Consumer Protection Act, 2019- Part III

CS Meenakshi Jayaraman
Consumer Protection Act, 2019
Part III

2
Credits and Acknowledgments
Iswariya BS

3
Legends used in the Presentation
CCPA Central Consumer Protection
Authority
OP Opposite Party
CG Central Government Reg. Regulation
CPC Civil Procedure Code, 1908 SG State Government
NGO Non-Government Organization U/s. Under Section
OTP One Time Password w.e.f. With effect from

4
Presentation Schema
Mediation as per Consumer
Protection Act, Rules &
Regulations
E-filing of Consumer cases
Central Consumer Protection
Authority and its general powers
Case law: State bank of India v.
Amitesh Mazumder

Definition
6
Mediation
Mediation Cell
Means the process by which a mediator
mediates the consumer disputes
Means a Consumer Mediation Cell
established in accordance with the
provision of sec. 74 and includes
mediation cells attached to regional
benches of National Commission
Mediator
Means a mediator as referred in sec. 75
Parties
Regulation
Means party to a dispute / any other
proceeding pending before the Consumer
Commission
Means the regulations made by the
National Commission / as the case may be,
the Central Authority
Settlement
Means a settlement arrived at in the
course of Mediation proceeding in respect
of all / some of the issues involved in a
consumer dispute pending before a
Consumer Commission

Establishment of Consumer mediation cells- Sec. 74
7
Number of persons in a mediation cell: Such number of persons as may be prescribed
•List of empanelled mediators
•List of cases handled by the cell
•Record of proceedings and
•Any other information as prescribed in the reg.
Records to be
maintained by
every consumer
mediation cell
How can a consumer
mediation cell be established
at National level and State
level?
Consumer mediation cell which is attached to
the National Commission and each of its
regional benches shall be established by the
CG through notification
Consumer mediation cell which is attached to
District Commissions and State Commission
of the State shall be established by the
respective SG through notification

Submission of quarterly reports
8
Consumer Mediation cell attached to
National Commission and its regional
benches
State Commission
District Commission
National
Commission
State Commission
District
Commission
Hereinafter the word Commission refers to District / State / National Commission

Contents of quarterly report
9
(a) a list of its empanelled mediators, including experience and qualifications of each of
them
(b) the number of cases pending before it at the beginning of the quarter
(c) the number of cases referred to it during the quarter
(d) the number of cases disposed of during the quarter
(e) the number of cases pending at the end of the quarter
(f) In respect of cases referred to mediation- the number of cases assigned to each
mediator, the number of cases disposed of by him during the quarter and the number
of cases in which the mediation referred to him was successful and not successful
(g) the fee paid to each mediator during the quarter
Every mediation cell shall submit a quarterly report to the Commission
within 1 month of the end of quarter

Empanelment of Mediators- Sec. 75
10
Duty of
Commission
• For the purpose of mediation, the Commission shall prepare a panel of the
mediators to be maintained by the consumer mediation cell attached to it,
on the recommendation of a selection committee consisting of the
President and a member of the respective Commission
Details of
empanelled
mediators
• Procedure, terms and conditions for empanelment,
• Qualifications and experience required, manner of training, fee payable,
code of conduct of empanelled mediators,
• Grounds on which, and the manner in which, empanelled mediators shall be
removed / empanelment shall be cancelled and other matters relating
thereto, shall be such as may be specified by reg.
Validity of
panel of
mediators
• Valid for a period of 5 years and the empanelled mediators shall be eligible
to be considered for re-empanelment for another term, subject to such
conditions as may be specified by reg.

