Business Law -MGT 511

The Consumer Protection Act, 1986

Dr. K Ashok Anand

 Introduction

• Its a unique legislations in India to offer protection to

consumers.
• The main objective of this Act is to provide better
protection to the consumers
• The Act intends to provide simple, speedy and
inexpensive redressal to the consumers’ grievances

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 Complainant

A complainant means any of the following and having made a complaint:

• A consumer; or
• Any voluntary consumer association registered under the Companies Act,
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 consumer, his legal heir or representative.

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 Complaint
Complaint’ means any allegation in writing made by a complainant with a view to
obtaining any relief under the Act, that:
• Any unfair trade practice or restrictive trade practice has been adopted by any
trader or service provider; and the complainant has suffered loss or damage.
• The goods bought by him or agreed to be bought by him suffer from defect(s).
• A trader or the service provider, as the case may be, has charged for the goods
or for the services mentioned in the complaint, a price in excess of the price
(a) fixed by or under any law for the time being in force;
• (b) displayed on the goods or any package containing such goods;
• (c) displayed on the price list exhibited by him by or under any law for the
time being in force;
• (d) agreed between the parties.

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 Consumer’ means any of the following persons:
• A person who 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 i.e., in respect of hire-purchase transactions.
• A person who hires or avails of any services for consideration which has been
paid or promised or partly paid and partly promised, or under any system of
deferred payment.
• Consumer dispute [Sec.2(1)(c)]- It means a dispute where the person
against whom a complaint has been made, denies or disputes the allegations
contained in the complaint
• Defect [Sec.2(1)(f)]- A ‘defect’ is defined to mean any fault, imperfection
or shortcoming in quality, quantity, potency, purity or standard which is
required to be maintained by or under any law for time being in force or under
any contract, express or implied, or as is claimed by the trader in any manner
whatsoever in relation to any goods.

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 Important Terms
• Goods: ‘Goods’ means every kind of movable property other than actionable
claims and money; and includes stock and shares, growing crops, grass and
things attached to or forming part of the land which are agreed to be severed
before sale or under the contract of sale [Sec.2(7) of the Sale of Goods Act,
1930].
• Manufacturer- ‘Manufacturer’ means any of the following persons:
(i) A person who makes or manufactures any goods or part thereof.
(ii) A person who does not make or manufacture any goods but assembles
parts thereof made or manufactured by others
(iii) A person who puts or causes to be put his own mark on any goods made
or manufactured by any other manufacturer.
• National Commission: ‘National Commission’ means the National
Consumer Disputes Redressal Commission established under clause (c) of
Sec.9.

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 Rights of Consumers

• Right to safety
• Right to be informed
• Right to choose
• Right to be heard,
• Right to seek redressal
• Right to consumer education

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 Three-tier quasi-judicial machinery at the District, State and
National levels.

• District level- there are to be District Fora as the redressal fora.

• State level- there are to be similar redressal commissions to be known as
State Commissions
• National level- there is a National Consumer Disputes Redressal
Commission to be known as National Commission.

• Who can file a complaint? (Discussed in Sec.12)

• Where to file a complaint? (Discussed in Sec. 11, 17 and 21)

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Three-tier Structure of consumer courts
 Nature and Scope of Remedies available to Consumers
How to file a complaint?

• The complainant or his authorised agent can present the complaint in

person.
• The complaint can also be sent by post to the appropriate
Forum/Commission.
• The complaint should be addressed to the President of the
Forum/Commission.

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 Procedure on admission of complaint (Sec.13)

• Procedure in respect of goods where the defect alleged requires no testing

or analysis
• Procedure in respect of goods where the defect alleged requires analysis
or testing

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 Remedies available to Consumers
Power of the district forum [Sec.13(4)]

• The summoning and enforcing the attendance of any defendant or witness

and examining the witness on oath;
• The discovery and production of any document or other material object
producible as evidence;
• The reception of evidence on affidavits;
• The requisitioning of the concerned analysis or test from the appropriate
laboratory or from any other relevant source;
• Issuing of any commission
• Any other matter which may be prescribed
• Reliefs available to consumers

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 Remedies available to Consumers
Time-frame for decisions of consumer courts
• Decided by the Redressal Forum within a period of 3 months from the
date of the notice received by the opposite party where complaint does
not require analysis or testing of the commodities and within 5 months

Appeal to state commission

• District Forum may prefer and appeal against such order to the State
Commission within a period of 30 days from the date of the order

Appeal to national commission

• Sec.19- Any person aggrieved by an order made by the State

Commission may prefer an appeal against such order to the National
Commission within a period of 30 days from the date of the order

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 Remedies available to Consumers
Appeal to the supreme court against the orders of national commission

• Sec.23- Any person, aggrieved by an order made by the National

Commission, may prefer an appeal against such order to the Supreme
Court, within a period of 30 days from the date of the order.

Limitation period (Sec.24A)

• Complaint should be filed within two years from the date on which the
cause of action has arisen.

Vacancies or defects in appointment not to invalidate order (Sec.29A)

• No Act or proceeding of the District Forum, the State Commission or the

National Commission shall be invalid by reason only of the existence of any
vacancy amongst its members or any defect in the constitution thereof.

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