LexThe Consumer Protection Act, 1986
Gujarat · state statute
Open in Lexace · Ask the AI about this actThe Consumer Protection Act, 1986
After including the amendments made vide the Consumer Protection (Amendment) Act, 2002 [62 of 2002] which
was passed by Rajya Sabha on 11.4.2002, Lok Sabha on 30.7.2002{with some amendments} and again by Rajya
Sabha on 22.11.2002 and the President of India gave assent on 17. 12.2002 and the notification was issue on
18.12.2002.The provisions of the Act are being brought into force w.e.f. 15.3.2003. Amendments are shown in bold
& italic form The Consumer Protection Act, 1986 (68 of 1986)
CHAPTER I - PRELIMINARY
CHAPTER II - CONSUMER PROTECTION COUNCILS
CHAPTER III - CONSUMER DISPUTES REDRESSAL AGENCIES
CHAPTER IV - MISCELLANEOUS
CHAPTER I - PRELIMINARY
(After including the amendments made vide the Consumer Protection (Amendment) Act, 2002 [62 of 2002] which
was passed by Rajya Sabha on 11.4.2002, Lok Sabha on 30.7.2002{with some amendments} and again by Rajya
Sabha on 22.11.2002 and the President of India gave assent on 17. 12.2002 and the notification was issue on
18.12.2002.The provisions of the Act are being brought into force w.e.f. 15.3.2003.
Amendments are shown in bold & italic form
The Consumer Protection Act, 1986
( 68 of 1986)
24th December; 1986
An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the
establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters
connected therewith.
BE it enacted by Parliament in the Thirty-seventh Year of the Republic of India as follows:—
PRELIMINARY
CONSUMER PROTECTION COUNCILS
CONSUMER DISPUTES REDRESSAL AGENCIES
MISCELLANEOUS
1. Short title, extent, commencement and application.—
(1 ) This Act may be called the Consumer Protection Act, 1986.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification, appoint and different dates
may be appointed for different States and for different provisions of this Act.
(4) Save as otherwise expressly provided by the Central Government by notification, this Act shall apply to all
goods and services.
2. Definitions.—
(1 ) In this Act, unless the context otherwise requires,—
(a) 'appropriate laboratory' means a laboratory or organisation—
(i.) recognised by the Central Government;
(ii.) recognised by a State Government, subject to such guidelines as may be prescribed by the Central Government
in this behalf; or
(iii) any such laboratory or organisation established by or under any law for the time being in force, which is
maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of
any goods with a view to determining whether such goods suffer from any defect;
(aa) 'branch office' means—
(i) any establishment described as a branch by the opposite party; or
(ii) any establishment carrying on either the same or substantially the same activity as that carried on by the head
office of the establishment;
(b) 'complainant' means—
(i) a consumer; or
(ii) any voluntary consumer association registered under the Companies Act, 1956 (1of 1956)or under any other law
for the time being in force; or
(iii) the Central Government or any State Government,
(iv) one or more consumers, where there are numerous consumers having the same interest;
(v) in case of death of a consumer, his legal heir or representative;
who or which makes a complaint;
(c) 'complaint' means any allegation in writing made by a complainant that—
(i) an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider ;
(ii) the goods bought by him or agreed to be bought by him; suffer from one or more defects;
(iii)the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect;
(iv) a trader or service provider, as the case may be, has char
ged for the goods or for the service mentioned in the
complaint a price in excess of the price –
(a)fixed by or under any law for the time being in force
(b)displayed on the goods or any package containing such goods ;
(c) displayed on the price list exhibited by him by or under any law for the time being in force;
(d) agreed between the parties;
(v) goods which will be hazardous to life and safety when used or being offered for sale to the public,--
(A) in contravention of any standards relating to safety of such goods as required to be complied with, by or
under any law for the time being in force;
(B) if the trader could have known with due diligence that the goods so offered are unsafe to the public;
(vi) services which are hazardous or likely to be hazardous to life and safety of the public when used, are being
offered by the service provider which such person could have known with due diligence to be injurious to life and
safety;”;
(d) 'consumer' means any person who—
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under
any system of deferred payment and includes any user of such goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when
such use is made with the approval of such person, but does not include a person who obtains such goods for resale
or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly
promised, or under any system of deferred payment and includes any beneficiary of such services other than the
person who 'hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or
under any system of deferred payment, when such services are availed of with the approval of the first mentioned
person but does not include a person who avails of such services for any commercial purposes;
Explanation.—For the purposes of th is clause, “commercial purpose” does not include use by a person of goods
bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means
of self-employment;
(e) 'consumer dispute' means a dispute where the person against whom a complaint has been made, denies or
disputes the allegations contained in the complaint.
