PGP-FW-06/08 (A-2)

TABLE OF CONTENTS SR. NO. 1. 1.1 1.2 1.3 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. PARTICULARS Prefatory Items Our Team Acknowledgement Table of Contents Introduction Consumerism: conceptual consideration Rights & Responsibilities Definitions Objective of Consumer Protection Act Scope of the Act Consumer Protection Council Deficiency FAQs Amendments Cases Articles Conclusion Bibliography PAGE NO. 2-4 2 3 4 5 7 10 13 16 17 18 24 37 48 49 55 57

INTRODUCTION
The Consumer Protection Act, 1986 was enacted to provide for better protection of the interests of the consumers the consumers of goods and services as defined under the Act. The Act is a milestone in the history of socio-economic legislationto meet the long felt necessity of protecting the common man from such wrongs for which the remedy under the common law for various reasons has become illusory. The legislation, no doubt, has the unique distinction of being the only one in the country made exclusively for the consumers to protect their interests against defective goods and deficient services, even though a plethora of existing legislations do have provisions to deal with consumer rights in different degrees on specified matters. The Act envisages a better legal framework within which an ordinary consumer can fight for his rights and get his grievances redressed. It provides for speedy and inexpensive settlement of disputes within limited time-frame, as against civil suits which are costly and time-consuming. The provisions of the Act are in addition to and in derogation of any other law for the time being in force and are compensatory in nature.

The Act provides for the establishment of Consumer Protection Councils at the Central, State and District levels to promote and protect the rights of the consumers and a three-tier quasi-judicial machinery at the district, state and national levels for the settlement of consumer disputes. The composition of these authorities and their territorial and pecuniary jurisdictions, the procedure to be followed by them in disposing of the complaints and the relief that can be granted are specifically laid down under the Act. In the light of the experience gained during the initial years of its enforcement by the consumer courts, the Act has been marginally amended in 1991 and substantially in 1993 and 2002, with a view to make it more effective in bringing justice to the doorsteps of the consumers.

The consumer movement in India is as old as trade and commerce. In Kautilya's Arthashastra, there are references to the concept of consumer protection against exploitation by the trade and industry, short weigh and measures, adulteration and punishment for these

offences. However, there was no organised and systematic movement actually safeguarding the interests of the consumers. Prior to independence, the main laws under which the consumer interests were considered were the Indian Penal Code, Agricultural Production, Grading and Marketing Act, 1937, Drugs and Cosmetics Act, 1940. Even though different parts of India exhibited different levels of awareness, in general, the level of awareness was pretty low. An average Indian consumer is noted for his patience and tolerance. Perhaps because of these two traditional traits and due to the influence of the Mahabharata, the Ramayana and the Bhagavad Gita, he considered the receipt of defective goods and services as an act of fate or unfavorable planetary position in his horoscope. When a new television or refrigerator purchased by him turns out to be defective from day one, he takes it reticently, blaming it on his fate or as the consequence of the wrongs committed by him in his previous birth. Very often he is exploited, put to avoidable inconveniences and suffers financial loss. It is rather paradoxical that the customer is advertised as the "king" by the seller and service provider; but in actual practice treated as a slave or servant. Goods are purchased by him along with the label "Items once sold by us will never be received back under any circumstances whatsoever." This unethical, illegal and unilateral declaration has to be viewed in the light of the practice in developed countries where the seller declares, "In case you are not fully satisfied with our product, you can bring the same to us within a month for either replacement or return of your money." This will clearly indicate the level of consumer consciousness. However, things are changing - slowly but steadily - and the momentum has increased considerably since the establishment of consumer courts and due to the efforts of a number of consumer organisations and the media. The next millennium will witness a high degree of consumer awareness and the concepts of "comparative costs", "consumer preference/ resistance/ abstinence" and "consumer choice" will become vital aspects of the economy.

CONSUMERISM: CONCEPTUAL CONSIDERATION

In the good olden days the principle of Caveat emptor, which meant buyer beware governed the relationship between seller and the buyer. In the era of open markets buyer and seller came face to face, seller exhibited his goods, and buyer thoroughly examined them and then purchased them. It was assumed that he would use all care and skill while entering into transaction.

The maxim relieved the seller of the obligation to make disclosure about the quality of the product. In addition, the personal relation between the buyer and seller was one of the major factors in their relations. But with the growth of trade and its globalization he rule no more holds true. It is now impossible for the buyer to examine the goods before hand and most of the transactions are concluded by correspondence. Further on account of complex structure of the modern goods, it is only the producer/seller who can assure the quality of goods. With manufacturing activity becoming more organized, the producers/sellers are becoming more strong and organised whereas the buyers are still weak and unorganized. In the age of revolutionized information technology and with the emergence of e-commerce related innovations he consumers are further deprived to a great extent. As a result buyer is being misled, duped and deceived day in and day out.

Mahatma Gandhi, the father of nation, attached great importance to what he described as the poor consumer, who according to him should be the principal beneficiary of the consumer movement. A Consumer is the most important visitor on our premises. He is not dependent on us we are on him. He is not an interruption to our work; he is the purpose of it. We are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by giving an opportunity to serve him.

Inspite of these views consumerism is still in its infancy in our country, thanks to the sellers market and the government monopoly in most services. Consumer awareness is low due to the apathy and lack of education among the masses. No one has told them about their

rights- to be informed about product quality, price, protection against unsafe products, access to variety of goods at competitive prices, consumer education etc. What consumerism lacks here are education and information resources, testing facilities, competent leadership, price control mechanism, and adequate quasi-judicial machinery. The providers of goods and services have been reluctant to give due consideration to consumer interest protection.

In present situation, consumer protection, though as old as consumer exploitation, has assumed greater importance and relevance. Consumerism is a recent and universal phenomenon. It is a social movement. Consumerism is all about protection of the interests of the consumers. According to McMillan dictionary Consumerism is concerned with protecting consumers from all organistations with which there is exchanged relationship. It encompasses the set of activities of government, business, independent organizations and concerned consumers that are designed to protect the rights of consumers. The Chambers Dictionary (1993) defines Consumerism as the protection of the interests of the buyers of goods and services against defective or dangerous goods etc. Consumerism is a movement or policies aimed at regulating the products or services, methods or standards of manufacturers, sellers and advertisers in the interest of buyers, such regulation may be institutional, statutory or embodied in a voluntary code occupied by a particular industry or it may result more indirectly from the influence of consumers organizations.

