THE

CONSUMER
PROTECTION
ACT, 1986
1

OBJECT
Provide for better protection of
interest of consumers
Make provisions for establishment of
consumer councils
Establish authorities for settlement of
consumers disputes and for matters
connected therewith
2

Rights of Consumers

Protection against marketing of goods & services

which are hazardous to life and property;
Information about quality, quantity, potency,
standard & price of goods & services for protection
against unfair trade practices;
Access to variety of goods & services at competitive
prices;
Assurance that consumers interest receive due
consideration at appropriate forums;
Seek redressal against unfair trade practices or
unscrupulous exploitation of consumers;
Consumer education
3

Who can Complain

A consumer a person who buys
any goods or avails any services for a
consideration
[excludes
person
obtaining
goods/services
for
commercial purpose] ;
Voluntary consumer organization;
In case of death of consumer, his
legal heir or representative
4

Grounds for Complaint

Unfair trade practice;

Defective Goods;
Deficiency in service;
Charging price in excess;
Sale of goods / Offer of services that
are hazardous to life and safety of
public
5

Service and Deficiency

Specifically includes Banking, finance ,
insurance
among others. Excludes
rendering of any service free of charge
or under a contract of personal service
Deficiency
means
Any
fault,
imperfection, shortcoming or inadequacy
in quality, nature and manner of
performance required to be maintained
under any law or undertaken to be
performed by a person in pursuance of a
contract in relation to any service.
6

District Forum
Constitution:
President
(Retd.
District Judge) and two other
members (at least one woman)
Jurisdiction: to entertain complaints
involving value of goods or services and
the compensation claimed not exceeding
Rs.20 lac.
7

Orders of District Forum

Remove defect from goods or deficiency
from service;
Replace defective goods;
Pay compensation for loss or injury due to
negligence of provider of goods/services;
Discontinue unfair/restrictive trade practice;
Desist
from
offering
hazardous
goods/services;
Issue corrective advertisement;
Provide adequate costs
8

Appeal against District

Forum
Lies to State Commission SCDRC;
Must be filed within 30 days of date
of order in case of delay, delay
condonation application is to be filed;
Statutory deposit 50% of awarded
amount or Rs. 25,000/- whichever is
less
9

State Consumer Disputes

Redressal Commission [SCDRC]
Constitution: President (Retd. High Court
Judge) and two other members (at least one
woman)
Jurisdiction:
o to entertain complaints involving value of goods or
services and the compensation claimed exceeding
Rs.20 lac but not exceeding Rs.1 cr
o Appeal against orders of District Forum within the
State
o To call for file and decide District Forum orders
where (i) acted beyond jurisdiction, (ii) failed to
exercise jurisdiction, (iii) material irregularity

Appeal: Lies to National Commission NCDRC.

Limitation 30 days.
10

National Consumer Disputes

Redressal Commission [NCDRC]
Constitution:
President
(Retd. Supreme Court
Judge) and four other members (at least one woman)
Jurisdiction:
to entertain complaints involving value of goods or
services and the compensation claimed exceeding Rs. 1
cr
Appeal against orders of any State Commission
To call for file and decide SCDRC orders where where (i)
acted beyond jurisdiction, (ii) failed to exercise
jurisdiction, (iii) material irregularity
Power to review and set aside ex-parte order

Appeal:
days.

Lies to Supreme Court. Limitation 30

11

Other Features
Limitation Period: No complaint shall be
admitted after two years from the date on
which the cause of action has arisen. Delay
may be condoned
Frivolous Complaints: Such complaints will
be dismissed and complainant shall be
ordered to pay cost not exceeding Rs.10,000/Penalties for Non-Compliance of Order:
shall be punishable with imprisonment (not
less than one month and upto three years) or
with fine upto Rs.10,000/- or with both
No Second Appeal
12

Deficiency of Service in
Insurance
Delay in issuance of policy after receipt of premium
and improper rating;
Delay in processing of claims including appointment of
surveyors/investigators;
Appointment of more than one surveyor;
Lack of follow-up action for submission of survey report
as well as inaction on receipt of the same;
Delay in disposal of claims after receipt of all reports;
Improper Repudiation Letter / Closure of claim;
Failure to intimate decision within reasonable time;
Unclear terms of settlement;
Non-renewal of policy without valid ground;
Adjustment of refundable premium / claim amount
against other policies
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Defences
Repudiation of claim on valid grounds [including
fraud] within reasonable time period;
Disputes in respect of claims which may involve
examination of all necessary parties as well as
evidences and witnesses to be decided by civil
courts;
Where the subject matter of complaint is sub judice
before a civil court, the Consumer Forum has no
jurisdiction to interfere;
Not to interfere after settlement of claim on full and
final discharge by consumer without having evidence
of force and coercion in respect of discharge voucher
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Proper Handling of Consumer

Cases

Advocates to be briefed properly about defences to

be taken and apprised on terms and conditions of
policy;
Monitoring day-to-day proceedings in forum;
At the first level of litigation, all available
defences must be taken and all documents in
support must be filed.
Limitation Period for filing of Appeals/Revisions/SLP
be kept strictly in mind:
First Appeal to SCDRC/NCDRC/Supreme Court: 30 days from
receipt of order;
Revision to NCDRC [No second appeal is available]: 90 days
from receipt of order; and
SLP to Supreme Court: 90 days from receipt of order
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 Thank you.