THE
CONSUMER PROTECTION (AMENDMENT) ACT, 2002
( 62 OF
2002 )
{ Passed by Rajya
Sabha on 11.3.2002,
by Lok Sabha
( with amendments) on 30.7.2002 and
by the Rajya
Sabha (the amendments made by the Lok Sabha) on 22.11.2002}
// PRESIDENT
OF INDIA ASSENTED ON 17TH DECEMBER, 2002 //
| Short title and commencement. |
THE CONSUMER PROTECTION (AMENDMENT) ACT,
2002 An Act further to amend the Consumer
Protection Act, 1986. BE it enacted by Parliament in the
Fifty-third Year of the Republic of India as follows:- 1.(1) This Act may be called the Consumer
Protection (Amendment) Act, 2002. Act, 2001. (2) It
shall come into force on such date as the Central Government may, by notification in the
Official Gazette, appoint. |
|
| Amendment of
section 2 |
2. In the
Consumer Protection Act, 1986 (hereinafter referred to as the principal Act), in section
2, in sub-section (1), - (1) in
clause (b), after sub-clause (iv), the following sub-clause shall be inserted, namely :- "(v)
in case of death of a consumer, his legal heir or representative;"; (2) in clause (c), - (i ) in
sub-clause (i ) for the words "any trader", the words "any trader or
service provider" shall be substituted; (ii) for sub-clauses (iv) and (v), the
following sub-clauses shall be substituted, namely:- "(iv)
a trader or the service provider, as the case may be, has charged for the goods or for the
services mentioned in the complaint a price in excess of the price,- ( a ) fixed
by or under any law for the time being in force; ( b
)displayed on the goods or any package containing such goods; ( c
)displayed on the price list exhibited by him by or under any law for the time being in
force; ( d )
agreed between the parties; (v) goods
which will be hazardous to life and safety when used are being offered for sale to the
public,- (A) in
contravention of any standards relating to (B) if the
trader could have known with due diligence that the goods so offered are unsafe to the
public; (vi)
services which are hazardous or likely to be hazardous to life and safety of the public
when used, are being offered by the service provider which such person could have known
with due diligence to be injurious to life and safety;"; (3) in clause (d), (a)in
sub-clause (ii) the following words shall be inserted at the end, namely:- "but
does not include a person who avails of such services for any commercial purposes". (b)for the
Explanation the following Explanation shall be substituted, namely:- Explanation
For the purposes of this clause, "commercial purpose" does not include
use by a person of goods bought and used by him and services availed by him exclusively
for the purposes of earning his livelihood by means of self-employment"; (4) for clause (j), the following
clause shall be substituted, namely:- (j)
"manufacturer" means a person who (i)
makes or manufactures any goods or part thereof; or (ii)does
not make or manufacture any goods but assembles parts thereof made or manufactured by
others;or (iii)puts
or causes to be put his own mark on any goods made or manufactured by any other
manufacturer;" (5) for clause (nn), the following
clauses shall be substituted, namely:--- (nn)
"Regulation" means the regulations made by the National Commission under this
Act; nnn)
"restrictive trade practice" means a trade practice which tends to bring about
manipulation of price or conditions of delivery or to affect flow of supplies in the
market relating to goods or services in such a manner as to impose on the consumers
unjustified costs or restrictions and shall include ( a )
delay beyond the period agreed to by a trader in supply of such goods or in providing the
services which has led or is likely to lead to rise in the price; ( b )
any trade practice which requires a consumer to buy, hire or avail of any goods or, as the
case may be, services as condition precedent to buying, hiring or availing other goods or
services,; in ( 6 ) in clause (o), for the words
"users and includes the provision of", the words "users and includes, but
not limited to, the provision of" shall be substituted; (7) after
clause(o), the following clause shall be inserted, namely:- "(oo)spurious
goods and services" mean such goods and services which are claimed to be genuine but
they are actually not so;" ( 8 ) in clause ( r), - (a) after
sub-clause (3), the following sub-clause shall be inserted, namely:- "(3A)
withholding from the participants of any scheme offering gifts, prizes or other items free
of charge, on its closure the information about final results of the scheme. Explanation.-
For the purposes of this sub-clause, the participants of a scheme shall be deemed to have
been informed of the final results of the scheme where such results are within a
reasonable time, published, prominently in the same newspapers in which the scheme was
originally advertised."; (b) after
sub-clause (5), the following sub-clause shall be inserted, namely:- " (6) manufacture of spurious goods or offering such goods for sale or adopts deceptive practices in the provision of services.". |
68 of 1986 |
| Amendment of
Section 4 |
3. In section 4 of the principal Act, in
sub-section (1), for the words " The Central Government may" , the words
"The Central Government shall" shall be substituted. |
|
| Amendment of
Section 7 |
