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INTRODUCTION

Consumer protection act was enacted in 37th year of Republic of India.

The CPA was passed by the Lok Sabha on 5th December 1986 and Rajya Sabha on 10th
December, 1986 and assented by the president of India on 24th December 1986 and published
in gazette of India on 26th December 1986. It came on the Statutes Book as THE
CONSUMER PROTECTION ACT, 1986 (68 of 1986).

LIST OF AMENDING ACTS

1. The Consumer Protection (Amendment) Act, 1991 (34 of 1991)

2. The Consumer Protection (Amendment) Act, 1993 (50 of 1993)
3. The Consumer Protection (Amendment) Act, 2002 (62 of 2002)
4. The Consumer Protection (Amendment) Act, 2019 (35 of 2019)

According to the preamble, the Consumer Protection Act, 1986 to provide for 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.
Consumer rights are an integral part of our lives like the consumerist way of life. We have all
made use of them at some point in our daily lives. Market resources and influences are
growing by the day and so is the awareness of one’s consumer rights. These rights are well
defined and there are agencies like the Government, consumer courts and voluntary
organizations that work towards safeguarding. While we like to know about our rights and
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make full use of them, consumer responsibility is an area which is still not demarcated and it
is hard to spell out that all the responsibility is that a consumer is supposed to shoulder.
Consumer Protection Act, 1986 is an important Act in the history of the consumer movement
in the country. The Act was made to provide for the better protection and promotion of
consumer rights through the establishment of consumer councils and quasi-judicial
machinery. It is mile stone in the history of socio-economic legislation and directed towards
public welfare and public benefits.Under the Act, consumer disputes redressal agencies have
been set up through out the country with the District Forum at the District level, State
Commission at the State level and National Commission at national level to provide simple,
inexpensive and speedy justice to the consumer with complaints against defective goods,
deficient services and unfair and restrictive trade practices The Law relating to consumer
protection in India is at recent origin and is developing slowly, day by day, with the
pronouncement of orders passed by the commissions constituted under the Act all over India
and the National Commission . However the presence of some protective Laws for the
benefits of consumer in the ancient culture cannot be denied.
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HISTORICAL PERSPECTIVES

In the early years when welfare legislatures like the consumer

protection Act did not exist, the maxim Caveat emptor (let the buyer beware) governed the
market deals. We find the seeds of consumer protection during the Mughal times and
especially during the time of Khiljis. It is said that Sultan Ala-ud-Din Khilji (1296 A.D. to
1316 A.D.) had introduced strict price control measures based on production costs. He had
also established separate shopping centers in Delhi for (1) grain, (2) cloth, sugar, dried fruits,
herbs, butter, and oil, (3) horses, slaves, and cattle, and (4) miscellaneous commodities. The
supply of grain was ensured by collecting tax in kind in the production areas and keeping it in
the royal storehouses. Hoardings of grain were forbidden. Elsewhere the growers were
ordered to sell their grains for cash in their fields at fixed prices and were not allowed to take
any grain home for private sale. The market controller, the state intelligence officer, and the
Sultan’s secret agents, each submitted independent reports on these shopping centers to the
Sultan. Even a minor violation of the rules was not tolerated.

The shopping center for cloth, known as the sara-i-adl, was established
near one of the royal palaces on the inner side of the Bada-un-Gate. All goods, including
foreign imports, were first taken there and their price fixed. Every merchant was registered
with the commerce ministry and had to sign a bond guaranteeing a regular supply to the
goods in which they traded. The Hindu Multani merchants were advanced money by the
treasury to import rare commodities for the sara-i-adl, some price were subsidized. Costly
fabrics and luxury goods could be sold only to those who have obtained permits from the
Government. The prices of cattle were also fixed and unscrupulous merchants were deprived
of their trading rights.

