Professional Documents
Culture Documents
ABVP PU
NOTES
on
Subject : Torts
The word tort has been derived from the latin word "tortum" which means to twist. In general, it
means conduct that adversely affects the legal right of others and is thus, "wrong". For a healthy
society it is necessary that it be free of anti-social elements and that an individual should have
freedom to exercise his rights without being restricted by others. Further, if there is a
transgression of any right, there must be a way to compensate or to restore the right. This is
essentially what the maxim, "Ubi just ibi remedium" implies. Where ever there is a right, there is a
remedy. Indeed, a right has no value if there is no way to enforce it. Such rights of individuals
primarily originate from two sources - contractual obligations and inherent rights that are available
to all the citizens against every other citizen, aka rights in rem. While the violation of contractual
right has clear remedy that arises from the contract itself, the violation of rights that are available
to all the persons in general does not have a clear remedy because there is no explicit contract
between the two parties. Such violations are called wrongs and it is for such wrongs that the law
of torts has been developed. For example, one has a right against all other persons to be free of
noise in the night. If somebody starts playing music loudly, then he violates one's right to be noise
free. He is, thus, doing a wrong and even though there is no contract between the two, one can
sue him for damages.
There can be innumerable types of acts that can transgress the rights of others and it is not
possible to come up with a definition that can accommodate all the cases. However, the following
are some definitions from the experts -
Salmond - A tort is a civil wrong for which the remedy is action in common law for unliquidated
damages and which is not exclusively a breach of contract or breach of trust or other equitable
obligation.
Winfield - Tortious liability arises from the breach of duty primarily affixed by law. The duty is
towards persons in general and its breach is redressable by an action for unliquidated damages.
Thus, it can be seen that tort is an act while the law of tort is the branch of law that provides relief
to the person who has been injured due to a tortious act.
Historically, crime and tort originated from the same root. Later on, they separated on the account
that a crime does not only affect the victim but also to the society as a whole to a great extent.
Thus, the branch of law that deals with criminal conduct evolved a lot faster than the branch of law
that deals with torts.
The nature of tort can be understood by distinguishing it from crime and contractual civil liabilities.
It can be said that tort is the residual of wrongful acts that are not crime and that do not fall under
contractual liabilities. Thus, if a wrongful act is neither crime nor a violation of a contract, it may fall
under tort. The damages are unliquidated and are decided only by the common sense of the
courts. The following differences between Tort and Crime and Tort and Breach of Contract, shows
the true nature of Tort.
Distinction between Tort and Breach of Contract
Tort Breach of Contract
Tort occurs when the right available to all the A breach of contract occurs due to a breach of
persons in general (right in rem) is violated a duty (right in persona) agreed upon by the
without the existence of any contract. parties themselves.
Victim is compensated for unliquidated damages
Victim is compensated as per the terms of the
as per the judgment of the judges. Thus,
contract and damages are usually liquidated.
damages are always unliquidated.
Duty is fixed by the law of the land and is towards Duty towards each other is affixed by the
all the persons. contract agreed to by the parties.
Doctrine of privity of contract does not apply
because there is no contract between the parties. Only the parties within the privity of contract
This was held in the case of Donaghue vs can initiate the suit.
Stevenson 1932.
When a contract is void, there is no question of
Tort applies even in cases where a contract is compensation. For example, a contract with a
void. For example, a minor may be liable in Tort. minor is void ab initio and so a minor cannot be
held liable for anything.
Justice is met by compensating the victim for his Justice is met only by compensating the victim
injury and exemplary damages may also be for actual loss.
In the case of Donaghue vs Stevenson 1932, A purchased ginger beer in a restaurant for his
woman friend. She drank a part of it and poured the rest into a glass. Thereby, she saw a dead
snail in the drink. She sued the manufacturer. It was held that the manufacturer had a duty
towards the public in general for making sure there are no noxious things in the drink even though
there was no contract between the purchaser and the manufacturer.
The same principal was applied in the case of Klaus Mittelbachert vs East India Hotels Ltd AIR
1997. In this case, Lufthansa Airlines had a contract with Hotel Oberoi Intercontinental for the stay
of its crew. One of the co-pilots was staying there took a dive in the pool. The pool design was
defective and the person's head hit the bottom. He was paralyzed and died after 13 yrs. The
defendants pleaded that he was a stranger to the contract. It was held that he could sue even for
the breach of contract as he was the beneficiary of the contract. He could also sue in torts where
plea of stranger to contract is irrelevant. The hotel was held liable for compensation even though
there was no contract between the person and the hotel and the hotel was made to pay 50Lacs as
exemplary damages.
