CONSUMER PROTECTION ACT 2019

The moment a person comes into this would, he starts consuming. He needs
clothes, milk, oil, soap, water, and many more things and these needs keep taking
one form or the other all along his life.
Thus we all are consumers in the literal sense of the term.
A consumer is a user of goods and services; therefore, every producer is also a
consumer
Consumer is the real deciding factor for all economic activities. It is now
universally accepted that the extent of consumer protection is a true indicator of
the level of progress in a nation.
When we approach the market as a consumer, we expect value for money, i.e.,
right quality, right quantity, right prices, information about the mode of use, etc.
But there may be instances where a consumer is harassed or cheated.

OBJECT OF THE ACT

An Act to provide for protection of the interests of consumers and for the said
purpose,
☛ to establish authorities for timely and effective administration and settlement
of consumers' disputes and for matters connected therewith or incidental thereto.
Consumer Protection Act, 2019 provides for simple, quick and easy remedy to
consumers under a three-tier quasi-judicial redressed agency at the District, State
and National levels.
It provides for better protection of the interests of consumers and
For that purpose, to make provision for the establishment of consumer councils
and other
authorities for the settlement of consumer’s disputes and for matters connected
therewith.
The Act has provided a machinery whereby consumers can file their
complaints which will be
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entertained by the Consumer Forums with special powers so that action can be
taken against
erring suppliers and the possible compensation may be awarded to consumer for
the hardships he
has undergone.
☛ The Act extends to the whole of India and applies to all goods and services
unless otherwise notified by the Central Government.
The protection is meant for the person who fits in the definition of ‘consumer’
given by the Act.
Now we understand that the Consumer Protection Act provides means to
protect consumers from
getting cheated or harassed by suppliers.
No court fee is required to be paid to these forums and there is no need to
engage a lawyer to present the case.

From Caveat Emptor to Caveat Venditor

The evolution of this principle to the modern rule of Caveat Venditor took place
through judicial discourse and with the realisation that the former was
inconsistent with the law of equity. Caveat Venditor simply means “let the seller
beware”, which imposes a greater responsibility on the sellers themselves for the
goods and services that they sell. According to this rule, there is an implied
warranty existing in each product and the buyer need not perform due diligence
to check the quality of such products. The onus is now on the sellers to make sure
the buyer makes a reasonably informed choice and to compensate for defective
products.

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Important Definitions

COMPLAINANT Section – 2 (5)

means —
(i) a consumer; or
(ii) any voluntary consumer association registered under any law for the time
being in force; or
(iii) the Central Government or any State Government; or
(iv) the Central Authority; or
(v) one or more consumers, where there are numerous consumers having the same
interest; or
(vi) in case of death of a consumer, his legal heir or legal representative; or
(vii) in case of a consumer being a minor, his parent or legal guardian;
◉ An association of persons, to have locus standi (right to be heard) as consumer,
it is necessary that all the individual persons forming the association must be
consumers having purchased the same goods/hired the same service from the
same party i.e. they should have a common cause of action.
◉ In case the affected consumer is unable to file the complaint due to ignorance,
illiteracy or poverty, any recognised consumer association may file the complaint.
The rule of ‘privity of contract' or locus standi which permits only the aggrieved
party to take action has very rightly been set aside in the spirit of public interest
litigation.

COMPLAINT Section – 2 (6)

means any allegation in writing, made by a complainant for obtaining any relief
provided by or under this Act, that —

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(i) an unfair contract or unfair trade practice or a restrictive trade practice has
been adopted by any trader or service provider;
e.g. A sold a six months old car to B representing it to be a new one.
(ii) the goods bought by him or agreed to be bought by him suffer from one or
more defects;
e.g. A bought a computer from B. It was not working properly since day one.
(iii) the services hired or availed of or agreed to be hired or availed of by him
suffer from any deficiency;
e.g. A hired services of an advocate to defend himself against his landlord. The
advocate did not appear every time the case was scheduled.
(iv) a trader or a 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; or
(b) displayed on the goods or any package containing such goods; or
(c) displayed on the price list exhibited by him by or under any law for the time
being in force; or
(d) agreed between the parties;
e.g. A bought a sack of cement from B who charged him Rs. 100 over and
above the reserve price of the cement declared by the Government. Here A can
make a complaint against B.
(v) the goods, which are hazardous to life and safety when used, are being offered
for sale to the public
—
(a) in contravention of standards relating to safety of such goods as required to
be complied with, by or under any law for the time being in force;
(b) where the trader knows that the goods so offered are unsafe to the public;
e.g. A bought a tin of disinfectant powder. It had lid which was to be opened
in a specific manner. Trader did not inform. A about this. While opening the lid
in ordinary way, some powder flew in the eyes of A which affected his vision.

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(vi) the services which are hazardous or likely to be hazardous to life and safety
of the public when used, are being offered by a person who provides any service
and who knows it to be injurious to life and safety;
(vii) a claim for product liability action lies against the product manufacturer,
product seller or product service provider, as the case may be;

CONSUMER Section – 2 (7)

means any person who —
(i) 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 and
☛ includes any user of such goods other than the person who buys such goods
for consideration paid or promised or partly paid or partly promised, or under any
system of deferred payment, when such use is made with the approval of such
person,
but does not include a person who obtains such goods for resale or for any
commercial purpose;
or
(ii) hires or avails of any SERVICE for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment and
☛ includes any beneficiary of such service other than the person who hires or
avails of the services for consideration paid or promised, or partly paid and partly
promised, or under any system of deferred payment, when such services are
availed of with the approval of the first mentioned person,
but does not include a person who avails of such service for any commercial
purpose.
Explanation. —For the purposes of this clause, —

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(a) the expression "commercial purpose" does not include use by a person of
goods bought and used by him exclusively for the purpose of earning his
livelihood, by means of self-employment;
(b) the expressions "buys any goods" and "hires or avails any services" includes
offline or online transactions through electronic means or by teleshopping or
direct selling or multi-level marketing.

PRODUCT LIABILITY Section-2(34)

◉ means the responsibility of a product manufacturer or product seller, of any
product or service, to compensate for any harm caused to a consumer by such
defective product manufactured or sold or by deficiency in services relating
thereto.

