The NCDRC’s order did not accept the claim of medical professionals who argued that the doctor-patient relationship is similar to master – servant relationship, which is a contract of personal service that should be exempted from CPA. But the NCDRC’s order decreed that the doctor – patient relationship is a contract for personal service and it is not master – servant relationship. It is also said that the doctor is an independent contractor and the doctor, like the servant, is hired to perform a specific task. However, the master or principal (the hirer) is allowed to direct only what is to be done, and done, and when. The ‘how’ is left up to the specific discretion of the independent contractor (doctor). So, the doctor-patient relationship is a contract for personal service and as such, cannot be excluded from CPA.
Highlights of the Supreme Court of India judgment in
Indian Medical Association
Vs
V.P. Shantha and Others
As a result of this judgment, medical profession has been brought under the Section 2(1) (o) of CPA, 1986 and also, it has included the following categories of doctors/hospitals under this Section:
1. All medical / dental practitioners doing independent medical / dental practice unless rendering only free service.
2. Private hospitals charging all patients.
3. All hospitals having free as well as paying patients and all the paying and free category patients receiving treatment in such hospitals.
4. Medical / dental practitioners and hospitals paid by an insurance firm for the treatment of a client or an employment for that of an employee.
It exempts only those hospitals and the medical / dental practitioners of such hospitals which offer free service to all patients.
Further, this judgment concedes that the summary procedure prescribed by the CPA would suit only glaring cases of negligence and in complaints involving complicated issues requiring recording of the evidence of experts, the complainant can be asked to approach the civil courts.
Also, this judgment says that the deficiency in service means only negligence in a medical negligence case and it would be determined under CPA by applying the same test as is applied in an action for damages for negligence in a civil court.
As a result of this judgment, virtually all private and government hospitals and the doctors employed by them and the independent medical / dental practitioners except primary health centers, birth control measures, anti malaria drive and other such welfare activities can be sued under the CPA.
THE CONSUMER PROTECTION ACT, 1986
CHAPTER – I
PRELIMINARY
1.
Short title, extent, commencement and application
2.
Definitions
3.
Act not in derogation of any other law
CHAPTER – II
CONSUMER PROTECTION COUNCILS
4.
The Central Consumer Protection Council
5.
Procedure for meetings of the Central Council
6.
Objects of the Central Council
7.
The State Consumer Protection Councils
8.
Objects of the State Council
8A.
The District Consumer Protection Council
CHAPTER – III
CONSUMER DISPUTES REDRESSAL AGENCIES
9.
Establishment of Consumer Disputes Redressal Agencies
10.
Composition of the District Forum
11.
Jurisdiction of the District Forum
12.
Manner in which complaint shall be made
13.
Procedure on admission of complaint
14.
Finding of the District Forum
15.
Appeal
16.
Composition of the State Commission
17.
Jurisdiction of the State Commission
17A.
Transfer of cases
17B.
Circuit Benches
18.
Procedure applicable to State Commissions
19.
Appeals
19A.
Hearing of Appeal
20.
Composition of the National Commission
21.
Jurisdiction of the National Commission
22.
Power of and procedure applicable to the National Commission
22A.
Power to set aside ex parte orders
22B.
Transfer of cases
22C.
Circuit Benches
22D.
Vacancy in the Office of the President
23.
Appeal
24.
Finality of orders
24A.
Limitation period
24B.
Administrative Control
25.
Enforcement of orders of the District Forum, the State Commission or the National Commission
26.
Dismissal of frivolous or vexatious complaints
27.
Penalties
27A.
Appeal against order passed under section 27
CHAPTER – IV
MISCELLANEOUS
28.
Protection of action taken in good faith
28A.
Service of notice, etc.
29.
Power to remove difficulties
29A.
Vacancies or defects in appointment not to invalidate orders
30.
Power to make rules
30A.
Power of the National Commission to make regulations
31.
Rules and regulations to be laid before each House of Parliament
After including the amendments
made vide the Consumer Protection (Amendment) Act, 2002 [62 of 2002] which was
passed by Rajya Sabha on 11.4.2002, Lok Sabha on 30.7.2002{with some amendments}
and again by Rajya Sabha on 22.11.2002 and the President of India gave assent
on 17. 12.2002 and the notification was issue on 18.12.2002.The provisions
of the Act are being brought into force w.e.f. 15.3.2003.
Amendments are shown in bold & italic
form
The Consumer
Protection Act, 1986
(68 of
1986)
24th December; 1986
An Act to provide for better
protection of the interests of consumers and for that purpose to make provision
for the establishment of consumer councils and other authorities for the
settlement of consumers' disputes and for matters connected
therewith.
BE it enacted by Parliament in the
Thirty-seventh Year of the
Republic
of
India
as follows:—
PRELIMINARY
CONSUMER PROTECTION COUNCILS
CONSUMER DISPUTES REDRESSAL
AGENCIES
MISCELLANEOUS
CHAPTER
PRELIMINARY
1.Short title,
extent, commencement and application>—(1 ) This Act may be called the
Consumer Protection Act, 1986.
(2) It extends to the whole
of
except
the State of
Jammu and
Kashmir
(3) It shall come into force
on such date as the Central Government may, by notification, appoint and
different dates may be appointed for different States and for different
provisions of this Act.
(4) Save as otherwise
expressly provided by the Central Government by notification, this Act shall
apply to all goods and services.
2. Definitions. - (1) In this Act, unless the
context otherwise requires,—
(a)
"appropriate laboratory" means a laboratory or organisation—
(i)
recognised by the Central Government;
(ii)
recognised by a State Government, subject to such guidelines as may be
prescribed by the Central Government in this behalf; or
(iii) 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;
(aa) "branch office" means—
(i) any establishment described as a branch by the opposite party;
or
(ii) any establishment carrying on either the same or substantially the same
activity as that carried on by the head office of the
establishment;
(b) "complainant" means—
(i) a consumer; or
(ii) any voluntary consumer association registered under the Companies Act, 1956 (1of
1956)or under any other law for the time being in force; or
(iii) the Central Government or any State Government,
(iv) one or more consumers, where there are numerous consumers having the same
interest;
(v) in case of death of a consumer, his legal heir or representative; who or which
makes a complaint;
(c) "complaint" means any allegation in writing made by a complainant
that—
(i) an unfair trade practice or a restrictive trade practice has been adopted by any
trader or service provider;
(ii) the goods bought by him or agreed to be bought by him; suffer from one or more
defects;
(iii)
the services hired or availed of or agreed to be hired or availed of by him
suffer from deficiency in any respect;
(iv) a trader or service provider, as the case may be, has charged for the
goods or for the service mentioned in the complaint a price in excess of
the price –
(a) fixed by or under any
law for the time being in force
(b) displayed on the goods
or any package containing such goods ;
(c) displayed on the price
list exhibited by him by or under any law for the time being in
force
(d) agreed between the
parties;
(v) goods which will be hazardous to life and safety when used or being offered
for sale to the public,--
(A) in contravention of any
standards relating to safety of such goods as required to be complied
with, by or under any law for the time being in force;
(B)if the trader could have known
with due diligence that the goods so offered are unsafe to the
public;
(vi) services which are hazardous or likely to be hazardous to life and safety of the
public when used, are being offered by the service provider which such person
could have known with due diligence to be injurious to life and
safety;”;
(d) "consumer" means any
person who—
(i) buys any
goods for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment 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 such use is made with the approval of such person, but does not
include a person who obtains such goods for resale or for any commercial
purpose; or
(ii) hires or avails
of any services for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and
includes any beneficiary of such services other than the person who 'hires or
avails of the services for consideration paid or promised, or partly paid and
partly promised, or under any system of deferred payment, when such services are
availed of with the approval of the first mentioned person
but does not
include a person who avails of such services for any commercial
purposes
Explanation.— For the purposes of this
clause, “commercial purpose” does not include use by a person of goods bought
and used by him and services availed by him exclusively for the purposes of
earning his livelihood by means of self-employment;
(e) "consumer dispute" means
a dispute where the person against whom a complaint has been made, denies or
disputes the allegations contained in the complaint.
