cp act

Monday, April 10, 2023 1

OBJECT OF THE ACT The act is basically passed to protect the interest of

the consumers. In order to protect the interest of the consumers, to

make provision for establishing necessary consumer councils and other authorities.

It intend to seek speed and simple redressal to consumer disputes through quasi-judicial machinery set-up at district, state and central levels.

It awards compensation to consumer on the basis of merit of each case.


CONSUMER [sec2(1)(d)]

CONSUMER IS ANY PERSON WHO Buys any goods for a consideration or heirs/avails of any

services for a consideration is a consumer. Any user of the goods with the approval of the person who

has purchased the goods for consideration is also a consumer. A person hiring or availing of any services for consideration is

no doubt a consumer, but any person who is beneficiary of such services with the consent or approval of the original consumer is also a consumer.


To become a consumer, there must be a consideration when he buys goods. Such consideration must have actually been paid or promised or partly paid and partly promised.

Any person claiming himself/ as a consumer must satisfy two important consideration besides the others which are as follows:

1. The service or services must have been render to him and

2. He must paid or promised to pay the consideration for the same.

The intention of a person purchasing the goods or hiring the services must be consumption not for sale.


PERSON [sec2(1)(m)]

A PERSON INCLUDE1. A firm whether registered or not2. A Hindu undivided family.3. A co-operative society.4. Every other association of person whether register

under the societies Reg. Act 1960 Consumer need not be an individual to get

protection under this act it includes the above person also.


GOODS [sec 2(1)(i)]

Means goods as defined in the sale of GOODS ACT 1930.

The subject matter of the contract of sale must be available property or goods. The transactions which involve buying and selling of immovable property are regulated by the transfer of property Act.


SERVICES [sec 2(1)(o)]• Means service of any description which is made available

potential users. The services related to banking, financing, insurance,transport,processing,supply of electricity, lodging and boarding etc but it does not include rendering of any service free of charge or under a contract of personal services. Means service of any description which is made available potential users. The services related to banking, financing, insurance,transport,processing,supply of electricity, lodging and boarding etc but it does not include rendering of any service free of charge or under a contract of personal services.


It implies that services must be of commercial nature i.e. they must be rendered on payment .

Even the professional services are included.Even the beneficiaries of the services are

included though they are not directly hirer’s provided they use the service with the approval of the concerned consumers.


TRADER [sec2(1)(q)]

MEANSSells goods or distribute any goods for sale.Any manufacture of goods selling the same.Any packer either sells or distribute goods in

package form.


MANUFACTURER [sec 2(1)(f)]

MEANSMakes or manufacturer any goods or part

thereof.Does not make or manufacture any goods but

assembles part thereof made or manufactured by others.

Put or causes to be put his own mark on goods made or manufactured by any other manufacture.


CONSUMER DISPUTE [sec 2(1)(e)]

If there is any dispute between the consumer and manufacturer or trader, as the case may be the consumer gets the right to seek remedy or filing the complaint under the act. The consumer redressal forum is a statutory body under the consumer protection act.


COMPLAINT [sec 2(1)(c)] Complaint means any allegation in writing made by a

complaint that

A consumer seeking redressal of his complaint under this act has to file separate allegation for separate disputes.

complaint

Unfair tradepractice

Restrictive tradepractice

Defective goods


COMPLAINANT [sec 2(1)(b)]

Complainant

A consumer

A voluntary ass.

Central govt. /State govt.

One or more consumer

Legal hirers orrepresentative


Any public cause can be take by an association in the form of public interest litigation.

RESTRICTIVE TRADE PRACTICE sec 2(1)(nnn)

MEANS delay beyond the period agreed to by a

trader in supply of such goods or in providing the service which has led or is likely to lead to rise into price.

Regarding the condition precedent to buying ,hire or availing of other goods or service.


UNFAIR TRADE PRACTICE [sec 2(1)(r)]

MEANS A trade practice which for the purpose of promoting the

sale, use or supply of any goods or for the provisions of any service, adopt any unfair namely.

1. Falsely represent that the goods are of a particular standard quality, quantity, grade, compensation, style or model.

2. Makes the false or misleading representation concerning the need for, or the usefulness of any goods or services.


Gives false warranty or guarantee about the performance, length of life of a product with any proper test.

Publication of any advertisement for the sale or supply at a bargaining price.

Sale or supply of goods which do not comply any of the standard prescribed by the competitive authorities.

Hoarding or destruction the goods or refusing to sell goods with a view to raise the price.

Represents that the seller or the supplier has a sponsorship or approval which such seller does not have.



Materially misleads the public concerning Materially misleads the public concerning the price at which a products has been sold the price at which a products has been sold

Gives false or misleading facts disparaging Gives false or misleading facts disparaging the goods, services or trade of another the goods, services or trade of another person.person.

