Upload
duongnguyet
View
216
Download
0
Embed Size (px)
Citation preview
124
CHAPTER TV
CONSUMER PROTECTION: LEGISLATIVE MEASURES
In the olden days, before the industrial revolution,- the nature of society was
monolithic and the needs of the people were very small. Most of the people lived in
rural areas and the farmers produced a substantial portion of the goods needed by
them. Even for people living in cities, the needs were much limited. Business was
small and the manufacturers produced only those items which were greatly needed by
the society. As the economy became industrialised and the society pluralistic, the raw
materials changed their' character' under the complicated process of production and
improved technology. New products appeared and old products became more refined
and complex'.
The modern consumer has to depend on the businessman for every activity.
This dependency of the consumer is only one side of the coin; on the other side the
businessman has the responsibility to protect and satisfy the consumer, by offering
quality commodities in right quantity, and at reasonable prices. The importance of the
consumer in business has yet to be realised fully. In general, consumers are scattered
and disorganised. Individually they have very weak bargaining power. They are not
professional buyers. Besides, they have an additional handicap as majority of them are
illiterate, ignorant and they usually suffer from lack of information to make any
intelligent purchases.
1. S. Sankaran, Business and Society, Madras: Marghan Publication, 1987, p. 147.
125
India has been a seller's market where the manufacturer and the trader have
been able to sell anything produced. This has resulted in the vast body of consumers
being exploited both in terms of quality and quantity of goods. Sub-standard and
unsafe products are being pushed into the market. The consumer has neither the
technical know-how nor the necessary ability to judge the quality of products
purchased by him. Hence the Government has an important role to play in ensuring the
satisfaction of the consumer and safeguarding his interests.
The growth of advertising and large scale production and introduction of
pre-packaging and self-service have made efficient low-cost retailing possible.
However, the number of competing brands and the type of consumer goods render the
problem of choice more acute; and the highly complex and the technical composition
for many modern products makes it difficult for the consumers to be reliably informed
about their qualities and performance. Also high pressure advertising and sales
techniques may some times result in a divergence between the consumer's demand and
his real needs.
The consumer therefore, needs legal protection both against artificial price
fixing and undesirable pratices by monopolies and also against fraud and
mis-representation by a minority of less scrupulous traders and producers.
In this chapter an attempt has been made to highlight the legislative
measures passed by the Government to safeguard the interests of the consumers. The
Consumer Protection Act, 1986 and the Consumer Redressal Machinery established at
1 2 6
District, State and National levels have been discussed in the earlier part of this
chapter. The profile of seven selected sample consumer Disputes Redressal Forums
are also analysed.
Legislative Measures
The Government has been enacting from time to time, various laws for the
protection of the consumer. Legislation gives statutory protection to innocent and
ill-informed consumers against unfair trade practices. In the past, marketing legislation
was by and large, business-oriented and not consumer-oriented. Often the legislation
wanted to encourage competition and competitive market. Consumer benefit or
protection was incidental, The benefit went to the producer often. Since 1945, all
over the world, the consumer was hit heavily by inflation. The evils of inflation
compelled the Governments to offer direct consumer protection against unfair trade
practices. Hence there has been a series of consumer-oriented legislations.
The Government has enacted Consumer Acts to control buyer-seller
relations in the market place and to regulate protection, supply, quality, quantity, price,
distribution, terms of sale, trade practices and so on. All these Acts except Consumer
Protection Act 1986, are not preventive in nature but they prescribe fines and
punishments to the offenders. The Consumer Protection Act, 1986 (COPRA) is not
only preventive but also punitive in nature. The Act intends to provide simple, speedy
and inexpensive redressal to the grievances of the consumers. The Consumer
Protection Act, 1986 is thus a milestone in the history of socio-economic legislation in
127
the country. It is one of the most progressive and comprehensive pieces of legislation
enacted for the purpose of protecting the interest of consumers.
Consumer Protection Act, 1986: Distinctive Features
The Consumer Protection Act, 1986, is known in short as COPRA. Its
provisions are very comprehensive and they safeguard the economic rights of the
Consumers effectively. This Act is based on the principle of 'self-help' to protect
oneself against all kinds of exploitative and unfair dealings such as over-pricing,
defective goods and cheating The Act redefines the legal relations between
Consumers of goods and services and their sellers and manufacturers. The Act has two
important implications for the consumer such as the right to complain to an authority
and also claim compensation for any loss or injury suffered on account of the
negligence of the manufacturer The Act applies to all goods and services in both
private and public sectors except those rendered free of charge or under a personal
service contract.
The Indian Parliament enacted this legislation in December 1986. It came
into force on April 15, 1987 and all provisions came into operation in July 1987. The
Act provides for the establishment of Consumer Disputes Redressal Agencies at
District, State and National Levels for the protection and promotion of the interests of
consumers and to redress their grievances in a speedy, simple and inexpensive manner.
128
The redressal agencies are required to dispose of each complaint within 90
days. There are no legal formalities for filing the complaint, which can be addressed to
the concerned forum even through a post-card notifying the grievance and the names
and addresses of the complainant and respondent. There is no need to pay any court
fee for filing cases as in the civil court. It also provides for setting up Consumer
Protection Councils in the State and Centre to promote and protect the interests of the
consumers. The prominent features of the COPRA are discussed under the headings
noted below.
I. Conceptual Clarification
II. Consumer Protection Councils
III. Consumer Disputes Redressal Agencies
IV. Allied Acts.
I. Conceptual Clarification
The Consumer Protection Act, 1986, defines the following concept:
(a) Consumer means any person, who
(i) buys 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
1 2 9
ii) hires any services for consideration which has been paid or promised or
partly paid and partly promised or under any system of deferred payment and includes
any beneficiary of such services other than the person who hires 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 first
mentioned person.2
Thus the definition of 'Consumer' as per the Act, 1986 clarifies who a
consumer is. He may be the
i) buyer of any goods for a full or partly paid consideration or of deferred
payment.
ii) User of such goods other than the person who actually buys the goods
and such use is made with the approval of the purchaser.
iii) Hirer of any service for a full or partly paid consideration or of deferred
payment.
iv) Beneficiary of such services from the original hirer.
However the following persons are not considered consumers.
i) A person who buys goods for any commercial or resale purpose or
without any consideration.
2. "Consumer Protection", Government of India, Ministry of Civil Supplies, New Delhi, 1995, p.2.
1 3 0
ii) A person who receives services without any consideration.
Thus, any person who buys goods or services on payment of money for a
consideration is a consumer, but a person who purchases goods for resale or for any
commercial purpose is not a consumer. In other words, if the goods purchased are used
for a large-scale business activity intended to earn profit, the purchaser is not a
consumer. If he uses the goods for personal purpose or exclusively for the purpose of
earning his livelihood by means of self-employment, he will be a consumer. To quote
an example, a person who buys a typewriter or a car and uses it for his personal use is
certainly a consumer. But a person who buys a typewriter to take up job-work and
earn money or a car to ply it as a taxi and earn profit can be said to be using the
typewriter or the car for commercial purpose. If the buyer uses the goods by himself,
that is, by means of self-employment, for earning his livelihood, it would not be treated
as a commercial purpose and he does not cease to be a consumer for the purpose of the
Act.
Judicial Decisions on the Concept of'Consumers'
The following are a few cases of judicial decision taken by the consumer
forums at different levels.
1. Education: Students are not Consumers
The Madras High Court ruled that Education and educational institutions
would not come under the purview of the COPRA. The students were not consumers
as contemplated under COPRA. Imparting education and holding examinations were
131
outside the scope of the act3. Similarly the teacher, did not come under the purview of
the COPRA for the simple reason that there was no tangible method of assessing a
teacher's sincerity or efficiency in the job, apart from the statistical procedure of
measuring attendance and syllabus coverage. Moreover, the teachers were answerable
to the head of the institution.
2. Municipal Corporation: Assessee of Municipal Tax is not a Consumer
An assessee for municipal tax is not a consumer because he has not hired the
services of the municipal corporation for any consideration (payment). Only a person
who has hired or availed of a service for a consideration is a consumer. House tax
levied by the municipal corporation is not a consideration for any service. The levy is
in the nature of a tax and is not dependent upon providing civil amenities to the
house-owners or occupiers of a house.
Any complaint about the levy and collection of such tax does not make the
assessee a consumer as defined under COPRA. Therefore a complaint against the
quantum of tax assessed or the fixation of the value of the house for the purpose of tax,
is not entertainable by the Forums under COPRA. The assessee therefore can prefer an
appeal before the Assessment Tribunal for settlement of any such grievance.
3. Indian Express (Madurai), dated 20th December, 1994, p. 7.
132
The valuation of a flat at South Calcutta belonging to Apurbakumar Babu
had been reassessed at Rs. 6750 by the municipal authorities, as against the previous
year's Rs.5616. He filed a compliant before the Calcutta District Consumer Dispute'.
Redressal Forum for getting the annual valuation reduced. The forum dismissed the
case based on the ruling of the National Commission, because the complainant could
not be regarded as a consumer and the Forum had no jurisdiction to entertain a
complaint against the assessment of value by the Calcutta Municipal Corporation4.
3. Civil Supplies: Ration Card holder is not a Consumer
The complainant was a ration card holder who was entitled to buy rations
from the Fair Price Shop. But he was not supplied wheat by the Fair Price Shop dealer
in time. His complaint was dismissed because he was not a consumer as against the
civil Supplies Authorities5.
4. Medical Service: Patient is a Consumer
A patient is a "Consumer" within the meaning of the term in COPRA. He is
therefore entitled to approach consumers Forum and get compensation for any loss or
injury suffered by him because of the negligence of the doctor.
4 M a n Express (Madurai), dated 13th March 1996, p.2.
5. Civil Supplies Officer Vs Santhosh Kumar, Consumer Protection Judgements. Vol.1, April, 1995, p.472.
Bolam alleged that the treatment for back pain was not conducted properly
in Friern Private Hospital, Calcutta. Hence he filed a complaint against the hospital in
the Calcutta District Forum.
The Forum entertained the complaint and the case was decided in favour of
the patient. The Forum ordered the Hospital to pay a compensation of Rs. 10,000 to
the patient."
