B.Com 1st Year The Consumer Protection Act 1986 Long Notes

B.Com 1st Year The Consumer Protection Act 1986 Long Notes :- This post is very useful for all the student. you will get full information Topic wise Chapter Wise Question Answer Salient features; Definition of consumer; Grievance redressal machinery Notes.

Q.1. Explain briefly the important features of the Consumer Protection Act, 1986.

Or Give the main features of Consumer Protection Act, 1986. (2014)

Ans. Important Features of the Consumer Protection Act, 1986: Consumer Protection Act is the most progressive Act of Social welfare and is referred to as Magna carta of consumer protection. It is a landmark event in the history of Acts in India. The important features of the act are as follows:

1. Principle of Compensation: This act is based on the principle of compensation wherein fair compensation to the aggrieved party is provided for. This act provides speedy redressal to consumer complainants. To redress the grievance, there is provision for setting up of Consumer Redressal Forum or three-tier judicial machinery.

(a) District Level: In every district.

(b) State Level: A commission at the state level.

(C) National Level: The national commission at the centre.

2. Consumer Councils: To promote voluntary consumer movement and to ensure involvement of consumers. Under this act, there is a provision for the Central and State Governments to setup consumer protection councils composing of both official and non-official members. The objectives of the council are:

(a) To promote the rights and interests of the consumers.

(b) To educate and protect them.

3. Goods and Services are Covered: It shall apply to all goods and classes of services except those which are specially exempted by notification by the Central Government.

4. Rights of Consumers: This act provides for the following rights to the consumers: (a) Rights to safety.

(b) Rights to be heard.

(d) Rights to seek redressal.

5. Convenient Procedure: The complainant presents his grievance in his own language and also furnishes the details of opposite party in a simple letter without being typed.

6. Filing of Complaint: The complaint can be filed by a consumer or an organisation being a society registered under the Societies Registration Act, or a company registered under the Companies Act, representing consumers or by the Central or State Government.

7. Effective Safeguard to Consumer: This act provides effective protection to the consumer from different types of exploitations, such as defective goods, adulteration, underweight, excessive price, unsatisfactory or deficient service and unfair trade practices

8 Class Action: This act allows for class action complaints by groups of consumer having same interest.

9. Check on Unfair Trade Practices: The complaint can be filed on ractices resulting in loss or damage, defect in the goods, deficiency in the services, actices: The complaint can be filed on account of any unfair trade excess of the prices fixed by or under any law or displayed on the goods/packets.

10. Inexpensive Redressal Machinery: This act redresses in a simple, cheap, and dynamic anner the grievance of the consumer in limited time.

11. Price: It provides for complaints against charging in excess or pr ile and are displayed on packaged commodities.

12. Social Welfare Legislation: It is highly progressive piece of social welfare legislation. This act has made consumer movement really powerful, broad-based and people-oriented.

Q.2. What are the objectives of the Consumer Protection Act, 1986?

Ans. Aims or Obiectives of the Consumer Protection Act. 1986: The main objective on the one Protection Act (According to Preamble to the Act) is to provide for better protection of the interest or consumers. Consumer councils and other authorities has been setup for set and other matters. The objectives of an act are as follows:

1. Better Protection of Interests of Consumers: This act seeks to provide for better protection of the interest of consumers and for the purpose, makes provision for the establishment of consumer councils and other authorities for the settlement of consumer disputes and for matters connected therewith (Preamble to Act).

2. Protection of Rights of Consumers: This act is intended to protect following rights of the consumers (under Section 6]

(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, standard and price of goods to protect against unfair trade practices.

(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.

(f) The right to consumer education.

(g) The right to healthy environment.

3. Consumer Protection Councils: The above objects are sought to be promoted and protected by the consumer protection councils established at the central and state levels.