As commonly understood consumerism refers to wide range of activities of government, business and independent organizations designed to protect rights of the consumers. Consumerism is a process through which the consumers seek redress, restitution and remedy for their dissatisfaction and frustration with the help of their all organized or unorganized efforts and activities. It is, in-fact a social movement seeking to protect rights of consumers in relation to the producers of goods and providers of services. In-fact consumerism today is an all- pervasive term meaning nothing more than peoples search for getting better value for their money. Consumer is the focal point of any business. Consumers satisfaction will benefit not only business but government and society as well. So consumerism should not be considered as consumers war against business. It is a collective consciousness on the part of consumers, business, government and civil society to enhance

consumers satisfaction and social welfare which will in turn benefit all of them and finally make the society a better place to live in . There are various components of consumerism. First and foremost is self-protection by consumers. Consumer must be aware of his rights, raise voice against exploitation and seek redressal of his grievances. Consumers consciousness determines the effectiveness of consumerism. It is the duty of the consumer to identity this rights and to protect them. Voluntary Consumer Organisations engaged in organizing consumers and encouraging them to safeguard their interests in another important element of consumer movement. The success of consumerism lies in the realisation of the business that there is no substitute for voluntary self-regulations. Little attention from the business will not only serve consumers interest but will also benefit them. Some business in India have come together to adopt a code of conduct for regulating their own activities. Regulation of business through legislation is one of the important means of protecting the consumers. Consumerism has over the time developed into a sound force designed to aid and protect the consumer by exerting legal, moral and economic pressure pn producers and providers in some of he developed countries.

RIGHTS & RESPONSIBILITIES

Right of Consumer
Over the years consumer rights have become more comprehensive, and are recognized by consumer organizations around the world, Consumer Protection Act, 1986. also recognizes these rights. Section 6 of the act focuses on upholding these rights:

The Right to Basic Needs: ascertains basic goods and services, which guarantee survival. It includes adequate food, clothing, shelter, health care, education and sanitation.

The Right to Safety: assures protection against products, production processes and services, which are hazardous to health or life. It includes concern for consumers' long-term interests as well as their immediate requirements.

The Right to be informed: means being given the facts needed to make an informed choice or decision. Consumers must be provided with adequate information enabling them to act wisely and responsibly. They must also be protected from misleading or inaccurate publicity material, whether included in advertising, labeling, packaging or by other means.

The Right to be heard: means the right to advocate consumers' interests with a view to their receiving full and sympathetic consideration in the formulation and execution of economic and other policies. It includes the right of representation in governmental and other policy-making bodies, as well as in the development of products and services before they are produced or set up.

The Right to Choose: enables access to a variety of products and services at competitive prices and, in the case of monopolies, to have an assurance of satisfactory quality and service at a fair price.

The Right to Seek Redressal: meaning a fair settlement of just claims. It includes the right to receive compensation for misrepresentation, for shoddy goods or unsatisfactory services and the availability of acceptable forms of legal aid or redress for small claims where necessary.

The Right to Consumer Education: to acquire the knowledge and skills to be an informed consumer throughout life. The right to consumer education incorporates the right to the knowledge and skills needed for taking action to influence factors, which affect consumer decision.

The Right to a Healthy Environment: as in the right to a physical environment that will enhance the quality of life. It includes protection against environmental dangers over which the individual has no control. It acknowledges the need to protect and improve the environment for present and future generations.

Consumer responsibilities
The consumer is also enjoined to uphold his/her responsibilities: Critical awareness: The responsibility to be more alert, and questioning about the price and quality of goods and services we use. Action: The responsibility to assert ourselves, and act to ensure that we get a fair deal. As long as we remain passive consumers, we will continue to be exploited. Social concern: The responsibility to be aware of the impact of our consumption on other citizens, especially disadvantaged or powerless groups whether in the local, national or international community. Environmental awareness: The responsibility to understand the environmental consequences of our consumption. We should recognize our individual and social responsibility to conserve natural resources and protect the earth for future generations. Solidarity: The responsibility to organize, and come together as consumers to develop the strength to influence, promote and protect our own interests.

Important Definitions
Goods: "Goods" means goods as defined in the Sale of Goods Act, 1930 (section 2(7) of Sale of Goods Act, 1930).According to the Sale of Goods Act, 1930. "goods" means every kind of movable property other than actionable claims and money, and includes stock and shares, growing crops, grass, and this attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. Service [Section 2(1)(0)]: "Service" means service of nay description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, boarding 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; Restrictive Trade Practice [Section 2(1)(nn)]: "Restrictive trade practice" as per clause (nn) means any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as a condition precedent for buying, hiring or availing of other goods or services; Defect [Section 2(1)(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 or under any contract, express or implied, or as is claimed by the trader in any manner whatsoever in relation to any goods. Deficiency [Section 2(1)(g)]: Parallel to "Defect" in case of goods, deficiency is relevant in case of services. Accordingly, it is defined to mean any fault, imperfection, shortcoming or inadequacy 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. Unfair Trade Practice [ Section 2(1)(r)]: "Unfair trade practice" the detailed definition is given in the Consumer Protection Act, 1986 as amended by the Consumer Protection

(Amendment) Act. 1993. It is defined to mean 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 :(a) False or misleading representation, (b) Bargain sale, (c) Offering of gifts, prize, etc. and considering contents or lottery, (d) Non compliance of product safety standard, (e) Hoarding or destruction of goods. The Act may be consulted before filing a complaint for unfair trade practice.

Complainant [ Section 2(1)(b)]: means any of the following and having made a complaint i. ii. A consumer: or Any voluntary consumer association registered under the Companies Act, 1956 or under any other law for the time being in force: or iii. iv. The central government or any State government: or One or more consumers, where there are numerous consumers having the same interest: or v. In case of death of a consumer: his legal heir or representative.

Complaint [ Section 2(1)(c)]: means any allegation in writing made by a complaint that i. An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider; ii. Goods bought by him or agreed to be bought by him suffer from one or more defects ;

iii.

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 the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price

v.

Goods which will be hazardous to life and safety when used are being offered for sale 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; with a view to obtaining any relief provided by or under this act.

Consumer Dispute [Section 2(1)(c)]: means a dispute where a person against whom a complaint has been made denies or disputes the allegations contained in the complaint.