4. In section
7 of the principal Act, - ( a ) in
sub-section (1), for the words " The State Government may" , the words "The
State Government shall" shall be substituted; ( b ) in
sub-section (1), after clause (b), the following clause shall be inserted, namely, "(c)
such number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government." |
|
| Insertion of new sections 8A and 8B The District Consumer Protection Council. Objects of the District Council |
5. After section 8 of the principal Act, the
following sections shall be
inserted, namely:- "
8A(1) The State Government shall establish for every district by notification a
council to be known as the District Consumer Protection Council with effect from such date
as it may specify in such notification. ( 2 ) The District Consumer Protection
Council (hereinafter referred to as the District Council) shall consist of the following
members, namely:- The
Collector of the district (by whatever name called), who shall be its Chairman, and Such
number of other official and non-official members representing such interests as may be
prescribed by the State Government. ( 3 )The District Council shall meet
as and when necessary but not less than two meetings shall be held every year. (4)
The District Council shall meet at such time and place within the district as the Chairman
may think fit and shall observe such procedure in regard to the transaction of its
business as may be prescribed by the State Government. 8B. The
objects of every District Council shall be to promote and protect within the district the
rights of the consumers laid down in clauses (a) to (f) of section 6.". |
|
| Amendment of
Section 10 |
6. In section 10 of the principal Act, - (i) in
sub-section (1) for clause (b), the following clause shall be substituted, namely:- "(b)
two other members one of whom shall be a woman, who shall have the following
qualifications, namely:- (i) be
not less than thirty-five years of age, (ii)
possess a bachelors degree from a recognised university, (iii) be
persons of ability, integrity and standing, and have adequate knowledge and experience of
at least ten years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration: Provided that a person shall be
disqualified for appointment as a member if he (a)
has been convicted and sentenced to imprisonment for an offence, which, in the opinion of
the State Government involves moral turpitude; or (b) is
an undischarged insolvent; or (c) is
of unsound mind and stands so declared by a competent court; or (d)
has been removed or dismissed from the service of the Government or a body corporate owned
or controlled by the Government; or (e)
has, in the opinion of the State Government, such financial or other interest as is likely
to affect prejudicially the discharge by him of his functions as a member; or (f)
has such other disqualification as may be prescribed by the State Government,"; ( ii )in sub-section (1A), the
following proviso shall be inserted, namely:- "Provided
that where the President of the State Commission is, by reason of absence or otherwise,
unable to act as Chairman of the Selection Committee, the State Government may refer the
matter to the Chief Justice of the High Court for nominating a sitting Judge of that High
Court to act as Chairman"; ( iii )for sub-section (2), the
following sub-section shall be substituted, namely:- "(2)
Every member of the District Forum shall hold office for a term of five years or upto the
age of sixty-five years, whichever is earlier. Provided
that a member shall be eligible for re-appointment for another term of five years or upto
the age of sixty-five years, whichever is earlier, subject to the condition that he
fulfills the qualifications and other conditions for appointment mentioned in clause (b)
of sub-section (1) and such re-appointment is also made on the basis of the recommendation
of the Selection Committee: Provided
further that a member may resign his office in writing under his hand addressed to the
State Government and on such resignation being accepted, his office shall become vacant
and may be filled by appointment of a person possessing any of the qualifications
mentioned in sub-section (1) in relation to the category of the member who is required to
be appointed under the provisions of sub-section (1A) in place of the person who has
resigned: Provided
also that a person appointed as the President or as a member, before the commencement of
the Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as
President or member, as the case may be, till the completion of his term.". ( iv ) in sub-section (3), the
following proviso shall be inserted, namely:- "Provided that the appointment of
a member on whole-time basis shall be made by the State Government on the recommendation
of the President of the State Commission taking into consideration such factors as may be
prescribed including the work load of the District Forum". |
|
| Amendment of Section 11 |
7. In section 11 of the Principal Act, in
sub-section (1), for the words "does not exceed rupees five lakhs", the words
"does not exceed rupees twenty lakhs" shall be substituted. |
|
| Substitution of new section for section 12. Manner in which complaint shall be made. |
8. For section 12 of the principal Act, the