4. Quasi-judicial Machinery for Speedy Redressal of Consumer Disputes: This act seeks to provide speedy and simple redressal to consumer disputes. For this purpose, there has been setup the quasi-judicial machinery at the district, state and central levels. These quasi-judicial bodies are supposed to observe the principles of natural justice and are empowered:

(a) To give relief of a specific nature,

(b) To award, whenever appropriate, compensation to consumer.

Q.3. What are the various rights of a consumer under the Consumer Protection Act?

Or Discuss the various rights of consumers recognised under the Consumer Protection Act, 1986 which are to be promoted and protected by the consumer protection councils.

Ans. The Consumer Act, 1986 is one of the benevolent pieces of legislation intended to a large body of consumers from exploitation. It aims to protect the interests of consumers by recongising them in the form of rights. The various right of consumers recognised under the act which are to be promoted and protected by the consumer protection councils ae as follows:

1. Right to Safety: To be protected against the sale of go hazardous to life and property.

2. Right to Information: To be informed about the quality, quantity, weight and the price of goods or services being paid for so that they are not cheated by unfair trade practices.

3. Right to Choose: To be assured, wherever possible, access to a

variety of goods and services at a competitive price.

4. Right to the Heard: To be heard and to be assured that their interest will receive due consideration at appropriate forums.

5. Right to Seek Redressal against Exploitation: To legal redressal against unfair or restrictive trade practices or exploitation.

6. Right to Consumer Education: To have access to consumer education. Unless the consumers are aware of their rights and remedies, protection of their interest shall remain a myth.

The Consumer Protection Act, 1986 was attended in 1991, 1993 and 2002 to make it more effective and purposeful. The Consumer Protection Act, 2002 appears to be a milestone. It has strengthened the procedures and has conferred more powers on the consumer disputes redressal agencies. The Amendment Act, 2002 is expected to greatly facilitate the working of the redressal agencies and help in achieving speedy settlement of disputes.

Q.4. Who is consumer under the Consumer Protection Act? Or Write a short note on consumer. (2015)

Ans. Definition of Consumer [Section 2(1)(D)]: A consumer’ means:

1. Any person who buys any goods for a consideration which has been paid or promised or partly paid or partly promised, or under any system of deferred payment, and includes any person who uses such goods with the approval of the buyer. It does not include a person who buys goods for resale or for any commercial purpose.

2. Any person who hires or avails 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 person who is a beneficiary of such services with the approval of the hirer. It does

not include a person who avails of such services for any commercial purpose.

The term ‘person’ includes a firm, Hindu undivided family, company, co-operative society and every other association of persons whether registered under the Societies Registration Act, 1860 or not.

It may be observed that the aforestated definition of the term ‘consumer’ is in two parts:

1. Consumer of Goods: The important features of the definition of consumer of goods’ may be stated as follows:

(a) Buying Goods for Consideration: There must be a contract of sale of goods between a seller and a buyer. The seller should be a ‘business seller’, i.e. a trader or manufacturer, and the buyer

should be ‘consumer buyer’, i.e. who buys goods for consumption or private use.

(b) User of Goods with the Approval of the Buyer: The term’consumer’also includes any person who uses the goods with the permission of the buyer though he is himself not a buyer. When a person buys goods, they may be used by his family members, relatives and friends. The actual user of the goods may come across the defects in goods. Thus, the law treats rightful user of goods as consumer.

(C) Goods should not be purchased for Resale or for any commercial Purpose: The term ‘consumer’ does not include a person who buys goods for ‘resale’ or for any commercial purpose.

(d) Person Buying Goods for Self-employment is a Consumer: When the Goods are bought and used by the buyer himself, exclusively for the purpose of earning his livelihood, by means of self-employment. Thus a person who purchases a taxi, or a sewing machine of a machine exclusively for the purpose of earn Tusively for the purpose of earning his livelihood by means of self-employment, will be a consumer

2. Consumer of Services: The second category of consumer is consumer of service’. A person is a consumer of service if he satisfies the following criteria:

(a) Hiring of Services for Consideration : There must be a transaction of hiring or availing of service for consideration. However, the payment of consideration need not necessarily be neulate. It may be paid later, if the service is provided without charging anything in return, the person availing the service is not a ‘consumer’.