5. Shares and Debentures: Share Applicant is not « Consumer
As per the supreme court ruling, a prospective investor in shares is not a
consumer, In order to satisfy the requirements of the definition of consumer' under
Consumer Protection Act, there must be a transaction of buying of goods or hiring of
services for some consideration.
Shares do not exist till the allotment takes place. Therefore at the stage of
application, there exists no goods for making a purchase. The applicant is only a
prospective investor on future goods. The applicant cannot complain against any
unfair trade practice, as the company is not trading in shares.
Gujarat State Commission dismissed a batch of 30 complaints filed by a
voluntary organisation on behalf of the consumers who had applied for shares of State
Bank of India. They were entitled to allotment of shares on the basis of criteria
6. Indian Express (Madurai), dated 4th June, 1997, p. 7.
134
published in newspapers. They prayed that the bank be directed to allot a minimum
number of shares to each applicant under the scheme of firm allotment or pay
compensation of Rs.8500 to each. The cases were dismissed based on the supreme
court ruling, that the persons who had applied for shares were not consumers' as
defined in COPRA.7
(b) Commercial Purpose
Commercial purpose is a purpose in which it is aimed to make profit by
using the goods or services.
The following are some of the important cases on which judicial decisions
have already been made.
1. Agricultural Service: Purpose meant for Agriculture is not Commercial
Complainant had purchased Sunflower Hy-brid mega 363 seeds from a
supplier. It was alleged that the seeds did not germinate despite the fact that the same
were sown in accordance with the instructions given in the brochure given by the
supplier. It was alleged that the poor result was due to the supply of inferior,
substandard and defective quality of seeds. The National Commission held that the
complainant did not purchase the seeds for commercial purpose, hence he was a
consumer8.
7- Indian Express (Madurai), dated 28th February, 1996, p.7.
8. Laxmi Agriculture Seed Stores Vs Dhoop Singh, Consumer Protection Judgements, Vol.1, February 1995, p.45.
135
2. Charitable Institution: Charitable Activities are notCommercial
Charitable activities undertaken by a public charitable trust without any
profit motive, are not commercial activities. So any purchase of goods made by the
trust for the purpose of carrying its activities is not commercial.
Jaipur Rural Health and Development Trust provides medical facilities,
vocational training, self-employment schemes to the people, both rural and urban. It
bought two Tatamobile Vans from the local dealer which were subsequently found
defective. The Trust therefore prayed for replacement of the defective vehicles or for
the refund of their cost along with interest at 21 percent per annum. The supplier
raised a preliminary objection that the Trust was not a consumer and the vehicles were
purchased for commercial purpose. The State Commission of Rajasthan negatived the
contention and stated that the trust was a "consumer" within the meaning of the term in
the COPRA. As a result, the trust was entitled for the replacement of the defective
vehicles.9
(c) Consumer Dispute
Consumer dispute means a dispute where the person against whom a
complaint has been made, denies or disputes the allegations contained in the
complaint.10
9- Indian Express (Madurai), dated 12th February, 1997, p.7.
10. M. Arulselvam and A.L. Namasivayam, fmidelines Commentary on Consumer. Brotection Act. 1986, Chennai: Malathi Publications, 1993, p. 15.
" " " Urn 1 ' '
1 3 6
The consumer dispute would arise when there is a complaint by a consumer
making allegations against the trader of goods or lender of services, who denies or
disputes the said allegation.
The cases relating to consumer disputes in which legal decisions have
already been taken are given below:
1. Automobiles: Delay in Payment of interest is not a Consumer Dispute
The grievance of the complainant was delay in payment of interest on
advance made by him for the purchase of a car. The National Commission laid down
that such grievance could not constitute the subject matter of adjudication under
COPRA. Here the contract was for sale of goods. There was no arrangement of
rendering services for consideration between the parties and no deficiency in service.
For remedy the complainant should approach the civil court."
2. Chit Funds: Dispute against the Management of Chit Business
Section 64 of the Chit Fund Act, 1982, provides that any dispute touching
the management of chit business shall be referred to the Registrar for Arbitration by
any one of the parties to the dispute. Disputes touching the management of a chit
business includes a claim by or against a foreman for any debt or demand due to him
from a subscriber.
11. Premier Automobile Limited Vs Hiralal Jairam, Consumer Protection Judgements, Vol.111, November 1995, p.438.
13 7
A complainant was a subscriber to a chit conducted by another party. The
chit amount was Rs.5000 and the duration was 40 months and subscription was Rs, 125
per month. He paid subscription for 28 months when the party suddenly stopped the
monthly auction. He filed a complaint in the District Forum and the Forum directed
the party to pay the amount, holding that there was deficiency in service. The State
Commission dismissed the complaint, giving him liberty to refer the dispute to the
Registrar.12
3. Employees' Benefits and Funds: Consumer Forums can not Adjudicate Disputes Involving Scale of Pay
The grievance of the complainants was that they had been deprived of the
higher scale of pay. An employee receiving salary from consolidated fund of the State
is not a consumer. The relief claimed by the complainant involved setting aside a
Government order. If any higher scale of pay is to be given to any section of the
employees in modification of the statutory rules, this cannot be entertained by the
Consumer Forums.n
(d) Deficiency in Service
Deficiency means any fault, imperfection, short-coming or inadequecy in the
quality, nature and manner of performance which is required to be maintained under
12' Indian Express nVfaHnraiy dated 2nd April 1998, p. 7.
13. Sakhvir Singh Vs Superintending Engineer, Consumer Protection Judgements, Vol.1, February, 1995, p.250.
138
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.14
The definition of deficiency' reveals that the fault, imperfection,
shortcoming or inadequecy in service has to be ascertained on the basis of certain
norms related to quality, nature and manner of performance. The services rendered by
professionals like doctors cannot be adjudged on the basis of any fixed norms. Hence
in case any deficiency in service is established, a redressal agency can direct the party
to return the charges paid for the service or to pay such amount as may be awarded as
compensation to the consumer or to remove the defects or deficiency in the service.
The following are the cases related to deficiency in service:
1. Agricultural Services: Failure to Issue the Sale Certificate is Deficiency in Service
The complainant alleged that the tractor sold to him by parties was
defective. He also alleged that the sale certificate was not issued to him in time, thus
depriving him of the necessary permit. Hence the District Forum ordered that the
complainant was entitled to get interest at the rate of 12 per cent per annum on the
price paid by him for the relevant period, besides Rs. 1500/- on account of costs of the
proceedings.15
14' Indian Express (Madurai! dated 2nd January, 1996, p. 7.
15. Lakshman Vs Karnataka Agro Industries Corporation Ltd., Consumer,Prptection Jjidgements, August, Vol.11, 1995, p.369.
139
2. Banking Service: Rejection of Loan Application does not Constitute Deficiency
The complainant had applied for a loan of Rs. 1,05,000 as working capital.
After submission of all the required documents, the application was rejected due to the
uneconomic project proposal It was therefore not deficiency in service, and the
bankers could use their own discretion."'
3. Courier Service: Delivery of Goods without Goods Receipt is Deficiency in Service
The complainant had entrusted to a courier a consignment of 'Neel' used to
whiten clothes, worth Rs. 1,12,500, But the consignment was delivered by the courier
to a third party without goods receipt. Hence it was a deficiency in service and
compensation of actual loss was awarded to the complainant with interest at 15 per
cent per annum.17
4. Education: Student is Entitled to the Refund of Fee if the Course is not Commenced
The complainant had applied for a place in computer course and deposited
the requisite fee. The grievance was that the organisation did not start the course. It
was held that it was deficiency in service and the entrants to the course were entitled to
the refund of the amounts paid by them.1*
16, Manager, State Bank of India Vs Abraham, Consumer Protection Judgements, Vol.1, 1995, p.323.
17, Ultrachem Industries Vs Geetha Roadways, Consumer Protection Judgements, Vol.1, April, p.479.
18, M.K. Yuvaraj Vs V.B. Vishwanath Hiremath, Consumer Protection Judgements, Vol.1, February, 1995, p.291.
1 4 0
5. Telegram Service: Delay in Delivery is Deficiency in Service
The complainant was a lawyer and a social worker. In the ordinary course
of his work he used to send and receive telegrams. It was alleged that the telegrams
did not reach the destinations well in time. It was held that it was deficiency in service
and a compensation of Rs.25000/- was granted.1''
6. Transport: Delay in Running Superfast Train is Deficiency in Service
The complainant pleaded that the Express train in which he travelled was
delayed for long hours without any reason. Additional charges are collected by the
railway from the passengers travelling by superfast trains. In case, trains are delayed
for long hours and the delay has not been properly explained, that amounts to
deficiency in service and therefore the railway is bound to refund the excess charge.20
7. Medical Service: Hospitals Liable for Negligence of Freelance Doctors
If a doctor who is an employee of a hospital commits any act of negligence
resulting in loss or injury to a patient, the hospital is liable along with the doctor to
compensate the patient. If a doctor who is not in the payroll of a hospital but attached
to it as a freelance doctor using the facilities of the hospital, commits any act of
negligence resulting in loss or injury to a patient, he is not directly liable to be charged.
19. Sub-Post Master, Doda Vs Om Parkash Thakur, Consumer Protection Judgements. Vol.1, February 1995, p.291.
20. Chairman, Railway Board Vs S. Bharath, Consumer Protection Judgements, Vol.11, January 1995, p.407,
141
Mrs. Radha was admitted to B.K.M. Hospital, Kerala, on account of a
fracture sustained on her left leg above the ankle. Dr. Sekar examined her leg and
made on operation. But, even when the operation was over, she had some problems in
her leg for which she consulted another doctor and the X-ray showed that there was
some foreign substance left in the leg.
Mrs. Radha filed a complaint against the hopsital management in the Kerala
State Consumer Disputes Redressal Commission. The hopsital management said that it
was the negligence of Dr. Sekar who made the operation and held him liable. But the
State Commission came to the conclusion that the hospital was vicariously liable to pay
a compensation of Rs.2,00,000, though Dr. Sekar was attached to the hospital. There
was the evidence of fees collected by the hospital from Mrs. Radha, a patient. The fee
collected included, a fee of the surgeon, bed charge, nursing charge, service charge,
electricity charge, water charge and so on.21
(e) Defect
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 as is claimed by the trader in any manner whatsoever in
relation to any goods.22
The following are cases related to defect in goods purchased.