following section shall be substituted, namely:- "12.(1) A complaint in relation to any
goods sold or delivered or agreed to be sold or delivered or any service provided or
agreed to be provided may be filed with a District Forum by (a) the consumer to whom such
goods are sold or delivered or agreed to be sold or delivered or such service provided or
agreed to be provided; (b)any recognised consumer
association whether the consumer to whom the goods sold or delivered or agreed to be sold
or delivered or service provided or agreed to be provided is a member of such association
or not; (c) one or more consumers,
where there are numerous consumers having the same interest, with the permission of the
District Forum, on behalf of, or for the benefit of, all consumers so interested; or (d) the Central Government or
the State Government, as the case may be, either in its individual capacity or as a
representative of interests of the consumers in general. (2) Every complaint filed under
sub-section (1) shall be accompanied with such amount of fee and payable in such manner as
may be prescribed. (3) On receipt of a complaint made
under sub-section (1), the District Forum may, by order, allow the complaint to be
proceeded with or rejected: Provided that a complaint shall not be
rejected under this section unless an opportunity of being heard has been given to the
complainant: Provided further that the
admissibility of the complaint shall ordinarily be decided within twenty-one days from the
date on which the complaint was received. (4) Where a complaint is allowed to be
proceeded with under sub-section (3), the District Forum may proceed with the complaint in
the manner provided under this Act: Provided that where a complaint has
been admitted by the District Forum, it shall not be transferred to any other court or
tribunal or any authority set up by or under any other law for the time being in force. Explanation.- For the purpose of this
section "recognised consumer association" means any voluntary consumer
association registered under the Companies Act, 1956 ( 1 of 1956) or any other law for the
time being in force". |
|
| Amendment of
Section 13 |
9. In section 13 of the principal Act, in
sub-section(1) ,- (a) in the marginal heading, for
the words "Procedure on receipt of complaint", the words "Procedure on
admission of complaint" shall be substituted; (b) in sub-section (1) (i) in the
opening portion, for the words "on receipt of a complaint", the words "on
admission of a complaint" shall be substituted; (ii)for clause (a), the following
clause shall be substituted, namely:- "(a)
refer a copy of the admitted complaint, within twenty-one days from the date of its
admission to the opposite party mentioned in the complaint directing him to give his
version of the case within a period of thirty days or such extended period not exceeding
fifteen days as may be granted by the District Forum,"; (c) in sub-section (2), (i)in the
opening portion, for the words "complaint received" the words "the
complaint admitted" shall be substituted; (ii) in clause (b), in sub-clause
(ii), for the words "on the basis of evidence" the words "ex parte on the
basis of evidence" shall be substituted; (iii) after clause (b), the following
clause shall be inserted, namely:- "(c)
where the complainant fails to appear on the date of hearing before the District Forum,
the District Forum may either dismiss the complaint for default or decide it on
merits."; (d) after sub-section (3), the
following sub-sections shall be inserted, namely:- "(3A)
Every complaint shall be heard as expeditiously as possible and endeavour shall be made to
decide the complaint within a period of three months from the date of receipt of notice by
opposite party where the complaint does not require analysis or testing of commodities and
within five months if it requires analysis or testing of commodities : Provided
that no adjournment shall be ordinarily granted by the District Forum unless sufficient
cause is shown and the reasons for grant of adjournment have been recorded in writing by
the Forum: Provided
further that the District Forum shall make such orders as to the costs occasioned by the
adjournment as may be provided in the regulations made under this Act. Provided
also that in the event of a complaint being disposed of after the period so specified, the
District Forum shall record in writing, the reasons for the same at the time of disposing
of the said complaint. (3B) Where
during the pendency of any proceeding before the District Forum, it appears to it
necessary, it may pass such interim order as is just and proper in the facts and
circumstances of the case."; (e)
after sub-section (6), the following sub-section shall be inserted, namely:- "(7)
In the event of death of a complainant who is a consumer or of the opposite party
against whom the complaint has been filed, the provisions of order XXII of the first
schedule to the Code of Civil Procedure,1908 ( 5 of 1908) shall apply subject |
|
| Amendment of
Section 14 |
10. In section 14 of the principal Act, - (i) in
sub-section (1), - (a) in clause (d) the following proviso shall be
inserted, namely :- "
Provided that the District Forum shall have the power to grant punitive damages in such
