The Consumer Protection

Act, 1986

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“A customer is the most important visitor on our
premises, he is not dependent on us. We are
dependent on him. He is not an interruption in
our work. He is the purpose of it. He is not an
outsider in our business. He is part of it. We
are not doing him a favor by serving him. He is
doing us a favor by giving us an opportunity to
do so.” Mahatma Gandhi

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Un-equal relationship between
consumer and producer

 Caveat emptor rule ( let the buyer beware) in

sale of goods act of 1930, sprout the root of
consumer interest protection.
 15th March 1962, Consumer bill of rights
proclamed by U.S. President in message to
Congress.
 United nations passed resolution of consumer
protection on 09th April 1985.
 In India 24th Dec 1986 was the enactment of
consumer protection act.

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Objective

An Act to provide for better protection

of the interests of consumers and for
that purpose to make provision for
the establishment of consumer
councils and other authorities for the
settlement of consum­ers' disputes
and for matters connected therewith.

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Rights of Consumer

 Right to be protected against the marketing of goods

and services hazardous to life and property.
 Right to be informed about the quality, quantity,
potency, purity, standard and price of goods or services.
 Right to be heard and assured that his interests will
receive due consideration at appropriate fora.
 Right to access to a variety of goods/services
 Right to seek redressal against an unfair or restrictive
trade practice or unscrupulous exploitation.
 Right to consumer education

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Who is consumer.
 "consumer" means any person who—
• buys any goods for a consideration,
• hires or avails of any services for a
consideration,
• “uses such goods” with the approval of
person who has bought such goods for
consideration.
• “is beneficiary of services” with the
approval of person who has hired the
services for consideration.
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Who is consumer…
 A Jeep was purchased to run it as taxi.
Whether the buyer of Jeep was a
consumer under the Act ?
 Rajasthan State Commission held that to
use Jeep as a taxi with the object to
earn profit was a commercial purpose,
and therefore, the buyer/user not a
consumer.
 ANY PERSON WHO OBTAINS THE
GOODS FOR RE-SALE OR COMMERCIAL
PURPOSES IS NOT A CONSUMER.
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Who is consumer…
 “P” an eye surgeon purchased machine from
“R” for the hospital run by him. The machine
was found defective. “R” contended that “P”
was not a consumer for commercial purpose.
 National Commission rejected this contention
and held that “P” is a medical practitioner, a
professional working by way of self
employment by using his knowledge and skill
to earn his livelihood ( Rampion
Pharmaceuticals Vs Dr. Pritam Shah, 1997).
 Person buying good for self employment is a
consumer.

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Who is consumer…
 “A” purchase the scooter which was in “B”s possession from the date of
purchase. “B” was using it and taking to seller for repair and services from
time to time. “B” had a complaint regarding the scooter. He filed complaint
against the seller.
 Delhi State Commission held that “B” was using with the approval of “A”, the
buyer, therefore he was consumer(Dinesh Bhagat Vs Bajaj Auto Ltd, 1992).

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 Consumer of services.

 "service" means service of any

description which is made available to
potential users and includes, but not
limited to, the provision of  facilities in
connection with banking, financing
insurance, transport, processing, supply of
electrical or other energy, …

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Consumer of services…

board or lodging or both, housing

construction, entertainment,
amusement or the purveying of news
or other information, but does not
include the rendering of any service
free of charge or under a contract of
personal service.

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Consumer of services…
 “T” was paying property tax for his house to
the local corporation. “T” raised consumer
dispute over the inadequate water supply.
 The National Commission held that it was not a
consumer dispute as water supply was made
by the corporation out of statutory duty and
not by virtue of payment of taxes (Mayor, CMC
Vs T. Chatterjee, 1994).
 SERVICES ARE HIRED OR AVAILED OF AND
CONSIDERATION MUST OF PAID OR PAYABLE.