Ingredients of Tort (Conditions that must be satisfied before a liability in Tort arises.)
There are three essential elements for an act to be liable under Tort.
1. Wrongful act or omission - There must be some act or omission of a duty on the part of the
defendant. For a tort to happen, the person must have first either done something that he was not
expected to do or omitted to do something that he was supposed to do.
Municipal Corp of Delhi vs Subhagvanti AIR 1966 - A clock tower was not in good
repairs. It fell and killed several people. MCD was held liable for its omission.
2. Duty imposed by law - The act or omission of an action must be required by law or the duty
must be imposed by law. This means that if an act that is prohibited by law causes harm, it is
liable under tort. Similarly, if the omission of an act that is required by law, causes harm, then it is
liable under tort. For example, law requires that the driver of a vehicle must drive carefully and if
driving without care, a pedestrian is hit, the omission of the act of driving carefuly is liable under
tort. However, if the worshipers stop going to a temple and thereby cause the priest to lose
money, this action is not liable under tort because going to temple is not an act that is required by
law. Such duties that are required by law are usually towards all the people in general.
Donaghue vs Stevenson 1932 - Held that the manufacturer of a drink has a legal duty
towards the consumers to ensure that noxious substances are not included in the drink.
3. Injury - The act or the omission must result in legal damage or injury i.e. violation of a legal
right vested in the plaintiff. This means that the act or omission must cause a damage that is
recognized by law as wrongful. For example, a person has a legal right to enjoy his property and if
someone throws trash in it, this is a violation of his legal right and is liable under tort. However, it
On the other hand, it is possible that a person suffers a huge loss or damage but none of his legal
rights are violated. This is called Damnum sine Injuria. In such cases, there is no tortious act.
Damnum Sine Injuria -
Glaucester Grammar School's case 1410 - Defendant opened a rival grammar school in
front of an existing one thereby causing the fees of the existing one to be reduced from 40pence
to 12 pence. He was not held liable as he did not violate any legal right of the plaintiff.
Ushaben vs BhagyaLaxmi Chitra Mandir AIR 1978 - Plaintiff sought a permanent
injunction against the cinema house to restrain them from showing the movie Jai Santoshi Maa. It
was contended that the movie depicts the goddesses Laxmi, Saraswati, and Parvati in bad light,
which is offensive to the plaintiff. It was held that hurt to religious sentiments is not recognized as
a legal wrong. Since there was no violation of a legal right, an injunction was not granted.
Chesmore vs Richards 1879 - Plaintiff had been drawing water from underground for
past 60 yrs. The defendant sunk a bore well on his land and drew huge quantity of water which
diminished the water supply of the plaintiff. It was held that the defendant was not liable because
he was only exercising his right and did not violate any right of the plaintiff.
Harm due to negligence - A person is not liable in tort even if he causes harm due to
negligence but does not cause injury. In Dickson vs Reuter's Telegram Co 1877, the defendant
company delivered a telegram that was not meant for the plaintiff to the plaintiff. Based on the
telegram, the plaintiff supplied some order which was not accepted by the sender of the telegram.
Plaintiff suffered heavy losses and sued the defendant company. It was held that the company
owed a contractual duty only to the sender of the telegram and not to the receiver. Hence they
were not liable.
Harm due to malice - If a person has not caused an injury even if he does an act with
malice, he is not liable. In Bradford Corporation (mayor of) vs Pickles 1895, the defendants
sunk a shaft in their own land which caused the water to become discoloured and unsuitable for
the plaintiff. It was held that even if the defendant did it with malice, he had not violated any right
of the plaintiff and hence was not liable.
Kinds of Torts
As mentioned before there can be innumerable type of acts that violate the legal right of others.
The law of tort is therefore ever evolving. New ways in which the rights are violated come to light
everyday. However, they can be classified on the basis of way of incurrment of liability into the
following three categories -
1. Intentional - Wrongful acts that are done intentionally, irrespective of with or without
malice, belong to this category. For example, torts such as assault, battery, trespass to
land, false imprisonment are intentional torts.