Nomination of Mediators from panel
11
Duty of Mediator to disclose certain facts
Replacement of Mediator in certain cases
(a) Any personal, professional or financial interest in the outcome of the consumer dispute;
(b) The circumstances which may give rise to a justifiable doubt as to his independence /
impartiality and
(c) Such other facts as may be specified by reg.
Commission shall consider the suitability of a person for resolving the consumer dispute
involved while nominating a person from the panel of mediators prepared by it on
recommendation of selection committee
If the Commission is satisfied, on the information furnished by the mediator / on the
information received from any other person including parties to the complaint, it shall
replace such mediator by another mediator after hearing the mediator

Procedure for Mediation
12
Mediation shall be held in the respective consumer
mediation cell attached to the Commission
Where a consumer dispute is referred for mediation by the
Commission, the respective mediator nominated by such
Commission shall have regard to –
 The rights and obligations of the parties,
 The usages of trade, if any,
 The circumstances giving rise to the consumer dispute
and
 Such other relevant factors, as he may deem necessary
and
 Guided by the principles of natural justice while carrying
out mediation
Mediator so nominated shall conduct mediation within such
time and in such manner as may be specified by reg.
No appeal shall lie from an order passed by District Commission
pursuant to a settlement through mediation u/s. 80

Mediation Proceedings
13
Regulation 11 of Consumer Protection Mediation Regulations, 2020 w.e.f. 24th July,
2020 lays down the provisions for mediation proceedings as follows:
Mediation shall be conducted in the presence of the parties /
their authorised representatives / counsel
It shall stand terminated on expiry of 3 months from the date
of first appearance before the mediator
Exception: If the time for completion of mediation is extended
by the Consumer Commission, in that case it shall stand
terminated on expiry of such extended time
The parties shall be entitled to appear before the mediator in
person / through their respective counsel / authorised
representatives
The mediator shall be guided by the principles of natural justice
and fair play but shall not be bound by the provisions of the
CPC, 1908 / the Indian Evidence Act, 1872

Contd.
14
If a party does not participate in the mediation proceedings, the
Consumer Commission may direct such a party to participate in
the proceedings
The parties shall provide all such information to the mediator as
may be reasonably required by him for conducting the mediation
proceedings
The record of the proceedings shall be prepared by the mediator
on every date and shall be signed by the parties / their Counsel,
authorised representatives / Attorneys
The agreement executed between the parties shall be submitted
by the Mediator  Consumer Commission, in a sealed cover,
with a forwarding letter
If no agreement is executed between the parties, within the time
prescribed, the Mediator shall intimate  Consumer
Commission, without in any manner disclosing as to what
transpired during the mediation proceedings, what was the stand
taken by the parties / why the agreement could not be reached

15
The mediator shall attempt to facilitate a voluntary resolution of disputes
between the parties, assist them in removing the misunderstandings, if any,
and generating options to resolve their disputes, but shall not impose any
term / any settlement upon the parties and he shall explain the terms of the
agreement, to the parties, before obtaining their respective signatures on it
Both parties & mediator shall maintain confidentiality in respect of the
events that transpire during the mediation proceedings and shall not use /
rely upon any information, document etc. produced, the proposals and
admissions made / the views expressed during the mediation proceedings
There shall be no audio / video recording of the mediation proceedings
The mediator shall not communicate with the Consumer Commission except
by way of his report, with copies to all the parties
1) No mediator shall be liable for any civil / criminal proceedings, for any act
done / omitted to be done bonafide by him, in his capacity as a mediator
2) He shall not be summoned by a party to appear in a Court / other forum,
to testify in regard to any information received / the action taken by him
during the mediation proceedings
Role of Mediator
Confidentiality
Communications
Immunity

Matters not to be referred to Mediation
16
the matters relating to
proceedings in respect of
medical negligence
resulting in grievous injury
/ death
matters which relate to
defaults / offences for
which applications for
compounding of offences
have been made by 1 /
more parties
cases involving serious and
specific allegations of
fraud, fabrication of
documents, forgery,
impersonation, coercion
cases relating to
prosecution for criminal
and non-compoundable
offences
cases which involve public
interest / the interest of
numerous persons who are
not parties before the
Commission
As per Rule 4 of Consumer Protection mediation Rules, 2020
w.e.f. 20th July, 2020, the following matters shall not be
referred to mediation
If the Commission before which the case is pending may choose not to refer it to mediation if it
appears to it, that no elements of a settlement exist which may be acceptable to the parties / that
mediation is otherwise not appropriate having regard to the circumstances of the case and the
respective positions of the parties

