Consumer Acts

The Consumer Protection Act: An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consum¬ers' disputes and for matters connected therewith.

The Consumer Protection Rules, 1987

The principal rules were published in the Gazette of India vide number   GSR 398(E) dated 15th April, 1987 and subsequently amended vide; 1. GSR 533(E) dated 14.8.1991, 2. GSR 800(E) dated 30.12.1993, 3. GSR 522(E) dated 22.6.1994 , 4. GSR 605(E) dated 30.8.1995 , 5. GSR 759(E) dated 21.11.1995,   6. GSR 95(E) dated 27.2.1997, 7. 88(E) dated 24.2.1998, 8. 175(E) dated 5.3.2004, 9. GSR 50 (E) dated 1.2.2005, 10. GSR 64 (E) dated 10.2.2005, 11.GSR 67 (E) dated 11.2.2005,

12. GSR 273 (E) dated 5.5.2006, 13. GSR 462 (E) dated 4.8.2006 and 14. GSR 637(E) dated 13.10.2006.

 

THE CONSUMER PROTECTION RULES 1987

(Amended up to 13.10.2006)

 

            In exercise  of the powers conferred by sub-section (1) of section 30 of the Consumer Protection Act , 1986 (68 of l986), Central Government hereby makes the following rules, namely:

 

1. Short title, extent and commencement.-- (1) These rules may be called the Consumer Protection Rules,1987.

 

     (2) They shall come into force on the date of their publication in the Official  Gazette.

 

2. Definitions.-ln these rules, unless the context otherwise requires--

(a)   'Act' means the Consumer Protection Act l986 (68 of 1986);

(b)   'agent' means a person duly authorised by a party to present any complaint,  

       appeal or reply on its behalf before the National Commission;

(c)   'appellant' means a party which makes an appeal against the order of the State

       Commission;

(d)   'chairman' means a chairman of the Central Consumer Protection Council

        established under sub-section (1 ) of the section 4 of the Act;

(e)   'memorandum' means any memorandum of appeal filed by the appellant;

(f)    'opposite party' means a person who answers complaint or claim;

(g)   'president' means the President of the National Commission;

(h)   'respondent' means the person who answers any memorandum of appeal;

(i)    'section' means section of the Act;

(j)    'state' includes Union territories also;

(k)    words and expressions used in the rules and not defined but defined in the Act

        shall have the meanings respectively assigned to them in the Act.

 

2A. State Governments to recognise a laboratory as an appropriate Iaboratory.-( 1 ) For the purpose of obtaining recognition as an appropriate laboratory, the applicant shall send application, in triplicate, in the proforma prescribed by the Bureau of Indian Standards with the relevant details to the Department concerned with the consumer protection work in the State Government.

 

    (2) 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.

 

    (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.

 

3. The Constitution of the Central Consumer Protection Council and the Working Groups - (1) The Central Government shall, by notification in the Official Gazette constitute the Central Consumer Protection Council (herein after referred to as the Central  Council) which shall consist 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;

 

(b)   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;

(ca) 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 occasion;

 

(d)   two Members of Parliament—one from the Lok Sabha and one from the Rajya Sabha;

 

(e)   deleted;

 

(f)     representatives of the Central Government Departments and autonomous organisations concerned with consumer interests—not exceeding five;

 

(fa) The Registrar, National Consumer Disputes Redressal Commission, New Delhi

 

(g) representatives of consumer organisations from amongst the Indian members of the International Organization, namely, Consumer International – not exceeding six, to be nominated by the Central Government;

(ga) representatives with proven expertise and experience who are capable of representing consumer interests, drawn from amongst consumer organisations, consumer activists, women, farmers, trade and industry – not exceeding five, one from each of the regions specified in schedule annexed to these rules;

(h)   deleted;

 

(i)    deleted;

 

(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.

 

    (2) The term of the Council shall be three years.

 

    (3) 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.

 

    (4) deleted.

 

4. Procedure of the Central Council.—Under sub-section (2) of section 5, the Central Council shall observe the following procedure in regard to the transaction of its business,—

 

    (1) 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.

 

    (2) 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.

 

    (3) Every 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.

 

    (4) No proceedings of the Central Council shall be invalid merely by reasons of existence of any vacancy in or any defect in the constitution of the Council.

 

    (5) 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.

 

    (6) In connection with the journey undertaken to and fro by the non-official members for attending the meeting of the Central Consumer Protection Council or its working group, they shall be entitled to avail first class or two-tier air- conditioned class of railway accommodation by all trains (including Rajdhani  Express) and claim such fare or cost of actual mode of travel, whichever is less.  The non-official members from Island territories shall be entitled to, to and fro air journey (economy class) in domestic airlines from the Islands to the nearest main-land airport and thereafter rail fare by entitled class. The non-official members who are senior citizens shall be entitled to, to and fro air-journey (economy class) in domestic airlines on availing senior citizen concessional air fare for their journeys provided the distance being travelled is 1000 kms or above. The non-official members shall be entitled to a sum of Rs.1000 per each day of the meeting as incidental charges to cover the expenditure towards their daily allowance, lodging, local conveyance from residence to the station/airport and from station/airport to the venue of meeting and vice-versa. Every claim made under this sub-rule shall be subject to certifying that the member will not claim any benefit from any other Central Government Ministry, Department or Organization during his visit for attending the meeting of the Central Consumer Protection Council or any of its Working Group. Local non-official members residing at the place of the venue of the meeting, shall be paid consolidated conveyance and hire charges to the tune of Rs. 200 per diem irrespective of the classification of the city. Members of Parliament attending meetings of the Council or its Working Group shall be entitled to travelling and daily allowances at such rates as are admissible to such members'.

 

    (7) The resolution passed by the Central Council shall be recommendatory in nature.

 

5. Place of the National Commission.—The office of the National Commission shall be located in the Union Territory of Delhi.

 

6. Working days and office hours of the National Commission.—The working days and office hours of the National Commission shall be the same as that of the Central Government.

 

7. Seal and emblem.—The official seal and emblem of the National Commission shall be such as the Central Government may specify.

 

8. Sitting of the National Commission.—The sitting of the National Commission as and when necessary, shall be convened by the President.

 

9. Staff of the National Commission.—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.

 

 

9A. Fee for making complaints before District Forum - (1) 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 Act shall be accompanied by a fee, as specified in the table given below in the form of crossed Demand Draft drawn on a nationalised bank or through a crossed Indian Postal Order in favour 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.

(2) The concerned authority referred to in sub-rule (1) shall credit the amount of fee received by it into the Consumer Welfare Fund of the respective State and where such Fund is not established, into the Receipt Account of the State Government and in the case of the National Commission, to the Consumer Welfare Fund of the Central Government.

 TABLE

 

(3) The complainant who are 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.

 

10. Additional powers of the National Commission, State Commission and District Forum.-- (1 ) 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.

 

    (2)(a) Where during any proceedings under this Act, 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, authorise any officer to exercise the power of entry and search of any premises. Such authorised officer may also seize such books, papers, documents or commodities as are required for the purpose of this 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.

 

    (b) 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.

 

10A. Credit of the fine into the Consumer Welfare Fund when consumers are not identified conveniently- (1) 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 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).

 

(2) Any amount credited to the said Fund shall be utilized in accordance with the provisions of the Consumer Welfare Fund Rules, 1992.

 

10B Number of Members in the National Commission: - The National Commission shall consist of not less than four members and not more than nine members and at least one of them shall be a woman.

 

 11. Salaries, honorarium and other allowances of the President and Members of the National Commission.—(1) The President of the National Commission shall be entitled to salary, allowances and other perquisites as are available to a sitting Judge of the Supreme Court.

(1A) The other members of the National Commission appointed on whole-time basis shall be entitled to the following honorarium and other allowances with effect from the 1st day of April, 2006, namely:-

(a) 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;

(b) 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;

(c) the members shall be provided with Government accommodation or receive house rent allowance of eight thousand rupees per month in lieu thereof;

(d) 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 litres of petrol shall be supplied or the price therefor shall be paid;

(e) the members shall be entitled to one thousand free calls for the telephone installed at their residence, with STD and ISD facilities; and

(f) the members shall be entitled to fifteen days casual leave in a year.

