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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.
CONSUMER RIGHTS
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.
• 8 members of parliament.
Term of office:
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.
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:
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:
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
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.
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
(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
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.
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.
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:
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.
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.
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.
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.