Consumer Protection Act

Redressal mechanism under Consumer

Protection Act 1986

Name – Akshat Aryan

Course – B.A.LL.B. (H)
Semester – 1st semester
Enrollment – A46011123002
Professor – Amitanshu Nayak
 Acknowledgement

I would like to express my gratitude to all those who have contributed to the successful
completion of this contract law assignment, particularly in the exploration of the topic consumer
redressal mechanism that forms the crux of our study. This endeavour has been both enlightening
and challenging, and I am thankful for the support and guidance I have received throughout
the process.
First and foremost, I extend my appreciation to my professor Amitanshu Nayak for providing
valuable insights, encouragement, and direction in understanding the complexities of consumer
law. Your expertise has been instrumental in shaping my understanding of the subject matter.
I am also indebted to my peers and classmates who have engaged in fruitful discussions,
exchanged ideas, and offered constructive feedback.
Lastly, I would like to express my gratitude to my friends and family for their unwavering
support and understanding during the demanding period of this assignment. Your
encouragement has been a source of motivation and strength.
In conclusion, this assignment has been a journey of intellectual growth and discovery, and I
am thankful for the collective efforts that have contributed to its successful completion.
Sincerely
Akshat Aryan
B.A.LL.B.[2023-28]
Enrolment number- A46011123002
 Introduction
The Consumer Protection Act (CPA) is a pivotal legislation aimed at safeguarding the rights and
interests of consumers in various transactions. Enacted to address the rising concerns related to
unfair trade practices and the exploitation of consumers, the CPA serves as a legal framework
that empowers consumers and ensures their protection against deceptive business practices. In
this context, one of the significant mechanisms outlined in the Act is the redressal mechanism,
which plays a crucial role in providing swift and effective resolution of consumer grievances.

The Consumer Protection Act, often considered a landmark legislation, was enacted to replace
the archaic Consumer Protection Act of 1986. The new Act came into effect in 2019, ushering in
a more robust and contemporary approach to consumer rights. It recognizes the evolving
dynamics of consumerism, introducing provisions that address emerging challenges in the
marketplace.

The primary objective of the Consumer Protection Act is to promote and protect the rights of
consumers, ensuring fair and transparent dealings in the marketplace. It delineates the
responsibilities of manufacturers, sellers, and service providers, emphasizing the need for
honesty, transparency, and accountability in their interactions with consumers. The Act covers a
wide range of transactions, including the purchase of goods, availing of services, and even e-
commerce transactions, thereby encompassing the diverse spectrum of modern consumer
activities.

One of the key features of the Consumer Protection Act is the establishment of consumer
councils at the district, state, and national levels. These councils act as advisory bodies,
contributing to the formulation and implementation of policies that benefit consumers. They play
a crucial role in creating awareness among consumers about their rights and responsibilities.

The redressal mechanism embedded in the Consumer Protection Act is instrumental in providing
consumers with a prompt and efficient resolution of their grievances. The Act categorizes
consumer complaints into three tiers based on the value of goods or services involved. The
District Consumer Disputes Redressal Commission (DCDRC) handles cases with a value up to a
specified limit, while the State Consumer Disputes Redressal Commission (SCDRC) deals with
higher-value disputes. The National Consumer Disputes Redressal Commission (NCDRC) has
jurisdiction over cases exceeding a certain threshold or those involving complex legal issues.

Consumers can file complaints at the appropriate redressal forum, seeking compensation or
resolution for grievances related to defective products, deficient services, unfair trade practices,
or any other violation of their rights. The redressal process is designed to be consumer-friendly,
allowing individuals to represent themselves or seek legal assistance if needed.

The redressal mechanism operates within a stipulated time frame, ensuring timely resolution of
consumer complaints. The forums have the authority to summon evidence, conduct inquiries, and
pass orders for compensation or other relief. The emphasis on expeditious resolution and fair
compensation underscores the commitment of the Consumer Protection Act to protect and
promote consumer rights.

In addition to the formal redressal mechanism, the Consumer Protection Act encourages
alternative dispute resolution methods such as mediation and settlement. These mechanisms offer
consumers an alternative route for resolving disputes, promoting quicker resolutions without the
need for prolonged legal proceedings.

In conclusion, the Consumer Protection Act serves as a beacon for consumer rights, establishing
a comprehensive legal framework to address the complexities of modern commerce. The
redressal mechanism outlined in the Act stands as a robust and accessible avenue for consumers
to seek justice and hold businesses accountable for any infringements. By combining legislative
strength with efficient dispute resolution mechanisms, the Consumer Protection Act reinforces
the idea that consumer empowerment and protection are integral to a fair and thriving
marketplace.
 Consumer Redrassel System

