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INTRODUCTION

The industrial revolution and the development in the


international trade and commerce
Has led to the vast expansion of business and trade, as a
result of which a variety of consumer
Goods have appeared in the market to cater to the needs
of the consumers and a host of services
Have been made available to the consumers like
insurance, transport, electricity, housing,
Entertainment, finance and banking. A well organized
sector of manufacturers and traders with
Better knowledge of markets has come into existence,
thereby affecting the relationship between
The traders and the consumers making the principle of
consumer sovereignty almost inapplicable.
The advertisements of goods and services in television,
newspapers and magazines influence the
Demand for the same by the consumers though there
may be manufacturing defects or
Imperfections or short comings in the quality, quantity
and the purity of the goods or there may
Is deficiency in the services rendered? In addition, the
production of the same item by many
Firms has led the consumers, who have little time to
make a selection, to think before they can
Purchase the best. For the welfare of the public, the glut
of adulterated and sub-standard articles
In the market have to be checked. Inspire of various
provisions providing protection to the
Consumer and providing for stringent action against
adulterated and sub-standard articles in the
Different enactments like Code of Civil Procedure, 1908,
the Indian Contract Act, 1872, the Sale
Of Goods Act, 1930, the Indian Penal Code, 1860, the
Standards of Weights and Measures Act,
1976 and the Motor Vehicles Act, 1988, very little could
be achieved in the field of Consumer
Protection. Though the Monopolies and Restrictive Trade
Practices Act, 1969 arid the Prevention
Of Food Adulteration Act, 1954 have provided relief to the
consumers yet it became necessary to
Protect the consumers from the exploitation and to save
them from adulterated and sub-standard
Goods and services and to safe guard the interests of the
consumers. In order to provide for better
Protection of the interests of the consumer the Consumer
Protection Bill, .1986 was introduced in
The Look Saba on 5th December, 1986.

WHO IS THE CONSUMER?

A consumer is an individual, group or an organization that consumes or uses a


product for end use purpose or for final consumption. The term ‘customer’ and
‘consumer’ are used interchangeably. However, the customer is the buyer of the
Product and he may or may not be the final user of the product.
The consumer may or may not be the buyer, but he/she is the user of the product.
According to section 2(1) (d) of consumer protection ACT,
1986 a consumer is defined as follows:

1. Buys any goods for a consideration: any user of such goods


when such use is made with the approval of a person who buys goods for
consideration.
2. Hires or avails of any services for a consideration: any
beneficiary of such services when such services are availed of with
approval of the person who hires or avails of any services for
consideration.

Consideration had been paid or promised or partly paid or promised, or under any
system of deferred payment. There has to be sale transaction for consideration.
What is the consumer protection ACT 1986?
The consumer protection Act, 1986 was passed to provide better
protection of the interests of consumers and for the purpose of
establishing of consumer council and other form for the settlement of the
consumer disputes.
Protection of consumer’s right has long been
recognized dating back as early as to the year 1824. But protection of
consumer right gained importance in April 1985 when the general
assembly of the United Nations adopted a set of general guideline
(general assembly resolution 39/85) for the protection of the consumers.
These guidelines constitute a comprehensive policy framework out-
lining what governments need to do promote consumer rights. The
framework dealt with:

1. Physical safety
2. Protection and promotion of consumer interest.
3. Standards for the safety and quality of the consumer goods and
services.
4. Distribution facilities for consumer goods and services.
5. Measure enabling consumers to location redress;
6. Measure relating to specific area(food, water and pharmaceutical)
and
7. Consumer education and information programme.

