This ppt is on consumer protection act

2. CONSUMER PROTECTION ACT,1986
• The consumer protection act extends to the whole of India except
the state of Jammu and Kashmir.
• The act received the President’s assent on 24-12-1986.
• This act apply to all goods and services.
• It covers all sectors whether private, public or co-operative.
• The consumer can initiate action under the act against the
defective goods or deficient services rendered even by the public
sector or government undertakings such as Railways, Telephones,
airlines , banks.
• The government of India has declared 24 December as “ NATIONAL
CONSUMER DAY” as it was on that day that the then President of
India had given his assent to the enactment of this Act.
• Beside this, 15 march is observed as WORLD CONSUMER RIGHTS
DAY.

3. OBJECTIVES OF CPA, 1986
• Better protection of interests of consumers
• Protection of consumer rights

4. Consumer Rights
Safety
Education
Choose Information
Redressal
Heard

5. WHO IS A CONSUMER? SEC. 2 (1) (D)
Any person who:
• Buys any goods for a consideration which has been paid or
will be paid.
• User of such goods when such use is made with the approval
of such person.
• Hires or avails any service for a consideration which has been
paid or will be paid.
• obtain the services on deferred payment basis i.e. hire
purchase or lease.
• It does not include a person who obtains goods/ services for
resale or any commercial purpose.

6. FOLLOWING PERSONS FALL WITHIN
CATEGORY OF THE TERM ‘CONSUMER’
• Consumer of LPG, immediately when he registers for an
LPG connection
• warranty of free service
• Passengers travelling by a train
• subscribers of telephone
• users of electricity
• Alottee of a flat as a nominee of the government
• User of sewerage system laid by Municipal Corporation
• Parents of an infant patient

7. FOLLOWING PERSONS ARE NOT INCLUDED
WITHIN CATEGORY OF CONSUMER
• A winner of lottery
• Person buying goods either for resale, or for use in a
large scale profit- making activity

8. COMPLAINANT
A complainant means any of the following persons or authorities
who have made the complaint:
• a consumer
• one or more consumers when there are numerous consumers
having same interest
• in case of death of consumer, his legal heir or representative

9. COMPLAINT
A complaint means any allegation made by a complainant, in
writing, to the effect that:
• an unfair trade practice or a restrictive trade practice has been
adopted by any trader or service provider
• the goods purchased by him, or agreed to be purchased by
him suffers from defects in any respect.
• a trader or service provider, as the case may be, has charged
for the goods or services mentioned in the complaint, a price
excess of the price fixed under law or displayed on the goods or
agreed between the parties.
• goods/ services which will be hazardous to life and safety
when used are offered for sale to the public

10. DEFECT
• It means any fault, imperfection or shortcoming in
the quality, quantity, potency, purity or standard
which is required to be maintained under any law for
the time being in force or as claimed by trader in any
manner whatsoever in relation to any goods.

11. Jasbir Singh V. Mahindra Ford India Ltd.
a consumer of Chandigarh purchased a brand new car from a car
dealer Oriental Ford, of Chandigarh . A few days after the
delivery of the car it was discovered that the car was an old
one which had been involved in an accident but had been
repaired and repainted. On the orders of UT Consumer
Disputes Redressal Commission an inspection of the car was
done and it was ascertained that the car actually had met
with a accident. The commission passed an order to refund Rs
7,00181 along with interest of 18% and Rs 5,000 as damages
to the complainant.

12. DEFICIENCY
• It means any fault, imperfection, shortcoming or inadequancy
in the quality, nature and manner of performance of service. In
order to file a complaint against deficiency in service, such
service should necessarily have been rendered for
consideration.
 Non-delivery of any article by the courier, which causes some
serious hardship and inconvenience to the consignee is a case
of negligence in performance and deficiency of service by the
courier concerned.
 settlement of a claim by a life insurance company after an
undue delay of filing of a claim is held to be a case of high
negligence in performance of service by the life insurance
company.

13. MANUFACTURER: S.2(1) (J)
• “Manufacturer” means a person;
• i. Makes or manufactures any goods or parts thereof; or
• ii. Does not make or manufacture any goods but
assembles parts there from made or manufactured by
others and claims the end product to be goods
manufactured by himself; or
• iii. Puts or causes to be put his own marks on any goods
made or manufactured by any other manufacturer

14. PERSON- SEC- 2(1)(M)
• Includes :
• A firm, registered or not;
• A Hindu undivided family
• A co-operative society;
• Every other association registered as person under
the Societies Registration Act,1860.

