CONSUMER PROTECTION LAW IN INDIA & UTTAR PRADESH

2.1 Introduction

Consumer rights awareness is the knowledge that a consumer should have about his/ her legal

rights and duties. It must for a consumer to follow those rights. It is implemented from the

protection of the consumer, so that the consumer is not exploited by the seller of the product.

Consumer rights awareness is now an integral part of our lives like a consumerist way of life.

They have been well documented and much talked about. We have all made use of them at some

point in our daily lives. Market resources and influences are growing by the day and so is the

awareness of one's consumer rights. These rights are well-defined and there are agencies like the

government, consumer courts and voluntary organizations that work towards safeguarding them.

While we all like to know about our rights and make full use of them, consumer responsibility is

an area which is still not demarcated and it is hard to spell out all the responsibilities that a

consumer is supposed to shoulder. In this chapter, we will give an overview of the Consumer

Protection Act, 1986, Consumer Protection Rule, 1987, Consumer Protection Regulation, 2005

and Uttar Pradesh Consumer Protection Rule, 1987. However, this is largely unknown to many

citizens irrespective of whether they are educated or uneducated. With an enormous population

along with high levels of poverty, unemployment and poor literacy levels, consumer rights

awareness continues to remain low. Consumers by definition include all citizens who are, by and

large the biggest group, who are affected by almost all government, public or private decisions.

With the increasing changes in economic conditions, the children especially are becoming young

consumers at an early age. Children must learn to obtain information about goods and services,

understand the psychology of selling and advertising, learn to shop wisely and distinguish

between wants and needs. They must also understand the alternatives of conserving and saving

rather than buying and consuming. Consumer rights awareness is now an integral part of our

lives like a consumerist way of life. They have been well documented and much talked about.

We have all made use of them at some point in our daily lives. Market resources and influences

are growing by the day and so is the awareness of one's consumer rights .These rights are well-

defined and there are agencies like the government, consumer courts and voluntary organizations

that work towards safeguarding them.

2.2 Consumer Protection Laws

There are great differences between developing and developed countries in social, political and

economic fields. India is one of the developing countries. India suffers with several drastic

troubles, such as unemployment, poverty, illiteracy, overpopulation etc. the majority of

consumers are illiterates. They do not know their rights and even the law of sales. They could not

organize themselves against the unfair trade practice .as a result the business people exploited

them to the debt.

There are several provisions incorporated in several Acts to protect the interests of consumers.

Such Acts are:

a) The Sale of Goods Act, 1930;

b) The Indian Contract Act, 1872;

c) Agricultural Produce, (Grading and Marketing) Act, 1937;

d) Drugs and Cosmetics Act, 1940;

e) Drugs (Control) Act, 1950;

f) Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954;

g) Prevention of Food Adulteration Act, 1954;

h) Essential Commodities Act, 1955;

i) Essential Services Maintenance Act, 1968;

j) Trade and Merchandise Marks Act, 1968;

k) Standards of Weights and Measures Act, 1976;

l) Bureau of Indian Standards Act, 1986;

m) The Monopolies and Restrictive Trade Practices Act, 1969; etc.

However all these Acts fail to protect the consumer in full satisfaction there are defects. They

contain provisions tedious litigations expensive, time delayed procedures in civil and criminal

courts. The traders are full trained in tackling the innocent and untrained consumers. In 1983, the

General Assembly of United Nations adopted certain guidelines for protecting the consumers. In

1985 it also adopted a resolution requesting the member states to formulate the Acts for the

protection of consumers and educate them. Inspired by it the Indian Parliament enacted

Consumer Protection Act, 1986, which has brought several drastic changes in consumer

movement in India.1 In India, consumer protection movement was at the end of twentieth century

the consumer protection was enacted. The Consumer Protection Act, 1986 is a milestone in the

history of socio-economic legislation in the country. It is one of the most progressive and

comprehensive pieces of legislations enacted for the protection of consumers. It was enacted

after in-depth study of consumer protection laws in a number of countries and in consultation

with representatives of consumers, trade and industry and extensive discussions within the

Government. The Consumer Protection Act was enacted to provide a simple and quicker access

to Redressal of consumer grievances. The main objective of the act is to provide for the better

protection of consumers. Unlike existing laws, which are punitive or preventive in nature, the

provisions of this Act are compensatory in nature.2The Act is intended to provide simple, speedy

and inexpensive redressal to the consumers' grievances, and relief of a specific nature and award

of compensation wherever appropriate to the consumer.

2.3 Consumer Protection Act, 1986

The Consumer Protection Act, 1986 is a milestone in the history of socio-economic legislation in

the country. The main objective of the new law is to provide for the better protection of the

consumers unlike existing laws, which are punitive or preventive in nature. The Act intends to

provide simple, speedy & inexpensive redresses to the consumer's grievances.3

2.3.1 Consumer Rights

It covers all the sectors whether private, public, and cooperative or any person. The provisions of

the Act are compensatory as well as preventive and punitive in nature and the Act applies to all

goods covered by Sale of Goods Act and services unless specifically exempted by the Central

Government. It enshrines the following rights of consumers as mentioned under Section 6 of the

CPA:

(a) right to be protected against the marketing of goods and services which are

hazardous to life and property; (b) right to be informed about the quality, quantity,

potency, purity, standard and price of goods or services so as to protect the

consumers against unfair trade practices; (c) right to be assured, wherever possible,

access to a variety of goods and services at competitive prices; (d) right to be heard

and to be assured that consumer’ s interests will receive due consideration at the

appropriate fora; (e) right to seek redressal against unfair trade practices or

unscrupulous exploitation of consumers; and (f) right to consumer education. 4

The Act also envisages establishment of Consumer Protection Councils 5 at the central, state and

district levels, whose main objectives are to promote and protect the rights of consumers. To

provide a simple, speedy and inexpensive redressal of consumer grievances, the Act envisages

three-tier quasi-judicial machinery at the national, state and district levels. These are: National

Consumer Disputes Redressal Commission known as National Commission, State Consumer

Disputes Redressal Commissions known as State Commissions and District Consumer Disputes

Redressal Forum known as District Forum; and the provisions of this Act are in addition to and

not in derogation of the provisions of any other law for the time being enforced. Definition of

‘Defect’ and ‘consumer’

Under the CPA, Consumer Forums at the District, State and National level have been specifically

constituted to adjudicate claims of consumers for any “defect” in goods. A “defect” has been

defined in Section 2(1) (f) of the Act as “any fault, imperfection or shortcoming in the quality,

quantity, potency, purity or standard which is required to maintained by or under any law for the

time being in force or under any contract, express or implied, or as is claimed by the trader

(which includes the manufacturer) in any manner whatsoever in relation to any goods.” It is

important to mention herein that by virtue of Section 2 (1) (d) persons/entities who had

purchased goods for ‘commercial purpose’ (other than those persons who have purchased goods

for using them to earn their livelihood by means of self employment) are excluded from the

scope of CPA; they cannot institute proceedings under the CPA even if there is any ‘defect’ in

the goods purchased by them for using the goods for commercial purposes.

2.3.2 Purview of a ‘Complaint’

According to the CPA, ‘Complaint’ means any of the following allegations made in writing by a

complainant as given below:

(i) any unfair trade practice or a restrictive trade practice has been adopted by a trader,

(ii) the goods hired or bought suffer from one or more defects

(iii)The goods hired or availed of are deficient in any respect

(iv) A trader has charged price in excess of price fixed by law or displayed on the goods or any

package containing goods

(v) Goods which will be hazardous to life and safety when used, are being offered for sale to the

public in contravention of the provisions of any law requiring traders to display information

in regard to the contents, manner and effect or use of such goods. 6

2.3.3 Grant of Reliefs under CPA

On arriving at a finding of defect in the goods according to Section 14 CPA, the jurisdictional

Consumer Forum may direct one or more of the following: (i) to remove the defect; (ii) to

replace the goods with new goods of similar description which shall be free from any defect; (iii)

to return to the complainant the price; (iv) to pay such amount as may be awarded as

compensation to the consumer for the loss or injury suffered by the consumer due to the

negligence of the opposite party; (v) to discontinue the unfair trade practice or the restrictive

trade practice or not to repeat them; (vi) to cease and desist manufacture of hazardous goods;

(vii) to pay such sums as orders if injury/loss is suffered by a large number of consumers not

identifiable conveniently; (viii) to issue corrective advertisement for neutralizing effect of

misleading advertisement; (ix) not to offer the hazardous goods for sale; (x) to withdraw the

hazardous goods from being offered for sale; (xi) to provide for adequate costs to parties (the

Complainant). 7

Section 14 is the main provision which provide the remedy to be given by the consumer courts.

