LAB Lecture 301: Consumer Protection Act, 1986 PDF

Subject Code LAB 301 Consumer Protection Act, 1986 1.Unfair & Restrictive Trade Practices, 2.Dispute Redressal Forums – District, State & National Forum, 3.Composition, 4. Jurisdiction, 5. Powers, Appellate Authority  Restrictive Trade Practice - means a trade...

Subject Code LAB 301 Consumer Protection Act, 1986 1.Unfair & Restrictive Trade Practices, 2.Dispute Redressal Forums – District, State & National Forum, 3.Composition, 4. Jurisdiction, 5. Powers, Appellate Authority  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 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.[Section 2(1)(nn)] Dispute Redressal Forums – District Forum Section 9 of the Act provides for the establishment of a District Forum by the State Government in each district of the State. However, the State Government may establish more than one District Forum in a district if it deems fit to do so. Section 10(1) provides that each District Forum shall consist of a) Person who is, or who 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– (Same for State Commission) (a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of theState Government involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e) has, in the opinion of the State Government, such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f) has such other disqualification as may be prescribed by the State Government  Every member of the District Forum shall hold office for a term of 5 years or upto the age of 65 years, whichever is earlier, and shall be eligible for reappointment for another term of five years or upto the age of sixty-five years, whichever is earlier, subject to the condition that he fulfills the qualifications  Jurisdiction of District Forum Pecuniary limits Section 11(1) empowers the District Forum to entertain complaints where the value of goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs.  Section 11(2) requires a complaint to be instituted in the District Forum within the local limits of (Terretorial Jurisdiction) whose jurisdiction the opposite party or the defendant actually and voluntarily resides or carries on business or has a branch office or personally works for gain, at the time of institution of the complaint; or any one of the opposite parties (where there are more than one) actually and voluntarily resides or carries on business or has a branch office or personally works for gain, at the time of institution of the complaint.  In the case of Dynavox Electronic Pvt. Ltd. v. B.J.S. Rampuria Jain College, Bikaner (Appeal No. 4/89 before the Rajasthan CDRC), it was held that where in a contract, the machinery was supplied and installed at a particular place, a part of cause of action would be deemed to have arisen at that place, therefore, the complaint could be instituted in the District Forum within whose jurisdiction that place falls State Commission Section 16 of the Act empowers the State Government to establish the State Consumer Disputes Redressal Commission consisting of: (a) a person who is or has been a judge of a High Court appointed by the State Government (in consultation with the Chief Justice of the High Court) who shall be its President. (b) not less than two and not more than such number of members, as may be prescribed, one of who 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:  It is required that not more than fifty per cent of the members be from amongst persons having a judicial background. “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.  Every appointment shall be made by the State Government on the recommendation of a Selection Committee consisting of the President of the State Commission, Secretary Law Department of the State and Secretary in charge of Consumer Affairs in the State. Jurisdiction of State Commission Section 17 of the Act provides for the jurisdiction of the Commission as follows: (a) the State Commission can entertain complaints where the value of the goods or services and the compensation, if any claimed exceed rupees twenty lakhs but does not exceed rupees one crore; (b) the State Commission also has the jurisdiction to entertain appeals against the orders of any District Forum within the State. The State Commission also has the power 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. If it appears to it that such District Forum has exercised any power not vested in it by law or has failed to exercise a power rightfully vested in it by law or has acted illegally or with material irregularity.  A complaint shall be instituted in a State Commission within the limits of whose jurisdiction, - (a) 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) 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 National Commission Section 9 empowers the Central Government to establish the National Consumer Disputes Redressa Commission, by notification in the Official Gazette. Section 20(1) provides that 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 (in consultation with the Chief Justice of India), who shall be its President; (b) not less than four and not more than such number of members as may be prescribed one of whom shal be a woman, who shall have the following qualifications, namely:-. (i) be not less than thrity-five years of age; (ii) possess a bachelor’s degree from a recognized university; and (iii) be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:  Disqaulification of appointment of Member of National Commission Please Note: The disqaulifications prescribed under District and State Commission same are applicable to the National Commission. Kindly read the word State Government and Central Government in Point No. (d), (e) and (f)  Jurisdiction of National Commission (a) to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceeds rupees one crore; (b) to entertain appeals against the orders of any State Commission. c) 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 tha such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity  Limitation Period for Filing of Complaint Section 24A provides that 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. However, where the complainant satisfies the Forum/Commission as the case may be, that he had sufficient cause for not filing the complaint within two years, such complaint may be entertained by it after recording the reasons for condoning the delay. Powers of the Redressal Agencies The District Forum, State Commission and the National Commission have been vested with the powers of a civi court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters: (i) the summoning and enforcing 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 fro any other relevant source; (v) issuing of any commission for the examination of any witness; and (vi) any other matter which may be prescribed.  Appeal (Appellate Authority) Section 15 entitles a person aggrieved by an order of the District Forum to prefer an appeal to the State Commission. Similarly any person aggrieved by any original order of the State Commission may prefer an appeal to the National Commission under Section 19. Likewise, any person aggrieved by any original order of the National Commission may prefer an appeal to the Supreme Court, under Section 23  All such appeals are to be made within thirty days from the date of the order. However, the concerned Appellate authority may entertain an appeal after the said period of thirty days if it is satisfied that there was sufficient cause for not filling it within the prescribed period. The period of 30 days would be computed from the date of receipt of the order by the appellant.