Redress through courtsTime consuming, costly affair

Effective redressal
machinery,Inexpensive reliefs

1. Right to be protected against

marketing of goods and services which
are hazardous to life and property
2. Right to be informed about the
quality, quantity, potency, purity,
standard and price of goods to protect
the consumer against unfair trade
practices
3. Right to be assured, wherever
possible, access to variety of goods at
competitive prices,
4. Right to be heard and to be assured
that consumers interests will receive
due consideration at appropriate
forums,

Who is a
CONSUMER
??

"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

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 1[hires or avails of] the
services for consideration paid or
promised, or partly paid and partly
promised, or under any system of
deferred payments, when such services
are availed of with the approval of the
first-mentioned person

2[Explanation : For the purposes of

sub-clause (i), "commercial purpose"
does not include use by a consumer of
goods bought and used by him
exclusively for the purpose of earning
his livelihood, by means of selfemployment;]

Position after the 1993

Amendment Act

1)Abhijeet bought a
Television set from an
electronics shop for using it
at home. TV was defective.
Is he a consumer ?
2)Sumit on a holiday with
his family hired a taxi. Taxi
was in a poor condition and
broke down several times.

Baman bought a pressure

cooker for use by his family. In
the first use itself while his
wife Simi was using it, it
busted and hurt Simi. Is she
consumer ?
Anand runs a laundry shop. He
brought a washing machine
from an electronics shop for
using at his shop. The machine
was defective from time it was

Balu is a distributor of
computer accessories.
He bought 100 pen
drives from
manufacturer for selling
to other computer
vendors. Is Balu a
consumer ?

Abhijeet bought a TV for

using it at home. He paid
30% of the amount. The
remaining 70% to be paid a
week later. Is he a
consumer ?
What if, whole amount is to
be paid after one month ?

At a conference, free
pens are being
distributed by Vijay. The
pens are defective and
start leaking. It spoilt
clothes of several
persons. Do they have
right of action against
Vijay ??

 What is Goods? [Sec. 2(i)]

Goods means goods as defined in the
Sale of Goods Act, 1930. Sec 2(7) of the
said act says, goods means every kind
of
movable
property
other
than
actionable claims and money, and
includes stocks and shares, growing
crops, grass and things attached to or
forming part of the land which are
agreed to be severed before sale or
under a contract of sale

 What is Service? [Sec. 2(o)]

Service
means
service
of
any
description which is made available to
potential users and includes provision
of facilities in connection with banking,
financing,
insurance,
transport,
processing, supply of electrical or other
energy,
board
or
lodging,
entertainment,
amusement
or
the
purveying a news or other information,
but does not include rendering of any
service free of charger or under a
contract of personal service.

Deficiency in service:
Cases
Airlines:
Flight departure before time: In Chief
Commercial officer, Indian Airlines V P
Lalchand, the complainant purchased the
ticket from Indian Airlines. The time of
departure was mentioned as 10.45 am
but the plane left at 9.20am and the
complainant reached airport at 9.45,
missed the flight. The District forum held
opposite party as guilty of deficiency in
service.

Cancellation of Flight
In Satish Bagdoria V Airdoot
International,
the
complainant
purchased
a
ticket
from
respondents, but the flight was
cancelled and complainant was not
informed. The Forum held the
respondent liable to refund price of
ticket and pay compensation of Rs
5000 alonghwith costs of Rs 1000

Food served in airlines:

In Indian Airlines V S N Sinha, food

was served to the passengercomplainant by airlines. While
chewing, his gum was injured
because of a piece of metallic wire
in
the
food.
The
National
Commission awarded compensation
of Rs 2000 for the same.

BANK
Dishonouring of Bank Draft/Cheque:
In N R Nair V Branch Manager, State
Bank of India, a bank draft was
dishonoured because it did not bear
the signature of two oficials of issuing
bank. The Consumer Forum held it to
be a case of deficiency in service.
Similarly, in case of Sankar V Vijaya
Bank it was held that dishonouring
without
justification
amounts
to
deficiency in service.