UNFAIR TRADE PRACTICE Section-2(47)

◉ Unfair Trade Practice means a trade practice which, for the purpose of
promoting the sale, use or supply of any goods or for the provision of any service,
adopts any unfair method or unfair or deceptive practice including any of the
following practices, namely : —
(i) MAKING ANY STATEMENT,
whether orally or in writing or by visible representation including by means of
electronic record, which —
(a) falsely represents that the goods are of a particular standard, quality, quantity,
grade, composition, style or model;
(b) falsely represents that the services are of a particular standard, quality or
grade;
(c) falsely represents any re-built, second-hand, renovated, reconditioned or old
goods as new goods;

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(d) represents that the goods or services have sponsorship, approval, performance,
characteristics, accessories, uses or benefits which such goods or services do not
have;
(e) represents that the seller or the supplier has a sponsorship or approval or
affiliation which such seller or supplier does not have;
(f) makes a false or misleading representation concerning the need for, or the
usefulness of, any goods or services;
(g) gives to the public any warranty or guarantee of the performance, efficacy or
length of life of a product or of any goods that is not based on an adequate or
proper test thereof:
Provided that where a defence is raised to the effect that such warranty or
guarantee is based on adequate or proper test, the burden of proof of such defence
shall lie on the person raising such defence;
(h) makes to the public a representation in a form that purports to be —
(A) a warranty or guarantee of a product or of any goods or services; or
(B) a promise to replace, maintain or repair an article or any part thereof or to
repeat or continue a service until it has achieved a specified result, if such
purported warranty or guarantee or promise is materially misleading or if there is
no reasonable prospect that such warranty, guarantee or promise will be carried
out;
(i) materially misleads the public concerning the price at which a product or like
products or goods or services, have been or are, ordinarily sold or provided, and,
for this purpose, a representation as to price shall be deemed to refer to the price
at which the product or goods or services has or have been sold by sellers or
provided by suppliers generally in the relevant market unless it is clearly specified
to be the price at which the product has been sold or services have been provided
by the person by whom or on whose behalf the representation is made;
(j) gives false or misleading facts disparaging the goods, services or trade of
another person.

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Explanation.—For the purposes of this sub-clause, a statement that is,—

(A) expressed on an article offered or displayed for sale, or on its wrapper or
container; or
(B) expressed on anything attached to, inserted in, or accompanying, an article
offered or displayed for sale, or on anything on which the article is mounted for
display or sale; or
(C) contained in or on anything that is sold, sent, delivered, transmitted or in any
other manner whatsoever made available to a member of the public, shall be
deemed to be a statement made to the public by, and only by, the person who had
caused the statement to be so expressed, made or contained;
(ii) PERMITTING THE PUBLICATION OF ANY ADVERTISEMENT,
whether in any newspaper or otherwise, including by way of electronic record,
for the sale or supply at a bargain price of goods or services that are not intended
to be offered for sale or supply at the bargain price, or for a period that is, and in
quantities that are, reasonable, having regard to the nature of the market in which
the business is carried on, the nature and size of business, and the nature of the
advertisement.
Explanation. —
For the purpose of this sub-clause, "bargain price" means, —
(A) a price that is stated in any advertisement to be a bargain price, by reference
to an ordinary price or otherwise; or
(B) a price that a person who reads, hears or sees the advertisement, would
reasonably understand to be a bargain price having regard to the prices at which
the product advertised or like products are ordinarily sold;
(iii) PERMITTING —
(a) the offering of gifts, prizes or other items with the intention of not providing
them as offered or creating impression that something is being given or offered
free of charge when it is fully or partly covered by the amount charged, in the
transaction as a whole;

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(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of
promoting, directly or indirectly, the sale, use or supply of any product or any
business interest, except such contest, lottery, game of chance or skill as may be
prescribed;
(c) withholding from the participants of any scheme offering gifts, prizes or other
items free of charge on its closure, the information about final results of the
scheme.
Explanation. — For the purpose of this sub-clause, the participants of a scheme
shall be deemed to have been informed of the final results of the scheme where
such results are within a reasonable time published, prominently in the same
newspaper in which the scheme was originally advertised;
(iv) PERMITTING THE SALE OR SUPPLY of goods intended to be used, or
are of a kind likely to be used by consumers, knowing or having reason to believe
that the goods do not comply with the standards prescribed by the competent
authority relating to performance, composition, contents, design, constructions,
finishing or packaging as are necessary to prevent or reduce the risk of injury to
the person using the goods;
(v) PERMITTING THE HOARDING OR DESTRUCTION OF GOODS, OR
REFUSAL TO SELL
the goods or to make them available for sale or to provide any service, if such
hoarding or destruction or refusal raises or tends to raise or is intended to raise,
the cost of those or other similar goods or services;
(vi) MANUFACTURING OF SPURIOUS GOODS or offering such goods for
sale or adopting deceptive practices in the provision of services;
(vii) NOT ISSUING BILL OR CASH MEMO OR RECEIPT for the goods sold
or services rendered in such manner as may be prescribed;
(viii) REFUSING, AFTER SELLING goods or rendering services, to take back
or withdraw defective goods or to withdraw or discontinue deficient services and

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to refund the consideration thereof, if paid, within the period stipulated in the bill
or cash memo or receipt or in the absence of such stipulation,
within a period of thirty days;
(ix) DISCLOSING TO OTHER PERSON ANY PERSONAL INFORMATION
Given in confidence by the consumer unless such disclosure is made in
accordance with the provisions of any law for the time being in force.

CONSUMER PROTECTION COUNCIL

CENTRAL CONSUMER PROTECTION COUNCIL

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Section - 3
The CENTRAL GOVERNMENT empowers to establish the Central Consumer
Protection Council to be
known as the Central Council.
The Central Council shall
☛ be an advisory council and

☛ consist of the Minister-in-charge of the Department of Consumer Affairs in the

Central Government, who shall be the Chairperson; and
☛ such number of other official or non-official members representing such
interests as may be prescribed.
Section - 4
The Central Council shall meet as and when necessary, but at least one meeting
of the Council shall be held every year.
The Central Council shall meet at such time and place as the Chairperson may
think fit and shall observe such procedure in regard to the transaction of its
business as may be prescribed.
Section - 5
The objects of the Central Council shall be to render advice on promotion and
protection of the consumers' rights under the Act.

STATE CONSUMER PROTECTION COUNCILS

Section - 6

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Every STATE GOVERNMENT empowers to establish a State Consumer

Protection Council for such State to be known as the State Council.
The State Council
☛ shall be an advisory council and consist of the Minister-in-charge of Consumer
Affairs in the State Government who shall be the Chairperson;
☛ such number of other official or non-official members representing such
interests as may be prescribed and such number of other official or non-official
members, not exceeding 10, as may be nominated by the Central Government.
☛ The State Council shall meet as and when necessary but not less than 2
meetings shall be held every year.
☛ The State Council shall meet at such time and place as the Chairperson may
think fit and shall observe such procedure in regard to the transaction of its
business, as may be prescribed.
Section - 7
The objects of every State Council shall be to render advice on promotion and
protection of consumer rights under the Act within the State.

DISTRICT CONSUMER PROTECTION COUNCIL

Section - 8
The State Government empowers to establish for every District with effect from
such date as it may specify in such notification, a District Consumer Protection
Council to be known as the District Council.

The District Council

☛ shall be an advisory council and consist the Collector of the district (by
whatever name called), who shall be the Chairperson; and

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☛ such number of other official and non-official members representing such

interests as may be prescribed.
☛ The District Council shall meet as and when necessary but not less than 2
meetings shall be held every year.
☛ The District Council shall meet at such time and place within the district as the
Chairperson may think fit and shall observe such procedure in regard to the
transaction of its business as may be prescribed.
Section - 9
The objects of every District Council shall be to render advice on promotion and
protection of consumer rights under the Act within the district.