Virtually this section is read along with Section 13. Section 13 provides the procedure of

deciding the complaints whereas section 14 provides remedies to consumers. By Consumer

Protection Amendment Act, 2002 the district forum shall have the power to grant punitive

damages in such circumstances as is deem fit. The award of compensation to a consumer is to be

decided on the basis of actual loss or injury suffered by the consumer. Under Section 14 of the

CPA as explained hereinabove, it is only the remedy of compensation that requires the claimant

to necessarily prove negligence. In the case of Abhaya Kumar Panda v. Bajaj Auto 8

the Orissa

State Commission directed repair of the goods, even though there was no intentional defect.

Thus, the defense of no negligence may not be accepted by Consumer forums.

2.3.4 Validity of Limitation & Liability Clauses

Contractual liability has a role to play in product liability claims under the CPA. Courts in India

have upheld limitation of liability clauses, which parties have specifically agreed to in the

contract as recognized by the Supreme Court in Bharathi Knitting Company v. DHL Worldwide

Express Courier.9 However, such clauses may be struck down if found to be unconscionable in

nature. In Maruti Udyog v. Susheel Kumar Gabgotra10

the manufacturer of the vehicle had

stipulated a warranty clause limiting its liability to merely repair the defects found if any. In view

of this clause, the Supreme Court reversed the findings of the National Commission to replace

the defective goods and held that the liability of the manufacture was confined to repairing the

defect. Compensation was, however, awarded for travel charges to the complainant, which was

incurred due to the fault of the car manufacturer.

2.3.5 Applicability of Other Laws

In India various Acts intended to protect the consumers against different forms of exploitation

were enacted, such as, the Indian Penal Code, I860; Indian Contract Act, 1872, Drugs Control

Act, 1950, Industries (Development and Regulation) Act, 1951, Indian Standards Institution

(certification marks) Act, 1952, Drug and Magic Remedies (Objectionable Advertisement) Act,

1954, Prevention of Food Adulteration Act, 1954, Essential commodities Act, 1955; Trade and

Merchandise Marks Act, 1958, Hire purchase Act, 1972, Cigarettes (Regulation of Production,

Supply and Distribution) Act, 1975, Prevention of Black marketing and Maintenance of Supplies

of Essential Commodities Act, 1980,Essential commodities (Special Provisions) Act,1981,Multi-

State Cooperative Societies Act, 1984, Standard of Weights and Measures (Enforcement) Act,

1985 and Narcotic Drugs and Psychotropic Substances Act, 1985. Some significant consumer

protection enactments of pre-independence time are the Sale of Goods Act, 1930; Agriculture

Produce (Grading and Marketing) Act, 1837 and Drugs and Cosmetics Act, 1940.

Section 3 of the CPA provides that the Act is in addition to and not in derogation of any other

law. The Supreme Court in Secretary, Thirumurugan Co-operative Agricultural Credit Society v.

M. Lalitha11

has interpreted the above provision to mean that the remedies provided under the CP

Act are in addition to the remedies provided under other statutes. Hence, the fact that a remedy is

specifically provided for under another statute would not necessarily oust the jurisdiction of the

appropriate authority under the CP Act. It has been further held that if forums under one statute

and the CP Act are approached, then it is for the appropriate authority to permit the parties to opt

between the consumer forum and the other forum, depending on the facts and circumstances of

the case.

2.3.6 Establishment of Consumer Forums

At present, there are 35 State Commissions, one in each State/UT and 571 district fora besides

the National Commission. The state governments are responsible to set up the district fora and

the State Commissions. States have been empowered to establish additional District Forum and

also additional members in the State Commission to facilitate constituting benches and also for

holding circuit benches. The Central Government is empowered to establish the National

Commission. It has been empowered to appoint additional members to facilitate creation of more

benches and holding of circuit benches. The second bench of the National Commission started

functioning from 24 September 2003. The government is monitoring the disposal of cases by the

consumer courts through National Commission. As per the current statistics, since its inception

and up to 5.9.2008, 2559451 cases were filed out of which 2327035 cases were disposed of by

the District forums in various states of India.12

2.3.7 Jurisdiction under Consumer Protection Act, 1986

The District Forum has the jurisdiction to entertain complaints where the value of the goods or

services and the compensation, if any, claimed, is up to twenty lacks rupees.13

A State

Commission has the jurisdiction to entertain complaints where the value of the goods or services

and the compensation, if any, claimed exceeds twenty Lacks rupees but does not exceed 1 crore

rupees.14

It is also appellate forum for orders of the District forum. The National Commission has

the jurisdiction to entertain complaints where the value of goods and services and the

compensation exceeds one crore rupees and also hears the appeals against the orders of the State

Commission.15

2.3.8 Period of Limitation

A complaint is only admitted by any of the competent forums under CPA if it is filed within two

years from the date on which the cause of action has arisen but it may be entertained after the

said period after recording its reasons for condoning such delay, if the complainant satisfies the

District Forum, the State Commission or the National Commission that he had a sufficient cause

for not filing the complaint within period of two years. 16

2.3.9 Procedure to File a Complaint

A complaint can be filed in a District Forum or as per pecuniary jurisdiction in another forum

within local limits of whose jurisdiction the opposite party or any of the opposite parties resides

or carries on business, or has a branch office or personally works for gain. Class actions under

CPA Section 2 (1) (b) permits filing of a complaint by a consumer, any voluntary consumer

association registered under Companies Act, 1956 or under any other law, the State government

or Central Government, one or more consumers where number of consumers have same interest,

in case of death of a consumer, his legal representative may, makes a complaint. 17

2.3.10 Penalty

According to CPA, where a trader or the complainant fails to comply with an order made by the

relevant consumer forum, such person is liable to a punishment with imprisonment for a term

which is not less than one month but which may extend to three years or with fine of not less

than two thousand rupees but which may extend to ten thousand rupees or with both. 18

2.3.11 Criticism of CPA

Ever since the introduction of the consumer protection laws in western legislatures, the Indian

consumers have been excited about the prospects of improving their plight as consumers. India is

perhaps the only major economy in the world where a seller can unscrupulously plan any scam

against a consumer without the fear of prosecution by the government, the judiciary or any

statutory or regulatory agency. 25 years after the Consumer Protection Act, 1986, we continue

with this glorious tradition where politically connected scammers continue to threaten the very

fabric of this country's socialistic (read pro-consumer) framework.19

Though the spirit of the act

is laudable, the act suffers from many inanities, the important of them are the following.

2.3.11.1 Consumer Complaints

Under Section 12 of the act complaints in any goods sold or delivered or any services provided

may be filed with the District Forum by- The consumer to whom such goods are sold or

delivered or such services provided. Any recognized consumer association whether the consumer

to whom goods sold or delivered or services provided is a member of such organization or not.

Central or State Government, the complained under the act has to furnish the sample of defective

goods along with fee testing to the District Forum. The individual consumer who is hoodwinked

from morning to evening by various agencies and manufactures may not fined time as well as

money to lodge the complaint to District Forum .In the process of even if he is exploited, he will

silently suffer.

2.3.11.2 Interference of Politicians

One of the serious decencies of the consumer organization is they are reluctant to involve the

political parties, politicians of consequence and other political apparatus in their activities.

Whether one likes it or not one must relies that under the Indian circumstances nothing can be

thought of and worked out by isolation politics.

2.3.11. 3 Improper Functioning

The Act provides for the redressal of consumer grievances by the forum constituted at District,

State and National levels. The decision of the District Forum can be challenged in the State

Commission and National Commission .Again the decision of the National commission can be

challenged in the Supreme Court. The individual consumer can seldom afford to challenge the

decision given by the various courts because of his financial in capacity. As against the

individual consumer the manufacturing agencies who are financially sound can go with the

appeal to State and National Commission and even Supreme Court .All these contribute to delay

in getting a final award. The consumer may withdraw from the dispute at any stage.