2. Negligent Conduct - Wrongful acts that are done without any intention but because of not
taking proper care that is required by law fall into this category.
3. Strict Liability - Acts that are neither done intentionally nor do involve any negligence, but
still cause an injury to other are liable under the concept of strict liability as propounded
in Rylands vs Fletcher. In strict liability cases, the defendant is liable even if it acted
reasonably. There are 3 types of strict liability cases:
1- keeping wild animals
2- dangerous, legal activities such as blasting roads
3- the manufacture of products (products liability)
1. Physical Torts - Causing physical hurt to body such as assault, battery. It can happen with
intention or even with negligence.
2. Abstract Torts - Causing damage to mind or reputation such as defamation.
3. Tort involving property - For example, Trespass to land.
4. Tort involving legal right - For example, false imprisonment.
5. Nuisance - Causing unreasonable restriction towards exercise of one's legal right.
Q. Describe general exceptions regarding Torts that are not actionable / General Defences
for Torts.
In Woolridge vs Sumner 1963, the plaintiff a photographer was taking photographs at a horse
show, during which one horse rounded the bend too fast. As the horse galloped furiously, the
plaintiff was frightened and he fell in the course. He was seriously injured. It was held that the
defendants had taken proper care in closing the course and the plaintiff, by being in the show,
agreed to take the risk of such an accident. The defendants were not held liable.
However, the action causing harm must not go beyond the limit of what has been consented. For
example, in a sport of fencing, a person consents to an injruy that happens while playing by the
rules. If he is injured due to an action that violates the rules, he can claim compensation because
he never consented to an injury while playing without rules.
In Laxmi Rajan vs Malar Hospital 1998, a woman consented for a surgery to remove a lump
from her breast. But the hospital removed her uterus as well without any genuine reason. It was
held that removing of her uterus exceed beyond what she had consented for.
Also, the consent must be free. It must not be because of any compulsion. Thus, if a servant was
compelled by the master to do a certain task despite his protests, and if he is injured while doing
it, the master cannot take the defence of volenti non fit injuria because the consent was not free.
Exceptions - In the following conditions, this defence cannot be taken even if the plaintiff has
consented -
1. Rescue Conditions - When the plaintiff sufferes injury while saving someone. For
example, A's horse is out of control and is galloping towards a busy street. B realizes that if
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the horse reaches the street it will hurt many people and so he bravely goes and control's
the horse. He is injured in doing so and sue's A. Here A cannot take the defence that B did
that act upon his own consent. It is considered as a just action in public interest and the
society should reward it instead of preventing him from getting compensation.
2. Unfair Contract Terms - Where the terms of a contract are unfair, the defendant cannot
take this defence. For example, even if a laundry, by contract, absolves itself of all liability
for damage to clothes, a person can claim compensation because the contract is unfair to
the consumers.
3. Inevitable Accident
Accident means an unexpected occurance of something that could not have been predicted or
prevented. In such a case, the defendants will not be liable if they had no intention to cause it and
if the plaintiff is injured because of it. For example, in Stanley vs Powell 1891, the plaintiff and the
defendant were members of a shooting party. The defendant shot a bird but the bulled ricocheted
off a tree and hit the plaintiff. The defendant was not held liable because it was an accident and
the defendant did not intent it and could neither have prevented it.
However, the defence of Inevitable Accident is not a license to negligence. For example, A has
hired B's car. While driving, one of the tires bursts and causes accident injuring A. Here, if the tires
were worn out and were in bad condition, it would be negligence of B and he would be held liable
for A's injuries.
4. Act of God
An act of God in a legal sense is an extraordinary occurance of circumstance which could not
have been predicted or prevented and happens because of natural causes. Nobody can predict,
prevent, or protect from a natural disaster such an an earthquake or flood. Thus, it is
unreasonable to expect a person to be liable for damages caused by such acts of God. There are
two essential condtions for this defence - the event must be due to a natural cause and it must be
extraordinary or some thing that could not have been anticipated or expected. For example, heavy
5. Private Defence
As per section 96 of IPC, nothing is an offence that is done in exercise of the right of private
defence. Thus, law permits the use of reasonable and necessary force in preventing harm to
human body or property and injuries caused by the use of such force are not actionable. However,
the force must be reasonable and not excessive. In Bird vs Hollbrook 1892, the defendant used
spring guns in his property without notice. It was held that he used excessive force and so was
liable for plaintiff's injury even though the plaintiff was trespassing on his property.