(b) Beneficiary of Service is also a ‘Consumer’: A beneficiary of service, though not the hirer, himself, is also regarded as a ‘consumer’ provided the beneficial use is made with the approval of the person who hired the services. Thus, a nominee under an ‘insurance policy and an actual user of the subscriber’s telephone have been held to be consumer.

( c) Service should not be Availed for any Commercial Purpose: The term ‘consumer or service does not include a person who avails service for any commercial purpose. Thus, where a person hires the services of a goods carrier and it hire as public carrier with the object to earn profits, the said hiring of services of a goods carrier is for commercial purpose’ and the person is not a ‘consumer’ under the Act.

Q.5. Define the words ‘Consumer’ and ‘Consumer disputes’ under Consumer Protection Act, 1986. State whether a widow of a Life Insurance Policy-Holder is a consumer under this Act. (2014)

Or Define the terms used in Consumer Protection Act, 1986. Or Explain the following words:

1. Consumer,

2. Unfair trade practices,

3. Complaint,

4. Consumer dispute,

5. Deficiency,

6. Consumer exploitation. (2016)

Ans. Some special terms have been used under article of the act and their definitions are as follows:

1. Appropriate Laboratory: It refers to laboratory or organisation recognised by Central Government of States Government or any organisation setup under any law prevailing in the country.

2. Complainant: Any person who files complaint like a consumer, Central or State Government, any voluntary consumer association registered under Indian Companies Act, 1956.

3. Complaint: Any allegation in writing made by a complainant to secure help or relief available under this act like unfair or restrictive trade practices, etc.

4. Consumer: He may be consumer of goods who is a person buying any goods for a consideration and includes the user of goods. If an unemployed person earns his living by purchasing computer, taxi, etc. will be called ‘consumer of goods.’

Consumer of services is the person who hires services for rewards or makes use of it. It includes the persons who gets benefits from such services or makes use of them. The widow of a life insurance policy holder is also a consumer under this act.

5. Consumer Disputes: It is a dispute where the person against whom a complaint has been made, denies or disputes the allegations that are contained in the complaint.

6. Defect or Deficiency: Any fault, imperfection or shortcoming in the quality, quantity or standard that is required to be maintai

ired to be maintained by or under any law for the time being in force or under any contract in relation to goods or services.

7. Goods: All kinds of movable property including share, standing crops, etc. but does not include actionable claims and money,

8. Service: Description that are made available to prospective consumers and includes banking financial, insurance or other energy supply.

9. District Form: It is a district level legal machinery for the settlement of consumer disputes.

10. Manufacturer: A person who makes or manufactures any goods or parts thereof or assembles parts thereof made or manufactured by others.

11. Member: President and a member of the national commission or a state commission or a District Forum as the case may be.

12. Notification: Information published in the Gazette.

13. National Commission: National consumer disputes redressal commission established for the redresses of consumer disputes at the national level.

14. Person: it may be a registered or unregistered firm, a joint Hindu Family, a co-operative society or every other association of persons whether registered under Societies Registration Act, 1860 or not.

15. Prescribed: It means prescription by rules made by the State Government, or the Central Government under this act.

16. Restrictive Trade Practice: A trade practice that tends to bring about manipulation of price or conditions of delivery or to affect flow or supplies to the market related to goods or services such as to impose on the consumers unjustified costs or restrictions.

17. State Commission: A consumer disputes redressal commission established in a state under clause (b) of Section 9.

18. Trader: A person who sells or distributes any goods for sale and includes the manufacturer theory and where such goods are sold or distributed in package form includes the packer thereof.

19. Unfair Trade Practice: A trade practice which for the purpose of promoting the sale, use or supply, adopts any unfair method or deceptive practice and includes practices like misleading or false representation, advertisement of bargain price or balt, offering gifts or prizes with intention of not providing them, boarding or destructing of goods, manufacturing of spurious goods, non-compliance of product safety standards, etc.