2.3.11.4 Lack of Control

Though State Commission is headed by a retired by High Court Judge, he does not have any

control or spuriously powers what so ever the District Forums His duty is to receive the

complaints and appeals and disposed them .Since the District Forums and State Commission are

the direct control of Food and Civil Supplies Ministry they are reeling under the grip of the red

tape. The consumer redressal machinery in effect has become another department of the State

Government where work cutler is seldom seen.20

2.3.11.5 Politicization of Appointment of Member to the Fora

One of the issues which have hampered the effective functioning of the consumer courts in the

nature of appointment of members to the three- tier courts which is based on the political whims

and fancies. At present, the appointment of members has become purely a political issue like

those to the government owned boards, corporation and committees. Person who do not know

even the basis of consumer culture but wield political clout are being appointed to the District

Forums, which has deteriorated the qualitative functioning of the Forum.

2.3.11.6 Lack of Infrastructure Facilities

The performance of consumer courts is dismal and negligible. Lack of minimum facilities and

infrastructure for the effective functioning of the redressal system and the other administrative

matters such as staff and accommodation, paucity of funds, non filling up of vacancies

constitutes this .Some consumer courts lacked even stationary items. Consumer experts

frequently debate the impact the Consumer Protection Act, 1986 has had on the legal,

sociological and commercial ethos of our country. Across the two decades of its existence, of

course more funds have been diverted into consumer protection, more council has been formed

and more cases and complaints have come out in the open. But besides the lipstick on the pig, the

pig is still a pig. The plight of consumers remain the same; instead of approaching the civil court,

now they need to approach a consumer forum; instead of filing a civil complaint, they need to

file a consumer complaint.22

Only the players have changed, the game hasn't. With that said, as

we near a quarter century past the establishment of this supposedly stalwart legislation, it is not

entirely accurate to say there hasn't been any impact; haven't you threatened or heard anyone

threaten a seller with a consumer case in a consumer court. Statistics indicate that less than 1% of

the consumer disputes actually become consumer cases; yet, the consumer court system in this

country is clogged with so many disputes that will keep them occupied for the next 2-3 centuries.

2.4 Consumer Protection Rules, 1987

Section 30 of sub-section (1) of the Consumer Protection Act,1986(CPA) authorizes the central

government to make the rules for carrying out the provisions contained in clause (a) of sub

section (1) of section 2, clause (b) of subsection (2) of section 4, sub section (2) of section 5, sub

section (2) of section 12, clause (vi) of sub section (4) of section 13, clause (hb) of sub section

(1) of section 14 and section 19,clause (b) of sub section (1) and sub section (2) of section

20,section 22 and section 23 of CPA. In exercise of the powers conferred by sub-section (1) of

section 30 of the CPA the Central Government makes the rules namely Consumer protection

Rules, 1986.It were amended seven times in the years 1991, 1993,1995,1997,2004.2005 and last

in 2006 respectively to make it more effective and purposeful. It is to be remembered that the

words or expressions used in these rules can neither widen not restrict the definition of a term

contrary to explicit or implicit provision contained in the CPA itself. Nor it can take away what

has been given by the Act. It published in Gazette of India and came into force on dated 15th

April, 1987.

2.4.1 Recognition of Laboratory

The main purpose of enactment Consumer Protection Rules, 1987 (CPR) is to make viable

dispensation of consumer grievances by recognising laboratories. The applicant shall send

application, in triplicate, in the Performa prescribed by the Bureau of Indian Standards with the

relevant details to the Department concerned. The State Government on receiving the application

from the applicant, shall forward its two copies to the Bureau of Indian Standards to assess the

suitability of the laboratory from the standards prescribed by them Bureau of Indian Standards.

The fee charged by the Bureau of Indian Standards, for this purpose, shall be paid by the

applicant. Under Rule 2A (3) The State Government on receiving the recommendations and

approval of the Bureau of Indian Standards shall notify that laboratory as an 'appropriate

laboratory' for the purpose of Consumer Protection Act, 1986 for a period of three years.23

2.4.2 Constitution of Central Council &Working Groups

The CPR enunciates the Central Consumer Protection Council which consists of the following

members, not exceeding 35, namely :—(a) the Minister in-charge of Consumer Affairs in the

Central Government who shall be the Chairman of the Central Council. the Minister of State

(where he is not holding independent charge) or Deputy Minister in charge of Consumer Affairs

in the Central Government who shall be the Vice-Chairman of the Central Council; (c) the

Minister in-charge of Consumer Affairs of two of the States from each region as mentioned in

Schedule I to be changed by rotation on expiration of the term of the Council on each occasion;

(d) an administrator (whether designated as administrator or Lieutenant Governor), of a Union

Territory, to represent a Union Territory, as mentioned in Schedule II, to be changed by rotation

on expiration of the term of the Council on each occasion24

(e) two Members of Parliament—one

from the Lok Sabha and one from the Rajya Sabha; (f) representatives of the Central

Government Departments and autonomous organizations concerned with consumer interests—

not exceeding five; (g) The Registrar, National Consumer Disputes Redressal Commission, New

Delhi25

(h) representatives of consumer organizations from amongst the Indian members of the

International Organization, namely, Consumer International – not exceeding six, to be nominated

by the Central Government26

( i) representatives with proven expertise and experience who are

capable of representing consumer interests, drawn from amongst consumer organizations,

consumer activists, women, farmers, trade and industry – not exceeding five, one from each of

the regions specified in schedule annexed to these rules;(j) the Secretaries in-charge of

Consumer Affairs in the States to be nominated by the Central Government – not exceeding

three; (k) the Secretary in-charge of Consumer Affairs in the Central Government shall be the

member-secretary of the Central Council. The term of the Council shall be three years.27

Any

member may, by writing under his hand to the Chairman of the Central Council, resign from the

Council. The vacancies so caused or otherwise, shall be filled from the same category by the

Central Government and such person shall hold office so long as the member whose place he

fills would have been entitled to hold office, if the vacancy had not occurred.28

2.4.3 Procedure of the Central Council

The meeting of the Central Council shall be presided over by the Chairman. In the absence of the

Chairman, the Vice-Chairman shall preside over the meeting of the Central Council. In the

absence of the Chairman and the Vice-Chairman, the Central Council shall elect a member to

preside over that meeting of the Council. Each meeting of the Central Council shall be called by

giving, not less than ten days from the date of issue, notice in writing to every member. The

notice of a meeting of the Central Council shall specify the place and the day and hour of the

meeting and shall contain statement of business to be transacted thereat. The proceedings of the

Central Council shall not be invalid merely by reasons of existence of any vacancy in or any

defect in the constitution of the Council.29

For the purpose of performing its functions under the

Act, the Central Council may constitute from amongst its members, such working groups as it

may deem necessary and every working group so constituted shall perform such functions as are

assigned to it by the Central Council. The findings of such working groups shall be placed before

the Central Council for its consideration.30

2.4.4 National Commission Complaints Mechanism

The office of the National Commission shall be located in the Union Territory of Delhi.31

The

working days and office hours of the National Commission shall be the same as that of the

Central Government.32

The official seal and emblem of the National Commission shall be such

as the Central Government may specify.33

The sitting of the National Commission as and when

necessary, shall be convened by the President. The Central Government shall appoint such staff

as may be necessary to assist the National Commission in its day to day work and to perform

such other functions as are provided under the Act and these rules or assigned to it by the

President. The salary payable to such staff shall be defrayed out of the Consolidated Fund of

India.34

Every complaint filed under sub-section (1) of section 12, sub-section (1) of section 17

and clause (a) in sub-clause (1) of Section 21 of the CPA shall be accompanied by a fee, as

specified in the table given below in the form of crossed demand draft drawn on a nationalized

bank or through a crossed Indian Postal Order in favor of the President of the District Forum,

Registrar of the State Commission or the Registrar of the National Commission, as the case may

be, and payable at the respective place where the District Forum, State Commission or the

National Commission is situated.35

The table 2.1: Contains the Amount of fee payable in

National/State Commission and District Forum.

Table 2.1: Amount of fee payable in National/State Commission and District Forum

Sl.

