Module 3 Sale Of Goods Act 1930 Contract

Module : -3 Sale Of Goods Act 1930

Contract of sales (Section 4) • A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for price".

ESSENTIALS OF CONTRACT OF SALE 1. There must be at least two parties 2. Transfer or Agreement to transfer the ownership of goods. 3. The subject matter of the contract must necessarily be 'goods'. 4. The consideration is Price. 5. A Contract of sale may be absolute or conditional 6. All other essentials of a valid contract must be present.

Difference between sales and bailment of goods Point of difference Sale Bailment of goods Title and possession In sale title and possession bailment only possession both get transferred. Returns of goods The buyer is under no obligation to returns the goods The bailee is under an obligation to returns the goods Rights to goods The buyer is always Is an absolute owner and he can deal with the goods he has purchased in any way he likes The bailee can use the goods only according to the terms of bailment. he is supposed to follow the instructions or directions of the bailor while dealing with the goods

Point of difference Sale Bailment of goods Act applicable The sale is always governed Sales of goods act does not by sales of goods act 1930 apply to bailment of goods

Difference Between Sale And Agreement To Sale 1) 2) 3) 4) 5) Sale The Property in the goods passes to the buyer and along therewith the risk. It is an executed contract. The seller can sue the buyer for the price of the goods because of the passage of the property therein to buyer. A subsequent loss or destruction of goods is liability of buyer. Breach on the part of the sellers gives the buyer double remedy; a suit for damages against the seller and a proprietary remedy of recovering the goods from third parties who bought them. 1) 2) 3) 4) 5) Agreement To Sale Since property in the goods does not pass to buyer, the risk also does not pass to him. It is an executory contract. The aggrieved party can sue for damages only and not for the price, unless the price was payable at a stated date. Such loss or destruction is the liability of the seller. The seller, being still the owner of the goods, may dispose of them as he likes, and the buyer’s remedy would be to file a suit for damages only. 6

Difference between a sale and a hire purchase Point of difference Hire purchase Sale Transfer of ownership Ownership of goods is transferred from hire vendor to hire purchaser only when the last installment is paid sales, ownership is transferred immediately to the buyer. Risk of loss In case of a hire-purchase agreement , the risk of loss or deterioration of goods hired lies the owner , and the hirer will be absolved of any responsibility In the case of a sale , where the price in installment , the risk of loss or deterioration of the goods lies with the buyer Mode of contract Hire purchase agreement is always done in writing A contract of sale may be made orally or in writing Act applicable A transaction of hire –purchase agreement is regulated by the hire purchase act , 1972 A transaction of sale is governed by the sale of goods act , 1930 Sales tax/vat Sales tax/VAT is not levied on a hire –purchase until it becomes a sale Sales tax / vat is payable on the goods sold

Goods: -Meaning • Goods means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass and things attached and forming part of lands which are agreed to be served before sale or under the contract of sale. Section 2(7).

Kinds Of Goods: • Existing goods- Section 6(1) These are the goods which are in existence and are physically present in the seller’s possession. Ø Specific goods- Section 2(14) – These are the goods identified and agreed upon at the time the contract is made. Ø Ascertained goods- These are identified after the formation of the contract. Ø Unascertained goods- These are the goods which are not specifically identified or agreed upon at the time of the contract of sale. • Future goods – Section 2(6) Goods which are to be manufactured or produced or acquired by the seller after making contract of sale. • Contingent goods- Section 6(2): - contingent goods are those whose acquisition by the seller depends on a contingency , which may or may not happen [section 6(2)] 9

EXAMPLES • Specific goods : - if a agrees to sell his car or watch to B, it shall be a sale of specific goods • Ascertained goods- A who deals in motor bikes , has 100 bikes in his showroom and agree to sell 40 bikes to Delhi police under an agreement to sell suppose the Delhi police, the buyer selects and sets aside 40 bikes out of the mass of 100 for the given contract , the contract I for ascertained goods because the quantity contracted has been indentified and appropriated towards the contract

• Unascertained goods- Mohan, a timber merchant , agree to supply 50 chairs to a school out of the lot 200 chairs lying in his godown. it is sale of unascertained goods because which of the chairs shall be delivered to the buyer have not been identified at the time of the contract of sale

• Future goods: - A enters into a contract with B to buy all the apples that would be produced in B ‘s orchard over next year.