The shopping center for general commodities was under the direct control
of the commerce ministry. Ala-ud-Din’s Minister of commerce was also the Superintendent
of weights and Measure and the Controller of the Commercial transactions. He was assisted
by Superintendent for each commodity. Prices and weight and measure were chequed by
sending the children employed in the royal pigeon-house to buy petty articles.The prices
fixed for the Delhi market were also applied in the provincial capitals and towns.

During the British regime (1765-1947), also known as the ‘Colonial Era’,
Government’s economic polices in India were concerned more with protecting and promoting
the British interests than with advancing the welfare of the native population. The
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administration’s primary per-occupation was with maintaining law and order, tax collection
and defence. Accordingly much of the legalisation enacted during the British regime was
primarily aimed at serving the colonial rulers intend of the natives. There were, however,
some pieces of legislation which protected the overall public interest through not necessarily
the consumer interest.Prominent among these were: the Indian Penal code, 1860, the sale of
Goods act, 1930, the dangerous drugs act, 1930 and the drugs and cosmetics act, 1940. In a
sense, the sale of good act, and the principles of the law of torts were more for the protection
of the trader than the consumer.
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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 date 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.

DEFINITION

S.2(1)d of the act defined consumer as “Consumer” means any person who-

(i) Buys any goods for a consideration which has been paid or promised or partly paid
and party 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
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partly paid or partly promised, or under any system of deferred payment when person, but
does not include with the approval of self person, but does not include a person who obtains
such goods for resale or for any commercial purpose or

(ii) {Hires for avails of} any services for a consideration which has been paid promised
or partly paid or partly promised or under any system of differed payment and includes any
beneficiary of such services other than the person. [hires or avails of ] the services for
consideration paid or promised or partly paid or partly promised, under any system of
differed payment, when such services are availed or with the approval the first mentioned
person.

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.

Who is a Consumer?
• A person who has indicated his or her willingness to obtain goods and or services from a
supplier with the intention of paying for them.
• Someone who has purchased goods and or services for personal consumptions.

Who is not a consumer?

An individual who:
• Has obtained goods or services for commercial purpose without consideration under a
contract of personal service.
-Example: contractors
• Tax payers to municipality.
• Applicants for jobs.
Consumer Awareness
• It’s a marketing terms.
• Consumer awareness is making the someone aware of his/her right.
• Caveat emptor.
• Usually commercials and ads increase consumer awareness, as well as "word of mouth“
• Consumer awareness programs can be initiated through the utilization of flyers, brochures,
television, radio, guides, fact sheets, information posted to a Web site, school programs, and
other sources depending upon the topic and the message delivered.
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OBJECTIVES

(a) To assist countries in achieving or maintaining adequate protection for their population as
consumers;

(b) To facilitate production and distribution patterns responsive to the needs and desires of
consumers;

(c) To encourage high levels of ethical conduct for those engaged in the production and
distribution of goods and services to consumers;

(d) To assist countries in curbing abusive business practices by all enterprises at the national
and international levels which adversely affect consumers;

(e) To facilitate the development of independent consumer groups;

(f) To further international cooperation in the field of consumer protection;

(g) To encourage the development of market conditions which provide consumers with
greater choice at lower prices.
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FEATURES

1)The Act aims to provide better and all-round protection to consumers.

2) In terms of geographical application, it applies to the whole of India except the State of
Jammu and Kashmir.

3) It applies to all goods and services unless otherwise expressly notified by the Central
Government.

4) It is indeed a very unique and highly progressive piece of social welfare legislation and is
acclaimed as the magna carta of Indian consumers. The Act has made the consumer
movement really going and more powerful, broad-based and effective and people oriented. In
fact, the Act and its Amendment in 1993 have brought fresh hopes to the beleaguered Indian
consumer. This is the only law which directly pertains to market place and seeks to redress
complaints arising from it. Even prior to 1986, there were in force a number of laws which
could be interpreted in favour of the consumers. But, this Act is most powerful piece of
legislation the consumer has had before 1986. Its provisions are very comprehensive and
highly efficacious.
In fact, it provides more effective protection to consumers than any corresponding
legislation in force even in countries which are considered to be much more advanced.