(f) "defect" means any
fault, imperfection or shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any law for the time
being in force under any contract, express or implied or as is claimed by the
trader in any manner whatsoever in relation to any goods;
"deficiency" means any fault,
imperfection, shortcoming or inadequacy in the quality, nature and manner
of performance which is required to be maintained by or under any law for the
time being in force or has been undertaken to be performed by a person in
pursuance of a contract or otherwise in relation to any service;
"District Forum" means
a Consumer Disputes Redressal Forum established under clause
(a) of section 9;
"goods" means goods as defined in
the Sale of Goods Act, 1930 (3 of 1930);
“manufacturer” means a person
who—
(i) makes or
manufactures any goods or part thereof; or
(ii) does not make or
manufacture any goods but assembles parts thereof made or manufactured by
others; or
(iii) puts or causes to be put his
own mark on any goods made or manufactured by any other
manufacturer;
Explanation. — Where a manufacturer dispatches
any goods or part thereof to any branch office maintained by him, such branch
office shall not be deemed to be the manufacturer even though the parts so
dispatched to it are assembled at such branch office and are sold or distributed
from such branch office;
(jj) "member" includes
the President and a member of the National Commission or a State Commission or a
District Forum, as the case may be;
(k) "National Commission"
means the National Consumer Disputes Redressal Commission established under
clause (c) of section 9;
(l) "notification"
means a notification published in the Official Gazette;
(m) "person" includes,—(i) a firm whether
registered or not;
(ii) a Hindu
undivided family;
(iii) a co-operative
society;
(iv) every other association
of persons whether registered under the Societies Registration Act, 1860 (21 of
1860) or not;
(n) "prescribed" means
prescribed by rules made by the State Government, or as the case may be, by
the Central Government under this Act;
(nn)“regulation” means the
regulations made by the National Commission under this Act;
(nnn)
“restrictive trade practice” means a trade practice which tends to bring about
manipulation of price or conditions of delivery or to affect flow of supplies in
the market relating to goods or services in such a manner as to impose on the
consumers unjustified costs or restrictions and shall
include—
(a) delay beyond the period
agreed to by a trader in supply of such goods or in providing the services which
has led or is likely to lead to rise in the price;
(b) any trade practice which
requires a consumer to buy, hire or avail of any goods or, as the case may be,
services as condition precedent to buying, hiring or availing of other goods or
services;
(o) "service" means
service of any description which is made available to potential users and
includes, but not limited to, the provision of facilities in connection
with banking, financing insurance, transport, processing, supply of electrical
or other energy, board or lodging or both, housing construction, entertainment,
amusement or the purveying of news or other information, but does not include
the rendering of any service free of charge or under a contract of personal
service;
(oo) “spurious goods and services”
mean such goods and services which are claimed to be genuine but they are
actually not so;
(p) "State Commission"
means a Consumer Disputes Redressal Commission established in a State under
clause (b) of section 9;
"trader" in relation to any goods
means a person who sells or distributes any goods for sale and includes the
manufacturer thereof, and where such goods are sold or distributed in package
form, includes the packer thereof;
"unfair trade
practice" means a trade practice which, for the purpose of promoting the sale,
use or supply of any goods or for the provision of any service, adopts any
unfair method or unfair or deceptive practice including any of the following
practices, namely;—
(1) the practice of
making any statement, whether orally or in writing or by visible representation
which,—
(i) falsely represents
that the goods are of a particular standard, quality, quantity, grade,
composition, style or model;
(ii) falsely represents that
the services are of a particular standard, quality or grade;
(iii) falsely represents any
re-built, second-hand, renovated, reconditioned or old goods as new
goods;
(iv) represents that the
goods or services have sponsorship, approval, performance, characteristics,
accessories, uses or benefits which such goods or services do not
have;
(v) represents that
the seller or the supplier has a sponsorship or approval or affiliation
which such seller or supplier does not have;
(vi) makes a false or
misleading representation concerning the need for, or the usefulness of,
any goods or services;
(vii) gives to the public any
warranty or guarantee of the performance, efficacy or length of life of a
product or of any goods that is not based on an adequate or proper test
thereof;
Provided that where a defence is raised to the effect that such warranty or
guarantee is based on adequate or proper test, the burden of proof of such
defence shall lie on the person raising such defence;
(viii)makes to the public a
representation in a form that purports to be—
(i) a warranty or
guarantee of a product or of any goods or services; or
(ii) a promise to
replace, maintain or repair an article or any part thereof or to repeat or
continue a service until it has achieved a specified result, if such purported
warranty or guarantee or promise is materially misleading or if there is no
reasonable prospect that such warranty, guarantee or promise will be
carried out;
(ix) materially misleads the
public concerning the price at which a product or like products or goods or
services, have been or are, ordinarily sold or provided, and, for this purpose,a representation as to price shall be deemed to refer to the price at which the
product or goods or services has or have been sold by sellers or provided by
suppliers generally in the relevant market unless it is clearly specified to be
the price at which the product has been sold or services have been provided by
the person by whom or on whose behalf the representation is made;
(x) gives false or
misleading facts disparaging the goods, services or trade of another
person.
Explanation. - For the purposes of clause (1), a
statement that is—
(a) expressed on an article offered or
displayed for sale, or on its wrapper or container; or
(b) expressed on anything attached to,
inserted in, or accompanying, an article offered or displayed for sale, or on
anything on which the article is mounted for display or sale; or
(c) contained
in or on anything that is sold, sent, delivered, transmitted or in any
other manner whatsoever made available to a member of the public,
shall be deemed to be a statement
made to the public by, and only by, the person who had caused the statement to
be so expressed, made or contained;
(2) permits the publication of any
advertisement whether in any newspaper or otherwise, for the sale or supply
at a bargain price, of goods or services that are not intended to be offered for
sale or supply at the bargain price, or for a period that is, and in quantities
that are, reasonable, having regard to the nature of the market in which the
business is carried on, the nature and size of business, and the nature of the
advertisement.