In accordance with the U.N resolution, India enacted, the much


needed “consumer protection Act” in year 1986. The main purpose of
the act was to protect the rights of the consumer and to grant an
effective, inexpensive and speedy remedy to consumer. Also, to provide
for better protection of the consumer interests, consumer council has
been established.
With growing needs, this Act has been amended in year 1991,
1993 and 2003. In May 2005, consumer protection regulation came into
effect.
This Act is a social legislation aimed for the public welfare.
One of the most important Acts in recent times.
CONSUMERS PROBLEM

In India, consumers face a number of problems. The main problems are


as follows:

1. False weight and measure: customers in India are cheated by the


traders and others with false weight and measure. The customers
are cheated in unorganized as well as in organized markets such as
malls, customers are cheated with wrong weight pasted on the
packets
2. Poor after-sales-services: after-sales-service is very poor in
India .even companies like MNCs in India failed do so. Customers’
have to give constant reminder for after-sales-service. Customers
have to get there equipment repaired from third party even in
warranty period.
3. Problem of duplicity in goods: in India customers face problem of
duplicate goods. Unethical producers duplicate popular brand
names to cheats the customers. There is also duplicate in medicinal
products in markets.
4. Problem of artificial shortages: some traders are also indulged in
making artificial shortages of goods. This is done to hike the prices
of the goods and charge very higher rate from the customer. This
adversely affects the customer’s budget.
5. unethical advertisement: customers are cheated with false
advertisement there several examples of unethical advertisement:
*testimonials by professional or personality who do not even use
the product.
*use of false statistics with figure of sales, ranking or rating by
certain research organization of dubious character.
6. Problem of health and safety hazards: Indian customers face
Safety and health hazards problem. There are some examples
*shopkeeper or trader may also sell products even after expiry
Date.

*certain manufacturer duplicate health related products such


As medicines.
*Manufacturer may use inferior of material in the manufacturing
Of item like electrical switch, food items etc.

CONSUMER RIGHTS

1. Right to choose: a consumer should be given open access and


freedom to choose from variety of products and services. Right of
choice aim at promoting competition and discarding monopoly .but
traders and producers for the sake of business hands and allocate
market among themselves .this indirectly eliminate the competition
and buyer are compelled to buy whatever is available.
2. Right to safety: a consumer has right to be protected against the
marketing of goods, which are dangerous to human health and life.
Consumer has right assurance from the producer about the quality,
reliability and performance of goods. For products like electrical
appliances, automobiles, food articles like sweet fast food, cold
drinks etc.
3. Right to informed: a consumer has right to be protected against
fraudulent, misleading, advertisement, labeling or other practices
and to be given facts needed to make proper choice. For example –
a consumer is made to believe “made as Japan” is like “made in
Japan”. These practices are done in many more ways.
4. Right to be heard: this permit the consumer to register his
dissatisfaction or complaint with the company and government.
Even today, many business organization and firms show disregard
and are indifferent to consumer complaint and protest. This right
allows government to pass suitable resolution to intervene and to
safeguard the consumers.

5. Right to redress: many times, it so happen that the actual


performance or quality of the product does not match with what is
advertisement or stated on package. In order to sell products,
manufactures resort tall exaggerated claim. This right enables the
consumer to get his claim settled, if he becomes a victim of
exaggerated claims. If it cannot be settled than money is to refund.
6. Right to consumer education: this is another important right of
consumer aims at supplying information and educating consumer
regularly. It is a continuous process and work to update consumer
knowledge about the development in business and industry and
changes made in laws affecting consumers’ interest. It can be done
through medium of television, radio, hoarding etc.

NEED AND IMPORTANCE OF CONSUMER PROTECTION


Through consumer movement, the consumers can protect themselves
against the malpractices of businessmen.
Consumer association can protect consumers in the following ways
(a) Creating consumer awareness through guidance and education.
(b)Exerting pressure on businessmen and make them more socially
responsible and responsive.
(c) Compelling government to take necessary steps to guarantee the
statutory right of consumer. Consumerism compels the
government to enact and to implement consumer law strictly
and punish defaulting businessmen found guilty of unethical or
illegal business practices.
(d)Encouraging consumer to form cooperative societies, thereby
resorting to direct buying and selling of goods.
(e) Consumer association can act as a middleman individual
consumer and businessmen. It can pass on complaints and
suggestions of consumer to business people for suitable action.
(f) Assisting individual consumer on legal matters i.e. the procedure
to be followed in filing a complaint in the court, legal advice
and assistance, etc sometimes, association can file a cause on its
own if the business action are likely to affect a majority of
consumers.
(g) The consumer association can take sample of adulterated food
items, analyze its contents and submit the report of its finding to
concerned businessman and government authorities for further
action.

