Chapter - III

CONSUMER DISPUTES REDRESSAL AGENCIES

 Establishment of Consumer Disputes Redressal
Agencies
Established for the purposes of the Act:
a) Consumer Disputes Redressal Forum to be known
as the “District Forum” established by the State
Government in each district of the State, more than
one District Forum in a district is possible if the
State Government thinks.
(b) Consumer Disputes Redressal Commission to be
known as the “State Commission” established by
the State Government; and
(c) National Consumer Disputes Redressal
Commission established by the Central Government.
 Composition of the District Forum
1) Each District Forum shall consist of:
a) a person who is qualified to be a District Judge,
who shall be its President;
b) two other members, one of whom shall be a
woman, who shall have the following qualifications,
namely:
i) be not less than 35 years of age,
ii) possesses an Under graduate degree from a
recognized university,
iii) be persons of ability, integrity and standing, and
have adequate knowledge and experience of at least ten
years in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs or
administration.
 Disqualification
A persons shall be disqualified for appointment as a
member, if he/she:
a) has been convicted and sentenced to imprisonment for
an offence which, in the opinion of the State Government,
involves moral turpitude; or
b) is an undischarged insolvent; or
c) is of unsound mind and stands so declared by a
competent court; or
d) has been dismissed from the service of the Government
or a body corporate owned or controlled by the Government;
or
e) has, in the opinion of the State Government, such
financial or other interest as is likely to affect prejudicially the
discharge by him of his functions as a member; or
f) has such other disqualifications as may be prescribed by
the State Government.
 Appointment
Every appointment shall be made by the State Government
on the recommendation of a selection committee consist of
the following:
i) President of the State Commission —Chairman,
ii) Secretary, Law Department of the State —Member,
iii) Secretary, in-charge of the Department dealing
with consumer affairs in the State —Member
In case the President of the State Commission because of any
reason of absence or unable to act as Chairman of the
Selection Committee, then State Government may refer the
matter to the Chief Justice of the High Court for nominating a
sitting Judge of that High Court to act as Chairman.
Term of office/re-appointment and resignation
Every member of the District forum shall hold the
office for the term of 5 years or 65 years of age
whichever is earlier.
Re-apointment is also possible with the fulfill of all
conditions and based on the selection committee
recommendations.
Resignation by any member or president by submit
a written letter to the State Government, once it is
accepted then only he/she can resign. The vacancy
will be filled as per the qualification. Salary will be
decided by the State government.
 Jurisdiction of the District Forum
1) The District Forum shall have jurisdiction (power)
to entertain (considered) complaints where the
value of the goods or services and the
compensation, if any, claimed does not exceed
rupees twenty lakhs. (as per amendment of 2003,
twenty five laths)
(2) A complaint shall be accepted by the District
forum within the local limits of whose jurisdiction.
 Mode of complaint
1) A complaint in case of defect or any other
reasons in goods sold/ agreed to be sold or in case
of deficiency or any other reasons in service
provided/ agreed to be provided filed with a District
Forum by:
a) the consumer to whom such goods are
sold/agreed to be sold or such service provided/
agreed to be provided;
b) any recognized consumer association whether
the consumer even such consumer is not a member
of such association;
 c) one or more consumers, where there are
numerous consumers have the same interest, with
the permission of the District Forum, one on behalf
of all; or
d) the Central/ State Government, either in its
individual capacity or as a representative of
interests of the consumers in general.
A compliant can be filled in the District Forum.
(HINT: It means who can be a consumer then they
can file a compliant under the District Forum)
2) Every complaint filed under shall be accompanied
with such amount of fee and payable as per the Act.
3) On receipt of a complaint made, the District Forum
may, by order, allow the complaint to be proceeded with
or rejected.
A complaint shall not be rejected unless an opportunity
to heard from the complainant.
The admissibility of the complaint shall be decided
within twenty-one days from the date on which the
complaint was received.
4) Where a complaint is allowed to be proceeded, the
District Forum may proceed as per the Act.
Once a complaint has been admitted by the District
Forum, it shall not be transferred to any other court or
tribunal or any authority set up by or under any other
law.
