Key Takeaways: - Framework of the Act - Significance of rendering services - Jurisdiction of various Forums

1. CS Meenakshi Jayaraman
Consumer Protection Act, 2019 - Part I

2. 2
Credits and Acknowledgments
Iswariya BS

3. 3
Legends used in the Presentation
CG Central Government
Dept. Department
SG State Government

4. 4
Presentation Schema
Framework of the Act
Significance of rendering
service
Case law: Arvind Shah (Dr.)
v. Kamlaben Kushwaha
Jurisdiction of various
Forums
Case Law: General manager,
Telecom v. M. Krishnan and
another

5. Purpose of the Act
5
To protect the interest of the
consumers and
to establish authorities at
Central, State and District levels
for
timely and effective
administration
Settlement of consumers’
disputes and
 For matters connected
therewith or incidental thereto

6. Framework of the Act
6

7. 7
The Act extends to whole of India except the state of Jammu and Kashmir
The Act came into force on 20th July, 2020
The Act applies to all goods and services unless expressly provided by Central
Government by notification
Consumer Protection Act, 2019

8. 8
Consumer Protection Act, 2019
I
Preliminary
V
Mediation
II
Consumer
Protection
Councils
VI
Product
liability
III
Central
Consumer
Protection
Authority
VII
Offences &
penalties
IV
Consumer
Disputes
Redressal
Commission
VIII
Miscell
aneous
Structure of the Act

9. 9
The Act has widened the definition of consumer
Includes offline or online transactions through electronic means or by
teleshopping
Further includes direct selling or multi-level marketing
Consumer - definition

10. Consumer Protection Councils
10
Central Consumer
Protection Council
Chairperson (Minister
of Dept. of consumer
affairs CG) and such
other official and non-
official members
At least 1 meeting
every year
To render advice on
protection and
promotion of
consumers under this
Act
State Consumer
Protection Council
District Consumer
Protection Council
Chairperson
(Collector) and such
other official and non-
official members
Not less than 2
meetings every year
To render advice on
protection and
promotion of
consumers under this
Act within the district
Chairperson (Minister of
consumer affairs SG) and
such other official and
non- official members as
may be nominated by
CG (not exceeding 10)
Not less than 2
meetings every year
To render advice on
protection and
promotion of consumers
under this Act
within the state
Members
of council
No. of
meetings
in a year
Objects
of the
council

11. Significance of rendering services
11

12. Service - Definition
12
Means:
Service of any
description made
available to potential
users
Includes but not
limited to provision of
facilities in connection
with:
Excludes:
Rendering of any
service free of charge
or
Under a contract of
personal service
Banking, financing,
insurance, transport,
processing, supply of
electrical or other
energy, telecom,
Boarding or lodging or
both, housing
construction,
Entertainment,
amusement, purveying
of news or other
information

13. Sec. 51 of the Act – Appeal to National Commission
13
Any person aggrieved by order made by State Commission in exercise of following powers-
 Complaints where the value of goods / services paid as consideration exceeds rupees 1
crore but does not exceed rupees 10 crores or such other value as prescribed by CG
 Complaints against unfair contracts, where value of goods / services < rupees 10 crores
• May prefer an appeal against National Commission within a period of 30 days from the
date of order
• Appeals filed after a period of 30 days is entertained if the Commission is satisfied with
sufficient cause for the delay
• The appeal shall lie under this sec. only if National Commission is satisfied that the case
involves a substantial question of law
• An appeal may lie to the National Commission under this section from an order passed
ex parte by the State Commission
• The person making an appeal shall deposit 50% of amount ordered by State
Commission

14. Case law
14
Complainant alleged that her deceased son, aged 20 years and otherwise healthy,
died due to medical negligence on the part of the doctor who administered wrong
treatment
State Commission Judgement: Awarded to the Complainant a compensation of Rs. 5
lakhs with interest and costs.
Further, the case went on appeal to National Commission
Arvind Shah (Dr.)
Kamlaben Kushwaha
Subject: Negligence in providing service
III (2009) CPJ 121

15. Contd.
15
In appeal, the doctor admitted to having treated the patient but did not produce any
prescription on record
But National Commission concluded that the 2 medical prescriptions which were
available on record which the doctor sought to deny, could have been written only by
him
Those 2 prescriptions did not mention any of the patient’s complaints / symptoms,
clinical observations on examining the patient or his diagnosis of the ailment
Even the ordinary vital parameters like temperature, blood pressure, pulse rate etc.
were not noted
The Commission observed that the Medical Council of India / State Medical Council, with
one of which the doctor had to be registered to practice modern (allopathic) medicine,
required, through their respective codes of ethics/ guidelines/ regulations to make some
minimal record even for out patients
Observations of National Commission

