LexThe Consumer Protection Act, 1986
Odisha · state statute
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THE CONSUMER PROTECTION ACT, 1986
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent, commencement and application.
2. Definitions.
3. Act not in derogation of any other law.
CHAPTER II
CONSUMER PROTECTION COUNCILS
4. The Central Consumer Protection Council.
5. Procedure for meetings of the Central Council.
6. Objects of the Central Council.
7. The State Consumer Protection Councils.
8. Objects of the State Council.
8A. The District Consumer Protection Council.
8B. Objects of the District Council.
CHAPTER III
CONSUMER DISPUTES REDRESSAL AGENCIES
9. Establishment of Consumer Disputes Redressal Agencies.
10. Composition of the District Forum.
11. Jurisdiction of the District Forum.
12. Manner in which complaint shall be made.
13. Procedure on admission of complaint.
14. Finding of the District Forum.
15. Appeal.
16. Composition of the State Commission.
17. Jurisdiction of the State Commission.
17A. Transfer of cases.
17B. Circuit Benches.
18. Procedure applicable to State Commissions.
18A. [Omitted.].
19. Appeals.
19A. Hearing of appeal.
20. Composition of the National Commission.
21. Jurisdiction of the National Commission.
22. Power and procedure applicable to the National Commission.
22A. Power to set aside ex parte orders.
22B. Transfer of cases.
22C. Circuit Benches.
22D. Vacancy in the office of the President.
23. Appeal.
24. Finality of orders.
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SECTIONS
24A. Limitation period.
24B. Administrative control.
25. Enforcement of orders of the District Forum, the State Commission or the National Commission.
26. Dismissal of frivolous or vexatious complaints.
27. Penalties.
27A. Appeal against order passed under section 27.
CHAPTER IV
MISCELLANEOUS
28. Protection of action taken in good faith.
28A. Service of notice, etc.
29. Power to remove difficulties.
29A. Vacancies or defects in appointment not to invalidate orders.
30. Power to make rules.
30A. Power of the National Commission to make regulations.
31. Rules and regulations to be laid before each House of Parliament.
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THE CONSUMER PROTECTION ACT, 1986
ACT NO. 68 OF 1986
[24th December, 1986.]
An Act to provide for the 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:—
CHAPTER I
PRELIMINARY
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 date1 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,—
2[(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 aid ed by the Central Government or a State Government
for carrying out analysis or test of any goods with a view to determining whether such g oods
suffer from any defect;]
3[(aa) “branch office” means—
(i) any establishment described as a branch by the opposite party; or
(ii) any establishment carring 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
(1 of 1956) or under any other law for the time being in force; or
(iii) the Central Government or any State Government, who or which makes a complaint;
1. 15th April, 1987, vide notification No. S.O. 390(E), dated 15th April, 1987 in respect of Chapters I, II and IV, see Gazette of
India, Extraordinary, Part II, sec. 3(ii).
1st July, 1987, vide notification No. S.O. 568(E), dated 10th June, 1987 in respect of Chapter III, see Gazette of India,
Extraordinary, Part II, sec. 3(ii).
2. Subs. by Act 50 of 1993, s. 2, for clause (a) (w.e.f. 18-6-1993).
3. Ins. by s. 2, ibid. (w.e.f. 18-6-1993).
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1[(iv) one or more consumers, where there are numerous consumers having the same interest;]
2[(v) in case of dealth of a consumer, his legal heir or representative;]
(c) “complaint” means any allegation in writing made by a complainant that—
3[(i) an unfair trade practice or a restrictive trade practice h as been adopted by 4[any trader or
service provider];]
(ii) 5[the goods bou ght by him or agreed to be bou ght by him] s uffer from one or more
defects;
(iii) 6[the services hired or availed of or agreed to be hired or availed of by him] suffer from
deficiency in any respect;
7[(iv) a trader or the service provider, as the case may be, has charged for the goods or for the
services 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 are 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;]
with a view to obtaining any relief provided by or under this Act;
(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 incl udes 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) 8[hires or avails of] any services for a conside ration which has been paid or p romised or
partly paid and partl y promised, or under any system of deferred payment and includes any
beneficiary of such services other than the person who 8[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 2[but does not include a person who avails of such services for any commercial purpose].
