CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA NAGAR,

MITHAPUR, PATNA-800001

CHANGES BROUGHT ABOUT BY THE COSTITUTIONAL

AMENDMENT ACT 2002 IN THE CONSUMER PROTECTION ACT
1986

THIS FINAL DRAFT IS SUBMITTED IN THE PARTIAL FUFILMENT OF THE COURSE

TITLED:

LAW OF TORTS

SUBMITTED TO; SUBMITTED BY;

MS SNEHA SAGAR SANJAY

FACULTY OF TORTS BA L.L.B (HONS)

SEMESTER-1

ROLL NO- 2147

1
 TABLE OF CONTENTS

LIST OF CASES 03

DECLARAION 04

ACKNOWLEDGEMENT 05

AIMS AND OBJECTIVES 06

HYPOTHESIS 06

RESEARCH QUESTIONS 06

RESEARCH METHODOLOGY 07

INTRODUCTION 08-09

FEATURES OF CONSUMER PROTECTION ACT 1986 10

RIGHTS OF CONSUMERS 11-12

CHANGES BROUGHT ABOUT BY THE CONSTITUTIONAL AMENDMENT ACT

2002 IN THE CONSUMER PROTECTION ACT 1986 13-15

SHIFT FROM THE APPROACH OF

CAVEAT EMPTOR TO CAVEAT VENDITOR 16-17

LANDMARK CASES 18

CONCLUSION AND SUGGESTION 19

BIBLIOGRAPHY 20

2
 LIST OF CASES CITED

1.Chief Administrator, H.U.D.A. & Anr. v. Shakuntla Devi.

2. Om Prakash v. Reliance General Insurance

3
 DECLARATIONBY THE CANDIDATE

I, hereby, declare that the work reported in the B.A L.L.B (Hons.) Project report entitled
“CHANGES BROUGHT BY THE CONSTITUTIONAL AMENDMENT ACT 2002, IN
THE CONSUMER PROTECTION ACT 1986” submitted at CHANAKYA NATIONAL
LAW UNIVERSITY PATNA is an authentic record of my work carried out under the
guidance of MS SNEHA. I have not submitted this work anywhere else for any other degree
or diploma. I am also fully responsible for the contents of my project report.

(Signature of the candidate)

SAGAR SANJAY

B.A L.L.B (Hons)

SEMESTER -1

CNLU, Patna

4
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my mentor and guide Ms Sneha ,
Faculty of Law of Torts who gave me the opportunity to do this project during the course of
which I learned a lot and was able to find a lot of new things.

I would also like to extend my deep gratitude to family members and friends who helped me a
lot in finalizing this project within the stipulated time frame.

THANK YOU,

SAGAR SANJAY

B.A L.L.B (HONS)

SEMESTER -1

5
 AIMS AND OBJECTIVES

The researcher wants:

1. To understand the rights of consumers as provided under the consumer protection act
1986 and the constitutional amendment act 2002
2. To conduct a comparative analysis of the consumer protection act 1986 and
constitutional amendment act of 2002
3. To research upon the fact that there has been a shift from the approach of “Caveat
emptor” to “Caveat venditor”
4. To understand the facts, judgements and principles of landmark cases related to
consumer protection

HYPOTHESIS

The researcher is interested in analysing the major changes brought about by the constitutional
amendment act 2002 in the consumer protection act 1986

A comparative analysis would help the researcher to draw conclusion that wheather these
changes had a positive impact on the protection of the rights of the consumers or not

RESEARCH QUESTIONS

1. What led to the legal advancement of consumer protection act 1986?

2. Has the constitutional amendment act 2002 facilitated quicker disposal of consumer
complaints?
3. Can it be justified that the qualifications and procedure of the selection of the members
of the consumer forum has been rationalised?

6
 RESEARCH METHODOLOGY

The researcher has done doctrinal type of research in which he has gone through the primary
as well as secondary sources. While doing this project, the researcher consulted various case
laws as the primary source and commentaries on them. The doctrinal type of research allows
the researcher to read, analyse and compare all that is written and present.

7
 INTRODUCTION

The present-day worry for shopper rights isn't new and purchaser's privileges to have
unadulterated, un-tainted wares at suitable costs has been perceived since antiquated occasions.
The rulers in those days felt the need of the welfare of their kin and believed it to be the real
territory of concern. They gave significance on directing the social conditions just as the
financial existence of the individuals; they built up exchange limitations request to ensure the
interests of purchasers.

