Professional Documents
Culture Documents
Unit 5
Unit 5
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Introduction
Tremendous growth and increase in production of goods and
commodities leads to decline in quality. As the products of inferior
quality do not serve the purpose, the consumer resorts to approach
the Court for relief. In order to protect the interests of consumers
from the spurious goods, the Indian Parliament passed legislation
entitled "The Consumer Protection Act, 2019".
4) Consumer
According to Oxford Dictionary "A consumer is a
purchaser of goods of services”.
The expression Consumer in the common sense, means "all
of us may be called consumers, when we purchase some movable of
immovable property or hire services for various purposes”.
The term 'Consumer' in relation to goods means "any person
who might wish to be supplied with the goods for his own private use
of consumption”.
E.g. A purchases a T. V. for personal use at home, A is the
consumer of the T.V. Similarly, he purchases a Bournvita for
personal use, he is the consumer of the Bournvita.
Definition
According to Sec 2 (7) of the Consumer Protection Act,
2019, 'Consumer' may be Consumer of Goods or Consumer of
Services. Sec 2 (7) (i) defines Consumer of Goods while Sec 2 (7)
(ii) defines Consumer of Services.
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Decision / Judgment
The Supreme Court affirmed / upheld the decision of the
National Commission and dismissed the appeal. The Court
directed the complainant/appellant to file an action before the Civil
Court, allowing the benefit under Sec 14 of the Limitation Act, i.e.
the exclusion of the period for prosecuting the proceedings under
the Consumer Protection Act.
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Education-Examinations –
Chairman, Board of Examination, Madras Vs M.A. Kader
(1997);
It was held in the case that 'student' is not a consumer
under Sec 2(d) of the Act.
Hire of Service
The Act provides relief of consumer of services, who
suffers loss due to deficiency of service. According to the Act, the
term 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, boarding or
lodging or both, housing construction, entertainment, amusement
or the purveying of news or other information (Sec 2 (0)).
Lucknow Development Authority Vs A.K. Gupta;
The Supreme Court has considerably expanded the scope of
the word 'service' and included many facilities in it. The Court has
held that the term "services" under Sec 2(0) includes the 'House
building activities of the public authorities and the power of National
Commission/Forum under Secs 11, 17 & 21 is not limited to awarding
price for goods or service but it includes power to award
compensation for mental harassment.
In this case, the Respondent had applied for registration for
allotment of a flat constructed by Lucknow Development Authority. A
flat was allotted to him on April 26, 1988 and he deposited the entire
money on July 29, 1988 but the possession of the flat was not given to
him because according to the LDA, the construction was not
complete. He filed a complaint before the District Forum. The State
Commission directed the appellant on February 15, 1990 to hand over
possession of the flat after completing the work and if it was not
possible to complete
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Byford Vs S. S. Srivastava
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 New Delhi to New
York and back. S filed a complaint alleging that the ticket was not
delivered to him.
The National Commission held that S was not a consumer
in this context. He paid for the car and got it. B was not liable so
far as the contract of winning a lottery was concerned.
The Direct and Indirect taxes paid to the State by a citizen
is not payment for the services rendered.
Mayor, Calcutta Municipal Corporation Vs Tarapada Chatterjee
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.
1) False Representation;
2) False Offer of Bargain Price;
3) Free Gifts Offer and Prize Schemes;
4) Non-Compliance of Prescribed Standards;
5) Hoarding, Destruction, etc.
6) Manufacturing Spurious Goods
7) Not Issuing Bill, etc.
8) Refusing to Withdraw Defective Goods or to Discontinue
Deficient Service; and
9) Compromising Confidential Personal Information of the
Consumer.
1) False Representation
The practice of making any oral or written statement or
representation which –
(i) Falsely suggests that the goods are of a particular standard quality,
quantity, grade, composition, style or model;
(ii) Falsely suggests that the services are of a particular standard,
quantity or grade;
(iii) Falsely suggests 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
they do not have;
(v) Represents that the seller or the supplier has a sponsorship or
approval or affiliation which he does not have;
(vi) Makes a false or misleading representation concerning the need
for, or the usefulness of, any goods or services;
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Product Liability
Introduction
What does it take to prove a product liability claim? Just
because a fire or flood emanates from a product, does it necessarily
follow that the manufacturer is liable for the damages that result?
This article provides an overview of the standards for proving
a claim of Product Liability against the seller or manufacturer of the
product, including a discussion of some of the emerging trends in
product liability law.
Theories of Liability
A products liability claim normally involves injury or
damage caused by a defective product. Proving the claim usually
involves one or more of three basic theories of liability: negligence,
breach of contract/warranty, and strict liability. The first two theories
of liability require proof of a defect in the product. In a strict liability
claim, the
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Plaintiff must prove that the product was defective by virtue of being
“unreasonably dangerous” despite precautions taken by the
manufacturer in its manufacture or design.
Product
Sec 2 (33) - "Product" means any article or goods or
substance or raw material or any extended cycle of such product,
which may be in gaseous, liquid, or solid state possessing intrinsic
value which is capable of delivery either as wholly assembled or as a
component part and is produced for introduction to trade or
commerce, but does not include human tissues, blood, blood
products and organs;
Product Liability
Sec 2 (34) - "Product Liability" means the responsibility of
a product manufacturer or product seller, of any product or service,
to compensate for any harm caused to a consumer by such defective
product manufactured or sold or by deficiency in services relating
thereto;
Product Liability Action
Sec 2 (35) - "Product Liability Action" means a complaint
filed by a person before a District Commission or State Commission
or National Commission, as the case may be, for claiming
compensation for the harm caused to him;
Red Hill Hosiery Mill Vs Magnetek, Inc., 530 S.E.2d 321;
In the product liability context, the element of duty has
been more particularly described as a duty by the manufacturer “to
use reasonable care in the manufacturing process, including the
duty to make sure the product is free of any potentially dangerous
defect in manufacturing or design”.