5) It provides effective safeguards to the consumers against different types of exploitation

such as defective goods, unsatisfactory (or deficient) services and unfair trade practices.

6) Remedies under this act is same as those in other laws. A suit pending in civil court cannot
be heard in consumer court
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CONSUMER RIGHTS:

Consumers in the advanced countries, obviously, are much more conscious of their rights
than in countries like India.

1. Right against exploitation by unfair trade practices.

2. Right to protection of health and safety from the goods and services the consumers buy or
are offered free.

3. Right to be informed of the quality and performance standards, ingredients of the product,
operational requirements, freshness or the product, possible adverse side effects and other
relevant facts concerning the product or service.

4. Right to be heard if there is any grievance or suggestions.

5. Right to get genuine grievances redressed.

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6. Right to choose the best from a variety of offers.

7. Right to physical environment that will protect and enhance the quality of life.

CONSUMERS NEED PROTECTION AGAINST

Price fixing or output restraint i.e delivery/flow of supplies to impose unjustified costs
restrictions on consumers. Collusive tendering market fixing territorially among competing
suppliers, depriving consumers of free choice fair competition. Supplying only to particular
distributors or on condition of sale only within a territory

REASONS OF WHICH CONSUMER NEEDS PROTECTION:

1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do
not understand their rights. A system is required to protect them from unscrupulous
businessmen.
2. Unorganized Consumers: In India consumers are widely dispersed and are not united.
They are at the mercy of businessmen. On the other hand, producers and traders are
organized and powerful.
3 . . Spurious Goods: There is increasing supply of duplicate products. It is very difficult for
an ordinary consumer to distinguish between a genuine product and its imitation. It is
necessary to protect consumers from such exploitation by ensuring compliance with
prescribed norms of quality and safety.
4. Deceptive Advertising: Some businessmen give misleading information about quality,
safety and utility of products. Consumers are misled by false advertisement and do not know
the real quality of advertised goods. A mechanism is needed to prevent misleading
advertisements.
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Unfair trade practices

[sec. 2(1) (r)]

It means trade practices which a trader, 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.

The practices included are:

(1)The practice of making any statement, whether orally or in writing or by visible
representation which-
Falsely represents that the goods are of particular standard, quality, quantity, grade,
composition, style or model;
Falsely represents that the services are of particular standard, quality or grade;
Falsely represents any rebuilt, second hand, renovated, or old goods as new goods;
Represents that the goods or services have sponsorship, approval, performance, characteristic,
accessories, uses or benefits which such goods or services do not have;
Represents that the seller or the supplier has sponsorship or approval or affiliation which such
seller or supplier does not have;
Make a false or misleading representation concerning the needs for, or the usefulness of, any
goods or services;
Gives to the public any warranty or guarantee of the performance or length of life of a
product or of any goods that is not based on an adequate or proper test thereof.
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Materially misleading the public concerning the price at which a product or like products or
goods or services, have been or are ordinarily sold or provided.

(2) False offer of bargain price [section 2(1)(r)(2)]