OBJECTIVE OF THE CONSUMERS PROTECTION ACT, 1986

According to the preamble , the act is to provide for the better protection of the interest of consumers an for that purpose to make provisions of the establishment of consumers councils and others authorities for the settlement of consumers interest herewith . The basic rights of the consumers that are sought to be promoted and protected are;

1. The right to be protected against marketing of goods and services which arte hazardous to life and property. 2. the right to be informed about the quality , quality , potency , purity , standard and price of the goods, or service as to protect the consumers against the unfair trade practices 3. The right to be assured, whenever possible, access to variety of goods and service at competitive price. 4. the right to be hearted an to be assured that consumers interest will receive sue consideration at appropriate forums 5. the right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumer ; and 6. The right to consumer education.

This is base on the basic right of consumers as defined by the international organization of consumers ( IOCU) via ., The right of safety , to information of choice, to be hearted, to redressed, to consumers education, to healthy, to healthy environment and to basic needs .

SCOPE OF THE ACT

The act extent to the whole of India expects the state of Jammu and Kashmir and applies to all goods a service unless otherwise notified by the central government. The act received the presidents accent on 24.12.1986. However, all provisions of the act expect those relating to establishment, composition, jurisdiction, etc. of the consumers dispute agencies (which came into force on 1.7.1987) came into force on 15.4.1987.

The right under the act to seek relief before the forum would not be deprived to any aggrieved consumers only by reason of the date of accrual of cause of action being prior to the date of coming into force of chapter III . So long as the cause of action was not barred under the general laws of limitation as on the date of institution of the consumer dispute any redressed agency, it would be tenable under the act.

Consumer protection council

The interests of the consumers are sought to be promoted and protected under the Act inter alias by establishment of consumers protection councils at the central and state levels. chapter II so the consumer protection Act ,1986 comprising section 4 to section 6 deals with consumers protection councils. Central consumers protection council Section 4 empowers the central government to establish a council to be known s the central consumer protection council consisting of Minster in charge of consumers affairs In the central government , as its chairman , and such number of other officials or non official members representing such its chairman , and such number of other officials or non officials member representing such interest as may be prescribed . However, the

Consumers Protection Rules 1987 restrict the number of members of the councils to 150 members Section 5 of the Act requires the central councils shall meet as a when necessary. But at least once in every year. The procedure in this regards to transaction of its business at the meeting is given in Rule 4 of the Rules. State consumers protection council Section 7 provides for the establishment (by notification) to be known as consumers protection council for (name of the state). the state council shall consist of a Minster in charge of consumers affairs in the state government as its chairman and such number of other officials or non officials members representing such interest as may be prescribed by the state government . The state councils shall meet as and when necessary but not less than two meeting shall be held every year. The procedure to be observed in regards to the transaction of its business at such meeting shall be prescribed by the state government.

District Consumer protection Council Section 8-A provides for the establishment (by notification) for every district a council to be known as district consumer protection council consisting of a collector of the district who will be the chairman and number of other officials and non officials members representing such interests. The district council shall meet as and when necessary but not less than two meetings in a year as prescribed by state government. The objects of the district council shall be to promote and protect within the district the rights of the consumers laid down in clauses (a) to (f) of section 6. Redressal Machinery under the ACT; The Act provides for a three tier quasi judicial redressal machinery at the district, state and national level to redressal of consumers dispute and grievances. The district from has jurisdiction to entertain complaint where the value of goods / services complained against and the compensation. If the claimed. is less than Rs 20 lakhs , the state commission for claims exceeding Rs 20 lakhs but not exceeding Rs 1 crores and the national commission for the claims exceeding Rs 1 crores. (National commission also have the jurisdiction to entertain appeals against the orders of any state commission {section 21} ) Broad review of CPA would show that its provisions may be classified into two broad categories.

Substantive provisions Procedural provisions

Substantive provisions The important provisions, such as, consumer, defect, deficiency, restrictive trade practice, service and unfair trade practice cover substantive part of CPA. Procedural provisions The provisions of CPA other than above substantive provisions are procedural provisions. Jurisdiction of Consumer Forums The provisions regarding jurisdiction of various Consumer Dispute Redressal Forums and their jurisdiction may be summarized as follows. (a)

District Forum Pecuniary jurisdiction Section 11(1) of CPA deals with pecuniary jurisdiction. It provides that the District Forum has the jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs. The complaint involving claims exceeding rupees twenty lakhs cannot be entertained by the District Forum. The pecuniary jurisdiction depends upon the amount of relief claimed and not upon the value of the subject-matter, nor upon the relief allowed by the Forum.

Territorial jurisdiction Section 11(2) deals with territorial jurisdiction of the District Forum. It provides that 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 at the time of institution of the complaint actually and voluntarily resides, carries on business, has a branch office or personally works for gain. (b) Where there are more than one opposite parties, any of the opposite parties at the time of institution of the complaint actually and voluntarily resides, carries on business, 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 place where the cause of action, wholly or in part, arises (section 11). (b) State Commission

Original jurisdiction Under section 17(a)(I) of CPA, the State Commission can entertain complaints where the value of the goods or services and compensation, if any, claimed exceed twenty lakes of rupees but does not exceed rupees 1 crore the matter can be heard by the state commission.

Appellate jurisdiction Under section 17(a) (ii) of CPA, the State Commission has jurisdiction to entertain appeals against the order of any District Forum within the State. According to section 15 of CPA, 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 order. However, 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 filing it within that period.

Revisional jurisdiction Under clause (b) of section 17 of CPA, the State Commission has jurisdiction to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State, where it appears to the State Commission that such District Forum has exercised jurisdiction not vested in it by law, or has acted in exercise of its jurisdiction illegally or with material irregularity.

(c) National Commission

Original jurisdiction Under section 21(a) (I) of CPA, the National Commission can entertain complaints where the value of the goods or services and compensation, if any, claimed, exceeds hundred lakhs of rupees. The pecuniary jurisdiction depends upon the amount of relief claimed and not upon the value of the subject-matter.

Appellate jurisdiction Section 21(a) (ii) of CPA provides that the National Commission shall have jurisdiction to entertain appeals against the order of any State Commission. According to section 19, an appeal can lie to the National Commission only against the order made by the State Commission in exercise of its power under its original jurisdiction. The appeal may be preferred within a period of thirty days from the date of the order of the State Commission. However, 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. The appeal should be decided as far as possible, within ninety days from the date of hearing.