20. Consumer Exploitation: Consumer exploitation means consumers are exploited because of poverty, illiteracy, lack of education, lack of information, etc.

Q.6. Write short notes on unfair trade practices. (2015)

Or What do you understand by unfair trade practices? What is the procedure to deal with a complaint made under the Consumer Protection Act?

Ans. Unfair Trade Practices: Section 2(1)(f) defines ‘Unfair Trade Practice as follows:

It 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 whích:

(a) Falsely represents that the goods are of a particular standard, quality, quantity, goods composition, style or mode.

(b) Falsely represents that the services are of a particular standard, quality or grade.

(d) Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have.

(e) Represents that the seller or the supplier has a sponsorship or approval or which such seller or supplier does not have.

(f) Makes a false or misleading representation concerning the need for, or the usefulness of any goods or services.

(g) Gives to the public any warranty or guarantee of the performance, length of life of a product or of any goods that is not based on an adequate or proper test

(h) Gives false or misleading facts disparaging the goods, s

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 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.

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 differed 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, games of chance or skill, for the purpose of promoting, directly or indirectly the sale, use or supply of any product or any business interest.

4. With holding 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.

5. 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 injury to the person using the goods.

6. Permits the boarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if such boarding or destruction or refusal raises or intends to raise or intended to raise, the cost of those or other similar goods or services.

7. Manufacture of spurious goods or offering such goods for sale or adopting deceptive practices in the provision of services.

Q.7. Define the term restrictive trade practice as used in the Consumer Protection Act, 1986.

Ans. Restrictive Trade Practices: Section 2(1)(nnn) defines ‘restrictive trade practice’ as follows:

“Restrictive trade practice’ means a trade practice which tends to bring about manipulation of price or its 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 restriction and shall include:

1. Delay beyond the period agreed to by a trader in supply of such goods or is providing the services which has led or is likely to lead to rise in the price.

2. 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.

The definition of the expression, restrictive trade practice reveals, inter-alia that where sale or purchase of a product or service is made conditional on the sale or purchase of one or more other products and services, it amounts to restrictive trade practice. Thus, where a cooking gas distributor insists his customers to buy a gas stove as a condition to give gas connection, it amounts to restrictive trade practice. However, where there is no such precondition and the buyer is free to take either product, no tying arrangement could be alleged even though the seller may offer both the products as a single unit at a composite price.

Defect (Section 2(190): ‘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 or under any contract, express or implied, or as is claimed by the trader in any manner whatsoever in relation to any goods.

This is an exhaustive definition, it means that the act recognises only those defects which are covered by the definition.

Deficiency: [Section 2(1)(9)]: 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.

Manufacturer [Section 2(1)(): ‘Manufacturer’ means a person who:

1. Makes or manufactures any goods or part thereof or

2. Does not make or manufacture any goods but assembles parts thereof made or manufactured by others, or

3. Puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer.

Trader (Section 2(1)(9)]: ‘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.

Generally speaking ‘trade’ means any person who carries on a trade. Under the Consumer Protection Act, ‘trader’ is a wider term which includes a manufacturer and a packer also.

Generally when a consumer finds defects in the goods, he sues the person from whom he bought the goods. Reason being privacy of contract. It can well be imagined that the purchaser may not even know who the manufacturer is. As such it is not the requirement of the act that along with the trader, manufacturer must also be made a party in the suit. Of course, if the defect is a manufacturing defect, the consumer may sue the manufacturer also along with the seller. This is an option with the consumer. Thus the manufacturer is a possible party, and not a necessary part.

Q.8. What is the need and importance of consumer protection?

Ans. The need and importance of consumer protection can be explained as:

1. Unfair and Deceptive Trade Practice: Such practices have to make producers/traders more accountable to consumers and hence becomes necessary for consumers to unite to face issues related to consumer protection.