    (2) 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.

 

    (3) The honorarium or the salary, as the case may be, and other allowances shall be defrayed out of the Consolidated Fund of India.

 

12. Terms and conditions of service of the President and members of the National Commission.--(1) Before appointment, 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.

 

(2) Deleted.

   

(3) Notwithstanding anything contained in sub-rule (2) 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.

 

    (4) The terms and conditions of service of the President and the members shall not be varied to their disadvantage during their tenure of office.

 

    (5) A casual vacancy caused by resignation or removal of the President or any other member of the National Commission under s

PRELIMINARY

1. Short title, extent, commencement and application.—

1. This Act may be called the Consumer Protection Act, 1986.
2. It extends to the whole of India except the State of Jammu and Kashmir.
3. It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different States and for different provisions of this Act.
4. Save as otherwise expressly provided by the Central Government by notification, this Act shall apply to all goods and services.

2. Definitions.—

1. In this Act, unless the context otherwise requires,—
   (a) 'appropriate laboratory' means a laboratory or organisation—
   (i.) recognised by the Central Government;
   (ii.) recognised by a State Government, subject to such guide¬lines as may be prescribed by the Central Government in this behalf; or
   (iii) any such laboratory or organisation established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect;
   
   
   (aa) 'branch office' means—
   (i.) any establishment described as a branch by the opposite party; or
   (ii.) any establishment carrying on either the same or substan¬tially the same activity as that carried on by the head office of the establishment;
   
   
   
   (b) complainant' means—
   (i) a consumer; or
   (ii) any voluntary consumer association registered under the Companies Act, 1956 (1of 1956)or under any other law for the time being in force; or
   (iii) the Central Government or any State Government,
   (iv) one or more consumers, where there are numerous consum¬ers having the same interest;
   (v) in case of death of a consumer, his legal heir or representative;
   who or which makes a complaint;
   
   
   
   (c) 'complaint' means any allegation in writing made by a complain¬ant that—
   (i) an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider ;
   (ii) the goods bought by him or agreed to be bought by him; suffer from one or more defects;
   (iii)the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect;
   (iv) a trader or service provider, as the case may be, has charged for the goods or for the service mentioned in the com¬plaint a price in excess of the price –
   (a)fixed by or under any law for the time being in force
   (b)displayed on the goods or any package containing such goods ;
   (c) displayed on the price list exhibited by him by or under any law for the time being in force;
   (d) agreed between the parties;
   (v) goods which will be hazardous to life and safety when used or being offered for sale to the public,--

   (A) in contravention of any standards relating to safety of such goods as required to be complied with, by or under any law for the time being in force;
   (B) if the trader could have known with due diligence that the goods so offered are unsafe to the public;

   (vi) services which are hazardous or likely to be hazardous to life and safety of the public when used, are being offered by the service provider which such person could have known with due diligence to be injurious to life and safety;”;
   
   

    

(d) 'consumer' means any person who—
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly prom¬ised, or under any system of deferred payment and includes any beneficiary of such services other than the person who 'hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purposes;
Explanation.—For the purposes of this clause, “commercial purpose” does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment;



(e) 'consumer dispute' means a dispute where the person against whom a complaint has been made, denies or disputes the allega¬tions contained in the complaint.

 

 

(f) 'defect' means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods;

 

 

(g) 'deficiency' means any fault, imperfection, shortcoming or inade¬quacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service;



(h) 'District Forum' means a Consumer Disputes Redressal Forum established under clause (a) of section 9;

(i.) 'goods' means goods as defined in the Sale of Goods Act, 1930;

 

(j) “manufacturer” means a person who—
(i) makes or manufactures any goods or part thereof; or
(ii) does not make or manufacture any goods but assembles parts thereof made or manufactured by others; or
(iii) puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer;
Explanation.—Where a manufacturer despatches any goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be the manufacturer even though the parts so despatched to it are assembled at such branch office and are sold or distributed from such branch office;



(jj) 'member' includes the President and a member of the National Commission or a State Commission or a District Forum, as the case may be;



(k) 'National Commission' means the National Consumer Disputes Redressal Commission established under clause (c) of section 9;



( l ) 'notification' means a notification published in the Official Gazette;



(m) 'person' includes,—
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons whether registered under the Societies R(21 of 1860) or not;



(n) 'prescribed' means prescribed by rules made by the State Gov¬ernment, or as the case may be, by the Central Government under this Act;



(nn) “regulation” means the regulations made by the National Commission under this Act;



(nnn) “restrictive trade practice” means a trade practice which tends to bring about manipulation of price or conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include—
(a) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent to buying, hiring or availing of other goods or services;



(o) 'service' means service of any description which is made avail¬able to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing insurance, transport, proc¬essing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;



(oo) “spurious goods and services” mean such goods and services which are claimed to be genuine but they are actually not so;



(p) 'State Commission' means a Consumer Disputes Redressal Com¬mission established in a State under clause (b) of section 9;



(q) 'trader' in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof, and where such goods are sold or distributed in package form, includes the packer thereof;



(r) 'unfair trade practice' means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely;—
(1) the practice of making any statement, whether orally or in writing or by visible representation which,—


(i) falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model;
(ii) falsely represents that the services are of a particular standard, quality or grade;
(iii) falsely represents any re-built, second-hand, reno¬vated, reconditioned or old goods as new goods;
(iv) represents that the goods or services have sponsor¬ship, approval, performance, characteristics, accesso¬ries, uses or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a spon¬sorship or approval or affiliation which such seller or supplier does not have;

(vi) makes a false or misleading representation concern¬ing the need for, or the usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof; Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence; (viii)makes to the public a representation in a form that purports to be—

(i) a warranty or guarantee of a product or of any goods or services; or
(ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result, if such purported warranty or guarantee or prom¬ise is materially misleading or if there is no reasonable prospect that such warranty, guaran¬tee or promise will be carried out;

(ix) materially misleads the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made;
(x) gives false or misleading facts disparaging the goods, services or trade of another person.
Explanation.—For the purposes of clause

(1), a statement that is—

(a) expressed on an article offered or displayed for sale, or on its wrapper or container; or
(b) expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale; or
(c) contained in or on anything that is sold, sent, delivered, transmit¬ted or in any other manner whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be so expressed, made or contained;

 

(2) permits the publication of any advertisement whether in any news¬paper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement.

Explanation .—For the purpose of clause (2), 'bargaining price' means—

(a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or
(b) a price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold;

 

(3) permits—

(a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest;

 

(3A) withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final results of the scheme.
Explanation.—For the purposes of this sub-clause, the participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable time, published, prominently in the same newspapers in which the scheme was originally advertised;

 

(4) permits the sale or supply of goods intended to be used, or are of a kind likely to be used, by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by competent authority relating to performance, composition, contents, design, constructions, fin¬ishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods;

 

(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services.

 

(6) manufacture of spurious goods or offering such goods for sale or adopts deceptive practices in the provision of services.

 

(o) 'service' means service of any description which is made avail¬able to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing insurance, transport, proc¬essing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;


2. Any reference in this Act to any other Act or provision thereof which is not in force in any area to which this Act applies shall be construed to have a reference to the corresponding Act or provision thereof in force in such area.

3. Act not in derogation of any other law.—The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.—

CONSUMER PROTECTION COUNCILS

4. The Central Consumer Protection Council.—

1. The Central Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council).
2. The Central Council shall consist of the following members, namely:—
   (a) the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and
   (b) such number of other official or non-official members represent¬ing such interests as may be prescribed.
   

5. Procedure for meetings of the Central Council.—

1. The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year.
2. The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed.