Revisional jurisdiction The jurisdiction of the National Commission in revision has been laid down in section 21(b) of CPA. This is limited to consumer disputes wherein a State Commission

has exercised a jurisdiction not vested in it by law, or has failed to exercise jurisdiction so vested, or Has acted in the exercise of its jurisdiction illegally or with material irregularity.

The National Commission can exercise its power in revisions only under these situations. Appeal to Supreme Court Under Section 23, 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 to 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 period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. 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 50% of that amount or Rs. 50,000/- whichever is less.

DEFICIENCY IN VARIOUS KINDS OF SERVICES

Deficiency basically is concerned with the loop holes in a particular kind of service or in any form or another. A review of the case laws shows how the consumer forums have decided whether or not there was deficiency in the services rendered by airlines, banks, couriers, electric companies, housing, etc. A summary of the decisions may be reviewed as follows. Airlines In respect of following matters, consumer forums have held that services of airlines were deficient.

Delay in processing refund of unused tickets Not informing passenger about flight delay Physical injury disabling the passenger Injury to waiting passenger in the Airport Inferior quality of in-flight food

In case of failure to issue boarding cards due to late check-in, however, it was held that there was no deficiency.

Banking Services In following respects, it was held that there was deficiency in banks services.

Making payment notwithstanding stop-payment instructions Making unauthorised debit to customers account Loss of valuables from lockers Not crediting deposited cheque Bankers mistake in transferring complainants money to wrong branch Freezing the operation of the bank account on telephonic instruction of government

On the other hand, in respect of the following matters, it was held that there was no deficiency in banks services

Denial of credit facility Banks refusal to enhance the sanctioned limits Banks failure to provide finance to small-scale industry Banks refusal to extend loan repayment

Courier Service In respect of the following matters, complaints were allowed by reason of deficiency in services of Courier Company.

Non-delivery by stipulated time Loss of documents sent by courier

Electricity Supply of electric energy is included in the definition of "service" under section 2(1) (o) of CPA. Therefore, a person who uses electrical energy by paying its price is a consumer who can invoke jurisdiction of Consumer Forums. However, disputes relating to rates of tariff for power consumption are not within jurisdiction of consumer forums. In the following respects, consumer forums have held that services of electricity Supply Company were deficient.

Disconnecting power supply before the dates specified for payment of inflated bills at short notice entitles the complainant to a larger compensation than that awarded by the State Commission..

Arbitrary disconnection of electric supply without notice amounts to deficiency in service..

Following acts of the electricity company have been held to result in deficiency in service. (a) Excess billing due to defective meters. (b) Not preparing and serving bills according to billing cycle resulting in heavy arrears. (c) Raising bill for arrears without details regarding the period to which arrears relate. (d) Serving bill on Sunday and demanding payment within three days under threat of disconnection.

Housing Construction Service In respect of Deficiency in housing construction and building activity, consumer forums have held that services were deficient in the following matters.

Housing Board not providing roads, schools, parks, etc. as promised under the housing scheme.

Delay of Housing Board in completing installation of light and handing over possession of flat to the allottee who has paid full price of the flat.

Housing Board using sub-standard material in construction of flats resulting in leaking roof, cracking wall or sub-standard flooring.

Delay in giving possession at the agreed time so (which also makes the builder liable for giving possession as also interest and cost).

Failure of the Housing Board to give possession of the plot allotted to complainant and its arbitrary cancellation without notice.

Failure to provide amenities mentioned in brochure, such as, health club, swimming pool, playground, jogging trail, mini golf club, etc. alongwith plot for the farm house.

Failure of builder in commencing construction within three years when according to the agreement between the builder and complainant, flats were to be completed within three years, there was deficiency.

Insurance Life Insurance At the outset, it may be noted that a nominee being a person appointed by policy holder to whom the policy money is to be paid in the event of policy holders death, is a beneficiary who avails of services with approval of the policy holder who hired such services for consideration. Therefore, the nominee is a consumer. In following respects, the Consumer Forums have held that services of LIC were deficient.

Arbitrary repudiation without communicating reasons and without due application of mind.

Repudiation of claim without inquiry.

General Insurance In case of general insurance, consumer forums have held that services of the insurance company were deficient in following respects.

Failure of the insurance company to indemnify the insured for the loss caused by fire despite the undertaking of the insurance company is deficiency in service.

Delay in making payment of claim under insurance policy is deficiency. In cases of such deficiency, interest @ 13.5% may be allowed to the claimant. Further, compensation for financial loss and mental stress may also be allowed in such cases.

Silent promise and explicit condition of insurance contract is that insured claim must be settled with utmost expedition, either by way of acceptance or repudiation, say, within a reasonable time frame of about three months.

Any delay beyond such reasonable period would constitute deficiency in service unless the same is cogently explained by the insurance company.

Delay in settlement of insurance claim due to negligence and delay of the surveyor amounts to deficiency in service of the insurance company.

Delaying settlement of the claim for long time despite the report submitted by its own appointed surveyors amounts to deficiency in service.

Repudiation of claim without inquiry.

In the following respects, however, consumer forums have held that there was no deficiency in the service of the general insurance company.

Mere repudiation of claim does not amount to deficiency. Repudiation of claim after proper investigation. Suppression of material facts.

L.P.G. Gas Cylinder Rechecking of gas cylinder is mandatory under the statutory regulations for supply of cooking gas cylinder. In one case, gas cylinder was supplied without rechecking the same at the time of delivery. When the cylinder was connected to stove, it burst. Upon the complainant seeking compensation, it was held that there was clear deficiency in service due to failure to recheck the cylinder. Medical Services In recent years, hospitals, doctors and surgeons have been facing the complaints of medical negligence. Some of the grievances for which complaints have been made to consumer forums are as follows.

Doctor creating a misleading impression as gynaec specialist.

Not providing bed after charging for the same. Negligence of juniors of the doctor leading to damage to the patient could make the doctors liable.

Loss of vision due to negligence of eye surgeon.

However, in respect of complaints made for following matters, it was held that there was no deficiency

Failure of hospital to admit patient in I.C.U. Loss of voice after heart surgery. Death of patient due to a cause other than the problem for which he was operated.