Refund of fee
17
Resort to arbitral / judicial proceedings
Settlement agreement not to be discharged by death
The parties shall not initiate any arbitral / judicial proceedings in 2 cases-
1) In respect of the matter which is the subject-matter of mediation and
2) When there is an express agreement between the parties for not initiating any such
proceeding
If the Commission refers the parties to mediation, the complainant shall be entitled to
receive full amount of application fee paid in respect of such complaint, if a settlement is
reached between such parties
 A settlement agreement shall not be discharged by the death of any party thereto and
shall be enforceable by / against the legal representative of the deceased party.
 Nothing in this rule shall affect the operation of any law by virtue of which any right of
action is extinguished by the death of a person

Settlement through Mediation
18
If an agreement is
reached between
the parties
• If an agreement is reached between the parties with respect to all /
some of the issues involved in the consumer dispute, then the terms
of such agreement shall be reduced to writing accordingly, and
signed by the parties to such dispute / their authorised
representatives
If the issue is
settled by
mediation
• A settlement report shall be prepared by the mediator and
forwarded to the concerned Commission along with the signed
agreement
If the issue is not
settled by
mediation
• Where no agreement is reached between the parties within the
specified time / the mediator is of the opinion that settlement is
not possible
• He shall prepare the report accordingly and submit the same to the
concerned Commission

Recording settlement and passing of order
19
•Within 7 days on receipt of settlement report
from the mediation cell the concerned
Commission shall pass order recording such
settlement of consumer dispute and dispose of
the matter accordingly
If the consumer dispute is
settled in whole
•The concerned Commission shall record
settlement of the issues which have been so
settled and continue to hear other issues
involved in such consumer dispute (not settled)
settled in part
•The concerned Commission shall continue to
hear all the issues involved in such consumer
dispute
not settled

21
Rule 8 of Consumer Protection (Consumer Disputes Redressal Commission) Rules, 2020
lays down the provisions for manner of filing complaints electronically
“The electronic filing of complaints to 3 Commissions shall be effective from the
date and for such category of cases as may be notified by the President of National
Commission from time to time”
On 7th September, 2020, the President of National Commission notified the same
date for commencement of electronic filing of complaints to National Commission
Online portal of such filing through https://edaakhil.nic.in was launched at 4 pm

23
The online portal provides instructions of e-filing of consumer complaints on the portal in 2 different
modes:
(i) Video Instructions (in English and Hindi)
(ii) User manual (script only in English)
Hence, the consumer can clarify his doubts in e-filing and have a clear understanding about the process
before filing the complaint

24
By clicking the respective document, the User manual
can be downloaded (PPT file)

25
The Portal also provides pdf version of Consumer Commission Rules and General Rules
This portal removes the difficulty of Consumers from visiting Consumer Forums
The only requirement is to have an user registration on the portal to file an e-complaint
Merits of Online Portal

Tabs
26
5 Categories shown in the Consumer
Commission Online- Application Portal
Home
Complainant /
Advocate Section
Consumer
Commission
Section
Help & user
manuals
Useful links

27The new user shall register himself and verify his account with OTP before logging in
Tab 2

28
Tab 3
This tab is exclusively available for Consumer Commission. Consumer cannot access the tab

User Registration
30
One must have a valid e-mail id for user
registration
Basic details to be filled and soft copy of ID
proof shall be attached
On successful submission of details, OTP
will be sent to the registered mobile
number and
A confirmation mail for activation of the
user id will be sent to the registered e-mail
id
All documents attached in the online portal shall be in pdf format