circumstances as it deems fit."; (b)in clause (e), for the words
"remove the defects" the words "remove the defects in goods" shall be
substituted; (c)after clause (h), the following
clauses shall be inserted, namely:- (ha)
to cease manufacture of hazardous goods and to desist from offering services which are
hazardous in nature; (hb)
to pay such sum as may be determined by it if it is of the opinion that loss or injury has
been suffered by a large number of consumers who are not identifiable conveniently: Provided
that the minimum amount of sum so payable shall not be less than five percent of the value
of such defective goods sold or service provided, as the case may be, to such consumers: Provided
further that the amount so obtained shall be credited in favour of such person and
utilized in such manner as may be prescribed"; (hc)
to issue corrective advertisement to neutralize the effect of misleading advertisement at
the cost of the opposite party responsible for issuing such misleading
advertisement,"; (ii)
in sub-section (2), for the proviso, the following proviso shall be substituted, namely:- "Provided
that where a member, for any reason, is unable to conduct a proceeding till it is
completed, the President and the other member shall continue the proceeding from the stage
at which it was last heard by the previous member,". |
|
| Amendment of
Section 15 |
11. In section 15 of the principal Act, after
the first proviso, the following proviso shall be inserted, namely:- "Provided
further that no appeal by a person, who is required to pay any amount in terms of an order
of the District Forum, shall be entertained by the State Commission unless the appellant
has deposited in the prescribed manner fifty percent of that amount or twenty five
thousand rupees, whichever is less.". |
|
| Amendment of
Section 16 |
12. In section 16 of the principal Act, - (a) in sub-section (1), for clause (b) and
proviso thereunder, the following clause shall be substituted, namely:- "(b) not less than two and not
more than such number of members, as may be prescribed, one of whom shall be a woman, who
shall have the following qualifications, namely:- (i) be
not less than thirty-five years of age, (ii)
possess a bachelors degree from a recognised university, and (iii)
be persons of ability, integrity and standing, and have adequate knowledge and experience
of at least ten years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration: Provided that not more than fifty per
cent of the members shall be from amongst persons having a judicial background. Explanation:- For the purposes of this
clause, the expression "persons having judicial background" shall mean persons
having knowledge and experience for at least a period of ten years as a presiding officer
at the district level court or any tribunal at equivalent level: Provided further that a person shall
be disqualified for appointment as a member if he - (a)
has been convicted and sentenced to imprisonment for an offence, which, in the opinion of
the State Government involves moral turpitude; or (b) is
an undischarged insolvent; or (c) is
of unsound mind and stands so declared by a competent court; or (d)
has been removed or dismissed from the service of the Government or a body corporate owned
or controlled by the Government; or (e)
has in the opinion of the State Government, such financial or other interest, as is likely
to affect prejudicially the discharge by him of his functions as a member; or (f)
has such other disqualification as may be prescribed by the State Government.,". ( b ) after sub-section (1) the
following sub-sections shall be inserted, namely:- "(1A)
Every appointment under sub-section (1) shall be made by the State Government on the
recommendation of a Selection Committee consisting of the following members; namely :- (i)
President of the State Commission --Chairman (ii)
Secretary of the Law Department of the State
. Member (iii)
Secretary incharge of the Department dealing
with Consumer Affairs in the State
Member; Provided
that where the President of the State Commission is, by reason of absence or otherwise,
unable to act as Chairman of the Selection Committee, the State Government may refer the
matter to the Chief Justice of the High Court for nominating a sitting Judge of that High
Court to act as Chairman. (1B) (i) The jurisdiction, powers and
authority of the State Commission may be exercised by Benches thereof. (ii) A Bench may be constituted by the
President with one or more members as the President may deem fit. (iii) if the members of a Bench differ
in opinion on any point, the points shall be decided according to the opinion of the
majority, if there is a majority, but if the Members are equally divided, they shall state
the point or points on which they differ, and make a reference to the President who shall
either hear the point or points himself or refer the case for hearing on such point or
points by one or more or the other members and such point or points shall be decided
according to the opinion of the majority of the members who have heard the case, including
those who first heard it."; (c) in sub-section (2), the following
proviso shall be inserted, namely:- "Provided
that the appointment of a member on whole-time basis shall be made by the State Government
