THE CONSUMER PROTECTION ACT 1986

An Act to provide for better protection of the interests of consumer and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumer disputes and for matters connected therewith.

CONSUMER DISPUTES REDRESSAL AGENCIES 1. Consumer Disputes Redressal Forum: Known as District Forum 2 Consumer Disputes Redressal Commission: Known as State Commission 3. National Consumer Disputes Redressal Commission established by Central Government. Sec. 9.

COMPOSITION OF DISTRICT FORUM Sec. 10

A person who is or who has been or is qualified to be District Judge who shall be its President. Two other members who shall be persons of ability, integrity and standing and have adequate knowledge in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration one of who shall be woman. 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.

 JURISDICTION OF DISTRICT FORUM Sec.11 COMPLAINTS: 1. where the value of the goods or services and the compensation claimed does not exceed 5 lakhs. 2. a complaint shall be instituted in a District Forum within local limits of whose jurisdiction the opposite party carries on business.

MANNER IN WHICH COMPLAINT SHALL BE FILED Sec.12 1. The consumer to whom such goods are sold. 2 Any recognised consumer association. 3. One or more consumer where there are numerous consumers having the same interest. 4. The Central or State Government.

PROCEDURE ON RECIEPT OF COMPLAINT-Sec 13

a).Distt. Forum shall refer a copy of complaint to opposite party directing him to reply within 30 days. b) in case of denial by opposite party the Distt. Forum shall proceed to settle the consumer dispute. c) Where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of goods, it can refer to appropriate Lab. For testing.

d) Fees to be paid by complainant e) To make payment to lab and send copy to opposite party. f) In case of dispute with regard to correctness of report, the district forum may require to submit objection in writing g) The district forum will give opportunity to complainant as well as opposite party of being heard as to the correctness or otherwise of the report of laboratory and issue appropriate orders.

 2. If the complaint received relates to goods in respect of which the procedure specified above cannot be followed, or if complaint relates to any services (a) refer a copy of complaint to opposite party to reply within 30 days. (b) in case of denial, the District Forum shall proceed to settle the consumer dispute. (i) on the basis of evidence brought to its notices by the complainant and opposite party.

 (ii) on the basis of evidence brought to its notice by the complainant where opposite party omits or fails to take any actions to represent his case within time prescribed.

 3. No proceeding shall be called in question on the ground of principle of natural justice. 4. The District Forum has the powers of Civil Court under code of civil procedure1908. 5. Every proceeding before Distt. Forum shall be deemed to be a judicial proceedings.

FINDINGS OF DISTRICT FORUM SECTION 14.

If Distt. Forum is satisfied that the goods complained suffers from any of the defects specified in the complaint, it shall issue an order to the opposite party directing him to do one or more of the following things:

(a) to remove defects (b) to replace the goods (c) to return complainant to the price (d) to pay compensation (e) to remove defects (f) to discontinue unfair trade practices (g) not to refer the hazardous goods for sale (h) to withdraw hazardous goods (i) to provide adequate cost to party

APPEAL UNDER SECTION 15;

Any person aggrieved by an order of Distt. Forum may prefer an appeal to State Commission within a period of 30 days.

COMPOSITION OF STATE COMMISSION U/S 16 Each State Commission shall consist of 1) (a) a person who is or has been a judge of High Court, who shall be its President. (b) two other member as in case of Sec. 10 (1)(b). Provided that every appointment made under this clause shall be made by the selection committee consisting of following: i) President of State Council Chairman. ii) Secretary of Law Deptt. State Govt. iii)Secretary in charge of- Consumer affairs 2) As prescribed by the government. 3) State commission shall hold office for 5 years.

JURISDICTION OF STATE COMMISION-SEC 17.

Commission has jurisdiction a) To entertain i) Complaint of value 5 lacs to 20 lacs. ii) Appeal against the order of Distt. Forum b) To call for records where Distt. Forum exceeded power as alleged.

PROCEDURE APPLICABLE TO State commission.

Procedure applicable to state commission: The provisions of S.12, 13, 14 and Rules made thereunder for disposal of complaints by District Forum shall be applicable to the disposal of disputes by state commission.

APPEAL SEC-19
Appeal to National Commission within a period of 30 days. COMPOSITION OF NATIONAL COMMISSION Section 20(1): (a) a person who is or has been a judge of Supreme Court who shall be preside t. (b) 4 other members as prescribed U/S 10(1)(b) Provided their appointment shall be made by selection committee consisting of the following:

 (a) a person who is judge of Supreme Court (b) Secretary, Deptt. Of Legal Affairs Secretary, Deptt. Of consumer Affairs SALARY; As prescribed by Govt. Members of Commission shall hold office for a period of 5 years or upto age of 70 years whichever is less.

APPEAL UNDER SECTION 23

Any person aggrieved by the order of NC may prefer an appeal to the Supreme Court within a period of 30 days. LIMITATION PERIOD Sec. 24-A The Distt. Forum State Commission or 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.

ADMINISTRATIVE CONTROL U/S 24 B (1)

The National Commission shall have administrative control over all the State Commissions in the following manners: (i) Calling for periodical returns regarding institution, disposal, tendency of cases (ii) Adoption of uniform procedure (iii) Generally overseeing the functioning of the State Commission , Distt. Forum to ensure that the objects and purpose of the Act are best served. The State Commission shall have administrative control over all Distt Forums.

ENFORCEMENT OF ORDERS
Enforcement of orders by the Forum,State commission, and the National commission under sec. 25 : In the same manner as if it were made by a a Court in a suit pending therein It shall be lawful for Forum, Commission or N.C. to send orders to Courts within local limits of whose jurisdiction (1) Regd. Office of a Co.situated (2)where person resides

PENALTIES U/S 27
In the event of failure in compliance of order by the said Forum/Commission, such person or trader shall be punishable with imprisonment for a term which shall not be less than one month but may extend to 3 years, or fine not less than rupees 2000/- which may extend to rupees 10,000/- or with both.

 In the case of Indian Medical Association Vs. V.P.Shantha, AIR 1996 S.C.550, three Judge Bench consisting of the Honble Judges, Kuldip Singh, SC Agarwal and BL Hansaria,laid the following principles regarding the services rendered by the medical practitioner are within the ambit of S. 2(1)(o) or not: (1) Service rendered to a patient by a medical practitioner (except where the doctor renders service free of charge to every patient or under a contract of personal service) by way consultation