16. Contd.
16
If the doctor considered none of the minimal records to be essential, he would need to at least
record a provisional diagnosis of the patient’s ailment in the prescription while advising
further diagnostic test(s) / treatments. This was one of the primary duties of disclosure owed
by a physician of ordinary skills to his patient
In line with Apex Court’s decision in Samira Kohli v Dr. Prabha Manchanda regarding need for
valid prior consent of the patient for his treatment by a doctor and the doctor’s
corresponding duty of disclosure, it was essential for the doctor to write a prescription with
such necessary details and failure to do so will constitute medical negligence
The Commission further observed that if a patient found that the doctor’s treatment did not
help ease his felt problem and wanted to consult another, a prescription with such details
would be necessary
On the other hand, a prescription meeting these basic requirements would also assist a doctor
in demonstrating that he had treated his patient with due care, if charged with a wrong/ false
allegation of negligence by the patient

17. Contd.
17
Final Order on 30/04/2009:
As the material on record was insufficient to attribute the patient’s death directly
and wholly to the doctor’s negligence, the National Commission scaled down the
compensation to Rs. 2.5 lakhs along with interest

18. 18
Jurisdiction of various Forums

19. Jurisdiction of National Commission
19
The National Commission shall have jurisdiction to entertain-
• Appeals against the order of State Commission
• Appeals against the order of Central Authority and
• Complaints where the value of goods / services paid as consideration exceeds rupees 10
crores or such other value as prescribed by CG
• Complaints against unfair contracts, where the value of goods / services paid as
consideration exceeds rupees 10 crores
• To call for the records and pass appropriate orders in any consumer dispute which is
pending before or has been decided by any State Commission where it appears to the
National Commission that such State Commission has exercised a jurisdiction not vested
in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise
of its jurisdiction illegally or with material irregularity

20. Jurisdiction of State Commission
20
The State Commission shall have jurisdiction to entertain-
Complaints where the value of goods / services paid as consideration
Rs. 1 crore to Rs. 10 crores or such other value as prescribed by CG
To call for the records and pass appropriate orders in any consumer
dispute which is pending before or has been decided by any District
Commission within the State, where it appears to the State
Commission that such District Commission has exercised a jurisdiction
not vested in it by law, or has failed to exercise a jurisdiction so vested
or has acted in exercise of its jurisdiction illegally or with material
irregularity
Complaints against unfair contracts, where the value of goods /
services paid as consideration < Rs. 10 crores
Appeals against the orders of any district commission within the State
and

21. Contd.
21
• the opposite party or each of the opposite parties, where there are more than one, at
the time of the institution of the complaint, ordinarily resides or carries on business or
has a branch office or personally works for gain or
• 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 carries on business or
has a branch office or personally works for gain, provided in such case, the permission
of the State Commission is given or
• the cause of action, wholly or in part, arises or
• the complainant resides or personally works for gain
A Complaint can be instituted in a State Commission within the limits of whose
jurisdiction-

22. Jurisdiction of District Commission
22
• the opposite party or each of the opposite parties, where there are more than one, at
the time of the institution of the complaint, ordinarily resides or carries on business or
has a branch office or personally works for gain or
• 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 carries on business or
has a branch office or personally works for gain, provided in such case, the permission
of the District Commission is given or
• the cause of action, wholly or in part, arises or
• the complainant resides or personally works for gain
A Complaint can be instituted in a District Commission within the limits of whose
jurisdiction-
A District Commission shall have jurisdiction to entertain complaints where the
value of goods / services paid as consideration < Rs. 1 crore

23. Case law
23
The dispute in the case was regarding non payment of telephone bill for
telephone connection provided to respondent and for the said non-payment of
bill the telephone connection was disconnected
Aggrieved against the said disconnection, respondent filed a complaint before the
District consumer dispute redressal forum, Kozhikode
On 26th November, 2001 Consumer Forum allowed the complaint and directed the
appellant to reconnect the telephone connection and to pay compensation of Rs.
5,000 with 12% p.a. as interest from the date of filing of the compliant
General
Manager
telecom M. Krishnan and
Another

24. Contd.
24
Single judge of High Court, Division bench of High Court and Full bench of High Court dismissed the
writ appeal
Aggrieved against the order of the Consumer Forum, the appellant filed a writ petition before the
High Court of Kerala challenging the jurisdiction of the Consumer Forum
Hence, the appellant was before the Supreme Court by special leave
Supreme Court in its Order stated that when there is a special remedy provided in Sec. 7 B of the
Telegraph Act regarding disputes in respect of telephone bills then the remedy under Consumer
Protection Act is by implication barred

25. Contd.
25
Rule 413 of the Telegraph Rules provides that all services relating
to telephone are subject to the Telegraph Rules. A telephone
connection can be disconnected by the Telegraph Authority for
default of payment under Rule 443
It is well settled that the special law overrides the general law
In Chairman, Thiruvallur Transport Corporation v. Consumer
Protection Council it was held that the “National Commission
has no jurisdiction to adjudicate upon claims for compensation
arising out of motor vehicles accidents”

26. Cond.
26
Supreme Courts’ Order on 1st September 2009:
In view of the above, Supreme Court allowed this appeal, set aside the impugned
judgement and order of the High Court as well as the order of the District Consumer
Forum. No Order as to the costs.

27. 27
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