Content

Introduction
Objectives
Definitions
Rights Of Consumer
Redressal Agencies
Councils
Case Studies
INTRODUCTION
 INTRODUCATION
• In order to provide for better protection of the
interests of the consumer the Consumer
Protection Bill, .1986 was introduced in the Lok-
Sabha on 5th December, 1986.

• The Consumer Protection Act 1986 is a social

welfare legislation which was enacted as a result
of widespread consumer protection movement.
Obejectives
Consumer Complaints
Sec-2(d) Sec -1(c)
 Rights Of Consumer
Right to
Safety

Right to Right to
Consumer be
Education Informed
Rights of
Consumer

Right to Right to
Redressal be Heard
Organizational Setup
Customer Dispute Redressal Agency

The aims and objectives of the Act are achieved by

District Forum

State Commission

National Commission.
 Consumer disputes redressal
agencies [Sec.9]]
1. A Consumer Disputes Redressal Forum To Be
The ‘District Forum’. This Is To Be Established By
The State Govt. In Each District Of The State By
Means Of A Notification. More Than One Can
Also Be Established In A Single District.
2. A Consumer Disputes Redressal Commission To
Be Known As The “State Commission”. This Has
Also To Be Established By The Govt. In The State
By Means Of A Notification.
3. A National Consumer Disputes Redressal
Commission To Be Established By The Central
Govt. By Means Of A Notification.

 The Act Thus Envisages A Hierarchy Of Three

Redressal Forums:-
 DISTRICT FORUM [Sec-9 (a)]
• Composition TERM OF OFFICE :Every person of district form holds 5
years of office or up to age 65 whichever is earlier , no re-
Headed BY Retired appoinment
Judge District forum dispose a complaint generally
within 3months of the receipt of notice by
opposite party (within 5months if it requires
analysis or testing of commodities by a
One Women laboratory).
Any person aggrieved by the order made by the
district forum may appeal to state commission
One Person with within 30days from the date of order.
economics, law, District forum shall refer a copy of complaint to
commerce, the opposite party.
accountancy public  District forum shall entertain the complaint
affairs background up to the value of Rs20 lakhs.
 JURISDICTION (Sec.11)
 The opposite party or each of the opposite parties, where there are
more than one, at the time of the institution of the complaint,
actually and voluntarily resides or 2[carries on business or has a
branch office or] personally works for gain.

 Any of the opposite parties, where there are more than one, at the
time of the institution of the complaint, actually and voluntarily
resides, or 2[carries on business or has a branch office], or
personally works for gain, provided that in such case either the
permission of the district forum is given, or the opposite parties
who do not reside, or 2[ carry on business or have a branch
office], or personally work for gain, as the case may be, acquiesce
in such institution; or

 The cause of action, wholly or in part, arises.

 State commission [Sec-9 (b)]
• Composition TERM OF OFFICE :Every person of district form holds 5
years of office or up to age 67 whichever is earlier , no
Headed BY high re-appoinment
court Retired
Judge • State commission is the higher court after district
consumer forum.
• State govt. shall establish state commission.
One Women – not less • State commission shall have one president and at
than 35 yrs of age, least two member’s, one of whom shall be a women.
with an degree • The president of state commission shall be the
person who is or has been the judge of a high court.
One Person with • State commission shall entertain complaints where
economics, law, the value of claim exceeds Rs20 lakhs but does not
commerce, exceeds Rs1 crore. Besides, it shall entertain appeals
accountancy public against the order of any district forum within the
state also.
affairs background
 Jurisdiction:- [Sec.(17)] & Appeals:-[Sec.(19)]

Jurisdiction
i. To entertain complaint where the value of the goods or
services and compensation, if any, claimed exceeds RS5 lakhs
but does not exceeds RS 20 lakhs.
ii. To entertain appeals against the order of any district forum
within the state.
iii. To call for the records and pass appropriate orders in any
consumer dispute which is pending before or has been
decided by any District Forum within the state.
Appeals:
i. An aggrieved person of state commission can appeal to the
national commission.

ii. 30days period from the order of the state commission is

allowed for carrying the matter before the national
commission.

iii. A late appeal may also be entertained provided that the

 National commission
(Sec. 9 and 20 to 23)
• Composition TERM OF OFFICE :Every person National commission
holds 5 years of office or up to age 70 whichever is
Headed BY earlier , no re-appoinment
Supreme court
Retired Judge
 National commission shall entertain complaint
where the value of claim exceeds Rs1 crore.
One Women – not
less than 35 yrs of,  National commission enjoys all power which are
with an degree enjoyed by a civil court.