6. Objects of the Central Council.—The objects of the Central Council shall be to promote and protect the rights of the consumers such as,—

(a) the right to be protected against the marketing of goods and services which are hazardous to life and property;
(b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices;
(c) the right to be assured, wherever possible, access to a variety of goods and services at competitive prices;
(d) the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of con¬sumers; and
(f) the right to consumer education.

7. The State Consumer Protection Councils.--

 

1. The State Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council for..................... (hereinafter referred to as the State Council).
2. The State Council shall consist of the following members, namely:—
   (a) the Minister incharge of consumer affairs in the State Government who shall be its Chairman;
   (b) such number of other official or non-official members representing such interests as may be prescribed by the State Government.
   (c) such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.
3. The State Council shall meet as and when necessary but not less than two meetings shall be held every year.
4. The State Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.

8. Objects of the State Council.—The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in clauses (a) to (f) of section 6.

CONSUMER DISPUTES REDRESSAL AGENCIES

9. Establishment of Consumer Disputes Redressal Agencies. There shall be established for the purposes of this Act, the following agencies, namely:—

(a) 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:
Provided that the State Government may, if it deems fit, establish more than one District Forum in a district.
(b) a Consumer Disputes Redressal Commission to be known as the 'State Commission' established by the State Government in the State by notification; and
(c) a National Consumer Disputes Redressal Commission established by the Central Government by notification.

10. Composition of the District Forum.—

1. Each District Forum shall consist of,—-
(a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President;
(b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely:—

(i) be not less than thirty-five years of age,
(ii) possess a bachelor's degree from a recognised university,
(iii) 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: Provided that a person shall be disqualified for appointment as a member if he—

(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the state Government involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or
(e) has, in the opinion of the state Government, such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or
(f) has such other disqualifications as may be prescribed by the State Government;

(1A) Every appointment under sub-section (I) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely:—
(i) the President of the State Commission —Chairman.
(ii) Secretary, Law Department of the State —Member.
(iii) Secretary incharge of the Department dealing with consumer affairs in the State —Member.

Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the High Court for nominating a sitting Judge of that High Court to act as Chairman.

 

(2) Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five years, whichever is earlier:



Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of sixty-five years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is also made on the basis of the recommendation of the Selection Committee:
Provided further that a member may resign his office in writing under his hand addressed to the State Government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the person who has resigned:
Provided also that a person appointed as the President or as a member, before the commencement of the Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as President or member, as the case may be, till the completion of his term.

 

(3) The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the District Forum shall be such as may be prescribed by the State Government.



Provided that the appointment of a member on whole-time basis shall be made by the State Government on the recommendation of the President of the State Commission taking into consideration such factors as may be prescribed including the work load of the District Forum.

11. Jurisdiction of the District Forum.—

1. Subject to the other provisions of this Act, 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.
2. A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,—

(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain, or
(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.

12. Manner in which complaint shall be made.—

 

1. A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by –
   (a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided;
   (b) any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not;
   (c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or
   (d) the Central Government or the State Government, as the case may be, either in its individual capacity or as a representative of interests of the consumers in general.
2. Every complaint filed under sub-section (1) shall be accompanied with such amount of fee and payable in such manner as may be prescribed.
3. On receipt of a complaint made under sub-section (1), the District Forum may, by order, allow the complaint to be proceeded with or rejected:
   Provided that a complaint shall not be rejected under this section unless an opportunity of being heard has been given to the complainant:
   Provided further that the admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint was received.
4. Where a complaint is allowed to be proceeded with under sub-section (3), the District Forum may proceed with the complaint in the manner provided under this Act:
   Provided that where a complaint has been admitted by the District Forum, it shall not be transferred to any other court or tribunal or any authority set up by or under any other law for the time being in force.
   Explanation.- For the purpose of this section “recognised consumer association” means any voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force”.

13. Procedure on admission of complaint.—

1. The District Forum shall, on admission of a complaint, if it relates to any goods,—
   (a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite party mentioned in the complaint directing him to give his version of the case
   (b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute in the manner specified in clauses (c) to (g);
   (c)where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, the District Forum shall obtain a sample of the goods from the complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test, whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the District Forum within a period of fifty-five days of the receipt of the reference or within such extended period as may be granted by the District Forum;
   (d) before any sample of the goods is referred to any appropriate laboratory under clause (c), the District Forum may require the complainant to deposit to the credit of the Forum such fees as may be specified, for payment to the appropriate laboratory for carry¬ing out the necessary analysis or test in relation to the goods in question;
   (e) the District Forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks as the District Forum may feel appropriate to the opposite party;
   (f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the correctness of the meth¬ods of analysis or test adopted by the appropriate laboratory, the District Forum shall require the opposite party or the complain¬ant to submit in writing his objections in regard to the report made by the appropriate laboratory;
   (g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness or otherwise of the report made by the appro¬priate laboratory and also as to the objection made in relation thereto under clause (/) and issue an appropriate order under section 14.
2. the District Forum shall, if the complaint admitted by it under section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services,—
   (a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum;
   (b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute,—
   
   (i) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint, or
   (ii) ex parte on the basis of evidence brought to its notice by the complainant where the opposite party omits or fails to take any action to represent his case within the time given by the Forum.
   
   (c) where the complainant fails to appear on the date of hearing before the District Forum, the District Forum may either dismiss the complaint for default or decide it on merits.
3. No proceedings complying with the procedure laid down in sub¬sections (1 ) and (2) shall be called in question in any court on the ground that the principles of natural justice have not been complied with.
   
   (3A) Every complaint shall be heard as expeditiously as possible and endeavour shall be made to decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities:
   Provided that no adjournment shall be ordinarily granted by the District Forum unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by the Forum:
   Provided further that the District Forum shall make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this Act.
   Provided also that in the event of a complaint being disposed of after the period so specified, the District Forum shall record in writing, the reasons for the same at the time of disposing of the said complaint.
   
   (3B) Where during the pendency of any proceeding before the District Forum, it appears to it necessary, it may pass such interim order as is just and proper in the facts and circumstances of the case.
4. For the purposes of this section, the District Forum shall have the same powers as are vested in a civil court under Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:-
   
   (i) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath;
   (ii) the discovery and production of any document or other material object producible as evidence;
   (iii) the reception of evidence on affidavits;
   (iv) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;
   (v) issuing of any commission for the examination of any witness, an
   (vi) any other matter which may be prescribed.
   
5. Every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Code (45 of 1860), and the District Forum shall be deemed to be a civil court for the purposes of section 195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
   
6. Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of section 2, the provisions of rule 8 of Order I of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the District Forum thereon.
   
7. In the event of death of a complainant who is a consumer or of the opposite party against whom the complaint has been filed, the provisions of Order XXII of the First Schedule to the Code of Civil Procedure, 1908 shall apply subject to the modification that every reference therein to the plaintiff and the defendant shall be construed as reference to a complainant or the opposite party, as the case may be.

14. Finding of the District Forum.—

1. If, after the proceeding conducted under section 13, the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things, namely:—
   
   (a) to remove the defect pointed out by the appropriate laboratory from the goods in question;
   (b) to replace the goods with new goods of similar description which shall be free from any defect;
   (c)to return to the complainant the price, or, as the case may be, the charges paid by the complainant;
   (d)to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party.
   Provided that the District Forum shall have the power to grant punitive damages in such circumstances as it deems fit;
   (e) to remove the defects in goods or deficiencies in the services in question;
   (f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat it;
   (g)not to offer the hazardous goods for sale;
   (h) to withdraw the hazardous goods from being offered for sale;
   (ha) to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;
   (hb) to pay such sum as may be determined by it if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently:
   Provided that the minimum amount of sum so payable shall not be less than five per cent. of the value of such defective goods sold or service provided, as the case may be, to such consumers:
   Provided further that the amount so obtained shall be credited in favour of such person and utilized in such manner as may be prescribed;
   (hc) to issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement;
   (i) to provide for adequate costs to parties.
   
