THE CONSUMER PROTECTION ACT, 1986
INTRODUCTION
The industrial revolution and the development in the
international trade and commerce has led to the vast expansion of business and
trade, as a result of which a variety of consumer goods have appeared in the
market to cater to the needs of the consumers and a host of services have been
made available to the consumers like insurance, transport, electricity,
housing, entertainment, finance and banking. A well organised
sector of manufacturers and traders with better knowledge of markets has come
into existence, thereby affecting the relationship between the traders and the
consumers making the principle of consumer sovereignty almost inapplicable. The
advertisements of goods and services in television, newspapers and magazines
influence the demand for the same by the consumers though there may be
manufacturing defects or imperfections or short comings in the quality,
quantity and the purity of the goods or there may be deficiency in the services
rendered. In addition, the production of the same item by many firms has led
the consumers, who have little time to make a selection, to think before they
can purchase the best. For the welfare of the public, the glut of adulterated
and sub-standard articles in the market have to be checked. In spite of various
provisions providing protection to the consumer and providing for stringent
action against adulterated and sub-standard articles in the different
enactments like Code of Civil Procedure, 1908, the Indian Contract Act, 1872,
the Sale of Goods Act, 1930, the Indian Penal Code, 1860, the Standards of
Weights and Measures Act, 1976 and the Motor Vehicles Act, 1988, very little
could be achieved in the field of Consumer Protection. Though the Monopolies
and Restrictive Trade Practices Act, 1969 arid the Prevention of Food
Adulteration Act, 1954 have provided relief to the consumers yet it became
necessary to protect the consumers from the exploitation and to save them from
adulterated and sub-standard goods and services and to safe guard the interests
of the consumers. In order to provide for better protection of the interests of
the consumer the Consumer Protection Bill, 1986 was introduced in the Lok Sabha on 5th December, 1986.
STATEMENT
OF OBJECTS AND REASONS
The Consumer Protection Bill, 1986
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.
2. 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;
(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;
(c) the
right to be assured, wherever possible, access to an authority of goods at
competitive prices;
(d) the
right to be heard and to be assured that consumers interests will receive due
consideration at appropriate forums;
(e) the
right to seek redressal against unfair trade practices or unscrupulous
exploitation of consumers; and
(f) right
to consumer education.
3. These objects are sought to be
promoted and protected by the Consumer Protection Council to be established at
the Central and State level.
4. To provide speedy and simple
redressal to consumer disputes, a quasi-judicial machinery is sought to be
setup at the district, State and Central levels. These quasi-judicial bodies
will observe the principles of natural justice and have been empowered to give
relief of a specific nature and to award, wherever appropriate, compensation to
consumers. Penalties for noncompliance of the orders given by the
quasi-judicial bodies have also been provided.
5. The Bill seeks to achieve the above
objects.
ACT
68 OF 1986
The Consumer Protection Bill, 1986 was
passed by both the Houses of Parliament and it received the assent of the
President on 24th December, 1986. It came on the Statutes Book as THE
CONSUMER PROTECTION ACT, 1986 (68 of 1986).
