Consumer Protection Act, 1986 An Analysis

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Consumer Protection Act, 1986 An Analysis
By Mohd Aqib Aslam | Views 5265
Section 482 CrPc - Quashing Of FIR: Guid...
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The Inherent power
under Section 482 in
History of Consumer Protection Movement in India: The Code Of Criminal
The Consumer Protection Act, 1986 was enacted as a result of widespread consumer protection movement. On the Procedure, 1973 (37th
basis of the report of the Secretary General on Consumer Protection dated 27.5.1983, the United Nations Economic Chapter of th...
and Social Council recommended that the world Governments should develop, strengthen and implement a
consumer protection policy taking into consideration of guidelines set out therein. The Governments were to
further provide adequate infrastructure including the bodies as well as nancial facilities to develop, implement
and monitor consumer protection policies. How To File For Mutual Divorce In Delhi
How To File For Mutual
The introduction of new products in the developing countries was to be assessed in relation to the local conditions Divorce In Delhi
having regard to the existing production, distribution and consumption patterns of the country or region Mutual Consent
concerned. With reference to the consumer movement and international obligations for protection of the rights of Divorce is the Simplest
the consumer provision has been made in the said Act with the object of interpreting the relevant law in a rational Way to Obtain a D...
manner and for achieving the objective set forth in the Act. The interpretation should be in a rational manner so as
to achieve the object of the 1986 Act and not in a technical manner.

Aims and Objects of the Act: Copyright: An important element of Intel...


The Act is dedicated as its preamble shows that provide for better protection of the interests of consumers and for
The Intellectual
that purpose to make provision for the establishment of consumer councils and other authorities for the
Property Rights (IPR)
settlement of consumer disputes and other connected matters. In the statement of objects and reasons it is said
has its own economic
that the Act seeks to provide speedy and simple redressal to consumer disputes.
value when it puts into
any market ...
Quasi judicial machinery is sought to be set up at the district, state and central levels. The quasi judicial bodies will
observe the principles of natural justice and have been empowered to give reliefs of a speci c nature and to award,
whereas appropriate, compensation to consumers penalties for non-compliance of orders given by the quasi-
judicial bodies have also been provided. Law of Writs In Indian Constitution
Origin of Writ In
De nitions:
common law, Writ is a
Complainant (Sec. 2(b)): means formal written order
i. A consumer
issued by a body with
ii. Any Voluntary Consumer Association registered under the Companies Act, 1956; or under any other law for
administrati...
the time being in force.
iii. The Central Government or any State Government who or which make a complaint.
iv. One or more consumers, where there are numerous consumers having the same interest.
Types of Writs In Indian Constitution
Complaint (Sec. 2(1) (c)): The supreme court,
means any allegation in writing made by a complainant. and High courts have
power to issue writs in
Consumer (Sec. 2(1) (d)): means any person who: the nature of habeas
i. Buys any goods for a consideration which have been paid or promised or partly paid and partly promised. corpus , quo...
ii. Hires or avails of any services for a consideration. Sec. 2(1) (d) of the Consumer Protection Act 1986 in two
parts, one in reference to a consumer who purchases goods and the second in reference to a person who
hires service.
Role of Trade Unions in India
Consumer dispute (Sec. 2(1) (e): Trade Unionism had
means a dispute where the person against whom a complaint has been made, denies or disputes the allegations
made its headway
contained in the complaint.
owing to growth of
industrialization and
Defect (Sec. 2(1)(f)): capitalism. The Ind...
means any fault, imperfection, short coming 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 as is claimed by the trader in any
manner what so ever in relation to any goods.

De ciency (Sec. 2(1)(g)):


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.

Restrictive Trade Practice (Sec. 2(1) (n)):


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 others goods or services.

Service (Sec. 2(1) (o)):


means service of any description which is made available to potential users and includes the provision of facilities
in connection with banking, nancing, insurance, transport, processing supply of electrical or other energy; board
or lodging or both (housing construction) entertainment amusement or the purveying a news or other information,
but does not include the rendering of any service free of charge or under a contract of personal service.

Unfair Trade Practice (Sec. 2(1) (r)):


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 deceptive practices.

Consumer Protection Councils:


1. Central Consumer Protection Council (Sec. 4).
2. State Consumer Protection Council (Sec. 7-8).

Central Consumer Protection Council shall consist of the following members namely:
a. The Minister incharge of consumer a airs in the Central Government who shall be its chairman.
b. Such members of other o cial or non-o cial members representing such interests as may be prescribed.
The membership has been thus left to the rule - making power of the Government. The consumers
protection rules were promulgated in 1987. The membership of the council is given in Sec. 3 of the Rules. It is
to be composed of 150 members.

Procedure of Central Council has to observe the procedure in regard to the transaction of its business partly as
prescribed by Sec. 5 and partly by rules.

Object of the Central Council:


(Sec.6) The object of the Central Council shall be to promote and protect the rights of the consumers.
1. The right to be protected against marketing of goods and services which are hazardous to life and property;
(Sec. 6(a)).
2. The right to be informed about the quality, quantity, potency, purity, standard and price of the goods or
services, as the case may be, so as to protect the consumer against unfair trade practices; (Sec. 6(b)).
3. The right to be assured, wherever possible, of access to a variety of goods and services at competitive prices;
(Sec. 6(c)).
4. The right to be heard and to be assured that consumers interests will receive due consideration at
appropriate forums; (Sec. 6(d)).
5. The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous
exploitation of consumers; (Sec. 6(e)).
6. The right to consumer education. (Sec. 6 (f))

State Consumer Protection Councils: (Sec. 7)


The State Government may by noti cation, establish with e ect from such date as it may specify in such
noti cation, a council to be known as the Consumer Protection Council referred to as the State Council. The State
Council shall consist of the following members namely:
a. The minister-incharge of consumer a airs in the State Government who shall be its chairman.
b. Such member of other o cials or non-o cial members representing such interests as may be prescribed by
the State Government.