21. Indian Express (Madurai), dated 29th April, 1998, p.7.
22. Gurbax Singh, Law of Consumer Protection. Jaipur: Bharat Law Publication, 1992, p.25.
142
1. Books with Mistakes in Content .Amounts to Defective Goods
Defects in goods purchased by a consumer entitle him to approach the
Consumers Forum for relief Books are goods. So if there is any defect in printing,
binding and so on of a book, the purchaser can approach the consumer redressal
Forums for the replacement of the book or for refund of the price paid. The
complainant purchased an encyclopedia and found some mistakes in the book. He filed
a case in the State Consumer Disputes Redressal Commission. The judgement was in
favour of the consumer and the seller had to refund Rs.575 along with Rs. 100 towards
legal costs."
2. Defects in Goods Purchased
The complainant had purchased a car represented by the party as a
reconditioned one, However after the car was put to use it was not found worthy
despite several visits to the workshop for repairs. In fact it was found that it was a
vehicle involved in an accident. Therefore the party was directed by the Forum to
refund the amount, with Rs. 10000 as fine.24
F. Goods
Goods means all movable goods which are capable of being sold.
Immovable assets such as land and things attached to it like trees, crops and so on are
23. Indian Express (Madurai), dated 2nd July 1997, p.7.
24. Indian Express (Madurai), dated 9th July 1997, p.7.
143
not goods for the purpose of COPRA. When these trees and crops are cut and
served, they become goods.
A person who buys any goods for a consideration is a consumer. The
immovable properties are not goods, hence the purchase of immovable properties does
not come under COPRA/'
Loss in Transporting Goods
A person who entrusts a carrier with any goods for carnage is a consumer
and he is entitled to be compensated by the carrier in case of non-delivery or short
delivery of the goods at the destination.
Patel Roadways failed to deliver 257 generator sets to Birla Yamaha Ltd., in
time. Hence the company made an appeal against Patel Roadways. The case was
decided in favour of the complainant and a compensation of Rs.50,78,231, including
the cost was awarded.26
(g) Service
Service means service of any description which is made available to
potential users and includes the provision of facilities in connection with banking,
financing, insurance, transport, processing, supply of electrical or other energy, board
25 Indian Express^ (Madurai), dated 17th January, 1996, p.7. 26- I n d i a n Express (Madurai), dated 20th August, 1996, p.7.
1 4 4
or lodging or both, entertainment, amusement or the purveying of news of other
information but does not include the rendering of any service free of charge or under a
contract of personal service.17
A person who hires or avails of any service for a consideration is a
consumer. The definition of the term service has three parts such as explanatory,
inclusive and exclusive. The main part is explanatory in nature and defines service to
mean "Service of any description which is made available to the potential users."
The inclusive part expressly includes the provision of facilities in connection
with banking, financing, insurance, transport, processing, supply of electrical energy,
housing construction, entertainment, amusement or the purveying of news or other
information.
The exclusive part excludes "rendering of any service free of charge or
under a contract of personal service". The word "any1 and 'potential' in the definition
are significant.
The word 'any' has a diversity of meanings depending upon the context in
which it is used. It may be employed to indicate 'all' or every' as well as 'some' or
'one'. The context in which it is used in the definition of service indicates that it has
been used in its wider sense extending from one to all.
27. Gurbax Singh, op.cit. p.26.
145
The word 'potential' is also very wide. It indicates that service which is not
only extended to actual users but those who are capable of using it, are under the
definition.
The following are cases related to this concept.
1. Granting Passports by Authorities are not Service for Consideration
The grievance of the complainant was that for about 18 months his
application for a passport was not decided by the party. The State while issuing
passport is not providing any service for consideration. It is the policy of the
Government relating to matters of security, immigration and emigration. Hence it is
not a service within the meaning of COPRA.:s
2. Failure to Regulate Distribution of Water Supply Properly is Negligence of
Service
The grievance of the complainant was irregular supply of water. It is the
obligation of the welfare state to provide supply of water to the residents of a town,
city or village atleast one or two hours every day. Since the Water Board has not
taken any steps against the water problem, it was considered negligence of service.29
28. Ganapathy Vs Regional Passport Officer, Consumer Protection Judgements, Vol.1, April, 1995, p.346.
29. Cantonment Board, Nasirabad Vs Nemi Chand Sethi, gansumgr Protection Judgements. Vol.1, April 1995, p.427.
3. Medical Services: Negligence Leads to Death 146
The complainant's husband expired due to negligence on the part of the
hospital to diagnose the disease. It was held that service rendered by the hospital and
the members of medical profession for consideration constituted service as defined in
the Act,30
4. Rea! Estates: ReaS Estate Agents and Consumer Rights
Service rendered by the real estate agents and property brokers clearly falls
within the definition of service' under the COPRA'. A person who avails himself of
their service is a consumer and he can approach the consumer forum in case there is
any deficiency in the service. This was the clear stand taken by the National
Commission in a recent case.
A complainant had hired the services of a real estate agent and paid
Rs.90,000 as advance for the purchase of a flat. But the agent did not materialise it.
When a case was filed, he told the commission that the service rendered by him did not
fall within the definition of service'. The appeal was dismissed by the Commission,
because for this service the agent has got a commission of 2 per cent of the price at
which the property was sold.11
30. Anoop K. Kaushal, Universal'sPractical. GujdeijoConsumer Protection Law, Delhi:
Universal Book Traders, 1994, p. 159 31 ' Mian Express (Madurai), dated 20th September 1995, p. 7.
14 7
II. Consumer Protection Councils
Legally there are two councils such as
1. The Central Consumer Protection Council
2. The State Consumer Protection Council
Central Consumer Protection Council
The Central Government by notification has established with effect from
July 1987, a Council to be known as the Central Consumer Protection Council.'2 The
main object of this Council is to promote and protect the rights of the consumers. The
Council provides a platform for discussion of consumer problems and would advise the
concerned State and Central Governments on policies and programmes to safeguard
the consumers' interests. The Council consists of 150 official and non-official
members.
a) The minister in-charge of the Department of Civil Supplies is the
chairman of the Central Council.
b) The minister of State or deputy minister in the Department of Civil
Supplies is the vice-chairman of the Council.
32. M.S. Ramasamy, The Consumer Protection Act, 1986, Chennai: S. Sitaraman & Co., 1996, p. 10.
148
c) The Central Council consists of the minister of Food and Civil Supplies
or minister in charge of consumer affairs in States.
d) Eight members of Parliament, five from the Loksabha and three from the
Rajaya Sabha.
e) The Commissioner for Scheduled Castes and Scheduled Tribes.
f) Representatives of the Central Government Departments and
autonomous organisations concerned with consumer interests not exceeding twenty.
g) Representatives of consumers organisations or consumers not less than
thirty-five.
h) Representatives of women not less than ten.
i) Representatives of farmers, trade and industries not exceeding fifteen.
j) The Secretary in the Department of Civil Supplies.33
The term of the Council is three years. The meeting of the council is
presided over by the chairman. In the absence of the chairman, the vice-chairman
presides over the meeting. In the absence of the chairman and the vice chairman, the
central council elects a member to preside over the meeting of the Council. The
meeting of the Council is held only after giving proper notice.
33. Gurbax Singh, op.cit., pp. 195-196.
14 9
State Consumer Protection Council
State Governments may establish Consumer Protection Councils for the
respective states consisting of the minister in charge of consumer affairs in the State
Government as its chairperson and other official or non-official members representino
such interests as may be prescribed by the State Government. The State Council
should hold atleast two meetings every year. The object of every State Council is to
promote and protect the rights of consumers within the State.
III. Consumer Disputes Redressal Agencies
The Act seeks to provide simple and effective remedy to the grievances of
the consumers. For this purpose, the following consumer Dispute Redressal Agencies
have been established.
1. District Consumer Disputes Redressal Forum (DCDRF)
2. State Consumer Disputes Redressal Commission (SCDRC)
3. National Consumer Disputes Redrssal Commission (NCDRC)
1. District Consumer Disputes Redressal Forum
A District Consumer Disputes Redressal Forum is known as the District
Forum established by the State Government in each district of the state with the prior
approval of the Central Government. Generally the District Forum is located within the
district court buildings. However in some of the districts, it is situated in other building
for want of space in the district court buildings.
1 5 0
FIGURE 4.1
AUTHORITIES UNDER THE CONSUMER PROTECTION ACT jDiagrammatic Representation]
Redressal Machinery
Authority for Appeal Conditions
Appellate Authority for National Commission
Appellate and Revisional Authroity For State Commission
Appellate and Revisional Authority for District Forum
Original Jurisdiction above 20 lakhs.
Original Jurisdiction above 5 Lakh and upto 20 Lakhs
Original Jurisdiction upto 5 Lakhs.
151
The District Consumer Disputes Redressal Forum (DCDRF) consists of a
president and two members. The president is generally a District Judge or a person
who is qualified to be a District Judge. The other two members are chosen by a
committee consisting of the President of the State Commission, Secretary of the law
department and the Secretary of civil supplies and consumer protection, in the
respective states. The two members shall be persons of integrity and ability with
knowledge of economics, trade, public affairs and so on. Of the two members, one
shall be a woman member.34
The members can hold office for a period of five years or upto the age of 65
years whichever is earlier. They are not eligible for reappointment. They draw salary
and other allowances as prescribed by the State Government.
The District Forum entertains original jurisdiction only as it is at the bottom
of the consumer courts' hierarchy. It entertains complaint where the value of goods or
services and the compensation if any claimed is less than Rs.5 lakhs. It entertains
complaint in which the complainant or any one of the persons against whom a
complaint is made resides or carries his business in that district. The place where the
opposite party or parties reside or carry on business including branches or where the
cause of action arises also come under the jurisdiction of District Forum.
34. M. Arulselvam and A.L. Namasivayam, op.cit., p.37.
152
There is a rule that the District Forum should decide the complaint within 90
days from the date of notice received by the opposite party where the complaint does
not require analysis or testing of goods and within 150 days if it requires analysis or
testing of goods.