Explanation .—For the purpose of clause (2),
"bargaining price" means—
(a) a price that is stated in any
advertisement to be a bargain price, by reference to an ordinary price or
otherwise, or
(b) a price that a person who reads,
hears or sees the advertisement, would reasonably understand to be a bargain
price having regard to the prices at which the product advertised or like
products are ordinarily sold;
(3)
permits—
(a) the offering of gifts, prizes or
other items with the intention of not providing them as offered or creating
impression that something is being given or offered free of charge when it is
fully or partly covered by the amount charged in the transaction as a
whole;
(b) the conduct of any contest,
lottery, game of chance or skill, for the purpose of promoting, directly or
indirectly, the sale, use or supply of any product or any business
interest;
(3A) withholding from the
participants of any scheme offering gifts, prizes or other items free of charge,
on its closure the information about final results of the scheme.
Explanation. — For the purposes of
this sub-clause, the participants of a scheme shall be deemed to have been
informed of the final results of the scheme where such results are within a
reasonable time, published, prominently in the same newspapers in which the
scheme was originally advertised;
(4) permits the sale
or supply of goods intended to be used, or are of a kind likely to be used, by
consumers, knowing or having reason to believe that the goods do not comply with
the standards prescribed by competent authority relating to performance,
composition, contents, design, constructions, finishing or packaging as are
necessary to prevent or reduce the risk of injury to the person using the
goods;
(5) permits the
hoarding or destruction of goods, or refuses to sell the goods or to make them
available for sale or to provide any service, if such hoarding or destruction or
refusal raises or tends to raise or is intended to raise, the cost of those or
other similar goods or services.
(6) manufacture of
spurious goods or offering such goods for sale or adopts deceptive
practices in the provision of services.
(2)
Any reference in this Act to any other Act or provision thereof which is not in
force in any area to which this Act applies shall be construed to have a
reference to the corresponding Act or provision thereof in force in such
area.
3. Act not in
derogation of any other law.—The provisions of this Act shall
be in addition to and not in derogation of the provisions of any other law for
the time being in force.
CHAPTER
II
CONSUMER PROTECTION
COUNCILS
4. The Central
Consumer Protection Council.—(1) The Central Government shall , by notification, establish with effect from such date as it
may specify in such notification, a Council to be known as the Central Consumer
Protection Council (hereinafter referred to as the Central
Council).
(2) The Central
Council shall consist of the following members, namely:—
(a) the
Minister in charge of the consumer affairs in the Central Government, who shall
be its Chairman, and
(b) such number of other official or
non-official members representing such interests as may be
prescribed.
5. Procedure for
meetings of the
Central Council.—(1) The Central Council shall
meet as and when necessary, but at least one meeting of the Council shall be
held every year.
(2) The Central
Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as may
be prescribed.
6. Objects of the
Central Council.—The objects of the
Central Council shall be to promote and protect the rights of the consumers such
as,—
(a) the right
to be protected against the marketing of goods and services which are hazardous
to life and property;
(b) the right to be informed about the
quality, quantity, potency, purity, standard and price of goods or services, as
the case may be so as to protect the consumer against unfair trade practices;
(c) the right
to be assured, wherever possible, access to a variety of goods and services at
competitive prices;
(d) the right
to be heard and to be assured that consumer's interests will receive due
consideration at appropriate forums;
(e) the right
to seek redressal against unfair trade practices or restrictive trade practices
or unscrupulous exploitation of consumers; and
(f) the right
to consumer education.
7. The State
Consumer Protection Councils.- (1) The State Government shall,
by notification, establish with effect from such date as it may specify in such
notification, a Council to be known as the Consumer Protection Council
for..................... (hereinafter referred to as the State
Council).
(2) The State Council
shall consist of the following members, namely:—
(a) the Minister incharge of consumer
affairs in the State Government who shall be its Chairman;
(b) such number of other official or
non-official members representing such interests as may be prescribed by the
State Government.
(c) such
number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.
(3) The State Council
shall meet as and when necessary but not less than two meetings shall be held
every year.
(4) The State Council
shall meet at such time and place as the Chairman may think fit and shall
observe such procedure in regard to the transaction of its business as may be
prescribed by the State Government.
8. Objects of the
State Council.
— The objects of
every State Council shall be to promote and protect within the State the rights
of the consumers laid down in clauses (a) to (f) of section 6.
8A.
(1) The State Government shall establish for every district, by
notification, a council to be known as the District Consumer Protection Council
with effect from such date as it may specify in such
notification.
(2) The District
Consumer Protection Council (hereinafter referred to as the District Council)
shall consist of the following members, namely:—
(a) the Collector of the district (by
whatever name called), who shall be its Chairman; and
(b) such number of other official and
non-official members representing such interests as may be prescribed by the
State Government.
(3) The District
Council shall meet as and when necessary but not less than two meetings shall be
held every year.
(4) The District
Council shall meet at such time and place within the district as the Chairman
may think fit and shall observe such procedure in regard to the transaction of
its business as may be prescribed by the State Government.
8B.
The objects of every District Council shall be to promote and protect within the
district the rights of the consumers laid down in clauses (a) to (f) of
section 6.
CHAPTER
III
Establishment of
Consumer Disputes Redressal Agencies. - There shall be established for
the purposes of this Act, the following agencies, namely:—
(a) a Consumer Disputes
Redressal Forum to be known as the "District Forum" established by the State
Government in each district of the State by notification:
Provided that the State Government may, if it deems fit, establish more than one
District Forum in a district.
(b) a Consumer Disputes
Redressal Commission to be known as the "State Commission" established by the
State Government in the State by notification; and
(c) a National Consumer
Disputes Redressal Commission established by the Central Government by
notification.
10. Composition of the
District Forum. —
(1) Each District Forum shall consist of,—
(a) a person who is,
or has been, or is qualified to be a District Judge, who shall be its
President;
(b) two other members, one of whom
shall be a woman, who shall have the following qualifications,
namely:—
(i) be not less
than thirty-five years of age,
(ii) possess a
bachelor's degree from a recognised university,
(iii) be persons of ability,
integrity and standing, and have adequate knowledge and experience of at least
ten years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration:
Provided that a person shall be
disqualified for appointment as a member if he—
(a) has been convicted and
sentenced to imprisonment for an offence which, in the opinion of the state
Government involves moral turpitude; or
(b) is an undischarged
insolvent; or
(c) is of unsound mind and
stands so declared by a competent court; or
(d) has been removed or
dismissed from the service of the Government or a body corporate owned or
controlled by the Government; or
(e) has, in the opinion of
the state Government, such financial or other interest as is likely to affect
prejudicially the discharge by him of his functions as a member;
or
(f) has such other
disqualifications as may be prescribed by the State
Government;
(1A) Every appointment under
sub-section (I) shall be made by the State Government on the recommendation of a
selection committee consisting of the following, namely:—
(i) the President of
the State
Commission
— Chairman.
(ii) Secretary, Law
Department of the
State&
— Member.
(iii) Secretary incharge of the
Department dealing with
consumer affairs in the
State&
— Member.
Provided that where the President
of the State Commission is, by reason of absence or otherwise, unable to act as
Chairman of the Selection Committee, the State Government may refer the matter
to the Chief Justice of the High Court for nominating a sitting Judge of that
High Court to act as Chairman.
