcement in the market and shop keepers were punished for
under weighing their goods. In the modern period, Britishers introduced a single unified
law in whole India for consumer protection. The British institutions and the rules were
combined with the separate rules like to Dharma and local customs and personal laws for
different religions. Some of the laws which were passed during the British regime
concerning the consumer’s interests are: the Drugs and Cosmetic Act, 1940, the Indian
Penal Code, 1860, the Usurious Loans Act of 1918, the Sales of Goods Act, 1930 and
Agriculture Procedure (Grading and Marketing) Act, 1937. These laws provided specific
After the independence, with the adoption of the Constitution the aspirations of
the people of India found an explicit expression in the preamble, the fundamental rights
and directive principles of state policy. A further amendment of the Preamble ordained
ushering in of “socialism”, which aims to provide decent standard of living to all citizens.
Some of the constitutional provisions lay specific duties on such undertakings, being the
instrumentalities of the state. It is now well established that under Art.14 of the
Constitution no state monopoly could be arbitrary in its dealings with the consumer. The
right to freedom of speech and expression does not include right to advertisement which
misleads the consumer. Even right to freedom of trade, profession or business is also
subject to consumer interest. Article 21 which guarantees right to life and thus denial of
an essential service by the state amount to violation of this right. Several directive
principles of state policy have been incorporated into the Constitution to provide
guidance to the state regarding economic policies to be followed by it for the upliftment
of the national economy and providing economic justice to individuals means consumers
also.
In India legislations for the benefit of the consumer have been sporadic and as a
part of social welfare legislation and not until the end of sixties has any serious attempt
been made to identify the interests of the consumer class. Apart from some peripheral
amendments made to existing laws, the new measures adopted include the following: the
Drugs (Control) Act,1950, the Prevention of Food Adulteration Act, 1954, which has
been substituted by the Food Safety and Standards Act, 2006, the Drugs and Magic
1954, the Trade and Merchandise Mark Act, 1958, the Monopolistic and Restrictive
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Trade Practices Act,1969, the Standards of Weights and Measures Act, 1976, the
Prevention of Black Marketing and Maintenance of Essential Supplies Act, 1980 and the
Bureau of Indian Standards Act,1986. All these Acts protected the consumer interest in
different ways and at the end, majority of the general public do not derive the effective
of India enacted the Consumer Protection Act, in 1986 which protects and provides
effective, people oriented, broad based and efficient remedy to consumer against
Consumers are now participants in a global market, and are at the mercy of the
market forces. Globalization is gaining strength all around us and we need to reinforce
and strengthen our system to meet its challenges. The consumer protection has attained
companies have raised various issues which call for inter- governmental co-operation.
to include the availability, quality and safety of goods and services to the general public.
Transnational Corporations, in its 4th session on March 1978 reached certain formulations
to evolve equitable principles and rules for the protection of consumers and also to
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restrict business practices having adverse effect on consumers, efforts are continuing for
legislations. The role of the OECD (Organization for Economic Co-operation and
report highlighted the problems relating to consumer credit and the principles for
At the regional level, the Council of Europe, European Union (formerly the
European Economic Community) and the Commission of the European Community have
well explored the effects of economic integration on consumers and developed interest in
the capacity of consumer policy to provide insights into some of the fundamental tensions
that beset the evolution of the European Union is today even more enticing. One can find
the European Union’s efforts for protecting the consumer interests in the Treaty of Rome
1957, the Paris Summit of 1972, the European Act, 1986, the Treaty on European Union
1992 etc. The efforts of IOCU was drawn the attention of the Economic and Social
Council towards problems of consumer protection, due to this General Assembly of the
United Nation, adopted the Guidelines for the Protection of Consumers on 1985.
measures for physical safety, promotion and protection of consumer economic rights,
distribution facilities for essential consumer goods and services, effective redressed
etc. India has acted upon on most of these Guidelines which of special significance for
developing countries.