6. Mistake
Generally, mistake is not a valid defence against an action of tort. Thus, hurting a person under
the mistaken belief that he is trespassing on your property, will not be defensible. However, in
certain cases, it could be a valid defence. For example, in the case of malicious prosecution, it is
necessary to prove that the defendant acted maliciously and without a reasonable cause. If the
prosecution was done only by mistake, it is not actionable.
Further, honest belief in the truth of a statement is a defence against an action for deceit.
7. Necessity
If the act causing damage is done to prevent a greater harm, it is excusable. For example, a Ship
ran over a small boat hurting 2 people in order to prevent collision with another ship which would
have hurt hundreds of people is excusable. Thus, in Leigh vs Gladstone 1909, force feeding of a
hunger striking prisoner to save her was held to be a good defence to an action for battery.
8. Statutory Authority
An act that is approved by the legislature or is done upon the direction of the legislature is
excused from tortious liability even though in a normal circumstances, it would have been a tort.
When an act is done under the authority of an Act, it is a complete defence and the injured party
has no remedy except that is prescribed by the statute.
In Vaughan vs Taff Valde Rail Co 1860, sparks from an engine caused fire in appellant's woods
that existed in his land adjoining the railway track. It was held that since the company was
authorized to run the railway and since the company had taken proper care in running the railway,
it was not liable for the damage.
Q. What are the torts relating to the absolute liability? What are its kinds? What is Ryland
vs Fletcher rule? What are its exceptions? Is this rule applied in India in present
In certain situations, a person is held liable for the damages caused by his actions even when the
actions are done without any ill intention or negligence on account of equity and justice. For
example, if a person keeps a lion for a pet and despite of all the precautions the lion escapes the
cage and kills someone. In this case, the owner of the lion will be liable even though he had no ill
intention to cause death and had taken all the precautions to keep the lion in the cage. This
seems just because the damage happened only because he brought a dangerous thing on his
property. He was also aware of the consequences if the lion escapes the cage and so he should
be made liable if it escapes and causes damage.
This principle of holding a person liable for his actions without any kind of wrong doing on his part
is called the principle of absolute liability or no fault liability. This principle was first upheld in the
case of Ryland vs Fletcher by the privy council in 1868. However, later on some exceptions to
this were also established due to which "strict liability" is considered a more appropriate name
for this principle. In this case, the defendant hired contractors to build a reservoir over his land for
providing water to his mill. While digging, the contractors failed to observe some old disused
shafts under the site of the reservoir that lead to plaintiff's mine on the adjoining land. When water
was filled in the reservoir, the water flooded the mine through the shafts. The plaintiff sued the
defendant. The defendant pleaded that there was no intention and since he did not know about
the shafts, he was not negligent even though the contractors were. Even so, he was held liable. J
Blackburn observed that when a person, for his own purposes, brings to his property anything
that is likely to cause a mischief if it escapes, must keep it at his peril and if it escapes and causes
damage, he must be held liable. He can take the defence that the thing escaped due to an act of
the plaintiff or due to vis major (act of God) but since nothing of that sort happened here, then it is
unnecessary to inquire what excuse would be sufficient.
To this rule promulgated by J Blackburn, another requirement was added by the Court of
Exchequer Chamber, that the use must be a non-natural use of land as was the case in Ryland vs
Fletcher itself. For example, growing of regular trees is a natural use but growing poisonous trees
is not. Keeping dogs as pet is a natural use but keeping wild beasts is not. Thus, the conditions
when this rule will apply are -
1. The thing kept must be dangerous - The thing kept on the land must be as such as is
likely to cause mischief if it escapes. For example, storing gas or explosives or wild beasts
are all likely to cause damage if they escape.
2. The thing must escape - If the thing is within the boundary of the defendant's land, he is
not liable. The thing must escape out of his land for him to be liable. In Crowhurst vs
Amersham Burial Board 1878, branches of a poisonous tree were hanging outside the
land of the defendant. Plaintiff's cattle ate them and died. Defendant was held liable
because protrusion of branches out side his property were considered as escaping from his
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property. However, in Ponting vs Noakes 1994, when the plaintiff's horse intruded over his
boundary and ate poisonous leaves of the defendant's tree, he was not held liable because
there was no escape.