CENTRAL CONSUMER PROTECTION AUTHORITY

Section - 10
(1) The Central Government shall, by notification, establish with effect from such
date as it may specify in that notification,
a Central Consumer Protection Authority to be known as the Central Authority
to regulate matters relating to violation of rights of consumers, unfair trade
practices and false or misleading advertisements which are prejudicial to the
interests of public and consumers and
to promote, protect and enforce the rights of consumers as a class.
(2) The Central Authority shall consist of
Chief Commissioner and
such number of other Commissioners as may be prescribed,
to be appointed by the Central Government to exercise the powers and discharge
the functions under this Act.

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(3) The headquarters of the Central Authority shall be at such place in the
National Capital Region of Delhi, and it shall have regional and other offices in
any other place in India as the Central Government may decide.

QUALIFICATIONS, METHOD OF RECRUITMENT, ETC., OF CHIEF

COMMISSIONER AND COMMISSIONERS

Section - 11
The Central Government may, by notification, make rules to provide for the
qualifications for appointment, method of recruitment, procedure for
appointment, term of office, salaries and allowances, resignation, removal and
other terms and conditions of the service of the Chief Commissioner and
Commissioners of the Central Authority.

VACANCY, ETC., NOT TO INVALIDATE PROCEEDINGS OF

CENTRAL AUTHORITY
Section - 12
No act or proceeding of the Central Authority shall be invalid merely by reason
of —
(a) any vacancy in, or any defect in the constitution of, the Central Authority; or
(b) any defect in the appointment of a person acting as the Chief Commissioner
or as a Commissioner;
or
(c) any irregularity in the procedure of the Central Authority not affecting the
merits of the case

APPOINTMENT OF OFFICERS, EXPERTS, PROFESSIONALS AND

OTHER EMPLOYEES OF CENTRAL AUTHORITY

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Section 13 of the Act deals with Appointment of officers, experts, professionals

and other employees of Central Authority. It states that :
(1) The Central Government shall provide the Central Authority such number of
officers and other employees as it considers necessary for the efficient
performance of its functions under this Act.
(2) The salaries and allowances payable to, and the other terms and conditions of
service of, the officers and other employees of the Central Authority appointed
under this Act shall be such as may be prescribed.
(3) The Central Authority may engage, in accordance with the procedure
specified by regulations, such number of experts and professionals of integrity
and ability,
who have special knowledge and experience in the areas of consumer rights
and welfare, consumer policy, law, medicine, food safety, health, engineering,
product safety, commerce, economics, public affairs or administration, as it
deems necessary to assist it in the discharge of its functions under this Act.

Procedure Of Central Authority

Section 14
(1) The Central Authority shall regulate the procedure for transaction of its
business and allocation of its business amongst the Chief Commissioner and
Commissioners as may be specified by regulations.
(2) The Chief Commissioner shall have the powers of general superintendence,
direction and control in respect of all administrative matters of the Central
Authority:

Provided that the Chief Commissioner may delegate such of his powers relating
to administrative matters of the Central Authority, as he may think fit, to any

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Commissioner (including Commissioner of a regional office) or any other officer

of the Central Authority.

Power of District Collector Section

District Collector (by whatever name called) may, on a complaint or on a

reference made to him by the Central Authority or the Commissioner of a regional
office,
☛ inquire into or investigate complaints regarding violation of rights of
consumers as a class, on
matters relating to violations of consumer rights, unfair trade practices and false
or misleading
advertisements, within his jurisdiction and submit his report to the Central
Authority or to the Commissioner of a regional office, as the case may be.

COMPLAINTS TO AUTHORITIES

Section 17
A complaint relating to
violation of consumer rights or

unfair trade practices or

false or misleading advertisements

☛ which are prejudicial to the interests of consumers as a class,

may be forwarded either in writing or in electronic mode, to any one of the
authorities, namely, the
District Collector or the Commissioner of regional office or the Central
Authority.

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POWERS AND FUNCTIONS OF CENTRAL AUTHORITY

Section 18
(1) The Central Authority shall —
(a) protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rights under this Act;
(b) prevent unfair trade practices and ensure that no person engages himself in
unfair trade practices;
(c) ensure that no false or misleading advertisement is made of any goods or
services which contravenes the provisions of this Act or the rules or regulations
made thereunder;
(d) ensure that no person takes part in the publication of any advertisement which
is false or misleading.
(2) Without prejudice to the generality of the provisions contained in sub-section
(1), the Central Authority may, for any of the purposes aforesaid, —
(a) inquire or cause an inquiry or investigation to be made into violations of
consumer rights or unfair trade practices, either suo motu or on a complaint
received or on the directions from the Central Government;
(b) file complaints before the District Commission, the State Commission or the
National Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State
Commission or the National Commission, as the case may be, in respect of any
allegation of violation of consumer rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting enjoyment of,
consumer rights, including safeguards provided for the protection of consumers
under any other law for the time being in force and recommend appropriate
remedial measures for their effective implementation;
(e) recommend adoption of international covenants and best international
practices on consumer rights to ensure effective enforcement of consumer rights;

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(f) undertake and promote research in the field of consumer rights;

(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisations and other institutions working in
the field of consumer rights to co-operate and work with consumer protection
agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as
may be necessary, to prevent unfair trade practices and to protect consumers'
interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or
unsafe goods or services;
(k) advise the Ministries and Departments of the Central and State Governments
on consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect
consumers' interest.

POWER OF CENTRAL AUTHORITY TO REFER MATTER

FOR INVESTIGATION OR TO OTHER REGULATOR.

Section 19
The Central Authority may, after receiving any information or complaint or
directions from the Central Government or of its own motion,
☛ conduct or cause to be conducted a preliminary inquiry as to whether there
exists prima facie case of violation of consumer rights or any unfair trade practice
or any false or misleading
advertisement, by any person, which is prejudicial to the public interest or to the
interests of consumers and
☛ if it is satisfied that there exists a prima facie case, it shall cause investigation
to be made by the Director General or by the District Collector.

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POWER OF CENTRAL AUTHORITY TO RECALL GOODS ETC

Section 20
Where the Central Authority is satisfied on the basis of investigation that there is
sufficient evidence to show violation of consumer rights or unfair trade practice
by a person, it may pass such order as may be necessary, including —
(a) recalling of goods or withdrawal of services which are dangerous, hazardous
or unsafe;
(b) reimbursement of the prices of goods or services so recalled to purchasers of
such goods or services; and
(c) discontinuation of practices which are unfair and prejudicial to consumers'
interest:
Provided that the Central Authority shall give the person an opportunity of being
heard before passing an order under this section.

