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Consumer Dispute Redressal Agency
Consumer Dispute Redressal Agency
Consumer Dispute Redressal Agency
CLASS: FYLLB
DIV: B
ROLL NO: 75
SUBMISSION DATE:
_______________ _______________
Student Signature Faculty Signature
TABLE OF CONTENT
CONTENT Pg.no
1. Introduction 1
2. History 2
3. Definition 3
4. Objective 4
6. District Forum 6
6. State Commission 12
7. National Commission 14
9. Limitation Period 20
11. Penalties 21
I am using this opportunity to express my heartfelt gratitude to all those who have
contributed to the successful completion of this project. This endeavor has been a
journey of exploration, learning, and meaningful insights.
I extend my sincere gratitude to Dr. A.K. Singh, the esteemed Principal of Thakur
Ramnarayan College of Law. His profound knowledge, encouragement, and
commitment to academic excellence have been instrumental in shaping the quality
and direction of this research.
I would like to express my sincere thanks to Prof. Shruti Pandit, whose guidance
and support have been invaluable throughout the research process. Prof. Shruti
Pandit provided valuable insights, constructive feedback, and unwavering
encouragement, shaping the direction of this project.
I am also grateful to the authors of the legal texts, judgments, and scholarly articles
that formed the foundation of my project. Their contributions laid the groundwork
for a comprehensive understanding of consumer protection laws, redressal agencies
and their evolution in India.
Furthermore, I appreciate the assistance and cooperation received from the library
staff and online resources that facilitated access to relevant legal literature and case
law.
Consumer Dispute Redressal Agency
INTRODUCTION
Consumer Protection has its roots in the rich soil of our civilization. Human
values and ethical practices were given great importance in ancient India. The
need for consumer protection is recognized by law makers in India in ancient
times. It was very well realized that a consumer is prone to exploitation on the
part of providers of goods and services.
After that, India celebrates National Consumer Rights Day on 24th December
every year to spread awareness about consumer rights and responsibilities. This
day commemorates the day when Consumer Protection Act received the assent
of the President on 24th December 1986 and came into force.
Also, the inspiration behind World Consumer Rights Day was John F.
Kennedy, the former President of the United States. He was the first world leader
to address the issue of consumer rights in a special message to the US Congress
on 15 March,1962
Complaint filing has become more easier through E-Daakhil developed under the
Consumer Protection Act 2019 on Jago Grahak Jago site of the Ministry of
Consumer Affairs. Consumer dispute redressal agencies are bodies set up to
handle consumer complaints. They are set up by the state and the federal
government and have the right to enforce certain rules.2
HISTORY
The Consumer Protection Act has undergone many changes in 1991, 1993
followed by a significant commencement in December 2002
On July 20, 2020, the act was replaced by the Comsumer Protection Act 2019 to
widen the scope of consumer rights
The 2019 act has also introduced the concept of an unfair contract, this protects
consumers from contract terms that violate their rights.
2
https://vakilsearch.com/blog/role-of-consumer-dispute-redress-al-agencies/ (Last visited 20/11/23)
DEFINITION
As per sec. 2(d) of the Act, ‘consumer’ has been defined as any person who:
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
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.3
OBJECTIVE
The Consumer Protection Act seeks to provide for better protection of the
interests of consumers and for the purpose, to make provision for the
establishment of Consumer councils and other authorities for the settlement of
consumer disputes and for matter connected therewith.
It seeks, inter alia, to promote and protect the rights of consumers such
as-
a)
The right to be protected against marketing of goods which are hazardous
to life and property;5
4
The Consumer Protection Act,1986, § 2, 68, Acts of Parliament,1986.
5 https://ncdrc.nic.in/bare_acts/Consumer%20Protection%20Act-1986.html (Last visited 23/11/23)
b)
The right to be informed about the quality, quantity, potency, purity,
standard and price of goods to protect the consumer against unfair trade
practices;
d) The right to be heard and to be assured that consumers interests will receive
due consideration at appropriate forums;
The Act provides for the establishment of three tier Redressal Agencies for the
redressal of consumer disputes known as "Consumer Disputes Redressal
Agencies". Every agency is empowered to entertain complaints from the
consumers within its jurisdiction and to provide relief to the consumers.8
Section 9 of the Act provides for the establishment of the following agencies—
1. District Forum;
2. State Commission;
3. National Commission.
DISTRICT FORUM
810, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 489 (Central Law
Publications 2023)
The District Forum shall have jurisdiction to entertain complaints where the value
of services and compensation claimed does not exceed Rupees Fifty Lakhs.