REASON FOR ENACTING A SPECIFIC ACT


This act was to give the consumer, protection towards his interest.
There were a number of factors, which needed to be changed with time.
i. Doctrine of caveat emptor
ii. Collective bargaining.
iii.Multiple laws.
iv.Hurdles in the litigation
v. Remedy

The consumer who was earlier more often referred as to a buyer or


acceptor when suffered from a defect or deficiency had to face the
following difficulties.

i. Doctrine of caveat emptor: this doctrine ‘caveat emptor’ or


‘buyers beware’ was applicable. This doctrine held the buyer totally
responsible, although the seller was aware of the defect or deficiency.
This doctrine stated, “The buyer must keep his eyes and ears open
and mind active while buying”. The buyer has to be responsible and
cautions.
ii. Collective bargaining: the seller lobby was strong while Buyers were
individuals. It was very difficult for an individual buyer fight the
sellers.
iii. Multiple laws applicable: the number of laws prevailing were
innumerable, like
(a) The Indian contract Act,
(b)The sale of goods Act,
(c) The essential commodities Act,
(d)Prevention of food adulteration Act, and
(e) Water Act, and so on.

a person buys a bottle of water. If it were


Example:
contaminated by the poor quality of plastic container, which law would
apply?
This confusion caused a lot of difficulties to the already aggrieved
buyer.
iv. Hurdles in the litigation: in the above example, if the person falls ill
due to contamination of water, he should only go to the regular court
for a remedy. Go to the regular court was both expensive and time
consuming. This was an additional burden on the innocent buyer.
This was in addition to the physical and mental agony.
v. Remedy: the buyer if successful in winning the battle would generally
get a remedy in the form of punitive and deterrent measure i.e. the
guilty seller would be punished (punitive) and it would put fear in the
mind of likeminded seller (deterrent). However, this did not satisfy
the innocent buyer who has already suffered physically, mentally and
monetarily.
Because of the above difficulties, the innocent buyer was reluctant to
seek remedy, although he was the injured party, resulting in the seller
resort to more and more unfair practices.
Therefore, a need was felt to provide the innocent consumer a
remedy, which was quick, easy, least costly, effective and
compensatory in nature, keeping these in view, the Consumer
Protection Act, 1986, was enacted.

OBJECT AND REASON

1. The right to be protected against marketing of goods, which are


Hazardous to life and property.
1. The right to be informed about the quality, quantity, potency,
purity, standard and price of goods to protect the c0onsumer
against unfair trade practices.
2. The right to be assured, whenever possible, access to variety of
goods at competitive price.
3. The right to be heard and to be assured that consumer’s interest
will receive due consideration at appropriate forums.
4. the right to se4ek redressal again unfair trade practice or
unscrupulous exploitation of consumer, and
5. Right to consumer education.
The following right have been added by amendment Act, 1993
and 2002 respectively.
6. the right to be protected from unfair trade practices as defined
under section, 36A of MRTP Act, 1969 and
7. Protection from spurious goods or offering such goods for sale
or adapting deceptive practices in the provision of services.

CONSUMER PROTECTION COUNCILS

Introduction: the object of the Act states “The Consumer Protection Bill,
1986 seeks to provide better protection of the interest of consumer and
for that purpose, to make provision for the establishment of consumer
councils”.
This reiterated in the objects the Act as “The right to be heard and to
be assured that consumer interests will receive due consideration at
appropriate forums”. Councils are set up at national, state and district
level. The resolutions passed by councils are only recommendatory in
nature.

CENTRAL CONSUMER PROTECTION COUNCIL

Membership: the central council shall consist of 150 members namely:


• The minister in charge of department of civil supplies, who shall
be the chairman of the central council and deputy minister, shall be
the vice chairman of the central council.

• 8 members of parliament.

• 20 representatives of the central government department and


autonomous organization concerned with consumer interest.