For the settlement of complaints, the order will be communicated to the
concerned parties free of charge. If the order is not executed, then the Forum has the
right to punish the person by imprisonment for a period not less than one month which
may extend upto three years or a fine with a minimum amount of Rs.2000 which may
extend upto Rs. 10000 or with both, The Forum has also the right to dismiss the
vexatious or frivolous complaints and fine the complainant a sum of Rs. 10000. This
penalty was included in 1993 by amending the Consumer Protection Act, 1986.
If any person is aggrieved by the order of a District Forum, he can appeal to
the State Consumer Disputes Redressal Commission within 30 days on receipt of the
order of the District Forum. An appeal will be entertained beyond this time limit only
when valid reason is given for the delay. Along with the appeal, a copy of the District
Forum's order has to be submitted and the reason for the appeal has to be stated.
Number of cases filed in and Disposed of in DCDRF in Tamil Nadu
Table 4.1 shows the details of cases filed and disposed in the District
Forums of Tamil Nadu. Initially the forums received minimum number of cases, but
the number of cases increased due to the awareness of consumers' rights andprotection.
In 1992, the cases filed increased rapidly, but in 1993 and after there was not much of
153
significant progress, because of the effective functioning of voluntary consumer
organisations and appointment of judicial staff after 1992.
The District Forum sends information to the other party soon after the cases
are filed. The cases are disposed of as early as possible. The number of cases disposed
of has increased from 1991 to 1995. The Forums had disposed of many cases as it can
be seen from the Table 4.1.
TABLE 4.1
Number of Cases Filed and Disposed of in DCDRF in Tamil Nadu
Sl.No.
1.
2.
3.
Particulars
Number of Cases filed
Number of Cases disposed of
Number of Cases settled within 90 days
1991
.3384
1884 (56)
N.A.
1992
7212
3882 (54)
1697 (24)
1993
8322
5318 (64)
1326 (16)
1994
6146
5249 (85)
1304 (21)
1995
5471
6591 (120)
1241 (23)
Source: Monthly Statement of the Report of the DCDRF.
N.A. -Not available.
Figures in brackets indicate the percentage to the total number of cases filed.
Though the Forums have to redress consumers' grievances within 90 days,
in practice, they are not able to do so due to the lack of trained and sufficient staff,
frequent absence of members of the Forum and irregular appointments of members and
Presidents of the Forums. It is evident from Table 4.1 that during 1992 only 24 per
155
cent of the cases had been settled within 90 days to the total number of cases filed,
while in 1995 23 per cent of the cases were settled within the prescribed period.
Details of Cases Disposed of in the DCDRF
The number of cases disposed of in favour of consumers had decreased from
54 per cent in 1992 to 46 per cent in 1995 (Table 4.2). This reveals that genuine
complainants are not forth-coming as it demands more awareness of legal implications.
This is supported by the fact that the cases decided against the consumers and cases
rejected on some technical ground had increased.
TABLE 4.2
Details of Cases Disposed of in DCDRF in Tamil Nadu
Sl.No.
1.
2.
3.
4.
Particulars
Number of Cases disposed of
Number of Cases disposed of in favour of the consumers
Number of Cases disposed of against the consumers
Number of Cases rejected on technical grounds
1991
1884
N.A.
N.A.
N.A.
1992
3882
2085 (54)
965 (25)
832 (21)
1993
5318
2813 (53)
1348 (25)
1157 (22)
1994
5249
2163 (41)
1432 (27)
1654 (32)
1995
6591
3045 (46)
2002 (30)
1544 (24)
Source: Monthly Statement of the Report of the DCDRF.
N.A. - Not available.
Figures in brackets indicate the percentage to the total number of cases disposed of.
157
Profile of Selected Sample District Consumer Disputes Redressal Forums
The Researcher has selected seven DCDRF as samples to study their profile.
The Redressal forum is a quasi-judicial body, functioning throughout the year It has
no summer vacation as enjoyed bv the civil and criminal courts The following are the
profile of sample DCDRF
Number of Staff Members in the Sample DCDRF
Table 4 3 shows the number of Stall" members working in the Consumer
forums. As per the present norms of the Government, each Consumer forum should
have one head clerk, one typist, one lower division clerk and two office assistants, but
initially it was operated only by two Staff members The number of Staff members has
been raised due to the heavy work-load Among the seven selected sample forums,
one forum was established in ll>('>5 and another forum has the maximum of 12 Staff
members due to the large number of cases filed in the forum.
158
TABLE 4.3
Functioning of Consumer Forums
The Consumer Forum functions with a president and two members,
appointed by the State Government (ieneraly the members are nominated from among
the people residing within the District The forum cannot function in the absence of the
President But it can function even if one member is present along with the President.
Membership is for five years The Consumer forums were established by the
Government of Tamil Nadu during I WO and the members resumed work during
Septemebr and October 1090 They retired in the same months of 1995, But the
Government has not appointed new members in the vacancies, in the case of 5 forums
out of the 7 sample selected forums, due to change of Government. Hence all the 5
forums did not function for more than one year (fable 4.4).
TABLE 4.4
Functioning of the Consumer Forums
59
Categorywise Classification of the Cases
Consumers Disputes Redressal Machinery entertains and redresses
grievances which come under COPRA Tabic 4 5 shows the details of cases filed in
different areas The cases relating to unfair trade practices were more during 1991 and
the rest of the four years the majority of the cases were related to finance and Chit
Funds followed by other categories Simlarly the least number of cases filed belonged
to educational and medical services This may be due to the fact that the medical
serivces were brought under COPRA only at the end of 1995. Though teachers and
students are not consumers, the deficiency of service of the eductional institutions can
be brought under the Act
160
161
Sources for Filing Cases
The Consumer can file cases directly or through various sources like
voluntary consumer organisations, eminent lawyers and others. The officials of the
sample Consumer Forums stated that consumers should come forward to file cases by
themselves, not through other agencies, in order to avoid unnecessary expenses.
Moreover, the consumers can file cases directly due to the fact that they need not
follow any formalities as in the Civil Court.
Table 4.6 shows that a majority of the Consumersfiled cases through
lawyers. The cases filed through direct source has increased from year to year due to
the awareness of the benefits During 1WI, about 33.08 per cent of the Consumers
filed cases through voluntary Consumer Organisations and thereafter the percentage of
cases filed through this sources has declined The main reason is that after 1991
majority of the cases were settled by the Organisations themselves.
TABLE 4.6
Source: File Board of the DCDRF
162
163
Time Required to send Notice
When complaints are given by consumers, the forum is expected to send
notice to the other party within a short span of time. Table 4.7 shows that a large
number of forums took more than 6 days to send notice of the complaint to the other
party. The prominent reasons specified by the officials of the forums include heavy
workload, insufficient and inefficient Staff members and the non-cooperation of staff
members of the forum.
TABLE 4.7
Time Required to send Notice from the Date of Filing Cases
Sl.No.
1.
2.
3.
4.
Days
Less than 2 days
2 - 4 days
4 - 6 days
Above 6 days
Total
Number of Sample forums
2
2
3
7
Percentage to Total
28.57
28.57
42.86
100.00
Time taken by the Forums to send Notice
There is no clear provision in COPRA for the time to be taken to send
notice to the other party. But as per COPRA the other party should give his reply
within 30 days of receiving the notice from the forum. The researcher has collected
information for 20 cases from each sample forum's record for the year 1995 to find out
the time actually taken to send notice to the other party. Table 4.8 shows that in
majority of the cases the time taken is between 8 to 16 days and only in a few cases the
forum has taken more than 16 days.
165
Settlement of Cases Within 90 days
As per COPRA, 1986, the forums have to settle the Consumers grievances
within 90 days from the date of notice received by the opposite party. It is clear that
about 71.43 per cent of the forums did not settle their cases within 90 days (Table 4.9).
According to the information furnished by the authorities working in the forums,
insufficient and untrained Staff member, heavy workload, lack of time and the lack of
cooperation among the Staff members were prominant reasons for their inability to
complete the cases within 90 days.
TABLE 4.9
Settlement of Cases within 90 days
Sl.No.
1.
2.
Settlement
Settled within 90 days
Not settled within 90 days
Total
Number of Sample forums
2
5
7
Percentage to Total
28.57
71.43
100.00
166
TABLE 4.10
Reasoos for Non-Settlement of Cases within 90 days
Sl.No.
1.
2.
3.
4.
5.
Reasons
Insufficient Staff Members
Lack of time
Lack of trained and experienced persons
lack of cooperation of the Staff Members
More Cases received
Number of Sample forums
3
4
1
3
4
Percentage (N = 7)
42.86
57.14
14.29
42.86
57.14
Base for Disposal of Cases
When consumers file cases in the forums, the cases have to be disposed of
on some basis. It is seen from Table 4.11 that original petition number (O.P. Number)
(57.14%), pressure from the petitioner (42.86%) and pressure from the other party
(42.86%) are the main basis for the disposal of the cases.
167
TABLE 4.11
Basis for Disposal of Cases
Sl.No.
1.
2.
3.
4.
5.
Basis for disposal
O.P. Number
Pressure from the lawyer
Pressure from the petitioner
Pressure from the other party
Nature of the case
Number of Sample forums
4
1
3
3
2
Percentage (N = 7)
57.14
14.29
42.86
42.86
28.57
Circumstances Leading to the Dismissal of Cases
Consumer forums reject frivolous or vexatious complaints. They also reject
cases on technical grounds. They consider cases which come under COPRA. As could
be seen from Table 4.12 a majority of the cases are dismissed due to the absence of the
petitioner or the absence of the other party, or due to settlement out of court or
irrelevance. Sometime ex-parte judgement is given in the case of continued absence of
one party.
168
TABLE 4.12
Circumstances Leading to the Dismissal of Cases
Sl.No.
1.
2.
3.
4.
Particulars
Absence of the petitioner
Absence of the opposite party
Endorsement made and settlement out of the forum
Irrelevant cases
Number of Sample forums
5
4
3
3
Percentage (N = 7)
71.43
57.14
42.86
42.86
Grant of Compensation
The aggrieved consumer gets award of compensation from the other party
through the Consumer forum. Normally the forum asks the other party to remit the
prescribed amount (based on decree) as compensation within the prescribed time. The
petitioner can get compensation from the party after producing the copy of the decree
awarded by the forum.