31
To activate the account, the tab “Activate Account” to be selected
Once the account is created / activated, the user registration will be created
successfully

New Case filing
32
On creation of user ID, one can file a case in the portal by
selecting “login” under the Complainant / Advocate tab (Tab 2)
Various details regarding the complaint has to be filled by the
user as shown in the following slide
Documents mandatorily to be attached: Index, List of dates
and events, Memo of parties (with complete addresses),
Complaint with affidavit and any other document can also be
attached by mentioning the respective file name (pdf format)
OTP Verification: On entering all the details and on attaching
the documents, OTP will be sent to the registered mobile
number / e-mail ID
On entering the OTP, an acknowledgement message will be
displayed and the portal directs to payment gateway (either
online / offline) as the last step

Central Consumer Protection Authority
and its Powers
34

35
Establishment of
CCPA
•CG has established the Central Consumer Protection Authority as Central
Authority by a notification w.e.f. 24th July, 2020
Rationale
•To regulate matters relating to violation of rights of consumers, unfair
trade practices and false / misleading advertisements which are
prejudicial to the interests of public and consumers and to promote,
protect and enforce the rights of consumers as a class
Composition
•A Chief Commissioner and such number of other Commissioners as may
be prescribed, to be appointed by the CG
Headquarters
•At National Capital Region of Delhi and it shall have regional and other
offices in any other place in India as the CG may decide

Present Composition of CCPA & place of functioning
36
Additional Secretary, Department
of Consumer Affairs as
Joint Secretary, Department of
Consumer Affairs as
Director General, Bureau of Indian
Standards as
Chief
Commissioner
Commissioner
Director General
(Investigation)
Director General, National Test
House as
Additional Director
General
(Investigation)
w.e.f. 29th July, 2020
At present, the CCPA is functioning in the premises of Indian Institute of Public Administration

Contd.
37
Rules relating to qualifications for appointment, method of recruitment,
procedure for appointment, term of office, salaries and allowances,
resignation, removal and other terms and conditions of service will be
made by CG by a notification
Any vacancy / defect in the constitution / any defect in the
appointment of Commissioner / any irregularity in the procedure of the
Central Authority not affecting the merits of the case shall not invalidate
the proceedings of CCPA
CG shall appoint such no. of officers & employees for efficient
performance of functions prescribed under the Act by prescribing their
salaries, allowances and other terms & conditions
CCPA shall engage such no. of experts and professionals of integrity and
ability, who have special knowledge and experience in the areas of
consumer rights and welfare, consumer policy, law, medicine, food
safety, health, engineering, product safety, commerce, economics,
public affairs / administration, as it deems necessary
Criteria for
Commissioners
Proceedings of
CCPA will not
be invalidated
Officers & other
employees
Experts &
Professionals

Duties of CCPA
38
Protect, promote and enforce the rights of consumers as a class,
and prevent violation of consumers rights under this Act
Prevent unfair trade practices and ensure that no person engages
himself in unfair trade practices
Ensure that no false / misleading advertisement is made of any
goods / services which contravenes the provisions of this Act /
the rules / reg. made thereunder
Ensure that no person takes part in the publication of any
advertisement which is false / misleading

Powers & Functions of CCPA
39
Inquire / cause an inquiry / investigation to be made into violations of consumer
rights / unfair trade practices, either suo motu / on a complaint received / on the
directions from the CG
File complaints before any Commission under this Act
Intervene in any proceedings before any of the Commission in respect of any
allegation of violation of consumer rights / unfair trade practices
Review the matters relating to, and the factors inhibiting enjoyment of consumer
rights, including safeguards provided for the protection of consumers under any
other law for the time being in force and recommend appropriate remedial
measures for their effective implementation
Without prejudice to the duties, CCPA can carry on any of the following activities
for performing such duties

Contd.
40
Recommend adoption of international covenants and best international practices on
consumer rights to ensure effective enforcement of consumer rights
Undertake and promote research in the field of consumer rights
Spread and promote awareness on consumer rights
Encourage NGOs and other institutions working in the field of consumer rights to co-
operate and work with consumer protection agencies