(f) 'defect' means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is
required to be maintained by or under any law for the time being in force under any contract, express or implied or
as is claimed by the trader in any manner whatsoever in relation to any goods;
(g) 'deficiency' means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of
performance which is required to be maintained by or under any law for the time being in force or has been
undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service;
(h) 'District Forum' means a Consumer Disputes Redressal Forum established under clause (a) of section 9;
(i.) 'goods' means goods as defined in the Sale of Goods Act, 1930;
(j) “manufacturer” means a person who—
(i) makes or manufactures any goods or part thereof; or
(ii) does not make or manufacture any goods but assembles parts thereof made or manufactured by others; or
(iii) puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer;
Explanation.— Where a manufacturer despatches any goods or part thereof to any branch office maintained by him,
such branch office shall not be deemed to be the manufacturer even though the parts so despatched to it are
assembled at such branch office and are sold or distributed from such branch office;
(jj) 'member' includes the President and a member of the National Commission or a State Commission or a District
Forum, as the case may be;
(k) 'National Commission' means the National Consumer Disputes Redressal Commission established under clause
(c) of section 9;
( l ) 'notification' means a notification published in the Official Gazette;
(m) 'person' includes,—
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons whether registered under the Societies R(21 of 1860) or not;
(n) 'prescribed' means prescribed by rules made by the State Government, or as the case may be, by the Central
Government under this Act;
(nn) “regulation” means the regulations made by the National Commission under this Act;
(nnn) “restrictive trade practice” means a trade practice which tends to bring about manipulation of price or
conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as
to impose on the consumers unjustified costs or restrictions and shall include—
(a) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has
led or is likely to lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services
as condition precedent to buying, hiring or availing of other goods or services;
(o) 'service' means service of any description which is made available to potential users and includes, but not
limited to, the provision of facilities in connection with banking, financing insurance, transport, processing, supply
of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the
purveying of news or other information, but does not include the rendering of any service free of charge or under a
contract of personal service;
(oo) “spurious goods and services” mean such goods and services which are claimed to be genuine but they are
actually not so;
(p) 'State Commission' means a Consumer Disputes Redressal Commission established in a State under clause (b)
of section 9;
(q) 'trader' in relation to any goods means a person who sells or distributes any goods for sale and includes the
manufacturer thereof, and where such goods are sold or distributed in package form, includes the packer thereof;
(r) 'unfair trade practice' means a trade practice which, for the purpose of promoting the sale, use or supply of any
goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of
the following practices, namely;—
(1) the practice of making any statement, whether orally or in writing or by visible representation which,—
(i) falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or
model;
(ii) falsely represents that the services are of a particular standard, quality or grade;
(iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods;
(iv) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories,
uses or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or
supplier does not have;
(vi) makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of
any goods that is not based on an adequate or proper test thereof;
Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper
test, the burden of proof of such defence shall lie on the person raising such defence;
(viii) makes to the public a representation in a form that purports to be—
(i) a warranty or guarantee of a product or of any goods or services; or
(ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or
continue a service until it has achieved a specified result, if such purported warranty or guarantee or promise is
materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried
out;
(ix) materially misleads the public concerning the price at which a product or like products or goods or services,
have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to
refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers
generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or
services have been provided by the person by whom or on whose behalf the representation is made;
(x) gives false or misleading facts disparaging the goods, services or trade of another person.