3. The thing must be a non natural use of land - The use must not be an ordinary use of
the land. There must be a special purpose because of which it brings additional danger to
other. In Noble vs Harrison 1926, a branch of a tree growing on defendant's land broke
and fell on plaintiff's vehicle. It was held that growing regular trees is not a non natural use
of land and the branch fell because of an inherent problem and not because of any
negligence of the defendant and so he was not liable.
As mentioned before the following are exceptions or defenses against this rule -
1. Plaintiff's own default - If the thing escapes due to plaintiff's fault the defendant cannot be
held liable. In Eastern and South African Telegraph Co. Ltd. v Capetown Tramway Co
1902. the plaintiff's submarine cable transmissions were disturbed by escape of electric
current from defendant's tramway. It was held that since the current was not causing any
problem to regular users and it was causing problem to the cables only because they were
too sensitive and so the defendant cannot be held liable. One cannot increase his
neighbor's liabilities by putting his land to special uses.
2. Act of God - In circumstances where no human has control over, no one can be held
liable. In Nichols vs Marsland 1876, the defendant created artificial lakes to store
rainwater. In that particular year, there were exceptionally heavy rains, which caused the
embankments to break causing floods, which broke defendant's bridges. It was held that
since there was no negligence on the part of the defendant and the flood happened only
because of rains so heavy that nobody could imagine, the defendant was not liable.
3. Consent of the plaintiff - If the plaintiff has consented for the accumulation of the
dangerous thing, he cannot hold the defendant liable. This is also the case when an activity
is done for mutual benefit. For example, A lives on the ground floor and the defendant lives
on the floor above A's. Now, a water tank is built by the defendant to supply water for both
of them. The defendant will not be held liable for leakage of water fro m the tank.
4. Act of third party - When a third party, who is not an employee or a servant or a contractor
of the defendant is responsible for causing the dangerous thing to escape, the defendant
will not be held liable for the damage. In Box vs Jubb 1879, the overflow from the
defendant's reservoir was caused by the blocking of a drain by some strangers. The
defendant was held not liable. However, if such act can be foreseen, this defence cannot
be pleaded because the defendant must take precautions to prevent such an act. In M.P.
Electricity Board vs Shail Kumar AIR 2002, a person was killed by a live electric wire
lying on the road. SC applied the rule of strict liability and held that the defence of act of
Position in India
The principle of strict liability is applicable in India as well. For example, Motor Vehicles Act 1938,
recognizes no fault liability. Similarly, the liability of a public carrier such as railways has also
been increased from that of a bailee to an insurer. However, there has been a deviation in the
scope of this rule. Depending on the situation, its scope has been increased as well as decreased
by the courts. For example, in Madras Railway Co. vs Zamindar 1974, the water collected in a
pond for agricultural purposes escaped and caused damage to the railway track and bridges.
Here, the application of this rule was restricted because the collection of water in such a way is a
necessity in Indian conditions and so it is a natural use of the land. This mechanism to store
rainwater is used throughout the country and since ages. Therefore, the defendant was not held
liable.
A landmark case in this respect was the case of M C Mehta vs Union of India AIR 1987. In this
case, oleum gas from a fertilizer plant of Shriram Foods and Fertilizers leaked and caused
damage to several people and even killed one advocate. In this case, the rule of Ryland vs
Fletcher was applied. However, the company pleaded sabotage as a defence. SC went one step
further and promulgated the rule of Absolute Liability. It observed that the rule of Ryland vs
Fletcher was a century old and was not sufficient to decide cases as science has advanced a lot
in these year. If British laws haven't progressed, Indian courts are not bound to follow their law
and can evolve the laws as per the requirements of the society. It held that an enterprise that
engages in dangerous substances has an absolute responsibility to ensure the safety of the
common public. It is only the company that can know the consequences of its activities and so it
must take all the steps to prevent any accident. If, even after all precautions, accident happens,
the company still should be made absolutely liable for the damages. The reason being that the
company has a social obligation to compensate the people who suffered from its activity. SC also
laid down that the measure of compensation should depend on the magnitude and capacity of the
enterprise so that it can have a deterrent effect.