POWER OF CENTRAL AUTHORITY TO ISSUE DIRECTIONS AND

PENALTIES

AGAINST FALSE OR MISLEADING ADVERTISEMENTS

Section 21
(1) Where the Central Authority is satisfied after investigation that any
advertisement is false or
misleading and is prejudicial to the interest of any consumer or is in contravention
of consumer rights, it may, by order, issue directions
☛ to the concerned trader or manufacturer or endorser or advertiser or publisher,
as the case may be, to discontinue such advertisement or to modify the same in
such manner and within such time as may be specified in that order.
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(2) Notwithstanding the order passed under sub-section (1), if the Central
Authority is of the opinion that it is necessary to impose a penalty in respect of
such false or misleading advertisement, by a manufacturer or an endorser, it may,
by order, impose on manufacturer or endorser a penalty which may extend to 10
lakh rupees:
Provided that the Central Authority may, for every subsequent contravention by
a manufacturer or endorser, impose a penalty, which may extend to 50 lakh
rupees.
(3) Notwithstanding any order under sub-sections (1) and (2), where the Central
Authority deems it necessary, it may, by order, prohibit the endorser of a false or
misleading advertisement from making endorsement of any product or service for
a period which may extend to 1 year.
Provided that the Central Authority may, for every subsequent contravention,
prohibit such endorser from making endorsement in respect of any product or
service for a period which may extend to 3 years.
(4) Where the Central Authority is satisfied after investigation that any person is
found to publish, or is a party to the publication of, a misleading advertisement,
it may impose on such person a penalty
which may extend to 10 lakh rupees.
(5) No endorser shall be liable to a penalty under sub-sections (2) and (3) if he
has exercised due diligence to verify the veracity of the claims made in the
advertisement regarding the product or
service being endorsed by him.
(6) No person shall be liable to such penalty if he proves that he had published or
arranged for the publication of such advertisement in the ordinary course of his
business:
Provided that no such defence shall be available to such person if he had previous
knowledge of the order passed by the Central Authority for withdrawal or
modification of such advertisement.

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(7) While determining the penalty under this section, regard shall be had to the
following, namely:—
(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely affected by such
offence; and
(d) the gross revenue from the sales effected by virtue of such offence.
(8) The Central Authority shall give the person an opportunity of being heard
before an order under this section is passed.

SEARCH AND SEIZURE

Section 22
(1) For the purpose of conducting an investigation after preliminary inquiry under
sub-section (1) of section 19, the Director-General or any other officer authorised
by him in this behalf, or the District
Collector, as the case may be, may, if he has any reason to believe that any person
has violated any consumer rights or committed unfair trade practice or causes any
false or misleading
advertisement to be made, shall,—
(a) enter at any reasonable time into any such premises and search for any
document or record or
article or any other form of evidence and seize such document, record, article or
such evidence;
(b) make a note or an inventory of such record or article; or (c) require any person
to produce any record, register or other document or article.
(2) The provisions of the Code of Criminal Procedure, 1973, relating to search
and seizure shall apply, as far as may be, for search and seizure under this Act.

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(3) Every document, record or article seized under clause (a) of sub-section (1)
or produced under clause (c) of that sub-section shall be returned to the person,
from whom they were seized or who
produced the same, within a period of 20 days of the date of such seizure or
production, as the case may be, after copies thereof or extracts therefrom certified
by that person, in such manner as may be prescribed, have been taken.
(4) Where any article seized under sub-section (1) are subject to speedy or natural
decay, the Director- General or such other officer may dispose of the article in
such manner as may be prescribed.
(5) In the case of articles other than the articles referred to in sub-section (4),
provisions contained in section 38(2) (c) shall mutatis mutandis apply in relation
to analysis or tests.

APPEAL

Section 24
A person aggrieved by any order passed by the Central Authority under sections
20 and 21 may file an appeal to the National Commission within a period of 30
days from the date of receipt of such order.

ESTABLISHMENT OF DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION
Section 28
(1) The State Government shall, by notification, establish a District Consumer
Disputes Redressal Commission, to be known as the District Commission, in each
district of the State:

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Provided that the State Government may, if it deems fit, establish more than one
District Commission in a district.
(2) Each District Commission shall consist of—
(a) a President; and
(b) not less than two and not more than such number of members as may be
prescribed, in
consultation with the Central Government.

QUALIFICATIONS, ETC., OF PRESIDENT AND MEMBERS OF

DISTRICT COMMISSION
Section 29
The Central Government may, by notification, make rules to provide for the
qualifications, method of recruitment, procedure for appointment, term of office,
resignation and removal of the President and members of the District
Commission.

SALARIES, ALLOWANCES AND OTHER TERMS AND CONDITIONS

OF SERVICE OF PRESIDENT AND MEMBERS OF DISTRICT
COMMISSION

Section 30
The State Government may, by notification, make rules to provide for salaries
and allowances and other terms and conditions of service of the President, and
members of the District Commission.

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CONSUMER PROTECTION ACT 2019

JURISDICTION OF DISTRICT COMMISSION

Section 34
(1) Subject to the other provisions of this Act, the District Commission shall have
jurisdiction to entertain complaints where the value of the goods or services paid
as consideration does not exceed 1 crore rupees:
Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit.
(2) A complaint shall be instituted in a District Commission within the local limits
of whose jurisdiction,—
(a) the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or carries on
business or has a branch office or personally works for gain; or
(b) any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on
business or has a branch office, or personally works for gain, provided that in
such case the permission of the District Commission is
given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain
(3) The District Commission shall ordinarily function in the district headquarters
and may perform its functions at such other place in the district, as the State
Government may, in consultation with the State Commission, notify in the
Official Gazette from time to time.

MANNER IN WHICH COMPLAINT SHALL BE MADE

Section 35

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CONSUMER PROTECTION ACT 2019

(1) A complaint, in relation to any goods sold or delivered or agreed to be sold or

delivered or any service provided or agreed to be provided, may be filed with a
District Commission by —
(a) the CONSUMER, —
(i) to whom such goods are sold or delivered or agreed to be sold or delivered or
such service is provided or agreed to be provided; or
(ii) who alleges unfair trade practice in respect of such goods or service;
(b) any RECOGNISED Consumer Association, whether the consumer to whom
such goods are sold or delivered or agreed to be sold or delivered or such service
is provided or agreed to be provided, or who alleges unfair trade practice in
respect of such goods or service,
☛ is a member of such association or not;
(c) ONE OR MORE CONSUMERS, where there are numerous consumers
having the same interest, with the permission of the District Commission, on
behalf of, or for the benefit of, all consumers so interested; or
(d) the Central GOVERNMENT, the Central Authority or the State Government,
as the case may be:
Provided that the complaint under this sub-section may be filed electronically in
such manner as may be prescribed.

Explanation. —
For the purposes of this sub-section, "recognised consumer association" means
any voluntarymconsumer association registered under any law for the time being
in force.
(2) Every complaint filed under sub-section (1) shall be accompanied with such
fee and payable in such manner, including electronic form, as may be prescribed.

