The Consumer Protection Act 1986

Course-LL.B-II

Subject-Law of torts-II

Unit-IV

1

Consumer Protection Councils

• Central Consumer Protection Council• State Consumer Protection Council• District Consumer Protection Council

Central Consumer Protection CouncilConstitution :

• Establishment by The Central Govt. By notification

• The term of 3 years• A Standing working Group of not exceeding

30 members• Shall consist of following members not

exceeding 150 namely:

Contd.

1. Minister in charge of consumer affairs as a chairman

2. The minister of state

3. The minister in charge of consumer affairs in state

4. Eight members of parliament-Lok Sabha (5) Rajya sabha (3)

5. The secretary of National Commission of scheduled tribe & caste

6. Repesentives of central Govt. (max 20)

7. The Registrar National Consumer dispute redressal commission

8. Representatives of Consumer Organizations(not less than 35)

9. Representatives of women not less than ten

10. Representatives of Farmers, trade & industries(max 20)

11. Persons capable of representing Consumer interest not exceeding 15

12. The Secretary in charge of Consumer Affairs

Procedure of Meetings

• Council Shall Meet At least Once in a year

• Time & Place to be decided by Chairman

• Shall Observe such procedure in regard to transaction of its business as prescribed.

Objective of Central Council

To promote & protect Rights of Consumer Such As:

• To be protected against marketing of goods which are hazardous to life & property

• Right to be informed about the quality, quantity,purity,standered etc.

• Right to assure access to variety of goods at competitive prices.• Right to be heard & to assured to get good consideration at

appropriate forums.• Right to seek redressal against unfair trade practices• Right to consumer Education

State Consumer Protection Council

Constitution

• Establishment by state Government by passing a notification

• It shall meet as and when necessary but not less than two meetings every year

• Time & Place to be decided by Chairman

• Shall Observe such procedure in regard to transaction of its business as prescribed.

Contd.

• The state council shall consist members namely:

1. The minister in charge of consumer affairs acting as chairman

2. Number of other official or non official member as prescribed by State Govt.

3. Number of other official or non official member as prescribed by Central Govt. not exceeding 10.

ObjectiveTo promote & protect Rights of Consumer with in state.

District Consumer Protection CouncilConstitution

• The State Govt. shall establish in every district by notification.

• It shall meet as and when necessary but not less than two meetings every year

• Time & Place to be decided by Chairman within District

• Shall Observe such procedure in regard to transaction of its business as prescribed by state Govt.

Contd.

• It shall Consist members namely:1.The collector of District acting as a

chairman2.Number of other official or non official

member as prescribed by State Govt.

ObjectiveTo promote & protect Rights of Consumer

with in state focusing on Districts

Consumer Dispute Redressal Agencies• Three Tier System• Consumer Redressal Agencies at 1. District level2. State Level3. Central level (national)• It has right of Civil Court but it is not a Civil

Court• Objective is to provide Cheep & Speedy Remedy

District Forum (Redressal Agency)

• Composition :

1.Person qualified to be District Judge as President

2.Two other members(at least one should be women)

Age 35,Bachelor’s degree, Ability & integrity along with knowledge.

Contd.

• Appointment

By the state govt.

1. President of state commission

2. Secretary of the law department of state

3. Secretary incharge of the department of consumer affairs.

65 yrs or 5 yr’s term subject to re appointment.

Salary subject to State govt.

Resignation

• In written addressing state govt.• Vacant office• Person having same qualification can perform

in behalf of other

Disqualification

• Convicted & convinced to imprisonment• Is an undercharged insolvent• Is of unsound mind & declared by competent

authority• Removed or dismissed from service of govt.• Has financial or other interest prejudicially • Other disqualification as described by the

state government.

Jurisdiction

• To entertain complaint not exceeding 20 lakhs• Complaint within local jurisdiction

Who can file a complaint

• A consumer• The recognized consumer org.• One or more representing the group• Representatives of central or state govt.

Complaints with fees

Proceeds with either acceptance or rejections with in 22 days.

Procedure on Admission of goods

• Against Goods1. Copy of complaint to opp. Party(21 days) & reply (30

days) extension of 15 days

2. Failure of party to present than District forum shall proceed

3. Obtain sample of goods , seal it & have report (45 days)

4. Complainant should pay fees for proceedings

5. Report along with remittance of fees from laboratory

Contd.s

• Against Services1. Refer copy to party & reply within 30 days(extention of 15

days)2. On no reply settlement on the basis of evidence3. Party fails to appear complaint may be dismissed or decision

on merit takes place4. No proceedings questioned on the basis of principles of natural

justice.5. Analysis of commodities if needed (5 months)6. Interiam order may be passed whenever necessary

Contd.

