WELCOME CONSUMER PROTECTION ACT 1986 REDRESSAL FORUMS DISTRICT

WELCOME

CONSUMER PROTECTION ACT 1986 REDRESSAL FORUMS - DISTRICT LEVEL, STATE LEVEL AND NATIONAL LEVEL PREPARED BY: PROF. A. KAVITHA, ASST. PROF DEPARTMENT OF COMMERCE A. M. JAIN COLLEGE

CONTENTS Consumer Protection Act Consumer Dispute Redressal Agencies District Consumer Dispute Redressal Forum (DCDRF) State Consumer Dispute Redressal Commission (SCDRC) 5. National Consumer Dispute Redressal Commission(NCDR) 6. Three-tier Redressal System Under Consumer Protection Act 1986. 1. 2. 3. 4.

1. Consumer Protection Act, 1986 is a social welfare legislation which was enacted as a result of widespread consumer protection movement. It was enacted to provide a simpler and quicker access to redressal of consumer grievances. The main object of the act is to provide for the better protection of the interests of the consumer. Other authorities for the settlement of consumers' disputes and for matters connected therewith also. The act was passed in Assembly in October 1986 and came into effect from 24 December 1986. The Act consists of 31 sections. The implementation of the Act is supported by the Consumer Protection Rules of 1987.

2. Consumer Dispute Redressal Agencies. Consumer forums have been established across our country at different levels with a view to provide speedy, less expensive and simple dispute redressal to the consumers. For achieving the objectives, Section 9 of the Consumer Protection act provides for three-tier dispute redressal agencies. 1. District Forum. 2. State Commission. 3. National Commission. District Forum. State Commission. National Commission.

3. District Consumer Dispute Redressal Forum. ü A District forum is a place in a district where Complainant can lodge a complaint if he or she is cheated or misguided or deceived by any service provider or trader. ü District Forum is the lowest Consumer Court in the hierarchy of three redressal Forums and under section 10 of Consumer Protection Act, there is a provision to constitute at least a District Forum in each and every district of the country. ü At present, there are 629 District Forums across the country. ü There can be more than 1 District Forums in a District For example Chennai District has 2 District Forums located at North Chennai & South Chennai.

3. 1. Composition of District Forum According to section 10(1) of Consumer Protection Act, a District Forum consists of following members: I. One person who is or has been the district judge and this person would be the president of the District Forum. II. Two other members, neither more than two nor less than prescribed and one of them must be woman. The members are appointed only when they fulfil the following conditions, namely: 1. None of them should be less than 35 year of age. 2. Both of them should possess a bachelor degree from a recognized university. 3. Both of them should be the person of ability, integrity and standing. 4. Both of them should have adequate knowledge and experience of at least ten years in dealing with the problems relating economics, law, commerce, accountancy, industry and public affairs or administration. One more important clause has been inserted by the Amendment Act, 2002. If the president of the State Commission assesses the need to appoint a whole time president, a recommendation can be made, but District Forum’s president himself cannot make such a recommendation.

3. 2. Disqualification for appointment & Appointment Authority Disqualification for appointment The following persons are disqualified for the appointment as a member of District Forum. I. A person who has been convicted and imprisoned for an offence involving moral turpitude. II. A person who has been declared insolvent and of unsound mind. III. A person who has been dismissed from the service of government or body corporate owned by the Government. Appointment Authority According to section 10 (1 A) of the Act, a state government appoints every member of the District Forum on the recommendation of the committee comprising, of: I. President of the State Commission - known as Chairman. II. Secretary, Law department of the state - Member III. Secretary in- charge of the department of the state consumer affair - Member.

3. 3. Terms of office According to section 10 (2) of Act, every member of Consumer Forum is appointed for the term 5 years or upto the age of 65 years, whichever is earlier. With the amendment in the Act, 2002, members of Forum can be re-appointed on the recommendations of the selection committee. Prior to amendment, 2002, re-appointment was not possible.

