Cp act

OBJECT OF THE ACT
 The act is basically passed to protect the interest of
the consumers.
 In order to protect the interest of the consumers, to
make provision for establishing necessary consumer
councils and other authorities.
 It intend to seek speed and simple redressal to
consumer disputes through quasi-judicial machinery
set-up at district, state and central levels.
 It awards compensation to consumer on the basis of
merit of each case.

Monday, November 5, 2012 2

CONSUMER [sec2(1)(d)]
CONSUMER IS ANY PERSON WHO
 Buys any goods for a consideration or heirs/avails of any
services for a consideration is a consumer.
 Any user of the goods with the approval of the person who
has purchased the goods for consideration is also a consumer.
 A person hiring or availing of any services for consideration is
no doubt a consumer, but any person who is beneficiary of
such services with the consent or approval of the original
consumer is also a consumer.


 To become a consumer, there must be a
consideration when he buys goods. Such
consideration must have actually been paid or
promised or partly paid and partly promised.
 Any person claiming himself/ as a consumer must
satisfy two important consideration besides the
others which are as follows:
1. The service or services must have
been render to him and
2. He must paid or promised to pay the
consideration for the same.
 The intention of a person purchasing the goods or
hiring the services must be consumption not for
sale.


PERSON [sec2(1)(m)]
A PERSON INCLUDE
1. A firm whether registered or not
2. A Hindu undivided family.
3. A co-operative society.
4. Every other association of person whether register
under the societies Reg. Act 1960
 Consumer need not be an individual to get
protection under this act it includes the above
person also.


GOODS [sec 2(1)(i)]
 Means goods as defined in the sale of GOODS
ACT 1930.
The subject matter of the contract of sale must
be available property or goods. The
transactions which involve buying and selling
of immovable property are regulated by the
transfer of property Act.


SERVICES [sec 2(1)(o)]
• Means service of any description which is made available
potential users. The services related to banking, financing,
insurance,transport,processing,supply of electricity, lodging
and boarding etc but it does not include rendering of any
service free of charge or under a contract of personal
services. Means service of any description which is made
available potential users. The services related to banking,
financing, insurance,transport,processing,supply of electricity,
lodging and boarding etc but it does not include rendering of
any service free of charge or under a contract of personal
services.


 It implies that services must be of commercial
nature i.e. they must be rendered on payment
.
 Even the professional services are included.
 Even the beneficiaries of the services are
included though they are not directly hirer’s
provided they use the service with the
approval of the concerned consumers.


TRADER [sec2(1)(q)]
MEANS
 Sells goods or distribute any goods for sale.
 Any manufacture of goods selling the same.
 Any packer either sells or distribute goods in
package form.


MANUFACTURER [sec 2(1)(f)]
MEANS
 Makes or manufacturer any goods or part
thereof.
 Does not make or manufacture any goods but
assembles part thereof made or
manufactured by others.
 Put or causes to be put his own mark on
goods made or manufactured by any other
manufacture.

CONSUMER DISPUTE [sec 2(1)(e)]
If there is any dispute between the consumer
and manufacturer or trader, as the case may
be the consumer gets the right to seek
remedy or filing the complaint under the act.
The consumer redressal forum is a statutory
body under the consumer protection act.


COMPLAINT [sec 2(1)(c)]
 Complaint means any allegation in writing made by a
complaint that
complaint

Unfair trade Restrictive trade
Defective goods
practice practice

 A consumer seeking redressal of his complaint under
this act has to file separate allegation for separate
disputes.

COMPLAINANT [sec 2(1)(b)]

Complainant

A consumer

A voluntary ass.

Central govt. /
State govt.

One or more
consumer

Legal hirers or
representative

Any public cause can be take by an association in the
form ofNovember 5, 2012
Monday,
public interest litigation. 14

RESTRICTIVE TRADE PRACTICE sec 2(1)
(nnn)
MEANS
 delay beyond the period agreed to by a
trader in supply of such goods or in providing
the service which has led or is likely to lead to
rise into price.
 Regarding the condition precedent to
buying ,hire or availing of other goods or
service.


UNFAIR TRADE PRACTICE [sec 2(1)(r)]
MEANS
 A trade practice which for the purpose of
promoting the sale, use or supply of any goods or
for the provisions of any service, adopt any unfair
namely.

1. Falsely represent that the goods are of a
particular standard quality, quantity, grade,
compensation, style or model.

2. Makes the false or misleading representation
concerning the need for, or the usefulness of any
goods or services.

 Gives false warranty or guarantee about the
performance, length of life of a product with any
proper test.
 Publication of any advertisement for the sale or
supply at a bargaining price.
 Sale or supply of goods which do not comply any of
the standard prescribed by the competitive
authorities.
 Hoarding or destruction the goods or refusing to
sell goods with a view to raise the price.
 Represents that the seller or the supplier has a
sponsorship or approval which such seller does not
have.