Similarly, the World Medical Association with the sole purpose to serve humanity
set the International Medical Standards and prescribed the important duties of the
same time, the International Code Council developed the International Building Code is a
Model Building Code, which are basic guidelines to the design professionals to avoid the
risk while making initial decisions on constructions. Even the local government can
The consumer protection in advanced countries like USA and UK is not a recent
phenomenon. In fact, consumer awareness in America started at the end of the 19th
century. In 1890, the United States enacted the first anti-trust legislation namely the
Sherman Anti-trust Act. The Act declared every contract, combination in the form of
Act could not respond to the wide-spread pressures for increased protection of
consumers. To meet this demand, various legislations have been enacted. However, the
Bill of Rights of by President Kennedy, the growth of the so called ‘Great Society’
program of the Johnson Administration, and the efforts of Ralf Nader and other consumer
advocates to highlight the existence of unsafe products and the need for greater
government regulation. The result is that American consumers are protected from unsafe
products, fraud, deceptive advertising and unfair business practices through a mixture of
national, state and local governmental laws and the existence of many private rights of
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actions. These public and private rights both protect consumers and, at a formal level,
equip them with the knowledge they need to protect themselves. The consumer is less
informed about the nature and quality of the services, and often relies on the expertise of
the professional in order to assess (agency function) and implement the appropriate
strategy (service function). Some protection for the consumer of professional service is
necessary to guarantee the quality and to mitigate inefficiencies. In USA the professions
like the medical, legal, architect and engineers appear to be highly regulated by their own
professional bodies for e.g. American Medical Association, American Bar Association
and American Institute of Architects by prescribing code of practice. Similarly, civil and
criminal liability can be imposed against professional for negligence but it depends upon
In England, the consumer movement was started after the Second World War
(1939-45). There are number of legislations to protect the interest of consumers in UK.
The most significant of the consumer protection statutes are the Fair Trading Act, 1973,
the Competition Act, 1980 and the Consumer Protection Act, 1987. The objectives of
these Acts were to give the consumer a fair deal wherever possible to stop unfair trading
practice, to control anti-competitive practices against and to protect the consumer against
In England, the regulatory bodies of their respective profession like medical, legal
and architect, exercise a regulatory function i.e., imposing requirements, restrictions and
maintain their profession in high esteem. For e.g. General Medical Council for Medical,
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General Council of Bar for Barristers, Law Society for Solicitors, and Architects
clients for particular services and if there is a breach of the terms of the contract, then the
professionals are held liable for damages as per the general principles of English contract
law. Nonetheless, the English tort law also provides remedies for abused rights and
liabilities outside contractual relationships. Provisions and application of tort law is not
the same in every jurisdiction. The English legal system is very different which provide
very distinct provision in their body of laws. Even professionals are criminally liable for
their negligence, if it is gross which leads to severe injury or death to their clients.
In India, the doctors are considered to be the visible God as they give life to the
persons who are suffering with various diseases, injuries, defects etc. Greater sanctity is
attached to this profession. But now a days, it has become commercialized; many of them
are not adhering to the norms prescribed therefor. Indian Medical Council has prescribed
a code of medical ethics, which are laid out as general principles of medical practice and
duties which the practitioner owes to patients, to the profession at large, to each other and
to the public. The relationship between the doctor and the patient is of trust and
confidence. A patient who approaches a doctor with an ailment will presume that he is
the right and capable person to cure his defect. With that confidence only they approach
him. And at the same time, there is also a duty on the part of the doctor to perform such
obligation with proper care. So far as persons engaged in medical profession are
concerned, it may be stated that every person who enters in the profession undertakes to
bring in the exercise of it a reasonable of care and skill. It is true that a doctor or a
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surgeon does not undertake that he will positively cure the patient. Nor does he undertake
to use the highest degree of skill as there may be persons who are more skilled and
learned than him. But he definitely undertakes to use a fair, reasonable and competent
The liability of doctors for negligence may arise under civil or criminal law. The
tort law requires that there should be definite duty of the medical professional which is
fixed by law, there should be a breach of this legal duty and as a direct consequence of
this breach, patient must suffer some damage. If the plaintiff has proved the above test,
then the patient can claim damages. If negligence is gross, it becomes a criminal offence,
and the doctors will be liable for imprisoned and fine under criminal law. Though, the
civil and criminal law offers remedies to aggrieved patients but these are cumbersome.