In Manu Smriti the social, political and financial states of old society are portrayed. Manu had
additionally composed on moral exchange rehearses. A set of accepted rules to dealers and
determined disciplines to the individuals who perpetrated certain wrongdoings against
purchasers was given. For instance, he alluded to the issue of corruption and as per him any
polluted product ought not be sold as unadulterated, nor an awful one as great, nothing not
exactly the amount or weight ought to be sold.

As per Kautilya industrial facilities ought to be coordinated to fabricate, and as indicated by

the standard loads and measures and he additionally energized on checking of the stepping of
loads to be made at regular intervals. For the privileges of the merchants on the arrival of an
article acquired or instalment of cost thereof, there was fixed standard of time for the arrival of
article, after which an article couldn't be returned. Merchandise were not to be sold straight
forwardly from the industrial facility, markets were made for sell where the seller needed to
announce points of interest with regards to the amount, quality and the costs of the products
which were inspected and enlisted in the books. There were extreme disciplines for pirating
and defilement of merchandise.

In this way, the State bore an overwhelming obligation regarding securing the general
population against uncalled for costs and false exchanges. The ruler was the focal capacity to
render equity. The King looked on the issues of the customer on the second move of the day.
The versatile and circuit courts worked during the evening to tune in to the cases and render
equity, at whatever point need emerged. These shows how compelling were the redressal
framework old time.

8
In the medieval period, buyer security kept on being of prime worry of the rulers. Exacting
controls were set up in the commercial center, there was a component for value requirement in
the market and retailers were rebuffed for under gauging their merchandise.

In the advanced period, Britishers presented a solitary brought together law in entire India for
purchaser security. The British organizations and standards were joined with the different
principles like to Dharma and neighbourhood customs and individual laws for various
religions.

9
 FEATURES OF CONSUMER PROTECTION ACT 1986

1. The consumer protection act 1986 was made so as to look after the grievances of the
consumers. It was implemented so that the consumers could be saved from exploitation
and that the consumers had a way being protected.
2. Under the Consumer Protection Act, 1986 whine can be filled by any of the gathering
beneath for example Buyer gatherings, the focal or any state government. This
advancement demonstrates the consideration that has been taken to speak to and battle
for the reason for feeble, detached and uneducated customers.
3. The consumer protection act 1986 took both goods as well as services under it’s
jurisdiction
4. The consumer protection act 1986 also replaced the rigid procedural and qualification
and made them easy and simple so that timely and appropriate justice could be provided
to the consumers.
5. Another major procedural adaptability is the choice that the buyer need not pay a legal
advisor. In the event that the customer likes, he can speak to himself. These basic
proportions of activity drive shoppers to profit themselves of the advantages of the
Consumer Protection Act, 1986.
6. The Act also provides for setting up of Consumer Protection Councils at the Central,
State and District levels, which are set up as advisory bodies to promote and protect the
rights of the consumers.

10
 RIGHTS OF CONSUMERS

RIGHT TO SAFETY:

Right to safety was incorporated in the consumer protection act 1986 so as to safeguard the
interest of the consumers against the marketing of goods and services which can be hazardous
to life and property.1

RIGHT TO INFORMATION:

This right means right to be informed about the quality, quantity, purity, standard and the price
of goods so as to protect the consumer against unfair trade practices. The key features are:

1. The right to be given the facts needed to make an informed choice, to be protected
against false advertising or labelling.
2. The responsibility to search out and use available information.
3. To read and follow labels and research before purchase. Without information on
quality, quantity, potency, purity, standard and price of goods and services, consumers
would not be able to make the right decisions and protect themselves from abusive
practices. Various interpretations of Article 19 (2) of fundamental rights clearly state
that there should be a definite policy or uniform guidelines on the part of the state to
help consumers make “informed choice”.2

RIGHT TO CHOOSE:

Under this right the buyer is guaranteed to assortment of merchandise and ventures at focused
costs. On account of a monopolistic market, the purchaser have the right to get acceptable
quality and administration at an proper cost. It additionally incorporates ideal to fundamental
merchandise and ventures. Inspite different enactment, the right to decision of the Indian buyer
isn't had the option to be accomplished. At the miniaturized scale level, the individual is
subjected to injustice every single day by unscrupulous merchants, constrained and forced into
purchasing things she/he doesn't require as a component of tied-selling, and tricked by wrong

1
http://www.consumerrights.org.in/to-safety.htm
2
Right to Information, URL- http://www.consumerrights.org.in/to-information.htm

11
loads and low quality. Shoppers in numerous pieces of the nation are denied of their
fundamental rights, for example, supply of power, great streets, legitimate vehicle and other
open administrations and utilities.