15. UNFAIR TRADE PRACTICE
A trade practice which, for the purpose of promoting the sale,
use or supply of any goods or for the provision of any services,
adopt any unfair method or unfair or deceptive practice
including any of the following practice:
 Misleading advertisement and false representation
 claiming false affiliation or collaboration
 non-fulfilling of warranty/ guarantee and non-rendering of
satisfactory after-sale-service and warranty claims.

18. CASE STUDY OF
Acupressure Therapy Health Centre
(1986)

19. HARDEEP SINGLA
Mr. Hardeep Singla had booked Nimamtran Banquets On 6th April, 2007 for
arranging the marriage of his brother which was to be solemnised on
6th may, 2007. the petitioner paid the required amount of money for
the booking of the hall and to arrange dinner for 600 persons. However
on 22nd april, 2007 the petitioner came to know that the hall is already
booked for the same day for a marriage in the morning. When the
petitioner apprached the owner of the hall, he did not consider his case
and shown his helplessness, whereas petitoner had already printed the
wedding cards and started distribution with the address of Nimantran
Banquets.
Mr. Hardeep had to book some other place for the marriage and
also to cancel the old cards and printed new cards with new address.
Mr. Hardeep filed a suit against Nimantran Banquets for indulging in
UNFAIR TRADE PRACTICES for getting the hall booked but not providing
the hall at promised time. It was decided that Nimantran to pay sum of
Rs 3,20,000 as compensation to the petitioner for indulging in unfair
trade practices.

22. DISTRICT FORUM
• Lowest authority
• Established by state government in each district of the state.
• More than one forum in each district can be established
• The district forum can entertain complaints where the value of
goods services and the compensation, if any, claimed does not
exceed Rs 20 lakhs.
• Every appointment to District Forum shall be made by the State
Government on the recommendations of a selection committee
consisting of the President of the State Commission, the
Secretary-Law Department of the State and the Secretary in
charge of consumer affairs.
• Every member of the District Forum shall hold office for a term of
5 years or up to the age of 65 years which ever is earlier

23. • A member shall be eligible for re-appointment for another term of five
years or up to the age of 65 years, which ever is earlier.
• The salary or honorarium and other allowances payable to and other
terms and conditions of the service of the members of the District
Forum shall be prescribed by the State Government.
• Composition:-
 a person who is or who has been or is qualified to be, district Judge
who shall be its President
 Two members, one of whom shall be woman, who shall have following
qualifications:
 be not less than 35 years of age
 possess a bachelor’s degree from recognised university
 be a person of ability, integrity and standing and have adequate
knowledge and experience of at least 10 years in dealing with problems
relating to commerce, law, economics, accountancy, public affairs or
administration.

24. • Manner in which complaint shall be made:
1. Any complaint may be filed with a District Forum by:
a. the consumer to whom such goods/ service are sold or delivered or
agreed to be sold or delivered or
b. any recognised consumer association
c. one or more consumers
d. Central or state government
2. Every Complaint shall be accompanied with such amount of fee and
payable in such manner as may be prescribed
3. on receipt of a complaint the District Forum may allow the
complaint to be proceeded with or rejected. A complaint shall not
be rejected unless an opportunity of being heard has been given to
the complainant.
4. Where a Complaint is allowed to be proceeded with, the District
Forum may proceed with the complaint in the manner provided
under this act.

25. • A District Forum shall have the powers
a. To remove the 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 compensation to the consumer for any loss or injury
suffered by the consumer due to the negligence of the opposite
party.
e. not to offer hazardous goods from being offered for sale.
f. To provide for adequate costs to the parties
g. To issue corrective advertisement to neutralize the effect of
misleading advertisement at the cost of opposite party responsible
for issuing such misleading advertisement.