Publication of any advertisement whether Publication of any advertisement whether in any newspaper or otherwise,for the sale in any newspaper or otherwise,for the sale or supply at a bargaining price.or supply at a bargaining price.

Bargaining price meansBargaining price means

a. A price that is stated in any a. A price that is stated in any advertisement to be a bargain price advertisement to be a bargain price reference to ordinary price.reference to ordinary price.

b. A price which the person hears/sees b. A price which the person hears/sees the advertisement, would reasonably the advertisement, would reasonably understand to be bargain price. understand to be bargain price.

CONSUMER PROTECTION

COUNCILS sec(4 to 8)


CONSTITUTION OF THE CENTRAL COUNCIL [SEC(4)]

• The central government, in order to carry out the provision of sec 4, has to establish central council consisting of 150 members.

• The minister in-charge of department of civil supplier shall be the chairman of central council.

• The minister of state or Dy. Minister in the department of civil supplies who shall be the vice-chairman.


• The minister of state in-charge of consumer affairs in states.

• Eight members of parliament 5 Lok sabha

3 Rajya sabha• The secretary of the National commissioner

for scheduled caste and scheduled tribe. • Representation of the central government

department and autonomous organization -:should not exceed 20


• Representation of the consumer organization or consumer -:not less than 35

• Representation of women -:not less than 10• Representation of farmer, trader-:less than 20• Person capable of representing consumer• The secretary in-charge shall be the member-

secretary of the central council.


• The term of central council is 3 years.• If any member wants to resign, he may do so

by writing to chairman.• In order to suggest the working of the council,

the central government from amongst the members of the council-:standing working group-:not less than 30 members.


PROCEDURE FOR MEETING OF THE CENTRAL COUNCILS[sec(5)]

• Central council meet at least once every year. It shall make clear the time, place and the procedure of its meeting.

• Meeting of the central council be prescribed by the chairman in his absence the vice-chairman.

• Not less than 10 days from the date of issue –meeting shall be called.


• Notice shall specify the day, place and hour of the meeting.

• The preceding of meeting shall be valid not with standing any vacancy in the constitution of council.

• The resolution passed shall be recommendatory.


OBJECTS OF THE CENTRAL COUNCILS

• To promote and protect the interest of the consumer.

Right such as• The right to be protected against the goods

which are hazardous to life and property.• About the quality, quantity, purity, potency,

standard and price of goods.• Access to a variety goods and services.


• Right to seek redressal against unfair practice• The right to consumer protection.


THE STATE CONSUMER PROTECTION COUNCILS

[sec(7 to 8)]


MEMBERS OF THE STATE CONSUMER COUNCILS

• The minister in-charge of consumer affairs in the state government who shall be chairman.

• Such member of other official or non-official member represent such as prescribed by state government.

• Such number of other official or non-official, not exceeding ten as prescribed by central government.


TIME PLACE ETC OF THE MEETING

• The state central protection council shall meet as and when necessary but not less than two meetings in every one year, and it shall meet such time and place as the chairman may think fit.


OBJECT OF THE STATE COUNCIL

• The main object of every state council shall be to promote and protect within the state the rights of the consumer.


THE DISTRICT CONSUMER PROTECTION COUNCILS

District consumer protection council consist of-• The collector of the district, who shall be its

chairman.• Such number of other official and non-official as the

state government prescribes.• Not less than two meeting shall be held in every

year.• It shall meet at such time an place within the district.


OBJECT• To protect the interest of the

consumer within the district.


CONSUMER DISPUTES REDRESSAL AGENCIES

• District forum ---established by the state govt.in each district of the state.

• State Commission --- established by the state govt. in the state

• National Commission --- established by the central govt.



District ForumCOMPOSTION –SEC 10JURISDICTION –SEC 11

MANNER OF MAKING COMPLAINTS-SEC12 PROCEDURE OF COMPLAINTS—SEC13

FINDINGS—SEC14

District forum

President Two other member’s


• President shall has been a district judge.• Members – One shall be women.– Shall not less than 35 years of age.– Bachelor degree.– Have knowledge and experience of 10 years in

economics, law, industry. etc.

• Person shall be disqualified– Insolvent – Insolvent – Unsound mind– Dismissed– After


APPONITMENT OF MEMBERS OF THE DISTRICT FORUM—SEC10(1-A)

• The president of the state commission -:chairman

• Secretary of the law department-:member• Secretary in-charge of the department -:member


HOLDING OF OFFICE BY A MEMBER OF THE DISTRICT FORUM—SEC 10(2)

• Every member shall hold the office for the term of 5 years-: up to age of 65 years.