• Contingent goods- : - A agrees to sell the cargo loaded on the ship ‘victory’ which is coming from London to Bombay. The ship may or may not arrive. so, these goods will be called as contingent goods

Condition or Warranties Condition: It is a stipulation essential to main purpose of the contract, the breach of which gives right to the repudiate the contract and to claim damages. Warranty: It is a stipulation collateral to main purpose of the contract, the breach of which gives rise to claim for damages but not the right to reject the goods and treat contract as repudiated. 14

Condition Example • X goes to Y , a horse dealer , and tell him that he wants a horse that can run 35 km/hour. Y points to a particular horse and says that this will suit the purpose. X buys the horse relying on his representation. Subsequently , X finds that horse can run only at a speed of 25 km in an hour. There is a breach of conditions. X may reject the horse and get back the price paid by him

Warranty example • A buyer goes to a car dealer and asks for a good car. While selling the car , the dealer claims that the mileage of the car is 16 km per liter. But subsequently the buyer discovers that car gives a mileage of only 12 km per liter. Here the buyer cannot repudiate the contract but can only claim damages from the seller because the statement made by the seller amounts to a warranty

Difference Between Condition and Warranties 1. 2. 3. Condition A condition is essential to the main purpose of the contract. The aggrieved party can repudiate the contract or claim damages or both in case of breach of condition. A breach of condition may be treated as breach of warranty. 1. 2. 3. Warranty It is only collateral to main purpose of contract. The aggrieved party can claim only the damages in case of breach of warranty. A breach of warranty cannot be treated as breach of condition. 17

Types of conditions and warranties 1) Express – which are expressly provided in the contract. 2) Implied- which the law implies into the contract unless the parties stipulate to the contrary. 18

Implied Conditions 1. Condition as to title [sec. 14(a)] - seller has the right to sell. 2. Sale by description (sec. 15)- goods shall correspond with the 3. 4. 5. 6. description. Condition as to quality or fitness [sec 16(1)] Condition as to merchantability [sec. 16(2)] Sale by sample (sec. 17) Condition as to wholesomeness 19

• Condition as to title: - A bought a second hand car from B , a car dealer, and paid for it. After a few months, c the true owner, spotted the car and demanded it from A. A was deprived of the car because the seller had no title to it. It was held that A could recover the price from B and sue him for damages even though A had used the car for several months • Sale by description: - Ex: - A machine was sold. the buyer has not seen the machine but the seller described it as a new one. However , it was found to be a very old one. held , the machine was not according to the description

Condition as to quality or fitness: Ex : - A purchased a hot bottle from a chemist. While the bottle was being used by A’s wife , it burst and injured A’s wife. held , the seller was liable for damages as the bottle was not fit for the purpose for which it was meant Condition as to merchantability: Ex: - A radio set was sold to a layman. the set was defective. it did not work in spite of repairs. held , the buyer could returns the set and claim refund Condition as to wholesomeness: Ex: - A purchased milk from B a milk dealer. The milk contained typhoid germs. A’s wife on taking the milk got infected and died. held , A was entitled to get damages

Implied Warranties 1. Warranty of quiet possession [sec. 14(b)]. 2. Warranty of freedom from encumbrances [sec. 14(c)]. 3. Warranty as to quality or fitness by usage of trade [sec 16(4)]. 4. Warranty to disclose dangerous nature of goods. 22

CAVEAT EMPTOR In a contract of sale of goods the seller is under no duty to reveal unflattering truths about the goods sold. Therefore, when a person buys some goods, he must examine them thoroughly. If the goods turn out to be defective or do not suit his purpose, he cannot blame anybody excepting himself. 23

Unpaid Seller The seller of goods is deemed to be unpaid (Sec. 45 -1) I. When whole of the price has not been paid of tendered. II. When the bill of exchange or negotiable instrument has been received as a condition of payment and the condition on which it was received has not been fulfilled by the reason on dishonor of the instrument or otherwise. 24

Rights of an Unpaid Seller The unpaid seller has following rights: 1) Rights against the goods. i. Rights of lien ii. Right of stoppage of goods in transit iii. Right of rescale 2) Rights against buyer personally i. Suit for price ii. Suit for damages for non-acceptance iii. Suit for special damages and interest 25