2. Lengthy Legal Process: It is necessary to safeguard the interests of the consumers and for their convenience such legislative enactments be initiated as are simple and accessible.

3. Impact of Other Countries: Consumer protection measures are stringent and effective in countries like USA, European Union, Australia, etc.

4. Welfare State: India is a welfare state and it shall direct its policy towards securing that operation of the economic system does not result in the concentration of wealth.

5. Economic Development: The structural and institutional changes in the economy indicate that there has been globalisation of the economy. This has led to the increase in the wants of the consumers and hence, the need for safeguarding the interests of the consumers has assumed great importance.

6. Means of Transport and Communication: Rapid growth of means of transport and communica tion has brought the world consumers to one forum.

7. Role of Judicial System: Consumer Protection Act, 1986 has given vast powers to the Supreme Court for the protection of consumer rights, their safety and health. Its remedies are also now simpler, more accessible, quicker and less expensive.

8. Lok Adalats: They have become a part of speedy, effective and economical redressal system and this concept has now been extended to other areas as well.

9. Concept of Public Interest Litigation (PIL): For consumer protection, large number of petitions have been put before High Court and Supreme Court by way of public interest litigation. PIL is virtually consumer interest litigation that has helped a great deal in tackling for the causes of consumer protection.

10. Consumer’s Awareness: People are now widely aware of the rights as consumers with the spread of education. Consumers now expect better services for their durable goods and legislative measures available to them.

11. Consumer: There are consumer organisations performing number of the functions for the purpose of focussing the problems of consumers and finding their solutions. These functions can be accelerating consumer awareness, collecting samples of different products, filing complaints and unit petitions on behalf of the consumers, preventing hoarding and black marketing, educating consume to help themselves.

12. National Awards on Consumer Protection: Government of India has been conferring aw on individual and voluntary consumer organisations in respect of their contribution to the case of consumers.

Q.9. Discuss the functions of the central consumer protection council.

Ans. Objects or Functions of the Central Consumer Protection Council (Section 6]: Infact the obiects or functions of the central council are the various rights of cunsumers recognised under the act which are to be promoted and protected by the council. Thus, the act [Under Section 6] has enumerated some rights of consumers which need to be protected by the council. These rights of consumers are:

1. Right to Safety: This right has been recognised by Section 6(a) as, The right to be protected against the marketing of goods and services which are hazardous to life and property’. The rationale behind this provision is to ensure physical safety of the consumers. The law seeks to ensure that those responsible for bringing goods to the market, in particular manufacturers, distributors, retailers and the like should ensure that the goods are safe for the users.

2. Right to Information: Under Section 6(b), this right has been recognised as, ‘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! Consumers suffer much on the price front as the prices often printed or tagged in the product are misleading and no price control is there except with respect to essential commodities. Advertisements also often mislead the consumers.

3. Right to Choose: This right has been recognised by Section 6(c) as, ‘The right to be assured, whenever possible, access to a variety of goods and services at competitive prices. Fair and effective competition must be encouraged so as to provide consumers with maximum information about the wide variety of competing goods available in the market. Shoppers or buyers guide should be made available to the consumers by the Government or Business organisations to protect this right of consumers.

4. Right to be Heard: This right is ensured by Section 6(d) as, ‘The right to be heard and to be assured that consumers’ interests will receive due consideration at appropriate forums’. The Consumer Protection Act 1986 has well taken care of this right by providing three stages, redressal machinery to the consumers, namely, district forum, state commission and national commission. Every consumer has a right to file complaint and be heard in the context. Further, with a view to provide better protection of this right, various public and private sectors undertakings have provided consumer Ombudsman to provide redressal to consumer complaints outside the courts.

5. Right Against Exploitation: This right is guaranteed under Section 6(e) of the Act as, “The right to seek redressal against unfair ainst unfair trade practices or restrictive trade practices or unscript exploitation of sumers are exploited, adequate measures must be made available.The act has thus consumers’. When consumers are exploited, exploitation of consumers by invoking the jurisdiction of consumer forums in cases ensured to prevent exploitation involving unfair trade practices and restrictive trade practices.