Loss of sense after delivery of child by a woman having history of miscarriages.

Motor Vehicle In respect of the following grievances, consumer forums have held that services of the manufacturer or supplier were deficient.

Delay in delivery of car. Fixing wrong number plate on vehicle. Deficiency in repairs and servicing of vehicle.

Postal Service In respect of the following grievances, consumer forums have held that postal services were deficient.

Delay in delivery of telegraphic M.O. Misdelivery of money order to a different person. Misdelivery of envelop back to sender.

Omission to post the article entrusted to postal clerk for franking and despatch.

Delay in payment of NSC. Non-intimation by Post Office about return of registered letter due to wrong address.

Delay in delivery of telegraphs.

Railways In respect of the following grievances, consumer forums have held that railway services were deficient.

Where railway reservation is given to a passenger by an alternative train for the day on which the train does not run, there is deficiency in service.

Refusal by Railways to give air-conditioned second class birth after confirmation of reservation is deficiency in service.

Failure of Railway administration to prevent entry of unauthorised persons in reserved compartment is negligence and therefore deficiency in service.

Allotting birth to VIPs by superseding persons on waiting list is deficiency. When reservation of seats made by the complainant is erroneously given to others, same indicates gross negligence of railway booking and reservation staff. Railway must bear vicarious responsibility for such negligence.

Out of turn allotment of seat to VIP. Failure to mention name in reservation chart. Recovering excess fare from passenger.

In the following cases, however, consumer forums have held that there was no deficiency.

Cancellation of trains to ensure safety - no deficiency. Delay in departure of special train.

Telephone Service

In the following respects, consumer forums have held that services of the telephone company were deficient.

Overbilling of telephone is deficiency in service particularly when the bill is only for local calls and is four to five times the average bill without proper explanation.

Disconnection of telephone on the ground of non-payment of bill without intimation to subscriber constitutes deficiency in service. Disconnection of telephone, telex without notice would be arbitrary, unreasonable and violative of the principles of natural justice.

Disconnection of telephone for non-payment of the bill which was proved inflated.

University and Education

Two important propositions considered by consumer forums in respect of university and education are whether education is covered by the definition of "service" and whether a student can be regarded a "consumer". There is a divergence of views on both these as is evident from the following.

Education is service

Even though education is not expressly mentioned in the definition of service, when the same is imparted for consideration, there is no logical reason to exclude the same from the definition of service which is wide and inclusive definition.

Educational services by schools cannot be considered as "personal services" and therefore, fall within the definition of "service" under section 2(1)(o) of CPA.

Education is not service

While conducting public examinations, evaluating answer books, announcing exam results and re-checking of marks on application for revaluation, University or the Board does not perform any service for hire as contemplated by CPA.

Definition of "service" in CPA makes it clear that the relationship of teacher and student of an educational institution is not a service on hire because student is not a consumer. The very concept of "contract" cannot be forced into CPA so far as education, teacher and students are concerned. Hence, education does not come within the scope of CPA.

Student is consumer

Student is essentially a consumer of services of an educational institution. Therefore, college cannot refuse to refund fees collected by it when the college did not allow the student to avail of college education.

Student is not consumer

A candidate who appears for examination cannot be regarded as a person had hired or availed of services of university or Board for consideration.

In the following respects, consumer forums have held that educational services were deficient.

Allotment of same roll number to complainant and some other student. Ten years delay in issuing degree certificate.

Service This term is very widely and inclusively defined in section 2(1)of CPA as follows.

"Service" means service of any description which is made available to potential users and includes provision of facilities in connection with banking, financing, insurance, transport, processing, 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.

What is "service? Service of any description is covered under CPA and includes services such as banking, financing, insurance, transport, processing, housing construction, supply of electrical energy, entertainment, amusement, board or lodging etc. The categories of the service specified in the definition, however, appear to be illustrative since the mentioned of specified categories of services follow, the word "includes" in the above definition. What is intended to be excluded from the definition of "service" is specified in respect of two services.

Service free of charge Service under a contract of personal service

The following services are, however, not specified in the abovementioned definition of "service"

Advocates Airlines Chartered Accountants Couriers Chit Fund Education

Gas Cylinder/L.P.G. Medical services Postal services, Railways, Shares & Debentures Telephones Miscellaneous Lift maintenance Marriage Hall renting Maintenance of provident fund account Registration department Travel Agency Granting certified copy of document Purchase of lottery tickets Carrier Grant of subsidy by Central Government to industrial units Municipal services

Are services of Medical Practitioners Covered By CPA? In the landmark judgment of the Supreme Court in Indian Medical Association V P Shantha (AIR 1996 SC 550), the Supreme Court has examined various offshoots of the abovementioned question. The Supreme Court examined, in particular, the connotation of "service" as defined in section 2(1)(o) of CPA and "deficiency" in terms of section 2(1)(g) of CPA. On the basis of exhaustive discussion, the Supreme Court came to following conclusions:

Services rendered by medical practitioners are covered by the expression "service" as defined in section 2(1) (o). [Since there is no employer-employee relationship between a doctor and patient, services of medical practitioners do not fall in the exclusionary part of section 2(1)(o).]

Services of doctors and hospitals which are rendered free of any charge to every person do not fall within ambit of "service" as defined in section 2(1)(o).

Mere fact that the doctor receives salary from the hospital administration or by a charge on the consolidated fund would not change the conclusion that the services are rendered free of charge.

Services rendered by doctors and hospitals who render free service to poor patients and charge fees to others would nevertheless fall within the ambit of "service" as defined in section 2(1)(o), irrespective of the fact that a part of the service is rendered free of charge.

The fact that insurance company bears the charges of medical treatment under medicare policy or that the employer bears such charges as a part of conditions of service does not mean that the services are rendered free of charge.

Medical practitioners rendering service to patients by way of consultation, diagnosis and treatment, both medicinal and surgical, fall within the ambit of service as defined in section 2(1))(o) except where the doctor renders the service free of charge to every patient or under a contract of personal service.

The expression contract of personal service in section 2(1)(o) includes the employment of a medical officer for the purpose of rendering medical service to the employer. Thus, the service rendered by a medical officer to his employer would be outside the purview of service as defined in section 2(1)(o).

In view of the definition of "deficiency" in section 2(1)(g), medical practitioners are not excluded from the ambit of CPA.