LIST
OF AMENDING ACTS
1. The Consumer Protection (Amendment) Act, 1991 (34 of 1991) (w.r.e.f. 15-6-1991).
2. The Consumer Protection (Amendment) Act, 1993 (50 of 1993) (w.r.e.f. 18-6-1993).
3. The Consumer Protection (Amendment) Act, 2002 (62 of 2002) (w.r.e.f. 15-3-2003).
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CONTENTS |
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THE
CONSUMER PROTECTION ACT, 1986 |
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CHAPTER – I PRELIMINARY |
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1. |
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2. |
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3. |
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CHAPTER – II CONSUMER PROTECTION COUNCILS |
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4. |
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5. |
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6. |
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7. |
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8. |
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8A. |
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CHAPTER – III CONSUMER DISPUTES REDRESSAL AGENCIES |
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9. |
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10. |
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11. |
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12. |
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13. |
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14. |
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15. |
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16. |
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17. |
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17A. |
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17B. |
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18. |
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19. |
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19A. |
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20. |
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21. |
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22. |
Power of and
procedure applicable to the National Commission |
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22A. |
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22B. |
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22C. |
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22D. |
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22E. |
Qualifications,
terms and conditions of service of President and Member |
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23. |
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24. |
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24A. |
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24B. |
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25. |
Enforcement of
orders of the District Forum, the State Commission or the National Commission |
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26. |
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27. |
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27A. |
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CHAPTER – IV MISCELLANEOUS |
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28. |
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28A. |
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29. |
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29A. |
Vacancies or
defects in appointment not to invalidate orders |
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30. |
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30A. |
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31. |
Rules and
regulations to be laid before each House of Parliament |
(After including the amendments made vide the Consumer
Protection (Amendment) Act, 2002 [62 of 2002] which was passed by Rajya Sabha on 11.4.2002, Lok
Sabha on 30.7.2002 {with some amendments} and again by Rajya
Sabha on 22.11.2002 and the President of India gave assent on 17.12.2002
and the notification was issue on 18.12.2002.The provisions of the Act are
being brought into force w.e.f. 15.3.2003.)
Amendments
are shown in bold & italic form
The Consumer Protection Act, 1986
(68 of 1986)
24th December; 1986
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.
BE it enacted by Parliament in the Thirty-seventh Year of
the Republic of India as follows:—
CONSUMER
DISPUTES REDRESSAL AGENCIES
CHAPTER
I
1. Short
title, extent, commencement and application.—(1 ) This Act may be called the Consumer Protection Act,
1986.
(2) It extends to the
whole of India except the State of Jammu and Kashmir.
(3) It shall come into
force on such date as the Central Government may, by notification, appoint and
different dates may be appointed for different States and for different
provisions of this Act.
(4) Save as otherwise
expressly provided by the Central Government by notification, this Act shall
apply to all goods and services.
2. Definitions. - (1) In this Act, unless the context otherwise requires,—
(a) "appropriate
laboratory" means a laboratory or organisation—
(i) recognised
by the Central Government;
(ii) recognised by a State Government, subject to such guidelines
as may be prescribed by the Central Government in this behalf; or
(iii) any such
laboratory or organisation established by or under
any law for the time being in force, which is maintained, financed or aided by
the Central Government or a State Government for carrying out analysis or test
of any goods with a view to determining whether such goods suffer from any
defect;
(aa) "branch office" means—
(i) any establishment described as a branch by the opposite
party; or
(ii) any establishment carrying on either the same or substantially
the same activity as that carried on by the head office of the
establishment;
(b) "complainant" means—
(i) a consumer; or
(ii) any voluntary consumer association registered under the
Companies Act, 1956 (1of 1956)or under any other law for the time being in
force; or
(iii) the Central Government or any State Government,
(iv) one or more consumers, where there are numerous consumers
having the same interest;
(v) in case of death of a consumer, his legal heir or
representative; who or which makes a complaint;
(c) "complaint" means any allegation in writing made by a
complainant that—
(i) an unfair trade practice or a restrictive trade practice has
been adopted by any trader or service provider;
(ii) the goods bought by him or agreed to be bought by him;
suffer from one or more defects;
(iii) the services hired or availed of or agreed to be hired or
availed of by him suffer from deficiency in any respect;
(iv) 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 –
(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 or being offered for sale to the public,--
(A) in contravention
of any standards relating to safety of such goods as required to be complied
with, by or under any law for the time being in force;
(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;”;
(d) "consumer" means any person who—
(i) 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
(ii) 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 but does not
include a person who avails of such services for any commercial purposes;
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;
(e) "consumer dispute" means a dispute where the person
against whom a complaint has been made, denies or disputes the allegations
contained in the complaint.
