Contents
INTRODUCTION
The era of laissez faire
Effect of advertisements on consumers
Brief history of Consumer Law
Genesis of Consumer Protection Laws
The Consumer Protection Act, 1986
Main Objective of the Consumer Protection Act of 1986
The Basic Rights of Consumers Sought to be Protected
Need for Consumer Law
Consumer Disputes Redressal FORA
Reliefs available under the Act
Appeal by aggrieved party
Consumer Protection Law of the New Millennium
The Consumer Protection (Amendment) Act, 2003—Highlights
The Consumer Protection Act, 2019
The Consumer Protection Act, 1986 and The Consumer
Protection Act, 2019 : Comparative Chart
PRELIMINARY
1. Short title, extent, commencement and application
Extent and application of the Act
Salient Features of the 2019 Act
2. Definitions
CLAUSE-WISE COMMENTS ON SPECIFIC DEFINITIONS
‘Appropriate Laboratory’ [Section 2(2)]
Complainant [Section 2(5)]
Closure of Bank Account
Builder
Beneficiary of Services
Fresh complaint not permissible directly before the National Commission
Lump-sum purchase for resale or trading—Not consumer
Locus standi
Estoppel
Housing activities are covered under Consumer Protection Act
Government Servant under CGHS not a consumer
Maintainability of cause before Fora
Complaint : [Section 2(6)]
Complaint against Airlines
Complaint against Bank
Complaint against defective goods
Complaint against Railways
Complaint maintainable where causes of action are different
A Trust cannot be a Complainant Matter sub-judice not maintainable before Consumer
Forum/Commission
Supreme Court's guidelines to Consumer Fora for speedy disposal of complaints
Conditions when complaint is maintainable
When the complaint is not maintainable
Consumer [Section 2(7)]
Highway users not consumers
Tenant is not a consumer
Widow is ‘consumer’ for insurance company
A Person Purchasing goods for Commercial Purposes is not a consumer
Agents are not consumers
Acceptance of Tender of the complainant does not make him a consumer
Borrowing (loan) from Bank does not make the borrower a customer of the Bank for the purpose of Consumer Protection Act
Investor in UTI Schemes is a consumer
Bank cannot be a consumer
Book Seller is not a consumer hence his complaint is bound to be dismissed
Student is a consumer for University/Board
A Charitable Society or a Trust is a consumer
Position of Beneficiary as a consumer
Involuntary Consumers
‘Consumer Dispute’ [Section 2(8)]
Death due to live electric wire lying unattended on the road
Dispute regarding grant of licence for sheds-not a consumer dispute
Payment of Application fee for the post advertised does not make the applicant a consumer
Mob-violence in a railway reserved bogie—railways held liable for deficiency in service
‘Defect’ [Section 2(10)]
Books with basic mistake and incorrect information are ‘defective goods’ within the meaning of Section 2(10) of Consumer Protection Act, 2019
Defect in soft drink
Adulterated cooking oil actionable as ‘defective goods’
Motor Vehicle defective
False news in newspaper does not make it as defective newspaper
Defect within warranty period entitles for compensation
‘Deficiency’: [Section 2(11)]
Carrot seed
Airport Escalator not functioning properly
Deficiency in service in Bank cases
Non-issue of passbook by Bank amounts to deficiency in-service
Courier Service—Deficiency in service
Educational Institutions—Deficiency in Service
Charging coaching fee in lump sum
Refund of Fees
Deficiency in service—Electricity cases
Deficiency in Service—Corporate Sector
Deficiency in service—Insurance claims
Deficiency in service—Supply of LPG Cylinder
Deficiency in service due to Medical negligence
Deficiency in Postal Service
Deficiency in Municipal Services
Deficiency in Service by Builders/Developers
Deficiency in service—Railways
Deficiency in Service—Use of unfair trade practices in Sale of Goods
Deficienty in service in Joy ride cases
Deficiency in Service by Builders and Development authorities
Drowning in Swimming Pool
Deficiency in Hire-Purchase Services
“Goods” [Section 2(21)]
Electricity and gas are covered within the meaning of the term goods
Commercial purpose distinguished from commercial use
Caveat emptor Rule
Conditions and Warranties
Price of Goods
Manufacturer [Section 2(24)]
‘Member’ [Section 2(27)]
National Commission [Section 2(29)]
Notification [Section 2(30)]
'Person’ [Section 2(31)]
‘Prescribed’ [Section 2(32)]
‘Regulations’ [Section 2(39)]
‘Restrictive trade practice’ [Section 2(41)]
‘Service’ [Section 2(42)]
Services rendered free of charge
Seivices rendered under ‘contract of personal service’
Contract of Service and Contract for service
Medical Services
Service rendered by Carrier
Banking service constituted ‘service’ within the ambit of Section 2(l)(o) of Consumer Protection Act
‘Education’ as service
Service—Builders, Developers, Housing Board etc.