on the recommendation of the President of the State Commission taking into consideration
such factors as may be prescribed including the work load of the State Commission."; (d) for sub-sections (3) and (4), the
following sub-sections shall be substituted, namely:- "(3) Every member of the State
Commission shall hold office for a term of five years or upto the age of sixty-seven
years, whichever is earlier: Provided that a member shall be
eligible for re-appointment for another term of five years or upto the age of sixty-seven
years, whichever is earlier, subject to the condition that he fulfills the qualifications
and other conditions for appointment mentioned in clause (b) of sub-section (1) and such
re-appointment is made on the basis of the recommendation of the Selection Committee: Provided further that a person
appointed as a President of the State Commission shall also be eligible for re-appointment
in the manner provided in clause (a) of sub-section (1) of this section. Provided also that a member may resign
his office in writing under his hand addressed to the State Government and on such
resignation being accepted, his office shall become vacant and may be filled by
appointment of a person possessing any of the qualifications mentioned in sub-section (1)
in relation to the category of the member who is required to be appointed under the
provisions of sub-section (1A) in place of the person who has resigned. (4) Notwithstanding anything contained
in sub-section (3), a person appointed as the President or as a member, before the
commencement of the Consumer Protection (Amendment) Act, 2002, shall continue to hold such
office as President or member, as the case may be, till the completion of his term.". |
|
| Amendment of
Section 17. |
13. Section 17 of the principal Act shall be
re-numbered as sub-section (1) and in sub-section (1) as so re-numbered (i ) in clause
(a), in sub-clause (i), for the words "exceeds rupees five lakhs but does not exceed
rupees twenty lakhs", the words "exceeds rupees twenty lakhs but does not exceed
rupees one crore" shall be substituted; (ii) after
sub-section (1) as so re-numbered, the following sub-section shall be inserted, namely:- "(2) A
complaint shall be instituted in a State Commission within the limits of whose
jurisdiction, - (a) the
opposite party or each of the opposite parties, where there are more than one, at the time
of the institution of the complaint, actually and voluntarily resides or carries on
business or has a branch office or personally works for gain; or (b) any of
the opposite parties, where there are more than one, at the time of the institution of the
complaint, actually and voluntarily resides, or carries on business or has a branch office
or personally works for gain, provided that in such case either the permission of the
State Commission is given or the opposite parties who do not reside or carry on business
or have a branch office or personally work for gain, as the case may be, acquiesce in such
institution; or (c) the
cause of action, wholly or in part, arises". |
|
| Insertion of new section 17A. Transfer of Cases: Circuit Benches. |
14. After section 17 of the principal Act, the
following sections shall be
inserted, namely:- "17A
On the application of the complainant or of its own motion the State Commission may, at
any stage of the proceeding, transfer any complaint pending before the District Forum to
another District Forum within the State if the interest of justice so requires. 17B. The
State Commission shall ordinarily function in the State Capital but may perform its
functions at such other place as the State Government, in consultation with the State
Commission, notify in the Official Gazette from time to time". |
|
| Omission of Section 18A. |
15. Section 18A of the principal Act shall be omitted. |
|
| Amendment of
Section 19. |
16. In section 19 of the principal Act, after
the first proviso the following proviso shall be inserted, namely:- "Provided further that no appeal by a
person, who is required to pay any amount in terms of an order of the State Commission,
shall be entertained by the National Commission unless the appellant has deposited in the
prescribed manner fifty percent of the amount or rupees thirty-five thousands, whichever
is less". |
|
| Insertion of new section 19A after section 19. Hearing of appeal |
17. After section 19 of the principal Act, the
following section shall be inserted, namely:- "19A. An appeal filed before the State
Commission or the National Commission shall be heard as expeditiously as possible and an
endeavour shall be made to finally dispose of the appeal within a period of ninety days
from the date of its admission: Provided
that no adjournment shall be ordinarily granted by the State Commission or the National
Commission, as the case may be, unless sufficient cause is shown and the reasons for grant
of adjournment have been recorded in writing by such commission: Provided
further that the State Commission or the National Commission, as the case may be, shall
make such orders as to the costs occasioned by the adjournment as may be provided in the
regulations made under this Act. Provided
also that in the event of an appeal being disposed of after the period so specified, the