(f) "defect"
means any fault, imperfection or shortcoming in the quality, quantity, potency,
purity or standard which is required to be maintained by or under any law for
the time being in force under any contract, express or implied or as is claimed
by the trader in any manner whatsoever in relation to any goods;
(g) "deficiency"
means any fault, imperfection, shortcoming or inadequacy in the quality,
nature and manner of performance which is required to be maintained by or under
any law for the time being in force or has been undertaken to be performed by a
person in pursuance of a contract or otherwise in relation to any service;
(h) "District
Forum" means a Consumer
Disputes Redressal Forum established under clause (a) of section 9;
(i) "goods" means goods as defined in the Sale of Goods Act,
1930 (3 of 1930);
(g)
“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;
Explanation. — Where
a manufacturer dispatches any goods or part thereof to any branch office
maintained by him, such branch office shall not be deemed to be the
manufacturer even though the parts so dispatched to it are assembled at such
branch office and are sold or distributed from such branch office;
(jj) "member"
includes the President and a member of the National Commission or a State
Commission or a District Forum, as the case may be;
(k) "National
Commission" means the National Consumer Disputes Redressal Commission
established under clause (c) of section 9;
(l) "notification" means a notification published in the
Official Gazette;
(m) "person" includes,—
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every
other association of persons whether registered under the Societies
Registration Act, 1860 (21 of 1860) or not;
(n) "prescribed" means prescribed by rules made by the State
Government, or as the case may be, by the Central Government under this Act;
(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 of other
goods or services;
(o) "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, 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;
(oo) “spurious goods and
services” mean such goods and services which are claimed to be genuine but they
are actually not so;
(p) "State
Commission" means a Consumer Disputes Redressal Commission established in
a State under clause (b) of section 9;
(q)
"trader"
in relation to any goods means a person who sells or distributes any goods for
sale and includes the manufacturer thereof, and where such goods are sold or
distributed in package form, includes the packer thereof;
(r)
"unfair
trade practice" means a trade practice which, for the purpose of promoting
the sale, use or supply of any goods or for the provision of any service,
adopts any unfair method or unfair or deceptive practice including any of the
following practices, namely;—
(1) the practice of making any statement, whether orally or in
writing or by visible representation which,—
(i) falsely represents that the goods are of a particular
standard, quality, quantity, grade, composition, style or model;
(ii) falsely represents that the services are of a particular
standard, quality or grade;
(iii) falsely represents 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 such goods or services do
not have;
(v) represents
that the seller or the supplier has a sponsorship or approval or affiliation
which such seller or supplier does not have;
(vi) makes
a false or misleading representation concerning the need for, or the
usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the
performance, efficacy or length of life of a product or of any goods that is
not based on an adequate or proper test thereof;
Provided that where a defence
is raised to the effect that such warranty or guarantee is based on adequate or
proper test, the burden of proof of such defence shall lie on the person
raising such defence;
(viii)makes to the public a
representation in a form that purports to be—
(i) a warranty or guarantee of a product or of any goods or
services; or
(ii) a promise to
replace, maintain or repair an article or any part thereof or to repeat or
continue a service until it has achieved a specified result, if such purported
warranty or guarantee or promise is materially misleading or if there is no
reasonable prospect that such warranty, guarantee or promise will be carried
out;
(ix) materially
misleads the public concerning the price at which a product or like products or
goods or services, have been or are, ordinarily sold or provided, and, for this
purpose, a representation as to price shall be deemed to refer to the price at
which the product or goods or services has or have been sold by sellers or
provided by suppliers generally in the relevant market unless it is clearly
specified to be the price at which the product has been sold or services have
been provided by the person by whom or on whose behalf the representation is
made;
(x) gives
false or misleading facts disparaging the goods, services or trade of another
person.
Explanation. - For
the purposes of clause (1), a statement that is—
(a) expressed on an article offered or displayed for sale, or on
its wrapper or container; or
(b)
expressed
on anything attached to, inserted in, or accompanying, an article offered or
displayed for sale, or on anything on which the article is mounted for display
or sale; or
(c)
contained
in or on anything that is sold, sent, delivered, transmitted or in any other
manner whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public by, and
only by, the person who had caused the statement to be so expressed, made or
contained;
(2) permits the publication of any advertisement whether in
any newspaper or otherwise, for the sale or supply at a bargain price, of goods
or services that are not intended to be offered for sale or supply at the
bargain price, or for a period that is, and in quantities that are, reasonable,
having regard to the nature of the market in which the business is carried on,
the nature and size of business, and the nature of the advertisement.