Insurance Service
Telephone Service
Where there is no commitment to supply of Instrument with on-board laundry facility non-supply thereof will not amount to deficiency in service
Delay in supply of cement purchased from seller—Does it amount to deficiency in service ?
“Spurious goods” [Section 2(43)]
‘State Commission’ [Section 2(44)]
‘Trader’ [Section 2(45)]
‘Unfair trade practice’ [Section 2(47)]
Deceptive advertisement is an unfair trade practice
Special offer of 15 gms gold as gift for pruchaser of Maruti 800 car defaulted—It is a unfair trade practice
Chips found less in weight
Scratch and win scheme
Misleading Star Cruise advertisement
Admission of the Students without seeking affiliation from University
Defective functioning of mobile phone
CHAPTER II
CONSUMER PROTECTION COUNCILS
The Central Consumer Protection Council
4. Procedure for meetings of the Central Council
5. Object of the Central Council
6. State Consumer Protection Councils
7. Objects of the State Council
8. The District Consumer Protection Council
9. Objects of the District Council
CHAPTER III
CENTRAL CONSUMER PROTECTION AUTHORITY
10. Establishment of Central Consumer Protection Authority
11. Qualifications, method of recruitment, etc., of Chief
Commissioner and Commissioners
12. Vacancy, etc., not to invalidate proceedings of Central Authority
13. Appointment of officers, experts, professionals and other employees of Central Authority
14. Procedure of Central Authority
15. Investigation Wing
16. Power of District Collector
17. Complaints to authorities
18 Powers and Functions of Central Authority
19 Power of Central Authority to refer matter for investigation or to other Regulator.
20. Power of Central Authority to recall goods etc.
21. Power of Central Authority to issue direction and penalties against false or misleading advertisements.
22 Search and Seizure
23. Designation of any statutory authority or body to function as Central Authority
24. Appeal
25. Grants by Central Government
26. Accounts and audit
27. Furnishing of annual reports, etc.
CHAPTER IV
CONSUMER DISPUTES REDRESSAL COMMISSION
Nature and Scope of Remedies/Reliefs available under the Act.
DISTRICT CONSUMER COMMISSION
28. Establishment of District Consumer Disputes Redressal Commission
29. Qualifications etc. of President and Members of District Commission
30. Salaries, allowances and other terms and conditions of service of President and Members of District Commission
31. Transitional Provisions
32. Vacancy in office of member of District Commission
33. Officers and other employees of District Commission
34. Jurisdiction of District Commission
Jurisdiction of the District Commission
Admissibility of the Complaint
Forum has no jurisdiction to order an inquiry into misconduct of opposite party
Power to review
Pecuniary Jurisdiction
Service Matters excluded from Commission’s jurisdiction
Misuse of jurisdiction
Fora’s have no Power to set aside its own ex-parte order
Forum’s jurisdiction is additional in nature
35. Manner in which complaint shall be made
36. Proceeding before District Commission
37. Reference to Mediation
Complainant to come before the Commission with clean hands
Evidence of Affidavit
District Commission to follow its own procedure
Forum cannot award both, compensation and interest at the same time
District Commission cannot bar right of party to appeal
Dismissal of Appeal in default not proper
Appeal against the order of District Commission
38. Procedure on admission of a complaint
Appointing Commissioner for local inspection etc.
Commission not to adjudicate when company is in the process of winding up
Maintainability of Second complaint to District Commission when first complaint is dismissed for default or non-prosecution
Consumer Commission have no power of review
Exclusion of Commission’s Jurisdiction
Overall effect of Section 38 of the Consumer Protection Act
39. Findings of the District Commission
40. Review by District Commission in certain cases
41. Appeal against Order of District Commission
Procedure for filing and hearing of appeal
Legality of requirement of depositing 50 per cent amount in the manner as may be prescribed