2. Every proceeding referred to in sub-section (1) shall be conducted by the President of the District Forum and at least one member thereof sitting together:
   Provided that where a member, for any reason, is unable to conduct a proceeding till it is completed, the President and the other member shall continue the proceeding from the stage at which it was last heard by the previous member.
   (2A) Every order made by the District Forum under sub-section (1) shall be signed by its President and the member or members who conducted the proceeding:
   Provided that where the proceeding is conducted by the President and one member 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 the opinion of the majority shall be the order of the District Forum.
   
3. Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the District Forum, its sittings and other matters shall be such as may be prescribed by the State Government.

15. Appeal.—

Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed:
Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not finding it within that period.
Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the District Forum, shall be entertained by the State Commission unless the appellant has deposited in the prescribed manner fifty per cent. of that amount or twenty-five thousand rupees, whichever is less:

16. Composition of the State Commission.—

1. Each State Com¬mission shall consist of—
   (a) a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President:
   Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;
   (b) not less than two, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the following qualifications, namely:—
   
   (i) be not less than thirty-five years of age;
   (ii) possess a bachelor's degree from a recognised university; and
   (iii) 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:
   Provided that not more than fifty per cent. of the members shall be from amongst persons having a judicial background.
   Explanation.—For the purposes of this clause, the expression 'persons having judicial background'' shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level:
   Provided further that a person shall be disqualified for appointment as a member if he—
   (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the State Government, involves moral turpitude; or
   (b) is an undischarged insolvent; or
   (c) is of unsound mind and stands so declared by a competent
   court; or
   (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or
   (e) has, in the opinion of the State Government, such financial or other interest, as is likely to affect prejudicially the discharge by him of his functions as a member; or
   (f) has such other disqualifications as may be prescribed by the State Government.
   
   1A. Every appointment under sub-section
   (1) shall be made by the State Government on the recommendation of a Selection Committee consisting of the following members, namely:—
   (i) President of the State Commission........... Chairman;
   (ii) Secretary of the Law Department of the State Member;
   (iii) Secretary incharge of the Department dealing
   with Consumer Affairs in the State............... Member:
   Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the High Court for nominating a sitting Judge of that High Court to act as Chairman.
   
   1B.
   (i) The jurisdiction, powers and authority of the State Commission may be exercised by Benches thereof.
   (ii) A Bench may be constituted by the President with one or more members as the President may deem fit.
   (iii) If the members of a Bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and make a reference to the President who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more or the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case, including those who first heard it.
   
2. The salary or honorarium and other allowances payable to, and the other terms and conditions of service of, the members of the State Commission shall be such as may be prescribed by the State Government.
   Provided that the appointment of a member on whole-time basis shall be made by the State Government on the recommendation of the President of the State Commission taking into consideration such factors as may be prescribed including the work load of the State Commission.
   
3. Every member of the State Commission shall hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier: Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of sixty-seven years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is made on the basis of the recommendation of the Selection Committee:
   Provided further that a person appointed as a President of the State Commission shall also be eligible for re-appointment in the manner provided in clause (a) of sub-section (1) of this section:
   Provided also that a member may resign his office in writing under his hand addressed to the State Government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the person who has resigned.
   
4. Notwithstanding anything contained in sub-section (3), a person appointed as the President or as a member, before the commencement of the Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as President or member, as the case may be, till the completion of his term.

17. Jurisdiction of the State Commission.—

1. Subject to the other provisions of this Act, the State Commission shall have jurisdiction—
   (a) to entertain—
   (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore; 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 con¬sumer 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 of its jurisdiction illegally or with material irregularity.
   
2. A complaint shall be instituted in a State Commission within the limits of whose jurisdiction,—
   (a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain; or
   (b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office or personally works for gain, provided that in such case either the permission of the State Commission is given or the opposite parties who do not reside or carry on business or have a branch office or personally work for gain, as the case may be, acquiesce in such institution; or
   (c) the cause of action, wholly or in part, arises.

17A. On the application of the complainant or of its own motion, the State Commission may, at any stage of the proceeding, transfer any complaint pending before the District Forum to another District Forum within the State if the interest of justice so requires.

 

17B. The State Commission shall ordinarily function in the State Capital but may perform its functions at such other place as the State Government may, in consultation with the State Commission, notify in the Official Gazette, from time to time.

 

18. Procedure applicable to State Commissions.—The provisions of Sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the District Forum shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the State Commission.

 

( 18A. Omitted )

 

l9. Appeals.—

Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 17 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed:

Provided that the National Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited in the prescribed manner fifty per cent. of the amount or rupees thirty-five thousand, whichever is less:

19A.

An appeal filed before the State Commission or the National Commission shall be heard as expeditiously as possible and an endeavour shall be made to finally dispose of the appeal within a period of ninety days from the date of its admission:
Provided that no adjournment shall be ordinarily granted by the State Commission or the National Commission, as the case may be, unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by such Commission:
Provided further that the State Commission or the National Commission, as the case may be, shall make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this Act.

Provided also that in the event of an appeal being disposed of after the period so specified, the State Commission or, the National Commission, as the case may be, shall record in writing the reasons for the same at the time of disposing of the said appeal.

20. Composition of the 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;
Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India;
(b) not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the following qualifications, namely:—

1. be not less than thirty-five years of age;
2. possess a bachelor's degree from a recognised university; and
3. 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:
   Provided that not more than fifty per cent. of the members shall be from amongst the persons having a judicial background.
   Explanation.—For the purposes of this clause, the expression 'persons having judicial background'' shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level:
   Provided further that a person shall be disqualified for appointment if he—

   (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or
   (b) is an undischarged insolvent; or
   (c) is of unsound mind and stands so declared by a competent court; or
   (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or
   (e) has in the opinion of the Central Government such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or
   (f) has such other disqualifications as may be prescribed by the Central Government : Provided also 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 person who is a Judge of the Supreme Court, — Chairman;

   to be nominated by the Chief Justice of India
   
   

   • the Secretary in the Department of Legal Affairs — Member;

   in the Government of India
   
   

   • Secretary of the Department dealing with consumer — Member.;
     affairs in the Government of India

(1A)

(i) The jurisdiction, powers and authority of the National Commission may be exercised by Benches thereof.
(ii) A Bench may be constituted by the President with one or more members as the President may deem fit.
(iii) if the Members of a Bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the President who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more or the other Members and such point or points shall be decided according to the opinion of the majority of the Members who have heard the case, including those who first heard it.

 

2. The salary or honorarium and other allowances payable to and the other terms and conditions of service of the members of the National Commission shall be such as may be prescribed by the Central Government.
   
   
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:
   Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of seventy years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re-appointment is made on the basis of the recommendation of the Selection Committee:
   Provided further that a person appointed as a President of the National Commission shall also be eligible for re-appointment in the manner provided in clause (a) of sub-section (1) :
   Provided also that a member may resign his office in writing under his hand addressed to the Central Government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1A) in place of the person who has resigned.
   
4. Notwithstanding anything contained in sub-section (3), a person appointed as a President or as a member before the commencement of the Consumer Protection (Amendment) Act, 2002 shall continue to hold such office as President or member, as the case may be, till the completion of his term.

22. Power of and procedure applicable to the National Commission.—

(1) The provisions of sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the District Forum shall, with such modifications as may be considered necessary by the Commission, be applicable to the disposal of disputes by the National Commission.

(2) Without prejudice to the provisions contained in sub-section (1), the National Commission shall have the power to review any order made by it, when there is an error apparent on the face of record.

22A. Where an order is passed by the National Commission ex parte against the opposite party or a complainant, as the case may be, the aggrieved party may apply to the Commission to set aside the said order in the interest of justice.

 

22B. On the application of the complainant or of its own motion, the National Commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending before the District Forum of one State to a District Forum of another State or before one State Commission to another State Commission.

 

22C. The National Commission shall ordinarily function at New Delhi and perform its functions at such other place as the Central Government may, in consultation with the National Commission, notify in the Official Gazette, from time to time.

