Authorities of

consumer protection
Prabhnoor Singh
(03414303817)
CONSUMER PROTECTION
ACT,1986
The Consumer Protection Act,1986 envisages the establishing of the following redressal agencies:-
1)District Forum
2)State Commission
3)National Commission

After the amendment in the Act in year 2003,the pecuniary jurisdiction of the above stated are as
following:-
1) District Forum- upto Rs 20 lakh
2) State Commission- above Rs 20 lakh & upto Rs 1 crore
3) National Commission- above Rs 1 crore
DISTRICT FORUM (sec 10)
Composition
It is composed of a President(District Judge) and 2 other members out
which 1 shall be woman.

The members should at least 35 years old and posses a bachelor’s

degree from a recognized university.

The members shall have at least an experience of 10 years in dealing

with problems relating to economic, law, accounts etc.
Methods of Appointment (sec 10(a))
Every member shall be appointed exclusively by the state government on the basis of
recommendation of the selection committee.
Disqualification of members (sec 10 (b))
Persons shall be disqualified for appointment if :
1) The person is convicted & sentenced to imprisonment for an offence which involves moral
turpitude.
2) Declared Insolvent.

3) Declared of unsound mind by a competent court.

4) Discharged dishonourably a government service or a government controlled body.
Term of office & salary (sec 10(2))

Max term is of 5 years or till the age of 65, whichever is earlier.

Reappointment can be made after the term of 5 years.

A member may tender his/her resignation to the state government, on

the resignation being accepted, the post shall become vacant.
Jurisdiction of District Forum (sec 11)
A) Pecuniary Jurisdiction (sec 11(1))
It has pecuniary jurisdiction amounting upto Rs 20 lakh.

B) Territorial Jurisdiction
A complaint shall be instituted in a district forum within the local
limits of :-
Where the complainant actually and voluntarily resides or carries out
the business
Where the cause of action, wholly or partially took place.
Manner of making a complaint (sec 12)
• Sec 12 has been substituted by consumer protection
(amendment),2002. There are some important changes-:

Who can file a complaint (sec 12(1))

A complaint regarding goods/service that is/was to be

delivered/agreed to may be filed with the district forum ny
any of the following :-
A) By the consumer themselves.
B) Any recognized consumer association.
C) The complaint may be filed by one or more consumers, where there are
numerous customers having the same interest.
D) The complaint may also be filed by the central or the state government.

Complaint to be accompanied by the required court fee (sec 12(2))

Every complaint shall need to be accompanied with the fee payable to
the court in such manner prescribed
• Admissibility of the complaint
On the receipt of the cases, the forum shall decide whether to proceed
with the case or it to be rejected on various technical grounds.

It shall be decided within 21 days of filing the case.

Each party would be given a chance to represent themselves.
After it has been accepted, it should be proceeded according to the
provisions in the act.
• Findings of the Forum
After conducting the proceeding, if the forum is satisfied that the
goods/services complained against are inadequate or defected
specified , it can order the concerned organisation to :-
A) Remove the defect specified(in case of numerous consumers).
B) To replace the defected goods with new good to the complainant.

C) To pay the compensation to the complainant.

• The Quorum

The proceedings are to be conducted by the President of the Forum &

atleast one of the members.

The order of the Forum is to be signed by its president & the members
who conducted the proceedings
Any person who is not satisfied by the finding of the Forum
may appeal to the State Commission(sec 15)
STATE COMMISSION (sec 16)
• Composition of the State Commission
A) A person who has been or is a judge in a High Court shall be
appointed by the State Government as the Commission’s President.
The procedure appointment and Disqualification of members
shall remain the same as the district forum.
The Salaries & term of office shall also remain the same as the
district forum
JURISDICTION OF STATE COMMISSION
A) Pecuniary Jurisdiction- Above Rs 20 lakh and below Rs 1 crore
B) To entertain appeals against the order of any district forum within
the state.
C) To call for the records & pass appropriate orders in any consumer
dispute which is pending before or has been decided by any district
forum within the state.
Transfer of cases (sec 17(a))
On an application of the complainant or on its own, the commission
may, at any stage, transfer the case from one district forum to another
if the interest of justice requires so.

Circuit Benches (sec17(b))

The commission ordinarily functions in the state capital, but it may
perform its functions at such other places as in when required with
state government in consultation with the commission notify official
gazette , from time to time.
NATIONAL COMMISSION
Composition
President: He/she should be or been a judge in the Supreme Court.
He/She shall be appointed by the central government. His/her
appointment shall not be made except after consultation with the Chief
Justice of India

The commission shall have 4 members, out of which one shall be a

woman.
Jurisdiction of National Commission (sec 21)
It can entertain complaints where the value of the goods or the
compensation is more than Rs 1 crore.
It can entertain appeals against the orders of any state commission.
It can call for the record 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 state
commission has exercised jurisdiction mot rested in I by law ,or has
failed to exercise a jurisdiction vested ,or has acted in the exercise of its
jurisdiction illegally or with material irregularity .
Power and Procedure applicable to national
commission (sec 22)
A) The national commission shall have the power to review any order
made by it, when there is an error apparent on the face of the
record.
B) The rules framed under for the display of complaints by the district
form shall ,with such modification as may be considered necessary
by the commission, be applicable to the disposal of dispues by the
national commission.
Power to set aside ex-parte orders (sec 22 a)
When an order is passed by the national commission ,ex-parte against
the opposite party or a complaint, as the case may be, the aggrieved
party may apply to the commission to set aside the said order n the
interest of justice.
Transfer of Cases (sec 22 b)
The commission may transfer the cases from 1 commission to another
on the application of the complainant or on its own motion in the
interest of justice.
Circuit Benches (sec 22c)
The national commission shall ordinarily function at New Delhi & shall
perform its functions at such other place as the central government may , in
consultation with national commission, notify in official gazette.
Appeals from National Commission to the Supreme
Courts (sec 23)
When the national commission is exercising original jurisdiction in respect of
complaints where the value of the goods exceeds 20 lakh. An appeal from
national commission to supreme court can be made within 30 days form the
date of order.
Finality of orders (sec 24)
Where no appeal has been filed against the order of the district forum ,
state commission or the national commission,the same shall be final.

Enforcement of orders of the District forum,the sate

commission or the national commission(sec 25)
Attachment of property and its sale
Where an interim order made under this Act is not complied with, the
concerned authority may order the property of respondent, not
complying with the order, be attached.
•Dismissal of Frivolous or Vexatious
Complaints (sec 26)
Where a complaint instituted before the district or state or national
commission is found to be frivolous or vexatious, it shall to be
recorded, in writing, dismiss the complaint & make an order that the
state complainant shall pay the respondent such cost, not exceeding Rs
10000,as may specific order