CENTRAL UNIVERSITY OF SOUTH BIHAR

SCHOOL OF LAW & GOVERNANCE

PROJECT REPORT ON:-

OBJECTIVE & LEGISLATIVE

HISTORY OF CONSUMER PROTECTION
ACT, 1986

Under the Supervision of: MR. DEO NARAYAN SINGH

ASSISTANT PROFESSOR,
SCHOOL OF LAW & GOVERNANCE,
CENTRAL UNIVERSITY OF SOUTH BIHAR

Submitted By:-

GAURAV RAJ
B.A. LLB (Hons.)
1st Semester (2018-2023)
Enrollment No. - 1813125030

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 ACKNOWLEDGEMENT

I, Gaurav Raj, take extreme pleasure in expressing my profound gratitude towards my Law of Torts
teacher Mr. Deo Narayan Singh (Assistant Professor, Law) for inspiring me and giving me the
invaluable guidance and constant support throughout the course of my project work. I have taken
efforts in this kind project. However, it would not have been possible without the kind support of my
teacher, colleagues and many more individual persons, writers, college staffs, librarians and other
sources of e-resource. I would like to sincere thanks to all of them.

I thank my parents for providing me everything whatever be required for the completion of this
project.

Finally, I would like to thanks all my friends who are a little bit part in helping me for this kind
project.

GAURAV RAJ

B.A. LL.B. (Hons)–1st Semester

CUSB1813125030

School of Law & Governance,

Central University of South Bihar

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 INDEX

S.No. Content Page Number

01. INTRODUCTION 04 – 05
02. HISTORICAL PERSPECTIVE 06 - 07
03. SIGNIFICANCE OF THE STATUTE 08
04. CONSUMER PROTECTION COUNCIL 08
05. MEANING & DEFINITION 09
06. OBJECTIVES 10
07. CONSUMER RIGHTS 11
08. STRUCTURE OF CONSUMER PROTECTION 12
ACT
09. CONTENTS OF CONSUMER COMPLAINTS 13
10. CONCLUSION 14
11. BIBLIOGRAPHY 15

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 INTRODUCTION

Consumer rights are an integrals part of our lives like the consumerist way of life. We have all made
use of them at some point in our daily life. Markets resources and influences are growing by the day
and so is the awareness of ones consumer rights. These rights are well defined and there are agencies
like Government, Consumer Courts and Voluntary Organizations that works towards safeguarding.
While we like to know about our rights and make full use of them, consumer responsibility is an area
which is still not demarcated and it is hard to spell out that all the responsibilities is that a consumer is
supposed to shoulder.

Consumer Protection Act, 1986 is an important act in the history of consumer movement in the
country. The Act was made to provide for the better protection and promotion of consumer rights
through the establishment of consumer councils and quasi-judicial machinery. It is the mile stone in
the history of socio-economic legislation and directed towards public welfare and public benefits.

The CPA was passed by the Lok Sabha on the 5th December, 1986 and by the Rajya Sabha on 10th
December, 1986 and assented to by the president in the Gazette of India.

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Extra Part II: Section 1 Dated –24.12.1986 and at PP 1-12 called, “The CPA 1986 (Act No. – 68 of
1986) and the preamble states that , “An Act provide for better protection of the interest of
consumers and for that purpose to make provisions for the establishment of consumer councils
and other authorities for the settlement of consumer’s dispute formatters connected therewith.”

Under the Act, consumers disputes redressal agencies have been set up throughout the country with
the District Forum at the District level, State Commission at the State level, and National Commission
at National level to provide simple, inexpensive and speedy justice to the consumer with complaints
against defective goods, deficient services and unfair and restrictive trade practices.

The Law relating to Consumer Protection in India is at recent origin and is developing slowly, day
by day, with the pronouncement of orders passed by the commissions constituted under the Act all
over the India and the National Commission . However the presence of some Protective Laws for the
benefits of consumer in the ancient culture cannot be denied.