No. Value of Goods or Services and the Compensation Claimed

Amount of fee

payable

(1) (2) (3)

District Forum

(1) Upto one lakh Rupees- For complainants who are under the

Below Poverty Line holding Antyodaya Anna Yojana cards. Nil

(2) Upto one lakh Rupees- For complainants other than Antyodaya

Anna Yojana card holders. Rs.100

(3) One lakh rupees and above but less than five lakh rupees Rs.200

(4) Five lakh rupees and above but less than Rs.10 lakh Rs.400

(5) Ten lakh rupees and above but not exceeding twenty lakh rupees Rs.500

State Commission

(6) Above twenty lakh and upto fifty lakh Rupees Rs.2000

(7) Above fifty lakh and upto one crore Rupees Rs.4000

National Commission

(8) Above one crore Rupees Rs.5000

Source: Rule 9A of Consumer Protection Rule, 1987

The complainant who is under the below poverty line shall be entitled for exemption of payment

of fee only on production of an attested copy of the Antyodaya Anna Yojana cards. 36

2.4.5 Powers of the National, State and District Consumer Forum

The National Commission, the State Commission and the District Forum shall have power to

require any person,—(a) to produce before, and allow to be examined and kept by an officer of

the National Commission, the State Commission or the District Forum, as the case may be,

specified in this behalf, such books, accounts, documents or commodities in the custody or under

the control of the person so required as may be specified or described in the requisition, if the

examination of such books, accounts, documents or commodities are required for the purpose of

this Act; (b) to furnish to an officer so specified, such information as may be required for the

purpose of this Act.

Where during any proceedings under CPA, the National Commission, the State Commission or

the District Forum, as the case may be, has any ground to believe that any book, paper,

commodity or document which may be required to be produced in such proceedings, are being or

may be, destroyed, mutilated, altered, falsified or secreted, it may, by written order, authorize

any officer to exercise the power of entry and search of any premises. Such authorized officer

may also seize such books, papers, documents or commodities as are required for the purpose of

the said Act. Provided that such seizure shall be communicated to the National Commission, the

State Commission or the District Forum, as the case may be, as soon as it is made or within a

period not exceeding 72 hours of making such seizure after specifying the reasons in writing for

making such seizure. The National Commission, the State Commission or the District Forum, as

the case may be, on examination of such seized documents or commodities, as the case may be,

may order the retention thereof or may return it to the party concerned. 37

2.4.6 Consumer Welfare Fund

Where an order is passed by the National Commission in exercise of the powers vested under

clause (hb) of sub-section (1) of Section 14 of CPA directing the opposite party to pay such

amount as determined by it on account of loss or injury suffered due to defects in goods

complained gains or alleged deficiency of service to a large number of consumers, who are not

Identifiable conveniently, such sum shall be credited by the National Commission in the

Consumer Welfare Fund established by the Central Government under section 12 (C) of the

Central Excise Act, '1944 (1 of 1944). Any amount credited to the said Fund shall be utilized in

accordance with the provisions of the Consumer Welfare Fund Rules, 1992.38

2.4.7 Service Condition of President and Members

The members shall be paid twenty-three thousand rupees per month by way of honorarium

provided that the members, who are retired Judges of High Courts or retired Secretaries to the

Government of India, shall have the option to either receive consolidated honorarium of twenty-

three thousand rupees per month or receive remuneration of last pay drawn less pension. A

woman who has not held an office of profit earlier, on appointment as a member shall be entitled

to a pay in the scale of Rs. 24050-26000 per month along with other benefits. The members shall

be provided with Government accommodation or receive house rent allowance of eight thousand

rupees per month in lieu thereof. The members shall be paid conveyance allowance at the rate of

ten thousand rupees per month, if no chauffeur driven government vehicle is provided in which

event one hundred fifty litters of petrol shall be supplied or the price therefore shall be paid. The

members shall be entitled to one thousand free calls for the telephone installed at their residence,

with STD and ISD facilities. The members shall be entitled to fifteen days casual leave in a year.

The members shall be entitled to travelling and daily allowances on official tours at the same

rates as are admissible to group 'A' Officers of the Central Government. The honorarium or the

salary, as the case may be, and other allowances shall be defrayed out of the Consolidated Fund

of India.39

The President and a member of the National Commission shall have to take an undertaking that

he does not and will not have any such financial or other interest as is likely to affect

prejudicially his functions as such member. The President or a member may. (a) by writing under

his hand and addressed to the Central Government resign his office at any time but his office

shall become vacant only when such resignation is accepted by the Central Government,(b) be

removed from his office in accordance with the provisions of Rule 13. The terms and conditions

of service of the President and the members shall not be varied to their disadvantage during their

tenure of office. A casual vacancy caused by resignation or removal of the President or any other

member of the National Commission under sub-rule When the office of the President of the

National Commission is vacant or a person occupying such office is by reason of absence or

otherwise, unable to perform the duties of his office, the same shall, save as otherwise provided

in the proviso to Section 22 D is performed by the senior most member of the National

Commission. The President or any member ceasing to hold office as such shall not hold any

appointment in or be connected with the management or administrations of an organization

which have been the subject of any proceeding under the Act during his tenure for a period of 5

years from the date on which he ceases to hold such office.40

2.4.8 Procedure of Compliant Before National Commission

A complaint containing the following particulars shall be presented by the complainant in person

or by his agent to the National Commission or be sent by registered post, addressed to the

National Commission:(a) the name, description and the address of the complainant; (b) the

name, description and address of the opposite party or parties, as the case may be, so far as they

can be ascertained;(c) the facts relating to the complaint and when and where it arose;(d)

documents in support of the allegations contained in the complaint;(e) the relief which the

complainant claims. The National Commission shall, in disposal of any complaint before it, as

far as possible, follow the procedure and conditions including the provisions governing

adjournments as laid down in Sections 12 and 13 in relation to the complaints received by the

District Forum, with such modification as may be considered necessary by the Commission.41

On the date of hearing or any other date to which hearing could be adjourned, it shall be

obligatory on the parties or their agents to appear before the National Commission. Where the

complainant or his agent fails to appear before the National Commission on such days, the

National Commission may in its discretion either dismiss the complaint for default or decide it

on merits. Where the opposite party or its agent fails to appear on the date of hearing the

National Commission may decide the complaint ex-parte. The National Commission may, on

such terms as it deems fit and at any stage of the proceedings, adjourn the hearing of the

complaint but the complaint shall be decided as far as possible within a period of three months

from the date of notice received by opposite party where complaint does not require analysis or

testing of commodities and within five months if it requires analysis or testing of commodities.42

In the event of a complaint being disposed of after the period specified in sub-rule (4) of rule 14,

the National Commission shall record in writing, the reasons for the delay in such disposal. If

after the proceedings conducted under sub-rule (3) of mentioned rule, the National Commission

is satisfied with the allegations contained in the complaint, it shall issue orders to the opposite

party or parties, as the case may be, directing him or them to take one or more of the things as

mentioned in sub-section (1) of Section 14.The National Commission shall also have the power

to direct that any order passed by it, where no appeal has been preferred under Section 23 or

where the order of the National Commission has been affirmed by the Supreme Court under that

section, be published in the Official Gazette or through any other media and no legal proceedings

shall lie against the National Commission or any media for such publication.43

2.4.9 Appeals before National Commission

Every appeal filed in terms of Section 19 shall be accompanied by such amount as specified in

the second proviso to the said section and such amount may be remitted in the form of a crossed

Demand Draft drawn on a nationalized bank in favour of the Registrar, National Commission,

payable at Delhi. The National Commission dealing with the appeals filed before them shall

follow the provisions of Section 19 and 19A as may be required to hear the appeals filed before

the Commission, 'nationalized bank' means a corresponding new bank specified in the First

Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of

1970) or a corresponding new bank specified in the First Schedule to the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).44

A memorandum shall be presented by the appellant or his agent to the National Commission in

person or be sent by registered post addressed to the Commission. Every memorandum filed

under sub-rule (1) of rule 15 shall be in legible handwriting preferably typed and shall set forth

concisely under distinct heads, the grounds of appeal without any argument or narrative and such

grounds shall be numbered consecutively. Each memorandum shall be accompanied by a crossed

demand draft as referred to in rule 14 A and by a certified copy of the order of the State