• If have objection need the same in writing• Opportunity to parties being heard as to

correctness.

Power of District Forum

• Shall have same power as are vested in civil court namely:

1. Summoning attendance of any defendant2. The discovery & production of docs.3. Reception of evidences4. Requisitioning of the report of evidence analysis5. Issuing of any commission for witness examination.6. Any other matter which may be prescribed.• Every proceeding shall be deemed to be a judicial

proceedings & forum to be treated as civil court

Relief to the Complainant

• If forum is satisfied i.e. goods complained suffer from defects, following Directions to be suggested:

1. Remove defects from goods

2. Replace goods with new goods of similar description

3. Return complainant the price or charges bare by him

4. Compensation for any loss or injury due to opposite party’s action

5. Remove defects & deficiency from goods or services

6. To discontinue the unfair trade practises

7. Not to offer hazardeous goods for sale

8. To withdraw hazardeous goods & services for sale

9. To pay amount if large number of consumer suffered not less than 5 % of value of such goods

Contd.

10. To provide costs to parties.

• Every proceeding shall be conducted by president accompanied by 1 member

• Every order made shall be sign by its president & member • In case of Conflict , matter should be judge on majority of

votes.

Appeal

• If any person aggravated on order made by forum may prefer an appeal to state forum within 30 days.

• No appeal shall be entertained appellant has deposited 50 % of that amt or 25000 whichever is less.

State Forum (Redressal Agency)

Composition:State Commission shall Consist:

1. Person who has been Judge of High court as President

2. Two other members(at least one should be women)

not less than Age 35,Bachelor’s degree, Ability & integrity along with knowledge.

3. Not more than 50 % of the members shall be from judicial background.

Appointment

By the state govt.

1.President of state commission

2.Secretary of the law department of state

3.Secretary in charge of the department of consumer affairs.

65 yrs or 5 yr’s term subject to re appointment.

Salary subject to State govt.

Resignation

In written addressing state govt. Vacant office Person having same qualification can perform in

behalf of other

Disqualification

Convicted & convinced to imprisonment Is an undercharged insolvent Is of unsound mind & declared by competent

authority Removed or dismissed from service of govt. Has financial or other interest prejudicially Other disqualification as described by the state

government.

Powers of State Forum

1. State commission may exercised by benches

( one or more members with president or majority)

2. The salary & another allowances set by state Govt.

3. Hold 5 yrs or 67 yrs whichever is earlier.4. Eligible for re appointment for another term of 5 yrs or up to age of 67

yrs.

Jurisdiction

• Complaint claimed more than 20 lakhs & less than 1 cr.

• Complaint should be within limits of jurisdiction.

How State forum Controls District?• Transfer of cases• Circuit benches• Appeals:

Appeal to national commission within 30 days.

No appeal without deposition of 25 % of amount or 35000 which ever is less.

• Hearing Of Appeal:Within 90 days from admission.

No adjournment without sufficient cause.

National Forum( Redressal Agency)

• Composition :1. Person qualified to be Supreme court judge as President

2. Not less than four members(at least one should be woman)

Age 35,Bachelor’s degree, Ability & integrity along with knowledge.

No more than 50 % of the members shall have judicial background.

Appointment

• By Central Govt . On recommendation of Selection Committee

1. Supreme court judge nominated by chief justice of India

2. The secretary in the department of legal affair

3. Secretary of department dealing with consumer affairs.

Disqualifications:• Same as State & district forum

Resignation :• Same as State & district forum

Powers of National Commission

1. National commission may exercised by benches

( one or more members with president or majority)

2. The salary & other allowances set by Central Govt.

3. Hold 5 yrs or 70 yrs whichever is earlier.4. Eligible for re appointment for another term of 5 yrs or up

to age of 70 yrs.

Jurisdiction

• Complaint claimed more than 1 cr.• Appeals against the order of state

commission.• To call for records and pass appropriate

orders in any consumer dispute which is pending before…..

References • 1. https://lh4.ggpht.com/8-nIhmMryH442Nw-g78kL4K4YNsTtgcOebMD-

ALs3S2j-dXMFwIKsrJbgwzRDaArdUfdqg=s170• Ratan Lal & Dhiraj Law-The Law of Torts (1997) Universal, Delhi