Explanation .—For
the purpose of clause (2), "bargaining price" means—
(a)
a
price that is stated in any advertisement to be a bargain price, by reference
to an ordinary price or otherwise, or
(b)
a
price that a person who reads, hears or sees the advertisement, would
reasonably understand to be a bargain price having regard to the prices at
which the product advertised or like products are ordinarily sold;
(3) permits—
(a)
the
offering of gifts, prizes or other items with the intention of not providing
them as offered or creating impression that something is being given or offered
free of charge when it is fully or partly covered by the amount charged in the
transaction as a whole;
(b)
the
conduct of any contest, lottery, game of chance or skill, for the purpose of
promoting, directly or indirectly, the sale, use or supply of any product or
any business interest;
(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;
(4) permits the sale
or supply of goods intended to be used, or are of a kind likely to be used, by
consumers, knowing or having reason to believe that the goods do not comply
with the standards prescribed by competent authority relating to performance,
composition, contents, design, constructions, finishing or packaging as are
necessary to prevent or reduce the risk of injury to the person using the goods;
(5) permits the
hoarding or destruction of goods, or refuses to sell the goods or to make them
available for sale or to provide any service, if such hoarding or destruction
or refusal raises or tends to raise or is intended to raise, the cost of those or
other similar goods or services.
(6) manufacture of
spurious goods or offering such goods for sale or adopts deceptive
practices in the provision of services.
(2) Any
reference in this Act to any other Act or provision thereof which is not in
force in any area to which this Act applies shall be construed to have a
reference to the corresponding Act or provision thereof in force in such area.
3. Act
not in derogation of any other law.—The
provisions of this Act shall be in addition to and not in derogation of the
provisions of any other law for the time being in force.
CHAPTER II
4. The
Central Consumer Protection Council.—(1)
The Central Government shall, by notification, establish with
effect from such date as it may specify in such notification, a Council to be
known as the Central Consumer Protection Council (hereinafter referred to as
the Central Council).
(2) The Central
Council shall consist of the following members, namely:—
(a)
the
Minister in charge of the consumer affairs in the Central Government, who shall
be its Chairman, and
(b)
such
number of other official or non-official members representing such interests
as may be prescribed.
5. Procedure
for meetings of the Central Council.—(1)
The Central Council shall meet as and when necessary, but at least one meeting
of the Council shall be held every year.
(2) The Central
Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as
may be prescribed.
6. Objects
of the Central Council.—The
objects of the Central Council shall be to promote and protect the rights of
the consumers such as,—
(a)
the
right to be protected against the marketing of goods and services which are
hazardous to life and property;
(b)
the
right to be informed about the quality, quantity, potency, purity, standard and
price of goods or services, as the case may be so as to protect the consumer
against unfair trade practices;
(c)
the
right to be assured, wherever possible, access to a variety of goods and
services at competitive prices;
(d)
the
right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate forums;
(e)
the
right to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers; and
(f)
the
right to consumer education.
7. The
State Consumer Protection Councils.- (1) The State Government shall, by notification, establish
with effect from such date as it may specify in such notification, a Council to
be known as the Consumer Protection Council for.....................
(hereinafter referred to as the State Council).
(2) The State Council
shall consist of the following members, namely:—
(a)
the
Minister incharge of consumer affairs in the State
Government who shall be its Chairman;
(b)
such
number of other official or non-official members representing such interests as
may be prescribed by the State Government.
(c)
such
number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.
(3) The State Council
shall meet as and when necessary but not less than two meetings shall be held
every year.
(4) The State Council
shall meet at such time and place 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.
8. Objects
of the State Council. — The objects of every State Council shall be to promote and
protect within the State the rights of the consumers laid down in clauses (a)
to (f) of section 6.
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:—
(a)
the
Collector of the district (by whatever name called), who shall be its Chairman;
and
(b)
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.
CHAPTER III
CONSUMER DISPUTES REDRESSAL AGENCIES
9. Establishment
of Consumer Disputes Redressal Agencies. - There shall be established for the purposes of this Act,
the following agencies, namely:—
(a) a Consumer
Disputes Redressal Forum to be known as the "District Forum"
established by the State Government in each district of the State by
notification:
Provided that the State
Government may, if it deems fit, establish more than one District Forum in a
district.
