Aims and objects of the CPA, 1986 Maki Making ng mone money y quic quickl kly y is a very very tem temptin pting g prop propos osit itio ion. n. Busi Busine ness sses es,, com compani panies es,, shopkeepers, retailers, and sellers are all interested in maximizing their profits. In doing so, very often they neglect the best interests of the buyer. Many times, a buy gets a defective product, or a product that fails to perform perfor m as promised. Besides losing money put in purchasing a product, sometimes, due to defects in the product, the buyer is injured as ell. In all such cases, there is a violation of a legal right of the buyer and he is entitled to sue the seller. Before enactment of the !onsumer "rotection #ct, $%&', filing a civil suit for damages as as the the only only opti option on avai availa labl blee to an aggri aggriev eved ed buyer buyer.. (oe (oeve ver, r, such such a suit suit is very very expe expens nsiv ivee and and time time cons consum umin ing, g, beca becaus usee of hic hich, h, buye buyers rs ere ere not not able able to use use this this mechanism for relatively smaller amounts. ) his gave a field day to the traders because making substandard products or not delivering on promises as a cheap option to make quick money, after all, very fe buyers ould go to court. # common man as completely helpless because of no control and penalty over unscrupulous sellers. In this background, the !"# $%&' gave poer in the hands of the buyer by alloing, an easier and cheaper ay to redress their grievances, thereby holding the sellers accountable for their actions more often. It provides redress to a consumer hen the purchased product is defective or hen there is a deficiency in service. )he folloing are aims and objectives of this act * $. )he )he most most impor importa tant nt object objectiv ivee of this this act act is to prov provid idee a fast fast and chea cheap p ay ay for for consumers to hold the sellers accountable for their products or services. +. ust ustic icee to con consu sume mers. rs. -. "rotection "rotection of consumers consumers from fraudsters fraudsters or companies companies selling selling substandar substandard d products and services. . "enalty "enalty to sellers sellers for for substandard substandard product product or service. service. /. !heck !heck on seller sellerss and servic servicee provide providers. rs. Besides the above objectives, 0ection ' of !"# $%&' also provides certain rights as objectives to the consumers. )hese are * $. 1igh 1ightt to be prot protec ecte ted d agai agains nstt good goodss that that are are haza hazardo rdous us or dang danger erou ouss to life life and and property. +. 1ight to be informe informed d about the quality, quality, quantity, quantity, potency, potency, purity, purity, standard standard and price price or a product and service. -. 1ight 1ight to compet competiti itive ve pricin pricing. g. . 1igh 1ightt to be hear heard d and and to be assu assure red d that that cons consum umer er inte intere rest st ill ill rece receiv ivee due due consideration at appropriate forum. /. 1ight to redressal redressal against against unfair unfair trade practices practices and exploitati exploitation on of consumers. consumers.
'. 1ight 1ight to to consu consumer mer educat education ion.. 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. decision. It does not depend on !"! and the cases can be finalized finalized completely completely under this Ansal Proper Propertie tiess vs Chandr Chandra a Bhan Bhan Kohli Kohli 1991, !onsum act. In fact, as held in Ansal !onsumer er 2isputes 1edressal #gencies provide complete machinery for justice including a final appeal to the 0upreme !ourt and so are outside the scope of (igh !ourts and (!s can3t entertain rit petitions against their judgments.
4nder Section 9 of this act, three agencies are established to hear consumer complaints * 1. # !onsumer !onsumer 2isput 2isputes es 1edressal 1edressal 5orum in each district district 65or 65or amount amountss up to +7 8akhs9 . # !onsumer 2isputes 1edressal !ommission in each state. 65or amounts from +7 8akhs to $ !rore9 !. # :ational !onsumer 2isputes 1edressal !ommission in the center. 65or amounts above $ crore9
"istrict #or$m Composition %Section 1&'
$. ;ach 2istrict 5orum shall consist of * a. # person person ho is, or ho ho has been or is qualif qualified ied to be, a 2istri 2istrict ct udge, udge, ho shall shall be its "resident b. to other members, one of hom shall be a oman, ho shall have the folloing qualifications, namely * $. be not less less than than thirt thirty*f y*five ive years years of age, age, +. posses a bachelor3s bachelor3s degree degree from from a recogniz recognized ed universit university, y, -. be persons persons of of ability, ability, integrity integrity and standing standing,, . and have have adequate adequate knoled knoledge ge and experie experience nce of at least ten years years in dealin dealing g ith problems relating to economics, la, commerce, accountancy, industry, public affairs, or administration $*#. ;very appointment appointment under sub*section sub*section 6$9 shall be made by the 0tate
+. ;very member of the 2istrict 5orum shall hold office for a term of five years or up to the age of sixty*five years> hichever is earlier=
-. )he salary or honorarium and other alloances payable to, and the other terms and conditions of service of the members of the 2istrict 5orum shall be such as may be prescribed by the 0tate
($risdiction %Section 11'
$. Pec$niar) ($risdiction * 0ubject to other provisions of this #ct, the 2istrict 5orum shall have jurisdiction to entertain complaints here the value of the goods or services and the !ompensation if any, claimed does not exceed rupees tenty lakhs.