• A member shall be eligible for re-appointment for another-:5 years.

• The salary of the members of district forum shall be prescribed by the state government.

• The appointment shall be whole-time on the recommendation of the president of the state government.


JURISDICTION OF DISTRICT FORUM [sec11]

Monetary• Claim should not exceed

twenty lakhs.• Is based on the relief

claimed by the complainant .

Territorial• At a place where each or

opposite parties reside or,• They carry on the business

or,• At a place where cause of

action arise.


If 2 or more district forums have jurisdiction on, a complaint can be filled in

MANNER OF MAKING COMPLAINT [sec 12]

• A complaint, in relation to any goods sold or delivered or agreed to be sold or delivered or any service provides or agreed to be provided may be filed with the district forum.

• By the consumer.• Any voluntary ass consumer.• One or more consumer.• The central or state government.


PROCEDURE ON ADMISSION OF COMPLAINT—SEC13

• DISTRICT FORUM-:on admission of a complaint it relates to any goods.

• Refer a copy of the admitted complaint, within 21 days from the date of its admission to the opposite party directing him to give his say within a period of 30 days or extended period not exceeding 15 days.

• The opposite party shall give his say within the stipulated time, if he fails to do so, the district forum shall proceed to settle the dispute.


• If there is a defect in the goods-which cannot be determined without proper analysis, the district forum shall obtain a sample of the goods from the complaint.– Refer the sample to the appropriate laboratory.– It shall report its findings within 45 days of the

receipt of the reference. Before any sample test-:district forum require the

complaint to the credit of the forum such fees as may be specified.


• District forum shall remit the amount deposited to the appropriate laboratory to carry out the analysis.

• District forum shall forward a copy of the report along with remarks to the opposite party.

• If any parties have disputes regarding correctness it shall give in writing to the district forum.

• District forum shall give reasonable opportunity to both the party.


• Every complaint shall be accompanied by the prescribed amount of fee.

• It shall be decided with 21 days from the date on which the complaint was received (admissibility).


POWERS OF DISTRICT FORUM

• To produce or allowed to be examined the books, accounts, documents, commodities.

• To furnish to an officer, such information as may be required.

• To authorize an officer to search any premises may seize the books, papers, documents, etc.


FINDING OF DISTRICT FORUM

• If the district forum is satisfied that the goods, complained suffer from any defects such as– To remove the defect pointed out by laboratory.– To replace the goods with new goods.– To discontinue the unfair trade practice.– To withdraw the hazardous goods from being offered for

sale.– To correct the misleading advertisement.– To provide adequate cost to parties.


JURISDICTION OF STATE COMMISSION [sec 17]

JURISDITION OF STATE JURISDITION OF STATE COMMISSIONCOMMISSION

monetary appellate Supervisoryrevisional


• Complaints where the value of the goods or service exceeds rupees 20 lakhs but does not exceed rupees one crore.

• Appeals against the orders of any district forum with in the state.

• If it appears to the state govt. that the district forum has failed to excuse its jurisdiction illegally it will call for the records and pass appropriate orders.


Tettortorial jurisdicate The opposite party or each of the party

resides. They actually and voluntarily resides or

carries on business. The cause of action arose.


PROVISION RELATING TO TRANSFER OF CASES

Transfer of cases (sec 17-A)-:the state council may at any stage transfer any complaint pending before the district forum to another district to another district forum within the state.

Circuit benches-:the state council ordinarily function in the state capital but may perform its function at such other as the state government notifies.


PROVISION RELATING TO APPEALS TO THE STATE COMMISSION

• It shall make an appeal within a period of 30 days.

• He can make an appeal after the expiry of 30 days if there was an sufficient cause.

• No appeal shall be entertainment unless the appellant deposit 50% of the amount or 25000 which is less.


STATE COMMISSION

Composition of the state commission– A person who is or has been a judge of a high

court, appointed by the state government who shall be its president.

– Not less than 2, members, and one of who shall be a woman, qualification.• Not less than 35 years of age.• Posses a bachelors degree.• Have adequate knowledge of at least 10 years in

economics, law, commerce, industry public.


– 50% of the members shall be having judicial back ground.

– Disqualification.


PROVISION RELATING TO SALARY

• The salary and other terms and conditions of the members of the state commission shall be prescribed by the state government.– It shall hold the office for the term of 5 years up to

the age of 67 years.– Any member may give the registration to the state

government.


SALARIES,HONORARIUM AND OTHER ALLOWANCES OF THE PRESIDENT AND MEMBERS OF THE NATIONAL COUNCIL

• The president shall be entitled to salary, allowance as are available to a sitting judge of the state council shall receive a consolidated honorarium of 10,000 per month per day of sitting.