22D. When the office of President of a District Forum, State Commission, or of the National Commission, as the case may be, is vacant or a person occupying such office is, by reason of absence or otherwise, unable to perform the duties of his office, these shall be performed by the senior-most member of the District Forum, the State Commission or of the National Commission, as the case may be:
Provided that where a retired Judge of a High Court is a member of the National Commission, such member or where the number of such members is more than one, the senior-most person among such members, shall preside over the National Commission in the absence of President of that Commission.

 

23. Appeal.—

Any person, aggrieved by an order made by the National Commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 21, may prefer an appeal against such order of the Supreme Court within a period of thirty days from the date of the order:

Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

Provided further that no appeal by a person who is required to pay any amount in terms of an order of the National Commission shall be entertained by the Supreme Court unless that person has deposited in the prescribed manner fifty per cent. of that amount or rupees fifty thousand, whichever is less.

 

24A. Limitation period.--

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

24B. Administrative control.—

1. The National Commission shall have administrative control over all the State Commissions in the following matters, namely:—
   (i) calling for periodical return regarding the institution, disposal pendency of cases;
   (ii) issuance of instructions regarding adoption of uniform pro¬cedure in the hearing of matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of English translation of judgments written in any language, speedy grant of copies of documents;
   (iii) generally overseeing the functioning of the State Commis¬sions or the District Fora to ensure that the objects and purposes of the Act are best served without in any way interfering with their quasi-judicial freedom.
2. The State Commission shall have administrative control over all the District Fora within its jurisdiction in all matters referred to in sub-section (1 ).

25. Enforcement of orders by the Forum, the State Commission or the National Commission.—

(1) Where an interim order made under this Act, is not complied with the District Forum or the State Commission or the National Commission, as the case may be, may order the property of the person, not complying with such order to be attached.
(2) No attachment made under sub-section (1) shall remain in force for more than three months at the end of which, if the non-compliance continues, the property attached may be sold and out of the proceeds thereof, the District Forum or the State Commission or the National Commission may award such damages as it thinks fit to the complainant and shall pay the balance, if any, to the party entitled thereto.
(3) Where any amount is due from any person under an order made by a
District Forum, State Commission or the National Commission, as the case may be,
the person entitled to the amount may make an application to the District Forum, the State Commission or the National Commission, as the case may be, and such District Forum or the State Commission or the National Commission may issue a certificate for the said amount to the Collector of the district (by whatever name called) and the Collector shall proceed to recover the amount in the same manner as arrears of land revenue.

26. Dismissal of frivolous or vexatious complaints.—

Where a complaint instituted before the District Forum, the State Commission or the National Commission, as the case may be, is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order

27. Penalties.—

(1) Where a trader or a person against whom a complaint is made or the complainant fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, as the case may be, such trader or person or complainant shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousands rupees but which may extend to ten thousand rupees, or with both:

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the District Forum or the State Commission or the National Commission, as the case may be, shall have the power of a Judicial Magistrate of the first class for the trial of offences under this Act, and on such conferment of powers, the District Forum or the State Commission or the National Commission, as the case may be, on whom the powers are so conferred, shall be deemed to be a Judicial Magistrate of the first class for the purpose of the Code of Criminal Procedure, 1973.

(3) All offences under this Act may be tried summarily by the District Forum or the State Commission or the National Commission, as the case may be.

27A.

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an appeal under section 27, both on facts and on law, shall lie from -

(a) the order made by the District Forum to the State Commission ;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission to the Supreme Court.

(2) Except as aforesaid, no appeal shall lie to any court from any order of a District Forum or a State Commission or the National Commission.

(3) Every appeal under this section shall be preferred within a period of thirty days from the date of an order of a District Forum or a State Commission or, as the case may be, the National Commission :

Provided that the State Commission or the National Commission or the Supreme Court, as the case may be, may entertain an appeal after the expiry of the said period of thirty days, if, it is satisfied that the appellant had sufficient cause for not preferring the appeal within the period of thirty days.

MISCELLANEOUS

28. Protection of action taken in good faith.—

No suit, prosecution or other legal proceedings shall lie against the members of the District Forum, the State Commission or the National Commission or any officer or person acting under the direction of the District Forum, the State Commission or the National Commission for executing any order made by it or in respect of anything which is in good faith done or intended to be done by such member, officer or person under this Act or under any rule or order made thereunder.

28A.

1. All notices required by this Act to be served shall be served in the manner hereinafter mentioned in sub-section (2).
2. The service of notices may be made by delivering or transmitting a copy thereof by registered post acknowledgment due addressed to opposite party against whom complaint is made or to the complainant by speed post or by such courier service as are approved by the District Forum, the State Commission or the National Commission, as the case may be, or by any other means of transmission of documents (including FAX message).
3. When an acknowledgment or any other receipt purporting to be signed by the opposite party or his agent or by the complainant is received by the District Forum, the State Commission or the National Commission, as the case may be, or postal article containing the notice is received back by such District Forum, State Commission or the National Commission, with an endorsement purporting to have been made by a postal employee or by any person authorized by the courier service to the effect that the opposite party or his agent or complainant had refused to take delivery of the postal article containing the notice or had refused to accept the notice by any other means specified in sub- section (2) when tendered or transmitted to him, the District Forum or the State Commission or the National Commission, as the case may be, shall declare that the notice had been duly served on the opposite party or to the complainant :
   Provided that where the notice was properly addressed, pre-paid and duly sent by registered post acknowledgment due, a declaration referred to in this sub-section shall be made notwithstanding the fact that the acknowledgment has been lost or mislaid, or for any other reason, has not been received by the District Forum, the State Commission or the National Commission, as the case may be, within thirty days from the date of issue of notice.
   All notices required to be served on an opposite party or to complainant shall be deemed to be sufficiently served, if addressed in the case of the opposite party to the place where business or profession is carried and in case of complainant, the place where such person actually and voluntarily resides.

29. Power to remove difficulties.—

1. If any difficulty arises in giving effect to the provisions of this Act, the (Central Government may, by order in the official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty
   Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act
2. Every order made under this section shall, as soon as may be after it is made be laid before each House of Parliament
3. If any difficulty arises in giving effect to the provisions of the Consumer Protection (Amendment) Act, 2002, the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty:
   Provided that no such order shall be made after the expiry of a period of two years from the commencement of the Consumer Protection (Amendment) Act, 2002.
4. Every order made under sub-section (3) shall be laid before each House of Parliament.

29A. Vacancies or defects in appointment not to invalidate orders.—

No act or proceeding of the District Forum, the State Commission or the National Commission shall be invalid by reason only of the existence of any vacancy amongst its member or any defect in the constitution thereof.

30. Power to make rules.--

 

1. The Central Government may, by notification, make rules for carrying out the provisions contained in clause (a) of sub-section (1) of section 2, clause (b) of sub-section (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, section 19, clause (b) of sub-section (1) and sub-section (2) of section 20, section 22 and section 23 of this Act.
2. The State Government may, by notification, make rules for carrying out the provisions contained in clause (b) of sub-section (2) and sub-section (4) of section 7, clause (b) of sub-section (2) and sub-section (4) of section 8A, clause (b) of sub-section (1) and sub-section (3) of section 10, clause (c) of sub-section (1) of section 13 clause (hb) of sub-section (1) and sub-section (3) of section 14, section 15 and clause (b) of sub-section (1) and sub-section (2) of section 16 of this Act.

30A.

1. The National Commission may, with the previous approval of the Central Government, by notification, make regulations not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
2. In particular and without prejudice to the generality of the foregoing power, such regulations may make provisions for the cost of adjournment of any proceeding before the District Forum, the State Commission or the National Commission, as the case may be, which a party may be ordered to pay.

31. Laying of rules.--

1. Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.
2. Every rule made by a State Government under this Act shall be laid as soon as may be after it is made, before the State Legislature.