PROCEEDINGS BEFORE DISTRICT COMMISSION

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CONSUMER PROTECTION ACT 2019

Section 36
(1) Every proceeding before the District Commission shall be conducted by the
President of that Commission and at least one member thereof, sitting together:
Provided that where 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.
(2) On receipt of a complaint made under section 35, the District Commission
may, by order, admit the complaint for being proceeded with or reject the same:
Provided that a complaint shall not be rejected under this section unless an
opportunity of being heard has been given to the complainant:
Provided further that the admissibility of the complaint shall ordinarily be decided
within twenty-one days from the date on which the complaint was filed.
(3) Where the District Commission does not decide the issue of admissibility of
the complaint within the period so specified, it shall be deemed to have been
admitted.

REFERENCE TO MEDIATION

Section 37
(1) At the first hearing of the complaint after its admission, or at any later stage,
if it appears to the District Commission that there exists elements of a settlement
which may be acceptable to the parties, except in such cases as may be prescribed,
it may direct the parties to give in writing, within 5 days, consent to have their
dispute settled by mediation in accordance with the provisions of Chapter V.

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CONSUMER PROTECTION ACT 2019

(2) Where the parties agree for settlement by mediation and give their consent in
writing, the District Commission shall, within five days of receipt of such
consent, refer the matter for mediation, and in such case, the provisions of Chapter
V, relating to mediation, shall apply.

PROCEDURE ON ADMISSION OF COMPLAINT

Section 38
(1) The District Commission shall, on admission of a complaint, or in respect of
cases referred for mediation on failure of settlement by mediation, proceed with
such complaint.
(2) WHERE THE COMPLAINT RELATES TO ANY GOODS, the District
Commission shall, —
(a) refer a copy of the admitted complaint,
☛ within 21 days from the date of its admission to the OPPOSITE PARTY
mentioned in the complaint
☛ directing him to give his version of the case within a period of 30 days or such
extended period not exceeding 15 days as may be granted by it;
(b) if the opposite party on receipt of a complaint referred to him under clause (a)
denies or disputes the allegations contained in the complaint, or omits or fails to
take any action to represent his case within the time given by the District
Commission,
☛ proceed to settle the consumer dispute in the manner specified in clauses (c) to
(g);
(c) if the complaint alleges a defect in the goods which cannot be determined
without proper analysis or test of the goods, obtain a sample of the goods from
the complainant, seal it and authenticate it in the manner as may be prescribed
and refer the sample so sealed to the appropriate laboratory along with a direction

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CONSUMER PROTECTION ACT 2019

that such laboratory to make an analysis or test, whichever may be necessary,

with a view to finding out whether such goods suffer from any defect alleged in
the complaint or from any other defect and to report its findings thereon to the
District Commission within a period of 45 days of the receipt of the reference or
within such extended period as may be granted by it;
(d) before any sample of the goods is referred to any appropriate laboratory under
clause (c), require the complainant to deposit to the credit of the Commission
such fees as may be specified, for payment to the appropriate laboratory for
carrying out the necessary analysis or test in relation to the goods in question;
(3) The District Commission shall, if the complaint admitted by it under sub-
section (2) of section 36
relates to goods in respect of which the procedure specified in sub-section (2)
cannot be followed, or if the complaint relates to any services,—
(a) refer a copy of such complaint to the opposite party directing him to give his
version of the case within a period of 30 days or such extended period not
exceeding 15 days as may be granted by the District Commission;
(b) if the opposite party, on receipt of a copy of the complaint, referred to him
under clause (a) denies or disputes the allegations contained in the complaint, or
omits or fails to take any action to represent his case within the time given by the
District Commission, it shall proceed to settle
the consumer dispute —
(i) on the basis of evidence brought to its notice by the complainant and the
opposite party, if the opposite party denies or disputes the allegations contained
in the complaint, or
(ii) ex parte on the basis of evidence brought to its notice by the complainant,
where the opposite party omits or fails to take any action to represent his case
within the time given by the Commission;
(c) decide the complaint on merits if the complainant fails to appear on the date
of hearing.

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CONSUMER PROTECTION ACT 2019

(4) For the purposes of sub-sections (2) and (3), the District Commission may, by
order, require an electronic service provider to provide such information,
documents or records, as may be specified in that order.
(5) No proceedings complying with the procedure laid down in sub-sections (1)
and (2) shall be called in question in any court on the ground that the principles
of natural justice have not been complied with.
(6) Every complaint shall be heard by the District Commission on the basis of
affidavit and documentary evidence placed on record: Provided that where an
application is made for hearing or for examination of parties in person or through
video conferencing, the District Commission may, on sufficient cause being
shown, and after recording its reasons in writing, allow the same.
(7) Every complaint shall be disposed of as expeditiously as possible and
endeavour shall be made to decide the complaint
☛ within a period of 3 months from the date of receipt of notice by opposite party
where the complaint does not require analysis or testing of commodities and
☛ within 5 months if it requires analysis or testing of commodities:
(8) Where during the pendency of any proceeding before the District
Commission, if it appears necessary, it may pass such interim order as is just and
proper in the facts and circumstances of the case.
(9) For the purposes of this section, the District Commission shall have the same
POWERS as are vested in a civil court under the Code of Civil Procedure, 1908
while trying a suit in respect of the following matters, namely:—
(a) the summoning and enforcing the attendance of any defendant or witness and
examining the witness on oath;
(b) requiring the discovery and production of any document or other material
object as evidence;
(c) receiving of evidence on affidavits;

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CONSUMER PROTECTION ACT 2019

(d) the requisitioning of the report of the concerned analysis or test from the
appropriate laboratory or from any other relevant source;
(e) issuing of commissions for the examination of any witness, or document; and
(f) any other matter which may be prescribed by the Central Government.
(10) Every proceeding before the District Commission shall be deemed to be a
judicial proceeding within the meaning of sections 193 and 228 of the Indian
Penal Code, and the District Commission shall be deemed to be a criminal court
for the purposes of section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973.

FINDINGS OF DISTRICT COMMISSION

Section 39
(1) Where the District Commission is satisfied that the goods complained against
suffer from any of the defects specified in the complaint or that any of the
allegations contained in the complaint about the services or any unfair trade
practices, or claims for compensation under product liability are proved, it shall
issue an order to the opposite party directing him to do one or more of the
following, namely:—
(a) to remove the defect pointed out by the appropriate laboratory from the goods
in question;
(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, as the case may be, the charges paid
by the complainant along with such interest on such price or charges as may be
decided;
(d) to pay such amount as may be awarded by it as compensation to the consumer
for any loss or injury suffered by the consumer due to the negligence of the
opposite party:

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CONSUMER PROTECTION ACT 2019

Provided that the

District Commission shall have the power to grant punitive damages in such
circumstances as it deems fit;
(e) to pay such amount as may be awarded by it as compensation in a product
liability action under Chapter VI;
(f) to remove the defects in goods or deficiencies in the services in question;
(g) to discontinue the unfair trade practice or restrictive trade practice and not to
repeat them;
(h) not to offer the hazardous or unsafe goods for sale;
(i) to withdraw the hazardous goods from being offered for sale;
(j) to cease manufacture of hazardous goods and to desist from offering services
which are hazardous in nature;
(k) to pay such sum as may be determined by it, if it is of the opinion that loss or
injury has been suffered by a large number of consumers who are not identifiable
conveniently:
Provided that the minimum amount of sum so payable shall not be less than 25%
of the value of such defective goods sold or service provided, as the case may be,
to such consumers;
(l) to issue corrective advertisement to neutralise the effect of misleading
advertisement at the cost of the opposite party responsible for issuing such
misleading advertisement;
(m) to provide for adequate costs to parties; and
(n) to cease and desist from issuing any misleading advertisement.
(2) Any amount obtained under sub-section (1) shall be credited to such fund and
utilised in such manner as may be prescribed.