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Complainant
Meaning
Generally, the person, whose legal right is affected infringed
has a right to move the Court. Such right is called "Locus Standi".
He may approach the Court by filing a complaint, which contains an
allegation in writing. The person (aggrieved) who files the complaint
is called "The Complainant".
According to Oxford Dictionary, the word "Complainant is
one who enters a legal complaint against another".
Municipal Council, Jaipur Vs Prabhu Narayan,
AIR 1968 Raj. 297;
The Rajasthan High Court has explained the word
‘complainant' means "one who makes an allegation or an
accusation on a charge in order to prosecute a person is a
complainant.
The Act provides that, not only a consumer, but also any
voluntary Consumer Association which is registered under the
Companies Act, 1956 can maintain a complaint.
Definition
Sec 2 (5) & Sec 35 of the Act defines "complainant" as
meaning –
(i) a consumer; or
(ii) any voluntary Consumer Association registered under the
Companies Act, 1956 or under any other appropriate law; or
(iii) the Central Government or any State Government, who or
which makes a complaint; or
(iv) one or more consumers; where there are numerous consumers
having the same interest.
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To seek relief, the complainant is required to approach
appropriate Forum/Commission. The burden of proof lies on the
complainant.
Who can make a complaint?
According to Sec 2 (5) & Sec 35 of the Consumer
Protection Act, 2019, the following persons can make a complaint –
1. a consumer;
2. any voluntary Consumer Association registered under the
Companies Act, 1956;
3. the Central or State Government; and
4. One or more consumers, where there are numerous consumers
having the same interest (i.e. common interest).
Complaint
Meaning
Complaint means "an allegation against a person writing as
to the commission of an offence". It is a written Becusation
containing the name, description of the complaint and the pposite
party to seek relief by furnishing the facts supporting the documents,
if any.
Definition
Sec 2 (6) of the Act defines the complaint as, any allegation
in writing made by a complaint regarding / against Unfair and
Restrictive Trade Practice, Defective Goods, Deficient Services,
Excess Prices and Hazardous Goods.
The Consumer Court do not have 'suu motu' power to in the
proceedings. The consumer has to initiate the proceedings by
lodging / filing a complaint against the opposite party.
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Limitation [Sec 69]
Sec 69 of the Consumer Protection Act, 2019 provides that
The District Commission, 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.
Initially, under the Consumer Protection Act, 1986, there
was no provision relating to limitation to make a complaint under
that Act. 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.
Example
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. Sec 69 (2) provides for condonation of delay in filing a
complaint. If the Consumer Commission 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 Commission must record the reasons for condonation of delay.
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Mukund Lal Ganguly Vs Dr. Abhijit Ghosh;
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 lodged 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.
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CONSUMER COMMISSIONS
The Consumer Protection Act provides for a three-tier
approach in resolving consumer disputes –
1) DCDRC: District Consumer Disputes Redressal Commission
(District Commission),
2) SCDRC: State Consumer Disputes Redressal Commission (State
Commission), and
3) NCDRC: National Consumer Disputes Redressal Commission
(National Commission).
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Establishment of the District Commission (Sec 28(1))
Sec 28(1) provides that every state Government shall
establish a District Consumer Disputes Redressal Commission called
‘District Commission’ for each district in the state. Discretion is
also given to the state Governments to establish more than one
District Commission for a district, if the state Government finds it
necessary. In such cases one will be called the Principal District
Commission and the others Additional District Commissions.
For example, if a district has three District Commissions,
one will be the Principal District Commission, and the others will be
I-Additional and II-Additional District Commissions, respectively.
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(1) –
(a) sitting judge of the Supreme Court;
(b) a former judge of the Supreme Court; or
(c) a person qualified to be a Judge of the Supreme Court; or
(2) –
(a) sitting Chief Justice of a High Court; or
(b) a former Chief Justice of a High Court; or
(3) has, for a period not less than three years, held office of Member
or Judicial Member; or
(4) (a) is a person of ability, integrity and standing, and
(b) having special knowledge of, and professional experience of
not less than twenty-five years in economics, business, commerce,
law, finance, accountancy, management, industry, public
affairs, administration or any other matter which in the opinion
of the Central Government, is useful to the National
Consumer Disputes Redressal Commission.
A Member of the National Commission shall be –
1. a person of ability, integrity and standing;
2. having special knowledge of, and professional experience of
not less than twenty years in economics, business, commerce,
law, finance, accountancy, management, industry, public
affairs, administration or any other matter which in the
opinion of the Central Government, is useful to the National
Consumer Disputes Redressal Commission.
There are two categories of members in a National
Commission –
1) Judicial Members, and 2) Non-Judicial Members.
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Introduction
The Motor Vehicles Act, 1988 is a Central Act (an Act of the
Parliament of India) which regulates all aspects of road transport
vehicles. The Act came into force from 1st July 1989. It replaced
Motor Vehicles Act, 1939 which earlier replaced the first such
enactment Motor Vehicles Act, 1914.
In view of heavy casualty all over India, by motor accidents
which are, in a majority of cases, arising out of violation of traffic
rules, in 2019, sweeping amendments were brought to the Motor
Vehicles Act. The amendment introduced new traffic offences, and
sharply enhanced the penalties under the Act. Further, to save the
lives of the victims, it has made special provisions. Good Samaritans
have been given protection against Police harassment.