Commission appealed against and such of the documents as may be required to support grounds

of objection mentioned in the memorandum. When the appeal is presented after the expiry of the

period of limitation as specified in the Act, the memorandum shall be accompanied by an

application supported by an affidavit setting forth the facts on which the appellant relies to

satisfy the National Commission that he has sufficient cause for not preferring the appeal within

the period of limitation. The appellant shall submit four copies or such number of copies of the

memorandum to the Commission for official purpose. The appellant shall not, except by leave

of the National Commission, urge or be heard in support of any ground of objection not set forth

in the memorandum but the National Commission, in deciding the appeal, may not confine to the

grounds of objection set forth in the memorandum. The Commission shall not rest its decision on

any other ground other than those specified in the memorandum unless the party who may be

affected thereby, has been given, an opportunity of being heard by the National Commission.45

No adjournment shall ordinarily be granted by the National Commission, unless sufficient cause

is shown and the reasons for grant of adjournment have been recorded in writing by the

Commission. The National Commission may also adjourn the hearing of the appeal suo motu, on

such terms as it may think fit and at any stage of the proceedings for reasons to be recorded in

writing. The appeal shall be decided, as far as possible, within ninety days from the date of its

admission. In the event of an appeal being disposed of after the period so specified, the National

Commission shall record in writing the reasons of the same at the time of disposal of the said

appeal. The order of the National Commission shall be communicated to the parties concerned

free of cost.46

2.4.10 National Commission and Signing of Orders

In every proceeding of the National commission shall be conducted by the President or the senior

most member and least two member sitting together and Every order made by the National

Commission shall be signed by the President or the senior most member as provided under

Section 22D and at least two members who conducted the proceeding and if there is any

difference of opinion among themselves, the opinion of majority shall be the order of the

National Commission.

Every proceeding of the National Commission shall be conducted by the President or the senior

most member and at least two members thereof sitting together except when a bench is

constituted by the President of the National Commission with one or more members as he may

deem fit: Provided that one member or members for any reason are unable to conduct

proceedings till it is completed, the President or the senior most members, as provided in Section

22D of the Act, shall conduct such proceedings from the stage at which it was last heard by the

previous member. Every order made by the National Commission shall be signed by the

President or the senior most member as provided under Section 22D and at least two members

who conducted the proceeding and if there is any difference of opinion among themselves, the

opinion of majority shall be the order of the National Commission: Provided that where the

proceeding is conducted by the President or the senior most member as provided under Section

22D and three members thereof and they differ on any point or points, they shall state the point

or points on which they differ and refer the same to the other member for hearing on such point

or points and such point or points shall be decided accordingly to the opinion of the majority of

the National Commission. 47

2.4.11 Appeals before Supreme Court

Every appeal filed before the Supreme Court in terms of Section 23 shall be accompanied by an

amount as provided in the second proviso to that section and such amount may be remitted in the

form of a crossed Demand Draft drawn on a nationalized bank in favor of Registrar, Supreme

Court, payable at Delhi. Explanation.- In this rule, 'nationalized bank' means corresponding new

bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of

Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank specified in the First Schedule

to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) 48

2.5 Consumer Protection Regulations, 2005

Section 30 A of CPA, empowers to the National commission to makes the regulation. The

National commission may with the previous approval of the central government, by notification,

make regulations not inconsistent with the CPA to provide for all maters for which provision is

necessary or expedient for the purpose of giving effect to the provision of said Act. In exercise

of the powers conferred by Section 30A of the Consumer Protection Act, 1986 (68 of 1986), the

National Consumer Disputes Redressal Commission with the previous approval of the Central

Government, hereby makes the following regulations, namely:-

2.5.1 Arrangements in Consumer Forum & Dress Code

A consumer forum, being not a regular court, shall have the arrangements as to depict it distinct

from a court. In the hall in which the Consumer Forum shall hear the parties, the dais may not be

kept more than 30c.m. in height than the place earmarked for the parties to occupy. At the dais

of the hall, the President and the members of the Consumer Forum shall use the same type of

chairs at the same level and these chairs need not have high backs.49

The President and members

of every Consumer Forum while presiding over the Benches,- (a) shall wear simple and sober

dress; (b) shall not wear- (i) flashy dress or dress display any affluence; (ii) Jeans or T-shirts. (iii)

as if they are holding Courts as Judges of a High Court or a District Court.(2) The advocates

shall be allowed to appear in the usual dress as prescribed by the High Court but without the

gown.50

The Consumer Forum for hearing matters shall be from 10.30 am to 1.00 p. m and 2.00

p. m to 4.00 p. m on all working days of the Central Government in the case of the National

Commission and on all working days of the State Government in the case of the State

Commission and the District Forum.51

2.5.2 Complaints, Appeals and Revisions Petitions

A complaint shall hereinafter be referred to as Consumer Complaint (C.C.) instead of O.P., e.g.,

C.C. No.4 of 2010.52

An appeal shall be referred to as F.A. Revision Petition as R.P., Execution

.Application as E.A, Transfer Application T.A. and Review as RA containing the number and the

year of filing.53

2.5.3 Issue of Notice & Adjournment

Whenever the Consumer Forum directs the issuance of a notice in respect of a complaint, appeal

or revision petition, as the case may be, to the opposite party(ies)/respondent(s), ordinarily such

notice shall be issued for a period of 30 days and depending upon the circumstances of each case

even for less than 30 days.54

When there is a question of raising presumption of service, 30 days

notice shall be required. The notices are sought to be effected by a courier service, it shall be

ascertained that the courier is of repute. While appointing the courier for the purpose of effecting

service, security deposit may also be taken.55

Along with the notice, copies of the complaint,

memorandum of grounds of appeal, petitions as the case may be and other documents filed shall

be served upon the opposite party (ies) /respondent(s).56

After the opposite party or respondent

has put in appearance, no application or document shall be received by the Registrar unless it

bears an endorsement that a copy thereof has been served upon the other side.57

Every proceeding before a Consumer Forum shall be conducted as expeditiously as possible and

as per the requirements of the Act. The Consumer Forum shall record the reasons for any

adjournment made by it. (The cost of adjournment, if asked by the opposite party or parties, shall

not be less than five hundred rupees per adjournment and could be more depending upon the

value and nature of the complaint as may be decided by the Consumer Forum. The complainant,

appellant or petitioner, as the case may be, may also be burdened with cost unless sufficient

cause is shown for seeking adjournment. In the circumstances of a particular case, the amount of

cost imposed may be less than five hundred rupees but in no case less than one hundred rupees.

The cost imposed may be given to the other party or parties to defray his or their expenses or be

deposited in the Consumer Legal Aid Account to be maintained by the respective Consumer

Forum, as the Consumer Forum may order.58

If any adjournment is granted without awarding

cost, the order sheet shall mention the reasons thereof. All orders adjourning the matter shall be

signed by the President and members constituting the Bench and not by the Court Master or

Bench Clerk. Non-availability of a lawyer who is representing the party shall not be a ground for

seeking adjournment of the matter unless absence is beyond the control of the lawyer such as his

sudden illness or bereavement in the family.59

2.5.4 Period of Limitation

Subject to the provisions of Sections 15, 19 and 24A of CPA, the period of limitation in the

following matters shall be as follows:- Revision Petition shall be filed within ninety days from

the date of the order or the date of receipt of the order as the case may be; Application for setting

aside the ex-parte order under Section 22A or dismissal of the complaint in default shall be

maintainable if filed within thirty days from the date of the order or date of receipt of the order,

as the case may be; An application for review under of Section 22 (2) shall be filed to the

National Commission within 30 days from the date of the order or receipt of the order, as the

case may be; The period of limitation for filing any application for which no period of limitation

has been specified in the Act, the rules of these regulations shall be thirty days from the date of

the cause of action or the date of knowledge.60

The Consumer Forum may condone the delay in

filing an application or a petition referred to in sub-regulation (1) if valid and sufficient reasons

to its satisfaction are given.61

2.5.5 Appearance of Voluntary Consumer Organizations

Recognized Consumer Organizations have a right of audience before the Consumer Forum. An

authorization of a Voluntary Consumer Organization may be by way of special power of attorney

executed on a non-judicial paper or even on plain paper duly attested by a Gazetted Officer or a

Notary Public. The Power of Attorney holder shall be entitled to engage a counsel, if authorized

to do so.62

A Voluntary Consumer Organization can engage a counselor or an advocate of its

choice or it can itself represent through one of its office bearers as per the rules governing it. In

case of a complaint where the Voluntary Consumer Organization is a complainant along with the

consumer himself and the dispute affects the complainant individually, he can withdraw the

complaint: Provided that if the issue involves unfair trade practice or restrictive trade practice a

Voluntary Consumer Organization may continue to proceed with the complaint even if the

complainant wishes to withdraw the same.63

A Consumer Forum has to guard itself from touts

and busybodies in the garb of power of attorney holders or authorized agents in the proceedings

before it. While a Consumer Forum may permit an authorized agent to appear before it, but

authorized agent shall not be one who has used this as a profession: Provided that this sub-

regulation shall not apply in case of advocates. An authorized agent may be debarred from

appearing before a Consumer Forum if he is found guilty of misconduct or any other malpractice

at any time.64

2.5.6 Order & Direction

Any ex-parte interim order issued by the Consumer Forum shall stand vacated after 45 days if in

the meanwhile the objections to the interim order are not heard and disposed of.65

An order on the

top right hand comer shall show as to when the complaint was filed and the date of the order.