REVIEW BY DISTRICT COMMISSION IN CERTAIN CASES

Section 40

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CONSUMER PROTECTION ACT 2019

The District Commission shall have the power to review any of the order passed
by it if there is an error apparent on the face of the record, either of its own motion
or on an application made by any of the parties within 30 days of such order.

APPEAL AGAINST ORDER OF DISTRICT COMMISSION

Section 41
Any person aggrieved by an order made by the District Commission may prefer
an appeal against such order to the State Commission on the grounds of facts or
law within a period of 45 days from the date of the order, in such form and
manner, as may be prescribed:
Provided that the State Commission may entertain an appeal after the expiry of
the said period of forty- five days, if it is satisfied that there was sufficient cause
for not filing it within that period:

Provided further that no appeal by a person, who is required to pay any amount
in terms of an order of the District Commission, shall be entertained by the State
Commission
☛ unless the appellant has deposited 50% of that amount in the manner as may
be prescribed:
Provided also that no appeal shall lie from any order passed under sub-section (1)
of section 81 by the District Commission pursuant to a settlement by mediation
under section 80.

Establishment of STATE CONSUMER DISPUTES REDRESSAL

COMMISSION

Section 42

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CONSUMER PROTECTION ACT 2019

(1) The State Government shall, by notification, establish a State Consumer

Disputes Redressal Commission, to be known as the State Commission, in the
State.
(2) The State Commission shall ordinarily function at the State capital and
perform its functions at such other places as the State Government may in
consultation with the State Commission notify in the Official Gazette: Provided
that the State Government may, by notification, establish regional benches of the
State Commission, at such places, as it deems fit.
(3) Each State Commission shall consist of—
(a) a President; and
(b) not less than 4 or not more than such number of members as may be prescribed
in consultation with the Central Government.

QUALIFICATIONS, ETC. OF PRESIDENT AND MEMBERS OF STATE

COMMISSION.
Section 43
The Central Government may, by notification, make rules to provide for the
qualification for appointment, method of recruitment, procedure of appointment,
term of office, resignation and removal of the President and members of the State
Commission.

JURISDICTION OF STATE COMMISSION

Section 47
(1) Subject to the other provisions of this Act, the State Commission shall have
jurisdiction —
(a) to entertain —
(i) complaints where the value of the goods or services paid as consideration,
exceeds rupees 1 crore, but does not exceed rupees 10 crore:

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CONSUMER PROTECTION ACT 2019

Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or services paid
as consideration does not exceed 10 crore rupees;
(iii) appeals against the orders of any District Commission within the State; and
(b) to call for the records and pass appropriate orders in any consumer dispute
which is pending before or has been decided by any District Commission within
the State, where it appears to the State Commission that such District Commission
has exercised a jurisdiction not vested in it by
law, or has failed to exercise a jurisdiction so vested or has acted in exercise of
its jurisdiction illegally or with material irregularity.
(2) The jurisdiction, powers and authority of the State Commission may be
exercised by Benches thereof, and a Bench may be constituted by the President
with one or more members as the President may deem fit:
Provided that the senior-most member shall preside over the Bench.
(3) Where the members of a Bench differ in opinion on any point, the points shall
be decided according to the opinion of the majority, if there is a majority, but if
the members are equally divided, they shall state the point or points on which
they differ, and make a reference to the President who shall either hear the point
or points himself or refer the case for hearing on such point or points by one or
more of the other members and such point or points shall be decided according
to the opinion of the majority of the members who have heard the case, including
those who first heard it:
Provided that the President or the other members, as the case may be, shall give
opinion on the point or points so referred within a period of one month from the
date of such reference.
(4) A COMPLAINT SHALL BE INSTITUTED in a State Commission within
the limits of whose jurisdiction,—

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CONSUMER PROTECTION ACT 2019

(a) the opposite party or each of the opposite parties, where there are more than
one, at the time of the institution of the complaint, ordinarily resides or carries on
business or has a branch office or personally works for gain; or
(b) any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on
business or has a branch office or personally works for gain, provided in such
case, the permission of the State Commission is
given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.

TRANSFER OF CASES
Section 48
On the application of the complainant or of its own motion, the State Commission
may, at any stage of the proceeding, transfer any complaint pending before a
District Commission to another District Commission within the State if the
interest of justice so requires.

PROCEDURE APPLICABLE TO STATE COMMISSION

Section 49
(1) The provisions relating to complaints under sections 35, 36, 37, 38 and 39
shall, with such modifications as may be necessary, be applicable to the disposal
of complaints by the State Commission.

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CONSUMER PROTECTION ACT 2019

(2) Without prejudice to the provisions of sub-section (1), the State Commission
may also declare any terms of contract, which is unfair to any consumer, to be
null and void.

REVIEW BY STATE COMMISSION IN CERTAIN CASES

Section 50
The State Commission shall have the power to review any of the order passed by
it if there is an error apparent on the face of the record, either of its own motion
or on an application made by any of the parties within thirty days of such order.

APPEAL TO NATIONAL COMMISSION

Section 51
(1) Any person aggrieved by an order made by the State Commission in exercise
of its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of
section 47 may prefer an appeal against such order to the National Commission
within a period of 30 days from the date of the order in such form and manner as
may be prescribed:
Provided that the National Commission shall not entertain the appeal after the
expiry of the said period of 30 days unless it is satisfied that there was sufficient
cause for not filing it within that period:
Provided further that no appeal by a person, who is required to pay any amount
in terms of an order of the State Commission, shall be entertained by the National
Commission unless the appellant has deposited 50% of that amount in the manner
as may be prescribed.
(2) Save as otherwise expressly provided under this Act or by any other law for
the time being in force, an appeal shall lie to the National Commission from any

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CONSUMER PROTECTION ACT 2019

order passed in appeal by any State Commission, if the National Commission is

satisfied that the case involves a substantial question of law.
☛ An appeal may lie to the National Commission under this section from an order
passed ex parte by the State Commission.