THE CONSUMER PROTECTION RULES 1987
(Amended up to 13.10.2006)

In exercise of the powers conferred by sub-section (1) of section 30 of the Consumer Protection Act , 1986 (68 of l986), Central Government hereby makes the following rules, namely:

1. Short title, extent and commencement.--

(1) These rules may be called the Consumer Protection Rules,1987.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.-ln these rules, unless the context otherwise requires--

(a) 'Act' means the Consumer Protection Act l986 (68 of 1986);
(b) 'agent' means a person duly authorised by a party to present any complaint,
appeal or reply on its behalf before the National Commission;
(c) 'appellant' means a party which makes an appeal against the order of the State
Commission;
(d) 'chairman' means a chairman of the Central Consumer Protection Council
established under sub-section (1 ) of the section 4 of the Act;
(e) 'memorandum' means any memorandum of appeal filed by the appellant;
(f) 'opposite party' means a person who answers complaint or claim;
(g) 'president' means the President of the National Commission;
(h) 'respondent' means the person who answers any memorandum of appeal;
(i) 'section' means section of the Act;
(j) 'state' includes Union territories also;
(k) words and expressions used in the rules and not defined but defined in the Act
shall have the meanings respectively assigned to them in the Act.

2A. State Governments to recognise a laboratory as an appropriate Iaboratory.-

( 1 ) For the purpose of obtaining recognition as an appropriate laboratory, the applicant shall send application, in triplicate, in the proforma prescribed by the Bureau of Indian Standards with the relevant details to the Department concerned with the consumer protection work in the State Government.

(2) 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.

(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.

3. The Constitution of the Central Consumer Protection Council and the Working Groups -

(1) The Central Government shall, by notification in the Official Gazette constitute the Central Consumer Protection Council (herein after referred to as the Central Council) which shall consist 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;

(b) 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;
(ca) 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 occasion;

(d) two Members of Parliament—one from the Lok Sabha and one from the Rajya Sabha;

(e) deleted;

(f) representatives of the Central Government Departments and autonomous organisations concerned with consumer interests—not exceeding five;

(fa) The Registrar, National Consumer Disputes Redressal Commission, New Delhi

(g) representatives of consumer organisations from amongst the Indian members of the International Organization, namely, Consumer International – not exceeding six, to be nominated by the Central Government;
(ga) representatives with proven expertise and experience who are capable of representing consumer interests, drawn from amongst consumer organisations, consumer activists, women, farmers, trade and industry – not exceeding five, one from each of the regions specified in schedule annexed to these rules;
(h) deleted;

(i) deleted;

(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.

(2) The term of the Council shall be three years.

(3) 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.

(4) deleted.

 

4. Procedure of the Central Council.—

 

Under sub-section (2) of section 5, the Central Council shall observe the following procedure in regard to the transaction of its business,—

(1) 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.

(2) 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.

(3) Every 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.

(4) No proceedings of the Central Council shall be invalid merely by reasons of existence of any vacancy in or any defect in the constitution of the Council.

(5) 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.

(6) In connection with the journey undertaken to and fro by the non-official members for attending the meeting of the Central Consumer Protection Council or its working group, they shall be entitled to avail first class or two-tier air- conditioned class of railway accommodation by all trains (including Rajdhani Express) and claim such fare or cost of actual mode of travel, whichever is less. The non-official members from Island territories shall be entitled to, to and fro air journey (economy class) in domestic airlines from the Islands to the nearest main-land airport and thereafter rail fare by entitled class. The non-official members who are senior citizens shall be entitled to, to and fro air-journey (economy class) in domestic airlines on availing senior citizen concessional air fare for their journeys provided the distance being travelled is 1000 kms or above. The non-official members shall be entitled to a sum of Rs.1000 per each day of the meeting as incidental charges to cover the expenditure towards their daily allowance, lodging, local conveyance from residence to the station/airport and from station/airport to the venue of meeting and vice-versa. Every claim made under this sub-rule shall be subject to certifying that the member will not claim any benefit from any other Central Government Ministry, Department or Organization during his visit for attending the meeting of the Central Consumer Protection Council or any of its Working Group. Local non-official members residing at the place of the venue of the meeting, shall be paid consolidated conveyance and hire charges to the tune of Rs. 200 per diem irrespective of the classification of the city. Members of Parliament attending meetings of the Council or its Working Group shall be entitled to travelling and daily allowances at such rates as are admissible to such members'.

(7) The resolution passed by the Central Council shall be recommendatory in nature.

5. Place of the National Commission.—The office of the National Commission shall be located in the Union Territory of Delhi.

6. Working days and office hours of the National Commission.—The working days and office hours of the National Commission shall be the same as that of the Central Government.

7. Seal and emblem.—The official seal and emblem of the National Commission shall be such as the Central Government may specify.

8. Sitting of the National Commission.—The sitting of the National Commission as and when necessary, shall be convened by the President.

9. Staff of the National Commission.—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.


9A. Fee for making complaints before District Forum -

(1) 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 Act shall be accompanied by a fee, as specified in the table given below in the form of crossed Demand Draft drawn on a nationalised bank or through a crossed Indian Postal Order in favour 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.
(2) The concerned authority referred to in sub-rule (1) shall credit the amount of fee received by it into the Consumer Welfare Fund of the respective State and where such Fund is not established, into the Receipt Account of the State Government and in the case of the National Commission, to the Consumer Welfare Fund of the Central Government.

TABLE

Sl. No. (1)	Value of goods or services and the compensation claimed (2)	Amount of fee payable (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

 

(3) The complainant who are 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.

10. Additional powers of the National Commission, State Commission and District Forum.--

1. 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.
   
2. (a) Where during any proceedings under this Act, 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, authorise any officer to exercise the power of entry and search of any premises. Such authorised officer may also seize such books, papers, documents or commodities as are required for the purpose of this 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.
   
   (b) 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.

10A. Credit of the fine into the Consumer Welfare Fund when consumers are not identified conveniently-

(1) 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 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).

(2) Any amount credited to the said Fund shall be utilized in accordance with the provisions of the Consumer Welfare Fund Rules, 1992.

10B Number of Members in the National Commission: - The National Commission shall consist of not less than four members and not more than nine members and at least one of them shall be a woman.

11. Salaries, honorarium and other allowances of the President and Members of the National Commission.—

1. The President of the National Commission shall be entitled to salary, allowances and other perquisites as are available to a sitting Judge of the Supreme Court.
   (1A) The other members of the National Commission appointed on whole-time basis shall be entitled to the following honorarium and other allowances with effect from the 1st day of April, 2006, namely:-

   (a) 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;
   (b) 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;
   (c) the members shall be provided with Government accommodation or receive house rent allowance of eight thousand rupees per month in lieu thereof;
   (d) 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 litres of petrol shall be supplied or the price therefor shall be paid;
   (e) the members shall be entitled to one thousand free calls for the telephone installed at their residence, with STD and ISD facilities; and
   (f) the members shall be entitled to fifteen days casual leave in a year.

2. 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.
   
3. The honorarium or the salary, as the case may be, and other allowances shall be defrayed out of the Consolidated Fund of India.

12. Terms and conditions of service of the President and members of the National Commission.--

1. Before appointment, 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.
   
2. Deleted.
   
3. Notwithstanding anything contained in sub-rule (2) 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.
   
4. The terms and conditions of service of the President and the members shall not be varied to their disadvantage during their tenure of office.
   
5. A casual vacancy caused by resignation or removal of the President or any other member of the National Commission under sub-rule (3) or otherwise shall be filled by fresh appointment.
   
6. 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 22D be performed by the senior most member of the National Commission.
   
7. 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 organisation 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.

12A. Procedure for selection of Members –

1. Save as otherwise provided in sub-rule (2), the process of appointment of a Member shall be initiated at least three months before the vacancy arises.
   
2. If a post falls vacant due to resignation or death of a Member or creation of a new post, the process for filling the post shall be initiated immediately after the post has fallen vacant or is created, as the case may be.
   
3. An advertisement of a vacancy inviting applications from eligible candidates may be published in leading newspapers in India or by vacancy circulars or both, as may be decided by the Central Government.
   