RIGHT TO BE HEARD:

This right means that consumer’s interests will receive utmost importance by simple and
speedy trial with due consideration at appropriate fora. It also includes the right to be
represented in various fora formed to consider the consumer’s welfare.

RIGHT TO REDRESS:

This right allows the citizens to register their genuine grievances so that it may create an impact
on the society. The complaint might be small but it might play a very vital role in impacting
the society.

RIGHT TO CONSUMER EDUCATION:

This right contains the arrangement to get knowledge and skills expected to settle on all around
educated and certain decisions about products and ventures, and simultaneously monitoring
fundamental buyer rights and duties and the proper behaviour on them. The right to obtain the
learning and skills is an important to be an educated purchaser.

RIGHT TO BASIC NEEDS:

Each and every consumer should have the basic right to have access to all the basic needs such
as food, water, shelter, cloth and education.

RIGHT TO SAFE ENVIRONMENT:

The right to a safe and healthy environment is something that should be available to each and
every consumer. This right includes the right to live and work in a safe and healthy
environment.

12
CHANGES BROUGHT ABOUT BY THE CONSTITUTIONAL AMENDMENT CT
2002 IN THE CONSUMER PROTECTION ACT 1986

The constitutional amendment act 2002 brought very significant changes in the consumer
protection act 1986. Complainant will also include the legal heir or representative of the
consumer. It made sure that the courts would look into the marketing of goods and services. It
made sure that the rules made were simple so that justice could be provided to the consumers.
The amendment focussed on the timely disposal of consumer complaints. The contravention
of 'standards' obviously refers to existing standards for quality, quantity, packaging and content
etc. Will the liability be strict in such case? There are numerous Orders and Rules relating to
food, fruit and products.

JURISDICTION:

Value of a compliant before the District Forum or pecuniary jurisdiction did not exceed rupees
five lakh and has been expanded to a sum of rupees twenty lakh obviously aimed at
unburdening the State and National Commissions. Similarly, the value of complaints before
the state commission will now be a range that exceeds rupees twenty lakh but not rupees one
crore compared to the earlier five lakhs to twenty lakhs. The National Commission will hear
complaints valued at rupees one crore and above.

The place of residence or of carrying on business or where cause of action arose etc. will have
a bearing on which State Commission the suit is instituted. Complaints against foreign concerns
were admissible before the redressal agencies, even under the principal Act, if they had a
branch office within the local jurisdiction of the agency.

Aggrieved parties may appeal to the State Commission from the District Forum and to the
National Commission from the State Commission.3

AWARDS AND OTHERS:

3
http://www.legalserviceindia.com/articles/consumer_avantika.htm

13
The District Forum may, by request, enable a complainta to be continued with or dismissed on
its receipt. A chance of being heard must be permitted to the complainant before making an
unfavourable request.

An ex parte request dependent on complainant's proof might be conceded where respondent

comes up short or discards to show up or speak to his case. The case might be rejected for
default or settled on benefits when the complainant neglects to precede the court. Numerous
creators and diaries had looked for an explanation on this issue and for once, Parliament has
obliged!

The District Forum may pass between time orders during the pendency of any procedures, on
the off chance that it considers fit in light of a legitimate concern for equity. A few creators
were of the feeling that the District Forum couldn't pass between time requests and award a
transitory alleviation, just last help could be conceded .

APPEALS:

The Bill embeds a second proviso to S 15. Any individual who is required to pay any sum
compelled of the discussion won't be permitted to go on offer except if he stores half of the
said sum or Rs. 25,000, whichever is less with the District Forum. The arrangement is the
equivalent for an appeal from the State Commission with the exception of that the sum will be
half of cash the gathering engaging has been ordered to pay or Rs. 35,000, whichever is less.
What's more, at the National Commission, this sum moves toward becoming Rs. 50,000. There
is no arrangement for second appeal if a gathering prevails before the District Forum and bombs
before the State Commission.