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Consumer and Services.
 Claim of PF member under EPF & MP Act, 1952
not settled in time.
 Whether PF member is a consumer and
whether Employees’ Provident Fund Scheme is
service under Consumer Protection Act ?
 Supreme Court of India held on 14.12.1999
that PF member is a consumer and benefits
under EPF Scheme are services under the
Consumer Protection Act (RPFC Vs Shiv Kr.
Joshi)

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Consumer and Services...
 PF claim of State Govt. employee not settled by O/o
Accountant General.
 Whether State Govt. employee is consumer and whether O/o
Accountant general is providing service ?
 State Government employees are governed by the statutory
rules applicable to their respective service and for the purpose
of raising service dispute to go the State Administrative
Tribunal. Dispute raised by the complainants-respondents is
not ‘consumer dispute’ and they are not ‘consumers’ and
Accountant Generals are not running any service within the
meaning of the Consumer Protection Act, 1986.
 Comptroller and Auditor General of India and Anr. Vs.
Shivkant Shankar Naik, I (2003) CPJ 276 (NC)

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Consumer and Services...
 Whether the Petitioner, a pensioner and beneficiary of
the Central Government Health Scheme (C.G.H.S.),
would be a consumer under the provisions of the
Consumer Protection Act, 1986 (C.P. Act) for the
alleged deficiency in service by the C.G.H.S. Medical
Officer?
 Jagdish Kumar Bajpai vs Union of India, 2002. National
Commission held that the complaint is maintainable
under Consumer Protection Act.

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Consumer and Services...
 The applicant was insured with ESIC. The applicant’s
wife was admitted in ESI Dispensary at Sonipat for her
treatment for diabetes. The test done revealed that his
wife has been diagnosed incorrectly in the ESI
dispensary. The applicant filed a complaint under
consumer protection act.
 Whether the service rendered by an ESI hospital is
gratuitous or not and consequently whether it falls
within the ambit of “service”.
 Whether section read with section 75 of the ESIC ousts
the jurisdiction of the consumer forum.
 Kishori Lal Vs Chairman, ESIC

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What constitutes complaint.
 "complaint" means any allegation in
writing made by a complainant that
— 
• an unfair trade practice or a
restrictive trade practice has been
adopted by any trader or service
provider;
• the goods bought by him or agreed to
be bought by him; suffer from one or
more defects;
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What constitutes complaint…
• the services hired or availed of or
agreed to be hired or availed of by
him suffer from deficiency in any
respect;
• a trader or service provider, as the
case may be,  has charged for the
goods or for the service mentioned in
the complaint a price in excess of the
price.

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What constitutes complaint…

• goods which will be hazardous to life

and safety when used or being
offered for sale to the public.
• services which are hazardous or likely
to be hazardous to life and safety of
the public when used.

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What is consumer dispute.

 "consumer dispute" means a

dispute where the person against
whom a complaint has been made,
denies or disputes the allega­tions
contained in the complaint.

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Who can file a complaint.

 The consumer to whom the goods are sold or delivered, or

agreed to be sold or delivered, or the service has been
provided, or agreed to be provided’
 Any recognized consumer association, regardless of whether
the consumer is a member of such association or not.
 One or more consumer , where there are numerous consumer
having the same interest with permission of the district forum
on behalf of or for the benefit of all consumer so interested.
 The state or central govt. either its individual capacity or as a
representative of the interest of the consumer in general.

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 Structure of the Redressal
Machinery.

 Three-tier machinery for the redressal of grievances

‘Consumer Courts’.
 A Consumer Disputes Redressal Forum, popularly known as
the ‘District Forum’ in each District. (There can be more
than on District Forum in a district).(604)( Upto Rs. 20
lakh).
 A Consumer Disputes Redressal Commission known as the
‘State Commission’ in each state.(35)(Upto Rs. One crore)
 A National Consumer Disputes Redressal Commission known
as the ‘National Commission’ at the Centre. (One)(above Rs.
One crore)

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 Time frame within which a
complaint can be filed.
 Section 24A of the Act provides that a consumer
dispute can be filed within two years from the date
on which 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.
 Appeals are require to be filed within 30 days from
the date of receipt of the court's order.

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Relief available to Consumer.

(i) Removal of defects/ deficiencies from goods/ services

(ii) Replacement of goods/ Refund of the price paid
(iii) Compensation for any loss or injury suffered due to the
negligence of the opposite party.
(iv)Award for adequate costs.
(v) Instructions to the opposite party to discontinue the
unfair or restrictive trade practice.
(vi)Instruction to the opposite party not to offer hazardous
goods for sale.

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THANK YOU!!!

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