Cp act


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Cp act

  1. 1. Monday, November 5, 2012 1
  2. 2. 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
  3. 3. Monday, November 5, 2012 3
  4. 4. 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.Monday, November 5, 2012 4
  5. 5.  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.Monday, November 5, 2012 5
  6. 6. PERSON [sec2(1)(m)]A PERSON INCLUDE1. A firm whether registered or not2. 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.Monday, November 5, 2012 6
  7. 7. 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.Monday, November 5, 2012 7
  8. 8. 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.Monday, November 5, 2012 8
  9. 9.  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.Monday, November 5, 2012 9
  10. 10. 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.Monday, November 5, 2012 10
  11. 11. 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.Monday, November 5, 2012 11
  12. 12. 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.Monday, November 5, 2012 12
  13. 13. 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.Monday, November 5, 2012 13
  14. 14. COMPLAINANT [sec 2(1)(b)] Complainant A consumer A voluntary ass. Central govt. / State govt. One or more consumer Legal hirers or representativeAny public cause can be take by an association in theform ofNovember 5, 2012 Monday, public interest litigation. 14
  15. 15. 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.Monday, November 5, 2012 15
  16. 16. 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.Monday, November 5, 2012 16
  17. 17.  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.Monday, November 5, 2012 17
  18. 18.  Materially misleads the public concerning theprice at which a products has been soldGives false or misleading facts disparaging thegoods, services or trade of another person.Publication of any advertisement whether in anynewspaper or otherwise,for the sale or supply at abargaining price.Bargaining price means a. A price that is stated in any advertisement tobe a bargain price reference to ordinary price. b. A price which the person hears/sees theadvertisement, would reasonably understand tobe bargain2012Monday, November 5, price. 18
  19. 19. Monday, November 5, 2012 19
  20. 20. CONSUMER PROTECTION COUNCILS sec(4 to 8)Monday, November 5, 2012 20
  21. 21. Monday, November 5, 2012 21
  22. 22. 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.Monday, November 5, 2012 22
  23. 23. • 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 20Monday, November 5, 2012 23
  24. 24. • 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.Monday, November 5, 2012 24
  25. 25. • 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.Monday, November 5, 2012 25
  26. 26. 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.Monday, November 5, 2012 26
  27. 27. • 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.Monday, November 5, 2012 27
  28. 28. 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.Monday, November 5, 2012 28
  29. 29. • Right to seek redressal against unfair practice• The right to consumer protection.Monday, November 5, 2012 29
  30. 30. THE STATE CONSUMER PROTECTION COUNCILS [sec(7 to 8)]Monday, November 5, 2012 30
  31. 31. 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.Monday, November 5, 2012 31
  32. 32. 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.Monday, November 5, 2012 32
  33. 33. 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.Monday, November 5, 2012 33
  34. 34. THE DISTRICT CONSUMER PROTECTION COUNCILSDistrict 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.Monday, November 5, 2012 34
  35. 35. Monday, November 5, 2012 35
  36. 36. OBJECT• To protect the interest of the consumer within the district.Monday, November 5, 2012 36
  37. 37. 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.Monday, November 5, 2012 37
  39. 39. Monday, November 5, 2012 39
  40. 40. 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. Monday, November 5, 2012 40
  41. 41. • Person shall be disqualified – Insolvent – Insolvent – Unsound mind – Dismissed – AfterMonday, November 5, 2012 41
  42. 42. 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 -:memberMonday, November 5, 2012 42
  43. 43. 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.Monday, November 5, 2012 43
  44. 44. 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, acomplaint can be filled in Monday, November 5, 2012 44
  45. 45. 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.Monday, November 5, 2012 45
  46. 46. 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.Monday, November 5, 2012 46
  47. 47. • 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.Monday, November 5, 2012 47
  48. 48. • 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.Monday, November 5, 2012 48
  49. 49. • 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).Monday, November 5, 2012 49
  50. 50. 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.Monday, November 5, 2012 50
  51. 51. 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.Monday, November 5, 2012 51
  52. 52. JURISDICTION OF STATE COMMISSION [sec 17] JURISDITION OF STATE COMMISSION Supervisory monetary appellate revisionalMonday, November 5, 2012 52
  53. 53. • 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.Monday, November 5, 2012 53
  54. 54. 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.Monday, November 5, 2012 54
  55. 55. 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.Monday, November 5, 2012 55
  56. 56. 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.Monday, November 5, 2012 56
  57. 57. STATE COMMISSIONComposition 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.Monday, November 5, 2012 57
  58. 58. – 50% of the members shall be having judicial back ground. – Disqualification.Monday, November 5, 2012 58
  59. 59. 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.Monday, November 5, 2012 59
  60. 60. SALARIES,HONORARIUM AND OTHERALLOWANCES OF THE PRESIDENT ANDMEMBERS 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.Monday, November 5, 2012 60
  61. 61. TERMS AND CONDITIONS OF THEPRESIDENT 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.Monday, November 5, 2012 61
  62. 62. • 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 hisMonday, November 5, 2012 62
  63. 63. PROVISIONS RELATING TO APPEALS TOTHE 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.Monday, November 5, 2012 63
  64. 64. 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.Monday, November 5, 2012 64
  65. 65. NATIONAL COMMISSIONComposition – 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.Monday, November 5, 2012 65
  66. 66. 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.Monday, November 5, 2012 66
  67. 67. 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.Monday, November 5, 2012 67
  68. 68. 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.Monday, November 5, 2012 68
  69. 69. 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.Monday, November 5, 2012 69
  70. 70. 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.Monday, November 5, 2012 70
  71. 71. 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.Monday, November 5, 2012 71
  72. 72. 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.Monday, November 5, 2012 72
  73. 73. 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.Monday, November 5, 2012 73
  74. 74. • 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.Monday, November 5, 2012 74
  75. 75. • 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.Monday, November 5, 2012 75
  76. 76. 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.Monday, November 5, 2012 76
  77. 77. 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.Monday, November 5, 2012 77