4. After scrutiny of the applications received till the last date specified for receipt of applications, a list of eligible candidates alongwith their applications shall be placed before the Selection Committee constituted under the third proviso to Sub-section (1) of Section 20.
   
5. The Selection Committee shall consider all the applications of eligible applicants referred to it.
   
6. The Selection Committee shall, subject to the provisions of sub-rule (6A), assess the suitability of the candidates for the post of Member:
   Provided that the Selection Committee may, if it considers necessary, depending on the number of candidates, short list them on the basis of comparative merit and experience of such candidates for selection.
   
   (6A) The Selection Committee shall assess the suitability of the candidates and where short listing is done, from among the short-listed candidates, for the post of Member in the following manner, namely:-

(a) in the case of candidates having judicial background, by assessing them on the basis of the judgements and other judicial orders passed by such candidates;
(b) in the case of candidates having experience of working under the Central Government or any State Government or an undertaking under the Central Government or a State Government, by assessing such candidates on the basis of their Annual Confidential Reports and their experience relevant to the post applied for;
(c) in other cases, the suitability of the short listed candidates shall be assessed by the Selection Committee on the basis of personal interview conducted by it:
Provided that notwithstanding anything contained in this sub-rule, the Selection Committee may, for assessing the suitability of a class or category of candidates, if it considers necessary, call such class or category of candidates for interview for assessing their suitability for the post of Member.

7. The Selection Committee may, on the basis of its assessment made by it, recommend a panel of names of candidates for appointment as Members from amongst the applicants referred to in sub-rule (5) in order of merit for the consideration of the Central Government.
   
8. The Central Government shall, before seeking approval of the Appointments Committee of the Cabinet, verify or cause to be verified the credentials and antecedents of the candidates selected by the Central Government from the panel recommended by the Selection Committee and satisfy the suitability of such candidates for appointment as Members.
   
9. Every appointment of a Member shall be subject to his medical fitness.

13. Removal of President or members from office in certain circumstances.--

1. The Central Government may remove from office, the President or any member, who,—

(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as the President or the member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the President or a member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest ;or
(f) remain absent in three consecutive sittings except for reasons beyond his control.


2. Notwithstanding anything contained in sub rule (1), the President or any member of the National Commission shall not be removed from his office except by an order made by the Central Government on the grounds specified in clauses (d), (e) and (f) of that sub-rule and after an inquiry held by a sitting Judge of the Supreme Court nominated by the Chief Justice of India in which the President or member of the National Commission, as the case may be, has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges and found guilty.

14. Procedure to be followed by the National Commission.—

(1) 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.

(1A) Every complaint under sub-rule (1) shall be accompanied by the relevant fee as is specified in rule 9A.

(2) 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.

(3) 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.

(4) 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.

(4A) In the event of a complaint being disposed of after the period specified in sub-rule (4), the National Commission shall record in writing, the reasons for the delay in such disposal.

(5) If after the proceedings conducted under sub-rule (3), 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 2 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.

14A. 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.
Explanation.- In this rule, '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).

15. Procedure for hearing the appeal.--

( 1 ) 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.

(2) Every memorandum filed under sub-rule (I) 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.

(3) Each memorandum shall be accompanied by a crossed demand draft as referred to in rule 14A 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.

(4) 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.

(5) The appellant shall submit four copies or such number of copies of the memorandum to the Commission for official purpose.

(6) On the date of hearing or on any other day to which hearing may be adjourned, it shall be obligatory for the parties or their agents to appear before the National Commission . If appellant or his agent fails to appear on such date, the National Commission may in its discretion either dismiss the appeal or decide ex-parte on merits. If the respondent or his agent fails to appear on such date, the National Commission shall proceed ex-parte and shall decide the appeal on merits of the case.

(7) 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:

Provided that 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.

(8) 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.

(9) The order of the National Commission shall be communicated to the parties concerned free of cost.

15A. Sitting of the National Commission and signing of orders.--

(1) 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 member, 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.

(2) 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.

16. Manner of deposit of amount in 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 favour of Registrar, Supreme Court, payable at Delhi.
Explanation.- In this rule, '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)

 

 

SCHEDULE I
[See rule 3 (1) (c)]

1. Eastern Region - to consist of the States of Bihar, Chattisgarh, Jharkhand, Orissa, and West Bengal.
2. Western Region - to consist of the States of Goa, Gujarat, Maharashtra, Madhya Pradesh and Rajasthan.
3. Northern Region - to consist of the States of Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Uttar Pradesh and Uttaranchal.
4. Southern Region - to consist of the States of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.
5. North Eastern Region – to consist of the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.

SCHEDULE II
[See rule 3 (1) (ca)]

The Union Territories of the Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep, Pondicherry and the National Capital Territory of Delhi.

TO BE PUBLISHED IN THE GAZETTE OF INDIA. EXTRAORDINARY, PART II, SECTION 3,

SUB-SECTION (i)

Government of India
National Consumer Disputes Redressal Commission

New Delhi, the 31st May, 2005.

NOTIFICATION

G.S.R. 342(E). - 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:-

1. Short title and commencement.-

(1 ) These regulations may be called the Consumer

Protection Regulations, 2005.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.- In these regulations unless the context otherwise requires,-

(a) "Act" means the Consumer Protection Act, 1986 (68 of 1986);
(b) "Consumer Forum" means a District Forum. a Consumer Disputes Redressal

Commission established in a State under clause (b) of section 9 (hereafter called the State

Commission) or the National Consumer Disputes Redressal Commission;
(c) "Registrar" means the head of the ministerial establishment of the Consumer Forum

and exercising such powers and functions as are conferred upon him by the President of the

Consumer Forum:
(d) "rules" means the rules made under the Act;
(e) "section" means a section of the Act:
(f) words and expressions used in these regulations and not defined herein but defined

either in the Act or in the rules shall have the same meaning respectively assigned to them

either in the Act or in the rules, as the case may be.

3. Arrangements in Consumer Forum,--

(1 ) A Consumer Forum, being not a regular court,

shall have the arrangements as to depict it distinct from a court.

(2) 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.

(3) 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.

 

4. Dress code.-

(1 ) 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.

5. Hearing hours.- Subject to the provisions of the rules, the normal working hours of 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

6. Cause List.-

(1 ) Cause list of the Consumer forum for the following entire week shall be

made ready before the close of the working hours of the preceding week and displayed on the notice board. The cause list in respect of a Consumer Forum having a website shall also be hosted on the website.

(2) Cause list shall be split into three different parts, namely:-

(i) Admission and after notice matters;
(ii) Matters where evidence is to be recorded;
(iii) Final disposal matters.

(3) Every cause list shall contain the following particulars, namely:-

(1) Sl. No. (2) No. of the matter (3) Names of the parties (4) Name of the party or Counsel or agent appearing

(4) If a date of hearing is given in the presence of parties or their agents, it shall not be a ground for non-appearance for the reason that the cause list for the concerned date does not show the matter or contains incorrect entry or there is omission of the particulars of the matter.

7. Institution of complaints, appeals and revision petitions.-

(1 ) Where a complaint is filed in District Forum or State Commission it shall be filed in three sets and where it is filed in the National Commission it shall be filed in four sets with additional sets equal to the number of

opposite party(ies)/respondent(s).

(2) Every complaint shall clearly contain particulars of dispute and the relief claimed and shall also be accompanied by copies of such documents as are necessary to prove the claim made in the complaint.

8. Nomenclature to be given to the complaints, appeals and revisions petitions. -

( 1 ) A complaint shall hereinafter be referred to as Consumer Complaint (C.C.) instead of O.P., e.g., C.C. No.2 of 2005.

(2) 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.

9. Scrutiny of complaint, appeal, petition and revision petition.-

(1) Every complaint, appeal,

or revision petition shall after it is filed be numbered by the Registrar.