Rights of lien The right of lien means lawfully right to retain the goods possession until the full price is received. An unpaid seller can exercise his right of lien in following cases. Sec 47 -49 : I. Where the goods have been sold on the cash basis. II. Where the goods have been sold on credit basis and the term of credit has expired. III. Where the buyer has become insolvent even if the period of credit has not been expired. Other rules to satisfy the conditions for this right are I. The unpaid seller must be in actual possession of the goods sold. II. It can be exercised even If the documents of title have been delivered to the buyer. III. It can be exercised for the price and not for other expenses IV. If the seller delivers some goods, it can be exercised on the remaining. 26

Termination of right of lien Seller’s right of lien is terminated in following cases. I. When he delivers the goods to the carrier or other bailey for transmission to the buyer II. When the buyer or his agent lawfully obtains the possession of the goods III. When seller waives his right of lien on the goods IV. The right of lien once lost will not be restored V. When the buyer further sells the goods and the seller agrees Example: A seller “S” sells a TV set to “B” and delivers it to “B” and since the TV set was not functioning properly, “B” delivered it back to “S” for the repairs. It was held that “S” can not exercise his right of lien over TV set. 27

Right of stoppage of goods in Transit: It means stoppage of goods while they are in transit to take possession until the price is paid (sec. 50 -52). Unpaid seller can stop the goods in transit in the following cases. I. While the buyer becomes insolvent. II. While the goods are out of actual possession of seller, but have not reached buyer’s possession i. e. goods are in transit with career. III. The unpaid seller can stop the goods in transit only for payment of the price of the goods and not for any other charges. 28

The unpaid seller can not stop goods in transit in following cases: I. When the goods reaches the destination. II. While the buyer or his agent takes possession of delivery even if it is not reached destination. III. In case the carrier is agent of the buyer, the transit comes to an end the instance carrier receives the goods and seller can not stop the transition IV. Carrier’s wrongful refusal to deliver goods to the buyer. Example: “A” sells TV set to “B”. “A” delivers the TV to the carrier to carry it to “B”. Later on gets news that “B” has become insolvent; “A” can stop delivery. 29

Right of Resale: If a buyer fails to pay or offer the price within a reasonable time, the unpaid seller has the right to resell the goods in the following circumstances. a) Where the goods are of perishable nature. b) Where the unpaid seller has exercised his right of lien or stoppage in transit and gives a notice to buyer of his intension of resell the goods. c) Where the unpaid seller has expressly reserved his right of resale. d) Where seller gives notice to the buyer of his intension to resell and the buyer does not pay within a reasonable time, he can a. Recover loss on resale of the goods, if any b. Retain any surplus on resale of goods, if any 30

Right of Resale: If a buyer fails to pay or offer the price within a reasonable time, the unpaid seller has the right to resell the goods in the following circumstances. a) Where the goods are of perishable nature. b) Where the unpaid seller has exercised his right of lien or stoppage in transit and gives a notice to buyer of his intension of resell the goods. c) Where the unpaid seller has expressly reserved his right of resale. d) Where seller gives notice to the buyer of his intension to resell and the buyer does not pay within a reasonable time, he can a. Recover loss on resale of the goods, if any b. Retain any surplus on resale of goods, if any 31

Breach of the Contract

Suit for price • Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may sue him for the price of the goods. • Where under a contract of sale the price is payable on a day certain irrespective of delivery and the buyer wrongfully neglects or refuses to pay such price, the seller may sue him for the price although the property in the goods has not passed and the goods have not been appropriated to the contract.

Damages for non-acceptance Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for nonacceptance

Damages for non-delivery • Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for damages for nondelivery.

Specific performance • Subject to the provisions of Chapter II of the Specific Relief Act, 1877, in any suit for breach of contract to deliver specific or ascertained goods, the Court may, if it thinks fit, one the application of the plaintiff, by its decree direct that the contract shall be performed specifically, without giving the defendant the option of retaining the goods on payment of damages. The decree may be unconditional, or upon such terms and conditions as to damages, payment of the price or otherwise, as the Court may deem just, and the application of the plaintiff may be made at any time before the decree.

Remedy for breach of warranty 1) Where there is a breach of warranty by the seller, or where the buyer elects or is compelled to treat any breach of a condition on the part of the seller as a breach of warranty, the buyer is not by reason only of such breach of warranty entitled to reject the goods; but he may- (a) Set up against the seller the Brach of warranty in diminution or extinction of the price; or (b) Sue the seller for damages for breach of warranty. (2) The fact that a buyer has set up a breach of warranty in diminution or extinction of the price does not prevent him from suing for the same breach of warranty if he has suffered further damage.