(2) Every member of the
District Forum shall hold office for a term of five years or up to the age of
sixty-five years, whichever is earlier:
Provided that a member shall be
eligible for re-appointment for another term of five years or up to the age of
sixty-five years, whichever is earlier, subject to the condition that he
fulfills the qualifications and other conditions for appointment mentioned in
clause (b) of sub-section (1) and such re-appointment is also made on the basis
of the recommendation of the Selection Committee:
Provided further that a member may
resign his office in writing under his hand addressed to the State Government
and on such resignation being accepted, his office shall become vacant and may
be filled by appointment of a person possessing any of the qualifications
mentioned in sub-section (1) in relation to the category of the member who is
required to be appointed under the provisions of sub-section (1A) in place of
the person who has resigned:
Provided also that a person
appointed as the President or as a member, before the commencement of the
Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as
President or member, as the case may be, till the completion of his
term.
(3) The salary or honorarium and
other allowances payable to, and the other terms and conditions of service of
the members of the District Forum shall be such as may be prescribed by the
State Government.
Provided that the appointment of a
member on whole-time basis shall be made by the State Government on the
recommendation of the President of the State Commission taking into
consideration such factors as may be prescribed including the work load of the
District Forum.
11. Jurisdiction of
the District Forum.—(1) Subject to the other
provisions of this Act, the District Forum shall have jurisdiction to entertain
complaints where the value of the goods or services and the compensation, if
any, claimed ''does not exceed rupees twenty lakhs.
(2) A complaint shall
be instituted in a District Forum within the local limits of whose
jurisdiction,—
(a) the opposite party or each of the
opposite parties, where there are more than one, at the time of the institution
of the complaint, actually and voluntarily resides or carries on business or has
a branch office or personally works for gain, or
(b) any of the opposite parties, where
there are more than one, at the time of the institution of the complaint,
actually and voluntarily resides, or carries on business or has a branch office,
or personally works for gain, provided that in such case either the permission
of the District Forum is given, or the opposite parties who do not reside, or
carry on business or have a branch office, or personally work for gain, as the
case may be, acquiesce in such institution; or
(c) the cause of action, wholly or in
part, arises.
12. Manner in
which complaint shall be made.—(1) A complaint in relation to any
goods sold or delivered or agreed to be sold or delivered or any service
provided or agreed to be provided may be filed with a District Forum by
–
(a) the consumer to whom
such goods are sold or delivered or agreed to be sold or delivered or such
service provided or agreed to be provided;
(b) any recognised consumer
association whether the consumer to whom the goods sold or delivered or agreed
to be sold or delivered or service provided or agreed to be provided is a member
of such association or not;
(c) one or more consumers,
where there are numerous consumers having the same interest, with the permission
of the District Forum, on behalf of, or for the benefit of, all consumers so
interested; or
(d) the Central Government
or the State Government, as the case may be, either in its
individual capacity or as a representative of interests of the consumers in
general.
(2) Every
complaint filed under sub-section (1) shall be accompanied with such amount of
fee and payable in such manner as may be prescribed.
(3) On receipt of a
complaint made under sub-section (1), the District Forum may, by order, allow
the complaint to be proceeded with or rejected:
Provided that a complaint shall
not be rejected under this section unless an opportunity of being heard has been
given to the complainant:
Provided further that the
admissibility of the complaint shall ordinarily be decided within twenty-one
days from the date on which the complaint was received.
(4) Where a complaint
is allowed to be proceeded with under sub-section (3), the District Forum
may proceed with the complaint in the manner provided under this
Act:
Provided that where a complaint
has been admitted by the District Forum, it shall not be transferred to any
other court or tribunal or any authority set up by or under any other law for
the time being in force.
Explanation. -
For the purpose of this section “recognised consumer association” means any
voluntary consumer association registered under the Companies Act, 1956 or any
other law for the time being in force”.
13. Procedure on admission of
complaint
. — (1) The District Forum shall,
on admission of a complaint, if it relates to any
goods,—
(a) refer a copy of the admitted
complaint, within twenty-one days from the date of its admission to the opposite
party mentioned in the complaint directing him to give his version of the case
within a period of thirty days or such extended period not exceeding fifteen
days as may be granted by the District Forum;
(b) where the opposite party on
receipt of a complaint referred to him under clause
(a) denies or
disputes the allegations contained in the complaint, or omits or fails to take
any action to represent his case within the time given by the District Forum,
the District Forum shall proceed to settle the consumer dispute in the manner
specified in clauses (c) to (g);
(c) where the complaint alleges a
defect in the goods which cannot be determined without proper analysis or test
of the goods, the District Forum shall obtain a sample of the goods from the
complainant, seal it and authenticate it in the manner prescribed and refer the
sample so sealed to the appropriate laboratory along with a direction that such
laboratory make an analysis or test, whichever may be necessary, with a view to
finding out whether such goods suffer from any defect alleged in the complaint
or from any other defect and to report its findings thereon to the District
Forum within a period of forty-five days of the receipt of the reference or
within such extended period as may be granted by the District Forum;
(d) before any sample of the goods is
referred to any appropriate laboratory under clause (c), the District Forum may
require the complainant to deposit to the credit of the Forum such fees as may
be specified, for payment to the appropriate laboratory for carrying out
the necessary analysis or test in relation to the goods in question;
(e) the District Forum shall remit the
amount deposited to its credit under clause (d) to the appropriate laboratory to
enable it to carry out the analysis or test mentioned in clause (c) and on
receipt of the report from the appropriate laboratory, the District Forum shall
forward a copy of the report along with such remarks as the District Forum may
feel appropriate to the opposite party;
(f) if any of the
parties disputes the correctness of the findings of the appropriate laboratory,
or disputes the correctness of the methods of analysis or test adopted by
the appropriate laboratory, the District Forum shall require the opposite party
or the complainant to submit in writing his objections in regard to the
report made by the appropriate laboratory;
(g) the District Forum shall
thereafter give a reasonable opportunity to the complainant as well as the
opposite party of being heard as to the correctness or otherwise of the report
made by the appropriate laboratory and also as to the objection made in
relation thereto under clause (/) and issue an appropriate order under section
14.
(2) the District Forum
shall, if the complaint admitted by it under section 12 relates to
goods in respect of which the procedure specified in sub-section (1) cannot be
followed, or if the complaint relates to any services,—
(a) refer a
copy of such complaint to the opposite party directing him to give his version
of the case within a period of thirty days or such extended period not exceeding
fifteen days as may be granted by the District Forum;
(b) where the opposite party, on
receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or
fails to take any action to represent his case within the time given by the
District Forum, the District Forum shall proceed to settle the consumer
dispute,—
(i) on the basis of
evidence brought to its notice by the complainant and the opposite party, where
the opposite party denies or disputes the allegations contained in the
complaint, or
(ii) ex parte on the
basis of evidence brought to its notice by the complainant where the opposite
party omits or fails to take any action to represent his case within the time
given by the Forum.
(c) 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.
(3) No proceedings complying
with the procedure laid down in subsections [1] and [2] shall be called in
question in any court on the ground that the principles of natural justice have
not been complied with.
