About Consumer Act.
(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
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);
(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;
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.
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.
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 onecrore; 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 )
l9. 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 fornot 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 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. 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 - 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.
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