 Materially misleads the public concerning the
price at which a products has been sold
Gives false or misleading facts disparaging the
goods, services or trade of another person.
Publication of any advertisement whether in any
newspaper or otherwise,for the sale or supply at a
bargaining price.
Bargaining price means
a. A price that is stated in any advertisement to
be a bargain price reference to ordinary price.
b. A price which the person hears/sees the
advertisement, would reasonably understand to
be bargain2012
Monday, November 5, price. 18

CONSUMER
PROTECTION
COUNCILS
sec(4 to 8)

CONSTITUTION OF THE CENTRAL COUNCIL
[SEC(4)]
• The central government, in order to carry out
the provision of sec 4, has to establish central
council consisting of 150 members.
• The minister in-charge of department of civil
supplier shall be the chairman of central
council.
• The minister of state or Dy. Minister in the
department of civil supplies who shall be the
vice-chairman.


• The minister of state in-charge of consumer
affairs in states.
• Eight members of parliament
5 Lok sabha
3 Rajya sabha
• The secretary of the National commissioner
for scheduled caste and scheduled tribe.
• Representation of the central government
department and autonomous organization
-:should not exceed 20


• Representation of the consumer organization
or consumer -:not less than 35
• Representation of women -:not less than 10
• Representation of farmer, trader-:less than 20
• Person capable of representing consumer
• The secretary in-charge shall be the member-
secretary of the central council.


• The term of central council is 3 years.
• If any member wants to resign, he may do so
by writing to chairman.
• In order to suggest the working of the council,
the central government from amongst the
members of the council-:standing working
group-:not less than 30 members.


PROCEDURE FOR MEETING OF THE
CENTRAL COUNCILS[sec(5)]
• Central council meet at least once every year.
It shall make clear the time, place and the
procedure of its meeting.
• Meeting of the central council be prescribed
by the chairman in his absence the vice-
chairman.
• Not less than 10 days from the date of issue –
meeting shall be called.


• Notice shall specify the day, place and hour of
the meeting.
• The preceding of meeting shall be valid not
with standing any vacancy in the constitution
of council.
• The resolution passed shall be
recommendatory.


OBJECTS OF THE CENTRAL COUNCILS
• To promote and protect the interest of the
consumer.
Right such as
• The right to be protected against the goods
which are hazardous to life and property.
• About the quality, quantity, purity, potency,
standard and price of goods.
• Access to a variety goods and services.


• Right to seek redressal against unfair practice
• The right to consumer protection.


THE STATE CONSUMER
PROTECTION COUNCILS
[sec(7 to 8)]


MEMBERS OF THE STATE CONSUMER
COUNCILS
• The minister in-charge of consumer affairs in
the state government who shall be chairman.
• Such member of other official or non-official
member represent such as prescribed by
state government.
• Such number of other official or non-official,
not exceeding ten as prescribed by central
government.


TIME PLACE ETC OF THE MEETING
• The state central protection council shall meet
as and when necessary but not less than two
meetings in every one year, and it shall meet
such time and place as the chairman may
think fit.


OBJECT OF THE STATE COUNCIL
• The main object of every state council shall be
to promote and protect within the state the
rights of the consumer.


THE DISTRICT CONSUMER
PROTECTION COUNCILS
District consumer protection council consist of-
• The collector of the district, who shall be its
chairman.
• Such number of other official and non-official as the
state government prescribes.
• Not less than two meeting shall be held in every
year.
• It shall meet at such time an place within the district.


OBJECT
• To protect the interest of the
consumer within the district.


CONSUMER DISPUTES REDRESSAL
AGENCIES
• District forum ---established by the state
govt.in each district of the state.
• State Commission --- established by the state
govt. in the state
• National Commission --- established by the
central govt.


District Forum
COMPOSTION –SEC 10
JURISDICTION –SEC 11
MANNER OF MAKING COMPLAINTS-SEC12
PROCEDURE OF COMPLAINTS—SEC13
FINDINGS—SEC14


District forum

President Two other member’s

• President shall has been a district judge.
• Members
– One shall be women.
– Shall not less than 35 years of age.
– Bachelor degree.
– Have knowledge and experience of 10 years in
economics, law, industry. etc.


• Person shall be disqualified
– Insolvent
– Insolvent
– Unsound mind
– Dismissed
– After


APPONITMENT OF MEMBERS OF THE
DISTRICT FORUM—SEC10(1-A)
• The president of the state commission
-:chairman
• Secretary of the law department-:member
• Secretary in-charge of the department
-:member


HOLDING OF OFFICE BY A MEMBER OF
THE DISTRICT FORUM—SEC 10(2)
• Every member shall hold the office for the term of 5
years-: up to age of 65 years.
• A member shall be eligible for re-appointment for
another-:5 years.
• The salary of the members of district forum shall be
prescribed by the state government.
• The appointment shall be whole-time on the
recommendation of the president of the state
government.