(3A) Every complaint shall be
heard as expeditiously as possible and endeavour shall be made to decide the
complaint within a period of three months from the date of receipt of notice by
opposite party where the complaint does not require analysis or testing of
commodities and within five months if it requires analysis or testing of
commodities:
Provided that no adjournment shall
be ordinarily granted by the District Forum unless sufficient cause is shown and
the reasons for grant of adjournment have been recorded in writing by the
Forum:
Provided further that the District
Forum shall make such orders as to the costs occasioned by the adjournment as
may be provided in the regulations made under this Act.
Provided also that in the event of
a complaint being disposed of after the period so specified, the District
Forum shall record in writing, the reasons for the same at the time of disposing
of the said complaint.
(3B) Where during the pendency of
any proceeding before the District Forum, it appears to it necessary, it may
pass such interim order as is just and proper in the facts and circumstances of
the case.
(4) For the purposes of this
section, the District Forum shall have the same powers as are vested in a civil
court under Code of Civil Procedure, 1908 while trying a suit in respect of the
following matters, namely:—
(i) the summoning and
enforcing the attendance of any defendant or witness and examining the witness
on oath;
(ii) the discovery and
production of any document or other material object producible as
evidence;
(iii) the reception of
evidence on affidavits;
(iv) the requisitioning of
the report of the concerned analysis or test from the appropriate laboratory or
from any other relevant source;
(v) issuing of
any commission for the examination of any witness, and
(vi) any other matter which
may be prescribed.
(5) Every proceeding before
the District Forum shall be deemed to be a judicial proceeding within the
meaning of sections 193 and 228 of the Indian Code (45 of 1860), and the
District Forum shall be deemed to be a civil court for the purposes of section
195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of
1974).
(6) Where the complainant is
a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of
section 2, the provisions of rule 8 of Order I of the First Schedule to the Code
of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification
that every reference therein to a suit or decree shall be construed as a
reference to a complaint or the order of the District Forum thereon.
(7) In the event of death of
a complainant who is a consumer or of the opposite party against whom the
complaint has been filed, the provisions of Order XXII of the First Schedule to
the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the
modification that every reference therein to the plaintiff and the defendant
shall be construed as reference to a complainant or the opposite party, as the
case may be.
14. Finding of the
District Forum. — (1) If, after the proceeding
conducted under section 13, the District Forum is satisfied that the goods
complained against suffer from any of the defects specified in the complaint or
that any of the allegations contained in the complaint about the services are
proved, it shall issue an order to the opposite party directing him to do one or
more of the following things, namely:—
(a) to remove the defect pointed out
by the appropriate laboratory from the goods in question;
(b) to replace the goods with new
goods of similar description which shall be free from any defect;
(c) to return to the complainant the
price, or, as the case may be, the charges paid by the complainant;
(d) to pay such amount as may be
awarded by it as compensation to the consumer for any loss or injury suffered by
the consumer due to the negligence of the opposite party.
Provided that the District Forum
shall have the power to grant punitive damages in such circumstances as it deems
fit;
(e) to remove the defects in
goods or deficiencies in the services in question;
(f) to discontinue
the unfair trade practice or the restrictive trade practice or not to repeat
it;
(g) not to offer the hazardous goods
for sale;
(h) to withdraw the hazardous goods
from being offered for sale;
(ha)to cease manufacture of
hazardous goods and to desist from offering services which are hazardous in
nature;
(hb)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 of consumers who are not identifiable
conveniently:
Provided that the minimum amount
of sum so payable shall not be less than five per cent. of the value of such
defective goods sold or service provided, as the case may be, to such
consumers:
Provided further that the amount
so obtained shall be credited in favour of such person and utilized in such
manner as may be prescribed;
(hc)to issue corrective
advertisement to neutralize the effect of misleading advertisement at the cost
of the opposite party responsible for issuing such misleading
advertisement;
(i) to provide for
adequate costs to parties.
(2) Every proceeding
referred to in sub-section (1) shall be conducted by the President of the
District Forum and at least one member thereof sitting
together:
Provided that where a member, for
any reason, is unable to conduct a proceeding till it is completed, the
President and the other member shall continue the proceeding from the stage at
which it was last heard by the previous member.
(2A) Every order made by the
District Forum under sub-section (1) shall be signed by its President and the
member or members who conducted the proceeding:
Provided that where the proceeding
is conducted by the President and one member and they differ on any point or
points, they shall state the point or points on which they differ and refer the
same to the other member for hearing on such point or points and the opinion of
the majority shall be the order of the District Forum.
(3) Subject to the foregoing
provisions, the procedure relating to the conduct of the meetings of the
District Forum, its sittings and other matters shall be such as may be
prescribed by the State Government.
15. Appeal. — Any person aggrieved by an order
made by the District Forum may prefer an appeal against such order to the State
Commission within a period of thirty days from the date of the order, in such
form and manner as may be prescribed:
Provided that the State Commission
may entertain an appeal after the expiry of the said period of thirty days if it
is satisfied that there was sufficient cause for not finding it within that
period.
Provided further that no appeal by
a person, who is required to pay any amount in terms of an order of the District
Forum, shall be entertained by the State Commission unless the appellant has
deposited in the prescribed manner fifty per cent. of that amount or twenty-five
thousand rupees, whichever is less:
16. Composition of
the State Commission. — (1) Each State Commission
shall consist of—
(a) a person who is or has
been a Judge of a High Court, appointed by the State Government, who shall be
its President:
Provided that no appointment under
this clause shall be made except after consultation with the Chief Justice of
the High Court;
(b) not less than two, and
not more than such number of members, as may be prescribed, and one of whom
shall be a woman, who shall have the following qualifications,
namely:—
(i) be not less than
thirty-five years of age;
(ii) possess a bachelor's
degree from a recognised university; and
(iii) be persons of ability,
integrity and standing, and have adequate knowledge and experience of at least
ten years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration:
Provided that not more than fifty
per cent. of the members shall be from amongst persons having a judicial
background.
Explanation. — For the purposes of
this clause, the expression "persons having judicial background'' shall mean
persons having knowledge and experience for at least a period of ten years as a
presiding officer at the district level court or any tribunal at equivalent
level:
Provided further that a person
shall be disqualified for appointment as a member if he—
(a) has been convicted and
sentenced to imprisonment for an offence which, in the opinion of the State
Government, involves moral turpitude; or
(b) is an undischarged
insolvent; or
(c) is of unsound mind and
stands so declared by a competent
court; or
(d) has been removed or
dismissed from the service of the Government or a body corporate owned or
controlled by the Government; or
(e) has, in the opinion of
the State Government, such financial or other interest, as is likely to affect
prejudicially the discharge by him of his functions as a member;
or
(f) has such other
disqualifications as may be prescribed by the State
Government.
(1A)Every appointment under
sub-section (1) shall be made by the State Government on the recommendation of a
Selection Committee consisting of the following members,
namely:—
(i) President of
the State
Commission
--
Chairman;
(ii) Secretary of the
Law Department of the State
--
Member;
(iii) Secretary incharge of
the Department dealing
with Consumer Affairs in the
State
--
Member:
Provided that where the President
of the State Commission is, by reason of absence or otherwise, unable to act as
Chairman of the Selection Committee, the State Government may refer the matter
to the Chief Justice of the High Court for nominating a sitting Judge of that
High Court to act as Chairman.
