Consumer protection act,1986

Consumer Protection Act (CPA)

The CPA,1986 PROVIDES REDRESS TO CONSUMERS when goods purchased are defective or services provided are subject to some deficiency. It aims at helping a consumer in getting quicker redressal through specially established forums instead of going to a civil court.

 One need not engage a lawyer for this purpose. After the passing of Consumer Protection act,2002 every complaint must be accompanied by such amount of court fee as may be prescribed.

Redressal agencies and their pecuniary jurisdiction

FORUM District forum State commission AMOUNT upto Rs 20 lakhs above Rs 20 lakhs but below Rs 1 crore

National commission

above Rs 1 crore

Composition of district forum

President ( who has been or is qualified to become a district judge) Two other members one of whom shall be woman. Qualifications 1) Not less than 35 years of age 2) Possesses a bachelor degree

3) Is a person of ability and standing and has knowledge and experience of atleast 10 years in dealing with problems related to economics commerce, law , industry,public affairs.

Territorial jurisdiction
Where opposite party resides or carries on business Where cause of action arises Limitation perod 2 years

 Who is a consumer ? According to section2 (d) of CPA CONSUMER means a person who (i) buys goods for consideration but does not include a person who obtains such goods for resale or for commercial purpose.

Commercial purpose does not include use by consumer of goods bought and used by him exclusively for the purpose of earning his livelihood by means of self employment.

(ii) hires or avails any service for consideration but does not include rendering of service free of charge or under contract of personal service.

Examples
If a person purchases a car or a photostat machine or a sewing machine to be used by him exclusively and for the purpose of earning his livelihood by means of self employment it will not be deemed to be commercial purpose Such a person is considered a consumer under CPA

In one case a person purchased a computer to be used by his office staff for purpose of business. The person was a contractor by profession the court held that the computer was not being used to earn livelihood so the person was not a consumer under CPA.

SERVICE
CONSUMER means a person who hires or avails any service for consideration but does not include rendering of service free of charge or under contract of personal service.
.

Service rendered without consideration

If eye operation is done free of cost in a camp organised by NGO, a person availing such facility is not a consumer under CPA. Similarly free service in a govt. hospital is not covered under CPA.

Medical services
In IMA v. VP Shanta (AIR 1996 Supreme court ) the court held that medical services are covered under purview of CPA. A patient aggrieved by medical treatment can file a complaint as a consumer.

Other services covered under CPA

TELEPHONE RAILWAYS AIRLINES BANKING INSURANCE ELECTRICITY COURIER/ POSTAL