PROVISIONS TO EXPEDITE PROCEEDINGS:

The admissibility of the complaint must be decided within twenty-one days of its receipt.
The opposite party must be referred copy of complaint within twenty-one days from date of
admission. His version of the story is expected within thirty days with extension of not more
than fifteen days.
Complaints are to be heard as expeditiously as possible and the court must attempt to decide
the case within three months from date of receipt of notice by the opposite party as long as the
complaint does not require testing and analysis. We know already, that the laboratory must
report its findings to the court within forty-five days of the reference or in such extended time
as the court grants it. The court will endeavour to decide a complaint requiring analysis and

14
testing within five months.
The Bill seeks to curtail the grant of adjournment. The Forum is required to consider whether
sufficient cause is shown and record a reasoned order (in writing). The Forum will make orders
as to costs occasioned by such grant in accordance with the regulations made under the new
Act.4

ENFORCEMENT:

The act laid down that the order passed or given by a District, State or National commission
will have the same effect and the same authority as an order or decree from a court of law. The
act allows a minimum imprisonment of one month or a minimum fine of rupees 10,000 for the
non-performance of the order or the decree. The consumer courts have been allowed discretion
to award less than the minimum penalties so prescribed in the proviso to the section.

Where an amount is due to a person under an order passed by the District Forum, State or
National Commission, such person may make an application for issue of a certificate of the
said amount to the Collector (or other person) of the district who shall proceed to recover the
amount as arrears of land revenue.

SHIFT FROM THE APPROACH OF CAVEAT EMPTOR TO CAVEAT VENDITOR

4
http://www.legalserviceindia.com/articles/consumer_avantika.htm

15
The caveat emptor principle, that literally means let the buyer beware, has been followed for
many years by the Courts of England. These simple words were an easy focus for judicial
thought, a principle to be invoked when the going is difficult, a guide to be followed amid the
baffling uncertainties of litigation.5. This principle was also initially followed in india where
the consumers had to bear with all the injustice. The consumers were indirectly held to ransom
and the only thing that the consumers could do about it was to succumbed to it. A great deal of
cases in medieval times were chosen by the guidelines of the lex mercatoria in special courts,
yet for other than the essential rights, for example, the right of the vender to installment and
the right of the purchaser to the products, private law was not exceptionally appealed. Truly
the criminal law and resolutions that disallowed the utilization of false statutes that prohibited
the use of false measures and the adulteration of food, beer and wine, regulated the major part
of claims about the sale of goods and there were local policies regulating the trade fairs that
changed from place to place. Today though this is not the case as the world has seen a major
shift from the approach of caveat emptor to caveat venditor . The consumer protection act 1986
came as great help to the consumers who were helpless at the hands of the sellers. The act
aimed at safeguarding the consumers from illegal practices of the vendors and protect the rights
of the buyers. It created an environment where the consumers felt protected and had a feeling
of certainty. The act with it’s various procedures started to make the vendors more cautious of
their approach and they became more careful. Though the act had various loopholes such as
the separation of powers between the district ,the state and the national forums were not proper.
The complaints of the consumerstook a lot of time to be resolved which ultimately created a
feeling of resentment among the consumers. Lord Wilberforce stated: "I would have no
difficulty in holding that a seller deals in goods of that description if he accepts orders to supply
them in the way of business; and this whether or not he has previously or not accepted orders
for goods of that description". This meant that the seller could be considered an expert for the
sole reason that he was selling those goods and this is the reason why this was considered a
sale by description!. It is difficult to agree with the Learned Lord's opinion but it illustrates
how the law was manipulated to guarantee a greater protection to the buyer. The loopholes that
were left by the consumer protection act of 1986 were rectified to a greater extent by the
constitutional amendment act 2002 in the wider interests of the consumers. The timely disposal
of consumer complaints was the prime focus of the amendment and at the same time it also

http://www.mondaq.com/italy/x/40206/Arbitration+Dispute+Resolution/From+Caveat+Emptor+to+C
aveat+Venditor+a+Brief+History+of+English+Sale+of+Goods+Law

16
clearly stated the separation of powers. The present scenario is therefore the following: section
13 of the Sale of Goods Act 1979 as amended provides that where there is a contract for the
sale of goods by description, there is an implied term that the goods will correspond with the
description. A very accurate description will assure the buyer with a greater protection.
Notwithstanding, even goods, which correspond with their description, can be defective so
Section 14 provides that the goods sold in a course of a business must be of satisfactory quality.
The goods are considered of satisfactory quality basically when they are fit for their normal
purposes, finished, free from minor defects, safe and durable. Moreover if the buyer needs the
goods for a particular purpose and makes it know to the seller, the goods must be fit for the
particular buyer's purpose.6

http://www.mondaq.com/italy/x/40206/Arbitration+Dispute+Resolution/From+Caveat+Emptor+to+C
aveat+Venditor+a+Brief+History+of+English+Sale+of+Goods+Law