State Commission or, the National Commission, as the case may be, shall record in writing
the reasons for the same at the time of disposing of the said appeal. |
|
| Amendment of
Section 20. |
18. In section 20 of the principal Act, - (i) in
sub-section (1), for clause (b), the following clause shall be substituted, namely:- "(b)
not less than four and not more than such number of members as may be prescribed one of
whom shall be a woman, who shall have the following qualifications, namely:- (i) be
not less than thrity-five years of age; (ii)
possess a bachelors degree from a recognized university; and (iii)
be persons of ability, integrity and standing and have adequate knowledge and experience
of at least ten years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration: Provided that not more than fifty
percent of the members shall be from amongst the persons having judicial background:- Explanation:- For the purposes of this
clause, the expression "persons having judicial background" shall mean persons
having knowledge and experience for at least a period of ten years as a presiding officer
at the district level court or any tribunal at equivalent level: Provided further that a person shall
be disqualified for appointment if he - (a)
has been convicted and sentenced to imprisonment for an offence, which, in the opinion of
the Central Government involves moral turpitude; or (b) is
an undischarged insolvent; or (c) is
of unsound mind and stands so declared by a competent court; or (d)
has been removed or dismissed from the service of the Government or a body corporate owned
or controlled by the Government; or (e)
has in the opinion of the Central Government such financial or other interest as is likely
to affect prejudicially the discharge by him of his functions as a member; or (f)
has such other disqualification as may be prescribed by the Central Government."; Provided also that every appointment
under this clause shall be made by the Central Government on the recommendation of a
selection committee consisting of the following, namely :- (a)a person whois a Judge of the
Supreme Court, -Chairman to be nominated by the Chief Justice
of India (b) the Secretary in the Department of
Legal - Member; Affairs in Government of India © Secretary of the Department dealing
with - Member.; consumer affairs in the Government of
India (ii) after
sub-section (1), the following sub-section shall be inserted, namely:- "(1A)
(i) The jurisdiction, powers and authority of the National Commission may be exercised by
Benches thereof. (ii) A
Bench may be constituted by the President with one or more members as the President may
deem fit. (iii) If
the Members of a Bench differ in opinion on any point, the points shall be decided
according to the opinion of the majority, if there is a majority, but if the members are
equally divided, they shall state the point or points on which they differ, and make a
reference to the President who shall either hear the point or points himself or refer the
case for hearing on such point or points by one or more or the other Members and such
point or points shall be decided according to the opinion of the majority of the Members
who have heard the case, including those who first heard it."; (iii) for
sub-sections (3) and (4), the following sub-sections shall be substituted, namely:- "(3) Every member of the National
Commission shall hold office for a term of five years or upto the age of seventy years,
whichever is earlier: Provided that a member shall be
eligible for re-appointment for another term of five years or upto the age of seventy
years, whichever is earlier, subject to the condition that he fulfills the qualifications
and other conditions for appointment mentioned in clause (b) of sub-section (1) and such
re-appointment is made on the basis of the recommendation of the Selection Committee: Provided further that a person
appointed as a President of the National Commission shall also be eligible for
re-appointment in the manner provided in clause (a) of sub-section (1): Provided also that a member may resign
his office in writing under his hand addressed to the Central Government and on such
resignation being accepted, his office shall become vacant and may be filled by
appointment of a person possessing any of the qualifications mentioned in sub-section (1)
in relation to the category of the member who is required to be appointed under the
provisions of sub-section (1A) in place of the person who has resigned. (4) Notwithstanding anything contained
in sub-section (3), a person appointed as a President or as a member before the
commencement of the Consumer Protection (Amendment) Act, 2002 shall continue to hold such
office as President or member as the case may be till the completion of his term". |
|
| Amendment of
Section 21. |
19. In section 21 of the principal Act, in
clause (a), in sub-clause (I), for the words "rupees twenty lakhs", the words
"rupees one crore" shall be substituted. |
|
| Substitution of new section for section 22. Power and procedure applicable to the National Commission. Power to set aside ex-parte orders. |
20. For section 22 of the principal Act, the
following sections shall be substituted, namely :-- " 22 (1) Provisions of sections