6. Right to Education: This right has been recognised under Section 6(1) of the Act, as, ‘The right to 6. Right to Education: This right Consumer education. The right to consumer education is a right which ensures that the consumers are informed about the practices

the practices prevalent in the market, their rights and the remedies available to them.

Q.10. Explain the Jurisdiction of the consumer disputes redressal forum.

Or Explain the consumer dispute redressal machinery for the dispute redressal of consumer grievances.

Ans. Consumer Disputes Redressal Forum/Agencies:

isputes Redressal Forum Agencies: The Consumer Protection Act, 190, provides for a three-tier remedial machinery for speedy redressal of consumer grievances. disputes. According to section 9, there shall be established for the purposes of this Act, the following agencies namely.

1. Consumer Disputes Redressal Forum to be known as the ‘District Forum. It is to be established to the State Government in each district of the state by houndation may, if it deems fit. establish more than one District Forum in a district.

2. State Consumer Disputes Redressal Commission to be known as ‘State commission. This is to be

established by the Central Government in the state by notification.

3. National Consumer Disputes Redressal commission to be known as ‘National Commission’. This is to be established by the Central Government by notification.

These forums have not taken away the jurisdiction of the Civil co alternative remedy Their prime obiective is to relieve the conventional courts of their burden which is ever increasing and delaying the disposal of suits due to technicalities.

These agencies are Quasi-Judicial bodies. They are manned by qualified persons and have been vested with considerable powers. They are required to assign reasons for their conclusions. Obrigation to give reasons not only introduces clarity but it also excludes, or at least minimises, the chances of arbitrariness.

Q.11. What is the jurisdiction of a district consumer forum?

Or Explain the jurisdiction of the consumer disputes redressal forum.

Ans. Jurisdiction of the District Consumer Forum: The term jurisdiction may be defined as authority or legal power to hear and decide the cases. Thus a court may adjudicate only those matters which fall under its jurisdiction. The question of jurisdiction has to be considered with reference to the value, place and the nature of subject-matter. For example; Where X and Y reside in Bombay and they have some disputes, their disputes may be subjected to the jurisdiction of the Bombay courts, only courts of any other place cannot adjudicate the issue.

Pecuniary Jurisdiction [Section 11(1)]: The District Forum shall have jurisdiction to entertain complaints where the value of goods or services and the compensation, if any, claimed does not exceed 20 lakhs. In Farook Haji Ismail vs Gavabhai Bhesania, the Gujarat High Court held that the pecuniary jurisdiction depends upon the amount of relief claimed and not upon the value of the subject-matter, nor upon the relief allowed by the Forum.

Thus, the District Forum entertains the cases where the value of claim is upon 20 lakhs. Where a claim exceeds this limit, the matter is beyond the jurisdiction of the Forum.

Territorial Jurisdiction [Section 11(2)]: A complaint shall be instituted in a District Forum within the local limits of those jurisdiction.

1. 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

2. Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually or voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided the other parties not so residing or working agrees or the

District Forum gives permission in this regard, or

3. The cause of action, wholly or in part, arises. It may be recalled that a limitation period has also been prescribed under Section 24-A. Accordingly, a complaint can only be lodged within two years from the date on which the cause of action has arisen.

Q.12. What procedure is followed by it after receiving a complaint?

Or How is a consumer’s complaint entertained and disposed of under the Consumer Protection Act, 1986?

‘Ans. Manner in Which Complaint shall be Made Section 121: Section 12(1) lists the persons who can file a complaint

Section 12(2), (3), (4) elaborates the manner in which complaint shall be made. It provides that:

Every complaint filed with a District Forum shall be accompanied by a fee, as specified in the given below, in the form of crossed Demand Draft drawn on nationalised bank or through a crossed Indian postal order drawn in favour of the Registrar of the state commission and payable at the respective place where the state commission is situated. The concerned District Forum shall deposit the amount of fee so received in the State Government Receipt Account.