The Act outlines key provisions concerning consumer definitions, various consumer protection
councils, and stipulates provisions related to consumer redressal agencies in India, along with
miscellaneous provisions. Notably, the focus on consumer redressal agencies is crucial in the
current Indian context. Awareness about these agencies is lacking, leading to inadequate
solutions for consumer issues. Chapter III details the establishment of redressal agencies, with
Section 9 specifying the creation of:
1. District forums in each district by State Governments.
2. State Commissions in every state by State Governments.
3. National Commission by the Central Government through notification.
1. District Forum
The District Forum, headed by a former or current District judge as President, includes two
other members aged at least thirty-five with degrees from recognized universities and knowledge
in economics, commerce, industry, public affairs, and administration. With jurisdiction limited to
cases where the value of goods or services and compensation is below Rs. Twenty lakhs, District
Forums address consumer complaints swiftly, especially considering the constraints faced by
individuals filing at higher forums due to their broader scope and the resulting backlog of cases.
2.State Forum
The State Commission, led by a former High Court judge as President, comprises at least two
members aged over thirty-five with specified qualifications. The Commission has jurisdiction
over cases where the value or compensation exceeds Rs. Twenty lakhs but is below Rs. One
crore. Additionally, it handles appeals against District Forums within the state and addresses
disputes arising from District Forum decisions involving jurisdictional issues or irregularities,
ensuring a balanced approach with a requirement that at least fifty percent of members possess a
judicial background.
3.National Forum
The National Commission is mandated to be presided over by an individual with a background
as a judge of the Supreme Court, nominated by the Central Government, with the crucial
condition that such an appointment requires prior consultation with the Chief Justice of India.
This nominee assumes the role of President, providing the commission with a strong judicial
foundation. Furthermore, the commission is constituted by a minimum of four executive
committee members, each aged at least thirty-five years, possessing graduate degrees from
recognized universities, and demonstrating specialization in the fields of commerce, economics,
and administration.

The jurisdictional scope of the National Commission extends to cases where the compensation
amount at stake surpasses Rs. One crore. It holds the authority to entertain appeals filed against
State Commissions, ensuring a hierarchical system for consumer dispute redressal. Moreover, the
National Commission is empowered to scrutinize pending disputes or cases that have been
adjudicated by State Commissions. This review process is essential to ascertain whether the State
Commissions have adhered to their legal jurisdiction or if their actions were marked by illegality
or significant procedural irregularities. This multifaceted role underscores the National
Commission’s pivotal position in upholding the integrity and legality of consumer dispute
resolution processes at a broader, national level.
 Limitation of the Consumer Redrassel System

While the consumer redressal system in India plays a crucial role in protecting consumers’ rights,
it has its limitations. Here are some detailed limitations:

1. Legal Complexity:
- The legal procedures and documentation involved in filing a consumer complaint can be
complex, deterring some consumers from seeking redressal. Many consumers may find it
challenging to navigate the legal intricacies without professional assistance.

2. Lack of Awareness:
- A significant limitation is the lack of awareness among consumers about their rights and the
existence of consumer redressal forums. Many consumers may not be aware of the forums, their
functions, or the process to file a complaint.

3. Time-Consuming Process:
- Consumer redressal procedures can be time-consuming. The legal process, including hearings
and appeals, may take a considerable amount of time, causing frustration and inconvenience for
consumers seeking prompt resolution.

4. Financial Constraints:
- The cost involved in pursuing a consumer complaint, including filing fees and legal expenses,
can be a barrier for some individuals. This financial constraint may prevent certain consumers
from accessing the redressal system.

5. Limited Jurisdiction:
- The jurisdiction of consumer forums is limited by the value of goods or services involved.
This limitation may result in certain cases being outside the purview of these forums, forcing
consumers to approach other legal avenues.

6. Ineffective Enforcement of Orders:

 - Even when a consumer forum issues an order in favor of the complainant, enforcing these
orders can be challenging. Some businesses may not comply with the orders promptly,
necessitating further legal action.

7. Overburdened Consumer Forums:

- Due to the increasing number of consumer complaints, many consumer forums, especially at
the district level, may be overburdened. This results in delays in scheduling hearings and
disposing of cases, further adding to the frustration of consumers.

8. Limited Outreach in Rural Areas

- Consumer redressal forums are often concentrated in urban areas, making it difficult for
consumers in rural areas to access these forums easily. Limited outreach in rural regions hampers
the effectiveness of the redressal system.

9. Complexity in International Transactions:

- Consumer complaints arising from international transactions can be particularly challenging
due to jurisdictional issues and the complexity of cross-border legal procedures.

10. Inadequate Consumer Education:

- The lack of comprehensive consumer education programs contributes to the challenges faced
by consumers in understanding their rights and navigating the redressal process effectively.

Addressing these limitations requires ongoing efforts to simplify legal procedures, enhance
consumer awareness, and streamline the redressal system to make it more accessible and
efficient for all consumers.
 Conclusion
Various significant judgments by the Supreme Court highlight a rise in consumer
protection cases compared to the past, underscoring heightened consumer
awareness. The Consumer Protection Act not only safeguards consumer rights but
also delineates specific duties for consumers. It emphasizes the consumer’s
responsibility to seek comprehensive information about the product’s
characteristics before making a purchase. The legislation expressly prohibits
malicious activities like black marketing and selling goods above the Maximum
Retail Price (MRP).

The traditional doctrine of ‘caveat venditor’ (let the seller beware) has evolved into
‘caveat emptor’ (let the purchaser beware), emphasizing consumer awareness
regarding product features, merits, and demerits, empowering them to protect their
rights. However, the escalating number of pending cases necessitates additional
redressal mechanisms and alternative dispute resolution methods in the realm of
consumer protection.

To address this, there is a growing need for amendments to the Consumer

Protection Act, incorporating dispute redressal mechanisms such as ‘Alternative
Dispute Resolution’ as a fundamental function of consumer rights redressal
agencies. This adaptation aims to enhance efficiency, expedite case resolution, and
further empower consumers in protecting their rights.
 Bibliography
Websites
1. Ipleaders.com
2. S and D legal assosiates
3. Lawyer club India
Statues and books
1. Consumer protection act 2019
2. Rk Banghia Law of torts And consumer protection act.
Journal
N/A
Research Paper
N/A