Repudiation of contract before due date • Where either party to a contract of sale repudiates the contract before the date of delivery, the other may either treat the contracts as subsisting and wait till the date of delivery, or he may treat the contract as rescinded and use for damages for the breach.

Interest by way of damages and special damages (1) Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages in any case whereby law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed. (2) In the absence of a contract to the contrary, the Court may award interest at such rate a it think fit one the amount of the price (a) to the seller in a suit by him for the amount of the price. - from the date of the tender of the goods or from the date on which the price was payable. (b) to the buyer in a suit by him for the refund of the price in a case of a breach of the contract on the part of the seller- from the date on which the payment was made

Performance of contractact

Duties of seller and buyer • It is the duty of the seller to deliver the goods and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale.

Payment and delivery are concurrent conditions • Unless otherwise agreed, delivery of the gods and payment of the price are concurrent conditions, that is to say, the seller shall be ready and willing to give possession of the goods to the buyer in exchange for the price, and the buyer shall be ready and willing to pay the price in exchange for possession of the goods. Delivery. - Delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf.

Effect of part delivery • A delivery of part of goods, in progress of the delivery of the whole has the same effect, for the purpose of passing the property in such goods, as a delivery of the whole, but a delivery of part of the gods, with an intention of severing it from the whole, does not operate as a delivery of the remainder.

Buyer to apply for delivery • Apart from any express contract, the seller of goods in not bound to deliver them until the buyer applies for delivery.

Rules as to delivery (1) Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, goods sold are to be delivered at the place at which they are the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, if not then in existence, at the place at which they are manufactured or produced. (2) Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time.

(3) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf. Provided that nothing in this section shall affect the operation of the issue or transfer of any document of title to goods. (4) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact. (5) Unless otherwise agreed, the expense of and incidental to putting the goods into a deliverable state shall be borne by the seller.

Delivery of wrong quantity (1) Where the seller delivers to the buyer a quantity of good less than he contracted to sell, the buyer may reject them, but if the buyer accepts the goods so delivered he shall pay for them at the contract rate. (2) Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell the buyer may accept the goods included in the contact and reject the rest, or he may reject the whole. If the buyer accepts the whole of the goods so delivered, he shall pay for them at the contract rate. (3) Where the seller delivers to the buyer the gods he contract to sell mixed with goods of a different description not included in the contract. , the buyer may accept the goods which are in accordance with the contract and reject the rest, or may reject the whole. (4) The provisions of this section are subject to any usage of trade, special agreement or course of dealing between the parties.

Installment deliveries (1) Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installments. (2) Where there is a contract for the sale of goods to be delivered by stated installments which are to be separately paid for, and the seller makes no delivery or defective delivery in respect of one or more installments, or the buyer neglects or refuses to take delivery of or pay for one or more installments, it is a question in each cased depending on the terms of the contract and the circumstances of the case, whether the breach of contract is a repudiation of the whole contract, or whether it is a sever able breach giving rise to a claim for compensation, but not a right to treat the whole contract as repudiated.

Delivery to carrier or wharfinger (1) Where, in pursuance of a contract of sale, the seller is authorised or required to send the goods to he buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer, or delivery of the goods to a wharfinger for safe custody, is prima facie deemed to be a delivery of the goods to the buyer. (2) Unless otherwise authorised by the buyer, the seller shall makes such contract with the carrier or wharfinger on behalf of the buyer as may be reasonable having regard to the nature of the goods and the other circumstances of the case. If the seller omits so to do, and the goods are lost or damaged in course of transit or whilst in the custody of the wharfinger, the buyer made decline to treat the delivery to the carrier or wharfinger as a delivery to himself, or may hold the seller responsible in damages. (3) Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving sea transit, in circumstances in which it is usual to insure, the seller shall give such notice to the buyer as may enable him to insure them during their sea transit and if the seller fails so to do, the goods shall be deemed to be at his risk during such sea transit.

Risk where goods are delivered at distant place • Where the seller of goods agrees to deliver them at his own risk at place other than that where they are when sold, the buyer shall, nevertheless, unless otherwise agreed, take any risk of deterioration in the goods necessarily incident to the course of transit.