17
 LANDMARK CASES

1. Chief Administrator, H.U.D.A. & Anr. v. Shakuntla Devi. The apex court held that:

 That the sine qua non for entitlement of compensation is proof of loss or injury
suffered by the consumer due to the negligence of the opposite party. Once the said
conditions are satisfied, the Consumer Forum would have to decide the quantum of
compensation to which the consumer is entitled.
 That there cannot be any dispute that the computation of compensation has to be
fair, reasonable and commensurate to the loss or injury. There is a duty cast on the
Consumer Forum to take into account all relevant factors for arriving at the
compensation to be paid.

2. Om Prakash v. Reliance General Insurance7. The Supreme Court held that:

 “The Apex Court in the case observed that an Insurance company shall reject
claim on valid grounds. Rejection of the claims on purely technical grounds in
a mechanical manner will result in loss of confidence of policy-holders in the
insurance industry. If the reason for delay in making a claim is satisfactorily
explained, such a claim cannot be rejected on the ground of delay. It is also
necessary to state here that it would not be fair and reasonable to reject genuine
claims which had already been verified and found to be correct by the
Investigator.The Court also noted that the Consumer Protection Act, 1986 is a
beneficial legislation that deserves liberal construction. This laudable object
should not be forgotten while considering the claims made under the Act”.

7
CIVIL APPEAL NO. 15611 OF 2017 (Arising out of SLP (C) No.742 of 2015)

18
 CONCLUSION AND SUGGESTIONS

Teach customers to build up a comprehension of their obligations as shoppers. Customer ought

to sort out together to build up the quality and impact to advance and secure their own
advantage. Government should make and execute principles of discipline harsher with the goal
that producer and businessperson reconsider before embracing deceitful practices.Government
and other purchaser offices should endeavour endeavours toward promulgation and exposure
of the region gathering, the state and the legal executive built up for shopper insurance to make
increasingly more buyer mindfulness about hardware for their more noteworthy contribution
and to look for equity in the event of complaints. The need to educate the consumers in the
present scenario is very necessary as many of the consumers are not even aware of the rights
that they have at their disposal. It should be the primary duty of the government to educate the
consumers about their rights. However, the present drive and direction need to be supported by
appointing efficient and quicker redressal system and there is an alarming need for the State
Governments to give considerable amount of priority to Consumer welfare and gear up
themselves to meet the challenges thrown up by market economy.

However, the present drive and direction need to be supported by appointing efficient and
quicker redressal system and there is an alarming need for the State Governments to give
considerable amount of priority to Consumer welfare and gear up themselves to meet the
challenges thrown up by market economy. Besides this the involvement of civil society
organizations, above all consumer and trade and industry, themselves are vital for betterment
of consumer welfare in the years to come. Quality product is consumer’s right and they are all
well empowered to get it. Rules and regulations as well as policies must be made and
implemented by the executives so that interests of the consumers are safeguarded.

Thus the acts of consumer protection have ensured that days of caveat emptor are over that the
sellers must be ware of what they are doing.

19
 BIBLIOGRAPHY

WEB SOURCES:
1. https://indiankanoon.org/
2. http://www.legalserviceindia.com
3. https://www.vakilno1.com/legal-news/important-judgments-on-consumer-
protection-act-1986

20
 INJURIA SINE DAMNUM

Bhim Singh vs. State of J. & K

in this case the petitioner was an M.L.A. of J. & k. parliamentary assembly. While he was
going to attend the assembly session, police there wrongfully arrested him. He was not even
presented before the magistrate within the stipulated time. Resultant was that the person was
wrongfully deprived of his legal right to attend the meeting and moreover his fundamental
right i.e. art 21 of the constitution was also violated. It was held that the respondent was
responsible, and the petitioner was liable to receive Rs. 50,000 from the defendant.

DAMNUM SINE INJURIA

Ushaben vs. Bhagyalaxmi Chitra Mandir

In this case, the plaintiff pleaded before the court of law to issue a permanent injunction order
on the film named, “Jai Santoshi Maa”. According to her, the film hurt the religious feelings
of the plaintiff. It was observed that hurting of religious sentiments did not result in any legal
injury, and also that other then the plaintiff no other person feelings were hurt. Therefore it
was held that the defendant was not liable.

21