• Not less than 35 member of consumer’s organization.

• Representatives of women not less than 10.


• Representatives of farmers, trade and industries not exceeding and
others.

Term of office:

• The term of the central council is three years.


• Any members may resign before his tenure. The vacancy so caused
or otherwise, shall be filled from the same category and such
person shall hold office as long as the member, in whose place he
has joined, would have been entitled to hold.

Procedure of meeting:

• Although the council may meet as and when necessary, but at least
one meeting shall be held every year.
• The time and place shall be at the discretion of the chairman.
• Every member shall be given not less than 10 days notice in
writing.
• The notice shall specify the place, day band hour of the meeting
and shall contain statement of business to be transacted.
• No quorum is required as the resolution passed as only
recommendatory.

Object of central council:

• The right to be protected against marketing of goods, which are


Hazardous to life and property.
• The right to be informed about the quality, quantity, potency,
purity, standard and price of goods to protect the c0onsumer
against unfair trade practices.
• The right to be assured, whenever possible, access to variety of
goods at competitive price.
• The right to be heard and to be assured that consumer’s interest
will receive due consideration at appropriate forums.
• the right to seek redressal again unfair trade practice or
unscrupulous exploitation of consumer, and
• Right to consumer education.

State consumer protection council:

Composition:
Every state shall constitute its own state council. The state council
shall consist of:
(a) The minister in charge of consumer affairs in the state
government who shall be chairman.
(b) The government may prescribe such number of official or non
official member representing such interest as required.
(c) Such number of other official or non official members, not
exceeding 10 as may be nominated by the central government.

Term of office:

(a) The term of the state council is determined by the state


concerned.
(b) Any member may resign before his tenure. The vacancy shall be
filled from the same category and such person shall hold official
as long as the member, in whose place he has joined, would
have been entitled to hold.

Procedure for meeting:

(a) The council may meet as and when necessary. However


minimum 2 meeting a year must held.
(b) The place, date and time of meeting shall be at the discretion of
the chairperson.
(c) The state government may prescribe the procedure for the
meeting.
(d) The recommendations of the state council are recommendatory
in nature.

Object of the state council:

The objects of every state council shall be to promote and protect


within the state, it also follows same object as central council follows.

District consumer protection council:

The parent Act did not have any provision for setting up of council. It
was introduced in 2002. Every state shall establish district council for
every district.

Composition:

(a) The collector of the district (by whatever name called) as the
chairman.
(b) Such number of official and non official member as the state
government deems fit.

Procedure of meeting:

(a) Minimum 2 meeting must be held in a year.


(b) The place, date and time of the meeting shall decided by the
chairman.
(c) The state government may prescribe the procedure with regard
to the transaction of its business.
(d) The resolutions passed are recommendatory in nature.

Objects:
The objects of the district council are similar to that central and state
council.
CONSUMER REDRESSAL AGENCIES

They are:
(1) district forum
(2) state commission
(3) national commission

These agencies are judicial in nature.


Any person aggrieved under this act is required to approach the
above-mentioned agencies as stipulated in the act. However under the
constitution of India, every citizen has the right to legal remedies i.e., the
right approach the regular court. This right cannot be the totally deprived
to the citizen by this act. Hence, where a citizen is unhappy even with
decision of the highest redressal agency under this ACT. Namely the
national commission, he can approach to Supreme Court. The aim is to
ensure the aggrieved person get timely and effective remedy with least
burden both monetarily as well as physically and at the same time not a
burden the already over burdened court.

DISTRICT FORUM

Establishment:
Each state government shall set up district forum in each district of
their state. When necessary, more than one district forum may establish
in a district. E.g. in Mumbai there three district forum.

Composition: each district shall have -


(a)A person who is, or has been, or is qualified to be a district judge who
shall nbe3 its president.
(b) Two other members, one of whom shall be a woman

Qualification: the person must;


(a) Be less than 35 years of age

(b) Possess a bachelor’s degree from a recognize university


(c) Be person of ability, integrity and standing, and have adequate
knowledge and experience of at least 10 years in dealing with problem
relating to economics, law, commerce, accountancy, industry, public
affairs of administration.