A price that is stated in any advertisement to be a bargain price by reference to ordinary price
or otherwise
A price that a person who reads, hears or sees the advertisement would reasonably
understand to be a bargain price having regard to the prices at which like products are sold.
(3) Schemes offering gifts or prizes [section 2(1)(r)(3)]
Offering gifts or prizes or other items with the intention of not providing them and
conducting
promotional contests.
Creating an impression that something is being given free of charge when it is fully or partly
covered by the amount charged in the transaction.
Conducting of any contest, lottery or game of chances etc for the purpose of promoting-
directly
or indirectly- the sale, use or supply of any product or any business interest.
Society for Civil Rights vs Colgate Palmolive
Eg: A scheme sponsored by Colgate Palmolive (India) Ltd induced the contestants to buy a
minimum of 2 trigard toothbrushes to be able to participate in the contest. The early bird
prizes to be awarded for entries received early had nothing to do with any skill. It was held
not to be in public interest.
(4) Withholding any schemes [sec 2(1)(r)(3A)]
Withholding from the participants of any scheme offering gifts,prizes or other items free of
charge, on its closure the information about final result of scheme. 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 same newspapers in which
the scheme was originally published.
(5) Non compliance of prescribed standards [sec 2(1)(r)(4)]
The prescribed standard may relate to performance, composition, contents,design,
packaging etc as are necessary to prevent or reduce the risk of injury to the person using the
goods.
(6) Hoarding, destruction or refusal [sec 2(1)(r)(5)]
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Hoarding, destruction or refusal to sell the goods which raises or tends to raise the cost of
those or other similar goods or services shall amount to an unfair trade practice.

(7) Manufacturing or sale of spurious goods [section 2(1)(r)(6):

Spurious goods and services means such goods and services which are claimed to be genuine
but are not so.

DEFECIENCY IN SERVICE
Section 2(1) (g) of the Act provides that,
“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.
“Deficiency” means any fault, imperfection, shortcoming or inadequacy in the quality, nature
and manner of performance. Such quality and manner of performance of service should have
been required to be maintained by or under any law for the time being in force or undertaken
to be performed by a person in pursuance of a contract or otherwise.
The deficiency must be in relation to a service.
Meaning Of Service [u/s 2(1)(o)]
‘Service of any description which is made available its potential users and includes but not
limited to the provisions of facilities in connection with banking, financing, insurance,……..
But does not include the rendering of any service free of charge or under a contract of
personal service’.
Examples

(A) Bank of Maharashtra v/s Mrs Jyothi Satya

When the locker facility is provided by the bank, the relationship b/w the bank and hirer of a
locker is not that of a landlord and tenant. In event of loss of contents of lockers as a result of
robbery, the bank will be liable for deficiency of service.
(B) Failure of the housing board to give possession of the flat after receiving the price and
registering it in favour of the allotte.
(C) Non-delivery of consignment by the courier.
(D) Failure of railways to provide cushioned seats in the first class compartment as per
specifications laid down by the board.
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Who Can File A Complaint

A complainant in relation to any goods or services may be filled by-

A consumer or

Any voluntary consumer association registered under the Companies Act, 1956 (1of 1956) or
under any other law for the time being in force or

The Central Government or any State Government; or

One or more consumers, where there are numerous consumers having the same interest or

In case of death of a consumer, his legal heir or representative.A power of attorney holder
cannot file a complaint under the Act.

What Constitutes a Complaint

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

An unfair trade practice or a restrictive trade 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 or more defects

The services hired or availed of or agreed to be hired or availed of by him suffer from
deficiency in any respect

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

Goods which will be hazardous to life and safety when used or being offered for sale to the
public Services which are hazardous or likely to be hazardous to life and safety of the public
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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.

Complaint should contain following information

(a) The name, description and address of the complainant;

(b) The name, description and address of the opposite party or parties;
(c) The facts relating the complaint and when and where it arose;
(d) Documents ‘if any’ in support of allegations and
(e) The relief which the complainant is seeking.
The complaint should be signed by the Complainant or his/ her authorised agent.

PROCEDURE TO FILE A COMPLAINT:

Procedures for filing complaints and seeking redressal are simple. There is nominal court
fee for filing a complaint before the District Forum, the State Commission or the National
Commission. A stamp paper is also not required. There should be 3 to 5 copies of the
complaint on plain paper. The complainant or his authorized agent can present the complaint.
No lawyer required for filing the complaint. The complaint can be sent by post to the
appropriate Forum / Commission.