The State Council shall meet as and when necessary but not less than two meeting shall be held every year.

Objects of the State Council: (Sec. 8)


The objects of every State Council shall be to promote and protect within the State the rights of consumers laid
down in clauses (a) to (f) of Section 6.

Consumer Disputes Redressal Agencies (Sec. 9)


1. District Forums: established by State Government.
2. State Commission.
3. National Commission - established by Central Government.

Composition of the District Forums: (Sec. 10) Each District Forum consist of
a. A person who is, or has been or is quali ed to be a District Judge, who shall be its president.
b. Two other members, who shall be persons of ability, integrity, and standing and have adequate knowledge or
experiment of or law shown capacity in dealing with, problems relating to economics, law, commerce,
accountancy, industry, public a airs or administration, one of whom shall be a woman.

Every member of the District Forum shall hold o ce for action of ve years or up to the age of 65 years whichever
is earlier and shall not be eligible for re-appointment. The salary or honorarium and other allowances as may be
prescribed by the State Government.

Jurisdiction of the District Forum:


(Sec. 11) District Forums enjoy jurisdiction to entertain complaints where the value the goods or services and the
compensation, if any, claimed does not exceed Rs. 5 lakhs.

The Territorial Jurisdiction: For the purpose of complaints;


a. Complaint may be led at the place where the opposite party or each of the opposite parties actually or
voluntarily resides or carries on business or has a branch o ce or personally work for gain.
b. At the place where any of the opposite parties falls in the above category provided that in reference to others
either permission of the district forum is taken or they have acquiesced in the matter.
c. At the place where the cause of action wholly or in part arises.

State Commission: (Sec. 16)


The commission which have to be constituted at State levels have to consist of the following members:
a. A person who is or has been a Judge of a High Court. He will be the president of the commission.
b. Two other members, who shall be persons of ability, integrity and standing and have adequate knowledge or
experience of or have shown capacity in dealing with problems relating to economics, law, commerce,
accountancy, industry, public a airs or administration. One of them has to be women.

Jurisdiction (Sec. 17)


1. To certain complaints where the value of the goods or services and compensation, if any, claimed exceeds
Rs.5 lakhs but does not exceed Rs. 20 lakhs.
2. To entertain appeals against the orders of any District Forum within the State.
3. 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.

National Commission: (Sec. 20)


Composition - (Sec. 20)
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.
b. Four other members who shall be persons of ability, integrity and standing and have adequate knowledge or
experience of or have shown capacity in dealing with problems relating to economics, law, commerce,
accountancy, industry, public a airs or administration. One of them has to be women.

Jurisdiction: (Sec. 21)


1. (Original Jurisdiction): To entertain;
(i) Complaints where the value of the goods or services and compensation if any claimed exceed rupees 20
lakhs;
(ii) Appeals against the order of any State Commission.
 
2. (Appellate Jurisdiction)
To calls 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 exercise of its jurisdiction illegally or with material irregularity.
 
3. (Supervisory Jurisdiction). (Original, Appellate, Review and Revision).
Power and Procedure applicable to the National Commission: (Sec. 22) The National Commission shall, in the
disposal of any complaints or any proceedings before it have;
(a) The power of a Civil Court as speci ed in Sub-Section (4), (5) and (6) of Sec. 13.
(b) The power to issue an order to the opposite party directing him to do any one or more of the things
referred to in clauses (a) to (i) of Sub-Section 1 of Section 14. And follow such procedure as may be
prescribed by the Central Government.

Appeals (Sec. 23):


From any decision of the National Commission an appeal to the Supreme Court. Thirty day’s time from the date
of the order is allowed for the purpose. The Supreme Court may permit an appeal even after the expiry of the
prescribed period if there was a su cient cause for not being able to le an appeal within time.

Finality of Orders (Sec.24):


Where no appeal has been preferred, the order of a District Forum, the State Commission or National Commission
shall not admit a complaint unless it is led within two years from the date on which the cause of action has arisen.

Period of Limitation (Sec. 24-A (1)):


1. The District Forum, The State Commission or National Commission shall not admit a complaint unless it is
led within two years from the date on which the cause of action has arisen.
2. A complaint may be entertained after the period speci ed in Sub-Section (1), if the complainant satis es the
District Forum, State Commission and National Commission as the case may be that he had su cient cause
for not ling the complaint within such period.

Enforcement of Orders (Sec.25): By the forum, State and National Commission. Every orders made by the District
Forum, the State or National Commission may be enforced by the District Forum, State or National Commission as
the case may be, in the same manner as if it were a decree or order made by a Court in a suit pending therein and
it shall be careful for the District Forum, State or National Commission to send in the event of its liability to execute
it, such order to the Court within the local limits of whose jurisdiction;
a. In the case of an order against a company the registered o ce of the company is situated.
b. In the case of an order against any other person, the place where the person concerned voluntarily resides or
carries on business or personally works for gain, is situated and thereupon, the Court to which the order is so
sent, shall execute the order as if it were a decree or order sent to it for execution.

Dismissal of Frivolous or Vexations Complaints (Sec. 26):


Where a complaint instituted before the District Forum, the State or National Commission, as the case may be if
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 speci ed in the order.

Penalties (Sec. 27):


Where a trader or a person against whom a complaint is made fails or omits to comply with any order made by the
District Forum, State or National Commission as the case may be such trader or person 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 ne
which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both. 

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