Members of the Consumer Disputes Redressal Agencies are in a position to deal with issues which may arise before them in proceedings arising out of complaints about the deficiency in service rendered by medical practitioners.

Procedure of adjudication by Consumers Forums are not unsuitable to decide complaint against medical practitioners.

Penalties 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 thousand rupees but which may extend to ten thousand rupees, or with both.

2002 AMENDMENTS - AT A GLANCE

1) Creation of Benches of National commission and State Commission as well as holding of these commissions; 2) Period within which the complaints are to be admitted, notices are to be issued to opposite party and the complaints are to be decided, prescribed; similar provisions also made in respect of appeals; 3) No adjournment to be ordinarily allowed without speaking order giving reasons; 4) Pecuniary limits of jurisdictions of the consumer disputes redressal agencies enhanced so that the District Forum are able to deal with complaints involving value of goods or services and claims compensations up to Rs. 20 Lakhs (against Rs 5 lakhs at present), fixing the pecuniary limit of jurisdiction of state commission from Rs 20 lakhs up to Rs 1 crore (as against above Rs 5 lakhs up to Rs 20 lakhs at present) 5) Provision made for depositing, either fifty per cent. Of the amount of compensations or fine for the amounts mentioned below whichever are less, before admission of appeal, namely:(a) Rs 25,000 in case of appeal to a State Commission from the District Forum; (b) Rs 35,000 in case of appeal to the National Commission from State Commission; and (c) Rs 50,000 in case of appeal to the Supreme Court from the National Commission (6) Services availed for commercial purposes from the purview of the consumer disputes redressal agencies, excluded; (7) Provisions of the Act extended to services providers indulging in unfair or restrictive trade practices or offering services which are hazardous; (8) Sale of spurious goods or services brought within the meaning of unfair trade practices; (9) Express conferment of the powers of Judicial Magistrate of the first class on the consumer disputes redressal agencies with a view of trying offences under the Act;

CASES & JUDGEMENTS UNDER CPA

1. Kodaikkanal Township and others placed an order with a distributor of Maruti cars, in accordance with the rate contract entered into between the distributor and the company. The distributor agreed to deliver the vehicle within 3 to 5 weeks from the time of payment of full amount. The delivery was affected after about 8 months and at that time, an additional sum of about Rs. 41000 was demanded and was paid under protest by the Kodaikkanal Township. The additional amount was as a result of the increase in price which took place in the meanwhile. The complaint was filed with the district forum on the ground that it was not liable to pay the increased price on account of delay in the supply of the vehicle which was to be delivered at the price in accordance with the rate contract entered into. Further he claimed that on account of delay, he had to get his old vehicle repaired for use and on which he spent Rs. 21000. Therefore, he claimed about Rs. 62000. The claim was resisted by both the distributor and the manufacturer of the vehicle. Their contention was that the delivery mentioned in the invoice was only approximate and tentative and the time was not the essence of the contract. The terms of the contract clearly stipulated that the price of the vehicle was to be the one prevailing on the date of delivery. The district forum passed an order giving direction to the distributors and the manufactures to refund jointly or severally of Rs. 41000, the excess amount deposited under protest by the compliant. It however dismissed his other claims. The distributors and the manufacture of Maruti car proffered an appeal against the order of the District Forum. But the state Commission dismissed the appeal. There upon, they went in for a revision appeal before the National Commission. The National Commission, with out going into the merits of the case, expressed their opinion that his compliant was not maintainable under the Act. If it all, it could be covered under s.2(1)(c)(iv)of the Act but the price of Maruti Car was not fixed by or under any law. Even the standard of Weight and Measures Rule did not apply in this case. The rate contract between DGS and D and the manufacture was a contractual and not a statuary price. The National Commission opined that even if the leader had charged excess price, the compliant is not maintainable under the Act. Therefore, the national Commission accepted both the revision petition of the dealer and the manufacturer of Maruti cars.

[Maruti Udyog Ltd. vs. Kodaikkanal Township and others (1993)1 Comp L J 217 (NCDRC)]

2.

An Institute purchased five computer machines from a company and entered into a

maintenance contract under which, all repairs and replacements of the hardware were the responsibility of the company supplying computers. After some time, the computers stopped working. The Institute approached the suppliers for the repairs. The company estimated the cost of repairs at about Rs. 56000, which the institute was asked to bear. The companys contention was that computers got damaged due to sudden high voltage spike and this was an act of god and hence they were not liable. The state commission came to a conclusion after examining all evidence and the averments of the parties that 1. the cause of damage to the machines was sudden and high voltage spike; 2. certain parts of the machine damaged were covered by the contract of maintenance and therefore liable to be repaired and replaced by the computer-supplier; 3. The computer supplier did not give instructions to the complainant about installing devices to prevent damage due to high voltage spikes. The commission ordered the computer supplier to make the machines operational as there was negligence on his part as he failed to caution the complainant about the damages to the machines in the absence of installation devices, and he was bound by the contract of maintenance. [Pragati computers (p) ltd. VS. Madras Institute of Development Studies]

3. A vehicle was purchased by the complainant from an authorized dealer developed trouble which continued despite being repaired during the warranty period. The State Commission held that even where goods were purchased for commercial purpose, if there is a warranty for its maintenance the purchaser becomes a consumer in respect of the service rendered or to be rendered by the manufacturer of the supplier during the warranty period. Joseph Mathew Thomas and Co. V Maruti Udyog Ltd. 92005) III CPJ 657 (Kerala Scdrc)

4. The deposit of a cheque made by the complainant, an account holder with the appellant bank, was returned dishonored on the ground that "payment was stopped by the drawer". His request to the bank for return of the cheque was not heeded by the bank. He filed a complaint. The State Commission held that when disputes had arisen about the genuineness of the cheque and on the instructions of the police, which was making the investigation, the cheque had been retained by the bank, the failure to return such a cheque would not amount to a deficiency in service of the bank, which was only acting as a collecting agent. Canara Bank Vs Kalastine III (2005) CPJ 68 [Tamil Nadu - SCDRC] 5. The complainant deposited certain amount with a society. As the deposited amount was not returned, a complaint was filed by him before the District Forum, which held the president and treasurer, as liable to restitute the amount to the complainant. The State Commission held that though the treasurer and the president of the society had convassed for the deposit of the amount with the society, it would not mean that they were the recipients of the deposit. There was no agreement between the complainant and the appellant-treasurer for the refund of the amount by the latter. The registered society, with which the deposit was made, was alone liable to refund the amount and it had also not been impleaded in the complaint. Therefore the appellant in the capacity of the treasurer of the society could not be held personally liable for the refund of the amount so deposited. Prajakta Karkare Vs Vithal Madhavrao Kaslilar III (2005) CPJ 148 [Chattisgarh SCDRC] 6. Finance Company and its subsidiary duped investors by disappearing with their contributions. On their complaints, properties of the finance company were sold in auction and the proceedings were kept in bank for distribution to investing public. As only much after the filing of the complaint by the investors, TRO approved the State Commission for release of funds from the bank towards the tax arrears of the subsidiary; the commission dismissed the department's claim as the first priority is hapless consumers in country. TRO Vs Himachal Gramin Sanchayatta Ltd. 146 Taxman 6 SCDRC HP