Limitation for filing Appeal
Maintainability of appeal
High Court not to act as Court of appeal in consumer cases
STATE CONSUMER COMMISSION
42. Establishment of State Consumer Disputes Redressal Commission
43. Qualifications etc. of President and Members of State Commission
44. Salaries, allowances and other terms of Conditions of Service of President and members of State Commission etc.
45. Transitional Provision
46. Officers and employees of State Commission
47. Jurisdiction of State Commission
48. Transfer of cases
49. Procedure applicable to State Commission
50. Review by State Commission in Certain cases
51. Appeal to National Commission
52. Hearing of Appeal
Consultation when Chief Justice of High Court is an acting Chief Justice
Tenure
Removal
Jurisdiction of the Slate Commission
Original Jurisdiction
Appellate Jurisdiction of State Commission
Ex-parte decisions
Presence of appellant not mandatory
Restoration of appeal not permissible
Revision
Transfer of cases [Section 48]
Circuit Benches
Procedure applicable to State Commission
Validity of order passed by President of the State Commission sitting singly
Notice under Section 80 CPC not necessary
Cross-examination
Evidence by experts
Complaints involving determination of complicated question of fact and law not to be
entertained by Consumer Commission
Appeal Before the National Commission [Section 51]
Appeal against Preliminary order passed by State Commission not maintainable before the
National Commission
Delay not condoned
Speaking order
Maintainability of writ petition against order of State Commission
NATIONAL CONSUMER COMMISSION
53. National Consumer Disputes Redressal Commission (NCDRC)
54. Composition of National Commission
55. Qualifications, etc. of President and Members of National Commission
56. Transitional Provisions
57. Other offficers and employees of National Commission
58. Jurisdiction of National Commission
Original Jurisdiction
Appellate Jurisdiction
Sitting of the National Commission & Signing of the order
Revisional Jurisdiction of the National Commission
Remand of cases
Review under Certain Cases [Section 60]
59. Procedure applicable to the National Commission
Procedure followed by the National Commission for disposal of
complaints
The Power of National Commission to grant relief includes power to
order certain thing to be done by the opposite party
60. Final Order of the National Commission
61. Power to set aside ex-parte orders
62. Transfer of cases
Circuit Benches of the National Commission
63. Vacancy in office of President of NCDRC
64. Vacanies or defects in appointment not to invalidate orders
65. Service of Notices, etc.
66. Experts to assist National Commission or State Commission
67. Appeal against order of National Commission
68. Finality of orders
Orders passed by FORA under the Consumer Protection Act are not
binding precedent
69. Limitation period
70. Administrative Control
71. Enforcement of orders of District Commission, State Commission and
National Commission
The Executing Court cannot go beyond decree
Dismissal of frivolous or vexatious complaints
72. Penalty for non-compliance of Order
73. Appeal against order passed under Section 72
MEDIATION
74. Establishment of Consumer Mediation Cell
75. Empanelment of Mediators
76. Nomination of mediators from the Panel
77. Duty of Mediator to Disclose Certain Facts
78. Replacement of Mediator in certain Cases
79. Procedure For Mediation
80. Settlement through mediation
81. Recording Settlement and Passing of order
PRODUCT LIABILITY
82. Application of the Chapter
83. Product Liability action
84. Liability of Product Manufacturer
85. Liability of Product service Provider
86. Liability of Product Sellers
87. Exceptions to Product Liability action
Definition of the term ‘Product’
Product liability
Position in India
CHAPTER VII
OFFENCES AND PENALTIES
88. Punishment for non-compliance of direction of Central Authority
89. Punishment for false or misleading advertisement
90. Punishment for manufacturing for sale or storing, selling or
distributing or importing products containing adulterant
91. Punishment for manufacturing for sale or for storing or selling or
distributing or importing Spurrious goods
92. Cognizance of offence by Court
93. Vexatious Search
CHAPTER VII
OFFENCES AND PENALTIES
88. Punishment for non-compliance of direction of Central Authority
89. Punishment for false or misleading advertisement
90. Punishment for manufacturing for sale or storing, selling or
distributing or importing products containing adulterant
91. Punishment for manufacturing for sale or for storing or selling or
distributing or importing Spurrious goods
92. Cognizance of offence by Court
93. Vexatious Search
CHAPTER VIII
MISCELLANEOUS
94. Measures to prevent unfair trade prctices in e-commerce, direct selling
etc.
95. Presidents, members, Chief Commissioner, Commissioner and certain
other offficers to be Public servants
96. Compounding of offences
97. Manner of Crediting Penalty
98. Protection of action taken in good faith
99. Power to give directions by Central Government
100. Act not in derogation of any other law Section 100 provides
additional remedy
101. Power of the Central Government to make Rules
102. Power of the State Government to make Rules
103. Power of National Commission to make regulations
104. Power of Central Authority to make regulations
105. Rules and Regulations to be laid before each House of Parliament
106. Power to remove Difficulties
107. Repeal and Savings
APPENDIX
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