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 HISTORICAL PERSPECTIVE

In the early years when welfare legislatures like the Consumer Protection Act did not exist ,
the Maxim Caveat emptor (let the buyer beware ) governed the markets deals. We found the
seeds of Consumer Protection during the Mughal times and especially during the times of Khilji's. It
is said that sultan Ala-ud-Din Khilji (1296 A.D to 1316 A.D) had introduced the strict price
control measures based on production costs. He also established separate shopping center in Delhi
for (1) grain, (2) clothes, sugar, dried fruits , herbs, butter, and oil (3) horses , slave, and cattle, and
(4) miscellaneous commodities. The supply of grain was ensured by collecting tax in kind in the
production areas and keeping it in the royal storehouses. Hoardings of grains were forbidden.
Elsewhere the growers were ordered to sell their grains for cash in their fields at fixed prices and were
not allowed to take any grain home for private sell. The market controller, the state intelligence
officers, and the Sultan’s secret agents, each submitted independent reports on these shopping centers
to the Sultan. Even the minor violation of rules were not tolerated.

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The shopping centers for clothes, known as the sara-i-adl, was established near one of the royal
palaces on the inner sides of the Bada-un-Gate. All goods, including foreign imports, were first taken
there and their price fixed. Every merchant was registered with the commerce ministry and had to
sign a bond guaranteeing a regular supply to the goods in which they traded.

The Hindu Multani merchants were advanced money by the treasury to import rare commodities for
the sara-i-adl, some price were subsidized. Costly fabrics and luxurious goods could be sold only to
those who had obtained permits from the Government. The prices of cattle were also fixed and
unscrupulous merchants were deprived of their trading rights.

The shopping centers for general commodities was under the direct control of commerce ministry.
Ala-ud-Din’s Minister of commerce was also the Superintendent of Weights and Measures and the
controller of the Commercial transactions . He was assisted by the Superintendent for each
commodities. Prices and Weight and Measure were chequed by sending the children employed in the
Royal Pigeon-house to buy petty articles. The prices fixed for the Delhi markets were also applied in
the provincial capitals and towns.

During the British regime (1765 - 1947), also known “Colonial Era”, Government’s economic
policies in India were concerned more with protecting and promoting the British interests than with
advancing the welfare of the native population. The Administration’s primary per – occupation was
with maintaining law and order, tax collection and defenses. Accordingly much of the legalization
enacted during the British regime was primarily aimed at serving the colonial rulers intend of the
natives. There were, however, some pieces of legislation which protected the over all public interest
through not necessarily the consumer interest. Prominent among these were: The Indian Penal Code ,
1860 , The Sale of Goods Act , 1930 , The Dangerous Drugs Act , 1930 , and The Drugs and
Cosmetics Act, 1940 . In a sense, The Sale of Goods Act and The Principles of Law of Torts were
more for the protections of the trader than the consumer.

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 SIGNIFICANCE OF THE STATUTE

This statue is regarded as the ‘Magna Carta’ in the field of consumer protection for checking the
unfair trades practices and “effects in goods” as far as India is concerned . It led to the
establishment of widespread network of consumer forums and appellate courts all over the India. It
has significantly how business approach consumer complaints and empowered consumers to
the great 1extent .

CONSUMER PROTECTION COUNCIL

Consumer Protection Council are established at the national , state , and district level to
increase consumer awareness2.

1 “An Analysis of Consumer Protection Law in India”

2 “Consumer Protection and National Consumer Disputes Redressal Commission”
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 MEANING

As the preamble of CPA , 1986 reflect ; this socio – economic law was enacted to provide for
the better protection of the intrest of consumers and for that purpose the CPA , 1986 seeks to
provide speedy and simple redressal to consumer disputes . In Charan Singh vs. Healing
Touch Hospital The Hon’ble Supreme Court has made important observations on the object of
the act .