26. • Procedure on admission of complaint
a. On admission of complaint, it shall refer a copy of the complaint to
the opposite party mentioned in the complaint, who shall give his
version of the case within period of 30 days.
b. where the opposite party on receipt of a complaint referred to him
denies or disputes the allegations contained in the complaint, or fails
to take action to represent his case within the time:
1. Reference of sample to laboratory where the complaint alleges a
defect in the goods which cannot be determined without proper
analysis or test of the goods.
2. The laboratory shall report its findings to the district forum within
period of 45 days of the receipt.
3. Before any sample is referred to any laboratory for analysis or test,
the DFmay require the complainant to deposit to the credit of forum
fees for payment to laboratory.
4. On the receipt of report, DF shall forward a copy of report along with
remarks to appropriate laboratory to opposite party.
5. The DF shall give a reasonable opportunity to the complainant as well
as opposite party of being heard as to the correctness and also as to
objection made in relation thereto.

27. • Period:
a. Every complaint shall be heard as soon as possible and shall be
decided within 3 months from the date of receipt notice by opposite
party where the complaint does not require analysis or testing of
commodities and within 5 months, if it requires analysis or testing
b. No adjournment shall be ordinarily granted by the District Forum
unless sufficient cause is shown and reasons for grant of
adjournment have been recorded in writing by the Forum.

28. STATE COMMISSION
• Second highest authority
• established by state government in the state by notification
• Composition- It shall consist of:
1. a person who is or has been Judge of High Court appointed by State
Government in consultation with Chief Justice of High Court who
shall be its president.
2. Two members, one of whom shall be woman, who shall have
following qualifications:
 be not less than 35 years of age
 possess a bachelor’s degree from recognised university
 be a person of ability, integrity and standing and have adequate
knowledge and experience of at least 10 years in dealing with
problems relating to commerce, law, economics, accountancy, public
affairs or administration.

29. • Every appointment shall be made by the state government on the
recommendation of selection committee consisting of following
members:
1. President of state commission as its chairman
2. Secretary of law department of the state as a member
3. Secretary incharge of the Department dealing with consumer affairs
in the State as a member.
• Every member of the state Commission shall hold office for a term
of 5 years or upto the age of 67 years, whichever is earlier.
• A member shall be eligible for re-appointment for another term of
five years or up to the age of 67 years, which ever is earlier.
• It shall have jurisdiction to entertain:
1. It shall have to entertain complaints where the value of the goods or
services and compensation claimed exceeds rupees 20 lakhs but does
not exceed rupees one crore.
2. appeals against orders of any district forum within state; and

30. • Transfer of cases:
On the application of the complainant, the state commission may, at any
stage of the proceeding, transfer any complaint pending before the
District Forum to another District Forum within State if the interest of
Justice so requires.

31. NATIONAL COMMISSION
• National Commission is the highest authority.
• Established by Central Government by notification in official gazette.
• The office of NC shall be located in the Union Territory of Delhi.
• Composition: It shall consists of
 a person who is or has been judge of supreme court, to be appointed
by Central Government (in consultation with Chief Justice of India), who
shall be its president;
 not less than four, one of whom shall be woman, shall have following
qualifications:
1. be not less than 35 years of age
2. possess a bachelor’s degree from recognised university
3. be a person of ability, integrity and standing and have adequate
knowledge and experience of at least 10 years in dealing with problems
relating to commerce, law, economics, accountancy, public affairs or
administration.

32. • Every appointment shall be made by central government on the
recommendations of a selection committee consisting of the
following:
1. a person who is or has been a judge of supreme court, to be
nominated by Chief Justice of India as its chairman
2. the secretary in the department of legal affairs in the government of
India as its member.
3. Secretary of the department dealing with consumer affairs in the
government of India as its member.
• Every member shall hold the office for a term of five years or up the
age of 70 years, whichever is earlier.
• a member shall be eligible for re-appointment for another term of
five years or up to the age of 70 years., whichever is earlier
• it shall have jurisdiction to entertain the complaints where value of
goods or services and the compensation, if any, claimed exceeds
rupees one crore.

33. • It shall have jurisdiction to
1. entertain the complaints where value of goods or services and the
compensation, if any, claimed exceeds rupees one crore.
2. to entertain appeals against the orders of any state commission
• Finality of orders
• Dismissal of Frivolous or vexatious complaints

34. Case Studies
CASE I
• Chetanprakash vs. MET Institute of computer Science
CASE III
• Dharamdas Pritiani vs. HDFC Ergo General Insurance Company
Ltd.

35. Chetan Prakash
vs.
MET Institute of computer Science

36. FACTS
• Prakash was in final year of B.Sc 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 responded
• Finally, he sent a legal notice to the institute, and
then complaint in the consumer forum. lodged a
complaint in the consumer forum.

37. 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.