Manner in which complaint shall be made
90, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 489 (Central Law
Publications 2023)
1010, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 489 (Central Law
Publications 2023)
11https://www.medindia.net/indian_health_act/consumer_protection_act_and_medical_profession_consume
Refer a copy of such complaint to the opposite party directing him to give
his version of the case within a period of 30 days or such extended period
not exceeding 15 days as may be granted by the District Forum.
Where the opposite party, on receipt of a copy of the complaint, 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 his notice by the complainant and
the opposite party, where the opposite denies or disputes the allegations contained
in the complaint; or
(ii) On the basis of evidence brought to its notice by the complainant where
the opposite party omits or fails to take any action to represent his case within the
time given by the Forum;
(iii) Where the complainant or his authorised agent fails to appear before
the District Forum on such day, the District Forum may in its discretion either12
12https://www.medindia.net/indian_health_act/consumer_protection_act_and_medical_profession_consume
Where the opposite party or its authorized agent fails to appear on the day of
hearing, the District Forum may decide the complaint ex-parte.
(iv) Where any party to a complaint to whom time has been granted fails
to produce his evidence or to cause the attendance of his witnesses or to perform
any other act necessary to the further progress of the complaint, for which time
has been allowed, the District Forum may notwithstanding such default: -
(a) If the parties are present, proceed to decide the complaint forthwith; or
(v) The District Forum may, on such terms as it may think fit at any stage,
adjourn the hearing of the complaint but not more than one adjournment shall
ordinarily be given and the complaint should be decided within 90 days from the
date of notice received by the opposite party where complaint does not require
analysis or testing of the goods and within 150 days if it requires analysis or
testing of the goods.13
13https://www.medindia.net/indian_health_act/consumer_protection_act_and_medical_profession_consume
If, after the proceedings, the District Forum is satisfied that any of the allegations
contained in the complaint about the services are proved, it shal issue an order to
the opposite party directing him to do one or more of the following things:
Any person aggrieved by an order made by the District Forum may appeal
against such an order to the State Commission within a period of 30 days from
the date of the order. The State Commission may entertain an appeal after 30 days
if it is satisfied that there was sufficient cause for not filing it within that period.15
14https://www.medindia.net/indian_health_act/consumer_protection_act_and_medical_profession_consume
Publications 2023)
Facts
Petitioner owns a Mahendra Jeep 1995 Model which is insured with the
respondent-United India Insurance Company Ltd. On 4-1-99, the Jeep was
involved in an accident, and the petitioner lodged a claim for the damage caused.
The surveyor assessed the net loss at Rs. 12,060/-. However, the petitioner
claimed the damage to the extent of Rs. 67,764/-. A complaint was filed before
the District Consumer Forum, which was resisted by the Insurance Company.
After considering the material on record, the District Forum found that the chassis
was not in good condition, which was the cause of the accident. Therefore, the
District Forum ordered the Insurance Company to pay the labour charge of
replacement of chassis amounting to Rs. 12,060/- and the cost of a new chassis
amounting to Rs. 28,440/-. The total amount awarded was Rs. 40,500/-, with
interest on the cost of the new chassis at the rate of 12% p.a. from 18-5-99. The
District Forum also awarded Rs. 1,000/- as costs of the proceedings.
Issue
Whether the appropriate remedy for the complaint is to raise the dispute for
adjudication of the Arbitrator in accordance with the terms and conditions of the
policy.16
16 Basant Kumar vs The United India Insurance Co, P-14, dated 2-5-2002
Decision
The Court below held that the appropriate remedy for the complaint is not to
raise the dispute for adjudication of the Arbitrator. The Insurance Company
deposited the amount as ordered by the District Consumer Forum. The order
passed under the Consumer Protection Act is final.17
STATE COMMISSION
It shall consist of -
1. a person who is or has been a Judge of a High Court, who shall be its President;
2. appeals against the orders of any District Forum within the state;
17 Basant Kumar vs The United India Insurance Co, P-14, dated 2-5-2002
18 10, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 502 (Central Law
Publications 2023)
19 10, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 504 (Central Law
Publications 2023)
The State Commission may, on such terms as it may think fit and at any stage,
adjourn the hearing of appeal, but not more than one adjournment shall ordinarily
be given and the appeal should be decided within 90 days from the first date of
hearing.