Time frame within which a complaint can be filed

Section 24A of the Act provides that a consumer dispute can be filed within two years
from the date on which the cause of action arises.
The point of time when cause of action arises is an important factor in determining the time
period available to file a complaint. There are no set rules to decide such time. It depends on
the facts and circumstances of each case. Appeals are require to be filed within 30
days from the date of receipt of the court's order.
It may be noted that these time frames are not absolute limitations. If the Consumer Forum is
satisfied that there was sufficient cause for not filing the complaint within the prescribed
period, it can entertain a complaint beyond limitation time. However the Forum must record
the reasons for condensation of delay.

Where to File a Complaint (depends upon the cost of the goods or services or the
compensation asked)

District Forum: if it is less than Rs. 20 lakhs

State Commission: if more than Rs. 20 lakhs but less then Rs. 1 crore
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National Commission: if more than Rs. 1 crore

CONSUMERS DISPUTE REDRESSAL AGENCIES:

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 in each district of the State by notification:
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 in the State by notification; and
(c) a National Consumer Disputes Redressal Commission established by the Central
Government by notification.

1) DISTRICT FORUM:
The State Government shall establish for every district such council are to be known as
District Consumer Protection Council.
Composition of District Forum: A person who is, or who has been or who is qualified to be
a District Judge, who shall be its President
There will be 2 other one of whom shall be a woman member who shall be persons of ability,
integrity and standing and have adequate knowledge or experience or have shown capacity in
dealing with problems relating to economics, law, commerce, public affairs etc.
Jurisdiction of District Forum: 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 does not exceed rupees twenty lacs.
Appeal: 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 the
order and by depositing Rs 25000 or 50% of the penalty amount whichever is less.

2) STATE COMMISSION:
A State Commission has jurisdiction in whole of the State for Which it is constituted The
orders of District Forum of that particular State. It is situated in the capital of the
State.
Composition of State Forum:State Commission consists of a president and two members
one of whom is to be a
Woman. President is a person who is or has been a Judge of a High Court, and the
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Members, are persons of ability, integrity and standing and have adequate knowledge
or experience of, or have shown capacity in dealing with, problems relating to
Economics, law, commerce, accountancy, industry, public affairs or administration.
Jurisdiction of State Forum:It can hear the cases involving the amount more than rupees
Twenty lacs and up to rupees one crore. It has also jurisdiction to hear appeal against
Appeal: In case the aggrieved party is not satisfied with the order of the State Commission he
can appeal to the National Commission within 30 days of passing of the order and by
depositing Rs 35000 or 50% of penalty amount whichever is less.

3) National Commission –
National Commission is on the top hierarchy of Consumer Courts. It is only one for whole
India and situated in Delhi the capital of India.
Composition of National Commission :The National Commission consists of a president,
and four other members (one of whom is to be a woman).
· The president should be the one who is or has been a Judge of the Supreme Court, and the
members should be the persons of ability ,integrity and standing and have adequate
knowledge or experience of, or have shown capacity in dealing with, problems relating to
economics, law, commerce , accountancy, industry, public affairs or administration.
Jurisdiction of State Forum: It can hear cases involving amount above rupees one crore. It
can also hear appeals against the order of State Commission.
Appeal :An appeal can be filed against the order of the National Commission to the Supreme
Court within 30 days from the date of order passed and by depositing 50% of penalty amount
but only cases where value of goods or services exceeds Rs 1 crore can file appeal in
Supreme Court.
· It may be noted that in order to attain the objects of the Consumers Protection Act, the
National Commission has also been conferred with the powers of administrative control over
all the State Commissions by calling for periodical returns regarding the institution, disposal
and pending of cases and issuing instructions for adoption of uniform procedures, etc
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Consumer Online Research and Empowerment (CORE) Centre

A CORE Centre has been set up in collaboration with Consumer Coordination Council
(CCC) through signing of an Mou. It is intended to provide the most scientific and effective
system of collection and dissemination of consumer related information to generate consumer
awareness and empowerment of all sections of the society. It is the only authorized agency of
the Department of Consumer Affairs to handle 'Online Consumer Complaints' for redressal
through mediation. By accessing the online Complaint Redressal System in the CORE, the
consumers can register themselves and lodge their grievance online.
If the grievance/complaint is still not redressed, complainant is advised that it is up to him to decide,
whether he/she would like to take the matter to the Consumer Court. For this, necessary support by
way of indication of the procedure and the contact address of the nearest member organisation of
CCC, who can provide assistance in this regard, is also provided to the complainant.