7. Teacher had complained to the Consumer Forum that her salary had not been credited to her account. The State Forum held that this is a matter to be raised before the Appropriate Forum which is State Administrative Tribunal and the Teacher's complaint did not constitute a Consumer dispute. FAO, Basic Education V. Madhuri Srivastav (2005) CPJ UP SC DRC.

8. The bank had adjusted an amount received by its client in the course of business transaction, towards its existing loan liability, without its concurrence. The client had given guarantee for a third party which was in force and there was an existing loan liability to it and therefore it exercised its right of lien in appropriating the amount towards the aforesaid loan liability. The bank's action was justified under section 171 of the Indian Contract Act,1872, and if the bank exercised its right, it could not be taken as deficiency in service under section 2(1)(g) of the Consumer Protection Act, 1986. Laser Arts Vs Samarth Sahakari Bank Ltd. II (2005) CPJ 246 (Maharashtra - SCDRC)

9. The respondent bank declined to honour the cheques owing to the inability to compare the signature of the appellant written in Sanskrit language with that appearing in the accountopening form. On the insistence of the bank officials the appellant signed the cheques in Hindi which also were not accepted. It was held by the State Forum that to deprive the consumer of his constitutional right of mentioning the amount in the cheque in Hindi amounts to gross deficiency in service and violation of Official Languages Act. Therefore, the appeal was allowed with compensation and costs. S.N. Panigrahi Vs Andhra Bank II (2005) CPJ 316 [Delhi-SCDRC)

10. The appellant was asked to pay compensation on account of mental agony and harassment the complainant-respondent suffered for disconnection of his mobile phone which cannot be denied on the ground that the consumer happened to be a chairman of a school it would not mean that he would be entitled to compensation for loss of business by way of disconnection of mobile telephone. The compensation allowed by District Forum was reduced in appeal.

Bhari Cellular Ltd. Vs Blue Bells Model School II (2005) CPJ 103 [Delhi-SCDRC]

11. Consumer complained to the District Forum regarding the delay in delivery of vehicles. Forum directed the dealer to refund the booking amount along with interest. The state forum held that the responsibility of the dealer is limited to collect and pass on the booking amount to the manufacturer and no liability can be fastened on the dealer. Sainik Automobiles vs. Maheshchand Gupta (2005) CPJ 88-UP SCD (RC).

12. Complainant was allotted a residential plot on payment of deposit but plot was not delivered by the respondent. District Forum dismissed the complaint treating it breach of contract between two parties which did not give rise to deficiency in service. However, the state forum held that respondent had undertaken to allot residential plots to needy persons under Urban Land Disposal Rules 1974 and the dispute is covered by the Act. Mohan Ram vs. Nagar Palika Churu 2005 CPJ84 Raj. SCDRC.

13. An agent opened accounts with the appellant finance company in the names of other persons and deposited the entire account. However, the company did not refund the amount. It was held that though the amount was deposited by the agent, the deposits were themselves in the name of other persons, who were the actual account holders. Payment could be made only on the demand by the account holders, during their lifetime. The agent was not the beneficiary; he could be treated only as an agent of the account holders. An agent is not a consumer. The Forum held that the payment could be made only to the account holders and not to be the complainant, as he was not a consumer. Complaint was dismissed. Maharashtra Group Finance Co. Ltd. Vs Sunil Kumar Agarwal 1 (2005) CPJ 35 [Dehradun-SCDRC]

14. The complainant insured 4 pigs with one insurance company and paid premium to the bank for being paid to the insurance company. The bank remitted the premium to another Company. That Company contended that since it did not insure the impugned pigs, it was not liable to pay any compensation. Insurance Company No.1 contended that since it had never received any premium amount from the complainant for any insurance cover, it owed no

liability to him. It was held that the mistake was solely of the bank in not remitting the amount of premium to company No.1, which had rightly repudiated the claim as it had not received the premium amount. The bank not only committed the deficiency in service but had also insisted that the complainant prefer the claim before company No.2, which was not the insurer. Durg Rajnandgaon Gramin Bank Vs Oriental Insurance Company Ltd. 1 (2005) CPJ 25 [Raipur-SCDRC]

ARTICLES
SC issues notice on Coca Cola plea
(23-02-07) Source: Economic Times NEW DELHI: The Supreme Court on Friday issued notice to one Sita Devi on an appeal by aerated drinks major Coca-Cola against a consumer court order awarding Rs 27,000 as compensation to her after she claimed to have found fungus in the company's cola drink. A bench comprising B N Agrawal and Justice P P Naolekar issued notice to Sita Devi asking her to respond to Hindustan Coca-Cola Beverages Ltd's petition challenging the National Consumer Disputes Redressal Commission (NCDRC) order. The company contended that the bottles sent for analysis were not manufactured or sold by it and did not contain the mandatory details like batch number, date of manufacture and maximum retail price usually printed on every bottle. Pointing out that the sample was not tested as per the procedure prescribed under the Prevention of Food Adulteration Act, Coca-Cola counsels E C Agarwala and Gopal Jain stated that the analysis report was flawed and could not be relied upon for the purpose of giving compensation. It also contended that the Consumer Protection Act had lacunae as it does not specify the laboratory in which a sample was to be tested, thus leading to inconsistencies in testing procedures. A sample should be analysed only by a specified and authenticated lab, it pleaded. Sita Devi had filed a case in a district forum against Coca-Cola and its Jaipur-based distributor Ajay Sales and suppliers seeking damages to the tune of Rs 50,130 for negligence and deficiency in service. But the consumer court awarded her a compensation of Rs 27,000 after the Central Public Health Laboratory in Jaipur held that the sample was adulterated and unfit for human consumption.