41
Contd.
Mandate the use of unique and universal
goods identifiers in such goods, as may be
necessary, to prevent unfair trade practices
and to protect consumers' interest
Issue safety notices to alert consumers
against dangerous / hazardous / unsafe goods
/ services
Advise the Ministries and Departments of the
Central and State Governments on consumer
welfare measures
Issue necessary guidelines to prevent unfair
trade practices and protect consumers'
interest

43
State Bank of India
Amitesh
Mazumder
Facts of the case
Complainant
Opposite Party
(OP)
The Complainant took a loan of Rs. 13,50,000 for his business purpose from the OP
and deposited title deed of an immovable property as a security for the loan taken
On settling the loan availed, the Complainant sought for return of title deed which
was deposited with the OP
But, the OP failed to return the title deed to the Complainant

Contd.
44
• Hence, the Complainant found no way other than lodging a complaint before District
Forum as there was no result even after issuing legal notice to the OP
• But the OP was not up to their commitment as there was no effective result
forthcoming to the Complainant
• Hence, the Complainant moved to RBI Ombudsman
• It closed the case as the OP assured about early settlement of the issue
• OP admitted that the original title deed was not traceable by them and hence the
following order was passed by the District Forum on 4th December, 2017:
a) To pay Rs. 5 lakhs as compensation and
b) Rs. 30,000 as litigation cost to the Complainant within 30 days from the date of order
District Consumer Disputes Redressal Commission

Contd.
45
Revision of order to National Consumer Dispute Redressal Forum
Appeal to State Consumer Disputes Redressal Commission
In view of the facts and circumstances of the case and observations by National
Commission in Indian Overseas Branch V. Sri K Bala Reddy and Anr. – “before dismissing
the revision petition, the loss of title deed would lead to erosion in the valuable
property, therefore, the OP should be directed to pay compensation for the loss of title
deed”
The State Commission considered that it has no reason to interfere with the decision of
District Forum and thus, it dismissed the appeal on 23rd October, 2019
OP filed for revision of order with the National Commission

Contd.
46
It is ready to provide the certified copy of the title deed to the Complainant
It will issue a Certificate to the Complainant admitting the deposit of title deed
with it and its inability to return the same
It shall bear the cost of issuing a public notice in the newspapers with respect
to the loss of the title deed
The revenue record of the immovable property is available with the
Complainant and it can be used by him to establish his title
Submissions made by the learned counsel of OP

Contd.
47
Though the bank fulfills all its contentions, the Complainant will suffer irreparable
injury, because, no one in the market will agree to purchase an immovable property on
payment of its prevailing market value, if he knows that the original title deed of the
property will not be delivered to him by the seller
Analysis of National Commission
There would always be an apprehension of the misuse of the title deed of the
immovable property by an unscrupulous person, by depositing the same with a bona-
fide lender, since an Equitable Mortgage could be created by deposit of the Title Deed
The erosion in the value of the property if it is to be sold without the title deed would
be substantial
Moreover, if the complainant decides to take a loan by deposit of the title deed of the
property, no lender including a bank might be willing to give a loan against an
immovable property unless the title deed of the property would be deposited with it
Decision of National Commission: Thus, the National Commission dismissed
the revision petition filed by the OP on 3rd January, 2020

48
Thank You!
Scan the QR Code to Join our
Research Group on WhatsApp
Scan the QR Code to explore more
Research from our Website
DVS Advisors LLP
India-Singapore-London-Dubai-Malaysia-Africa
www.dvsca.com
Copyrights © 2020 DVS Advisors LLP

Consumer Protection Act, 2019- Part III

More Related Content

What's hot

Similar to Consumer Protection Act, 2019- Part III

More from DVSResearchFoundatio

Recently uploaded

Consumer Protection Act, 2019- Part III