Explanation.— For the purposes of clause (1), a statement that is—
(a) expressed on an article offered or displayed for sale, or on its wrapper or container; or
(b) expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on
anything on which the article is mounted for display or sale; or
(c) contained in or on anything that is sold, sent, delivered, transmitted or in any other manner whatsoever made
available to a member of the public,
shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be
so expressed, made or contained;
(2) permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a
bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a
period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business
is carried on, the nature and size of business, and the nature of the advertisement.
Explanation .— For the purpose of clause (2), 'bargaining price' means—
(a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or
(b) a price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain
price having regard to the prices at which the product advertised or like products are ordinarily sold;
(3) permits—
(a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating
impression that something is being given or offered free of charge when it is fully or partly covered by the amount
charged in the transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly,
the sale, use or supply of any product or any business interest;
(3A) withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its
closure the information about final results of the scheme.
Explanation.—For the purposes of this sub-clause, the participants of a scheme shall be deemed to have been
informed of the final results of the scheme where such results are within a reasonable time, published,
prominently in the same newspapers in which the scheme was originally advertised;
(4) permits the sale or supply of goods intended to be used, or are of a kind likely to be used, by consumers,
knowing or having reason to believe that the goods do not comply with the standards prescribed by competent
authority relating to performance, composition, contents, design, constructions, finishing or packaging as are
necessary to prevent or reduce the risk of injury to the person using the goods;
(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to
provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost
of those or other similar goods or services.
(6) manufacture of spurious goods or offering such goods for sale or adopts deceptive practices in the provision
of services.
(2) Any reference in this Act to any other Act or provision thereof which is not in force in any area to which this Act
applies shall be construed to have a reference to the corresponding Act or provision thereof in force in such area.
3. Act not in derogation of any other law.—The provisions of this Act shall be in addition to and not in derogation
of the provisions of any other law for the time being in force.
CHAPTER II - CONSUMER PROTECTION COUNCILS
4. The Central Consumer Protection Council.—(1) The Central Government shall, by notification, establish with
effect from such date as it may specify in such notification, a Council to be known as the Central Consumer
Protection Council (hereinafter referred to as the Central Council).
(2) The Central Council shall consist of the following members, namely:—
(a) the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and
(b) such number of other official or non-official members representing such interests as may be prescribed.
5. Procedure for meetings of the Central Council.—(1) The Central Council shall meet as and when necessary,
but at least one meeting of the Council shall be held every year.
(2) The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such
procedure in regard to the transaction of its business as may be prescribed.
6. Objects of the Central Council.—The objects of the Central Council shall be to promote and protect the rights
of the consumers such as,—
(a) the right to be protected against the marketing of goods and services which are hazardous to life and property;
(b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as
the case may be so as to protect the consumer against unfair trade practices;
(c) the right to be assured, wherever possible, access to a variety of goods and services at competitive prices;
(d) the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate
forums;
(e) the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation
of consumers; and
(f) the right to consumer education.
7. The State Consumer Protection Councils.--( l ) The State Government shall, by notification, establish with
effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection
Council for..................... (hereinafter referred to as the State Council).
(2) The State Council shall consist of the following members, namely:—
(a) the Minister incharge of consumer affairs in the State Government who shall be its Chairman;
(b) such number of other official or non-official members representing such interests as may be prescribed by the
State Government.
(c) such number of other official or non-official members, not exceedin
g ten, as may be nominated by the Central
Government.
(3) The State Council shall meet as and when necessary but not less than two meetings shall be held every year.
(4) The State Council shall meet at such time and place as the Chairman may think fit and shall observe such
procedure in regard to the transaction of its business as may be prescribed by the State Government.
8. Objects of the State Council.—The objects of every State Council sha ll be to promote and protect within the
State the rights of the consumers laid down in clauses (a) to (f) of section 6.
8A. (1) The State Government shall establish for every district, by notification, a council to be known as the
District Consumer Protection Council with effect from such date as it may specify in such notification.
(2) The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the
following members, namely:—
(a) the Collector of the district (by whatever name called), who shall be its Chairman; and
(b) such number of other official and non-official members representing such interests as may be prescribed by
the State Government.
(3) The District Council shall meet as and when necessary but not less than two meetings shall be held every
year.