HEARING OF APPEAL
Section 52
An appeal filed before the State Commission or the National Commission, as the
case may be, shall be heard as expeditiously as possible and every endeavour
shall be made to dispose of the appeal within a period of 90days from the date of
its admission:
Provided that no adjournment shall ordinarily be granted by the State
Commission or the National Commission, as the case may be, unless sufficient
cause is shown and the reasons for grant of adjournment have been recorded in
writing by such Commission:

ESTABLISHMENT OF NATIONAL CONSUMER DISPUTES

REDRESSAL COMMISSION

Section 53
(1) The Central Government shall, by notification, establish a National Consumer
Disputes Redressal Commission, to be known as the National Commission.
(2) The National Commission shall ordinarily function at the National Capital
Region and perform its functions at such other places as the Central Government
may in consultation with the National Commission notify in the Official Gazette:
Provided that the Central Government may, by notification, establish regional
Benches of the National Commission, at such places, as it deems fit.

COMPOSITION OF NATIONAL COMMISSION

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CONSUMER PROTECTION ACT 2019

Section 54
The National Commission shall consist of—
(a) a President; and
(b) not less than 4 and not more than such number of members as may be
prescribed.

QUALIFICATIONS, ETC., OF PRESIDENT AND MEMBERS OF

NATIONAL COMMISSION

Section 55
(1) The Central Government may, by notification, make rules to provide for
qualifications, appointment, term of office, salaries and allowances, resignation,
removal and other terms and conditions of service of the President and members
of the National Commission:
Provided that the President and members of the National Commission shall hold
office for such term as specified in the rules made by the Central Government but
not exceeding five years from the date on which he enters upon his office and
shall be eligible for re-appointment:
Provided further that no President or members shall hold office as such after he
has attained such
age as specified in the rules made by the Central Government which shall not
exceed, —
(a) in the case of the President, the age of 70 years;
(b) in the case of any other member, the age of 67 years.

JURISDICTION OF NATIONAL COMMISSION

Section 58

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CONSUMER PROTECTION ACT 2019

(1) Subject to the other provisions of this Act, the National Commission shall
have jurisdiction—
(a) to entertain —
(i) Complaints where the VALUE of the goods or services paid as consideration
exceeds rupees 10 crore:
Provided that where the Central Government deems it necessary so to do, it may
prescribe such other value, as it deems fit;
(ii) Complaints against UNFAIR CONTRACTS, where the value of goods or
services paid as consideration exceeds 10 crore rupees;
(iii) APPEALS against the orders of any State Commission;
(iv) APPEALS against the orders of the Central Authority; and
(b) to call for the records 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 such State Commission has exercised a
jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so
vested, or has acted in the exercise of its jurisdiction illegally or with
material irregularity.

APPEAL AGAINST ORDER OF NATIONAL COMMISSION

Section 67
Any person, aggrieved by an order made by the National Commission in exercise
of its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of
section 58, may prefer an appeal against such order to the Supreme Court within
a period of 30 days from the date of the order:

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CONSUMER PROTECTION ACT 2019

Provided that the Supreme Court may entertain an appeal after the expiry of the
said period of thirty days if it is satisfied that there was sufficient cause for not
filing it within that period:
Provided further that no appeal by a person who is required to pay any amount in
terms of an order of the National Commission shall be entertained by the Supreme
Court unless that person has deposited 50% of that amount in the manner as may
be prescribed.

FINALITY OF ORDERS

Section 68
Every order of a District Commission or the State Commission or the National
Commission, as the case may be, shall, if no appeal has been preferred against
such order under the provisions of this Act, be final.

LIMITATION PERIOD

Section 69
(1) The District Commission, the State Commission or the National Commission
shall not admit a complaint unless it is filed within two years from the date on
which the cause of action has arisen.
(2) Notwithstanding anything contained in sub-section (1), a complaint may be
entertained after the period specified in sub-section (1), if the complainant
satisfies the District Commission, the State Commission or the National
Commission, as the case may be, that he had sufficient cause for not
filing the complaint within such period:
Provided that no such complaint shall be entertained unless the District
Commission or the State Commission or the National Commission, as the case
may be, records its reasons for condoning such delay.

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CONSUMER PROTECTION ACT 2019

Examples:
1. Mukund Lal Ganguly v. Dr. Abhijit Ghosh .
A got his eye operated by B in 1989. He got a certificate of blindness on 18th
December, 1989. He was still in hope of gaining his sight and went from second
operation in 1992 and was discharged on 21-1- 1992. He filed a complaint against
B on 11-1-1994. B opposed on the ground that more than 2 years were over after
18-12-1989, thus the complaint is not maintainable.
The Commission held that here the cause of action for filing the complaint
would arose after the second operation when A lost entire hope of recovery.
Thus the suit is maintainable.
2. A house was allotted on 1-1-1999. Defects appeared in the house on 10-1-1999.
Here the cause of action will arise on 10-1-1999.
3. Agnes D’Mello v. Canara Bank [1992].
A deposited some jewellery with a bank. Bank lost it. Bank kept giving her false
sense of hope to retrieve the jewellery, and thus A was put in a state of inaction.
Later on when A filed a suit on the Bank, it claimed that the suit was not
maintainable as the limitation time after the cause of action arose has lapsed.
The Commission reprimanded the bank and admitted the case.

WHEN A COMPLAINT CANNOT BE FILED

➢ A complaint on behalf of the public which consists of unidentifiable

consumers cannot be filed under the Act.
Example:
Consumer Education and Research Society, Ahmedabad v. Indian Airlines
Corporation, New Delhi

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CONSUMER PROTECTION ACT 2019

(1992). A complaint was filed on the basis of a newspaper report that passengers
travelling by flight No. 1C-401 from Calcutta to Delhi on May 13, 1989 were
made to stay at the airport and the flight was delayed by 90 minutes causing great
inconvenience to the passengers. It was held that such a general complaint cannot
be entertained. No passenger who boarded that plane came forward or authorised
the complainant to
make the complaint.
A complaint by an individual on behalf of general public is not permitted -
Commissioner of
Transport v. Y.R. Grover 1994 (1) CPJ 199 NC.
➢ An unregistered association cannot file a complaint under the Act.
Gulf Trivendrum air Fare Forum v. Chairman & Managing Director, Air India
1991.
The complainant was an association formed in the Gulf and was unregistered
in India. It was held that since the petitioner was not a voluntary organization
registered under any law in force in India, cannot come within clause (d) of
section 2(1) of the Act and hence can’t file a complaint.
➢ A complaint after expiry of limitation period is not permitted.
A complaint cannot be filed after the lapse of two years from the date on which
the cause of action arise unless the Forum is satisfied about the genuineness of
the reason for not filing complaint within the prescribed time.
A supplied defective machinery to B on 12-1-1998. B filed a suit against A on
10-3-2001. It was not admitted before the Forum for the reason that the time
available to make complaint lapsed.
➢ Dismissal of frivolous and vexatious complaints
To discourage frivolous and vexatious claims, such complaints will be
dismissed and the complainant can be charged with the costs not exceeding Rs.
10,000.
A filed a complaint against B to recover compensation of

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Rs. 55,99,000 with the motive of indulging in speculative litigation taking undue
advantage of the fact that no court fee was payable under the Consumer Protection
Act. The National Commission held that the complainant has totally failed to
make a case against B, and dismissed the complaint as frivolous and vexatious.