One Person with  Any person aggrieved by the order made by

economics, law, national commission may prefer an appeal to
commerce, supreme court within 30 days from the date of
accountancy public order.
affairs background
 Jurisdiction:- [Sec.(21)] &
Appeals:-[Sec.(23)]
Jurisdiction
i. The national commission is to entertain complaints
where the value of the goods or services and
compensation claimed exceeds RS 1 crore

ii.The appellate jurisdiction is to entertain appeals

against orders of any of the state commission
Appeals:
 The working procedure is the same as that of the Forum
U/S [13(4)], (5) and (6) and for the rest it has been
prescribed by the central govt.

 The national commission has the power to issue an

order to the opposite party directing him to do any 1
or more of the things referred to sec.14(1)(a) to(i).
 FILING OF COMPLAINTS

A complaint may be filed by

a) The consumer to whom the goods are sold
or services are provided
b) Any recognized consumer association
c) One or more consumers with same interest
d) The central government or state
government
RELIEF TO THE COMPLAINANT ?
IF THE COMPLAINT IS PROVED THE FORUM
SHALL ORDER
a) to remove defect pointed out by the
appropriate laboratory from the goods in
question;
b) to replace the goods with new goods of
similar description which shall be free from
any defect;
c) to return to the complainant the price, or ,
as the case may be, the charges paid by the
complainant;
d) to pay such amount as may be awarded by
it as compensation to the consumer for any
 PENALTIES

• Where a trader or a person against whom a

complaint is made (or the complainant) fails
or omits to comply with any order made by
the District Forum, the State Commission or
the National Commission, such trader or
person (or complainant) shall be punishable
with imprisonment for a term which shall
not be less than one month but which may
extend to three years or with fine which
shall not be less than two thousand rupees
 Case Studies

CASE I

• Chetanprakash vs. MET Institute of computer Science

CASE II

• Krishnan Kumar Bajaj vs. PepsiCo.

CASE III

• Dharamdas Pritiani vs. HDFC Ergo General

Insurance Company Ltd.
 Chetan Prakash
vs.
MET Institute of computer Science
 Chetanprakash vs. MET Institute of computer Science

• Prakash was in final year of BSc when he sought admission in the

institute for MCS

• The institute had stipulated that in order to pursue the MCS course,
student has to clear III year exams

• He deposited the fees before declaration of result

• Seeing that he had failed in exams, he tried to withdraw the admission

and requested for a refund, to which the institute did not respond.

• Finally, he sent a legal notice to the institute, and then lodged a

complaint in the consumer forum.
 Judgement
• The institute had to pay the complainant, Chetan Prakash, Rs 32,000
as compensation for harassment along with the course fee of
Rs.62,200.
Krishnan Kumar Bajaj
vs.
PepsiCo.
 Krishnan Kumar Bajaj
vs.
PepsiCo
Bajaj, a resident of Ahmedabad, had purchased a Lay’s packet on 28 June
2010 and sensed its being underweight.
He wrote twice to the manufacturer. While the first letter got no response, in
reply to the second, it offered Bajaj gifts hamper which he refused.
Bajaj approached CERS, who wrote to PepsiCo.
Company refused to accept their fault and gave several unsatisfactory
clarifications
CERS took the issue to the Consumer Disputes Redressal Forum, which also
gave a favourable ruling
The company asked for the bill of purchase which Bajaj could not produce
 Judgement
• The Court overruled the argument of his not having a bill

• CERS requested the court to direct PepsiCo to deposit Rs.2,00,000 in

the Consumer Welfare Fund and award Rs.2,75,250 as punitive
damages.

• And also to give Rs.75,000 as costs of litigation.

 Conclusion
• Consumer Protection Law are designed to
ensure fair competition and the free flow of
truthful information in the market place.

• The law are designed to prevent business that

engages in fraud or specified unfair trade
practices (UTP) from gaining an advantage over
competitors and way providing additional
protection for the weak and those unable to
take care of themselves.
Thank you