Presentation

on
business law (11)
Shikha kumari
Imba,23
8th sem.

Procedures relating to consumer

complaints[sections 12 &13]
consumer forums are the bodies who function like courts in order to
settle the consumer disputes. Their composition is so made as to best
represent the interests of the consumer dispute. Their composition is so
much made as to best represent the interests of the consumers, and
they have specified jurisdictions of their own.
Section 13 of the Act has detailed the procedure in context of District
Forum only. For state commission, section 18 say that it will follow the
same procedure as followed by District Forum with such modifications
as necessary.
Similary,section22 empowers the Nation Commission to make
modifications in the procedure prescribed for the District Forum as per
its needs.
Note that earlier to the Amendment Act,2002(effective from 15 th
march,2003),power to make rules regarding the procedure to be
followed by the National commission was vested with the Central
Government.

 Provisions of section13 discusses about the procedure to

be followed by the District forum, or the state commission,
or the National commission, as the case may be, on the
receipt of a complaint. A complaint may be with respect to
the goods or services:
When the complaint related to goods, the criteria for
the decision is Whether the goods are defective or not. Now the question
is-how to hold that the goods are defective?
The most logical way is to get the goods tested to
determine the defect. However , in certain case defect can
be determined without technical support or it may happen
that the test is not feasible. They are:
The opposite party admits the defect.
The defect is obvious and is visible to naked eyes.
When the complaint is not in possession of the subjectmatter of the complaint.
When subject-matter of the complaint gets destroyed, like
in case a pressure cooker burst, its remain cannot be send
to the laboratory for testing.

Cases when the laboratory testing may not be

required or feasible:
Where the laboratory test is required to determine the
defect in the goods.
Where no laboratory test is required to determine the
defect in goods or the complaint relates to services under
two sub-headings:
How a complaint is dealt by consumer forums.
Procedure
to
be
followed
by
the
national
commission[ Sec 22 & Sec 22a].

How a complaint is dealt

by consumer forum
A consumer is supposed to file as many copies of the complaint as there
are judges. These copies are to be submitted, with all essential
information, supporting papers like correspondence, and specifying the
compensation demanded.
Every complaint filed should be accompanied with such amount of fee
and payable in such manner as may be prescribed.
(a) On receipt of a complaint: the district forum may allow the complaint
to be proceeded with or rejected. However, the complaint shall not be
rejected unless an opportunity of being heard has been given to the
complaint.
The admissibility of the complaint should ordinarily be decided
within 21 days from the date on which complaint was received .
(b) Within 21 days from the date of admission of complaint the District
forum should refer a copy of such complaint to the opposite party
directing him to give his version of the case within a period of 30 days
which has been extended to 45 days.

(c) Every complaint shall be heard as expeditiously as possible and endeavour

shall be made to decide the complaint within a period of 5 months in case
laboratory testing is not required , from the date of receipt of notice from the
opposite party.
And no adjournment shall be ordinarily granted by the district forum unless
sufficient cost is shown and the reasons for grant of adjournment have been
recorded in writing by the forum.
(d) where the laboratory test is required to determine the defects in goods.
When the opposite party on receipt of a complaint refer to him admits the
claim there is no contention and the forum will pass the appropriate order.
But where the opposite party denies or disputes the allegations contained
in the complaint or omits or fails to take any actions to represents his case
within the time given by the district forum, the district forum would take
the following steps to settle the disputes:
(1) the district forum may require the complaint to deposit the specified fees
for payment to the appropriate laboratory for carrying out the necessary
analysis or test in relation to the goods in question.
The district forum will remit such fees to the appropriate laboratory to enable
it to carry out required analysis or test.
(2) the district forum will obtain a sample of the goods, seal it, authenticate it
and refer the sample so sealed to the appropriate laboratory for an analysis or
test, whichever may be necessary with a view to find out whether such goods
suffer from any defects.

(3) upon receiving laboratory reports, its copy will be forwarded by

the district forum to the opposite party along with its own remarks.
(4) in the event of any party disputing the correctness of findings, or
the method of analysis or test adopted by appropriate laboratory,
the district forum shall require the objecting party to submit his
objection in writing.
(5) the district forum will give a opportunity of hearing to the
objecting party.
(e) where no laboratory test is required to determine the defect in
goods or the complaint related to service.
The opposite party on receipt of complaint referred to him may

(1.) admit the complaint

(2.) deny or disputes the allegations contained in the complaint, or
(3.) omits or fails to respond within the time given by the district forum

 Where the opposite party admits the allegations, the district

forum should decide the matter on the basis of merits of the case
and the documents before it.
Where the opposite party deny or dispute the allegation made in
the complaint, the district forum will proceed to settle the dispute
on the basis of evidence brought to its notice by both the parties.
Where the opposite party omits or fails to respond within the
time given by the forum, the district forum will proceed to settle
the ex-party on the basis of evidence brought to its notice by the
complainant.
(f) 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, and where the opposite
party omits or fail to take any actions, the forum shall decide the
dispute ex-party.