S.No.	Value of goods or services and the compensation claimed	Amount of fee payable
1.	Upto Rs 1 lakh	Rs. 100
2.	Rs. 1 lakh and above but less than Rs, 5 lakh	Rs. 200
3.	Rs. 5 lakh and above but less than Rs. 10 lakh	Rs. 400
4.	Rs. 10 lakh above but less than Rs. 20 lakh	Rs. 500

2. On receipt of a complaint, the District Forum may, by order, admit the complaint or reject the same. However, a complaint shall not be rejected unless an opportunity of being heard has been given to the complaint. The admissibility of the complaint shall ordinarily be decided within 21 days from the date on which the complaint was received.

3. Where a complaint is admitted, the District Forum shall follow the procedure prescribed in Section 13.

4. Once a complaint is admitted by the District Forum. It shall not be transferred to any other court or tribunal set up under any other law.

Q.13. What is the composition of the national consumer disputes redressal commission?

Or Write short note on national commission.

Ans. Composition of the National Commission: Section 20 elaborates upon the composition of national commission. It provides that the national commission shall consist of:

1. A person who is or has been the Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President. But not such appointment shall be made except after consultation with the Chief Justice of India.

2. Atleast four other members or such higher number of members as may be prescribed and one of whom shall be a woman, The provisions as to

The provisions as to the qualifications and disqualifications of the members of national commission are similar to those discussed under the preceding centre heading ‘State commission:

Anointing Authority: The appointment of members of the national commission is made by the Central Government on the recommendation of a selection committee consisting of following:

1. A person who is a Judge of the Supreme court, to be nominated by the Chief Justice of India Chairman.

2. The secretary in the Department of Legal Affairs in the Government of India-Member.

3. Secretary of the Department dealing with Consumer Affairs in the Government of India Member.

Term of Office [Section 20(3)]: Every member of the national commission shall hold office for a term of 5 years or upto the age of 70 years, whichever is earlier. Howeer, he shall be eligible for re-appointment subject to similar conditions as stated here in before. Further, a person appointed as president of the national commission shall also be eligible for re-appointment.

Q.14. Discuss the important provisions and jurisdiction regarding the national consumer commission.

Ans. Provisions and Jurisdiction of National Commission

1. Pecuniary Jurisdiction (Section 21(a)(i)): The national commission shall have Jurisdiction to entertain complaints where the value of goods or services and compensation, if any claimed exceeds 1 crore.

Since, national commission is the highest level of Consumer Forums, it entertains all the cases where the value of claim is more than 1 crore.

2. Territorial Jurisdiction: The territorial Jurisdiction of the national commission is followed in the whole of India except the state of Jammu and Kashmir.

3. Appellate Jurisdiction [Section 21(a)(ii)]: The national commission has jurisdiction to entertain appeals against the order of any state commission within 30 days from the date of service of the order to the appellant.

4. Revisional Jurisdiction [Section 2(b)]: The national commission has power 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 is of the view that the state commission:

(a) has exercised a jurisdiction/power not vested in it by law, or

(b) has failed to exercise a power which was vested in it, or

Such revisional power may be exercised by the national commission either on its own or on the petition of a party.

Q.15. Define the consumer forums.

Ans. Consumer Forums: For the purpose of adjudicating a consumer dispute, Section 13(4) has vested the consumers namely district forum, state commission and national commission, with certain powers of a civil court. Apart from these powers, the Central Government has provided some additional powers to them under Rule 10 of the Consumer Protection Rules 1987. Finally, Section 14(1) has given them the power to issue orders.

