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CONSUMER PROTECTION ACT 1986

by :

DR. T.K. JAIN


AFTERSCHOOL centre for social entrepreneurship

sivakamu veterinary hospital road


bikaner 334001 rajasthan, india for PGPSE participants

PGPSE : FREE FOR ALL, OPEN FOR ALL


mobile : 91+9414430763
5 DECEMBER 09 AFTERSCHOOOL centre for social entrepreneurship 1

WHY THIS ACT?

To protect the consumer a number of NGOs like CERC had made an effort fot this from consumer beware to consumer is the king theory
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Who is a consumer?
Buys any goods for consideration doesnt buy for resale hires or avails of services these should not be for resale consideration may be past / present / future / part payment not for commercial use
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Case : Bhupendra Jung Bahadur Guna 1995

A farmer purchased a tractor and gave it to others during idle time it was held that it was not a commercial use.

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AFTERSCHOOOL centre for social entrepreneurship

Spring Meadows Hosp.v/s Harjot Ahulwalia


Minor Harjot was wrongly diagnosed by the hospital. The National commission gave separate award of benefit to both Minor and his parents ( thus family members are also consumers)
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Case :; Laxmiben Laxmichand vs. Sakerben Kanji 2001

Landlord tenant is not a consumer related matter and rent paid by tenant is not for cleaning / maintaining the building

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AFTERSCHOOOL centre for social entrepreneurship

Morgan Stanley v/s Kartik Das 1994

Application for shares cannot be considered as goods under this act.

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AFTERSCHOOOL centre for social entrepreneurship

Meaning of service sec 2(1)(o)

Service of any description and includes banking, finanical services, insurance, transportation, processing, electrical and other services

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AFTERSCHOOOL centre for social entrepreneurship

Case : Indian Merchants association v.s VP Santha

Contract of service means a contract to provide services and involves obligation similar to master and servant.

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AFTERSCHOOOL centre for social entrepreneurship

Consumer dispute : 2(1)(e)

When a person denies any complaints made by a consumer

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Restrictive trade practice sec 2(1)nn


1. unusual delay by trader to increase the prices 2. trade practice which force consumer to buy some other product / service before buying a particular product Restrictive trade practice impose higher costs on consumer
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Deficiency 2() g

Any fault, mistake or shortcoming in quality / delivery of product / service

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Case : Alex J Rebello vs Bangalore univ. 2003

The student appeared in exam and it was delayed the court held that examination are not conducted for consideration and therefore they dont make a student a consumer

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AFTERSCHOOOL centre for social entrepreneurship

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Case : state of Haryana v/s Santra 2000

Negligence by medical officer in family planning operation was considered to be a punishable offence under this act.

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PNB V/S K.B.SHETTY 1991

Certificate of a person was lost in locker of the bank it was held that bank was responsible under this act.

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Important bodies :
National Consumer protection council central consumer protection council state consumer protection council district consumer protection council district forum state commission national commission
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District forum

Upto Rs. 20 lakhs

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State commission

20 lakhs to 1 crores + appeals against district forum

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Remedies sec. 14

Replacement of goods financial remedies

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Penalty sec. 27

From Rs. 2000 onwards

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National commission

Beyond 1 crores + appeals against state commission

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