(4) The District Council shall meet at such time and place within the district as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as may be prescribed by the State
Government.
8B. The objects of every District Council shall be to promote and protect within the district the rights of the
consumers laid down in clauses (a) to (f) of section 6.
CHAPTER III - CONSUMER DISPUTES REDRESSAL AGENCIES
CONSUMER DISPUTES REDRESSAL AGENCIES
9. Establishment of Consumer Disputes Redressal Agencies. There shall be established for the purposes of this
Act, the following agencies, namely:—
(a) a Consumer Disputes Redressal Forum to be known as the 'District Forum' established by the State Government
in each district of the State by notification:
Provided that the State Government may, if it deems fit, establish more than one District Forum in a district.
(b) a Consumer Disputes Redressal Commission to be known as the 'State Commission' established by the State
Government in the State by notification; and
(c) a National Consumer Disputes Redressal Commission established by the Central Government by notification.
10. Composition of the District Forum.—(1) Each District Forum shall consist of,—
(a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President;
(b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely:—
(i) be not less than thirty-five years of age,
(ii) possess a bachelor's degree from a recognised university,
(iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten
years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or
administration:
Provided that a person shall be disqualified for appointment as a member if he—
(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the state
Government involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled
by the Government; or
(e) has, in the opinion of the state Government, such financial or other interest as is likely to affect prejudicially
the discharge by him of his functions as a member; or
(f) has such other disqualifications as may be prescribed by the State Government;
(1A) Every appointment under sub-section (I) shall be made by the State Government on the recommendation of a
selection committee consisting of the following, namely:—
(i) the President of the State Commission —Chairman.
(ii) Secretary, Law Department of the State —Member.
(iii) Secretary incharge of the Department dealing with
consumer affairs in the State —Member.
Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as
Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the
High Court for nominating a sitting Judge of that High Court to act as Chairman.
(2) Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five
years, whichever is earlier:
Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of
sixty-five years, whichever is earlier, subject to the condition that he fulfills the qualifications and other
conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is also made on
the basis of the recommendation of the Selection Committee:
Provided further that a member may resign his office in writing under his hand addressed to the State
Government and on such resignation being accepted, his office shall become vacant and may be filled by
appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the
category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the
person who has resigned:
Provided also that a person appointed as the President or as a member, before the commencement of the
Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as President or member, as the
case may be, till the completion of his term.
(3) The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the
members of the District Forum shall be such as may be prescribed by the State Government.
Provided that the appointment of a member on whole-time basis shall be made by the State Government on the
recommendation of the President of the State Commission taking into consideration such factors as may be
prescribed including the work load of the District Forum.
11. Jurisdiction of the District Forum.—(1) Subject to the other provisions of this Act, the District Forum
shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any,
claimed ''does not exceed rupees twenty lakhs.
(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,—
(a) the opposite party or each 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, or
(b) 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 that in
such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on
business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
12. Manner in which complaint shall be made.—(1) A complaint in relation to any goods sold or delivered or
agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum
by –
(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service
provided or agreed to be provided;
(b) any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed
to be sold or delivered or service provided or agreed to be provided is a member of such association or not;
(c) one or more consumers, where there are numerous consumers having the same interest, with the permission
of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or
(d) the Central Government or the State Government, as the case may be, either in its individual capacity or as
a representative of interests of the consumers in general.
(2) Every complaint filed under sub-section (1) shall be accompanied with such amount of fee and payable in
such manner as may be prescribed.
(3) On receipt of a complaint made under sub-section (1), the District Forum may, by order, allow the
complaint to be proceeded with or rejected:
Provided that a complaint shall not be rejected under this section unless an opportunity of being heard has been
given to the complainant:
Provided further that the admissibility of the complaint shall ordinarily be decided within twenty-one days from
the date on which the complaint was received.
(4) Where a complaint is allowed to be proceeded with under sub-section (3), the District Forum may
proceed with the complaint in the manner provided under this Act:
Provided that where a complaint has been admitted by the District Forum, it shall not be transferred to any other
court or tribunal or any authority set up by or under any other law for the time being in force.