3. 4. Jurisdiction of District Forum The term jurisdiction can be defined as authority and legal power extent to which a District Forum can decides cases. Thus, a District Forum can decide only those matters which fall under its jurisdiction. Jurisdiction of District Forum is further divided, namely: I. III. Pecuniary Jurisdiction: District Forum can entertain all the matters where the value of services or good is upto Rs. 20 lakhs. If above this claim, then it does not falls under its jurisdiction. Territorial Jurisdiction: As far as territorial jurisdiction is concerned, District Forum can entertain all complaints coming from its geographical limit. Appellate Jurisdiction: Being a lowest agency in the ladder of Consumer Court, CPA does not give any power to the District Forums to hear the appeals.

4. State Consumer Dispute Redressal Commission. According to section 16 of Consumer Protection Act 1986, State Commission has been established at the State level State Commission is next, after District Forum in the hierarchy of Consumer Dispute Redressal Forums under the Act. There are 35 State Commissions at present in India. In Tamil Nadu there are two state consumer redressal commission located at Chennai & Madurai.

4. 1. Composition of State Commission According to section 16(1) of Consumer Protection Act, the State Commission consists of following members: 1. One person who is or has been the judge of High Court and this person will be the president of the State Commission. 2. Two other members, neither more than two nor less than prescribed and one of them must be a woman, The members are appointed only when they fulfill the following conditions, namely: i. None of them should be less than 35 year of age. ii. Both of them should possess a bachelor degree from a recognized university. iii. Both of them should be the person of ability, integrity and standing. iv. Both of them should have adequate knowledge and experience of at least ten years in dealing with the problems relating economics, law, commerce, accountancy, industry, public affairs or administration. One more important clause has been inserted by the Amendment Act, 2002. If the president of the State Commission assesses the need to appoint a whole time member, he or she recommends to the State government and State government appoints a member on whole time basis. Apart from that, among the members, not more than fifty percent of the members should be from judicial background and one more provision has been inserted, in the amendment, that is, to appoint more than two members in the State Commission for speedy disposal of cases.

4. 2. Disqualification for appointment & Appointment Authority Disqualification for appointment: According to section 16(1), Following persons are disqualified for the appointment as a member of State Commission. I. A person who has been convicted and imprisoned for an offence involving moral turpitude. II. A person who has been declared insolvent and of unsound mind. III. A person who has been dismissed from the service of government or body corporate owned by the Government. Appointment Authority: According to section 16 (1 A) of the Act, the state government appoints every member of the state commission on the recommendation of the selection committee comprising of: I. President of the State Commission - known as Chairman. II. Secretary, Law department of the state - Member III. Secretary in- charge of the department of the state consumer affair - Member.

4. 3. Terms of office According to section 16 (3) of Act, every member of this Commission is appointed for the term five years or upto the age of 67 years, whichever is earlier. With the amendment in the Act, 2002, members of Forum can be re-appointed on the recommendations of the selection committee. Prior to amendment, 2002, re-appointment was not possible.

4. 4. Jurisdiction of State Commission The term jurisdiction can be defined as authority and legal power extent to which a State Commission can decide cases. Thus, a State Commission can decide only those matters which fall under its jurisdiction. Jurisdiction of State Commission is further divided, namely 1. Pecuniary Jurisdiction: State Commission can entertain all the matters where the value of services or goods exceeds Rs. 20 lakhs, but does not go beyond Rs 1 crore. If the claim is above one crore, then it does not falls under its jurisdiction. 2. Territorial Jurisdiction: As far as territorial jurisdiction is concerned, State Commission can entertain all complaints coming from concerned State or its geographical limit. 3. Appellate Jurisdiction: State Commission has power to entertain all those appeals which are made against the order of District Forum. If any party does not accept the order made by District Forum, then he or she can make appeal to the concerned State Commission within 30 days from the date when order was communicated to the appellant. 4. Revisional Jurisdiction: This Commission can ask for the records in any consumer dispute, which is in pending or has been in pending before any District Forum, if State Commission think that the District Forum: i. Has exercised jurisdiction for which it was not authorized. ii. Has failed to exercise jurisdiction for which it was entitled. iii. Has exercised jurisdiction illegally. A very important point to be noted is this Revisional jurisdiction can be exercised by State Commission only when some wrong doings have come out against the orders of District Forum or State Commission may transfer a case from one District Forum to another District Forum.