The cause title of the order shall contain the names of all the parties with their addresses. In the

body of the order it is desirable that after mentioning the complainant or the opposite party, their

names as shown in the title mentioned and parties thereafter may not be mentioned as

complainant or opposite party No.1 or opposite party No.2, etc. The cause title shall also clearly

show if the appellant or respondent was the complainant or opposite party. The order of a

Consumer Forum disposing of a matter shall be as short and precise as practicable and

unnecessary long quotations from the judgments of the higher courts or otherwise shall be

avoided. When a copy of the order is sent to a party, the mode by which it is sent and the date on

which it is sent shall be stamped on the last page of the order. The Consumer Forum shall pass

final order invariably within fifteen days of the conclusion of the arguments.66

The practice of directions is followed in the procedure. The National Commission shall be

entitled to issue practice directions from time to time as may be necessary for the proper conduct

of the cases before Consumer Forum including prescribing forms for complaints, notices,

returns, certificate to be issued to the collector and the like.67

Where a party appears in person

and is illiterate, the Court Master or Bench Clerk shall give to that party the next date of hearing

in writing.68

2.5.7 Miscellaneous

All proceedings before the consumer forum shall be made by the parties and their counsel to

avoid the use of Code Civil Procedure, 1908 69

and the consumer forum shall not insist upon the

parties to engage a lawyer.70

Every State Commission and every District Forum shall take steps

for its computerization and networking. The Consumer Forum shall give proper respect and

courtesy to the parties who appear in person and shall provide separate accommodation in the

Hall for the convenience of the parties. The Consumer Forum shall not insist upon the parties to

engage advocates. The Fees collected for inspection of the documents and supply of certified

copies shall be deposited in the account maintained for the purpose of depositing fee for filing a

complaint as prescribed by the Central Government by rules.71

The cases filed by or against the

senior citizens, physically challenged, widows and persons suffering from serious ailments shall

be listed and disposed of on a priority basis.72

2.6 Uttar Pradesh Consumer Protection Rules, 1987

Section 30 (2) of CPA provides the power to the State Government to makes rules for carrying

out the provisions contained in CPA. The State of Uttar Pradesh made the rules which is known

as Uttar Pradesh Consumer Protection Rules, 1987 (UPCPR) and came into force on dated 31st

August, 1987.73

It consists on eight rules which are discussed as under:

2.6.1 Composition of the State Council

The State Government by notification establish with effect from such date as it may specify in

such notification, a council to be known as State Consumer Protection Council. The State

Council shall consist of the following members, namely: Official members: (a) The Minister

In charge of Food and Civil Sup Department, Uttar Pradesh- Chairman; (b) Principal Secretary

or Secretary, as the case may be, to the State Government in Food and Civil Supplies

Department –Member; (c) Principal Secretary or Secretary, as the case may be, to the State

Government in Industries Department –Member (d) Principal Secretary or Secretary, as the

case may be, to the State Government in Medical and Health Department - Member

(e) Principal Secretary or Secretary, as the case may be, to the State Government in Agriculture

Department -Member: (f) Commissioner, Food and Civil Supplies Department – Member

(g) Principal Secretary or Secretary, as the case may be, to the State Government in Transport

Department -Member (h) Principal Secretary, Judicial and Legal Remembrance to the State

Government -Member (i) General Manager, Telecommunication – Member (j) Director

General ,Consumer Protection, Uttar Pradesh-Member (k) Principal Secretary or Secretary, as

the case may be, to the State Government in Avas Vibhag –Member74

(l) Director of

Information, Uttar Pradesh – Member (m) Drug Controller, Uttar Pradesh –Member

(n) Managing Director, Uttar Pradesh Food and Essential Commodities Corporation, Uttar

Pradesh- Member (o) Managing Director, Provincial Cooperative Federation, Uttar Pradesh-

Member (p) Principal Secretary or Secretary as the case may be, to the State Government in

Institutional Finance Department –Member (q) Managing Director, Rajya Mandi Parishad, Uttar

Pradesh –Member: (r) Executive Director, Uttar Pradesh Employees Welfare Corporation –

Member (s) Regional Officer, Indian Standard Organization, Uttar Pradesh -Member (t) State

Co-ordinator, Indian Oil Corporation, Uttar Pradesh-Member:(u) Principal Secretary or

Secretary, as the case may be, to the State Government in Nagar Vikas Vibhag, Uttar Pradesh –

Member (v) Secretary, Uttar Pradesh State Electricity Board, Lucknow Member: (w) Divisional

Manager,Northern Railway, Lucknow; Member (x) Anchalik Prabandhak Life Insurance

Corporation Member: (y) Secretary, Co-operative Department, Uttar Pradesh Shasan –Member75

The category of non official member includes: (b) Member, Legislative Council nominated by

the State Government with the approval of the Chairman-Member; (b) the Representatives of

voluntary organizations/ eight agencies, representing the Consumer interest nominated by the

State Government – Member; (c) The representatives of voluntary organizations/ eight agencies,

representing the Consumer interests nominated by the State Government-Member;(d)

Representative of farmers/ services undertakings/ manufacturer/ retailers and major trade

organization such as Avadh Chamber of Commerce, Udyog Vyapar Mandal, Punjab Haryana

Chamber of Commerce etc- Member; (e) Noted persons working in the field of Consumer

protection or in public interest in the important areas of Society nominated by State Government

sixteen- Member.76

The members of the Legislative Council and Legislative Assembly shall hold

office till they are members of the Legislative Council or the Legislative Assembly, as the case

may be, and the rest of the non-official members shall hold office for a period of three years

from the date of their nomination.77

2.6.2 Procedure of the State Council

The meeting of the State Council shall be presided over by the chairman. In the absence of the

chairman the State Council shall select a member to preside over the meeting of the Council.

Each meeting of the State Council shall be called by giving, not less than ten days from the date

of issue, notice in writing to every member, hour of the meeting and shall contain statement of

business to be transacted in the meeting.78

No proceedings of the State Council shall be invalid

merely by reasons of existence of any vacancy or any defect in the Constitution of the Council.

For the purpose of performing its functions under the Act, the State Council may constitute from

amongst its members, such working groups as it may deem necessary and every working group,

so constituted shall perform such functions as are assigned to it by the State Council. The

findings of such working groups shall be placed before the State Council for its consideration.79

The non-official member shall be entitled to first class railway fare for attending a meeting and

for return journey and a daily allowance of one hundred rupees per day for attending a meeting

of the State Council or any working group members of Legislative Assembly/Legislative Council

shall be entitled to traveling and daily allowances at such rates as are admissible to such

members. The resolutions passed by the State Council shall be recommendatory in nature.80

2.6.3 Terms and Conditions of the President and Member

The President of the District Forum shall receive the salary of the Judge of a District Court if

appointed on whole time basis or an honorarium of Rs. 200 per day if appointed on part time

basis. Other members if sitting on whole time basis shall receive a consolidated honorarium of

Rs. 4,000 per month and is setting on part time basis, a consolidated honorarium of Rs. 150 per

day for the sitting. President of the District Forum shall receive House Rent Allowance of Rs.