(b) a Consumer
Disputes Redressal Commission to be known as the "State Commission"
established by the State Government in the State by notification; and
(c) a National
Consumer Disputes Redressal Commission established by the Central Government by
notification.
10. Composition
of the District Forum. —
(1) Each District Forum shall consist of,—
(a) a person who is,
or has been, or is qualified to be a District Judge, who shall be its
President;
(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
bachelor's 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
disqualifications as may be prescribed by the State Government;
(1A) Every appointment under sub-section (I) shall be made
by the State Government on the recommendation of a selection committee
consisting of the following, namely:—
(i) the President of the State Commission — Chairman.
(ii) Secretary, 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.
(2) Every member of
the District Forum shall hold office for a term of five years or up to 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 up to 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.
(3) The salary or honorarium and other allowances payable
to, and the other terms and conditions of service of the members of the
District Forum shall be such as may be prescribed by the State Government.
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.
11. Jurisdiction
of the District Forum.—(1)
Subject to the other provisions of this Act, the District Forum shall have
jurisdiction to entertain complaints where the value of the goods or services
and the compensation, if any, claimed ''does not exceed rupees twenty lakhs.
(2) A complaint shall
be instituted in a District Forum within the local 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 District Forum 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.
12. Manner
in which complaint shall be made.—(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 or any other law for the
time being in force”.
13. Procedure
on admission of complaint. — (1) The District Forum shall, on admission of a
complaint, if it relates to any goods,—
(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;
(b)
where
the opposite party on receipt of a complaint referred to him under clause (a)
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
in the manner specified in clauses (c) to (g);
(c)
where
the complaint alleges a defect in the goods which cannot be determined without
proper analysis or test of the goods, the District Forum shall obtain a sample
of the goods from the complainant, seal it and authenticate it in the manner
prescribed and refer the sample so sealed to the appropriate laboratory along
with a direction that such laboratory make an analysis or test, whichever may
be necessary, with a view to finding out whether such goods suffer from any
defect alleged in the complaint or from any other defect and to report its
findings thereon to the District Forum within a period of forty-five days of
the receipt of the reference or within such extended period as may be granted
by the District Forum;
(d)
before
any sample of the goods is referred to any appropriate laboratory under clause
(c), the District Forum may require the complainant to deposit to the credit of
the Forum such fees as may be specified, for payment to the appropriate
laboratory for carrying out the necessary analysis or test in relation to the
goods in question;
(e)
the
District Forum shall remit the amount deposited to its credit under clause (d)
to the appropriate laboratory to enable it to carry out the analysis or test
mentioned in clause (c) and on receipt of the report from the appropriate
laboratory, the District Forum shall forward a copy of the report along with
such remarks as the District Forum may feel appropriate to the opposite party;
(f)
if any
of the parties disputes the correctness of the findings of the appropriate
laboratory, or disputes the correctness of the methods of analysis or test
adopted by the appropriate laboratory, the District Forum shall require the
opposite party or the complainant to submit in writing his objections in
regard to the report made by the appropriate laboratory;
(g)
the
District Forum shall thereafter give a reasonable opportunity to the complainant
as well as the opposite party of being heard as to the correctness or otherwise
of the report made by the appropriate laboratory and also as to the objection
made in relation thereto under clause (/) and issue an appropriate order under
section 14.
(2) the District Forum
shall, if the complaint admitted by it under section 12 relates to
goods in respect of which the procedure specified in sub-section (1) cannot be
followed, or if the complaint relates to any services,—
(a)
refer
a copy of such complaint to the opposite party 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;
(b)
where
the opposite party, on receipt of a copy of the complaint, referred to him
under clause (a) 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 its notice by the complainant and the opposite party, where
the opposite party denies or disputes the allegations contained in the
complaint, or
(ii) ex parte
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.
(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.
(3) No proceedings
complying with the procedure laid down in subsections [1] and [2] shall be
called in question in any court on the ground that the principles of natural
justice have not been complied with.
(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.