 Procedure for admission of complaint
1) The District Forum accept a complaint which is relates to any
goods/service:
a) After acceptance of the complaint by the District forum, it
will forward it to the opposite party, within a period of 30days such
opposite party need to reply for it and further period of 15 days will
be given by the forum.
b) if the opposite party after the receipt of the compliant denies
or fails to take any action within the time, the District Forum shall
proceed to settle the consumer as per the Act.
c) in case of any analysis of the defect goods is need to be then
the forum collect the sample from the complainant sealed it with
authenticate, insist the appropriate laboratory with proper
guidance to conduct and submit the report to forum within a
period of 45 days, extension period will be granted if necessary.
 d) payment to the lab test will be made by the
District forum from the fees amount paid or deposited
by the complainant;
e) based on the fee payment lab may conduct the
analysis and submit the report, after receive the
report ,it will be forwarded to the opposite party with
remarks.
f) in case any of the party (opposite party or
complainant) arise a disputes about the lab report,
then the forum require such party to submit written
objection of the lab report.
 g) the District Forum after given a reasonable
opportunity about the objection of the lap report to
the complainant and the opposite party, issue an
appropriate order as per the Act.
NOTE: Service deficiency means evidence need to be
submitted.
2. If the complainant fails to appear on the date of
hearing, the District Forum may either dismiss the
complaint for default or decide it on merits.
3) Each complaint final order need to be issued by
the forum within 3 months from the date of receipt
notice by opposite party in case of lab test not
required. With lab analysis and report mean within
5 months.
No adjournment shall be granted by the District Forum
unless if sufficient cause is shown and the reasons for
grant of adjournment have been recorded in writing by
the Forum.
3) An interim order can be issued if necessary by the
forum based facts and circumstances.
4) The forum has the same powers as a civil court under
the Code of Civil Procedure, 1908 (5 of 1908) while
trying a suit in respect of the following matters, namely:
i) the summon and enforce the attendance of any
defendant or witness and examining the witness on
oath;
ii) the discovery and production of any document or
other material object producible as evidence;
 iii) the reception of evidence on affidavits;
iv) the requisitioning of the report of the
concerned analysis or test from the appropriate
laboratory or from any other relevant source;
v) issuing of any commission for the examination
of any witness; and
vi) any other matter which may be prescribed.
5) Every proceeding before the District Forum shall
be deemed to be a judicial proceeding of the Indian
Penal Code,1860, and the District Forum shall be
deemed to be a civil court under certain purposes
,also follows the Code of Criminal Procedure,1974.
6) In the event of death of a complainant who is a
consumer or of the opposite party against whom
the complaint has been filed, shall apply subject to
the modification that every reference therein to the
plaintiff and the defendant shall be construed as
reference to a complainant or the opposite party, as
the case may be.
 Order of the District Forum
The District Forum issue an order to the opposite party to
do one or more of the following :
a) to remove the defect pointed out by the
appropriate laboratory from the goods;
b) to replace the goods with new goods of similar
description which shall be free from any defect;
c) to return to the complainant the price, or the
charges paid by the complainant;
d) to pay such amount as compensation to the
consumer for any loss or injury suffered by the consumer
due to the negligence of the opposite party.
e) to remove the defects in goods or deficiencies in the
services based on the compliant;
 f) to discontinue the unfair/ restrictive trade practice and
not to repeat them;
g) not to offer the hazardous goods for sale;
h) to withdraw the hazardous goods from being offered for
sale;
ha) to cease manufacture of hazardous goods and to give
up such offer which are hazardous in nature;
hb) to pay such sum amount, if it is incurred any loss or
injury to a large number of consumers who are not identifiable .
The minimum amount payable shall not be less than 5% of the
value of such defective goods sold or services provided, to such
consumers.
hc) to issue corrective advertisement to neutralize (make
to safe) the effect of misleading advertisement at the cost of the
opposite party responsible for issue such misleading
advertisement;
i) to provide for adequate costs to parties.
2) Every proceeding shall be conducted by the President of
the District Forum and at least one member together.
If a member, for any reason, is unable to conduct a
proceeding till it is completed, the President and the other
member shall continue the proceeding from the stage at
which it was last heard by the previous member.
2A) Every order made by the District Forum shall be
signed by its President and the member or members who
conducted the proceeding.
If the President and one member and they differ on any
point, they shall state the point on which they differ and
refer it the other member for hear on such point and the
opinion of the majority shall be the order of the District
Forum.
3) The procedure related to the conduct of the meetings of
the District Forum, as per the prescribed by the State
Government.
 Appeal
Any person aggrieved by an order made by the
District Forum may prefer an appeal against such
order to the State Commission within 30 days from
the date of the order.
The State Commission have the power to extend
the time limit of 30 days to file an appeal, if there
was sufficient cause for not filing it within that
period.
The appellant (complainant or who wants to make
higher appeal) has to deposit 50% of the amount
(as a compensation amount ordered by the District
forum) or Rs.25,000/-, whichever is less.