Procedure and application

Before the enactment of the consumer

Protection Act,1986 a person aggrieved by the
defective goods or deficiency in service had to
approach the ordinary civil court to get his
grievances redressed
The proceeding in the ordinary civil court is
very complex , expensive and time consuming .
In Order to give more protection to the interest
of consumers of goods and service the
parliament enacted the consumer Protection
Act 1986.

The law relating to consumer protection is
contained in the Consumer Protection Act ,
1986. The Consumer Protection Act-1986 &
enforced from 10 th June 1987 in India Aimed
at providing simple, quick, and cheaper
protection of consumers interest.


Aims of Consumer Protection Act 1986 (Confer
more protection and speedy remedy to consumers
of goods and services)
Establishment of Consumer Disputes Redressal
Forum (District forum)
Establishment of Consumer Disputes Redressal
commission (State commission)
Establishment of National Consumer Disputes
Redressal Commission (National commission)
Establishment of a Central Consumer Protection
Council for promoting and protecting the rights
of the consumers.
Consumer of Goods
A person who has purchased goods for a
consideration.
The consideration may be paid or promised to
pay or partly paid or partly promised.
A person who has purchased goods under a
system of deferred payment is also a consumer.
Consumer of Service
A person who has hired or availed of any
service for consideration.
Consideration may be paid or promised to pay
or partly paid.
A person who has hired or availed of any
service under system of deferred payment.

Better protection of interests of consumers
Protection of rights of consumers.
Right to be protected against marketing of
goods or services which are hazardous to life
and property.
To be informed about the quality, quantity,
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 exploitation of consumers.
The Act applies to whole India except Jammu
& Kashmir. Every State has its own set of rules.
It is divided in 4 chapters & 31 sections.
Applies to all type of goods and services,
public utilities & public sector undertakings.
All types of complains relating to goods, unfair
trade practice.
A suit pending in civil court cannot be heard in
consumer court. (No parallel litigation)
The consumer to whom the goods are sold or
delivered, or agreed to be sold are delivered ,
or the service has been provided, or agreed to
be provided
Any recognized consumer association,
regardless of whether the consumer is a
member of such association or not. (e.g. class
action suit)
One or more consumer , where there are
numerous consumer having the same interest
with permission of the district forum on behalf
of or for the benefit of all
consumer so interested.
The state or central govt . either its individual
capacity or as a representative of the interest of
the consumer in general.

Under Section 9 of the Act consumer can file a
complaint before the District forum.
District forum is headed by District judge, he
has jurisdiction over the district.
State Commission is headed by Judge of High
Court, he has jurisdiction over the whole State.
National Commission is headed by Chief
Justice of India, he has jurisdiction over the
entire Nation.
In District Forum if the cost of goods or
services and compensation asked for is up to
Rs. 20 Lakhs and cause of action arose there or
where the Opposite Party resides or runs their
business or has a branch office;
In State Commission if the cost of goods or
services and compensation asked for is more
than Rs. 20 Lakhs and less than Rs. 1 Crore and
cause of action arose there or where the
Opposite Party resides or runs their business or
has a branch office;
In National Commission of the cost of goods or
services and compensation is more than Rs. 1
Crore and cause of action arose there or where
the Opposite Party resides or runs their
business or has a branch office.

Send a notice to the Opposite Party giving him time
limit to settle your grievance.
Prepare the consumer complaint in the required format
Get the complaint affidavit notarized through a notary.
Make required number of photocopies after notarizing.
[4+ no. of Opposite Parties]
Prepare a bank draft from a nationalized bank to pay
court fee.
Submit the complaint and court fee to the receiving
clerk in the consumer court who will give you the date
for admission hearing and complaint reference number

On admission hearing, you would be informed
whether your case is fit for acceptance or not. If
accepted, you will be given the date for next
hearing.
The court will send a notice with your complaint
copy to the opposite party seeking reply within 30
days, and asking him to attend the hearing.
Where complaint alleges a defect in the goods
which cannot be determined without proper
analysis, the forum/commission shall send it to
the laboratory to find out whether there is any
defect in it or not?

The hearings will continue till the matter is
decided.
The proceedings ideally should be decided in
90 days.
The courts final order will be sent to all the
parties by registered post.

[Please note: It is important to attend the
hearings, else the matter may be decided ex-party on
the merits of the case.]

If you are not satisfied with the judgement
from the District consumer forum, you can
appeal to the State and then to the National
commission within 30 days of receiving the
order. In short from:
- District Forum to State Commission
- State Commission to National Commission
- National Commission to Supreme Court
Section 24A of the Act provides that a
consumer dispute can be filed within 2 years
from the date on which the cause of action
arises.
Appeals are required to be filed within 30 days
from the date of receipt of the courts order.
Fee for District Forum:
- Up to Rs. 1 Lakh = Rs. 100/-
- Above Rs. 1 Lakh but less than Rs. 5 Lakh =
Rs. 200/-
- Above Rs. 5 Lakh but less than Rs. 10 Lakh =
Rs. 400/-
- Above Rs. 10 Lakh but less than Rs. 20 Lakh =
Rs. 500/-

S. No. Total Value Of Goods Or Services And The
Compensation Claimed
Amount Of Fee Payable
(1) (2) (3)
District Forum
1. Upto One Lakh Rupees For Complainants Who Are
Under The Below Poverty Line Holding Antyodaya
Anna Yoj na Cards
Nil
2. Upto One Lakh Rupees For Complainants Other Than
Antyodaya Anna Yoj na Card Holders
Rs. 100
3. Above One Lakh And Upto Five Lakh Rupees Rs. 200
4. Above Five Lakhs And Upto Ten Lakh Rupees Rs. 400
5. Above Ten Lakhs And Upto Twenty Lakh Rupees Rs. 500
State Commission
6. Above Twenty Lakh And Upto Fifty Lakh Rupees Rs. 2000
7. Above Fifty Lakh And Upto One Crore Rupees Rs. 4000
National Commission
8. Above One Crore Rupees Rs. 5000
Replacement of defective goods
Refund of price paid for defective
good/services
Removal of deficiency in service
Refund of extra money charge
Withdrawal of goods hazardous to life
Compensation for the loss due to negligence of
opposite party.
If trader fails to follow the order passed by the
forum then he shall be punishable with
imprisonment for a term from 1 month up to 3
years or with fine from Rs. 2000/- up to Rs.
10,000/- or with both.