(g) Where during the pendency of any proceeding before the forum, it
appears to its necessary, it may pass such interim order as is just and
proper in the fact and circumstances of the case.
(h) The district forum shall issue an appropriate order after hearing the
parties and taking into account the available evidence.
What is the appropriate laboratory under the Act Section 2(1)(a)
of the act defines an appropriate laboratory as a laboratory or
organisation
(1) Recognised by central government,
(2) Recognised by state government, subject to such guidelines as may
be prescribed by the central government or 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.

Procedure to be followed by the

national commission[section 22& 22A]

Section 22 of the act provides that the provisions of

sections 12,13 & 14 and rules made there under for the
disposal of complaints by the district forum shall, with such
modifications be applicable to the disposal of disputes by
the national commissions.
where an order is passed by the national commissions exparte against the opposite party or a complaint as the case
may be , the aggrieved party may apply to the commission
to set aside the said order in the interest of justice
Further , the national commission shall have the power to
review any order made by it, when there is an error
apparent on the face of record.

SERVICE OF NOTICE[ SECTION28 A]

The act has laid down certain rules with respect to service of
notice:
(a) the service of notices may be made by delivering or
transmitting a copy there off the registered post acknowledgement
duly addressed to opposite party against whom complaint is made
or to the complaint by speed post or by such courier service as are
approved by the district forum , the state commission or the
national commission, as the case may be , or by any other means
of transmission of documents( including fax message)
(b) when an acknowledgement or any other receipt purporting to
be signed by the opposite party or his agent or by the complaint is
received by the district forum ,the state commission or the national
commission , as the case may be shall declare that the notice has
been duly served on the opposite party or to the complainant.

(c) when the postal article containing the notice is received back
by consumer forum ,with an endorsement to have been made by a
postal employee or by any person authorised but the courier
service to the effect that the opposite party or his agent or
complainant had refused to take delivery of the postal article
containing the notice or had refused to accept the notice by any
other means when tendered or transmitted to him, the forum shall
declare that the notice has been duly served on the opposite party
or to the complainant

(d) where the notice was properly addressed, prepaid and duly sent
by registered post acknowledgement has been lost or mislead, or
for any other reason, has not been received by the consumer
forum, within 30 days from the date of issue of notice, the forum
shall declare that the notice has been duly served on the opposite
party or the complainant.

POWERS OF THE CONSUMER

FORUMS[SECTIONS 13(4),14(1)&RULE
10]
1)Powers akin to those of civil court [section 13]:
The Consumer Forums are vested with the Civil Court powers with respect
to the following:
(a)Summoning and enforcing the attendance of any defendant or witness
and examining the witness on oath;
(b) Discovery and production of any document or other material object
producible evidence;
(c) Receiving of evidence on affidavits;
(d) Requisitioning of the report of the concerned analysis or test from the
appropriate laboratory or from any other relevant source;
(e) Issuing of any commission for the examination of any witness;
(f) The Forum may make such orders as to the costs occasioned by the
adjournment as may be provided in the regulations made under this Act;
(g) During the pendency of any proceedings before the Forum ,it may pass
such interim order as is just and proper in the facts and circumstances of
he case;
(h) Any other matter which may be prescribed.

2)Powers akin to those of criminal

court [Section 27]

The Consumer Forums shall be deemed to be a Judicial

Magistrate of the first class for the purpose of the Code of
Criminal Procedure ,1973.It means that as to the consumer
disputes dealt with by the Forums ,they can use the powers
which are granted to the first class judicial magistrate
under the Code of Criminal Procedure,1973.

3)Power to make summary judgement

The Consumer Forums have been granted power to try the

cases
on
summary
basis
by
the
Amendment
Act,2002(effective from 15th March,2003).
Summary trial means that the Forums need not consider
any evidence, they deal with the trial on the basis of
affidavits given by the parties.

4)Additional powers of the consumer forums

[Rule 10]

The National Commission ,the State Commission and the District Forum have
following additional powers:
a)Requiring production off any books,accounts,documents,or commodities from any
person ,examining and retaining them.
b)Obtaining information required for the purpose of the proceedings from any person.
c)Enter ans search any premises and seize from such premises books,
papers,documents,commodities required for the purpose of proceedings under the
Act.