National Consumer helpline (NCH)

A National Consumer Helpline project was launched by the Department of Consumer Affairs
in coordination with Delhi University, Department of Commerce , at an approved cost of Rs.
3.12 crores. Under the helpline, consumers from all over the country can dial National
Consumer Helpline Toll free Number: 1800-11-4000 (BSNL/MTNL)

National Consumer Helpline Number: 011-270065000

National Consumer Helpline SMS: <Name><city>to 8800939717
and seek telephonic for problems that they face as consumers. The helpline intends to deal
with problems related to telecom, courier, banking, insurance, financial services, etc.

“JagoGrahakJago” Scheme of Govt. of India:

Jago Grahak Jago program was originated in 2005. Jago Grahak Jago is a consumer
awareness programme As part of this initiative, the gov.thas used multiple channels to create
consumer awareness through Print media advertisements, Audio Campaigns, Video
Campaigns,etc., are being used for consumer information and education about initiatives like
Insurance Ombudsman channel Right to Consumer Education. Means the right to acquire the
knowledge and skill to be an informed consumer throughout life. Ignorance of consumers,
particularly of rural consumers, is mainly responsible for their exploitation. They should
know their rights and must exercise them.
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CASE LAW

SC: Insurance Company cannot Reject Claims on Technical Grounds

Case name: Om Prakash v. Reliance General Insurance (Supreme Court)

In the case, the Appellant insured his truck with the Respondent. The Appellant’s vehicle was
stolen and consequently, an FIR was also lodged. The theft of the vehicle had taken place on
23.03.2010, the FIR was lodged on 24.03.2010 and the claim petition with the Respondent
company was filed on 31.03.2010. On lodging the insurance claim, the Investigator appointed
by the Respondent confirmed the factum of theft and consequently, the Corporate Claims
Manager approved an amount of Rs.7,85,000/- for the said claim of the appellant.

Thereafter, the Appellant made several requests to the respondent, seeking speedy processing
and disposal of his insurance claim. However, on non-payment the Appellant served a legal
notice to the Respondent but the Respondent repudiated the Appellant’s insurance claim
citing breach of condition of terms of Insurance by the Appellant. The impugned term being-
i.e. immediate information to the Insurer about the loss/theft of the vehicle.

Aggrieved by the aforesaid, the Appellant filed complaint before the, District Consumer
Disputes Redressal Forum (‘District Forum’), seeking a direction to the respondent-company
for payment of claim amount with an interest @ 18% per annum, along with compensation of
Rs.1,00,000/-. However, the District Forum dismissed the complaint of the appellant. The
Appellant met with a similar fate in State Commission as well as National Commission,
wherein his appeals were dismissed.

In the instant case, the Appellant approached the Supreme Court against National
Commission’s order and challenged the legality and correctness of the said order.

Bench’s Verdict

The Supreme Court allowed the Appellant’s appeal and made the following observations:

That truck-driver, had filed an affidavit before the District Forum stating that the owner of the
truck had reached the place of occurrence of theft and on lodging complaint the Police had
asked him and the Appellant to stay with them in order to help them for tracing out the truck.
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Thus, the Appellant was busy with the Rajasthan Police in searching the vehicle and returned
to his village on 30.03.2010.

The Court in the aforesaid context noted that it is common knowledge that a person who lost
his vehicle may not straightaway go to the Insurance Company to claim compensation. At
first, he will make efforts to trace the vehicle. It is true that the owner has to intimate the
insurer immediately after the theft of the vehicle. However, this condition should not bar
settlement of genuine claims particularly when the delay in intimation or submission of
documents is due to unavoidable circumstances.