The following are the modes through which liability in Torts can be discharged -
Q. Explain various Judicial remedies that are available to a plaintiff in an action of tort. Are
there any extra judicial remedies too? If so, enumerate them. What are the general types of
damages available in cases of Torts? Explain with examples. What is the doctrine of
remoteness of damages? Discuss law on this point.
Judicial Remedies -
Remoteness of Damage
The law allows only those losses which are not too 'remote'. There are two main tests of
remoteness which are applied in tort, namely direct consequences and reasonably foreseeable
consequences.
Direct Consequence - Provided some damage is foreseeable, liability lies for all the natural and
direct consequences flowing from the breach of duty. In Re Polemis [1921] 3 KB 560 (CA),
stevedores, who were servants of the defendant, negligently let fall a plank into a ship’s hold
containing petrol in metal containers. The impact of the plank as it hit the floor of the hold caused
a spark, and petrol vapour was ignited. The ship was destroyed. Arbitrators found that the spark
could not have been reasonably foreseen, though some damage was foreseeable from the
impact. The defendant was found liable because the claimant’s loss was a direct, though not
reasonably foreseeable, result.
Reasonable Foreseeability - In The Wagon Mound (No. 1) [1961] AC 388, the defendant
carelessly discharged oil from a ship in Sydney Harbour, and the oil floated on the surface of the
water towards the claimant’s
wharf. The claimant’s servants, who were welding on the wharf, continued their work after being
advised (non-negligently) that it was safe to do so. Sparks from the welding equipment first of all
ignited cotton waste mixed up in the oil; then the oil itself caught fire. The claimant sued for
destruction of the wharf by fire. The defendant was found not liable in negligence, because it was
not reasonably foreseeable that the oil might ignite on water in these circumstances. Damage by
Q. What are the aims and objects of the CPA, 1986? Describe the constitution, functions
and the procedure of District Forum under the CPA. What are the provisions of appeal
under the CPA and before which authority an appeal lies against an order of an
agency? Explain the composition, jurisdiction, and powers of State Consumer Forum
(State Consumer Redressal Commission) under CPA. Define and discuss the
word"consumer" and "service" under CPA. Illustrate with cases.
In this background, the CPA 1986 gave power in the hands of the buyer by allowing an easier and
cheaper way to redress their grievances, thereby holding the sellers accountable for their actions
more often. It provides redress to a consumer when the purchased product is defective or when
there is a deficiency in service. The following are aims and objectives of this act -
1. The most important objective of this act is to provide a fast and cheap way for consumers
to hold the sellers accountable for their products or services.
2. Justice to consumers.
3. Protection of consumers from fraudsters or companies selling substandard products and
services.
Besides the above objectives, Section 6 of CPA 1986 also provides certain rights as objectives to
the consumers. These are -
1. Right to be protected against goods that are hazardous or dangerous to life and property.
2. Right to be informed about the quality, quantity, potency, purity, standard and price or a
product and service.
3. Right to competitive pricing.
4. Right to be heard and to be assured that consumer interest will receive due consideration
at appropriate forum.
5. Right to redressal against unfair trade practices and exploitation of consumers.
6. Right to consumer education.
It is a complete code in the sense that it provides complete details of the constitution and
jurisdiction of the commission and procedure for filing the complaint and appealing the decision. It
does not depend on CPC and the cases can be finalized completely under this act. In fact, as held
in Ansal Properties vs Chandra Bhan Kohli 1991, Consumer Disputes Redressal Agencies
provide complete machinery for justice including a final appeal to the Supreme Court and so are
outside the scope of High Courts and HCs can't entertain writ petitions against their judgments.
Under Section 9 of this act, three agencies are established to hear consumer complaints -
District Forum
1-A. Every appointment under sub-section (1) shall be made by the State Government on the
recommendation of selection Committee consisting of the following namely:
2. Every member of the District Forum shall hold office for a term of five years or up to the age of
sixty-five years/ whichever is earlier:
3. The salary or honorarium and other allowances payable to, and the other terms and conditions
of service of the members of the District Forum shall be such as may be prescribed by the State
Government.
1. Pecuniary Jurisdiction - Subject to 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 lakhs.
2. Territorial Jurisdiction - A complaint shall be instituted in a District Forum within the local
limits of whose jurisdiction, -
1. The opposite party or each of the opposite parties, where there are more than one,
at the time of the institution of the complaint, actually and voluntarily resides
or carries on business or has a branch office, or] personally works for gain or
For a complaint to lie in a district forum, at least a part of the transaction of the actual business
must have occurred in that district. In National Insurance Co vs Sonic Surgical 2003, a fire
accident took place in Ambala and a part of the claim was partly processed in Chandigarh. It was
held that merely processing of claim in one place does not form a ground to file a case in that
district.