(4) For the purposes
of this section, the District Forum shall have the same powers as are vested in
a civil court under Code of Civil Procedure, 1908 while trying a suit in
respect of the following matters, namely:—
(i) the summoning and
enforcing the attendance of any defendant or witness and examining the witness
on oath;
(ii) the discovery
and production of any document or other material object producible as evidence;
(iii) the reception of
evidence on affidavits;
(iv) the
requisitioning of the report of the concerned analysis or test from the
appropriate laboratory or from any other relevant source;
(v) issuing of
any commission for the examination of any witness, and
(vi) any other matter
which may be prescribed.
(5) Every proceeding
before the District Forum shall be deemed to be a judicial proceeding within
the meaning of sections 193 and 228 of the Indian Code (45 of 1860), and the
District Forum shall be deemed to be a civil court for the purposes of section
195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of
1974).
(6) Where the
complainant is a consumer referred to in sub-clause (iv) of clause (b) of
sub-section (1) of section 2, the provisions of rule 8 of Order I of the First
Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject
to the modification that every reference therein to a suit or decree shall be
construed as a reference to a complaint or the order of the District Forum
thereon.
(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
to the modification that every reference therein to the plaintiff and the
defendant shall be construed as reference to a complainant or the opposite
party, as the case may be.
14. Finding
of the District Forum. — (1) If, after the proceeding conducted under section 13,
the District Forum is satisfied that the goods complained against suffer from
any of the defects specified in the complaint or that any of the allegations
contained in the complaint about the services are proved, it shall issue an
order to the opposite party directing him to do one or more of the following
things, namely:—
(a)
to
remove the defect pointed out by the appropriate laboratory from the goods in
question;
(b)
to
replace the goods with new goods of similar description which shall be free
from any defect;
(c)
to
return to the complainant the price, or, as the case may be, the charges paid
by the complainant;
(d)
to pay
such amount as may be awarded by it as compensation to the consumer for any
loss or injury suffered by the consumer due to the negligence of the opposite
party.
Provided that the District Forum shall have the power to
grant punitive damages in such circumstances as it deems fit;
(e)
to
remove the defects in goods or deficiencies in the services in
question;
(f)
to
discontinue the unfair trade practice or the restrictive trade practice or not
to repeat it;
(g)
not to
offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;
(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 per cent. 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;
(i) to provide for
adequate costs to parties.
(2) Every proceeding
referred to in sub-section (1) shall be conducted by the President of the
District Forum and at least one member thereof sitting together:
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.
(2A) Every order made by the District Forum under
sub-section (1) shall be signed by its President and the member or members who
conducted the proceeding:
Provided that where the proceeding is conducted by the
President and one member and they differ on any point or points, they shall
state the point or points on which they differ and refer the same to the other
member for hearing on such point or points and the opinion of the majority
shall be the order of the District Forum.
(3) Subject to the
foregoing provisions, the procedure relating to the conduct of the meetings of
the District Forum, its sittings and other matters shall be such as may be
prescribed by the State Government.
15. Appeal. — Any
person aggrieved by an order made by the District Forum may prefer an appeal
against such order to the State Commission within a period of thirty days from
the date of the order, in such form and manner as may be prescribed:
Provided that the State Commission may entertain an appeal
after the expiry of the said period of thirty days if it is satisfied that
there was sufficient cause for not finding it within that period.
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 per cent. of that amount or twenty-five thousand
rupees, whichever is less:
16. Composition
of the State Commission. — (1) Each State Commission shall consist of—
(a) a person who is or
has been a Judge of a High Court, appointed by the State Government, who shall
be its President:
Provided that no appointment under this clause shall be made
except after consultation with the Chief Justice of the High Court;
(b) not less than two,
and not more than such number of members, as may be prescribed, and 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
bachelor's 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
disqualifications as may be prescribed by the State Government.
(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.
(2) The salary or
honorarium and other allowances payable to, and the other terms and conditions
of service of, the members of the State Commission shall be such as may be
prescribed by the State Government.
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.
(3) Every member of
the State Commission shall hold office for a term of five years or up to
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 up to 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.