• The president and the members shall be entitled to traveling and daily allowances on official tour.

• They shall also be entitled to conveyance allowance of 150 Rs. Per day of its sitting or sum of 1500 per month.


TERMS AND CONDITIONS OF THE PRESIDENT AND MEMBERS• Before appointment -:national council have to take

an undertaking that he will not have any such finance or other interest.

• Every member shall hold for the term of 5 years or up to the age of 70 years.

• Resignation shall be given to the central government• Casual vacancy or resignation shall be filled by fresh

appointment.


• When president is unable to discharge the functions owing to absence, illness, he shall discharge the function of the president until the new president is appointed.

• The president or any member cease to hold the office after his


PROVISIONS RELATING TO APPEALS TO THE NATIONAL COMMISSION [sec 19]

• It may prefer an appeal against such order of state council within a period of 30 days.

• No appeal by a person, who is required to pay an amount or unless the appellant has deposited 50% of the amount or Rs. 35,000 which is less.


HEARING OF APPEAL [sec19-A]

• An appeal filed before the state commission or national council shall be heard as expeditiously as possible and family disposed of the appeal within a period of 90 days.


NATIONAL COMMISSION

Composition– A person who is judge of the state council to be

nominated by the chief justice of India -:chairman.

– The secretary in the department of legal affairs in the government of India-:member.

– Secretary of the department dealing with consumer affairs in the government-:member.

– Not less than four member-:and one of whom shall be women.


REMOVAL OF THE PRESIDENT OR OTHER MEMBERS FROM THE OFFICE

• Has become physically or mentally incapable.• Remain absent in 3 consecutive sittings except

for reasons beyond his control etc.


JURISDICTION OF THE NATIONAL COMMISSION

• Monetary jurisdiction:- where the value of goods and services exceeds one crore

• Appellate jurisdiction:-National council has a power to entertain appeals against the order of any state commission.

• Supervisor and revisional jurisdiction:-National council has the jurisdiction to call for the records which are pending or which has failed to exercise a jurisdiction so rested or with material irregularity.


POWERS AND PROCEDURE APPLICABLE TO THE NATIONAL

COUNCIL [sec 22]• To review any orders when there is an error

apparent on the face of records.• Power to set aside export orders.• Transfer of cases.• Circuit benches-:– It shall ordinarily function at new Delhi and it

might perform its function at such other place as central government notifies.


CONTENT OF A COMPLAINT

• It shall be in person or his agent or sent by registration post addressed to the national commission.– The name, description and address of the

complaint and the opposite party.– Time and place it arose.– Documents in support of the allegations contained

in the complaint.– Relief that the complaint.


APPEARANCE OF THE PARTIES BEFORE THE NATIONAL COUNCIL [sec 14(3)]

• Complainant or his agents fails to appear before the national council, the national council may either dismiss the complaint or decide it on merit.


TIME LIMIT FOR DECIDING THE COMPLAINT

• It shall decide the complaint within 3 months from the date of notice received where the complaint does not require any analysis or testing of commodities.


ORDERS BY THE NATIONAL COMMITION

• It shall issue orders to the opposite party and direct it on them.

• Where the orders of the national commission has been affirmed by the state council, be published in the official gazette.


RULES RELATING TO THE PROCEDURE FOR HEARING THE APPEAL BY THE

NATIONAL COUNCIL• Memorandum shall be presented by appellant

or his agent.• Memorandum shall be in legible handwriting

under distinct heads, the ground of appeal shall be narrative.

• It shall be accompanied by a certified copy of the state commission and such other documents.


• If the appeal is after the period of limitation it shall mention its reason.

• The appellant shall submit 6 copies of the memorandum.

• On the date of hearing if the appellant or his agent fails to appear, the national council may either dismiss or shall proceed export.

• The appellant shall not urge or he heard of any ground which are not put in the memorandum.

Commission shall deciding shall not on any rely on other ground other than memorandum.


• The national council can adjourn the appeal, but not more than one adjournment shall be given, it shall decide the appeal within 90 days from the first date of hearing.

• The order is communicated to the parties free of cost.


SITTING OF THE NATIONAL COUNCIL AND SIGNING OF ORDERS

• It shall be conducted by the president or the senior most member and atleast two members together.

• Every order shall be signed by the president or the senior most member and at least two member, if there is difference of opinion the majority will prevail.


PROVISION OF APPEAL TO THE SUPREME COURT

• It shall make an appeal to the supreme court against the order of national council within 30 days from the date of the order.

• Unless the person deposit 50% of the amount or Rs 50,000 which is less.


cp act

Documents

goods sec

manufacture of goods

goods orhiring

goods butassemblespartthereof

goods orservice

services sec

consumer dispute sec

bcomplainanta consumer