1. Ins. by Act 50 of 1993, s. 2 (w.e.f. 18-6-1993).
2. Ins. by Act 62 of 2002, s. 2 (w.e.f. 15-3-2003).
3. Subs. by Act 50 of 1993, s. 2, for clause (i) (w.e.f. 18-6-1993).
4. Subs. by Act 62 of 2002, s. 2, for “any trader” (w.e.f. 15-3-2003).
5. Subs. by Act 50 of 1993, s. 2, for “the goods mentioned in the complaint” (w.e.f. 18-6-1993).
6. Subs. by s. 2, ibid., for “the services mentioned in the complaint” (w.e.f 18-6-1993).
7. Subs. by Act 62 of 2002, s. 2, for sub-clauses (iv) and (v) (w.e.f. 15-3-2003).
8. Subs. by 50 of 1993, s. 2, for “hires” (w.e.f. 18-6-1993).
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1[Explanation.—For the purposes of this clause, “commecial 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 or
2[under any contract, express or implied , or] as is claimed by the trader in any manner whats oever 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 Dispute Redressal Forum estalished under clause ( a) of
section 9;
(i) “goods” means goods as defined in the Sale of Goods Act, 1930 (3 of 1930);
3[(j) “manufacturer” means a person who—
(i) makes or manufactures any goods or parts 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 manufa ctured 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 as sembled at such branch office and are sold or distributed from such
branch office;
2[(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 Registration
Act, 1860 (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;
1. Subs. by Act 62 of 2002, s. 2, for the Explanation (w.e.f. 15-3-2003).
2. Ins. by Act 50 of 1993, s. 2 (w.e.f. 18-6-1993).
3. Subs. by Act 62 of 2002, s. 2, for clause (j) (w.e.f. 15-3-2003).
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1[(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 its 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 tra der 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 2[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,
3[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;
4[(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 for m,
includes the packer thereof;
5[(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, grad e,
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 useful ness
of, any goods or services;
(vii) gives to the public any warranty or guara ntee 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:
1. Subs. by Act 62 of 2002, s. 2, for clause (nn) (w.e.f. 15-3-2003).
2. Subs. by s. 2, ibid., for “users and includes the provisions of” (w.e.f. 15-3-2003).
3. Ins. by Act 50 of 1993, s. 2 (w.e.f. 18-6-1993).
4. Ins. by Act 62 of 2002, s. 2 (w.e.f. 15-3-2003).
5. Subs. by Act 50 of 1993, s. 2, for clause (r) (w.e.f. 18-6-1993).
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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 t he 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 rep air 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 mislea ding 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 beh alf 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 displ ayed 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 quanti ties 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 adver tisement, 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 pr oduct or any business
interest;
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1[(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 sam e 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 re duce 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];
1[(6) manufacture of spurious goods or offering such goods for sale or adopting 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) 2[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 3[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 4[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 shal l
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 5[and services] which are hazardous to
to life and property;
(b) the right to be informed about the quality, quantity, potency, purity , standard and price of
goods 5[or services, as the case may be,] so as to protect the consumer against unfair trade practices;
1. Ins. by Act 62 of 2002, s. 2 (w.e.f. 15-3-2003).
2. Subs. by s. 3, ibid., for “The Central Government may” (w.e.f. 15-3-2003).
3. Subs. by Act 50 of 1993, s. 3, for “the Department of Food and Civil Supplies” (w.e.f. 18-6-1993).
4. Subs. by s. 4, ibid., for “not less than three meetings” (w.e.f. 18-6-1993).
5. Ins. by s. 5, ibid. (w.e.f. 18-6-1993).
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(c) the right to be assured, wherever possible, access to a variety of goods 1[and s ervices] at
competitive prices;
(d) the right to be heard and to be assured that consumers’ interests will receive due consideration
at appropriate forums;
(e) the right to seek redressal a gainst unfair trade practices 1[or restrictive trade practices] or
unscrupulous exploitation of consumers; and
(f) the right to consumer education.
7. The Sta te Consumer Protection Councils .—(1) 2[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).
3[(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 Governments;
4[(c) such number of other official or non -official members, not exceeding ten, as may be
nominated by the Central Government.]
(3) The State Council shall meet as and when necessary but not less than two mee tings 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 shall be to promote and protect
within the State the rights of the consumers laid down in clauses (a) to (f) of section 6.
5[8A.The District Consumer Protection Council .—(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 (herein after 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 as 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 pres cribed
by the State Government.
8B. Objects of the District Council .—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.]
1. Ins. by Act 50 of 1993, s. 5 (w.e.f. 18-6-1993).
2. Subs. by Act 62 of 2002, s. 4, for “The State Government may” (w.e.f. 15-3-2003).
3. Subs. by Act 50 of 1993, s. 6, for sub-section (2) (w.e.f. 18-6-1993).
4. Ins. by Act 62 of 2002, s. 4 (w.e.f. 15-3-2003).
5. Ins. by s. 5, ibid. (w.e.f. 15-3-2003).
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CHAPTER III
CONSUMER DISPUTE 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 1*** in each district of the State by notification:
2[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 1*** 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.—3[(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;
4[(b) two other members, one of whom shall be a woman, who shall have the fol lowing
qualifications, namely:—
(i) be not less than thirty-five years of age,
(ii) possesss 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 persons 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;]]
5[(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, namely:—
(i) President of the State Commission —Chairman,
(ii) Secretary, Law Department of the State —Member,
(iii) Secretary incharge of the Department dealing
with cunsumer affairs in the State —Member:]
6[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.]