5. National Consumer Dispute Redressal Commission. The National Commission was established at the top of the hierarchy of three redressal Forums. It is considered as an apex court It oversees the functioning of State Commissions and District Forums.

5. 1. Composition of National Commission According to section 20(1) of Consumer Protection Act, the National Commission consists of following members 1. One person who is or has been the judge of Supreme Court. 2. Four other members, neither more than four nor less than prescribed and one of them must be a woman, the members are appointed only when they fulfill the following conditions, namely 1. None of them should be less than 35 year of age. 2. All of them should possess a bachelor degree from a recognized university. 3. All of them should be the person of ability, integrity and standing. 4. All of them should have adequate knowledge and experience of at least ten years in dealing with the problems relating economics, law, commerce, accountancy, industry, public affairs or administration. Among the members so appointed, not more than 50% of the members should be from judicial background. An experience person having judicial background is supposed to have at least 10 years of experience as a presiding officer at the district level court or any tribunal. According to section 20 (1 A), jurisdiction and authority of National Commission can be exercised by the constituted bench and a bench can be constituted by the president with one or more members as president may consider.

5. 2. Terms of office According to section 20 (3) of Act, every member of this Commission is appointed for the term five years or upto the age of 70 years, whichever is earlier. With the amendment in the Act, 2002, members of Forum can be re-appointed on the recommendations of the selection committee. Prior to amendment, 2002, re-appointment was not possible.

5. 3. Jurisdiction of National Commission has been categorized in five parts i. e. pecuniary, territorial, appellate, revisional and review of jurisdiction. Ø Pecuniary Jurisdiction: Being an apex court, National Commission can entertain all the matters where the value of service or goods exceed Rs 1 crore. Ø Territorial Jurisdiction: As far as territorial jurisdiction is concerned, National Commission can entertain all complaints from all the States of Indian except Jammu and Kashmir, but complaint comes from outside India cannot be entertained by National Commission under this Act. Ø Appellate Jurisdiction: National Commission has jurisdiction to entertain appeals against the order of State Commissions and appeal can be filled within 30 days from the order of the State Commission. Appeals after 30 days may also be entertained if cause of delayed is justified. Ø Revisional Jurisdiction: This Commission can ask for the records in any consumer dispute which is in pending or has been in pending before any State Commission, if National Commission think that the State Commission: § Has exercised jurisdiction for which it was not authorized. § Has failed to exercise jurisdiction for which it was entitled. § Has exercised jurisdiction illegally. The very important point to be noted is this revisional jurisdiction can be exercised by National Commission only when some wrong doings have come out against the orders of State Commissions. Ø Review of Jurisdiction: National Commission can review its order if there is any error of judgment is surfaced in the dispute.

6. Three-tier Redressal System Under Consumer Protection Act 1986. Composition of Appointment Members of Members President & 2 District other members (1 By State Forum should be a Government women) President & 2 State other members (1 By State Commission should be a Government women) President & minimum 4 other National By Central members (1 Commission Government should be a women) BASIS Compensatio n Claimed Term of Office Upto ₹ 20 Lakhs 5 years or upto the age of 65 years, whichever is earlier Exceeding ₹ 20 Lakhs but less than ₹ 1 Crore 5 years or upto the age of 67 years, whichever is earlier Exceeding ₹ 1 Crore 5 years or upto the age of 70 years, whichever is earlier

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