Explanation.- For the purpose of this section “recognised consumer association” means any voluntary
consumer association registered under the Companies Act, 1956 or any other law for the time being in force”.
13. Procedure on admission of complaint.—(1) The District Forum shall, on admission of a complaint, if it
relates to any goods,—
(a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite
party mentioned in the complaint directing him to give his version of the case within a period of thirty days or
such extended period not exceeding fifteen days as may be granted by the District Forum;
(b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the
allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given
by the District Forum, the District Forum shall proceed to settle the consumer dispute in the manner specified in
clauses (c) to (g);
(c) where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of
the goods, the District Forum shall obtain a sample of the goods from the complainant, seal it and authenticate it in
the manner prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such
laboratory make an analysis or test, whichever may be necessary, with a view to finding out whether such goods
suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the
District Forum within a period of fifty-five days of the receipt of the reference or within such extended period as
may be granted by the District Forum;
(d) before any sample of the goods is referred to any appropriate laboratory under clause (c), the District Forum
may require the complainant to deposit to the credit of the Forum such fees as may be specified, for payment to the
appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question;
(e) the District Forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to
enable it to carry out the analysis or test mentioned in clause (c) and on receipt of the report from the appropriate
laboratory, the District Forum shall forward a copy of the report along with such remarks as the District Forum may
feel appropriate to the opposite party;
(f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the
correctness of the methods of analysis or test adopted by the appropriate laboratory, the District Forum shall require
the opposite party or the complainant to submit in writing his objections in regard to the report made by the
appropriate laboratory;
(g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party
of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the
objection made in relation thereto under clause (/) and issue an appropriate order under section 14.
(2) the District Forum shall, if the complaint admitted
by it under section 12 relates to goods in respect of
which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services,—
(a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period
of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum;
(b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or
disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within
the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute,—
(i) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party
denies or disputes the allegations contained in the complaint, or
(ii) ex parte on the basis of evidence brought to its notice by the complainant where the opposite party omits or
fails to take any action to represent his case within the time given by the Forum.
(c) where the complainant fails to appear on the date of hearing before the District Forum, the District Forum
may either dismiss the complaint for default or decide it on merits.
(3) No proceedings complying with the procedure laid down in subsections (1 ) and (2) shall be called in question
in any court on the ground that the principles of natural justice have not been complied with.
(3A) Every complaint shall be heard as expeditiously as possible and endeavour shall be made to decide the
complaint within a period of three months from the date of receipt of notice by opposite party where the
complaint does not require analysis or testing of commodities and within five months if it requires analysis or
testing of commodities:
Provided that no adjournment shall be ordinarily granted by the District Forum unless sufficient cause is shown
and the reasons for grant of adjournment have been recorded in writing by the Forum:
Provided further that the District Forum shall make such orders as to the costs occasioned by the adjournment as
may be provided in the regulations made under this Act.
Provided also that in the event of a complaint being disposed of after the period so specified, the District Forum
shall record in writing, the reasons for the same at the time of disposing of the said complaint.
(3B) Where during the pendency of any proceeding before the District Forum, it appears to it necessary, it
may pass such interim order as is just and proper in the facts and circumstances of the case.
(4) For the purposes of this section, the District Forum shall have the same powers as are vested in a civil court
under Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:—
(i) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath;
(ii) the discovery and production of any document or other material object producible as evidence;
(iii) the reception of evidence on affidavits;
(iv) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any
other relevant source;
(v) issuing of any commission for the examination of any witness, an
(vi) any other matter which may be prescribed.
(5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of
sections 193 and 228 of the Indian Code (45 of 1860), and the District Forum shall be deemed to be a civil court for
the purposes of section 195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of section
2, the provisions of rule 8 of Order I of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall
apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a
complaint or the order of the District Forum thereon.
(7) In the event of death of a complainant who is a consumer or of the opposite party against whom the complaint
has been filed, the provisions of Order XXII of the First Schedule to the Code of Civil Procedure, 1908 shall apply
subject to the modification that every reference therein to the plaintiff and the defendant shall be construed as
reference to a complainant or the opposite party, as the case may be.