1. The words “with the prior approval of the Central Government” omitted by Act 50 of 1993, s. 7 (w.e.f. 18-6-1993).
2. Ins. by s. 7, ibid. (w.e.f. 18-6-1993).
3. Subs. by s. 8, ibid., for sub-section (1) (w.e.f. 18-6-1993).
4. Subs. by Act 62 of 2002, s. 6, for clause (b) (w.e.f. 15-3-2003).
5. Ins. by Act 50 of 1993, s. 8 (w.e.f. 18-6-1993).
6. Ins. by Act 62 of 2002, s. 6 (w.e.f. 15-3-2003).
11
1[(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 fulfils 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 (62 of 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:
2[Provided that the appointment of a member on whole -time basis shall be made by the State
Government on the recommendation of the Presid ent 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 3[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 4[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 5[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 6[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.
7[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;
1. Subs. by Act 62 of 2002, s. 6, for sub-section (2) (w.e.f. 15-3-2003).
2. Ins. by s. 6, ibid. (w.e.f. 15-3-2003).
3. Subs. by s. 7, ibid., for “does not exceed rupees five lakhs” (w.e.f. 15-3-2003)
4. Subs. by Act 50 of 1993, s. 9, for “carries on business or” (w.e.f. 18-6-1993).
5. Subs. by s. 9, ibid., for “carries on business” (w.e.f. 18-6-1993).
6. Subs. by s. 9, ibid., for “carry on business” (w.e.f 18-6-1993).
7. Subs. by Act 62 of 2002, s. 8, for section 12 (w.e.f. 15-3-2003).
.
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(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 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 sub -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 purposes of this section, “recognised consumer association ” means any
voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or any other law
for the time being in force.]
13. 1[Procedure on admission of complaint].—(1) The District Forum shall, 2[on admission of a
complaint], if it relates to any goods,—
3[(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 i n 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 forty -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;
1. Subs. by Act 62 of 2002, s. 9, for “Procedure on receipt of complaint.” (w.e.f. 15-3-2003).
2. Subs. by s. 9, ibid., for “on receipt of a complaint” (w.e.f. 15-3-2003).
3. Subs. by s. 9, ibid., for clause (a) (w.e.f. 15-3-2003).
13
(f) if any of the parties disputes the correctnes s 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 objection s
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 ( f) and issue
an appropriate order under section 14.
(2) The District Forum shall, if the 1[complaints 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 compl aint 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 su ch 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) 2[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.
3[(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 sub -sections ( 1) and ( 2) shall be
called in question in any court on the ground that the principles of natural justi ce have not been complied
with.
3[(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 dis posed 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 the Code of Civil Procedure, 190 8 (5 of 1908) wh ile trying a suit in respect of the
following matters, namely:—
1. Subs. by Act 62 of 2002, s. 9, for “complaint received” (w.e.f. 15-3-2003).
2. Subs. by s. 9, ibid., for “on the basis of evidence” (w.e.f. 15-3-2003).
3. Ins. by s. 9, ibid. (w.e.f. 15-3-2003).
14
(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; and
(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 Penal 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).
1[(6) Where the complainant is a cons umer referred to in sub -clause ( iv) of clause ( b) of
sub-section (1) of section 2, the pro visions of rule 8 of Order I of the First Schedule to the Code of Civil
Procedure, 1908 (5 of 1908) sha ll apply subject to the modifi cation 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.]
2[(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 Scheduled to the Code of Civil
Procedure, 1908 (5 of 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 3[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:
4[Provided that the District Forum shall have the power to grant punitive damages in such
circumstances as it deems fit;]
5[(e) to 6[remove the defects in goods] or deficiencies in the services in question;
1. Ins. by Act 50 of 1993, s. 11 (w.e.f. 18-6-1993).
2. Ins. by Act 62 of 2002, s. 9 (w.e.f. 15-3-2003).
3. Subs. by Act 50 of 1993, s. 12, for “take” (w.e.f. 18-6-1993).
4. Ins. by Act 62 of 2002, s. 10 (w.e.f. 15-3-2003).
5. Ins. by Act 50 of 1993, s. 12 (w.e.f. 18-6-1993).
6. Subs. by Act 62 of 2002, s. 10, for “remove the defects” (w.e.f. 15-3-2003).
15
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;
(g) not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;
1[(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 services provided, as the case may be, to such consumers:
Provided furthe r 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[(2) Every proceeding referred Excerpt shown. Open the full act in Lexace.