CONSUMER PROTECTION RESDESSAL

AGENCIES
Consumer Disputes Redressal
Forum- DISTRICT FORUM
Consumer Disputes Redressal
Commission- STATE COMMISSION
National Consumer Disputes
Redressal Commission- NATIONAL
COMMISSION

Pecuniary Jurisdiction
Forum
District Forum

Amount in dispute
Upto Rs 20 lakh

State Commission

Above Rs20 Lakh

and below Rs 1
crore

National
Commission

Above Rs 1 crore

Jurisdiction of District
Forum
Pecuniary Jurisdiction 11(1)
To entertain complaints where value
of
goods
or
services
and
the
compensation, if any, claimed, does
not exceed Rs 20 Lakhs.
Territorial Jurisdiction 11 (2)
The opposite party or each of the
opposite parties, where there are
more than one, at the time of
institution of complaint, actually and
voluntarily resides or carries on
business, or has branch office, or
personally works for gain or the cause

Jurisdiction of State
Commission
Pecuniary Jurisdiction 11(1)
1) To entertain complaints where value of
goods or services and the compensation, if
any, claimed, exceed Rs 20 Lakhs but not
Rs 1 crore.
2) entertain appeals against the orders of
any District Forum within the State,
3) To call for the records and pass
appropriate orders in any consumer
dispute which is pending before or has
been decided by any District Forum within
state when it appears to state commission
that
District
forum
has
exercised
jurisdiction not vested, or has failed to

Jurisdiction of National
Commission sec 21

Pecuniary Jurisdiction 11(1)

1) To entertain complaints where value of

goods or services and the compensation, if
any, claimed, exceeds Rs 1 crore.
2) entertain appeals against the orders of
any State Commission,
3) To call for the records and pass
appropriate orders in any consumer
dispute which is pending before or has
been decided by any State Commission
when it appears to National commission
that state commission has exercised
jurisdiction not vested, or has failed to

Findings of the District

Forum Sec 14
A.To remove defect pointed by appropriate
laboratory from goods in question,
B. Replace goods with new goods of similar
description which shall be free from
defect,
C. Return to complainant price, or charges
paid by complainant,
D.Pay such amount as may be awarded by
it as compensation for any loss or injury
suffered due to negligence of opposite
party.

Appeals from District Forum to

State Commission Sec 15
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 30 days from the date of order, in
such form as may be prescribed.
The State commission may entertain
an appeal after the expiry of the said
period if it is satisfied that there was
sufficient cause for not filing it within
that period.

Appeals from State Commission to

National Commission Sec 19
Any person aggrieved by an order
made by the state commission may
prefer an appeal against such order to
the National commission within a
period of 30 days from the date of
order, in such form as may be
prescribed.
The National commission may
entertain an appeal after the expiry of
the said period if it is satisfied that
there was sufficient cause for not

Appeals from National Commission to

Supreme Court Sec 23

Any person aggrieved by an order

made by the National commission may
prefer an appeal against such order to
Supreme Court within a period of 30
days from the date of order, in such
form as may be prescribed.
Supreme Court may entertain an
appeal after the expiry of the said
period if it is satisfied that there was
sufficient cause for not filing it within
that period.

COMPLAINANT Sec 2(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;
[(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;

24A. LIMITATION PERIOD for filing

a complaint

(1) The District Forum, the State Commission or

the National Commission shall not admit a
complaint unless it is filed within two years
from the date on which the cause of action has
arisen.
(2) Notwithstanding anything contained in subsection (1), a complaint may be entertained
after the period specified in sub-section (1), if
the complainant satisfies the District Forum,
the State Commission or the National
Commission, as the case may be, that he had
sufficient cause for not filing the complaint
within such period:
Provided that no such complaint shall be
entertained unless the National Commission,
the State Commission or the District Forum, as
the case may be, records its reasons for
condoning such delay.

Dismissal of Frivolous or
Vexatious Complaints Sec
26

Where a complaint instituted before

District Forum, the State Commission
or the National Commission is found
frivolous or vexatious, it shall for
reasons recorded in writing, dismiss
the complaint and make order that
complainant be ordered to pay to
opposite
party
such
cost,
not
exceeding Rs 10000, as may be
specified in order.