Buyer’s right of examining the goods (1) Where goods are delivered to the buyer which he has not previously examined, he is not deemed to have accepted them unless and until he has a reasonable opportunity of examining them for the purpose of ascertaining whether they are in conformity with the contract. (2) Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract.

Buyer not bound to return rejected goods • Unless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is sufficient it he intimates to the seller that he refuses to accept them.

Liability of buyer for neglecting or refusing delivery of goods • When the seller is ready and willing to deliver the goods and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods , he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery and also for a reasonable charge for the care and custody of the goods. • Provided that nothing in this section shall affect the rights of the seller where the neglect or refusal of the buyer to take delivery amounts to a repudiation of the contract

Module : -3 Consumer Protection Act, 1986

Consumer Protection Act, 1986 • A person may be consumer of goods, or services. When I purchase a fan, a gas stove or a refrigerator, I could be the consumer of goods. When I open a bank account, take an insurance policy, get my car repaired, I could be the consumer of services. • The consumer protection Act, 1986 tries to help a consumer when for example, the goods purchased are defective or the services rendered to him are subject to so deficiency. • Prior to the consumer Protection Act, 1986 for any consumer complaint one had to go to an ordinary Civil Court. He had to engage a lawyer, pay the necessary fee, and be harassed for years or decades before any outcome, positive or negative, was there in that litigation. • Under the Consumer Protection Act, no Court fee has to be paid and the decision on the complaint is much quicker, as the Court can evolve a summary procedure in disposing off the complaint.

Introduction • Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection. • United nations passed resolution of consume protection in April 1985 • In India 1986 was the enactment of consumer protection act • Aimed at providing simple, quick, and cheaper protection of consumers interest

• The law relating to consumer protection is contained in the consumer protection Act , 1986. The Act applies to all goods and services. The central government may however by notification published in the official Gazette

Consumer Protection Act, 1986 • Consumer protection means safeguarding the interest and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal of their grievances.

Meaning of Consumer Protection • Consumer protection means the protection of the consumers from their exploitation by the unfair trade practices of the producers/sellers. In fact, providing proper protection of the fundamental rights and Interests of the consumers, freeing them from exploitation, creating consumer awareness, consumer providing the right to clean business environment to the consumers by means of Legal amendments Is all that protection mean

Examples • Bank of Maharashtra v/s Mrs Jyothi Satya – When the locker facility is provided by the bank, the relationship b/w the bank and hirer of a locker is not that of a landlord and tenant. – In event of loss of contents of lockers as a result of robbery, the bank will be liable for deficiency of service.

CONSUMER PROTECTION COUNCILS • Central Level • State Level

Classification of Council Estab. Authority Composition Chairman Other official or nonofficial members. Term Place of Council Meetings Central Consumer Protection Council [SECTION 4] State Consumer Protection Council [SECTION 7] District Council [SECTION 8 A] Central Government Minister in charge in the Cent. Govt. (i) 8 M. P. — 5 from LS, 3 from RS. (ii) Secy. National Comm. for SC & ST. (iii) 20 – Repr. Of Cent. Govt. & Autonomous Org. with consumer interests (iv) Registrar, National Consumer Disputes Redressal Commission (v) 35 Consumer Orgns. (vi) 10 – Women (vii) 20 – Trade & Industry (viii) 15 – Persons for Consumer Interest Member-secretary Secretary in charge of Consumer Affairs in the Central Government. 3 years Delhi At least one meeting every year State Government Minister in charge in the State Govt. (i) 8 – 5 MLA & 3 MLC (ii) 10 – State Govt. Repr. (iii) 5 – Women Repr. (iv) 5 – Trade & Farmers Repr. (v) 1 – Persons for Consumer Interest. Generally 3 years State capital At least two meetings in a year State Govt. Collector of the district (As per respective State Rules) Generally 3 years District HQ At least two meetings in a year.