Disqualification:he is disqualified, if he
(a) Has been convicted and sentenced to imprisonment for an
Offence which, in the opinion of the state government, involve moral
turpitude, or

(b) Is an undercharged insolvent, or

(c) Is of unsound mind and stand so declared by a competent court, or

(d) Has been removed or dismissed from the service of the government,
such financial or other interest as is likely to affect prejudicially the
discharge by him of his function as a member, or

(e) Has other disqualifications.

Selection committee: Every appointment is made by the state


Government on recommendation of selection committee comprising of:
(a) The president of state commission -chairman
(b) Secretary, law department of the state -member
(c) Secretary, in charge of the department of consumer affairs in the
state -member
In case the president of the state commission is absent or unable to
act, then the chief justice of the state can nominate a sitting judge as
chairman.

Term and condition:


Every member of the district forum shall hold office for a term of 5
years or up to the age of 65 years whichever is earlier
The salary or honorarium and other allowances payable to, and the
other terms and conditions of service of the member shall be such as
prescribed by the state government.

Remedies:
The district forum has the power to order one or more of the following
remedies:
a) To remove the defect.
b) To replace the goods.
c) To return the price.
d) To pay compensation
e) To remove defect or deficiency
f) To discontinue trade practice.
g) To prevent hazardous goods from being offered for sale,
h) To cease manufacturing of hazardous goods.
i) To pay sum as determined by the forum.
j) To grant punitive damages.

Power and procedure:


a) Every complaint shall be accompanied with such amount to fee
and payable in such manner as prescribed.
b) The forum within a period of twenty-one days from the date of
receipt of complaint must decide regarding the admissibility of
complaint. In case of rejection of the complaint at the stage of
admission, an opportunity of being heard must be given to the
complaint. This has been added by an amendment in 2002.
c) On admission of the complaint, a copy shall be referred to the
opposite party, within 21 days from the date of admission. The
opposite party is given 30 days or a further extension period, not
exceeding 15 days and directing him to give his version of case.
d) Where proper testing of goods is necessary, sample of goods shall
be sent to the laboratory for testing. The laboratory shall report the
finding within 4-5 days of receipt or within such extension period
to the district forum. However the complainant will have to deposit
such fees for payment to the laboratory.
e) A copy of the finding shall also be forwarded to the opposite party
for information and reply to the same
f) Thereafter the forum after giving reasonable opportunity to the
complaint as well as the opposite party, well pass appropriate
order.
g) Where the goods require no analysis or is not possible to send for
analysis. The opposite party, as in the above is given 30 days or a
further extended period not exceeding 15 days to submit their
version. Thereafter forum shall hear the complaint and the opposite
party and pass appropriate order.
h) The forum shall deal with complaints expeditiously, where no
analysis or testing is require, the forum shall decide within three
months from the date of receipt of notice to the opposite party and
within five months where analysis or testing is necessary. In case
of delay beyond the stipulated period, reasons shall be recorded.
i) The forum has the power to pass such interim order as is and
proper.
j) For the purpose of trial, forum shall have the same power as vested
in a civil court.
k) Complaints must be lodge within 2 years of the cause of action.

Jurisdiction:
The district forum can exercise two kind of jurisdiction:
(a)Monetary or pecuniary jurisdiction: the forum can entertain c
complaints where the value of goods or value of services and the
compensation claim and not exceed rupees 20 lakhs. The jurisdiction is
on the basis of the value of the goods or services.

(b) A complaint shall be instituted in district forum within the local


limits of whose jurisdiction.
i. The opposite party resides or carries on business or has a branch
office or work for gain, or
ii. Where the opposite parties are more than 1 in number, at least 1
of them resides or carries on business or has a branch office or
work for gain within the area of jurisdiction of the forum
consent of other parties is necessary, or
iii.The cause of action wholly or partly arises within the territorial
jurisdiction of the forum.