(1B)(i) The
jurisdiction, powers and authority of the State Commission may be exercised by
Benches thereof.
(ii) A Bench may be
constituted by the President with one or more members as the President may deem
fit.
(iii) If the members of a Bench
differ in opinion on any point, the points shall be decided according to the
opinion of the majority, if there is a majority, but if the Members are equally
divided, they shall state the point or points on which they differ, and make a
reference to the President who shall either hear the point or points himself or
refer the case for hearing on such point or points by one or more or the other
members and such point or points shall be decided according to the opinion of
the majority of the members who have heard the case, including those who first
heard it.
(2) The salary or honorarium
and other allowances payable to, and the other terms and conditions of service
of, the members of the State Commission shall be such as may be prescribed by
the State Government.
Provided that the appointment of a
member on whole-time basis shall be made by the State Government on the
recommendation of the President of the State Commission taking into
consideration such factors as may be prescribed including the work load of the
State Commission.
(3) Every member of
the State Commission shall hold office for a term of five years or up to
the age of sixty-seven years, whichever is earlier:
Provided that a member shall be
eligible for re-appointment for another term of five years or up to the age of
sixty-seven years, whichever is earlier, subject to the condition that he
fulfills the qualifications and other conditions for appointment mentioned in
clause (b) of sub-section (1) and such re-appointment is made on the basis of
the recommendation of the Selection Committee:
Provided further that a person
appointed as a President of the State Commission shall also be eligible for
re-appointment in the manner provided in clause (a) of sub-section (1) of this
section:
Provided also that a member may
resign his office in writing under his hand addressed to the State Government
and on such resignation being accepted, his office shall become vacant and may
be filled by appointment of a person possessing any of the qualifications
mentioned in sub-section (1) in relation to the category of the member who is
required to be appointed under the provisions of sub-section (1A) in place of
the person who has resigned.
(4) Notwithstanding
anything contained in sub-section (3), a person appointed as the President or as
a member, before the commencement of the Consumer Protection (Amendment) Act,
2002, shall continue to hold such office as President or member, as the case may
be, till the completion of his term.
17. Jurisdiction
of the State Commission>—(1)Subject to the
other provisions of this Act, the State Commission shall have
jurisdiction—
(i) complaints where
the value of the goods or services and compensation, if any, claimed exceeds
rupees twenty lakhs but does not exceed rupees one
crore ; and
(ii) appeals against
the orders of any District Forum within the State; and
(b) to call for the records
and pass appropriate orders in any consumer dispute which is pending
before or has been decided by any District Forum within the State, where it
appears to the State Commission that such District Forum has exercised a
jurisdiction not vested in it by law, or has failed to exercise a jurisdiction
so vested or has acted in exercise of its jurisdiction illegally or with
material irregularity.
(2) A complaint shall be
instituted in a State Commission within the limits of whose
jurisdiction,—
(a) the opposite party or
each of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides or carries on
business or has a branch office or personally works for gain; or
(b) any of the opposite
parties, where there are more than one, at the time of the institution of the
complaint, actually and voluntarily resides, or carries on business or has a
branch office or personally works for gain, provided that in such case either
the permission of the State Commission is given or the opposite parties who do
not reside or carry on business or have a branch office or personally work for
gain, as the case may be, acquiesce in such institution; or
(c) the cause of action,
wholly or in part, arises.
17A.
Transfer of cases. -
On the application of the
complainant or of its own motion, the State Commission may, at any stage of the
proceeding, transfer any complaint pending before the District Forum to another
District Forum within the State if the interest of justice so
requires.
17B.
Circuit Benches.-
The State Commission shall
ordinarily function in the State Capital but may perform its functions at such
other place as the State Government may, in consultation with the State
Commission, notify in the Official Gazette, from time to time.
18. Procedure
applicable to State Commissions.—The provisions of Sections 12, 13
and 14 and the rules made thereunder for the disposal of complaints by the
District Forum shall, with such modifications as may be necessary, be applicable
to the disposal of disputes by the State Commission.
( 18A. Omitted
)
l9. Appeals.—Any person aggrieved by an order
made by the State Commission in exercise of its powers conferred by sub-clause
(i) of clause (a) of section 17 may prefer an appeal against such order to the
National Commission within a period of thirty days from the date of the order in
such form and manner as may be prescribed:
Provided that the National
Commission may entertain an appeal after the expiry of the said period of thirty
days if it is satisfied that there was sufficient cause for not filing it
within that period.
Provided further that no appeal by
a person, who is required to pay any amount in terms of an order of the State
Commission, shall be entertained by the National Commission unless the appellant
has deposited in the prescribed manner fifty per cent. of the amount or rupees
thirty-five thousand, whichever is less:
19A.
Hearing of Appeal -
An appeal filed before the State
Commission or the National Commission shall be heard as expeditiously as
possible and an endeavour shall be made to finally dispose of the appeal within
a period of ninety days from the date of its admission:
Provided that no adjournment shall
be ordinarily granted by the State Commission or the National Commission, as the
case may be, unless sufficient cause is shown and the reasons for grant of
adjournment have been recorded in writing by such Commission:
Provided further that the State
Commission or the National Commission, as the case may be, shall make such
orders as to the costs occasioned by the adjournment as may be provided in the
regulations made under this Act.
Provided also that in the event of
an appeal being disposed of after the period so specified, the State Commission
or, the National Commission, as the case may be, shall record in writing the
reasons for the same at the time of disposing of the said
appeal.
20. Composition of
the National Commission.—(1) The National Commission shall
consist of—
(a) a person who is or has been a
Judge of the Supreme Court, to be appointed by the Central Government, who shall
be its President;
Provided that no appointment under
this clause shall be made except after consultation with the Chief Justice of
India;
(b) not less than four, and
not more than such number of members, as may be prescribed, and one of whom
shall be a woman, who shall have the following qualifications,
namely:—
(i) be not less than
thirty-five years of age;
(ii) possess a bachelor's
degree from a recognised university; and
(iii) be persons of ability,
integrity and standing and have adequate knowledge and experience of at least
ten years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration:
Provided that not more than fifty
per cent. of the members shall be from amongst the persons having a judicial
background.
Explanation. —
For the purposes of this clause, the expression "persons having judicial
background'' shall mean persons having knowledge and experience for at least a
period of ten years as a presiding officer at the district level court or any
tribunal at equivalent level:
Provided further that a person
shall be disqualified for appointment if he—
(a) has been
convicted and sentenced to imprisonment for an offence which, in the opinion of
the Central Government, involves moral turpitude; or
(b) is an undischarged
insolvent; or
(c) is of
unsound mind and stands so declared by a competent court; or
(d) has been removed
or dismissed from the service of the Government or a body corporate owned or
controlled by the Government; or
(e) has in the
opinion of the Central Government such financial or other interest as is likely
to affect prejudicially the discharge by him of his functions as a member;
or
(f) has such other disqualifications as may be prescribed
by the Central Government :
Provided also that every
appointment under this clause shall be made by the Central Government on the
recommendation of a selection committee consisting of the following,
namely:—
(a) a person who is a
Judge of the Supreme
Court,
— Chairman;
to
be nominated by the Chief Justice of
India
(b) the Secretary in
the Department of Legal
Affairs
— Member;
in the Government of
India
(c) Secretary of the
Department dealing with
consumer —
Member.;
affairs in the Government of
India
(1A)(i) The
jurisdiction, powers and authority of the National Commission may be exercised
by Benches thereof.