CONSUMER DISPUTES REDRESSAL AGENCIES Redressal Forums. • District Forums - a Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government in each district of the State by notification: 63

Continued… Each District Forum shall consist of, — • a person who is, or has been, or is qualified to be a District Judge, who shall be its President; • two other members, one of whom shall be a woman, who shall have the following qualifications, namely — 64

Continued… – be not less than thirty-five years of age, – possess a bachelor's degree from a recognised university, – be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration: 65

Jurisdiction of the District Forum. The District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed ''does not exceed rupees twenty lakhs. 66

State Commission • State Commission - A Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government in the State. 67

Continued… Each State Commission shall consist of— • A person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President. 68

Continued… • not less than two, and not more than such number of members, and one of whom shall be a woman, who shall have the following qualifications, namely: — - be not less than thirty-five years of age; - possess a bachelor's degree from a recognised university; - be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration: 69

Jurisdiction of the State Commission (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees 1[five lakhs but does not exceed rupees twenty lakhs; ] and (ii) appeals against the orders of any District Forum 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 Forum within the State where it appears to the State Commission that such District Forum has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise on its jurisdiction illegally or with material irregularity.

National Commission 1) The National Commission shall consist of(a) a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President: 2[PROVIDED that no appointment under this clause shall be made except after consultation with the Chief Justice of India; ] (b) four other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman: 2[PROVIDED that every appointment under this clause shall be made by the Central Government on the recommendation of a selection committee consisting of the following, namely, (a) a person who is a Judge of the Supreme Court, to be nominated by the Chief Justice of India-Chairman, (b) the Secretary in the Department of Legal Affairs in the Government of India-Member. ]

2[(3) Every member of the National Commission shall hold office for a term of five years or up to the age of seventy years, whichever is earlier and shall not be eligible for re-appointment. (4) Notwithstanding anything contained in subsection (3), a person appointed as a President or as a member before the commencement of the Consumer Protection (Amendment) Act, 1993, shall continue to hold such office as President or member, as the case may be, till the completion of his term. ]

Jurisdiction of the National Commission (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees 1[twenty lakhs]; and (ii) appeals against the orders of any State Commission; 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.

Appellate Authority Composition President Members (persons of ability, integrity and standing and have adequate knowledge or experience) Term Jurisdiction National Consumer Disputes Redressal Commission [SECTION 20] Judge of the Supreme Court to be appointed by the Cent. Govt. in consultation with the Chief Justice of India. 4 (1 Woman) – Appointed by Cent. Govt. on the recommendation of a selection committee. 5 years` or 70 years` (whichever earlier) (i) Complaints - value of the goods or services and compensation, if any, claimed exceeds Rs. One crore and (ii) Appeals against the orders of any State Commission [SECTION 16] Judge of the High Court to be appointed by State Govt. in consultation with Chief Justice of High Court. 2 (1 Woman) – Appointed by State Govt. on the recommendation of a selection committee 5 years or 67 years (whichever earlier). Complaints - value of the goods or services and compensation, if any, claimed exceeds Rs. 25 lakhs upto Rs. One Crore. District Forum [SECTION 10] District Judge to be appointed by the State Govt. in consultation with the Chief Justice of State High Court. who shall be its President; 2 (1 Woman) – Appointed by State Govt. on the recommendation of a selection committee 5 years or 65 years (whichever earlier). Complaints - value of the goods or services and compensation, if any, claimed upto Rs. 25 lakhs. The concerned State within which either of parties actually and voluntarily resides or carries on business or has a branch office or personally works for

Penalty Time limit for completion of hearing Judicial Powers/Interim Relief Summary Trial Principal Bench Appellate Authority Enforcement power Limitation period Imprisonment up to 3 years` with or without fine upto Rs. 10, 000 90 days` or 150 days` (in case of lab. Tests) Vested with powers of 1 st Class Judicial Magistrate Enabled; New Delhi; Circuit Bench Supreme Court within 30 days` with 50% of award money. As arrears of Land & Revenue 2 years` from the cause of action. Imprisonment up to 3 years` with or without fine upto Rs. 10, 000 90 days` or 150 days` (in case of lab. Tests) Vested with powers of 1 st Class Judicial Magistrate Enabled State Capital National Commission within 30 days` with 50% of award money or Rs. 35, 000 (whichever less). State Capital; Circuit Bench at other cities. As arrears of Land & Revenue 2 years` from the cause of action Imprisonment up to 3 years` with or without fine upto Rs. 10, 000 90 days` or 150 days` (in case of lab. Tests) Vested with powers of 1 st Class Judicial Magistrate Enabled District HQ State Commission within 30 days` with 50% of award money or Rs. 25, 000 (whichever less). As arrears of Land & Revenue 2 years` from the cause of action