Period for the Execution of the Judgement
The award of compensation reaches the affected parties through the forum.
But they are not getting any signature from both the parties. As per COPRA, the other
party has to execute the judgement within 30 days. But in practice, it is not done.
Hence effective steps should be taken to execute the decree within the above period.
Table 4.13 shows that the execution period has exceeded 90 days in two sample
forums. It is worthwhile to note that the judgement has not been executed by any of
169
the sample forums within the prescribed time. This reveals the ineffectiveness in
implementation of the legal measures taken through COPRA, 1986.
TABLE 4.13
Period Taken for the Execution of Judgement
Sl.No.
1.
2.
3.
4.
Days
Less than 30 days
30 to 60 days
60 to 90 days
Above 90 days
Total
Number of Sample forums
-
2
3
2
7
Percentage to Total
-
28.57
42.86
28.57
100.00
Punishment for Non-execution of Judgement
In Consumer forums the execution of the judgement is very difficult than in
the Civil Court, because in the Civil Court, adequate powers for execution are there.
Table 4.14 shows the remedial measures for non-execution of judgements in consumer
forums. Five sample forums (71.43%) reported arrest and attachment of property, two
forums (28.57%) did not specify any particular process of punishment and the
remaining two forums (28.57%), reported arrest of persons under COPRA as remedial
measures for the non-execution of judgement.
170
TABLE 4.14
Remedial Measures for Non-execution of the Judgement
Sl.No.
1.
2.
3.
Remedy
Arrest and attachment of property
Arrest under COPRA
No specific procedure
Number of Sample forums
5
2
2
Percentage (N = 7)
71.43
28.57
28.57
Details of Cases Filed and Disposed
Out of 7 selected sample forums one was established after 1994. During
1991 a majority of the forums have received less than 250 complaints. During 1992,
1993 and 1994, a large majority of the forums received complaints between 250 and
above 750. But during 1995 a large number of forums received complaints below 500
because out of 7 selected forums, 5 forums did not operate for about one year due to
the non-appointment of members. Regarding the cases disposed of a majority of the
forums showed the disposals to be 250 and below 500 in all the five years. During
1991 and 1995 all the selected forums settled only less than 250 cases within 90 days
and the rest of the years the cases settled were between 250 and 750.
171
172
Suggestions to Improve the Functioning of Consumer Forums
The senior staff members of the sample forums were asked to give
suggestions to improve the functioning of the forums. The suggestions made by them
are shown in Table 4.16. The stated suggestions include the appointment of sufficient
Staff, more power to the forum to give interim injunction, steps to rectify consumer
organisations, not functioning properly and appointment of judicial staff without delay.
TABLE 4.16
Suggestions to improve the Functioning of the Consumer Forums
SI.No.
1.
2.
3.
4.
5.
6.
7.
Suggestions
Appointment of sufficient staff members
Regularising the staff members
Motivation for staff members
Powers for issuing interim injunction
Infrastructure facilities
Steps to rectify consumer organisations not functioning properly
Appointment of judicial staff members without delay
Number of Sample forums
5
3
4
6
2
5
5
Percentage (N = 7)
71.43
42.86
57 14
85.71
28.57
71.43
71.43
173
Profile of the Employees Working hi the Forums
The effective functioning of any organisation depends mostly on its
employees. If the employees posted in consumer forums are efficient and properly
motivated, the problems in disposing of cases can be minimised. It is therefore,
necessary to collect information about the employees background. Table 4.17 shows
the profiles of the employees working in the selected sample DCDRF. At the time of
study there were 41 employees working in the selected forums. All head clerks and
office assistants were males and there was however no male in the steno-cum-typist
category. In total a majority of the Staff members were males.
A majority of the head clerks, steno-cum-typists and bench clerks were
below 40 years of age. Similarly a large number of office assistants were above 40
years of age.
All office assistants of the forums had eighth standard qualification and a
greater number of head clerks and bench clerks were graduates and professionally
qualified. The monthly income of the employees varied from Rs.2000 to 6000, but no
one was getting less than Rs.2000 and only a few were drawing above Rs.6000.
Though the office assistants and head clerks had more experience in Civil Court work,
their experience in consumer forums appeared to be very limited.
174
All head clerks were deputationist. a few of other Staff members were
temporary and some were permanent. By and large a majority of them had come on
deputation and hence they did not show sufficient involvement.
A greater number of office assistants were not satisfied with the working
conditions because they had no scope for promotion. In total a majority of the
employees were not satisfied with their jobs.
175
TABLE 4.17
Problems of the Employees of the Forums
Employees complained of heavy work load (51.30),the temporary nature of
the jobs (29.27%) and no qualifying tests for promotion (31.71%) as the major
problems. Some pointed out the absence of motivation in work (7.32%), lack of scope
for promotion (14.63%) and lack of infrastructural facilities (7.32%) as their problems.
Table 4.18 gives the details.
TABLE 4.18
Problems of the Employees of the Forums
Sl.No.
1.
2.
3.
4.
5.
6.
Problems
Heavy work load
Temporary nature of job
Absence of motivation
Lack of scope for promotion
No qualifying test for promotion
Want of infrastructural facilities
Number of Employees
21
12
3
6
13
3
Percentage (N = 41)
51.30
29.27
7.32
14.63
31.71
7.32
Suggested Solutions
Out of the total, 58.54 per cent of the employees wanted their jobs to be
made permanent. Nearly one-third (31.7%) suggested regularisation. Other
suggestions were the introduction of infrastructural facilities (9.76%), Steamlining the
176
177
promotion procedure (31.71%) and appointment of sufficient staff members (41 46%)
in order to reduce the burden of work
TABLE 4.19
Remedies for the Problems of the Employees
Sl.No.
1.
2.
3.
4.
5.
Remedies
Making the jobs permanent
Regularising the appointment
Providing necessary infrastructural facilities
Steamlining the promotion procedure
Appointment of sufficient staff members
Number of Employees
24
13
4
13
17
Percentage (N = 41)
58.54
31.71
9.76
31.71
41.46
2. State Consumer Disputes Redressa! Commission
The State Consumer Disputes Redressal Commission (SCDRC) which is
known as State Commission, is situated in the State capital, ft also has three members
as in the District Forum. A person who is or has been a judge of a High Court is
appointed as the President of the State Commission. Two other members, of which
one shall be a woman of ability, integrity and standing and with eminence in the field of
economics, law, commerce, accountancy, industry, public administration, are appointed
by the State Government. The President of the State Commission, Law Secretary and
Consumer Protection Secretary act as a Committee to select the two members and
recommend to the State Government for appointment. The tenure of these members
are similar to that of members in the District Forum.
178
The commission entertains complaints where the value of goods or services
and compensation if any, claimed exceeds Rs.5 lakhs but does not exceed Rs.20 lakhs.
It entertains appellate jurisdiction against the orders of any District Forum within the
state. It can 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 if
such a District Forum had exercised a jurisdiction not vested in it by law or failed to
exercise its jurisdiction legally or exercised with material irregularity.
It follows the same procedures of the District Forum for disposal of
complaints. The time limit for disposal of cases is also the same. Appeal against the
order of the State Commission can be made to the National Commission by the
aggrieved person within 30 days of the receipt of order from the State Commission.
Details of the Cases Filed in the Tamil Nadu SCDRC
The SCDRC entertains original and appeal cases. The number of cases filed
through original petition had decreased from year to year, but the percentage of cases
disposed of showed an increasing trend. About 28 per cent of the cases were settled
within 90 days in 1992 while in 1995, 49 per cent of the cases were settled. (Table
4.20). The cases filed through appeal petition showed an increasing trend and the
majority of the cases were disposed of. Table 4.3 reveals that 46 per cent, 58 per cent,
32 per cent and 54 per cent of the cases were settled within 90 days out of the total
number of cases of appeal in 1992, 1993, 1994 and 1995 respectively. The Table also
shows that the cases of appeal were more than the cases filed through original petition.
179
TABLE 4.20
Number of Cases Filed and Disposed of in the Tamil Nadu SCDRC
Sl.No.
1.
2.
3.
1.
2.
3.
Particulars
Original Petition
Number of Cases filed
Number of Cases disposed of
Number of Cases decided within 90 days
Appeals
Number of Cases on appeal to the SCDRC
Number of Cases disposed of by the SCDRC
Number of Cases decided within 90 days
1991
289
154 (53)
N.A,
241
145 (60)
N.A.
1992
593
358 (60)
166 (28)
658
408 (62)
300 (46)
1993
470
381
(81)
234 (50)
689
673 (98)
402 (58)
1994
298
341 (114)
248 (83)
973
430 (44)
316 (32)
1995
230
160 (67)
117 (49)
1552
1244 (80)
841 (54)
Sources: Monthly Statement of Report of the SCDRC, Madras.
N.A. - Not Available.
Figure in brackets indicate percentages to the total number of cases filed and appealed.
182
Details of Cases Disposed of in the SCDRC
In the five years, only in 1992 and 1995, the judgements of the majority of
the cases were in favour of the consumers as compared to the total number of cases
disposed of in both the original and appeal cases. Similarly, a few cases were rejected
on technical grounds In comparison to the cases filed through original petition, a
maximum number of cases were disposed of against the consumers in appeal cases.
183
TABLE 4.21
Details of the Cases Disposed of in the SCDRC
Sl.No.
1.
2.
3.
4.
1.
2.
3.
4.
Particulars Original Petition
Number of Cases disposed of
Number of Cases disposed of in favour of Consumers
Number of Cases disposed of against the Consumers
Number of Cases rejected on technical grounds
Appeals
Number of Cases disposed of by the SCDRC
Number of Cases disposed of in favour of Consumers
Number of Cases disposed of against the Consumers
Number of Cases rejected on technical grounds
1991
154
N.A
N.A.
N.A.
145
N.A.
N.A.
N.A.
1992
358
218 (61)
84 (23)
56 (16)
408
327 (80)
19 (5)
62
(15)
1993
381
187 (49)
130 (34)
64 (17)
673
324 (48)
315 (47)
34
(5)
1994
341
145 (43)
153 (45)
43 (12)
430
198 (46)
222 (52)
10 (2)
1995
160
92 (58)
63 (39)
5 (3)
1244
663 (53)
553 (44)
28 (3)
Sources: Monthly Statement of Report of the SCDRC, Madras.