Bank fined Rs 10 lakh for harassing man over credit card dues

(23-02-07) Source: Times News Network

NEW DELHI: Showing little mercy for banks which take to insensitive and illegal tactics for recovery of credit card dues, the State Consumer Commission has slapped an exemplary fine of Rs 10 lakh on Standard Chartered Bank for harassing a Chittaranjan Park resident and raising an illegal bill for Rs 28,000.

Commission president Justice J D Kapoor also directed all other banks and financial institutions to refrain from such practices and directed SHOs of Delhi Police to register a criminal case against the chief executive officers (CEOs) of concerned banks and financial institutions if consumers complain about threats or abuse by their loan goons.

"If in future, we receive any such complaint, the CEO of the concerned bank or finance company shall face punishment as provided under Section 27 of the Consumer Protection Act, 1986, a minimum sentence of one month imprisonment or fine or both," thundered Justice Kapoor.

"We, through this order, direct all the banks or financial institutions who provide loans and credit cards, not to resort to methods which are illegal and have no legal back-up and not to use abusive and threatening languages on telephone and not to visit residence of a consumer for recovery of loan and not to use force or musclemen for repossessing vehicles," said Justice Kapoor.

Pulling up Standard Chartered Bank for harassing Vibhu Bhakru, a Delhi High Court advocate living in CR Park, for over an year by sending goons to his house and issuing threats on phones to the extent that he would be abducted if the dues were not paid, the commission said: "The conduct of the bank amounts to the grossest kind of deficiency in service, unfair trade practice and flagrant breach of terms of the contract," said Justice Kapoor.

CONCLUSION
Undoubtedly Consumer Protection Act is benevolent piece social legislation, which protects large number of consumers from exploitation. The people in this country are very much aware that consumer courts are helping the needy and delivering speedy justice to them. The consumer courts are less expensive. People have now started feeling that they are in a position to declare Sellers be aware, whereas earlier consumers were at the receiving end and were told Buyers beware

The issues relating to consumer welfare affects everyone since everyone is a consumer in one way or the other. Ensuring consumer welfare is the responsibility of the government. Accepting this, policies have been framed and the Consumer Protection Act, 1986, was introduced. A separate Department of Consumer Affairs was also created in the Central and State Governments to exclusively focus on ensuring the rights of consumers as enshrined in the Act. This Act has been regarded as the most progressive, comprehensive and unique piece of legislation. In the last international conference on consumer protection held in Malaysia in 1997, the Indian Consumer Protection Act was described as one "which has set in motion a revolution in the fields of consumer rights, the parallel of which has not been seen anywhere else in the world." The special feature of this Act is to provide speedy and inexpensive redressal to the grievance of the consumer and provide him relief of a specific nature and award compensation wherever appropriate. The aim of the Act is also to ensure the rights of the consumer, viz. the right of choice, safety, information, redressal, public hearing and consumer education.

The Act defines the consumer as one who purchases goods and services for his/her use. The user of such goods and service with the permission of the buyer is also a consumer. However, a person is not a consumer if he purchases goods and services for resale purpose. The most important feature of the Act is the provision for setting up three-tier quasi-judicial machinery popularly known as "consumer courts" at national, state and district levels. The apex court, National Commission functions in Delhi. Every State Government has a State

Commission. The third tier is in each district and is called district forum. As on January 1999, there are 543 district fora. All these courts have handled nearly 13 lakh cases of which about 10 lakhs cases have been disposed of. The disposal of 77 per cent of the cases is not a mean achievement. However, it should be noted that only 27 per cent of the total cases have been disposed of within the prescribed period of 90 days or 150 days (where testing is required). This fact really causes concern for the Government and the consumers in general. The National Commission has identified the reasons for the slow disposal and have come out with suggestions for amending the Act with a view to improving the disposal rate within the time limit prescribed in the Act. The Government has been contemplating a number of amendments to the Act and these amendments will be brought out in the next session of Parliament.

The growing interdependence of the world economy and international character of many business practices have contributed to the development of universal emphasis on consumer rights protection and promotion. Consumers, clients and customers world over, are demanding value for money in the form of quality goods and better services. Modern technological developments have no doubt made a great impact on the quality, availability and safety of goods and services. But the fact of life is that the consumers are still victims of immoral and exploitative practices. Exploitation of consumers assumes numerous forms such as adulteration of food, fake drugs, dubious hire purchase plans, high prices, poor quality, deficient services, deceptive advertisements, hazardous products, black marketing and many more. In addition, with revolution in information technology newer kinds of challenges are thrown on the consumer like cyber crimes, plastic money etc. which affect the consumer in even bigger way. Consumer is sovereign and Customer is the king are nothing more than myths in the present scenario particularly in the developing societies. However, it has been realized and rightly so that the consumer protection is a socio-economic programme to be persued by the government as well as the business as the satisfaction of the consumers is in the interest of both. In this context, the government, however, has a primary responsibility to protect the consumers interests and rights through appropriate policy measures, legal structure and administrative framework.

The efficient and effective programme of Consumer Protection is of special significance to all of us because we all are consumers. Even a manufacturer to provider of a service is a consumer of some other goods or services. If both the producers/providers and consumers realize the need for co-existence, adulterated products, fake goods and other deficiencies in services would become a thing of the past. The active involvement and participation from all quarters i.e. the central and state governments, the educational Institutions, the NGOs, the print and electronic media and the adoption and observance of a voluntary code of conduct by the trade and industry and the citizens charter by the service providers is necessary to see that the consumers get their due. The need of the hour is for total commitment to the consumer cause and social responsiveness to consumer needs. This should, however, proceed in a harmonious manner so that our society becomes a better place for all of us to live in.

Bibliography & Webliography

Mrs.Meena Shah Judge, Consumer Court Mr.Kamle Registrar, Consumer Dispute Redressal Forum, Mumbai Suburban Dist.

 The Consumer Protection Act, 1986 BARE ACT Consumer Protection in India, Reflections S.S.Singh & Sapna Chadhah Consumer Protection Act P.V.V. Satyanarayamurthy Consumer and the Market Sheetal Kapoor Environment and Consumer Pranab Banerji