The patients have to pay court fees. The trial was long on account of the elaborate rules
of procedure and strict principles of evidence applicable before those courts. This
involved delay and heavy expenditure, which deterred the patient to exhaust the
remedies. For the avoidance of this taboo, the government of India brought CPA, 1986
with a view to provide the consumer an easy, inexpensive and speedy remedy.
At the initial stage after the enactment of the CPA, 1986 there was lot of
confusion in the Judiciary as well as the medical fraternity regarding the applicability of
the Act to the medical profession. The various High Courts reached different conclusions.
However, in the case of Indian Medical Association v. V.P.Shantha in the year 1995, the
Supreme Court judgment proved to be a monumental one. It changed the way one viewed
the medical profession from a totally legal point of view. The judgment brought the
medical profession within the ambit of the CPA, 1986. The patients could now sue the
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doctors for injuries sustained by them, in consumer courts. The doctors are under a
misconceived notion that the Act has imposed a very onerous obligation on them to cure
every patient, who approaches them. There is no truth in this assertion that it is only in a
fraction of medical negligence cases, where the patients have been successful to prove
negligence. The consumer fora have taken into consideration the interest of the doctors
also by directing the patients to pay cost in case of frivolous allegations. The doctors need
to take the Act, in its right spirit. Moreover, doctors by themselves do not belong to a
particular class. They are also consumers of medical services. The doors of consumer
fora are also open to them when they become the victims of deficient medical services.
Like medical profession, the legal profession is also a noble profession, the most
and attractive of the peaceful professions, with responsibilities, both inside and outside it,
which no person carrying on any other profession has to shoulder. It is a great controlling
and unifying institution which places upon each his obligations. No other profession
touches human life at so many points than law. It has always been held in high esteem
and its members have played an enviable role in public life. However, it is greatly felt
that the nobility, greatness and honour of the legal profession are declining fast in recent
days and some of legal practitioners are converting this profession in to a trade or
rightly said, “the legal profession is not trade, not merchandise but a monopoly adhering
to high traditions.” This is closely aligned with the fact that the very concept of
professional misconduct for lawyers has a moralistic element which necessarily involves
disgrace or dishonour to the legal community and which impedes the administration of
services to the clients with respect to both litigation and non-litigation matters. The
guarantee the result and it is for the courts to assess and weigh the material/evidence in
the light of the laws applicable to the case in the course of doing justice. However, there
are situations in which an advocate could be held responsible for the loss caused to his
client for deficiency in service when loss could be attributable solely on the negligence of
advocate. In other words, right from accepting the brief to the conclusion of the case, an
advocate is expected to exercise due care and diligence in the conduct of the case that is
expected from an advocate. It is not enough to have acted bonafide and to the best of skill
and judgment, as he has a duty to use such care as would be used by others in the same
profession. Departing from this standard may well invite an action for negligence. An
option is available to the client either to invoke the jurisdiction of civil courts under
contract law, tort law or the Consumer Fora under the CPA, 1986.
lawyer and client is contractual in nature. The contract entered into by the professional
and his client usually stipulates instructions as to the service that is to be rendered and
consideration for it. The extent of a lawyer’s obligation towards his client for breach of
contract depends on the terms of the contract, express or implied. For instance, if a
solicitor is instructed to effect the grant of an option, there are implied terms that he will
draw up the option agreement and effect registration. An infraction of any such term can
amount to a violation of the contract, thus making the advocates liable to the consumer.
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contract. A consumer of services may have a case for making the professional liable
under the law of torts, if he can establish negligence on the part of the legal practitioner.