12, 13 and 14 and the rules made thereunder for the disposal of complaints by the District
Forum shall, with such modifications as may be considered necessary by the Commission, be
applicable to the disposal of disputes by the National Commission. (2) Without prejudice to the
provisions contained in sub-section (1), the National Commission shall have the power to
review any order made by it, when there is an error apparent on the face of record. 22A. Where
an order is passed by the National Commission ex parte against the opposite party or a
complainant, as the case may be, the aggrieved party may apply to the Commission to set
aside the said order in the interest of justice. |
|
| Transfer of
cases Circuit Benches Vacancy in the Office of the President |
22B. On the
application of the complainant or of its own motion, the National Commission may,
at any stage of the proceeding, in the interest of justice, transfer any complaint pending
before the District Forum of one State to a District Forum of another State or before one
State Commission to another State Commission . 22C. The National Commission shall
ordinarily function at New Delhi and perform its functions at such other place as the
Central Government in consultation with the National Commission may notify in the Official
Gazette from time to time. 22D. When the office of President of a
District Forum, State Commission, or of the National Commission, as the case may be, is
vacant or a person occupying such office is, by reason of absence or otherwise, unable to
perform the duties of his office, these shall be performed by the senior-most member of
the District Forum, State Commission or of the National Commission, as the case may be: Provided that where a retired Judge of
a High Court is a member of the National Commission, such member or where the number of
such members is more than one, the senior-most person among such members, shall preside
over the National Commission in the absence of the President of that Commission.". |
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| Amendment of
section 23. |
21. In section 23 of the principal Act after
the first proviso, the following proviso shall be inserted, namely:- "Provided further that no appeal by a
person who is required to pay any amount in terms of an order of the National Commission
shall be entertained by the Supreme Court unless that person has deposited in the
prescribed manner fifty percent of that amount or rupees fifty thousand whichever is
less". |
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| Substitution of section for section 25. Enforcement of orders of the District Forum, the State Commission or the National Commission. |
22. For section 25 of the principal Act, the
following section shall be substituted, namely:- "25. (1) Where an interim order made under
this Act, is not complied with the District Forum or the State Commission or the
National Commission, as the case may be, may order the property of the person, not
complying with such order to be attached. attached. (2) No attachment made under
sub-section (1) shall remain in force for more than three months at the end of which, if
the non-compliance continues, the property attached may be sold and out of the proceeds
thereof, the District Forum, or the State Commission or the National Commission may award
such damages as it thinks fit to the complainant and shall pay the balance, if any, to the
party entitled thereto. (3) Where any amount is due from any
person under an order made by a District Forum, State Commission or the National
Commission, as the case may be, the person entitled to the amount may make an application
to the District Forum, the State Commission or the National Commission, as the case may
be, and such District Forum or the State Commission or the National Commission may issue a
certificate for the said amount to the Collector of the district (by whatever name called)
and the Collector shall proceed to recover the amount in the same manner as arrears of
land revenue". |
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| Amendment of
section 27. |
23. In section 27 of the principal Act, - (a) proviso shall be omitted; (b) after the proviso so omitted, the
existing section shall be renumbered as sub-section (1) and after sub-section (1) so
renumbered, the following sub-sections shall be inserted, namely:- "(2)
Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the District
Forum or the State Commission or the National Commission, as the case may, shall have the
power of a Judicial Magistrate of the first class for the trial of offences under this
Act, and on such conferment of powers, the District Forum or the State Commission or the
National Commission, as the case may be, on whom the powers are so conferred, shall be
deemed to be a Judicial Magistrate of the first class for the purpose of the Code of
Criminal Procedure, 1973. (3) All
offences under this Act may be tried summarily by the District Forum or the State
Commission or the National Commission, as the case may be.". |
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| Appeal against order passed under section 27. |
24. After
section 27 of the principal Act, the following section shall be inserted, namely :- "27A.