(2) If there is any defect in the filing of the complaint, appeal or revision petition, the particulars of such defects shall be recorded and the party or his agents shall be informed of the defects asking them for removing the defects within 15 days.

(3) In case the party disputes in the correctness of the defects pointed out the matter shall be placed before the Consumer Forum for appropriate orders.

(4) After the expiry of the time given, the matter shall, irrespective of the fact as to whether the defects have been removed or not, be placed before the Consumer Forum for appropriate orders.

(5) If the objections raised by the Registrar are substantial and are not removed within the time allowed for the purpose, those days shall not be excluded for counting the period of limitation.

(6) As required by the second proviso to sub-section (3) of section 12, the admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint was received.

(7) In case any defect is pointed out by the Registrar, twenty-one days from the date on which such defect was removed shall be reckoned for the purpose of sub-regulation (5).

(8) All pending complaints, appeals and revision petitions which have not come up for admission till the date of commencement of these regulations and are pending for admission for more than 21 days shall be listed immediately by the Consumer Forum for admission and

not later than 21 days from the date of commencement of these regulations.

10. Issue of notice.-

(1) 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.

(2) When there is a question of raising presumption of service, 30 days notice shall be required.

(3) Whenever notices are sought to be effected by a courier service, it shall be ascertained that the courier is of repute.

(4) While appointing the courier for the purpose of effecting service, security deposit may also be taken.

(5) 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).

(6) 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.

11. Adjournment.-

(1) Every proceeding before a Consumer Forum shall be conducted as

expeditiously as possible and as per the requirements of the Act.

(2) The Consumer Forum shall record the reasons for any adjournment made by it.

(3) 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.

(4). The complainant, appellant or petitioner, as the case may be, may also be burdened with cost unless sufficient cause is shown for seeking adjournment:
Provided that 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.

(5) 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.

(6) If any adjournment is granted without awarding cost, the order sheet shall mention the reasons thereof.

(7) 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.

(8) 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.

12. Hearing by Benches.-Where a Bench, constituted by the President of the State Commission or the National Commission as provided under section 16 or section 20, as the case may be, does not have a member with judicial background and any complex question of law arises and there is no precedent to decide the law point, the Bench so constituted may refer the matter to the President of the State Commission or the National Commission as the case may be to constitute another Bench of which the President shall be a member.

13. Arguments.-

(1) Arguments should be as brief as possible and to the point at issue.

(2) Where a party is represented by a counsel, it shall be mandatory to file a brief of written arguments two days before the matter is fixed for arguments.

(3) In case of default to file briefs, the cost shall be imposed at the same rates as laid down for grant of adjournments.

14. Limitation.-

(1) Subject to the provisions of sections 15, 19 and 24A, the period of

limitation in the following matters shall be as follows:-

(i) Revision Petition shall be filed within 90 days from the date of the order or the date of receipt of the order as the case may be;

(ii) 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;

(iii) An application for review under sub-section (2) of section 22 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;

(iv) 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.

(2) Subject to the provisions of the Act, 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.

15. Review.-

(1 ) It shall set out clearly the grounds for review.

(2) Unless otherwise ordered by the National Commission, an application for review shall be disposed of by circulation without oral arguments, as far as practicable between the same members who had delivered the order sought to be reviewed.

16. Appearance of Voluntary Consumer Organisations.-

(1) Recognised Consumer Organisations have a right of audience before the Consumer Forum

(2) An authorisation of a Voluntary Consumer Organisation 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.

(3) The Power of Attorney holder shall be entitled to engage a counsel, if authorised to do so.

(4) A Voluntary Consumer Organisation can engage a counsel or an advocate of its choice or it can itself represent through one of its office bearers as per the rules governing it.

(5) In case of a complaint where the Voluntary Consumer Organisation 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 Organisation may continue to proceed with the complaint even if the complainant wishes to withdraw the same.

(6) A Consumer Forum has to guard itself from touts and busybodies in the garb of power of attorney holders or authorised agents in the proceedings before it.

(7) While a Consumer Forum may permit an authorised agent to appear before it, but authorised agent shall not be one who has used this as a profession:
Provided that this sub-regulation shall not apply in case of advocates.

(8) An authorised agent may be debarred from appearing before a Consumer Forum if he is found guilty of misconduct or any other malpractice at any time.

17. Ex-parte interim order.-

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.

18. Final order.-

(1) An order on the top right hand comer shall show as to when the

complaint was filed and the date of the order.

(2) The cause title of the order shall contain the names of all the parties with their addresses.

(3) 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 be mentioned and parties thereafter may not be mentioned as complainant or opposite party No.1 or opposite party No.2, etc.

(4) The cause title shall also clearly show if the appellant or respondent was the complainant or opposite party.

(5) 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.

(6) 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.

(7) The Consumer Forum shall pass final order invariably within fifteen days of the conclusion of the arguments.

19. Return on institution and disposal of cases.-

(1) A Consumer Forum is expected to dispose of at least 75 to 100 matters every month.

(2) A periodic monthly return of institution and disposal of cases shall be sent by the District Forums to the State Commission.

(3) The State Commission shall submit a periodic monthly return of institution and disposal of cases to the National Commission.

(4) Notwithstanding anything contained in this regulation, the President of the National Commission may, at any time, call for any return or information relating to its functioning from a State Commission or District Forums.

20. Preservation of records. -

( 1 ) In the case of complaint, the record containing main files

with original order sheet shall be preserved for a period five years.

(2) In the case of records of first appeal and revision petitions, it shall be preserved for three years from the date of disposal of the appeal or revision as the case may be.

(3) Immediately after the consumer complaint, first appeal or revision petition, as the case may be, is disposed of, extra sets shall be given to the parties who may use the same for filing of appeal or revision petition and in that case the necessity to summon the record from

the forums below can be dispensed with.

(4) The Registrar shall inform the parties while forwarding the certified copy of the final order, where they do not appear in person at the time of finally disposing of the matter to arrange to collect the extra sets.

(5) A period of at least one month shall be given for the purpose of collection of records by the party and in case of default the ex1ra sets shall be weeded out.

21. Certified copy.-

(l) A copy of the order is to be given to the parties free of cost as

required under the Act and the rules made thereunder.

(2) In case a party requires an extra copy, it shall be issued to him duly certified by the Registry on a payment of Rs.20/- irrespective of number of pages.

(3) A certified copy of an order shall clearly specify the date when free copy was issued, date of application, date when the copy was made ready and the date when it was so delivered to him.

(4) A fee of Rs.20/- shall be paid for obtaining another certified copy.

(5) Any party desiring to get a certified copy of any document on the file of the Consumer Forum, may get the same on payment of certification fee of twenty rupees per copy.

Provided that if any such document of which certified copy is sought, is over and above 5 pages, an extra amount of one rupee per page shall be charged over and above the fee of twenty rupees.

(6) Certified copy of any miscellaneous order passed by the Consumer Forum shall be supplied on payment of Rs.5 per copy.

22. Inspection of records.- Parties or their agents can inspect the records of any matter by filing an application on payment often rupees as fee.

23. Filing of criminal complaint.- Wherever a complaint is required to be filed by the Consumer Forum under sub-section (5) of section 13, the Consumer Forum may authorise its Registrar to file the complaint.

24. Practice Directions.- 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.

25. Parcsha Yad-dast.- 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.

26. Miscellaneous.-

(1) In all proceedings before the Consumer Forum, endeavour shall be

made by the parties and their counsel to avoid the use of provisions of Code of Civil Procedure, 1908 (5 of 1908):
Provided that the provisions of the Code of Civil Procedure, 1908 may be applied which have been referred to in the Act or in the rules made thereunder.

(2) Every State Commission and every District Forum shall take steps for its

computerisation and networking.

(3) 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.

(4) The Consumer Forum shall not insist upon the parties to engage advocates.

(5) The Fees collected for inspection of the documents and supply of certified copiezs 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.

(6) 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.

[ F.No.A-105/NCDRC/2005 ]



( B.V. SHARMA )
Joint Registrar