5)Power to issue order[Section 14(1)]

If, after the proceedings ,the Forum is satisfied that the complainant suffer from any
defect in goods or deficiency in service, it may issue an order to the opposite party
directing them 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 I as compensation to the consumer for
any loss or injury suffered by the consumer due to the negligence of the opposite
party. As for the amount of damages ,the Consumer Forum has the power to grant
punitive damages as it deems fit;

To remove the defects in goods or deficiencies in the service 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 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 consumers
who are not identifiable conveniently,
To issue
corrective advertisement to neutralize the effect of
misleading advertisement at the cost of the opposite party
responsible for issuing such misleading advertisement;
To provide for adequate costs to parties.

Executory Powers [Section 25]

The Amendment Act ,2002,has vested the Consumer Forums with

the executory powers which they were lacking hitherto.These are
discussed belowWhere an interim order made under this Act is not compiled
with,the Consumer Forum may order for the attachment of the
property of the person not complying with such order.

b) If the non-compliance of such attachment order continues for more

than three
months, the property attached may be sold and out of the
proceeds thereof, the Consumer Forum may award such damages as it
thinks fit to the complainant and shall pay the balance , if any to the
party entitled thereto.
c) here under an order made by a Consumer Forum any amount is due
from any amount is due from any person, the person entitled to the
amount may make an application to the forum, and such may issue a
certificate for the said amount to the Collector of the district and the
Collector shall proceed to recover the amount in the same manner as
arrears of land revenue.

(7) Regulatory powers [Section 30 A]

The National Commission may, with the previous approval of the
Central Government by notification ,make regulations not inconsistent
with this Act to provide for all matters for which provision is
necessary or expedient for the purpose of giving effect to the
provisions of this Act.

SITTING OF THE FORUMS

33.7-1 Sitting of the District Forum [Section 14(2)]- For conducting any
proceedings to resolve a consumer dispute ,at least two members of the forum
must be there one of whom should be the president.

33.7-2 Sitting of the State Commission- Every proceeding is required to be

conducted by the president of the State Commission and at least one member
thereof sitting together.

33.7-3 Sitting of the National Commission The Act is silent about the sitting
requirement of the National Commission , but the
Consumer Protection
(Amendment) Rules,1991,require that the disputes must be disposed of by atleast
three members of the National Commission ,one of whom must be the President .
Moreover it says that the rules regarding sitting are mandatory. Any failure
to comply with the same may invalidate the order.
However the Consumer Protection (Amendment) Act,2002,has introduced
the concept of Benches, whereby the jurisdiction ,powers and authority of the
National Commission may be exercised by Benches thereof.
A Bench may be constituted b the President with one or more members as the
President may deem fit. Thus it seems that the spirit of the Act supports the sitting
of two members in total one of the whom must be the president,is capable of
passing a valid order.

ORDERS OF THE FORUMS

The orders of the Consumer Forums are like orders of the Civil Court and
are enforceable like a decree of the court. The order of a junior Forum is
appealable with the senior Forum ,and when no appeal is instituted ,the
order is final. However ,the law has prescribed certain norms as to the
signing of orders without complying which the orders cannot be made.

Signing of orders of the Forums

(1) District forum Section 14(2A) provides that every order made by the
District Forum shall be signed by its President and the member or
members who conducted the proceeding.
If there is difference of opinion between any two members, matter should
be referred to the third member for a decision .And the decision of the
majority would be final. Thus any order passed by a single member of the
District Forum is not warranted.
(2) State Commission Every order made by the National Commission
must be signed by its President and the member or members who
conducted the proceeding.
If there is difference of opinion between any two members ,matter
should be referred to the third member for a decision. And the decision of
the majority would be final.

Appeals against orders

Appeal is a legal instrumentality whereby a person not

satisfied with the findings of a court has an option to go to a
higher court to present his case and seek justice.

In the context of Consumer Forums1.An appeal can be made with the State Commission against
the order of the District Forum within 30 days of the order
which is extendable for further 15 days.
2.An appeal can be made with the National Commission
against the order of the State Commission within 30 days
of the order or within such time as the National Commission
allows.
3.An appeal can be made with the Supreme Court against the
order of the National Commission within 30 days of the
order or within such time as the Supreme Court allows.

Finality of orders

Where no appeal has been preferred against the order made by

the District Forum ,or State Commission ,or the National
Commission ,such order shall be final.

Penalties for non-compliance of orders

Every order made by the District Forum ,or State Commission ,or
the National Commission may be enforced in the same manner as
if it were a decree of the court.[Section 25]
All the persons- the trader ,or complainant,or the opposite party
are supposed to comply with the orders of the District Forum ,or
State Commission ,or the National Commission .When any such
person fails or omits to comply with the order ,the District
Forum ,or State Commission, or the National Commission as the
case may be, may punish him withImprisonment for a term ranging between one month and three
years ,or
With fine ranging between Rs.2,000 and Rs. 10,000, or
With both.

THANK
you