+. *erritorial ($risdiction + # complaint shall be instituted in a 2istrict 5orum ithin the local limits of hose jurisdiction, * $. )he opposite opposite party party or each each of the opposite opposite parties parties,, here there there are more more than one, at the time of the institution of the complaint, actually and voluntarily resides resides or carries on business or has a branch office, or? personally personally orks for gain or +. #ny of the opposi opposite te parties parties here here there there are more then then one, at the the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally orks for gain, provided that in such case either the permission of the 2istrict 5orum is given, or the opposite parties ho do not reside, or carry on business or have a branch office, or personally orks for gain, as the case may be, acquiesce in such institution@ or -. )he cause cause of action, action, holly holly or in part arises. arises. 5or a complaint to lie in a district forum, at least a part of the transaction of the actual business must have occurred in that district. In ational -ns$rance Co vs Sonic S$rical &&!, a fire accident took place in #mbala and a part of the claim as partly processed in !handigarh. It as held that merely processing of claim in one place does not form a ground to file a case in that district.
#$nctionin of a "istrict #or$m
/ho can file a complaint %Section 1'
)he folloing can file a complaint * $. )he consum consumer er to hom the the goods goods or services services have have been sold sold or are agreed agreed to be sold.
+. #ny recogni recognized zed consum consumer er associat association ion even if the consum consumer er is not a member member of the asso associ ciat atio ion. n. 1eco 1ecogni gnize zed d mean meanss any any volu volunt ntar ary y asso associ ciat atio ion n regi regist stere ered d unde underr !ompanies #ct $%/' or any other la for the time being in force. -. Ane Ane or more more cons consum umers ers,, her heree there there are nume numerou rouss consu consume mers rs all all havin having g same same interest, ith the permission of district forum. . )he stat statee or centr central al gover governme nment. nt. )he complaint must be accompanied ith such amount of fee and payable in such manner as may be prescribed. )he )he foru forum m may may acce accept pt or reje reject ct the the comp compla lain int. t. )he )he comp compla lain inan antt must must be give given n an opportunity to be heard before rejection. )he acceptance or rejection ill be decided in +$ days.
Provisions for Appeal %Section 10'
5rom 2istrict 5orum to 0tate !ommission ithin ithin a period of -7 days from the date of the order %Section 10' 5rom 0tate !ommission to :ational !ommission ithin a period of -7 days from the date %Section 19' of the order %Section
5rom :ational !ommission to 0upreme !ourt ithin a period of thirty days from the date %Section !' of the order %Section
/ho is Cons$mer
#s per 0ection + 6$9 6d9 of !"# $%&' * !onsumer means any person ho, *
6i9 Buys any goods for a consideration hich has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person ho buys such goods for consideration paid or promised or partly paid or partly promised or under any system sy stem of deferred payment hen such use is made ith the approval of such person but does not include a person ho obtains such goods for resale or for any commercial purpose@ or
6ii9 (ires or avails of any services for a consideration hich has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person ho hires or avails of the services
for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, hen such services are availed of ith the approval of the first mentioned person but does not include a person o avails of such services for any commercial purpose@ Base Based d on this this de defi fini niti tion on,, the foll follo2 o2in in are esse essenti ntial al elem elemen ents ts of a Cons Cons$m $mer er33 1. B$)s oods or 4ires Services + "hysical "hysical products products such as !ar, )C, 4tensils 4tensils etc as ell as intangible services ranging from (air !utting 0aloon to Banking etc. are both valid purchases for being a consumer. )he scope of services is quite ide and more and more things are coming into its ambit sloly. 5or example, in the landmark case of -ndian 5edical Association vs P Shantha and others 1990 , 0! held that patients treated by a medical professional is also a consumer of medical services and is covered by !"#.