Powers Similar to those of Civil Court (Section 13(4)]: The consumer forums are vested with the powers of a civil court, while trying a suit, in respect of the following matters:

1. Summoning and enforcing the attendance of any defendant or witness and examining the witness on oath.

2. Discovery and production of any document or other material object producible as evidence.

3. Receiving of evidence on affidavits.

4. Requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source.

5. Issuing of any commission for the examination of any witness.

6. Any other matter which may be prescribed.

Sub-section (5) of Section 13 further provides that every proceeding before the district forum, the state commission or the national commission, as the case may be, shall be deemed to be a Judicial proceeding within the meaning of Sections 193 and 228 of the Indian Postal code and the Forums shall be deemed to be Civil Courts for the purposes of Section 195 and Chapter XXVI of the code of Criminal Procedure, 1973

Additional Powers of the Consumer Forums: (Rule 10 of the Consumer Protection Rules, 1987), The national commission, the state commission and the district Forum have the following additional powers:

1. Requiring production of any books, accounts, documents, or commodities from any person and getting them examined by an officer specified on this behalf.

2. Obtaining information required for the purpose of the proceedings from any person.

3. Authorising any officer to enter and search any premises and seize from premises such books, papers, documents and commodities as are required for the purpose of proceedings

under the Act.

4. On examination of such seized documents or commodities, ordering the retention thereof or returning them to the party concerned.

Q.16. Discuss the legal consequences in case of delivery of wrong quality of goods. (2016)

Ans. The legal consequences in case of delivery of wrong quality of goods are:

1. A copy of the complaint is forwarded to the opposite party mentioned in the complaint directing him to give his version of the case within a period of 30 days. District Forum may extend this period not exceeding 15 days.

2. If the opposition part on receipt of the complaint devices or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time gain by the District Forum, the District Forum shall settle the dispute in the manner specified in clauses (c) to (g) Sec. 13(1).

3. If the complainant 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. The sample so sealed will be sent to the appropriate laboratory along with a direction that laboratory make an analysis or test, whichever may be necessary, with a view of finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings to the District Forum within a period of 45 days or within such essential period as may be granted by the District Forum.

4. If the goods are required to be tested or, the complainant is required to deposit a specified fees to the credit of the forum, for payment to the appropriate laboratory for carrying out the necessary analysis or test of the goods in questions.

5. The District Forum shall remit the amount deposited to its credit under the above clause to the appropriate laboratory and enable it to carry out the analysis or test. On receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks as it may feel appropriate to the opposite party.

6. If any of the parties, disputes on the correctness of the findings of the appropriate laboratory, or disputes on 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,

7. Thereafter, the District Forum shall give a reasonable opportunity to the complaints as wll as the opposite party of being heard regarding written complaints as to the correctness or otherwise or the report made by the appropriate laboratory.

8. If the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint, it shall issue and order to the opposite party directing him to do one or more of the following things

(i) . To remove the defect pointed out by the appropriate laboratory from the goods in question.

(ii) To replace the old goods with new goods of similar kind which shall be free from defect.

(iii) To return to the complainant the price paid by him.

(iv) To pay such amount as determined by the forum as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party.

(v) To remove the defects in goods or deficiencies in the services in questions.

(vi) To discontinue the unfair trade practices or the restrictive trade practice or not to rennet them.

(vii) Not to offer the hazardous goods for sale.

(viii) To withdraw the hazardous goods from being offered for sale.

(ix) To provide for adequate costs to parties.

9. Proceedings of the District Forum will be conducted by the President of the District Forum and at least one member thereof sitting together if a member, for any reason, is unable to conduct a proceeding till it is completed, the President and another member shall continue the proceeding from the state at which it was last heard by the previous member.

10. Every order made by the District Forum shall be signed by its President and the member or members who conducted the proceeding.

If the proceeding is conducted by the President and one member and they differ on any point or points, they shall state or point 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 order of

the District Forum.

11. 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 30 days from the date of the order. The appeal must be preferred in such a manner as may be prescribed.

The state commission may entertain appeal after the expiry of the said period of thirty days if it is satisfied that there was a sufficient cause for not filing it within that period.

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B.Com 1st Year The Consumer Protection Act 1986 Long Notes

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