Any person aggrieved by an order made by the State Commission may appeal
against such order to the National Commission within a period of 30 days. The
National Commission may entertain an appeal after 30 days if it is satisfied that
there was sufficient cause for not filing it within that period.20
20https://www.medindia.net/indian_health_act/consumer_protection_act_and_medical_profession_consume
NATIONAL COMMISSION
1. a person who is or has been a Judge of the Supreme Court, who shall be its
President. (No appointment under this clause shall be made except after
consultation with the Chief Justice of India).
(a) To entertain
21 10, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 506 (Central Law
Publications 2023)
22 10, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 509 (Central Law
Publications 2023)
2. the name, description and address of the opposite party or parties, as the case
may be, so far as they can be ascertained;
3. the facts relating to the complaint and when and where it arose;
The remaining procedure and the procedure for hearing the appeal is similar to
that for the State Commission.23
2310, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 506 (Central Law
Publications 2023)
2410, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 514 (Central Law
Publications 2023)
Facts
Issue
Decision
The Supreme Court allowed the appeal and set aside the order of the National
Commission. The Court restored the order of the District Forum, which was
affirmed by the State Commission. The Court held that the appellant Society is
The Court further held that the National Commission should not have interfered
with the concurrent findings of fact recorded in the order of the State
Commission, particularly having regard to the nature of the jurisdiction conferred
upon it by Section 21 of the Consumer Protection Act, 1986. The Court awarded
costs of Rs. 50,000 to the appellant Society.26
All deprived and aggrieved consumers can access the portal to register
consumer complaints online from anywhere in India, pay the charge
electronically, and track the process.
♦ Salient Features -
25 Lourdes Society Snehanjali Girls Hostel and Another v/s M/s. H & R Johnson (India) Ltd. & Others, Civil
Appeal No. 7223 of 2016.
26
Lourdes Society Snehanjali Girls Hostel and Another v/s M/s. H & R Johnson (India) Ltd. & Others, Civil
Appeal No. 7223 of 2016.
♦ Major Milestones -
• 13 Circuit Benches
2022
2021
2020
Figure 1
Consumer can file a complaint for the redressal from anywhere. edaakhil
application also provides facility to pay the complaint fees online and uploading
the case documents by the consumer.
If you are a registered user on the Edaakhit online portal, a digital platform to
file consumer complaints29
The District Forum, the State Commission or the National Commission shall not
admit a complaint unless it is filed within 2 years from the date on which the
cause of action has arisen. In case there are sufficient grounds for not filing the
complaint within such period, extension may be granted.
It was held that the long silence on her part militates against bona fides of
her claim for compensation and Discovery Rule cannot be invoked for
recording a finding that cause of action accrued to her in November, 2002
when piece of guaze was discovered. Therefore, the complaint filed by her
in year 2004 would be barred by limitation.32
Where a complaint instituted before the District Forum, the State Commission or
the National Commission, as the case may be, 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 10,000 rupees, as may be specified in the order
31 10, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 514 (Central Law
Publications 2023)
32 10, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 514 (Central Law
Publications 2023)
3310, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 516 (Central Law
Publications 2023)
3410, Dr J.N Pandey, Law Ff Torts with Consumer Protection Act and Motor Vehicles Act 516 (Central Law
Publications 2023)
Conclusion:
The objectives of the Consumer Protection Act are to protect consumers from
hazardous goods, ensure the right to information, promote fair trade practices,
facilitate access to goods at competitive prices, provide avenues for redressal,
and encourage consumer education.
Suggestion:
while the Consumer Protection Act of 1986 has laid a strong foundation for
consumer rights in India, continuous efforts in education, procedural efficiency,
and adaptability are crucial for its continued success in the dynamic landscape
of consumer-business relations –
REFERENCES
Bibliography
Webliography