1. The consumer to whom the goods or services have been sold or are agreed to be sold.
2. Any recognized consumer association even if the consumer is not a member of the
association. Recognized means any voluntary association registered under Companies Act
1956 or any other law for the time being in force.
3. One or more consumers, where there are numerous consumers all having same interest,
with the permission of district forum.
4. The state or central government.
The complaint must be accompanied with such amount of fee and payable in such manner as
may be prescribed.
The forum may accept or reject the complaint. The complainant must be given an opportunity to
be heard before rejection. The acceptance or rejection will be decided in 21 days.
1. to remove the defect pointed out by an appropriate laboratory from the goods in questions.
2. to replace the goods with new goods of similar description which shall be free from any
defect.
3. to return to the complainant the price or as the case may be, the charges paid by the
complainant.
4. to pay such amount as may be awarded by it as compensation to the consumer for any
loss or injury suffered by the consumer due to the negligence of the opposite party.
5. to discontinue the unfair trade practice or restrictive trade practice or not to repeat it.
6. not to offer the hazardous product for sale.
7. to cease manufacture of hazardous goods and to desist from offering services that are
hazardous.
8. when injury has been suffered by may customer who are not easily identifiable, the
opposite party may be required to pay such sum as the forum deems fit.
9. to issue any corrective advertisement to neutralize the effect of any misleading
advertisement.
10. to provide adequate costs to parties.
The District Forum also has the power to grant punitive damages in such circumstances as it
deems fit.
The forum must take into account all the evidence and the documents produced by the parties
and the order of the forum should be a speaking order, which means that it should detail the
reasons behind the order. In K S Sidhu vs Senior Executive Engineer 2001, the complaint was
dismissed by the District Forum by a non speaking order. It did not discuss the evidence or the
documents submitted before it and thus it was held that the order was unjust and fit to be set
aside.
As per section 19-A, appeal to the State Commission or the National Commission shall be heard
as expeditiously as possible and an effort shall be made to dispose off the appeal within a period
of 90 days from the date of admission. If the appeal is disposed of after this time, the commission
shall state the reasons for the delay.
State Commission
2. The salary or honorarium and other allowances payable to, and the other terms and conditions
of service of the members of the State Commission shall be such as may be prescribed by the
State Government.
3. Every member of the State Commission shall hold office for a term of five years or up to the age
of sixty-seven years, whichever is earlier and shall not be eligible for re-appointment.
1. Pecuniary Jurisdiction - Subject to other provisions of this Act, the State Commission
shall have jurisdiction to entertain complaints where the value of the goods or services and
the Compensation, if any, claimed exceeds rupees 20 lakhs but does not exceed rupees 1
crore.
2. Territorial Jurisdiction - It can entertain appeals against the orders of any District Forum
of the state.
As per section 17 A , on the application of the complainant or of its own motion, the State
Commission may, at any stage of the proceeding, transfer any complaint pending before the
District Forum to another District Forum within the State if the interest of justice so requires.
National Commission
Provided that not more than fifty per cent, of the members shall be from amongst the persons
having a judicial background
Provided also that every appointment under this clause shall be made by I. Central Government
on the recommendation of a Selection Committee consisting the following, namely:-
(a) a person who is a Judge of the Supreme Court, to be nominated by the Chief Justice of
India - Chairman:
(b) the Secretary in the Department of Legal Affairs in the Government of India - Member;
(c) Secretary of the Department dealing with consumer affairs in the Government of India -
Member;
Subject to the other provisions of this Act, the National Commission shall have jurisdiction -
(a) to entertain -
(i) complaints where the value of the goods or services and compensation, if any, claimed
exceeds rupees twenty lakhs; and
(ii) appeals against the orders of any State Commission; and
(b) 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 where it appears to the National
Commission that such State Commission has exercised a jurisdiction not vested in it by law, or
has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction
illegally or with material irregularity.