STATE COMMISSION

Establishment:
The state commission, which is also known as “consumer dispute
redressal commission” is established by the state government. The
commission is generally located in the state capital of the state. The area
of operation is the state. However circuit benches may be constituted.

Composition:
Each state commission shall consist of a president and member. The
minimum number of the member is 2 and cannot exceed more than the
number prescribe by the state. One of the members shall be the woman.

Qualification:
a) Chairman: chairman of the state commission must be a person who
has been a judge of a high court. The appointment shall be made
only with the consultation of the chief justice of the high court.
b) Member: member must have the qualifications, namely;
i. Be not less than 35 years of age.
ii. Possess a bachelors degree from a recognized university,
iii.Be person of ability, integrity and standing, and have adequate
knowledge and experience, at least 10 years in dealing with
problem relaying to economics, law, commerce, accountancy,
industry, public, affairs or administration, and
iv.Not more than 50 per cent of the member shall be form amongst
persons having a judicial background.
The expression “person having a judicial background” shall mean
persons having knowledge and experience for at least a period of 10
years as a presiding officer at the district level court or any tribunal at
equivalent level.

Disqualifications:
The following person shall be disqualified for appointment as a
member. If he
a) Has been convicted and sentenced to imprisonment for an offence
which involve moral turpitude, or
b) Is an undischarged insolvent, or
c) Is of unsound mind, or
d) Has been removed or dismissed from the service of the
government, or a body corporate 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 discharged by him of
his function as a member, or
f) Has such other disqualification as may be prescribed by the state
government.
Selection committee:

Every appointment is made by the state government on the


recommendation of the selection committee comprising of:
a) The president of the state commission -chairman.
b) Secretary, law department of the state - member.
c) Secretary, in charge of the department of consumer affairs in the
state-member.
In case the president of the state commission is absent or is unable to
act, then the chief justice of the state can nominate a sitting judge as
chairman.

Terms and condition:


The president shall be appointment only in consultation with the chief
justice of the high court.
The president and member, of the state commission shall hold office
for a term of 5 years or up to the age of 65 years, whichever is earlier.
The state government shall decide the salary or honorarium, place of
sitting, timing, vacation etc.

Jurisdiction:
The state commission exercises the following jurisdiction:
(a) Original jurisdiction: means the case is filed in the state
commission directly. It can be on monetary basis or on
territorial basis.
Monetary or pecuniary jurisdiction is where the value of
goods or services and value of compensation claimed exceed
twenty lakhs but does not exceed 1 crore of rupees.

(b) a complaint shall be instituted in a state


Territorial jurisdiction:
commission within the limits of whose jurisdiction.

i. The opposite party resides or carries on the business.


has a branch office or personally works for gain, or
ii. Where there are more than one opposite parties; at least one of
whom reside or carries on business or has a branch office or
personally works for gain and the consent of those parties who
are outside the jurisdiction is obtained or the state commission
grants permission or
iii.The cause of action wholly or partly arises.

(c)Appellate jurisdiction: the state commission shall have jurisdiction


to entertain appeals again the order of any district forum. However, the
appeal has to be preferred within 30 days of the order passed by the
district forum. The state commission may entertain appeal after the said
period if satisfied. No appeal shall be entertained by a person, who is
required to pay any amount in term of an order or the district forum,
unless he deposits 50% of that amount or 25 thousand rupees
whichever is less, with the commission. The commission shall
Endeavour to dispose of the appeal within ninety days.

(d) Revision jurisdiction:


The state commission shall exercise the power of revision
Under the following circumstances;

i. Has been decide when matter is pending before the district


forum;
ii. Has been decide by the district forum, but appear to the state
commission that the district forum.
1) Has exercise jurisdiction not vested with it, or
2) Has failed to exercise jurisdiction not vested, or
3) Has acted in the exercise of its jurisdiction illegally or
with material irregularity.

(e) Supervisory jurisdiction:


i. The state commission shall have administrative control over all
the district forum within its jurisdiction
ii. In exercise of this power, the state commission can call for any
district forum within its jurisdiction, issue instruction, and
oversee the functions of the district forum.