800 per month if appointed on whole time basis and no Government accommodation is provided

to him. A member of the District Forum shall get House Rent Allowance of Rs. 600 per month if

no Government accommodation is provided to him. 81

The President and the Members of the District Forum shall be entitled to such traveling

allowance and daily allowance on official tour as are admissible to Grade I Officer of the State

Government The salary, honorarium and other allowances shall be defrayed out of the

Consolidated Fund of the State Government.82

Before appointment, President and Members of

the District Forum shall have to take an undertaking that he does not and will not have any such

financial or other interests as is likely to affect prejudicially his functions as a member. In

addition to provisions of Section 10 (2) of CPA, State Government may remove from the office

the president and member of a District Forum who:- (a) has been adjudged an insolvent, or

(b)has been convicted of an offence which in the opinion of the State Government involves

moral turpitude, or (c) has become physically or mentally incapable of acting as such member, or

(d) has acquired such financial or other interest as it likely to affect prejudicially his functions as

a member, or(e) has so abused his position as to render his continuance in office prejudicial to

the public interest, or (f) does not pass judgment or order possible under Act, and in conformity

with the earlier judgment and the act and does not display absolute, integrity good conduct and

dutifulness.(g) is guilty of an explained absence up to 7 days without permissions.83

The

President or member shall not be removed from his office on the ground specified in clauses (b)

and (c) of this sub-rules except on an inquiry held by State Government in accordance with such

procedure as it may specify in this behalf and the member is found to be guilty on such ground.84

The terms and conditions of the service of the President and the Members of the District Forum

shall not be varied to their disadvantage during their tenure of office. Where any vacancy occurs

in the office of the President of the District Forum, the senior-most (in order of appointment)

Member of District Forum, holding office for the time being, shall discharge the functions of the

President until a person appointed to fill such vacancy assumes the office of the President of the

District Forum. When the President of the District Forum is unable to discharge the functions

owing to absence, illness, or any other cause, the senior-most (in order of appointment) Member

of the District Forum shall discharge the functions of the President until the day on which the

President resumes the charge of his functions. The President or any Member ceasing to hold

office as such shall not hold any appointment in or be connected with the management or

administration of an organization which have been the subject of any proceeding under the Act

during his tenure for a period of 5 years from the date on which he cease to hold such office.85

2.6.4 Place and Procedure of District Forum

The Office of the District Forum shall be located at the headquarter of the District. When State

Government decides to establish a single District Forum having jurisdiction over more than one

District, it shall notify the place and jurisdictions of the District Forum so established.86

The

working days and the office hours of the District Forum shall be the same as that of the State

Government. The official seal and emblem of the District Forum shall be as the State

Government specify. Sitting of the District Forum, as and when necessary, shall be convened by

the President. No act or proceeding of the District Forum shall be invalid by reasons only of the

existence of any vacancy among its members or any defect in its constitution.87

The State

Government shall appoint such staff, as may be necessary to assist the District Forum in its day

to day work and perform such other functions as are provided under these rules, or assigned to it

by the President. The salary payable to such staff shall be defrayed out of the Consolidated Fund

of the State Government.88

Where the opposite party admits the allegation made by the complainant the District Forum shall

decide the complaint on the basis of the merit of the case and documents present before it. If

during the proceedings conducted under Section 13 of mentioned Act, District Forum fixes a

date for hearing of the parties, it shall be obligatory on the complainant and opposite party or its

authorized agent to appeal before the District Forum on such date of hearing or any other date to

which hearing could be adjourned. Where the complainant or his authorized agent fails to appear

before the District Forum on such day, the District Forum may in its discretion either dismiss the

complaint for default or decide it on merit. Where the opposite party or its authorized agent fails

to appear on the day of hearing, the District Forum may decide the complaint ex parte.89

While

proceeding under sub-rule (8), the District Forum may on such terms as it may think fit and at

any stage, adjourn the hearing of the complaint but not more than one adjournment shall

ordinarily be given and the complaint should be decided within 90 days from the date of notice

received by the opposite party when complaint does not require analysis or testing of the goods

and within 150 days if it requires analysis or testing of the goods. Orders of the District Forum

shall be signed and dated by the Members of the District Forum constituting the Bench and shall

be communicated to the parties free of charge. 90

2.6.5 Analysis and Testing of Goods

Under Section 13(1) (c) of CPA, the District Forum may direct the complainant to provide more

than one sample of the goods in clean containers with stopper properly fixed on them.91

On

receiving the samples of such goods, the District Forum shall seal it and fix labels on the

containers carrying following information:(i) name and address of the appropriate laboratory to

whom sample will be sent, for analysis and test;(ii)name and address of the District Forum;(iii)

case number; (iv) seal of the District Forum.92

The sample will be sent to the appropriate

laboratory by the District Forum for sending report within 45 days or within such extended time

as may be granted by the District Forum after specifying the nature of the defect alleged and date

of submission of the report.93

2.6.6 Terms and Conditions of President and Members

Section 16 (1) of said Act and rule 6 says, the President of the State Commission shall receive

the salary of the judge of the High Court of appointed on whole time basis, or a consolidated

honorarium of Rs. 250 per day for the sitting if appointed on part time basis. Other members if

sitting on whole time basis shall receive a consolidated honorarium of Rs. 6,000 per month and if

sitting on part time basis a consolidated honorarium of Rs. 200 per day for the sitting.94

The

President and the Members of the State Commission shall be entitled to rent free Government

accommodation. If no such accommodation is provided to the President or Member of the State

Commission he shall get house rent allowance of Rs. 1,500 per month.95

The President and the

Members of the State Commission shall be eligible for such traveling allowance and daily

allowance on official tour as are admissible to Grade I Officer of the State Government. The

salary, honorarium, other allowances shall be defrayed out of the Consolidated Fund of the State

Government.96

The President of the State Commission shall hold office for a term of five years or

up to the age of 70 years whichever is earlier and shall not be eligible for renomination.97

The

Member of the State Commission shall hold office for a term of five years or up to the age of 65

years whichever is earlier and shall not be eligible for re nomination.98

The President and

Members may:- (a) by writing under his hand and addressed to the State Government resign his

office any time; and (b) be removed from his office in accordance with provisions of sub-rule (5)

of rule 6.

The State Government may remove from Office, President or a Member of the State

Commission who-(a) has been adjudged as insolvent; or involves moral turpitude; or (b)has

become physically or mentally incapable of acting as such member;(c) has acquired such

financial or other interest as is likely to affect prejudicially his functions as a member; or (d)has

so abused his position as to render his continuance in office prejudicially his functions as a

member, or Provided that the President or Member shall not be removed from his office on the

ground specified in clauses (c) and (d) of sub-rule (5) Except on an inquiry held by State

Government in accordance with such procedure as it may specify in this behalf and finds the

member to be guilty of such ground. Before appointment, the President and Members of the

State Commission shall have to take an undertaking that he does not and will not have any such

financial or other interests as is likely to affect prejudicially his functions as such member.99

The terms and conditions of the service of the President and the Members of the State

Commission shall not be varied to their disadvantage during their tenure of office. Every

vacancy caused by resignation and removal of the President or any other Member of the State

Commission under sub-rule (4) or otherwise shall be filled by fresh appointment.100

Where any

such vacancy occurs in the office of the President of the State Commission, the senior most (in

order of appointment) member holding office for the time being, shall discharge the functions of

the President until a person appointed to fill such vacancy assumes the office of the President of

the State Commission.101

When the President of the State Commission is unable to discharge the

functions owing to absence, illness or any other cause, the senior-most (in order of appointment)

Member of the State Commission shall discharge the functions of President until the day on

which the President resumes the charge of his functions. The President or any Member ceasing to

hold office as such shall not hold any appointment in or be connected with the management or

administration of an organization which have been the subject of any proceeding under the Act

during his tenure for a period of 5 years from the date on which he ceases to hold such office.102

2.6.7 Matters relating to State Commission

Office of the State Commission shall be located at the capital of the State. The working days and

the office hours of the State Commission shall be same as that of the State Government. The

official seal and emblem of the State Commission shall be such as the State Government may

specify. Sitting of the State Commission, as and when necessary, shall be convened by the

President.103

No act or proceedings of the State Commission shall be invalid by reason only of

the existence of any vacancy among its members or any defect in its constitution thereof. The

Government shall appoint such staff, as may be necessary to assist the State Commission in its

work and perform such other functions as are provided under these rules or assigned to it by the

President. The salary payable to such staff shall be defrayed out of the Consolidated Fund of the

State Government.104

Where the opposite party admits the allegation made by the complainant,

the State Commission shall decide the complaint on the basis of the merit of the case and

documents present before it. If during the proceedings conducted under section 13, State