N.A. - Not Available.
Figure in brackets indicate percentages to the number of cases disposed of,
186
National Comsiimcr Disputes Rcdrcssal Commission
National Commission is located in New Delhi. It consists of five members
The President is a sitting or retired judge of the Supreme Court, appointed by the
Central Government after consultation with the Chief Justice of India. The four other
members are persons of ability, integrity and standing, eminent in dealing with
problems related to economics, law, commerce, industry or public administration and
one of them is a woman. The four members arc appointed by the Central Government
on the recommendation of a Selection Committee consisting of the following:
1. A Chairman, usually a person who is a judge of the Supreme Court,
nominated by the Chief Justice of India.
2. Secretary of the Department of Legal Affairs in the Government of India.
3. Secretary of the Department dealing with Consumer Affairs in the
Government of India.
The commission has original jurisdiction over complaints where the value of
goods or services and compensation if any claimed exceeds Rs.20 lakhs. It also
entertains appeals against the orders of any State Commission. It can call for records
and pass appropriate orders in cases where State Commission had exercised a
jurisdiction not vested in law or has failed to exercise its jurisdiction or has exercised
its jurisdiction illegally or with material irregularity.35
35. M.S. Ramasamy, op.cit.. p.7.
187
The procedure for disposal of cases is similar to the procedure in the District
Forum. The appeal against the orders of the National Commission can be made to the
Supreme Court within 30 days of receiving the orders from the National Commission.
If delayed, proper reason has to be given along with the appeal.
The National Commission disposed of all the cases in the first few years of
its formation. It entertains the original, first appeal and revision petitions. Table 4.22
shows the number of cases filed and the increase in pending cases from year to year. In
1993, the cases pending in original and first appeal were more than in the previous
year. There was no pending case during the first three years of its establishment in
original and first appeal. Due to the awareness among people, cases filed had
increased. Similarly the pending cases had also increased due to the non-appointment
of the president, members and sufficient staff members. The number of cases filed
through original petition were less than the first appeal and revision petition. It can be
inferred that many of the consumers were not satisfied with the decree of the State
Commission, hence they were appealing to the Appellate Court.
I
192
From the foregoing discussion, it is clear that about 50 per cent of the
judgements were in favour of the consumers as against the total number of cases
disposed of in the District Forums and State Commissions. The number of cases filed
had increased despite the legal measures taken by the Government at different levels.
The redressal machineries at District and State levels were not able to settle the
grievances of consumers due to insufficient and untrained Staff members, irregular and
improper appointment of members lo the Forums.
Complaint
Complaint is an allegation made by one person against another. A
complaint may be filed in relation to any goods sold or delivered or agreed to be sold
or delivered or any service provided or agreed to be provided. The following are the
ways in which a complaint is made.
i) It can be filed by the consumer himself who has been affected by any
goods bought or service hired for a sum paid.
ii) It can be filed through any recognised consumer voluntary organisation.
It is not necessary that the complainant be a member of that Organisation.
iii) It can be filed through advocates.
iv) It can be filed through a number of consumers having the same interest.
v) It can be filed by the Central or the State Government.
193
Procedure to be followed for filing Complaints before the District Forums/State Commissions
A complaint is presented by the complainant in person or by his authorised
agent or sent by registered post to District Forum/State Commission. It contains the
following particulars
a) The name, description and address of the complainant.
b) The name, description and address of the opposite party or parties.
c) The facts relating to the complaint, when and where it arose.
d) The documents in support of the allegations contained in the complaint.
e) The relief or compensation claimed by the complainant.
Number of Copies of a Complaint to be filed
Normally five copies of a complaint are attached while filing in a District
Forum, because one copy is used for office reference, one copy is sent to the opposite
party and each member of the District Fomrn gets a copy. If a number of opposite
parties is more than one, then for every additional party, one copy has to be sent.
Causes for Which the Complaint can be filed
A complaint can be filed under the following circumstances:
i) For defects in goods bought, that is, for deficiencies in quality , quantity
or standard, as claimed by the buyer.
ii) If the price charged is more than the prescribed rate of the goods.
194
iii) For deficiency in service like time defaults or neglect of duty or mistake
in service and so on.
iv) For any unfair trade practice like false representation of standards,
quality or quantity, false warranty or guarantee of service, the conduct of lottery,
games of chance or skill or misleading offer of gifts so as to promote the sale of a
product36.
Procedure to be foHwed by the District Forums/State Commission on recipt of the complaint
The District Foaims/State Commission/ on receipt of a complaint verifies
first, whether the complaint is within the jurisdiction of their Forums and contains the
necessary details. Then it allots a number to it, which is known as the complaint
number. This process is done within 3 days in the office of the Forum".
It sends a copy of the complaint to the opposite party with a summon to
reply within 30 days. The opposite party may deny or dispute the allegations contained
in the complaint or completely omit to take any action to represent the case in the
District Forums within the time-frame. Then the District Forums will settle the case
giving a reasonable opportunity to the complainant as well as to the opposite party for
giving their views. An appropriate order is issued.'
36- IndjanExpress (Madurai), dated 12th March 1997, p.7.
37. Yashood Vardhan, Consumerism and Consumer Protection Laws, Madras: Education and Aid Society, 1994, p.29.
195
If a sample of the goods has to be sent for verification to an analytical
laboratory, then the District Forum sends it to an appropriate laboratory along with
proper directions.
The complainant has to bear the laboratory expenses. After receiving the
report, the case is settled and appropriate order is issued (The model form of complaint
is shown in Appendix-E).
Relief Available to Consumers
The Redressal Forum may order the following reliefs.
a) Removal of defects in the goods
b) Replacement of the goods
c) Refund of the price paid or
d) Award of compensation for the loss suffered or injury sustained.
IV. Allied Acts
In the foregoing analysis, the various aspects of Consumer Protection Act,
1986 was dealt with. There are Acts allied to Consumer Protection Act, 1986, under
which the legal measures are taken up by the government. These allied Acts are
discussed in brief to highlight the important features and purposes.
196
1. Indian Penal Code, I860
The Indian Penal Code, 1860 contains certain provisions which are
worth-noting in connection with Consumer protection. It provides penalties for
offences relating to weights and measures, factors affecting public health, and
counterfeiting the property mark. Sections 264 to 267 of the Indian Penal Code,
1860,(IPC) relate to fraudulent use of instruments for weighing, fraudulent use of
weights and measures. Anyone in possession of false weights or measures and using
them to further his interest is liable to be punished with imprisonment of either
description for a term which may extend to one year or with fine or with both.
From the above provisions, it is obvious that these offences are based on the
doctrine ofmensrea.38 The knowledge regarding the false weights or measures or their
fraudulent use is necessary to constitute an offence. It is to be noted that provisions
regarding the establishment of standards of weights and measures and the enforcement
of the standards and for matters connected therewith, have been incorporated in the
Standards of Weights and Measures Act, 1976 and Standards of Weights and Measures
(Enforcement) Act, 1985. However the IPC, 1860 and the Standards of Weights and
Measures Act dealing specifically with weights and measures, are independent of each
other.
38. Gurbax Singh, op.cit. p.76.
197
The IPC further provides in sections 272 to 276 punishments for
adulteration of food or drink intended for sale, the sale of noxious food or drink,
adulteration of drugs, sale of adulterated drugs and the sale of a drug as a different
drug or preparation of such drugs. Punishments include imprisonment of either
description for a term which may extend to 6 months or with fine which may extend to
Rs.1000 or with both. Section 277 and 278 also deal with voluntary corrupting or
fouling the water of public spring or reservoir, so as to render it less fit for the purpose
for which it is voluntarily used and making voluntarily atmosphere noxious to health of
persons in general dwellings or carrying on such business in the neighbourhood or
passing along a public way shall be punished with imprisonment of either description
for a term which may extend to three months or with fine which may extend to Rs.500
or with both. Besides, section 486 deals with selling or having for sale goods marked
with counterfeit property mark. Such actions shall be punished with imprisonment of
either description for a term which may extend to one year or with fine or with both.
It is to be noted that the IPC provisions connected with offence against
drugs are different from the Drugs and Cosmetics Act, 1940. The Drugs and cosmetics
Act provides for regulation of import, manufacture, distribution and sale of drugs and
cosmetics. It is also to be noted that Water (Prevention and Control of Pollution) Act,
1974, the Air (Prevention and Control of Pollution) Act, 1981 and the Environment
(Protection) Act, 1986 provide specifically for prevention and control of pollution of
water, air and environment.
198
2. Indian Contract Act, 1872
Under this Act, all agreements are contracts if they are made with the "free
consent" of the parties competent to contract, for a lawful consideration and with
lawful object and are not expressly declared to be void under the Act. Consent is said
to be free when it is not caused by coercion or undue influence, fraud,
misrepresentation or mistake in certain cases. When consent to an agreement is caused
by coercion, fraud, misrepresentation or undue influence, the agreement is a contract
voidable at the option of the party whose consent was so caused, while the agreement
is void where both the parties are under a mistake as to matter of fact39.
3. Usurious Loans Act, 1918
Many a time, Loans carry interest at exorbitant rates. These Loans may be
in money or in kind. The Usurious Loans Act, 1918 gives powers to courts while they
deal with such transactions. This Act provides that in any suit to which this Act
applies, whether heard exparte or otherwise, if the court has reason to believe that the
interest rate is excessive and the transaction between the parties are unfair.40 The
Court may exercise its power to reopen the transaction, verify the account between the
parties, relieve the debtor of all liability in respect of any excessive interest and set
aside either wholly or in part or revise or alter any agreement made for loan. But the
39. Anoop K. Kaushal, op.cit.. p. 16. 40- S.S. Gulshan, Consumer Protection and Satisfaction Legal and Managerial
Dimensions, New Delhi: Manas Publication, p. 123-124.
199
Court cannot excerise its authority, if the loan agreement had been made 12 years
before and if anything affects the decree of a Court.
Agricultural Produce (Grading and Marking)Act, 1937.