The Court also observed that an Insurance company shall reject claim on valid grounds.
Rejection of the claims on purely technical grounds in a mechanical manner will result in loss
of confidence of policy-holders in the insurance industry. If the reason for delay in making a
claim is satisfactorily explained, such a claim cannot be rejected on the ground of delay. It is
also necessary to state here that it would not be fair and reasonable to reject genuine claims
which had already been verified and found to be correct by the Investigator.

The Court also noted that the Consumer Protection Act, 1986 is a beneficial legislation that
deserves liberal construction. This laudable object should not be forgotten while considering
the claims made under the Act.

In view of the aforesaid, the Supreme Court held that the National Commission was not
justified in rejecting the claim of the appellant without considering the explanation for the
delay. The Court also held that the claimant was entitled for a sum of Rs.50,000/- towards
compensation.

The Court directed the Respondent company to pay a sum of Rs. 8,35,000/- to the Appellant
along with interest @ 8% per annum from the date of filing of the the claim petition till the
date of payment.

The Apex Court in the case has made a very essential observation that the Consumer
Protection Act, 1986 is a beneficial legislation, hence the same shall be interpreted liberally
and in the interest of public at large.

Here it would be relevant to mention that rejection of claims by Insurance companies merely
on technical grounds has time and again been condemned by the Judiciary and Insurance
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Regulator, Insurance Regulatory and Development Authority (IRDA) which had issued a
Circular in 2011 and emphasized that insurance claims in which intimation or submission of
documents has been delayed due to unavoidable circumstances shall not be rejected.
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CONCLUSION:-

I can conclude that very few consumers Are fully aware about the rights,
responsibilities and Consumer Protection Act. Hence, it is necessary to educate them on their
rights and responsibilities as consumers, to make them vigilant, rational and aware buyers.
The government has been fruitful in providing protection to the consumers in the real sense
of the term and served the purpose of the Act. It is hoped that further improvement in the act
would aim at even more efficiency and render the position of the consumers much stronger in
this era of globalization and privatization where the sudden unchecked advent of Multi
National Companies has to be balanced with the protection of the rights of the consumers by
the legislature and the judiciary.

BIBLIOGRAPHY:-

Scribd

Slideshare.net

www.indiankanoon.org

Wikepidea

www.legalserviceindia.com

www.ncdrc.nic.in
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CASE STUDIES :

1.Chetan Prakash
vs.
MET Institute of computer Science

Prakash was in final year of BSc when he sought admission in the

institute for MCS. The institute had stipulated that in order to pursue the MCS course,
student has to clear III year exams. He deposited the fees before declaration of result Seeing
that he had failed in exams, he tried to withdraw the admission and requested for a refund, to
which the institute did not Responded Finally, he sent a legal notice to the institute, and then
lodged a complaint in the consumer forum.
Judgement
• The institute had to pay the complainant, Chetan Prakash, Rs 32,000
as compensation for harassment along with the course fee of
Rs.62,200.

2. Krishnan Kumar Bajaj

vs.
PepsiCo.

Bajaj, a resident of Ahmedabad, had purchased a Lay’s packet on 28 June 2010 and sensed its
being underweight. He wrote twice to the manufacturer. While the first letter got no response,
in reply to the second, it offered Bajaj gifts hamper which he refused. Bajaj approached
CERS, who wrote to PepsiCo. Company refused to accept their fault and gave several
Unsatisfactory clarifications. CERS took the issue to the Consumer Disputes Redressal
Forum, which also gave a favourable ruling .The company asked for the bill of purchase
which Bajaj could not produce.
Judgement
• The Court overruled the argument of his not having a bill.
• CERS requested the court to direct PepsiCo to deposit Rs.2,00,000 in
the Consumer Welfare Fund and award Rs.2,75,250 as punitive
damages.
• And also to give Rs.75,000 as costs of litigation