17. Jurisdiction
of the State Commission. — (1) Subject to the other provisions of this
Act, the State Commission shall have jurisdiction—
(a) to entertain—
(i) complaints where
the value of the goods or services and compensation, if any, claimed exceeds
rupees twenty lakhs but does not exceed rupees one
crore; and
(ii) appeals against
the orders of any District Forum within the State; and
(b) to call for the
records and pass appropriate orders in any consumer dispute which is
pending before or has been decided by any District Forum within the State,
where it appears to the State Commission that such District Forum has exercised
a jurisdiction not vested in it by law, or has failed to exercise a
jurisdiction so vested or has acted in exercise of its jurisdiction illegally
or with material irregularity.
(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.
17A. Transfer of
cases. - 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. Circuit
Benches.-The State
Commission shall ordinarily function in the State Capital but may perform its
functions at such other place as the State Government may, in consultation with
the State Commission, notify in the Official Gazette, from time to time.
18. Procedure
applicable to State Commissions.—The 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 necessary, be applicable to the disposal of
disputes by the State Commission.
( 18A. Omitted )
19. Appeals.—Any
person aggrieved by an order made by the State Commission in exercise of its
powers conferred by sub-clause (i) of clause (a) of section 17 may prefer an
appeal against such order to the National Commission within a period of thirty
days from the date of the order in such form and manner as may be prescribed:
Provided that the National Commission may entertain an
appeal after the expiry of the said period of thirty days if it is satisfied
that there was sufficient cause for not filing it within that period.
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 per cent. of the amount or rupees thirty-five
thousand, whichever is less:
19A. Hearing of
Appeal - 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.
20. Composition
of the National Commission.—(1) The National Commission shall consist of—
(a)
a
person who is or has been a Judge of the Supreme Court, to be appointed by the
Central Government, who shall be its President;
Provided that no appointment under this clause shall be made
except after consultation with the Chief Justice of India;
(b) not less than
four, and not more than such number of members, as may be prescribed, and 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
bachelor's 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 the 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 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 disqualifications 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 who is a Judge of the Supreme Court, — Chairman;
to
be nominated by the Chief Justice of India
(b) the Secretary in the Department of Legal
Affairs — Member;
in the Government of India
(c) Secretary of the Department dealing with
consumer — Member.;
affairs in the Government of India
(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.
(2) The salary or
honorarium and other allowances payable to and the other terms and conditions
of service of the members of the National Commission shall be such as may
be prescribed by the Central Government.
(3) Every member of
the National Commission shall hold office for a term of five years or up to 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 up to 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.
21. Jurisdiction
of the National Commission. — Subject to the other provisions of this Act, the National
Commission shall have jurisdiction—
(a) to entertain—
(i) complaints where
the value of the goods or services and compensation, if any, claimed exceeds
rupees one crore; and
(ii) appeals against
the orders of any State Commission; and
(b) to call for
the records and pass appropriate orders in any consumer dispute which is
pending before or has been decided by any State Commission where it appears to the
National Commission that such State Commission has exercised a jurisdiction not
vested in it by law, or has failed to exercise a jurisdiction so vested, or has
acted in the exercise of its jurisdiction illegally or with material
irregularity.
22. Power of and
procedure applicable to the National Commission. — (1) The provisions of sections 12, 13 and 14 and the
rules made there under 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. Power to set
aside ex parte orders. - 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.
22B. Transfer of
cases - 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. Circuit
Benches [y1]- The
National Commission shall ordinarily function at New Delhi and perform its
functions at such other place as the Central Government may, in consultation
with the National Commission, notify in the Official Gazette, from time to
time.
22D. Vacancy in
the Office of the President - 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, the 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 President of that
Commission.
22E. Qualifications, terms and
conditions of service of President and Member - Notwithstanding anything contained in this Act, the
qualifications, appointment, term of office, salaries and allowances,
resignation, removal and the other terms and conditions of service of the
President and other members of the National Commission appointed after the
commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017),
shall be governed by the provisions of section 184 of that Act :
Provided that the President and member appointed before the
commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue
to be governed by the provisions of this Act, and the rules made thereunder as
if the provisions of section 184 of the Finance Act, 2017 had not come into
force.]
23. Appeal. — Any person, aggrieved by an order made by the National
Commission in exercise of its powers conferred by sub-clause (i) of clause (a)
of section 21, may prefer an appeal against such order of the Supreme Court
within a period of thirty days from the date of the order:
Provided that the Supreme Court may entertain an appeal
after the expiry of the said period of thirty days if it is satisfied that
there was sufficient cause for not filing it within that period.