JURISDICTION OF DISTRICT FORUM
[sec11]
Monetary Territorial
• Claim should not exceed • At a place where each or
twenty lakhs. opposite parties reside or,
• Is based on the relief • They carry on the business
claimed by the or,
complainant . • At a place where cause of
action arise.

If 2 or more district forums have jurisdiction on, a
complaint can be filled in

MANNER OF MAKING COMPLAINT [sec
12]
• A complaint, in relation to any goods sold or
delivered or agreed to be sold or delivered or
any service provides or agreed to be provided
may be filed with the district forum.
• By the consumer.
• Any voluntary ass consumer.
• One or more consumer.
• The central or state government.


PROCEDURE ON ADMISSION OF
COMPLAINT—SEC13
• DISTRICT FORUM-:on admission of a complaint it
relates to any goods.
• Refer a copy of the admitted complaint, within 21
days from the date of its admission to the opposite
party directing him to give his say within a period of
30 days or extended period not exceeding 15 days.
• The opposite party shall give his say within the
stipulated time, if he fails to do so, the district forum
shall proceed to settle the dispute.


• If there is a defect in the goods-which cannot
be determined without proper analysis, the
district forum shall obtain a sample of the
goods from the complaint.
– Refer the sample to the appropriate laboratory.
– It shall report its findings within 45 days of the
receipt of the reference.
Before any sample test-:district forum require the
complaint to the credit of the forum such fees as
may be specified.


• District forum shall remit the amount
deposited to the appropriate laboratory to
carry out the analysis.
• District forum shall forward a copy of the
report along with remarks to the opposite
party.
• If any parties have disputes regarding
correctness it shall give in writing to the
district forum.
• District forum shall give reasonable
opportunity to both the party.

• Every complaint shall be accompanied by the
prescribed amount of fee.
• It shall be decided with 21 days from the date
on which the complaint was received
(admissibility).


POWERS OF DISTRICT FORUM
• To produce or allowed to be examined the
books, accounts, documents, commodities.
• To furnish to an officer, such information as
may be required.
• To authorize an officer to search any
premises may seize the books, papers,
documents, etc.


FINDING OF DISTRICT FORUM
• If the district forum is satisfied that the goods,
complained suffer from any defects such as
– To remove the defect pointed out by laboratory.
– To replace the goods with new goods.
– To discontinue the unfair trade practice.
– To withdraw the hazardous goods from being offered for
sale.
– To correct the misleading advertisement.
– To provide adequate cost to parties.


JURISDICTION OF STATE COMMISSION
[sec 17]

JURISDITION OF STATE
COMMISSION

Supervisory
monetary appellate revisional


• Complaints where the value of the goods or
service exceeds rupees 20 lakhs but does not
exceed rupees one crore.
• Appeals against the orders of any district
forum with in the state.
• If it appears to the state govt. that the district
forum has failed to excuse its jurisdiction
illegally it will call for the records and pass
appropriate orders.


Tettortorial jurisdicate
 The opposite party or each of the party
resides.
 They actually and voluntarily resides or
carries on business.
 The cause of action arose.


PROVISION RELATING TO TRANSFER
OF CASES
 Transfer of cases (sec 17-A)-:the state council
may at any stage transfer any complaint
pending before the district forum to another
district to another district forum within the
state.
 Circuit benches-:the state council ordinarily
function in the state capital but may perform
its function at such other as the state
government notifies.


PROVISION RELATING TO APPEALS TO
THE STATE COMMISSION
• It shall make an appeal within a period of 30
days.
• He can make an appeal after the expiry of 30
days if there was an sufficient cause.
• No appeal shall be entertainment unless the
appellant deposit 50% of the amount or 25000
which is less.


STATE COMMISSION
Composition of the state commission
– A person who is or has been a judge of a high
court, appointed by the state government who
shall be its president.
– Not less than 2, members, and one of who shall be
a woman, qualification.
• Not less than 35 years of age.
• Posses a bachelors degree.
• Have adequate knowledge of at least 10 years in
economics, law, commerce, industry public.


– 50% of the members shall be having judicial back
ground.
– Disqualification.


PROVISION RELATING TO SALARY
• The salary and other terms and conditions of
the members of the state commission shall be
prescribed by the state government.
– It shall hold the office for the term of 5 years up to
the age of 67 years.
– Any member may give the registration to the state
government.


SALARIES,HONORARIUM AND OTHER
ALLOWANCES OF THE PRESIDENT AND
MEMBERS OF THE NATIONAL COUNCIL
• The president shall be entitled to salary, allowance as are
available to a sitting judge of the state council shall receive a
consolidated honorarium of 10,000 per month per day of
sitting.
• The president and the members shall be entitled to traveling
and daily allowances on official tour.
• They shall also be entitled to conveyance allowance of 150 Rs.
Per day of its sitting or sum of 1500 per month.