(ii) A Bench may be
constituted by the President with one or more members as the President may deem
fit.
(iii) if the Members of a
Bench differ in opinion on any point, the points shall be decided according to
the opinion of the majority, if there is a majority, but if the members are
equally divided, they shall state the point or points on which they differ, and
make a reference to the President who shall either hear the point or points
himself or refer the case for hearing on such point or points by one or more or
the other Members and such point or points shall be decided according to the
opinion of the majority of the Members who have heard the case, including those
who first heard it.
(2) The salary or
honorarium and other allowances payable to and the other terms and conditions of
service of the members of the National Commission shall be such as may be
prescribed by the Central Government.
(3) Every member of
the National Commission shall hold office for a term of five years or up to the
age of seventy years, whichever is earlier:
Provided that a member shall be
eligible for re-appointment for another term of five years or up to the age of
seventy years, whichever is earlier, subject to the condition that he fulfills
the qualifications and other conditions for appointment mentioned in clause (b)
of sub-section (1) and such re-appointment is made on the basis of the
recommendation of the Selection Committee:
Provided further that a person
appointed as a President of the National Commission shall also be eligible for
re-appointment in the manner provided in clause (a) of sub-section (1)
:
Provided also that a member may
resign his office in writing under his hand addressed to the Central Government
and on such resignation being accepted, his office shall become vacant and may
be filled by appointment of a person possessing any of the qualifications
mentioned in sub-section (1) in relation to the category of the member who is
required to be appointed under the provisions of sub-section (1A) in place of
the person who has resigned.
(4) Notwithstanding
anything contained in sub-section (3), a person appointed as a President or as a
member before the commencement of the Consumer Protection (Amendment) Act, 2002
shall continue to hold such office as President or member, as the case may be,
till the completion of his term.
21. Jurisdiction
of the National Commission. — Subject to the other provisions
of this Act, the National Commission shall have jurisdiction—
(a) to entertain—(i) complaints where
the value of the goods or services and compensation, if any, claimed exceeds
rupees
one crore; and
(ii) appeals against the
orders of any State Commission; and
(b) to call for the records
and pass appropriate orders in any consumer dispute which is pending before
or has been decided by any State Commission where it appears to the National
Commission that such State Commission has exercised a jurisdiction not vested in
it by law, or has failed to exercise a jurisdiction so vested, or has acted in
the exercise of its jurisdiction illegally or with material
irregularity.
22.
Power of and procedure applicable to the National Commission. — (1) The provisions of
sections 12, 13 and 14 and the rules made thereunder for the disposal of
complaints by the District Forum shall, with such modifications as may be
considered necessary by the Commission, be applicable to the disposal of
disputes by the National Commission.
(2) Without
prejudice to the provisions contained in sub-section (1), 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.
22A. Power
to set aside ex parte orders. - Where an order is passed by the
National Commission ex parte against the opposite party or a complainant, as the
case may be, the aggrieved party may apply to the Commission to set aside the
said order in the interest of justice.
22B.
Transfer of cases - On the application of the
complainant or of its own motion, the National Commission may, at any stage of
the proceeding, in the interest of justice, transfer any complaint pending
before the District Forum of one State to a District Forum of another State or
before one State Commission to another State Commission.
22C.
Circuit Benches - The National Commission shall
ordinarily function at New Delhi and perform its functions at such other place
as the Central Government may, in consultation with the National
Commission, notify in the Official Gazette, from time to
time.
22D.
Vacancy in the Office of the President - When the office of President of a
District Forum, State Commission, or of the National Commission, as the case may
be, is vacant or a person occupying such office is, by reason of absence or
otherwise, unable to perform the duties of his office, these shall be performed
by the senior-most member of the District Forum, the State Commission or of the
National Commission, as the case may be:
Provided that where a retired
Judge of a High Court is a member of the National Commission, such member or
where the number of such members is more than one, the senior-most person among
such members, shall preside over the National Commission in the absence of
President of that Commission.
23.
Appeal. — Any
person, aggrieved by an order made by the National Commission in exercise of its
powers conferred by sub-clause (i) of clause (a) of section 21, may
prefer an appeal against such order of the Supreme Court within a period of
thirty days from the date of the order:
Provided that the Supreme Court
may entertain an appeal after the expiry of the said period of thirty days if it
is satisfied that there was sufficient cause for not filing it within that
period.
Provided further that no appeal by
a person who is required to pay any amount in terms of an order of the National
Commission shall be entertained by the Supreme Court unless that person has
deposited in the prescribed manner fifty per cent. of that amount or rupees
fifty thousand, whichever is less.
24.
Finality of orders. — Every order of a District Forum,
the State Commission or the National Commission shall, if no appeal has been
preferred against such order under the provisions of this Act, be
final.
24A. Limitation period. - (l) The District Forum, the State Commission or
the 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.
(2) Notwithstanding anything
contained in sub-section (1), a complaint may be entertained after the period
specified in sub-section (l), if the complainant satisfies the District Forum,
the State Commission or the National Commission, as the case may be, that he had
sufficient cause for not filing the complaint within such period:
Provided that no such complaint
shall be entertained unless the National Commission, the State Commission or the
District Forum, as the case may be, records its reasons for condoning such
delay.
24B.
Administrative Control.—(1) The National Commission shall
have administrative control over all the State Commissions in the following
matters, namely:—
(i) calling for
periodical return regarding the institution, disposal pendency of
cases;
(ii) issuance of
instructions regarding adoption of uniform procedure in the hearing of
matters, prior service of copies of documents produced by one party to the
opposite parties, furnishing of English translation of judgments written in any
language, speedy grant of copies of documents;
(iii) generally overseeing
the functioning of the State Commissions or the District Fora to ensure
that the objects and purposes of the Act are best served without in any way
interfering with their q uasi-judicial freedom.
(2) The State Commission
shall have administrative control over all the District Fora within its
jurisdiction in all matters referred to in sub-section (1).
25.
Enforcement of orders of the District Forum, the State Commission or the
National Commission . — (1) Where an interim order
made under this Act, is not complied with the District Forum or the State
Commission or the National Commission, as the case may be, may order the
property of the person, not complying with such order to be
attached.
(2) No attachment made under
sub-section (1) shall remain in force for more than three months at the end of
which, if the non-compliance continues, the property attached may be sold and
out of the proceeds thereof, the District Forum or the State Commission or the
National Commission may award such damages as it thinks fit to the complainant
and shall pay the balance, if any, to the party entitled thereto.
(3) Where any amount is due
from any person under an order made by a
District Forum, State Commission or
the National Commission, as the case may be, the person entitled to the amount
may make an application to the District Forum, the State Commission or the
National Commission, as the case may be, and such District Forum or the State
Commission or the National Commission may issue a certificate for the said
amount to the Collector of the district (by whatever name called) and the
Collector shall proceed to recover the amount in the same manner as arrears of
land revenue.