Power and procedure:


The power and procedure are same as the district forum with such
modification as may be considered necessary.

Remedies:
Same as those permitted by the district forum.

Circuit benches:
The state commission shall ordinarily function in the state capital. The
state government in consultant with the state commission may perform
its function at such other places. These benches shall comprise of the
president and one or more members.

NATONAL COMMISSION
Establishment:
The national commission, which is also known as “national
commission”, is established by the central government. It is set up at
New Delhi. However, the president of the commission may constitute a
bench with one or more member.

Composition:
The national commission shall consist of a president and members.
The minimum number of members is 4 and shall not exceed 9. One of
the members shall be women.
Qualification:
a) President must be a person who is or has been a judge of the
Supreme Court. The appointment is made with the consultant of
chief justice of India.
b) Members of the national commission shall have the following
qualification, namely
i. Be not less than 35 years of ago,
ii. Possess a bachelor’s degree from the recognized university
iii.Be person of ability, integrity and standing and have adequate
knowledge and experience of at least 10 years in dealing with
problems relating to economics, law, commerce, accountancy,
industry, public affairs or administration, and
iv.Not more than 50% of the members shall be from amongst the
person having judicial background.

Disqualification:
The following person shall be disqualified for appointment as
members, if any
(a) Has been converted and sentenced to imprisonment for an
offence, which in the opinion of the central government, involve
moral turpitude, or
(b) Is an undercharged insolvent, or
(c) Is of unsound mind 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 discharged
by him of his function as a member, or
(f) Has such other disqualification as may be prescribe by the
central government.

Selection committee:
All appointment to the national commission shall be made by the
central government on the recommendation of the selection committee
comprising of;
(a) A judge of the supreme court nominate by the chief justice of
India who shall be the chairman;
(b) The secretary in the department of legal affairs in the
government of India who shall be a member;
(c) Secretary of the department dealing with consumer affairs in the
government of India who shall also be a member.

Term and conditions:


Every member of the commission shall hold office for a term of 5
years or up to the age of 70 years whichever is earlier. The salary and
honorarium and other allowance payable shall be as prescribe by the
central government.
The working hours, vacation, leave etc. shall be as prescribe by the
central government.

Jurisdiction:
The national commission exercises four kind of jurisdiction, namely:
(a) Original jurisdiction: the national commission exercise original
jurisdiction where the value of goods or services and
compensation if any exceed rupees 1 crore. This is also
called as pecuniary or monetary jurisdiction.
(b) Appellate jurisdiction: the national commission shall have
jurisdiction to entertain appeal against the order of state
commission. Appeal has to be proffered within 30 days of the
order passed by the state commission. Appeal may be
entertained beyond the said period of 30 days, if the commission
is satisfied. However no appeal shall be entertained by a person,
who is required to pay amount in term of an order of state
commission unless the appellant has deposited in the prescribed
manner 50% of the amount or 35 thousand rupees, whichever is
less. The commission shall Endeavour to dispose of the appeal
within the appeals within 90 days.
(c) Revisional jurisdiction: the revisional jurisdiction exercise by
the national commission is similar to that exercise by the state
commission.

(d) Supervisory jurisdiction:


i. The national commission shall exercise administrative control
over all state commissions.
ii. In the exercise of this power, the national commission can call
for records of any information from any state commission, issue
instruction and oversee them.
iii.The commissions oversee the function of the state commission
and the district forum in order to ensure the objectives of the
Act are best served.

Power and procedure:


The power and procedure are the same as that of the district forum
with such modification as necessary.
The matter shall be decided by the president or senior most members
and least by two members.

Remedies:
Same as those permitted by the district forum.

Circuit benches:
The national commission shall function in place other than in Delhi
where the apex commission hold is sitting. These benches shall comprise
of the president and one or more members. (Incorporate by an
amendment in 2002) by a notification in 2004 it was held circuits
benches shall be functioning at eleven place viz. Ahmedabad,
Allahabad, Bangalore, Bhopal, Hyderabad, Jodhpur, kolkata, Lucknow,
Nagpur and Pune.

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