This legislation was enacted in 1937 to provide for the grading and marking
of produce. The term "agricultural produce" includes all produce of agriculture or
horticulture, and all articles of food or drink wholly or partly manufactured from any
produce and fleeces and the skins of animals. Under the Act, the Central Government
is empowered to make mles regarding prescription of grade designation as indicative of
the quality of any scheduled article included in the schedule to the Act. This Act is a
legislation for standardizing and grading of agricultural produce in India. The
certification mark under the Act is popularly known as "AGMARK". The grade
standards are based on both physical characteristics and internal attributes or qualities
such as weight, size, shape, colour, foreign material, physical damage, moisture and the
like. Specification for both physical and internal characteristics are actually worked out
after analysis of representative samples of each commodity and after discussion with
representatives of producers, merchants, exporters and so on.
This Act is implemented by the Directorate of Marking and Inspection. This
certification system adopted to ensure quality is operated on a voluntary basis except
for export products where it is compulsory. The Act has provided that the Central
Government or State Government or any officer authorised by it in writing or the
aggrieved persons or recognised Consumer associations are entitled to make a
200
complaint for taking cognizance of an offence punishable with imprisonment upto three
years or with fine or with both.
5. Drugs and Cosmetics Act, 1940
This Act provides for regulation of import, manufacture, sale and Standards
of drugs and cosmetics, thereby protecting the interests of the consumer. The main
objective of the Act is to ensure that the drugs and cosmetics are of the required
standards of quality, purity and strength and are packed in containers giving all
necessary information about them and their manufacture. This Act covers allopathy,
ayurvedic, siddha and unani systems. It lays down that no person or firm can stock, sell
or distribute daigs unless they have a proper licence issued by the State Government
for the purpose. Under this law, it is mandatory that every dealer must issue a cash
memo for drug sold to the Consumer. Section 26 of the amended Act has authorised
any recognised consumer association to pick up a sample of the drug or cosmetics for
testing and analysis. Any dealer or manufacturer found stocking or manufacturing
sub-standard drugs is punishable under the law. The Act provides for the establishment
of Drug Technical Advisory Board, Central Drugs Laboratory and Drugs Consultative
Committee.
6- Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954
The Act prohibits misleading advertisement relating to drugs,
advertisements of drugs alleged to possess magic qualities and remedies for certain
diseases. This Act provides that whoever contravenes any of the provisions of this Act
201
or rules made thereunder, shall on conviction be punishable with imprisonment which
may extend from six months to one year or fine or both. The term "Magic Remedy"
refers to a talisman, mantra, Kavacha and any other charm of any kind which is alleged
to possess miraculous powers for or in the diagnosis, cure, mitigation, treatment or
prevention of any disease in human beings or animals.
7. Prevention of Food Adulteration Act, 1954
The objectives of the Act are to prevent adulteration of food stuffs and the
manufacture, storing and sale of adulterated food stuffs for human consumption. The
enactment serves a very important role in securing to the citizens a minimum degree of
parity in the articles of food and thereby protecting and preserving the health of the
consumers; it also serves to prevent fraud on the Consumer Public. Adulteration of
food is an anti-social evil and this Act is for ensuring purity in the articles of food. In a
welfare State like India, it is a responsibility of the State to safeguard the interests of
the helpless and unorganised Consumer.
Food is an essential need of the Consumer regardless of social or economic
status. The prevention of Food Adulteration Act protects Consumers against
adulterated and contaminated food, by laying down the guidelines for setting up
standards for various food items. The Act makes it a criminal offence to sell any
food product which is adulterated or misbranded. A food article is considered
adulterated if it is different from that which it is declared to be and retains any
substance which makes it injurious or is prepared or packed or kept in unhygienic
202
conditions or contains impurities. If it contains prohibited preservatives or permitted
ones in excess of permitted limits, it is also said to be adulterated.
This Act was amended in 1986 to confer powers to the consumer and the
Registered Organisations to draw food samples for analysis. Any person indulging in
adulteration which is likely to cause death or injury is punishable for a period of three
years, which may extend to life with a fine of not less than Us.5000.
Case Laws: Adulteration Leads to the Payment of Compensation
In December, 1989, the National Commission for Consumer Disputes Redressal
Machinery gave a landmark verdict. It ordered the West Bengal Government to pay
compensation to the family of a consumer who had died due to consumption of
adulterated rapeseed oil supplied by a Government authorised ration shop. It was also
held that compensation would have to be paid to those who had suffered life-long
disability as a result of consuming the adulterated oil41.
8. Essential Commodities Act, 1955
One of the important legislations which gives substantial power to the
Government to regulate the activities of the business community is the Essential
Commodities Act, 1955. The purpose of the Act is to provide equitable distribution of
essential commodities at reasonable prices to the Consumer. Under the Act, the
41 • MajLExpress (Madurai), dated 6th September 1992, p.7.
203
Central and the State Governments have been empowered to regulate the production,
supply, distribution and pricing of essential commodities through promulgation of
various orders issued under the Act. Section 2(a) enumerates classes of commodities
which are essential. These are cattle fodder including oil cakes and other items, coal
including coke, accessories of automobiles, cotton and woollen textiles, drugs,
foodstuffs, including edible oil seeds, oils and cooked food, iron and steel, paper
including newsprint, paperboard and strawboard, petroleum and petroleum products,
raw cotton and raw jute. The Central Government may by notification declare any
other class of commodities to be an essential commodity. The main aim of this Act is
preventing business malpractices such as hoarding and profiteering by creating
manmade scarcities of essential goods.
Under section 7 of the Act, any contravention of certain orders made, can
be punished inter alia with imprisonment which may extend to seven years. It is also
provided that no Court shall take congnizance of any offence punishable under this Act
except on a report in writing of the facts constituting such offence made by a person
who is a public servant or any aggrieved person or any recognised consumer
association.
9. Protection of Civil Rights Act, 1955.
This legislation was enacted with the laudable objective of protecting the
Civil rights of Harijans by prohibiting enforcement of any religious disability in any
religious place like a temple and social disability in public places and restaurants. In
204
this way the Harijans were assured that they would not be denied certain rights
available to non-Harijans. They are equally entitled to the enjoyment of and use of
wools, water taps, public conveyance, educational institutions, hotels, hospitals, parks,
shops and so on.42
The Act provides that any refusal to sell any goods or any refusal to render
any service to any person when such goods are sold or services are rendered to other
persons (non-Harijans) in the ordinary course of business, shall be punishable.
10. Trade and MercSiandise Marks Act, 1958
A trade-mark is a mark on goods which establishes a connection between
certain goods and the proprietor or the registered user of the trade mark. This Act
provides for the registration of trade marks and prevents the use of fraudulent marks
on merchandise. If a Consumer is sold a spurious product carrying the trade mark or
brand name of a reputed manufacturer, he can complain to the manufacturer or
consumer redressal agency or the Controller-General of Patents and Trade marks, to
take action against those who have spuriously used its trade mark or brand name.
This Act provides a penalty for applying false trade marks and trade
descriptions. The punishment includes imprisonment for a term upto two years or fine
or both. In the case of drugs and foods, the punishment extends to three years with or
without fine. This legislation safeguards both the manufacturer and the consumer.
42. S.S Gulshan, op.cit.. p. 103.
205
Case Law: Providing False Description through Notice is Punishable
The Court held that a notice provides no defence to a person charged for a
false trade description. It is a great offence and hence any person who commits such an
act is punishable""
11. Export (Quality Control and Inspection) Act, 1963
This Act was promulgated with a view to provide for the sound
development of the export trade of India through quality control and the process of the
inspections of the goods for export A certificate of export-worthiness is issued to a
commodity by the Export Inspection Agency, under the Act. The Central Government
is empowered to notify the commodities, which are prohibited from export unless they
are accompanied by certificates issued by the Export Inspection Agencies.
The function of the Export Inspection Council is to advise the Central
Government regarding measures for the enforcement of quality control and inspection
in relation to commodities intended for export. Any person contravening the provision
shall be punishable for the first offence, with imprisonment for a term upto two years
or fine of Rs.5000/- or both and for the second subsequent offence the term of
imprisonment may extend to two years and a fine of Rs.5000/-. In the absence of
special and adequate reasons to be mentioned in the judgement of the Court, the
imprisonment shall not be less than three months.
43. Gurbax Singh, Law of Consumer Protection, Jaipur: Bharat Law Publications, 1992, p. 113.
206
12. Monopolies and Restrictive Trade Practices (MRTP) Act, 1969
The MRTP Commission has been set up under this Act to prevent any
company from indulging in monopolistic, restrictive or unfair trade practice. The
MRTP Act enables the consumer to approach the Commission for justice against
exploitation by monopoly trades and indulgence in restrictive trade practices.
In 1984, the Amendment Act was introduced to curb unfair trade practices.
There are five categories incorporated in the Amendment Act such as:
i) False or misleading statements
ii) Publication of false and misleading advertisement
iii) Conducting any prize or contest scheme with the aim of sales promotion.
iv) Sale or supply of goods not complying with standards laid down by the
competent authorities and v) Goods being hoarded or even destroyed with the
intention of hiking the prices of similar goods.
The main feature of the amendment is that it empowers the commission to
grant temporary injunctions restraining persons or companies from carrying on
monopolistic, restrictive or unfair trade until further orders. The Commission has also
been given powers to award monetary compensation to the aggrieved consumer.
There are some limitations in the MRTP Act as well as the nature of the
relief granted by the Commission. The Act does not apply to any undertaking owned
or controlled by the Government, a statutory corporation or even a co-operative
207
society. All public sector undertakings like Railways, banks, insurance corporations,
postal and telecommunications, airlines, electricity boards and municipal bodies are all
kept out ofthe purview of the Act The consumers are therefore left with no redressal
against these agencies.
As a result of the efforts of Consumer groups, the union cabinet has now
approved a set of proposals for setting up statutory boards to take charge of civil
services in Delhi. The Municipal Corporation of Delhi is now allowed to accept work
on deposit in these areas. The Government has also advocated stringent penalities for
unauthorised constaiction or other violation of the city's masterplan. The minimum
penalty in the ordinance is Rs. 10,000 as fine and three months imprisonment for
violations. Through the Amendment Act of 1986, the Commission has been
empowered to enquire into any restrictive or unfair trade practice upon receiving
complaint from any trade association, from any consumer or a registered Consumer
Association.
