Consumer Protection Act 1986- Akosha

1
Consumer Protection Act, 1986

• Procedure and application

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Introduction

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

3
Contd.

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

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Aims of the Consumer Protection Act

• Aims of Consumer Protection Act 1986 (Confer more
  protection and speedy remedy to consumers of
  goods and services)
• Establishment of Consumer Disputes Redressal
  Forum (District forum)
• Establishment of Consumer Disputes Redressal
  commission (State commission)
• Establishment of National Consumer Disputes
  Redressal Commission (National commission)
• Establishment of a Central Consumer Protection
  Council for promoting and protecting the rights
  of the consumers.

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Who is a Consumer ?

• Consumer of Goods
• A person who has purchased goods for a
  consideration.
• The consideration may be paid or promised to pay
  or partly paid or partly promised.
• A person who has purchased goods under a system
  of deferred payment is also a consumer.

6
Contd.

• Consumer of Service
• A person who has hired or availed of any service
  for consideration.
• Consideration may be paid or promised to pay or
  partly paid.
• A person who has hired or availed of any service
  under system of deferred payment.

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Objective of the Act

• Better protection of interests of consumers
  Protection of rights of consumers.
• Right to be protected against marketing of goods
  or services which are hazardous to life and
  property.
• To be informed about the quality, quantity,
  purity, standard and price of goods or
  services so as to protect the consumers against
  unfair trade practices.

8
Contd.

• The right to be assured, where ever possible,
  access to goods and services at competitive prices
  .
• The right to be heard and to be assured that
  consumers interest will receive due consideration
  at appropriate forums.
• The right to seek redresses against unfair trade
  practices or exploitation of consumers.

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Scope of the Act

• The Act applies to whole India except Jammu
  Kashmir. Every State has its own set of rules.
• It is divided in 4 chapters 31 sections.
• Applies to all type of goods and services, public
  utilities  public sector undertakings.
• All types of complains relating to goods, unfair
  trade practice.
• A suit pending in civil court cannot be heard in
  consumer court. (No parallel litigation)

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Who can file a complaint?

• The consumer to whom the goods are sold or
  delivered, or agreed to be sold are delivered ,
  or the service has been provided, or agreed to be
  provided
• Any recognized consumer association, regardless
  of whether the consumer is a member of such
  association or not. (e.g. class action suit)

11
Contd.

• One or more consumer , where there are
  numerous consumer having the same interest with
  permission of the district forum on behalf of or
  for the benefit of all consumer so interested.
• The state or central govt . either its individual
  capacity or as a representative of the interest
  of the consumer in general.

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Consumer dispute redressal agencies

• Under Section 9 of the Act consumer can file a
  complaint before the District forum.
• District forum is headed by District judge, he
  has jurisdiction over the district.
• State Commission is headed by Judge of High
  Court, he has jurisdiction over the whole State.
• National Commission is headed by Chief Justice of
  India, he has jurisdiction over the entire Nation.

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Where to file the complaint?

• In District Forum if the cost of goods or
  services and compensation asked for is up to Rs.
  20 Lakhs and cause of action arose there or where
  the Opposite Party resides or runs their business
  or has a branch office
• In State Commission if the cost of goods or
  services and compensation asked for is more than
  Rs. 20 Lakhs and less than Rs. 1 Crore and cause
  of action arose there or where the Opposite Party
  resides or runs their business or has a branch
  office

14
Contd.

• In National Commission of the cost of goods or
  services and compensation is more than Rs. 1
  Crore and cause of action arose there or where
  the Opposite Party resides or runs their business
  or has a branch office.

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Procedure to file a complaint

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

16
Contd.

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

17
Contd.

• The hearings will continue till the matter is
  decided.
• The proceedings ideally should be decided in 90
  days.
• The courts final order will be sent to all the
  parties by registered post.
• Please note It is important to attend the
  hearings, else the matter may be decided ex-party
  on the merits of the case.

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Appeals

• If you are not satisfied with the judgement from
  the District consumer forum, you can appeal to
  the State and then to the National commission
  within 30 days of receiving the order. In short
  from
• - District Forum to State Commission
• - State Commission to National Commission
• - National Commission to Supreme Court

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Limitation Period

• Section 24A of the Act provides that a consumer
  dispute can be filed within 2 years from the date
  on which the cause of action arises.
• Appeals are required to be filed within 30 days
  from the date of receipt of the courts order.

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Fee structure to file complaint

• Fee for District Forum
• - Up to Rs. 1 Lakh Rs. 100/-
• - Above Rs. 1 Lakh but less than Rs. 5 Lakh
  Rs. 200/-
• - Above Rs. 5 Lakh but less than Rs. 10 Lakh
  Rs. 400/-
• - Above Rs. 10 Lakh but less than Rs. 20 Lakh
  Rs. 500/-

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Contd.
S.No. Total Value Of Goods Or Services And The Compensation Claimed Amount Of Fee Payable
(1) (2) (3)
District Forum District Forum District Forum
1. Upto One Lakh Rupees For Complainants Who Are Under The Below Poverty Line Holding Antyodaya Anna Yojna Cards Nil
2. Upto One Lakh Rupees For Complainants Other Than Antyodaya Anna Yojna Card Holders Rs.100
3. Above One Lakh And Upto Five Lakh Rupees Rs.200
4. Above Five Lakhs And Upto Ten Lakh Rupees Rs.400
5. Above Ten Lakhs And Upto Twenty Lakh Rupees Rs.500
State Commission State Commission State Commission
6. Above Twenty Lakh And Upto Fifty Lakh Rupees Rs.2000
7. Above Fifty Lakh And Upto One Crore Rupees Rs.4000
National Commission National Commission National Commission
8. Above One Crore Rupees Rs.5000
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Relief available to consumer

• Replacement of defective goods
• Refund of price paid for defective good/services
• Removal of deficiency in service
• Refund of extra money charge
• Withdrawal of goods hazardous to life
• Compensation for the loss due to negligence of
  opposite party.

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Penalties

• If trader fails to follow the order passed by the
  forum then he shall be punishable with
  imprisonment for a term from 1 month up to 3
  years or with fine from Rs. 2000/- up to Rs.
  10,000/- or with both.