Consumer Act India

Description
Its a comprehensive 91 slide ppt on the 1986 act covers everything related to the act.

Introduction
• Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection. • United nations passed resolution of consumer protection in april 1985 . • In India 1986 was the enactment of consumer protection act • Aimed at providing simple, quick, and cheaper protection of consumers interest.

• The law related to consumer protection act is contained in the consumer protection act,1986. • The act applies to all goods and services.

Objectives
• Better protection of interests of consumers • Protection of rights of consumers • -Right to be protected against marketing of goods and services to life and property. • To be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices.

• The right to be assured, where ever possible, • access to goods and services at competitive prices • The right to be heard and to be assured that consumers interest will receive due consideration at appropriate forums. • The right to seek redresses against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers. • Right to consumer education.

Scope of the Act
• Applies to whole of the state Exept the state of Jammu and Kashmir • Applies to all type of goods and services, public utilities & public sector undertakings. • All types of complains relating to goods, unfair trade practices. • Remedies under this act is as same as those in other laws. • A suit pending in civil court can not be heard in consumer court.

Definitions. - In this Act,
1) “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; 2)"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.

• 3) 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

4)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; • 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; • 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;”;

5) "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.

• 6) “consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint. • 7) "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;

8)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. 9)DistrictForum" means a Consumer Disputes Redressal Forum established under clause (a) of section 9.

10)goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930). 9) “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.

11) "member" includes the President and a member of the National Commission or a State Commission or a District Forum, as the case may be. 12)"National Commission" means the National Consumer Disputes Redressal Commission established under clause (c) of section 9. • 12) notification" means a notification published in the Official Gazette. 13)"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;

14)"prescribed" means prescribed by rules made by the State Government, or as the case may be, by the Central Government under this Act; • 15) regulation” means the regulations made by the National Commission under this Act; 16)“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;

• 17)” 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; 18) “goods and spurious goods and services” mean such services which are claimed to be genuine but they are actually not so;

19) "State Commission" means a Consumer Disputes Redressal Commission established in a State under clause (b) of section 9;

20)"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;

• 21)"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 practiceincluding any of the following practices, namely;— • 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;

• 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; • gives false or misleading facts disparaging the goods, services or trade of another person.

• CONSUMER PROTECTION COUNCILS : Central Level State Level

Central Consumer Protection Council
• The Central Government may, 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.

Consists of…..
• the Minister in charge of consumer affairs in the Central Government, who shall be its Chairman • such number of other official or nonofficial members representing such interests as may be prescribed. •

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.

Objects of the Central Council.—
• The objects of the Central Council shall be to promote and protect the rights of the consumers such as,— • the right to be protected against the marketing of goods and services which are hazardous to life and property; • 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; • the right to be assured, wherever possible, access to a variety of goods and services at competitive prices; • the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums; • the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; and • the right to consumer education.

The State Consumer Protection Councils.• ESTABLISHMENT: 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). • MEMBERSHIP:

The State Council shall consist of the following members, namely:— ? the Minister incharge of consumer affairs in the State Government who shall be its Chairman; ? such number of other official or non-official members representing such interests as may be prescribed by the State Government. ? such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government. .

MEETINGS: The State Council shall meet as and when necessary but not less than two meetings shall be held every year. TIME AND PLACE OF MEETINGS AND PROCEDURE: 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.

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..

The district consumer protection council
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. The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the following members, namely:— the Collector of the district (by whatever name called), who shall be its Chairman; and such number of other official and non-official members representing such interests as may be prescribed by the State Government.

• (3) The District Council shall meet as and when necessary but not less than two meetings shall be held every year. • (4) The District Council shall meet at such time and place within the district as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.

Objects of the district council
• 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
• 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.

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:

• Further 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;

Appointment 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.

Term of office
• 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 reappointment 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:

Resignation:
• A member may resign his office in writing under his hand addressed to the State Government . 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 relation to the category of the member who has resigned.

Salary and terms of conditions of service
• 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.

Jurisdiction
• • • .—(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,— 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 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 the cause of action, wholly or in part, arises.





Manner in which the complaint shall be made.
• 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 con.sumers 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 subsection (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”.

Procedure on admission of complaint:
• The District Forum shall, on admission of a complaint, if it relates to any goods,— • 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.

1.)Denial of allegation by opposite party:
• 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):

• 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 to the District Forum within a period of 45 days of the receipt of the reference or within such extended period as may be granted by the District Forum.

2)Deposit of fees
• 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.

3)Remission of fees to laboratory and forwarding of report to opposite party:
• 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.