. #or consideration * )o be a consumer, paying consideration is a must. (oever, consideration may be an immediate payment or a promise of future payment in full or in part. It can also be any arrangement of deferred payments. 5urther, unlike in 0ale of * as compensation.
!. #or personal se * )he goods or service must be bought for personal use. Ariginally, a person ho bought a product or a service for commercial use as not considered a consumer but after the amendment in $%%-, use of such goods for making a livelihood is accepted. )hus, a self employed person ho ho buys a "hotocopy machine machine for his on shop is a consumer. (oever, goods must not be bought for resale.
In Anant aj Aencies vs *:;C< 1996 , a company bought a car for personal use of a director of the company. It as held that since the car as bought for personal use and not for commercial use or for making a profit on a large scale, the company as a consumer.
In as$ndhara 7 Bl$estar Co. vs B.K =o)al %1996' CP( 69 %C' , a ater cooler as purchased and it as installed at a bus stand for the use of general public free of charge. It as held that since the ater cooler as bought for use of general public free of charge and not for commercial commercial use or for making making a profit profit on a large scale, the complainant complainant as a consumer.
>. se b) the p$rchaser or an) bod) else + It is not necessary that only the purchaser of the goods or services be the user. #nybody ho uses the goods or services ith due permission of the purchaser, is also a consumer. )hus, in a landmark case of Sprin 5eado2s 4ospital vs 4arjot Ahl$2alia A- 1998, SC held that the parents of the child ho as treated by the hospital ere hirers of the service hile the child as the beneficiary and thus both ere consumers.
"eficienc) in service Service
#s per Section %1' %o' 0ervices means service of any description hich is made available to potential users and includes, but not limited to, the provision of facilities in connection connection ith banking, banking, 5inancing 5inancing insurance, insurance, transport, transport, processing, supply of electrical electrical or other energy, board or lodging or both, housing construction entertainment, amusement or the purveying of nes or other information, but does not include the rendering of any service free of charge or under a contract of personal service@
Based on this definition, the scope of services is quite ide. It ill not be an exaggeration to says that any thing for hich a customer pays and that is not a physical product is a service. !inema halls, (ealth clubs, 4niversity, !ollege, are all service providers.
In the landmark case of -ndian 5edical Association vs P Shantha and others 1990 , 0! held that patients treated by a medical professional is also a consumer of medical services and is covered by !"#.
In nion of -ndia vs 5rs S Pra?ash 1991 , )elephone facility as held as a service and the telephone rental paid by the consumer as the consideration for the service.
)he service must be a paid service. 5ree or non*profit services do not fall under this category and claims cannot be made regarding such services under the !"#. Srinivas as 5$rth) 5$rth) vs Chairm Chairman, an, Banal Banalore ore "evelo "evelopm pment ent A$thor A$thorit) it) 1991 , the In A Sriniv question before the court as hether a tax payer is a consumer or not. # person, ho paid house tax, as bitten by a stray dog and he sued Bangalore 2evelopment #uthority for not taking care of the menace of stray dogs. It as held that there as no quid pro quo
beteen the tax and the services rendered by B2#. )he removal of stray dogs as a voluntary action of B2# and as done free of cost. )hus, the complainant as not a consumer and removal of dogs as not a service under this act.
ust like a defect, hich renders a product not as useful as promised, there can be a deficiency deficiency in service, hich render render a service service not as useful as promised at the time of sale. !"# $%&' allos consumers of services to take action against service providers for compensating for the deficiency in the promised service. "eficienc) section %1'%', 2efic #s per section 2eficien iency cy means means any fault, fault, imper imperfect fection ion,, shortc shortcom oming ing or inadequacy in the quality, nature and manner of performance hich is required to be maintained by or under any la for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherise in relation to any service.
5ahanaar ar *eleph *elephone one iam iam vs inod inod Kar?ar Kar?aree 1991 1991 , hen a complaint )hus, in 5ahana ith the telephone dept. as pending for more than six months, it as held to be a deficiency in service.
-ndian Airlines vs S Sinh 199 , a metallic In -ndian metallic ire as present in the food given to a traveler traveler because of hich his gums ere hurt. (e as aarded aarded +777 1s as compensation compensation for deficiency in service.