The tort of negligence stands established when the following conditions are satisfied: (a)
The professional owes a duty of care to the consumer, (b) The professional has acted or
spoken in a manner that breaches that duty of care, (c) The consumer has suffered
liability under the CPA, 1986 for any deficiency in service rendered by him? is a present
pending issue before the Supreme Court. In D.K.Gandhi v. M.Mathias,2 the National
Commission made it clear that all professional including lawyers should come within the
purview of the Act. The same case reached to the Supreme Court i.e., Bar of Indian
Lawyers v. D.K.Gandhi,3 where petitioners are claiming immunity from liability under
CPA, 1986. At present Supreme Court granted stay against orders of the National
Commission. The reasoning adopted by the Supreme Court in Shantha Case, holding
doctors liable for deficiency in service under CPA, 1986 is sound and rational, and there
is no reason why the same reasoning cannot be adopted in the case of advocate. The
blanket of immunity to the advocates for their professional negligence will not only affect
the client’s confidence in them but also society as a whole. Bringing advocates under
CPA, 1986 will do more good and make them more responsible to their clients, courts
2
Order dated August 06, 2007 in RP No. 1392/2006
3
(MANU/SC/0950/2009), See @ http://www.nerve.in/news253500-217160
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ensure that a building is not just strong, but that it looks good and takes care of the
comfort of the inhabitants as well. Architects and engineers also practice a learned
profession. The responsibility of architect and engineer often overlap. Both professions
are integral to the design and construction of structures, such as building and bridges.
Architect design the space to meet client needs, as well as the aesthetic appearance the
inside and exterior of the building. Engineer’s main responsibility is to ensure the design
is safe and meets all appropriate building codes. Engineers concern themselves with
making buildings safe and functional by selecting structural materials, determining the
structural members of the design, and specify the electrical, heating, ventilation, air
conditioning and plumbing systems. One way that engineers and architects communicate
law. The sale of professional services carries with it the implied warranty that the service
will be performed in a skilful and workman like manner. This implied warranty of good
and workman like performance applies to a suit for architectural malpractice. A contract
for professional services gives rise to a duty by the professional to exercise the degree of
care, skill and competence that reasonably competent members of the profession would
thereby suffer injury. In Rimmer v. Liverpool City Council,4 court held that “a landlord
who also designed or built the premises, owed in his capacity as designer or builder, a
duty of care to all persons who might reasonably be expected to be affected by the design
of construction of the premises, the duty being to take reasonable care to see that such
4
(1984)1 AII ER 930(CA)
325
persons would not suffer injury as a result of faults in the design or construction of the
premises.” The obligations and liabilities that may arise for architect and engineers
depend on their precise role during a construction project. Some of the claims more
typically made against architects and engineers involve negligence in respect of design
architectural education and profession throughout the country. The Council has
and the owners and occupiers of the buildings in what manner and under which
services and at the same time, it highlights’ the clients/occupiers duties and
on the complaint of client against architect for guilty of professional misconduct, the
Council of Architecture, after holding an inquiry as per rules, may by order reprimand the
said architect or suspend him from practice or remove his name from register or pass
such order as it thinks fit to protect sanctity of profession and to safeguard the interest of
can enforce their remedies through civil courts under contract law or law of torts or
The primary basis of the duties of the building professionals in a particular case is
the contract pursuant to which each is engaged. Whether oral or written, the contract
the nature and extent of the engagement undertaken. Circumstances in which architect
as the cornerstone of contractual liability, will depend also on the type of obligation
assumed by the architect and engineer. The burden of proof varies according to the type
of obligation undertaken by the professionals and on whether their liability arises under
the handover date, there may be a breach of contract per se. In this situation, the claimant
carries the burden of proof of the existence of a contract, the obligations breached, the
extent of damage, and evidence that the result has not been obtained, and can claim
damages for loss occurred. Sometimes an architect and engineer will also be held liable
to third parties provided the latter were within his reasonable contemplation. For e.g.
where, the nature of work may compel the architect to employ a specialist engineer,
though no contractual relation exist between such engineer and the employer, former will
Like any other professional man, the liability of an architect and engineer is also
concurrent. The liability of an architect for breach of a duty to take care is independent of
reasonable care and skill which is expected of an ordinarily competent and skilled
architect. It may be for improper examination of site, errors in preparation of plans and
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specifications, failing to provide a proper estimate of the cost, failing to take reasonable
steps in selecting contractors etc. In these circumstances clients can claim damages for
the loss. However, the liability of architect and engineers is not absolute. Architect and
engineers can avoid their liability under various circumstances. Even architect and
engineers can exclude or limit their liability for negligence by inserting exclusion clauses.