4)Objections by any of the parties.
• 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;

5)Reasonable opportunity to parties of being heard and issue of order:
• 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 (I) and issue an appropriate order under section 14.

Complaint relating to service:
1)Reference of claim to opposite party: • 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.

Denial of allegation by opposite party:
• where the opposite party, on receipt of a copy of the complaint, deny or dispute 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.

Settlement of dispute:
a)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 b) 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.

Proceedings of the district forum final:
• 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.

Death of the compainant:
• 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.

Period:
• 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. • 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.

• 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. • 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. • 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

Powers to the district forum
• 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.

Finding of the district forum:
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:— • to remove the defect pointed out by the appropriate laboratory from the goods in question; • to replace the goods with new goods of similar description which shall be free from any defect; • to return to the complainant the price, or, as the case may be, the charges paid by the complainant; • 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; • To remove the defects in goods or deficiencies in the services in question; • To discontinue the unfair trade practice or the restrictive trade practice or not to repeat it; • Not to offer the hazardous goods for sale; • To withdraw the hazardous goods from being offered for sale; • To cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;

• 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. • 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;

• 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. • 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. 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.

• Every order made by the District Forum under subsection (1) shall be signed by its President and the member or members who conducted the proceeding: • 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.

• 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: • 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. • 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 • 50% of that amount or twenty-five thousand rupees, whichever is less

Appeal:

Consumer dispute redressal commission:
• • • • • • • • • THE STATE COMMISSION:(sec 16 to19) 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.

Disqualified for appointment
• • • 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.


• •

Appointment on recommendation ofa selection committee:
Selection Committee consists 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

• 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. • The jurisdiction, powers and authority of the State Commission may be exercised by Benches thereof. • A Bench may be constituted by the President with one or more members as the President may deem fit. • 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.

Salary
• 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

Period of service:
• 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 reappointment 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 subsection (1).

• Such re-appointment is made on the basis of the recommendation of the Selection Committee: • 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 subsection (1) • in relation to the category of the member who is required to be appointed under the provisions of subsection (1A) in place of the person who has resigned. • 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.

Jurisdiction of the State Commission
• the State Commission shall have jurisdiction— • (a) to entertain— • (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore; and • (ii) appeals against the orders of any District Forum within the State; and • (b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State, where it appears to the State Commission that such District Forum has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity.

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.

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.

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.

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.

Appeals.—
• Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by subclause (i) of clause (a) of section 17 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed: • Provided that the National Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

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: • 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: • 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. • 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.

National consumer disputes redressal commission
• • • • • • • • • THE NATIONAL COMMISSION-(SEC 20to 23) Composition of the National Commission.—(1) The National Commission shall consist of— 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.

Disqualified for appointment
• has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or • is an undischarged insolvent; or • is of unsound mind and stands so declared by a competent court; or • has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or • 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 • has such other disqualifications as may be prescribed by the Central Government :

Appointment made on the recommendation of a selection committee consisting of the following, namely:— • a person who is a Judge of the Supreme Court,--Chairman;& to be nominated by the Chief Justice of India– chairman • the Secretary in the Department of Legal Affairs in the Government of India--Member; • Secretary of the Department dealing with consumer affairs in the Government of India—Member

• The jurisdiction, powers and authority of the National Commission may be exercised by Benches thereof. • A Bench may be constituted by the President with one or more members as the President may deem fit. • 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.

salary
• 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.

Period of service



• •





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: 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. A person appointed as a President of the National Commission shall also be eligible for reappointment in the manner provided in clause (a) of sub-section (1) : 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. 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

Place of national commission:
• The office of the national commission shall be located in the union territory of delhi.

Jurisdiction
• 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.

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 50% of that amount or • RS 50,000, whichever is less.

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.







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. 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. 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.

Enforcement of orders of the District Forum, the State Commission or the National Commission

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

MISCELLANEOUS
• Protection of action taken in good faith. — No suit, prosecution or other legal proceedings shall lie against the members of the District Forum, the State Commission or the National Commission or any officer or person acting under the direction of the District Forum, the State Commission or the National Commission for executing any order made by it or in respect of anything which is in good faith done or intended to be done by such member, officer or person under this Act or under any rule or order made thereunder.

• Power to remove difficulties.— If any difficulty arises in giving effect to the provisions of this Act, the (Central Government may, by order in the official Gazette, make provisions necessary or expedient for removing the difficulty in the initial period of 2 years from the commencement of this act. • Power to make rules. - The Central Government and the state governments, by notification, to make the necessary rules for carrying out the provisions of this act.

• Thank you.



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