14. Finding of the District Forum.—(1) If, after the proceeding conducted under section 13, the District Forum is
satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of
the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party
directing him to do one or more of the following things, namely:—
(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 such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by
the consumer due to the negligence of the opposite party.
Provided that the District Forum shall have the power to grant punitive damages in such circumstances as it
deems fit;
(e) to remove the defects in goods or deficiencies in the services in question;
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat it;
(g) not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;
(ha) to cease manufacture of hazardous goods and to desist from offering services which are hazardous in
nature;
(hb) to pay such sum as may be determined by it if it is of the opinion that loss or injury has been suffered by a
large number of consumers who are not identifiable conveniently:
Provided that the minimum amount of sum so payable shall not be less than five per cent. of the value of such
defective goods sold or service provided, as the case may be, to such consumers:
Provided further that the amount so obtained shall be credited in favour of such person and utilized in such
manner as may be prescribed;
(hc) to issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the
opposite party responsible for issuing such misleading advertisement;
(i) to provide for adequate costs to parties.
(2) Every proceeding referred to in sub-section (1) shall be conducted by the President of the District Forum and
at least one member thereof sitting together:
Provided that where a member, for any reason, is unable to conduct a proceeding till it is completed, the
President and the other member shall continue the proceeding from the stage at which it was last heard by the
previous member.
(2A) Every order made by the District Forum under sub-section (1) shall be signed by its President and the member
or members who conducted the proceeding:
Provided that where the proceeding is conducted by the President and one member and they differ on any point or
points, they shall state the point or points on which they differ and refer the same to the other member for hearing on
such point or points and the opinion of the majority shall be the order of the District Forum.
(3) Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the District
Forum, its sittings and other matters shall be such as may be prescribed by the State Government.
15. Appeal.—Any person aggrieved by an order made by the District Forum may prefer an appeal against such
order to the State Commission within a period of thirty days from the date of the order, in such form and manner as
may be prescribed:
Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days if it is
satisfied that there was sufficient cause for not finding it within that period.
Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the
District Forum, shall be entertained by the State Commission unless the appellant has deposited in the prescribed
manner fifty per cent. of that amount or twenty-five thousand rupees, whichever is less:
16. Composition of the State Commission.—(1) Each State Commission shall consist of—
(a) a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its
President:
Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the
High Court;
(b) not less than two, and not more than such number of members, as may be prescribed, and one of whom shall
be a woman, who shall have the following qualifications, namely:—
(i) be not less than thirty-five years of age;
(ii) possess a bachelor's degree from a recognised university; and
(iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten
years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or
administration:
Provided that not more than fifty per cent. of the members shall be from amongst persons having a judicial
background.
Explanation.—For the purposes of this clause, the expression 'persons having judicial background'' shall mean
persons having knowledge and experience for at least a period of ten years as a presiding officer at the district
level court or any tribunal at equivalent level:
Provided further that a person shall be disqualified for appointment as a member if he—
(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the State
Government, involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent
court; or
(d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled
by the Government; or
(e) has, in the opinion of the State Government, such financial or other interest, as is likel
y to affect prejudicially
the discharge by him of his functions as a member; or
(f) has such other disqualifications as may be prescribed by the State Government.
(1A) Every appointment under sub-section (1) shall be made by the State Government on the recommendation of
a Selection Committee consisting of the following members, namely:—
(i) President of the State Commission........... Chairman;
(ii) Secretary of the Law Department of the State Member;
(iii) Secretary incharge of the Department dealing
with Consumer Affairs in the State............... Member:
Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as
Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the
High Court for nominating a sitting Judge of that High Court to act as Chairman.
(1B) (i) The jurisdiction, powers and authority of the State Commission may be exercised by Benches thereof.
(ii) A Bench may be constituted by the President with one or more members as the President may deem fit.
(iii) If the members of a Bench differ in opinion on any point, the points shall be decided according to the
opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or
points on which they differ, and make a reference to the President who shall either hear the point or points
himself or refer the case for hearing on such point or points by one or more or the other members and such point
or points shall be decided according to the opinion of the majority of the members who have heard the case,
including those who first heard it.
(2) The salary or honorarium and other allowances payablExcerpt shown. Open the full act in Lexace.