Case Law: False and Misleading Statement Regarding Utility and Quality of Service is Punishable
The advertisement has given the impression that a person can become a
registered medical practioner by associating himself with it. But actually they can
become a 'Rural Medical Practioner. Hence an enquiry was made by the MRTP
Commission which issued an interim injunction order'4'4.
44. Gurbax Singh, opxit., p. 121.
208
Offer of Prize for Promotion of Sales is Punishable
The commission held that the giving of prizes for the promotion of sale fell
within the MRTP Act if the trade practice was prejudicial to the public interest or to
the interest of the Consumer Hence the Commission directed such a company to
desist from arranging such contest or gift scheme for sales promotion4\
Contests and Lotteries Conducted by the Print Media
The Tamil Daily Dina Malar conducted contests and lotteries by advertising
in its newspaper. Hence the South District Consumer Welfare Council, Madurai, filed
a complaint against the editor. The judgement was in favour of the editor that the
contests and lotteries conducted by the print media for the purpose of entertaining or
amusing the readers, would not amount to unfair trade practice4''.
Sales Promotion Contests - An Unfair Trade Practice
The conducting of a contest designed to promote the sale of a product
where the condition for participating in the contest is the purchase of a product and the
result of the contest is based on draw of lots is an unfair trade practice within the
meaning of section 36A(3)(b) of the Act, the Monopolies and Restrictive Trade
Practices Commission has held.
45- Ibid., p. 129.
4& IndianExpress (Madurai), dated 4th April, 1995, p.7.
209
As per the sales promotion scheme of Byford, the Delhi division of West
Bengal Cements Limited which deals in Premier Padmin Cars, persons who make
outright purchase of Premier Padmin Cars or book them become entitled to participate
in a contest and win fabulous prizes According to the commission, the result of the
contest was determined by means of draw of lots. Such contest would certainly be
prejudicial to public interest for the simple reason that the consumer would be allowed,
induced or tempted to buy or atleast to book a Premier Padmin Car in the hope of
winning the coveted prizes Since the contest is now over and prizes have been
distributed Byford was directed to desist from launching any further scheme for
promotion or sale of any model car in future.'17
13. Hire Purchase Act, 1972
This Act is extremely useful for Consumers because it fixes a statutory
interest rate on all hire purchase transactions Any agreement violating this
requirement is considered void as per the Act. It prevents sellers from charging
exorbitant interest on hire purchases It stipulates that once the hirer or buyer has paid
a certain percentage of the total amount or a certain number of instalments the seller
cannot take away the goods for non-payment. He can only seek a Court order for
recovery of dues.
47. IjldLajiExpxess (Madurai), dated 6th May, 1998, p.7.
210
The Act also requires the seller to clearly state in a written agreement the
true nature of the implication of the agreement and also present accounts of the
transaction from time to time Thus the Act aims at regulating hire purchase
transactions to ensure that the consumer is not exploited. The Act has been withdrawn
twice, but with the request of certain individuals and Organisations, the Act has been
made effective.
14. Water (Prevention and Control of Pollution) Act, 1974
Water pollution means contamination of water, that is, the alteration of the
physical, chemical or biological properties of water by the discharge of any sewage or
trade effluent or any other liquid, gaseous or solid substances into the water. This is
likely to render such water harmful or injurious to public health or safety to domestic,
commercial, industrial, agricultural or other legitimate users or to the life and health of
animals or plants or aquatic organisms
This Act deals with the prevention and control of water pollution in order to
ensure the purity of water for use by Consumers. It prohibits or restricts the discharge
of industrial wastes into rivers, streams and wells. Any violation of this Act is
punishable by fine and imprisonment according to the extent of violation. Besides,
there are two Boards, Central and State Pollution Boards, to deal with both water and
air pollution.
211
There is a separate Act passed in 1981 to control air pollution. This Act
provides for the prevention, control and removal of pollution from the air we breathe.
Contravention of any provisions is liable to attract punishment and fine.
15. The Cigarettes (Regulation, Production, Supply and Distribution) Act, 1975
This Act seeks to achieve the laudable objective of informing the general
public about the health hazards of cigarette smoking. The Act requires that no
production, supply and distiibutioii of and no trade in cigarettes shall be made, unless
each package bears thereon the warning that "Cigarette smoking is injurious to health".
It provides that the warning should be legible, prominent and conspicuous as to size
and colour. Stringent penalties are provided for violation of any of the provisions of
the Act.
16. Standards of Weights and Measures Act, 1976
This Act was the result of Government's efforts to introduce uniform
standards for weighing and measuring commodities to protect consumer's interest.
This Act aims at establishment of weights and measures based on international system
of units, at the approval of prototypes of weighing and measuring instruments, control
and regulation of weights and measures and commodities in the packaged form. The
Act prohibits manufacture of non-standard weights and measures, storage and use of
non-standard weights and measures and counterfeiting of seals. The act is of great
importance to every consumer, who is very often cheated in terms of quality and
212
quantity, and denied the full value of money. This act is implemented by the Controller
of Legal Metrology in each state.
In 1985, for the purpose of uniformity in the enforcement of the standards
of weights and measures, another Act was passed. It provides for more effective
protection of consumers and covers all instruments used in buying and selling,
industrial production and those used for human health and safety. It contains
provisions to deter offenders especially those indulging in under weighment. But later
both the Standards of Weights and Measures Act 1976 and the Standards of Weights
and Measures (Enforcement) Act, 1985 were amended in 1986 to confer powers on
consumers and enable recognised consumer organisations to file complaints in a court.
In the case of defective weights and measures, a complaint can be filed on
plain paper either with the local Weights and Measures Inspectors or Controller of
Weights and Measures of the State. If this proves unsatisfactory, the same may be filed
in any district court, high court or supreme court as per procedures prescribed. The
penalties for any offence under the Weights and Measures Act vary from 6 months to 5
years of imprisonment or fine or both.
Consumers have a legal right to get correct quantities of goods for their
money. If they do not get it, a complaint can be filed in a consumer court. If the
traders use wrong weights and measures, they are liable to be punished.
213
17. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980
This Act is auxiliary to the Essential Commodities Act to specifically
prevent black-marketing and hoarding of essential commodities, by resorting to
preventive detention of persons who may manipulate. This Act purports to make
black-marketing illegal and protects the consumer by maintaining regular supplies of
essential commodities Offenders are strictly punishable under this act
The power to make detention orders have been conferred on the Union as
well as the State Governments, District Magistrates and Commissioners of Police. The
detention orders are to be executed at any place within India in the manner prescribed
for execution of warrants of arrest under the Criminal Procedure Code, 1973.
18. Bureau of Indian Standards Act, 1986
Under this Act, the Bureau of Indian Standards came into existence as a
statutory body in place of the Indian Standards Institution, with effect from 1st April
1987 to promote harmonious development of the activities of standardisation, marking
and quality certification of goods, besides attending to connected matters in the
country. It entrusts the Bureau with the task of formulation and promotion of
standards in all areas of activity. The BIS operates a certification marks scheme under
the Act to certify products conforming to relevant standards set by the Bureau. The
Act prohibits the improper use of its standard marks and the Bureau accepts and
processes any complaint by the consumer in the respect. The BIS certification marks
scheme is mandatory for a number of products involving hazards to health and safety of
214
life. All the provisions of LSI Act, 1952 are now covered under the BIS Act, 1986.
This law has been framed to control the standards of various goods and simplification
of the same to encourage standardisation This law guarantees the replacement of
substandard goods which are not according to the prescribed standard when carrying
the ISI mark. There is the provision for punishment, if an illegitimate use of the
standard mark is made under the Act.48
19. Environment Protection Act, 1986
The procedural difficulties involved in the implementation of anti-pollution
laws in the country led to the enactment of this legislation. The following are the
special features of this Act:
i) Any complaint made by the public to the Government about a pollution
problem has to be acted upon within 60 days, unless the complainant can go to the
court.
ii) If any solid, liquid or gas is present in the environment which is injurious
to health, stringent penalities are imposed.
iii) Any violation of the Act can lead to 5 years imprisonment and
Rs. 10,000 as fine or both. If the contravention continues, additional fine of Rs.5,O00
for every day contravened and maximum imprisonment upto 7 years can be imposed.
48. Pradeep, S. Mehta and Anant Sharma, The Consumer WjaUoJcVMjow Calcutta: Consumer Unity and Trust Society "CUTS", 1989, p.50.
215
20. Narcotic Drugs and Psychotropic Substance Act, 1985
This Act consolidated and amended the law relating to narcotic drugs and
made stringent provisions for the control and regulation of operations relating to
narcotic drugs and psychotropic substances and other related matters.40 Prior to this
enactment, the statutory control over narcotic drugs was exercised in India, through a
number of Central and State enactments such as the Opium Act, 1857 and Dangerous
Drugs Act, 1930.
21. The Railway Claims Tribunal Act, 1987
This Act provides for the establishment of a Railway Claims Tribunal. It
determines the claims against the railways for loss, damage, deterioration or
non-delivery of goods or animals entrusted to it for transportation or for refund of
fares, freight or compensation for death or injury to passengers in railway accidents.
The Claims tribunal shall not admit an application for any claim unless -
a) The application is made within three years from the date on which the
goods were entrusted to the railway administration for carriage by way.
b) The application is made within one year of occurence of the accident.
c) The application is made within three years from the date on which the
fare or frieght is paid to the railway administration.
49. S.S. Gulshan, op.cit.. p.99.
216
CONCLUSION
There are many laws which echo the spirit of consumerism in one way or
the other. These Acts deal with prices, distribution, sales, contracts, quality of
standard, adulteration, safety, food grains, fruits, food products and so on, Moreover,
the object and intent of all the enactments given above are mainly punitive, though
some of them are preventive in nature. These acts provide for the prosecution and
punishment of those persons who violate the provisions. The punishment is meant to
operate as a deterrent against indulgence in malpractices in their dealings with
consumers. The survey revealed that the majority of the district forums do not
function continuously, due to non-appointment of members. A sizeable portion of the
selected forums settled the cases within 90 days.