The remedies in civil courts are expensive and time consuming. Thus, instead of
going to civil courts, consumers of architect and engineering services are advised to
approach consumer fora for enforcing remedies which is open to all the consumers of
professional services. The Supreme Court in the case of Indian Medical Association v.
accountants, doctors, engineers, interior decorators, and others- are covered under the
CPA, 1986. Thus, architect and engineers services falls under the purview of CPA, 1986
and consumer of these services can claim remedies for deficiency in service under CPA,
In order to satisfy the various needs demanded from the profession of medical,
legal, architect and other, the quality of service they provide must command the
confidence and respect of the public. This can only be achieved if professionals establish
and maintain a reputation for both the integrity and high standards of professional skill
and care. No set of rules can foresee every possible situation, but the ethical principles set
out in their respective codes are intended to provide a framework within which the
professionals may, with courage and dignity, provide the high quality of professional
services that a complex and ever changing society demands. Courts have, while
5
(995) 3 CTJ 984 (SC)
328
interpreting the law, mostly agreed that the law does not usually imply a warranty that he
(the professional man ) will achieve the desired result, but that he will use ‘reasonable
care and skill’ and the evaluation of reasonableness depends upon human ingenuity and
can vary with circumstances and evaluating individuals. In Charan Singh v. Healing
Touch Hospital and others6, the Supreme Court also observed that “the Consumer
Forums while quantifying damages are required to make an attempt to serve the ends of
justice so that compensation is awarded, in an established case, which not only serve the
purpose of recompensing the individual, but which also at the same time, aims to bring
about a qualitative change in the attitude of the service provider”. The best example the
Supreme Court has given in Anuradha Saha case,7 where three physicians were held
responsible for the death of a woman in a Kolkata hospital 15 years ago and awarded the
highest compensation ever ordered in a case of medical negligence in India. The court
ordered a compensation of Rs.5.96 crore, which with interest crosses Rs.11 crore. The
Supreme Court has sent out a very strong message to the medical fraternity in India. In
the Indian context, this verdict will go a long way in telling the medical community that
they can be questioned and held accountable as well. Ultimately, it is an established fact
that the CPA, 1986 was necessitated by the increasing exploitative situations faced by a
consumer. The Act has been a landmark socio-economic legislation dealing with specific
class namely consumer, catering to their protection and compensating the victimized
consumer.
At last but not least to conclude the discussion of the present study in a broader
way, it is submitted that CPA, 1986 which is a benevolent, beneficial and indeed a
6
(2000)7SCC668)
7
Dr. Balram Prasad v. Dr. Kunal Saha & Ors. [Civil Appeal No.2867 of 2012]
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profession. What is required is the necessary awareness amongst consumers about their
rights, above all their willingness and courage to assert their rights as well as the
In view of above conclusions the following few suggestions are made for
strengthening the consumer law so that consumer of services could get efficient services
and protection.
8.2 Suggestions
• Suggestions Related to the Professional Services
1) The exclusion of ‘free service’ and ‘contract of personal service’ under Sec.2(1)(o)
of CPA, 1986, which are immune from any liability are also required to be brought
2) The compensation payable for deficiency in service must be clearly specified in the
CPA, 1986 by taking into consideration the gravity of the offence and its ill effects
4) With increasing cost of healthcare claim for medical negligence, it should be made
mandatory for the doctors and hospital owners to go for Indemnity Insurance to
laying down the procedure for determining the negligence, before any action is
initiated.
6) Doctors who refuse to take up medico–legal cases must be prima facie held to be
spelled out.
should be made strictly liable for any loss suffered by the owners and regulatory
• General Suggestions
exercise his real freedom of choice. Information is required primarily in three areas:
a) the quality and safety of services available from the professionals b) the price of
services offered and c) the rights that consumers can exercise in their dealings with
professionals.
10) Consumer education must be vigorously permeated in urban as well as rural areas.
confident choices about goods and services, and at the same time being aware of
basic consumer rights and responsibilities and how to act on them. The right to
11) General public must be trained through educative schemes and programmes to form
habit of taking receipts from the service providers for services availed of, in order to
making, not only by public authorities but actually within companies which affect
13) State should also endeavor to establish Consumer Redressal Units at Tehsil and
14) Government should make efforts to constitute a genuine network of ‘Legal Advice
15) There is need for special studies and frequent audit of professional negligence cases
to find out the new and emerging causes of professional negligence in future.