The National Commission shall, in the disposal of any complaints or any proceedings before it,
have -
(a) the powers of a civil court as specified in sub-sections (4), (5) and (6) of section 13;
(b) the power to issue an order to the opposite party directing, him to do any one or more of the
things referred to in clauses (a) to (i) of sub-section (1) of section14, and follow such procedure as
may be prescribed by the Central Government.
Section 22A. Power to set aside ex parte orders - Where an order is passed by the National
Commission ex parte against the Opposite party or a complainant, as the case may be, the
aggrieved party may apply to the Commission to set aside the said order in the interest of justice.
Section 22B. Transfer of cases - On the application of the complainant or of its own motion, the
National Commission may, at any stage of the proceeding, in the interest of justice, transfer any
complaint pending before the District Forum of one State to a District Forum of another State or
before one State Commission to another State Commission
Who is Consumer?
As per Section 2 (1) (d) of CPA 1986 - "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 obtains such goods for resale or for
any commercial purpose; or
(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 hires or avails of the services for consideration paid or
promised, or partly paid and partly promised, or under any system of deferred payment, when
such services are availed of with the approval of the first mentioned person but does not include a
person wo avails of such services for any commercial purpose;
1. Buys goods or Hires Services - Physical products such as Car, TV, Utensils etc as well as
intangible services ranging from Hair Cutting Saloon to Banking etc. are both valid purchases for
being a consumer. The scope of services is quite wide and more and more things are coming into
its ambit slowly. For example, in the landmark case of Indian Medical Association vs VP
Shantha and others 1995, SC held that patients treated by a medical professional is also a
3. For personal Use - The goods or service must be bought for personal use. Originally, a person
who bought a product or a service for commercial use was not considered a consumer but after
the amendment in 1993, use of such goods for making a livelihood is accepted. Thus, a self
employed person who buys a Photocopy machine for his own shop is a consumer. However,
goods must not be bought for resale.
In Anant Raj Agencies vs TELCO 1996, a company bought a car for personal use of a director of
the company. It was held that since the car was bought for personal use and not for commercial
use or for making a profit on a large scale, the company was a consumer.
4. Use by the purchaser or any body else - It is not necessary that only the purchaser of the
goods or services be the user. Anybody who uses the goods or services with due permission of
the purchaser, is also a consumer. Thus, in a landmark case of Spring Meadows Hospital vs
Harjot Ahluwalia AIR 1998, SC held that the parents of the child who was treated by the hospital
were hirers of the service while the child was the beneficiary and thus both were consumers.
What is a Service?
As per Section 2 (1) (o) "Services" means service of any description which is made available to
potential users and includes, but not limited to, the provision of facilities in connection with
banking, Financing insurance, transport, processing, supply of electrical or other energy, board or
lodging or both, housing construction entertainment, amusement or the purveying of news or other
information, but does not include the rendering of any service free of charge or under a contract of
personal service;
Based on this definition, the scope of services is quite wide. It will not be an exaggeration to says
that any thing for which a customer pays and that is not a physical product is a service. Cinema
halls, Health clubs, University, College, are all service providers.
In the landmark case of Indian Medical Association vs VP Shantha and others 1995, SC held
that patients treated by a medical professional is also a consumer of medical services and is
covered by CPA.
The service must be a paid service. Free or non-profit services do not fall under this category and
claims cannot be made regarding such services under the CPA. In A Srinivas Murthy vs
Chairman, Bangalore Development Authority 1991, the question before the court was whether
a tax payer is a consumer or not. A person, who paid house tax, was bitten by a stray dog and he
sued Bangalore Development Authority for not taking care of the menace of stray dogs. It was
held that there was no quid pro quo between the tax and the services rendered by BDA. The
removal of stray dogs was a voluntary action of BDA and was done free of cost. Thus, the
complainant was not a consumer and removal of dogs was not a service under this act.
Just like a defect, which renders a product not as useful as promised, there can be a deficiency in
service, which render a service not as useful as promised at the time of sale. CPA 1986 allows
consumers of services to take action against service providers for compensating for the deficiency
in the promised service. As per section 2(1)(g), "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.
Thus, in Mahanagar Telephone Nigam vs Vinod Karkare 1991, when a complaint with the
telephone dept. was pending for more than six months, it was held to be a deficiency in service.
In Indian Airlines vs S N Singh 1992, a metallic wire was present in the food given to a traveler
because of which his gums were hurt. He was awarded 2000 Rs as compensation for deficiency
in service.