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Columns - Know your laws


Consumer law in action

K. Krishnamurthi

ACTIONS under consumer law have become more commonplace now. The Consumer Protection Act, 1986 is the law that serves to protect consumers' interests.

A consumer is defined as any person who buys any goods for consideration, paid or promised or partly paid or partly promised or under any system of deferred payment, and includes any user of such goods but doest not include any person who obtains for resale or for commercial purpose. A person who hires (avails of) any services for consideration, paid in full or part or promised by way of deferred payment, and such services are availed of for personal benefit but not for commercial purposes is also a consumer.

The explanation introduced by the latest amendment says that commercial purpose does not include use by a person of goods bought and used by him and services availed of by him exclusively for the purposes of earning his livelihood by means of self-employment.

The definition of the term consumer, as it stands, means a person or any voluntary registered association registered under the Companies Act, 1956 or under any other law in force. The term consumer does not merely mean a single individual but includes one or more consumers where there are numerous consumers having the same interest. Thanks to the amended provision, in case of death of a consumer his/her legal representative or legal heir will also be considered as consumer/s.

Complaint: A complaint means any allegation in writing made by a complainant that:

  • an unfair practice or restricted practice has been adopted by any trader or service provider;

  • the goods bought by him or agreed to be bought by him suffer from one defect or other;

  • the services rendered or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect; and

  • a trader or the service provider, as the case may be, charged for the goods or for the services mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force, displayed on the goods or any package containing such goods, displayed on the price list exhibited by him or under any law for the time being in force and agreed between the parties;

    How to file a complaint? In terms of the Act, the government has established consumer disputes redressal agencies. The consumer/s can file the complaint with requisite fees in the respective fora or commission. It is open to the forum to allow the complainant to proceed with the case or reject the complaint.

    While rejecting, opportunity should be given to the party as to the maintainability of the complaint and the decision regarding admission should be given by the forum within 21 days from the date of receipt of the complaint. Before the amendment, the forum was not vested with discretionary powers as to admissibility of a complaint.

    On admission of a complaint, if it relates to any goods, the forum shall send a copy of the compliant within 21 days from date of admission to the opposite parties calling upon them to file their version (defence) within 30 days. On receipt of the complaint, if the opposite parties appear and deny or dispute the allegation contained in the complaint or omits or fails to take any action to represent their case, the forum will settle the dispute. The same procedure is applicable to defects in services laid out in the complaint

    But when the complainant alleges defect in the goods which cannot be determined without proper analysis or test of the goods, the forum will obtain a sample of the goods from the complainant, seal it after authentication, refer the sample to the appropriate laboratory calling for test analysis with a report as to whether the goods suffer any defect as alleged. The fee for obtaining such a report should be paid by the complainant in advance.

    The forum, on receipt of the report, will send it to the opposite parties. If the report is disputed by any of the parties regarding its correctness or method of testing, they should lodge their objections in writing. On receipt of objections from the complainant or the opposite party and after due enquiry, the district forum will pass an appropriate order.

    Every endeavour should be made by the forum to dispose of the complaint as expeditiously as possible and decision should be made within three months from the date of receipt of notice by the opposite party If the decision is delayed, reason for the delay should be recorded in writing. Though adjournment is abhorred, it may granted on sufficient causes being shown and reasons for adjournments should be recorded in writing. The forum is empowered to order to pay costs for adjournments

    Appeals: Any person aggrieved by the order of the District Forum can file an appeal against its order to the State Commission within 30 days from the date of the order. If the appeal is filed after this period, on sufficient cause being shown, the State Commission can admit the appeal. But while filing the appeal, the appellant shall deposit 50 per cent of the amount ordered or Rs 20,000, which ever is less. The State Commission, being an appellate authority, can transfer any case pending before the District Forum on its own motion or on the application by parties to any other District Forum. As against the orders of the State Commission, the aggrieved party can file an appeal to the National Commission within 30 days from the date of the order of the State Commission.

    The National Commission can excuse the delay in filing appeals on sufficient cause being shown. While filing an appeal to the National Commission, 50 per cent of the ordered amount should be deposited with the National Commission.

    Appeals filed before the State and National Commissions shall be heard as expeditiously as possible and they should be finally dispose of the appeals within 90 days of the admission of the appeals.

    Forum at work

    AFTER due enquiry, as provided in the Consumer Protection Act, the District Consumer Forum, on being satisfied that the goods supplied suffer from any of the alleged defects or the compliant referred to has been proved, can pass orders against the opposite party:

  • to remove the defect, as pointed out by the appropriate laboratory, from the goods in question;

  • to replace the goods with new ones of similar description which shall be free from defect;

  • to return to the complainant the price or, as the case may be, the charges paid by the complainant; and

  • to compensate the consumer for any loss or injury suffered by him owing to the negligence of the opposite party

    It has got power to grant punitive damages in fit cases, such as:

    * to remove the defects in goods or the deficiencies in question;

    * to discontinue the unfair trade practice, restrict the trade practice or not to repeat them;

    * not to offer the hazardous goods for sale, withdraw if offered for sale, cease manufacture of such goods and desist from offering services which are hazardous in nature;

    * to pay the determined amount for injury suffered by large numbers of consumers who are not identifiable conveniently.

    The Act specifies the percentage of amount payable. The amounts thus directed to be paid can be credited in favour of such person and utilised in such manner as prescribed.

    The Forum can also issue corrective advertisement to neutralise the effect of misleading advertisement at the cost of the opposite party for issuing such misleading advertisement.

    (The author is advocate and notary public.)

    Article E-Mail :: Comment :: Syndication

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