ENFORCEMENT OF ORDERS OF
DISTRICT COMMISSION, STATE COMMISSION AND NATIONAL
COMMISSION

Section 71
Every order made by a District Commission, State Commission or the National
Commission shall be enforced by it in the same manner as if it were a decree
made by a Court in a suit before it and the provisions of Order XXI of the First
Schedule to the Code of Civil Procedure, 1908 shall, as far as may
be, applicable, subject to the modification that every reference therein to the
decree shall be construed as reference to the order made under this Act.

PENALTY FOR NON COMPLIANCE OF ORDER.

Section 72
(1) Whoever fails to comply with any order made by the District Commission or
the State Commission or the National Commission, as the case may be, shall be
punishable with
imprisonment for a term which shall not be less than one month, but which
may extend to three years, or
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CONSUMER PROTECTION ACT 2019

with fine, which shall not be less than 25000 rupees, but which may extend to
one lakh rupees, or with both.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973,
the District Commission, the State Commission or the National Commission, as
the case may be,
☛ shall have the power of a Judicial Magistrate of first class for the trial of
offences under sub- section (1), and on conferment of such powers, the District
Commission or the State Commission or the National Commission, as the case
may be, shall be deemed to be a Judicial Magistrate of
first class for the purposes of the Code of Criminal Procedure, 1973.
(3) Save as otherwise provided, the offences under sub-section (1) shall be tried
summarily by the District Commission or the State Commission or the National
Commission, as the case may be.

APPEAL AGAINST ORDER PASSED UNDER SECTION 72

Section 73
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973,
where an order is
passed under sub-section (1) of section 72, an appeal shall lie, both on facts and
on law from—
(a) the order made by the District Commission to the State Commission;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission
to the Supreme Court.

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(2) Except as provided in sub-section (1), no appeal shall lie before any court,
from any order of a District Commission or a State Commission or the National
Commission, as the case may be.
(3) Every appeal under this section shall be preferred within a period of 30 days
from the date of order of a District Commission or a State Commission or the
National Commission, as the case may be:
Provided that the State Commission or the National Commission or the Supreme
Court, as the case may be, may entertain an appeal after the expiry of the said
period of thirty days, if it is satisfied that the appellant had sufficient cause for
not preferring the appeal within the said period of thirty days.

CHAPTER V
MEDIATION

ESTABLISHMENT OF CONSUMER MEDIATION CELL.

Section 74
(1) The State Government shall establish, by notification, a consumer mediation
cell to be attached to each of the District Commissions and the State Commissions
of that State.
(2) The Central Government shall establish, by notification, a consumer
mediation cell to be attached to the National Commission and each of the regional
Benches.
(3) A consumer mediation cell shall consist of such persons as may be prescribed.
(4) Every consumer mediation cell shall maintain—
(a) a list of empanelled mediators;
(b) a list of cases handled by the cell;
(c) record of proceeding; and
(d) any other information as may be specified by regulations.

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(5) Every consumer mediation cell shall submit a quarterly report to the District
Commission, State Commission or the National Commission to which it is
attached, in the manner specified by regulations.

EMPANELMENT OF MEDIATORS.

Section 75
(1) For the purpose of mediation, the National Commission or the State
Commission or the District Commission, as the case may be, shall prepare a panel
of the mediators to be maintained by the consumer mediation cell attached to it,
on the recommendation of a selection committee consisting
of the President and a member of that Commission.
(2) The qualifications and experience required for empanelment as mediator, the
procedure for empanelment, the manner of training empanelled mediators, the fee
payable to empanelled mediator, the terms and conditions for empanelment, the
code of conduct for empanelled mediators, the grounds on which, and the manner
in which, empanelled mediators shall be removed or empanelment shall be
cancelled and other matters relating thereto, shall be such as may be specified by
regulations.
(3) The panel of mediators prepared under sub-section (1) shall be valid for a
period of 5 years, and the empanelled mediators shall be eligible to be considered
for re-empanelment for another term, subject to such conditions as may be
specified by regulations.

NOMINATION OF MEDIATORS FROM PANEL

Section 76

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The District Commission, the State Commission or the National Commission

shall, while nominating any person from the panel of mediators referred to in
section 75, consider his suitability for resolving the consumer dispute involved.

DUTY OF MEDIATOR TO DISCLOSE CERTAIN FACTS

Section 77
It shall be the duty of the mediator to disclose —
(a) any personal, professional or financial interest in the outcome of the consumer
dispute;
(b) the circumstances which may give rise to a justifiable doubt as to his
independence or impartiality; and
(c) such other facts as may be specified by regulations.

REPLACEMENT OF MEDIATOR IN CERTAIN CASES

Section 78
Where the District Commission or the State Commission or the National
Commission, as the case may be, is satisfied, on the information furnished by the
mediator or on the information received from any other person including parties
to the complaint and after hearing the mediator, it shall replace such mediator by
another mediator.

PROCEDURE FOR MEDIATION

Section 78

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(1) The mediation shall be held in the consumer mediation cell attached to the
District Commission, the State Commission or the National Commission, as the
case may be.
(2) Where a consumer dispute is referred for mediation by the District
Commission or the State Commission or the National Commission, as the case
may be, the mediator nominated by such Commission shall have regard to the
rights and obligations of the parties, the usages of trade, if
any, the circumstances giving rise to the consumer dispute and such other relevant
factors, as he may deem necessary and shall be guided by the principles of natural
justice while carrying out mediation.
(3) The mediator so nominated shall conduct mediation within such time and in
such manner as may be specified by regulations.

SETTLEMENT THROUGH MEDIATION

Section 80
(1) Pursuant to mediation, if an agreement is reached between the parties with
respect to all of the issues involved in the consumer dispute or with respect to
only some of the issues, the terms of such agreement shall be reduced to writing
accordingly, and signed by the parties to such dispute or their authorised
representatives.
(2) The mediator shall prepare a settlement report of the settlement and forward
the signed agreement along with such report to the concerned Commission.
(3) Where no agreement is reached between the parties within the specified time
or the mediator is of the opinion that settlement is not possible, he shall prepare
his report accordingly and submit the same to the concerned Commission.

RECORDING SETTLEMENT AND PASSING OF ORDER

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Section 81
(1) The District Commission or the State Commission or the National
Commission, as the case may be, shall, within seven days of the receipt of the
settlement report, pass suitable order recording
such settlement of consumer dispute and dispose of the matter accordingly.
(2) Where the consumer dispute is settled only in part, the District Commission
or the State Commission or the National Commission, as the case may be, shall
record settlement of the issues which have been so settled and continue to hear
other issues involved in such consumer dispute.
(3) Where the consumer dispute could not be settled by mediation, the District
Commission or the State Commission or the National Commission, as the case
may be, shall continue to hear all the issues involved in such consumer dispute.

CHAPTER VI
PRODUCT LIABILITY

Section 82
This Chapter shall apply to every claim for compensation under a product liability
action by a complainant for any harm caused by a defective product manufactured
by a product manufacturer or serviced by a product service provider or sold by a
product seller.

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