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 per cent. of that amount or rupees fifty thousand,
whichever is less.
24. Finality of
orders. — Every order of a District Forum, the
State Commission or the National Commission shall, if no appeal has been
preferred against such order under the provisions of this Act, be final.
24A. Limitation period. - (l) The
District Forum, 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.
(2) Notwithstanding
anything contained in sub-section (1), a complaint may be entertained after the
period specified in sub-section (l), if the complainant satisfies the District
Forum, the State Commission or the National Commission, as the case may be,
that he had sufficient cause for not filing the complaint within such period:
Provided that no such complaint shall be entertained unless
the National Commission, the State Commission or the District Forum, as the
case may be, records its reasons for condoning such delay.
24B. Administrative
Control.—(1) The National Commission shall have
administrative control over all the State Commissions in the following matters,
namely:—
(i) calling for
periodical return regarding the institution, disposal pendency of cases;
(ii) issuance of
instructions regarding adoption of uniform procedure in the hearing of
matters, prior service of copies of documents produced by one party to the
opposite parties, furnishing of English translation of judgments written in any
language, speedy grant of copies of documents;
(iii) generally
overseeing the functioning of the State Commissions or the District Fora to
ensure that the objects and purposes of the Act are best served without in any
way interfering with their quasi-judicial freedom.
(2) The State
Commission shall have administrative control over all the District Fora within
its jurisdiction in all matters referred to in sub-section (1).
25. Enforcement
of orders of the District Forum, the State Commission or the National
Commission. —
(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.
(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.
26. Dismissal of
frivolous or vexatious complaints. — Where a complaint instituted before the District Forum,
the State Commission or as the case may be, the National Commission, 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 ten thousand rupees, as may be
specified in the order
27. Penalties. —
(1) Where a trader or a person against whom a complaint
is made or the complainant fails or omits to comply with any order made by the
District Forum, the State Commission or the National Commission, as the case
may be, such trader or person or complainant shall be punishable with imprisonment
for a term which shall not be less than one month but which may extend to three
years, or with fine which shall not be less than two thousands rupees but which
may extend to ten thousand rupees, or with both:
(2) Notwithstanding
anything contained in the Code of Criminal Procedure, 1973, (2 of 1974), the
District Forum or the State Commission or the National Commission, as the case
may be, 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 (2 of 1974).
(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.
27A. Appeal
against order passed under section 27 - (1) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974), 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.
CHAPTER IV
28. Protection
of action taken in good faith. —
No suit, prosecution or other legal proceedings shall lie against the members
of the District Forum, the State Commission or the National Commission or any
officer or person acting under the direction of the District Forum, the State
Commission or the National Commission for executing any order made by it or in
respect of anything which is in good faith done or intended to be done by such
member, officer or person under this Act or under any rule or order made
thereunder.
28A. Service of
notice, etc. - (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
acknowledgment 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, the District
Forum or the State Commission or the 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 acknowledgment due, a declaration
referred to in this sub-section shall be made notwithstanding the fact that the
acknowledgment has been lost or mislaid, or for any other reason, has not been
received by the District Forum, the 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.
29. Power to
remove difficulties.—(l)
If any difficulty arises in giving effect to the provisions of this Act, the
(Central Government may, by order in the official Gazette, make such provisions
not inconsistent with the provisions of this Act as appear to it to be
necessary or expedient for removing the difficulty :
Provided that no such order shall be made after the expiry
of a period of two years from the commencement of this Act
(2) Every order made
under this section shall, as soon as may be after it is made be laid before each
House of Parliament
(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.
29A. Vacancies or
defects in appointment not to invalidate orders.—No act or proceeding of the District Forum, the State
Commission or the National Commission shall be invalid by reason only of the
existence of any vacancy amongst its member or any defect in the constitution
thereof.
30. Power to
make rules. - (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.
30A. Power of the
National Commission to make regulations - (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.
31. Rules and
regulations to be laid before each House of Parliament - (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.
File:C:/ CAP-AMENDED
18.12.2002