26.
Dismissal of frivolous or vexatious complaints. — Where a complaint instituted
before the District Forum, the State Commission or as the case may be, the
National Commission, is found to be frivolous or vexatious, it shall, for
reasons to be recorded in writing, dismiss the complaint and make an order that
the complainant shall pay to the opposite party such cost, not exceeding ten
thousand rupees, as may be specified in the order
27.
Penalties. — (1) Where a trader or a person
against whom a complaint is made or the complainant fails or omits to comply
with any order made by the District Forum, the State Commission or the National
Commission, as the case may be, such trader or person or complainant shall be
punishable with imprisonment for a term which shall not be less than one month
but which may extend to three years, or with fine which shall not be less than
two thousands rupees but which may extend to ten thousand rupees, or with
both:
(2) Notwithstanding anything
contained in the Code of Criminal Procedure, 1973, (2 of 1974), the District
Forum or the State Commission or the National Commission, as the case may be,
shall have the power of a Judicial Magistrate of the first class for the trial
of offences under this Act, and on such conferment of powers, the District Forum
or the State Commission or the National Commission, as the case may be, on whom
the powers are so conferred, shall be deemed to be a Judicial Magistrate of the
first class for the purpose of the Code of Criminal Procedure, 1973 (2 of
1974).
(3) All offences under this
Act may be tried summarily by the District Forum or the State Commission or the
National Commission, as the case may be.
27A.
Appeal against order passed under section 27 - (1) Notwithstanding anything
contained in the Code of Criminal Procedure, 1973 (2 of 1974), an appeal under
section 27, both on facts and on law, shall lie from -
(a) the
order made by the District Forum to the State Commission ;
(b) the order
made by the State Commission to the National Commission; and
(c) the order
made by the National Commission to the Supreme Court.
(2) Except as aforesaid, no
appeal shall lie to any court from any order of a District Forum or a State
Commission or the National Commission.
(3) Every appeal under this
section shall be preferred within a period of thirty days from the date of an
order of a District Forum or a State Commission or, as the case may be, the
National Commission :
Provided that the State Commission
or the National Commission or the Supreme Court, as the case may be, may
entertain an appeal after the expiry of the said period of thirty days, if, it
is satisfied that the appellant had sufficient cause for not preferring the
appeal within the period of thirty days.
CHAPTER IV
MISCELLANEOUS
28.
Protection of action taken in good faith. — No suit, prosecution or other
legal proceedings shall lie against the members of the District Forum, the State
Commission or the National Commission or any officer or person acting under the
direction of the District Forum, the State Commission or the National Commission
for executing any order made by it or in respect of anything which is in good
faith done or intended to be done by such member, officer or person under this
Act or under any rule or order made thereunder.
28A.
Service of notice, etc. - (1) All notices required by this
Act to be served shall be served in the manner hereinafter mentioned in
sub-section (2).
(2) The service of notices
may be made by delivering or transmitting a copy thereof by registered post
acknowledgment due addressed to opposite party against whom complaint is made or
to the complainant 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).
(3) When an acknowledgment
or any other receipt purporting to be signed
by the opposite party or his
agent or by the complainant is received by the District Forum, the State
Commission or the National Commission, as the case may be, or postal article
containing the notice is received back by such District Forum, State Commission
or the National Commission, with an endorsement purporting to have been made by
a postal employee or by any person authorized by 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 specified in sub- section (2) when tendered or
transmitted to him, the District Forum or the State Commission or the National
Commission, as the case may be, shall declare that the notice had been duly
served on the opposite party or to the complainant :
Provided that where the notice was
properly addressed, pre-paid and duly sent by registered post acknowledgment
due, a declaration referred to in this sub-section shall be made notwithstanding
the fact that the acknowledgment has been lost or mislaid, or for any other
reason, has not been received by the District Forum, the State Commission or the
National Commission, as the case may be, within thirty days from the date of
issue of notice.
(4) All notices required to
be served on an opposite party or to complainant shall be deemed to be
sufficiently served, if addressed in the case of the opposite party to the place
where business or profession is carried and in case of complainant, the place
where such person actually and voluntarily resides.
29.
Power to remove difficulties.—(l) If any difficulty arises in
giving effect to the provisions of this Act, the (Central Government may, by
order in the official Gazette, make such provisions not inconsistent with the
provisions of this Act as appear to it to be necessary or expedient for removing
the difficulty :
Provided that no such order shall
be made after the expiry of a period of two years from the commencement of this
Act
(2) Every order made under
this section shall, as soon as may be after it is made be laid before each House
of Parliament
(3) If any difficulty arises
in giving effect to the provisions of the Consumer Protection (Amendment) Act,
2002, the Central Government may, by order, do anything not inconsistent with
such provisions for the purpose of removing the difficulty:
Provided that no such order shall
be made after the expiry of a period of two years from the commencement of the
Consumer Protection (Amendment) Act, 2002.
(4) Every order made under
sub-section (3) shall be laid before each House of Parliament.
29A.
Vacancies or defects in appointment not to invalidate orders.—No act or proceeding of the
District Forum, the State Commission or the National Commission shall be invalid
by reason only of the existence of any vacancy amongst its member or any defect
in the constitution thereof.
30.
Power to make rules. - (1) The Central Government may, by
notification, make rules for carrying out the provisions contained in clause (a)
of sub-section (1) of section 2, clause (b) of sub-section (2) of section 4,
sub-section (2) of section 5, sub-section (2) of section 12, clause (vi) of
sub-section (4) of section 13, clause (hb) of sub-section (1) of section 14,
section 19, clause (b) of sub-section (1) and sub-section (2) of section 20,
section 22 and section 23 of this Act.
(2) The State Government
may, by notification, make rules for carrying out the provisions contained in
clause (b) of sub-section (2) and sub-section (4) of section 7, clause (b) of
sub-section (2) and sub-section (4) of section 8A, clause (b) of sub-section (1)
and sub-section (3) of section 10, clause (c) of sub-section (1) of section 13
clause (hb) of sub-section (1) and sub-section (3) of section 14, section 15 and
clause (b) of sub-section (1) and sub-section (2) of section 16 of this
Act.
30A. Power
of the National Commission to make regulations - (1) 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.
(2) In particular and
without prejudice to the generality of the foregoing power, such regulations may
make provisions for the cost of adjournment of any proceeding before the
District Forum, the State Commission or the National Commission, as the case may
be, which a party may be ordered to pay.
31.
Rules and regulations to be laid before each House of Parliament - (1) Every
rule and every regulation made under this Act shall be laid, as soon as may be
after it is made, before each House of Parliament, while it is in session, for a
total period of thirty days which may be comprised in one session or in two or
more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or regulation or both Houses agree that the
rule or regulation should not be made, the rule or regulation shall thereafter
have effect only in such modified form or be of no effect, as the case may be;
so, however, that any such modification or annulment shall be without prejudice
to the validity of anything previously done under that rule or
regulation.
(2) Every rule made by a
State Government under this Act shall be laid as soon as may be after it is
made, before the State Legislature. |