TERMS AND CONDITIONS OF THE
PRESIDENT AND MEMBERS
• Before appointment -:national council have to take
an undertaking that he will not have any such finance
or other interest.
• Every member shall hold for the term of 5 years or
up to the age of 70 years.
• Resignation shall be given to the central government
• Casual vacancy or resignation shall be filled by fresh
appointment.


• When president is unable to discharge the
functions owing to absence, illness, he shall
discharge the function of the president until
the new president is appointed.
• The president or any member cease to hold
the office after his


PROVISIONS RELATING TO APPEALS TO
THE NATIONAL COMMISSION [sec 19]
• It may prefer an appeal against such order
of state council within a period of 30 days.
• No appeal by a person, who is required to
pay an amount or unless the appellant has
deposited 50% of the amount or Rs. 35,000
which is less.


HEARING OF APPEAL [sec19-A]
• An appeal filed before the state commission
or national council shall be heard as
expeditiously as possible and family disposed
of the appeal within a period of 90 days.


NATIONAL COMMISSION
Composition
– A person who is judge of the state council to be
nominated by the chief justice of India
-:chairman.
– The secretary in the department of legal affairs in
the government of India-:member.
– Secretary of the department dealing with
consumer affairs in the government-:member.
– Not less than four member-:and one of whom
shall be women.


REMOVAL OF THE PRESIDENT OR
OTHER MEMBERS FROM THE OFFICE
• Has become physically or mentally incapable.
• Remain absent in 3 consecutive sittings except
for reasons beyond his control etc.


JURISDICTION OF THE NATIONAL
COMMISSION
• Monetary jurisdiction:- where the value of goods and
services exceeds one crore
• Appellate jurisdiction:-National council has a power
to entertain appeals against the order of any state
commission.
• Supervisor and revisional jurisdiction:-National
council has the jurisdiction to call for the records
which are pending or which has failed to exercise a
jurisdiction so rested or with material irregularity.


POWERS AND PROCEDURE
APPLICABLE TO THE NATIONAL
COUNCIL [sec 22]
• To review any orders when there is an error
apparent on the face of records.
• Power to set aside export orders.
• Transfer of cases.
• Circuit benches-:
– It shall ordinarily function at new Delhi and it
might perform its function at such other place as
central government notifies.


CONTENT OF A COMPLAINT
• It shall be in person or his agent or sent by
registration post addressed to the national
commission.
– The name, description and address of the
complaint and the opposite party.
– Time and place it arose.
– Documents in support of the allegations contained
in the complaint.
– Relief that the complaint.

APPEARANCE OF THE PARTIES BEFORE
THE NATIONAL COUNCIL [sec 14(3)]

• Complainant or his agents fails to appear
before the national council, the national
council may either dismiss the complaint or
decide it on merit.


TIME LIMIT FOR DECIDING THE
COMPLAINT
• It shall decide the complaint within 3 months
from the date of notice received where the
complaint does not require any analysis or
testing of commodities.


ORDERS BY THE NATIONAL
COMMITION
• It shall issue orders to the opposite party and
direct it on them.
• Where the orders of the national commission
has been affirmed by the state council, be
published in the official gazette.


RULES RELATING TO THE PROCEDURE
FOR HEARING THE APPEAL BY THE
NATIONAL COUNCIL
• Memorandum shall be presented by appellant
or his agent.
• Memorandum shall be in legible handwriting
under distinct heads, the ground of appeal
shall be narrative.
• It shall be accompanied by a certified copy of
the state commission and such other
documents.

• If the appeal is after the period of limitation it shall
mention its reason.
• The appellant shall submit 6 copies of the
memorandum.
• On the date of hearing if the appellant or his agent
fails to appear, the national council may either
dismiss or shall proceed export.
• The appellant shall not urge or he heard of any
ground which are not put in the memorandum.
Commission shall deciding shall not on any
rely on other ground other than
memorandum.


• The national council can adjourn the appeal,
but not more than one adjournment shall be
given, it shall decide the appeal within 90 days
from the first date of hearing.
• The order is communicated to the parties free
of cost.


SITTING OF THE NATIONAL COUNCIL
AND SIGNING OF ORDERS
• It shall be conducted by the president or the
senior most member and atleast two
members together.
• Every order shall be signed by the president or
the senior most member and at least two
member, if there is difference of opinion the
majority will prevail.


PROVISION OF APPEAL TO THE
SUPREME COURT
• It shall make an appeal to the supreme court
against the order of national council within 30
days from the date of the order.
• Unless the person deposit 50% of the amount
or Rs 50,000 which is less.


Cp act

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