DEFINITION

S.2(1)d of the act defined consumer as “Consumer” means any person who :-
(i) Buys any goods for a consideration which has been paid or promised partly paid and party
promised or under any system of deferred payments 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 person , but does not
includes with the approval of self person , but does not include a person who obtains such
goods for resale or for any commercial purpose .

(ii) Any services for a considerations which had been paid promised or partly paid or partly
promised or under any system of differed payments and includes any beneficiary of such
services other than the person. The services for consideration paid or promised or partly paid
or partly promised , under any system of differed payment , when such services are availed
or with the approval the first mentioned person .

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 OBJECTIVES

(a) To assist countries in maintaining adequate protection for their populations as consumers.

(b) To facilitate production and distributions patterns responsive to the needs and desires of
consumers .

(c) To encourage high level of ethical conduct for those engaged in the production and
distributions of goods and services to consumers .

(d) To assist countries in curbing abusive business practices by all the enterprises at the
national and international levels which adversely affects consumers .

(e) To facilitate the development of independent consumers groups .

(f) To further international cooperation in the field of consumer protection .

(g) To encourage the development of market conditions which provide consumers with greater
choice at lower prices .

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 CONSUMER RIGHTS

Consumers in the advanced countries , obviously , are much more conscious for their
rights than in countries like India .

1. Right against exploitation by unfair trade practices .

2. Right to protection of health and safety from the goods and the services the
consumers buy or are offered free .
3. Right to be informed of the quality and the performance standard , ingredients , of
the product , operational requirements , freshness of the products , possible adverse
side affects and other relevant facts concerning the product or the service.
4. Right to be heard if there is any grievance or suggestions .
5. Right to get genuine grievances redressed .
6. Right to choose the best from a variety of offers .
7. Right to physical environment that will protect and enhance the quality of life .

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 STRUCTURE OF CONSUMER
PROTECTION ACT

The Act envisages a three - tier quasi-judicial machinery at the District levels , State levels
and the National levels.

 District Consumer Disputes Redressal Forums (DCDRF) - It is known as “District

Forum” , deals with complaints involving costs and compensation less than Rs.
Twenty Lakhs .

 State Consumer Disputes Redressal Commissions (SCDRC) - It is known as “State

Commission”, deals with complaints involving costs and compensation higher than
Rs. Twenty Lakhs and less than Rs. One Crore..

 National Consumer Disputes Redressal Commissions (NCDRC) - It is known as

“National commissions”, deals with complaints involving costs and compensation
higher than Rs. One Crore.

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 CONTENTS OF CONSUMER COMPLAINT

Procedures for fillings complaints and seeking redressal are simple , There is no fee for filling
a complaints before the District Forum , the State commission or the National commission.(
A stamp paper is also not required ). Three to five copies to the complaints on plain paper
are required to be submitted by the complainant or his authorized agent in person or could
be sent by the post to the appropriate Forum / Commission .

A complaint should contain the following information :-

(a) The name , description and the address of the complainant .

(b) The name , description and address of the opposite party or parties , as the case may
be , as far as they can be ascertained .
(c) The facts relating to complaint and when and where it arose .
(d) Documents , if any , in support of the allegations contained in the complaint .
(e) The relief which the complainant is seeking .

The complaint should be signed by the complainant or his authorized agent .

The complaint is to be filled within two years from the date on which cause of
action has been arisen .

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 CONCLUSION

I can conclude that very few consumers are fully aware about the rights ,
responsibilities and Consumer Protection Act . Hence , it is necessary to educate them on their
rights and responsibilities as consumers , to make them vigilant , rational and aware buyers .
The government has been fruitful in providing protections to the consumers in the real sense
of the term and served the purpose of the Act . It is hoped that further improvement in the
act would aim at even more efficiency and render the positions of the consumers much
stronger in this era of globalization and privatization where the sudden unchecked advent of
Multi National Companies has to be balanced with the protection of the rights of the
consumers by the Legislature and the Judiciary .

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 BIBLIOGRAPHY

 www.google.com

 www.wikipedia.com

 Law of TORTS by Dr. R .K. Bangia

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