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an appeal
under section 27, both on facts and on law, shall lie from - (a)
the order made by the District Forum to the State Commission ; (b)
the order made by the State Commission to the National Commission; and (c)
the order made by the National Commission to the Supreme Court. (2) Except as aforesaid, no appeal
shall lie to any court from any order of a District Forum or a State Commission or the
National Commission. (3) Every appeal under this section
shall be preferred within a period of thirty days from the date of an order of a District
Forum or a State Commission or, as the case may be, the National Commission : Provided that the State Commission or
the National Commission or the Supreme Court, as the case may be, may entertain an appeal
after the expiry of the said period of thirty days, if, it is satisfied that the appellant
had sufficient cause for not preferring the appeal within the period of thirty days. |
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| Insertion of new section 28A after section 28. Service of notice, etc. |
25. After section 28 of the principal Act, the
following section shall be inserted, namely:- "28A (1) All notices required by this Act
to be served shall be served in the manner hereinafter mentioned in sub-section (2). (2) The service of notices may be made
by delivering or transmitting a copy thereof by registered post acknowledgment due
addressed to opposite party against whom complaint is made or to the complainant by speed
post or by such courier service as are approved by the District Forum, the State
Commission or the National Commission, as the case may be, or by any other means of
transmission of documents (including FAX message). (3) When an acknowledgement or any
other receipt purporting to be signed by the opposite party or his agent or by the
complainant is received by the District Forum, the State Commission or the National
Commission, as the case may be, or postal article containing the notice is received back
by such District Forum, State Commission or the National Commission, with an endorsement
purporting to have been made by a postal employee or by any person authorized by the
courier service to the effect that the opposite party or his agent or complainant had
refused to take delivery of the postal article containing the notice or had refused to
accept the notice by any other means specified in sub-section (2) when tendered or
transmitted to him, District Forum or the State Commission or National Commission as the
case may be, shall declare that the notice had been duly served on the opposite party or
to the complainant. Provided that where the notice was
properly addressed, pre-paid and duly sent by registered post acknowledgement due, a
declaration referred to in this sub-section shall be made notwithstanding the fact that
the acknowledgement has been lost or mislaid, or for any other reason, has not been
received by the District Forum, State Commission or the National Commission, as the case
may be within thirty days from the date of issue of notice. (4) All notices required to be served
on an opposite party or to complainant shall be deemed to be sufficiently served, if
addressed in the case of the opposite party to the place where business or profession is
carried and in case of complainant, the place where such person actually and voluntarily
resides. |
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| Amendment of
section 29. |
26 In section 29 of the principal Act after
sub-section (2), the following sub-sections shall be inserted, namely:- "(3) If any difficulty arises in giving
effect to the provisions of the Consumer Protection (Amendment) Act, 2002, the Central
Government may, by order, do anything not inconsistent with such provisions for the
purpose of removing the difficulty: Provided that no such order shall be
made after the expiry of a period of two years from the commencement of the Consumer
Protection (Amendment) Act, 2002. ( 4 )
Every order made under sub-section (3) shall be laid before each House of
Parliament.". |
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| Substitution of new section for section 30. Power to make rules. |
27. For
section 30 of the principal Act, the following section shall be substituted, namely:- "30.(1)
The Central Government may, by notification, make rules for carrying out the provisions
contained in clause (a) of sub-section (1) of section 2, clause (b) of sub-section (2) of
section 4, sub-section (2) of section 5, sub-section ( 2) of section 12,clause (vi) of
sub-section (4) of section 13, clause (hb) of sub-section ( 1 ) of section 14, section 19,
clause (b) of sub-section (1) and sub-section (2) of section 20, Section 22 and section 23
of this Act. (2) The
State Government may, by notification, make rules for carrying out the provisions
contained in clause (b) of sub-section (2) and sub-section (4) of section 7, clause (b) of
sub-section (2) and sub-section (4) of section 8A, clause ( b ) of sub-section ( 1 ) and
sub-section ( 3 ) of section 10, clause (c) of sub-section (1) of section 13, clause (hb)
of sub-section (1) and sub-section (3) of section 14, section 15 and clause (b) of
sub-section (1) and sub-section (2) of section 16 of this Act.". |
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| Insertion of new section 30A after section 30. Power of the National Commission to make regulations. |
28. After section 30 of the principal
Act, the following section shall be inserted, namely:- "30A. (1) The National Commission
may, with the previous approval of the Central Government, by notification, make
regulations not inconsistent with this Act to provide for all matters for which provision
is necessary or expedient for the purpose of giving effect to the provisions of this Act. (2) In particular and without
prejudice to the generality of the foregoing power, such regulations may make provisions
for the cost of adjournment of any proceeding before the District Forum, the State
Commission or the National Commission, as the case may be which a party may be ordered to
pay". |
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| Substitution of new section for section 31. Rules and regulation to be laid before each House of Parliament. |
29. For section 31 of the principal Act, the
following section shall be substituted, namely:- "31(1) Every rule and every
regulation made under this Act shall be laid, as soon as may be after it is made, before
each House of Parliament, while it is in session, for a total period of thirty days which
may be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or regulation or both
Houses agree that the rule or regulation should not be made, the rule or regulation shall
thereafter have effect only in such modified form or be of no effect, as the case may be;
so, however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule or regulation. (2) Every rule made by a State
Government under this Act shall be laid as soon as may be after it is made, before the
State Legislature. |
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