Commission fixes a date for hearing of the parties. It shall be obligatory on the complainant and

opposite party or his authorized agents to appear before the State Commission on such date of

hearing or any other date to which hearing could be adjourned. Where the complainant or his

authorized agent fails to appear before the State Commission on such day, the State Commission

may in its discretion either dismiss the complaint for default or decide it on merits where the

opposite party or its authorized agent fails to appear on the day of hearing, the State Commission

may decide the complaint ex parte.105

While proceeding under sub-rule (8), the State Commission may on such terms as it may, think

fit and at any stage, adjourn the hearing of the complaint but not more than one adjournment

shall ordinarily be given and the complaint should be decided within 90 days from the date of

notice received by the opposite party where complaint does not require analysis or testing of the

goods and within 150 days if it requires analysis or testing of the goods.106

Orders of the State

Commission shall be signed and dated by the members of the State Commission constituting the

Bench and shall be communicated to the parties free of charge.107

2.6.8 Procedure for Hearing Appeal

Any person aggrieved by an order made by the District Forum may prefer an appeal against such

order to the State Commission. The form and manner of appeal have been provided under section

15 of the Act and rule 8 of the rules deals with the procedure of hearing of appeal by the State

Commission. Memorandum shall be presented by the appellant or his authorized agent to the

State Commission in person or be sent by registered post addressed to the Commission.108

Every

memorandum filed under sub-rule (1) shall be in legible handwriting preferably typed and shall

set forth concisely under distinct heads, the grounds of appeal without any argument or narrative

and such grounds be numbered consecutively.109

Each memorandum shall be accompanied by

the certified copy of the order of the District Forum appealed against and such of the documents

as may be required to support grounds of objection mentioned in the memorandum.110

When the

appeal is presented after the expiry of the period of limitation as specified in the Act, the

memorandum shall be accompanied by an application supported by an affidavit setting forth the

fact on which the appellant relies to satisfy the State Commission that he has sufficient cause for

not preferring the appeal within the period of limitation. The appellant shall submit four copies

of the memorandum to the State Commission for official purpose.111

On the date of hearing or

any other day to which hearing may be adjourned, it shall be obligatory for the parties or their

authorized agents to appear before the State Commission.

If appellant or his authorized agent fails to appear on such date, the State Commission may, in

its discretion either dismiss the appeal or decide it on the merit of the case. If respondent or his

authorized agent fails to appear on such date, the State Commission shall proceed ex parte and

shall decide the appeal ex parte on the merits of the case.112

The appellant shall not, except by

leave of the State Commission, urge or be heard in support of any ground of objection not set

forth in the memorandum but the State Commission, in deciding the appeal, shall not confine to

the grounds of objection set forth in the memorandum or taken by leave of the State Commission

under this rule: Provided that the Commission shall not rest its decision on any other grounds

unless the party who may be affected thereby, has been given, at least one opportunity of being

heard by the State Commission.113

The State Commission may, on such terms as it may think fit and at any stage, adjourn the

hearing of the appeal, but not more than one adjournment shall ordinarily be given and the

appeal should be decided within 90 days from the first date of hearing. Order of the State

Commission on appeal shall be signed and dated by the Members of the State Commission

constituting the Bench and shall be communicated to the parties free of charge.114

On complaint

received against the full time President, member of Districts Forum and the State Commission,

an enquiry shall be held by Principal Secretary or Secretary as the case may be to Government of

Uttar Pradesh Food and Civil Supplies Department or by an officer of Government nominated by

him. On complaint received against such Part time President who is working District Judge or

Additional District Judge inquiry shall be held by the High Court. The complaints received

against the President of the State Commission shall be inquired into by any retired Chief Justice

of any High Court nominated by the State Government. On being found guilty on the basis of the

findings of the aforesaid inquiry the State Government may remove the President or member of

the District Forum and the State Commission from their office on grounds specified in sub-rule

(5) of rule 3 and sub-rule (5) of rule 6 as the case may be of the said rules.

Note & References

1.http//www.cyclex.in/…./consumer rights education…awareness-trust-10675654

2.http//www.citeher.com/research.php?option…

3. Object of the Consumer Protection Act, 1986 (68 of 1986)

4. Id Section 6

5.Id Section 7

6.Id Section 2

7.Id Section 14

8.(1991) 2 CPJ 644]

9.(1996) 4 SCC 704

10. (2006) 4 SCC 644

11. (2004) 1 SCC 305

12. Section 9, Consumer Protection Act, 1986.

13. Id Section 11

14. Id Section 17

15. Id Section 21

16. Id Section 24 A

17. Id Sections 9 (2) &17 (2)

18. Id Section 27

19. http://www.consumerlaw.in

20. H.S. Anitha, “Consumer Protection- Still A Far Cry?”16 (1) Indian Journal of Marketing

3-7 (1997).

21. Ibid

22. Supra note 19

23. Rule 2A ,Consumer Protection Rules, 1987

24. Id Rule 3 (1) (ca)

25. Id Rule 3(1) (fa)

26. Id Rules 3 (1) (ga)

27. Id Rule 3 (2)

28. Id Rule 3 (3)

29. Id Rule 4 (4)

30. Id Rule 4 (5)

31. Id Rule 4 (7)

32. Id Rule 5

33. Id Rule 7

34. Id Rule 9

35. Id Rule 9 A

36. Id Rule 9 A (3)

37. Id Rule 10

38. Id Rule 10 A

39. Id Rule 11

40. Id Rule 12

41. Id Rule 14 (2)

42. Id Rule 14 (4)

43. Id Rule 14 (5)

44. Id Rule 14 A

45. Id Rule 15

46. Id Rule 15 (8)

47. Id Rule 15 A

48. Id Rule 16

49. Rules 3, Consumer Protection Regulations, 2005

50. Id Rule 4

51. Id Rule 5

52. Id Rule 4 (1)

53. Id Rule 4 (2)

54. Id Rule 10 (1)

55. Id Rule 10 (4)

56. Id Rule 10 (5)

57. Id Rule 10 (6

58. Id Rule 11 (5)

59. Id Rule 11 (8)

60. Id Rule 14 (1)

61. Id Rule 14 (2)

62. Id Rule 16 (3)

63. Id Rule 16 (5)

64. Id Rule 16 (8)

65. Id Rule 17

66. Id Rule 18

67. Id Rule 24

68. Id Rule 25

69. Id Rule 26 (3)

70. Id Rule 26 (4)

71. Id Rule 26 (5)

72. Id Rule 26 (6)

73. Vide Notification No CP-72/XXIX-10-CP. (8), dt. August 31, 1987, published in the U.P.

Gazette, Extra Part 4, Section (kha), dt 31st August 1937, at 6-11

74. Rule 2 A (k) of UP Consumer Protection Rules, 1987

75. Id Rule 2 A (y)

76. Id Rule 2 A (1) (ii)

77. Id Rule 2 A (2)

78. Id Rule 2 B (c )

79. Id Rule 2 B (e )

80. Id Rule 2 B (g)

81. Id Rule 3 (1)

82. Id Rule 3 (3)

83. Id Rule 3 (4) & (5)

84. Proviso Id Rule 3

85. Id Rule 3 (9)

86. Id Rule 4 (1)

87. Id Rule 4 (4)

88. Id Rule 4 (6)

89. Id Rule 4 (8)

90. Id Rule 4 (9)

91. Id Rule 5 (1)

92. Id Rule 5 (2)

93. Id Rule 5 (3)

94. Id Rule 6 (1) (a)

95. Id Rule 6 (1) (b)

96. Id Rule 6 (2) & (3)

97. Id Rule 6 (4) (a)

98. Id Rule 6 (4) (b)

99. Id Rule 6 (5)

100. Id Rule 6 (7) & (8)

101. Id Rule 6 (9)

102. Id Rule 6 (10) & (11)

103. Id Rule 7 (4)

104. Id Rule 7 (6)

105. Id Rule 7 (8)

106. Id Rule 7 (9)

107. Id Rule 7 (10)

108. Id Rule 8 (1)

109. Id Rule 8 (2)

110. Id Rule 8 (3)

111. Id Rule 8 (5)

112. Id Rule 8 (6)

113. Id Rule 8 (7)

114. Id Rule 8 (9)