PROFESSIONAL PRACTICE

PROFESSIONAL PRACTICE

consumer protection actconsumer protection act

In the past the consumer was helpless and harassed, where as the seller/manufacturer/supplier rolled the roost.

With the enactment of Consumer Protection Act, 1986 the scenario has undergone a change.

With the enactment of this law, consumers now feel that they are in a position to declare “sellers be aware” whereas previously the consumers were at the receiving end and generally told “buyers be aware”.



CHAPTER – IPRELIMINARY1.Short title, extent, commencement and application2.Definitions3.Act not in derogation of any other law

CHAPTER – IICONSUMER PROTECTION COUNCILS4.The Central Consumer Protection Council5.Procedure for meetings of the Central Council6.Objects of the Central Council7.The State Consumer Protection Councils8.Objects of the State Council8A.The District Consumer Protection Council

http://ncdrc.nic.in/1_1.html










CHAPTER – IIICONSUMER DISPUTES REDRESSAL AGENCIES 9.Establishment of Consumer Disputes Redressal Agencies10.Composition of the District Forum11.Jurisdiction of the District Forum12.Manner in which complaint shall be made13.Procedure on admission of complaint14.Finding of the District Forum15.Appeal16.Composition of the State Commission17.Jurisdiction of the State Commission17A.Transfer of cases17B.Circuit Benches18.Procedure applicable to State Commissions19.Appeals19A.Hearing of Appeal20.Composition of the National Commission


















21.Jurisdiction of the National Commission22.Power of and procedure applicable to the National Commission22A.Power to set aside ex parte orders22B.Transfer of cases 22C.Circuit Benches 22D.Vacancy in the Office of the President 23.Appeal24.Finality of orders24A.Limitation period24BAdministrative Control25.Enforcement of orders of the District Forum, the State Commission or the National Commission26.Dismissal of frivolous or vexatious complaints27.Penalties27A.Appeal against order passed under section 27
















CHAPTER – IVMISCELLANEOUS28.Protection of action taken in good faith28A.Service of notice, etc. 29.Power to remove difficulties29A.Vacancies or defects in appointment not to invalidate orders30.Power to make rules30A.Power of the National Commission to make regulations 31.Rules and regulations to be laid before each House of Parliament


The Indian Parliament enacted this legislation in December, 1986. It came into force on April 15, 1987. By July 1987, all the provisions came into operation.

The object of the legislation, as the Preamble of the Act proclaims, is for better protection of the interests of consumers.

It has become the vehicle for enabling people to secure speedy and in-expensive redressal of their grievances.


The Act aims to provide better and all-round protection to consumers.

In terms of geographical application, it applies to the whole of India except the State of Jammu and Kashmir.

It applies to all goods and services unless otherwise expressly notified by the Central Government.

It is indeed a very unique and highly progressive piece of social welfare legislation and is Acclaimed as the magna carta of Indian consumers. The Act has made the consumer Movement really going and more powerful, broad-based and effective and people oriented.

It provides effective safeguards to the consumers against different types of exploitation such as defective goods, unsatisfactory (or deficient) services and unfair trade practices.


The provisions of this Act cover ‘Products’ as well as ‘Services’.

The products are those which are manufactured and sold to consumers through wholesalers and retailers.

The services are of the nature of transport, telephones, electricity, constructions, banking, insurance, medical treatment etc.

The services are, by and large; include those provided by professionals such as Doctors, Engineers, Architects, and Lawyers etc.


the central consumer protection council

the state consumer protection councils

the district consumer protection councils

THREE TYPES-


The Central Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council

The Central Council shall consist of the following members, namely:—1.the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and

2.Such number of other official or non-official members representing such interests as may be prescribed.

THE CENTRAL CONSUMER PROTECTION COUNCIL


the right to be protected against the marketing of

goods and services which are hazardous to life and property;

the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices;

the right to be assured, wherever possible, access to a variety of goods and services at competitive prices;

the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums;

the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of con sumers; and

the right to consumer education.

OBJECTS OF THE CENTRAL COUNCIL


The State Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the state Consumer Protection Council

The State Council shall consist of the following members, namely:—1.the Minister in charge of consumer affairs in the State Government who shall be its Chairman;

2.Such number of other official or non-official members representing such interests as may be prescribed by the State Government.

THE STATE CONSUMER PROTECTION COUNCILS


The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council

The District Consumer Protection Council shall consist of the following members, namely:—1.the Collector of the district (by whatever name called), who shall be its Chairman;

2.Such number of other official and non-official members representing such interests as may be prescribed by the State Government.

THE DISTRICT CONSUMER PROTECTION COUNCILS


A written complaint, as amended by Consumer Protection (Amendment) Act, 2002, can be filed before the District Consumer Forum (up to Rupees twenty lakhs)-at the base,State Commission (up to Rupees One crore)- at the middle level, National Commission (above Rupees One crore) at the apex level. in relation to a product or in respect of a service, but does not include rendering of any service free of cost or under a contract of personal service.

The service can be of any description, the illustrations given above are only indicative and not exhaustive.

In the complaint/appeal/petition submitted under the Act, a consumer isnot required to pay any court fees or even process fee.

If a consumer is not satisfied by the decision of the District Forum, he can challenge the same before the State Commission and against the order of the State Commission a consumer can come to the NationalCommission.


WHO IS A CONSUMER?

A consumer is any person who buys any goods for a consideration and user of such goods where the use is with the approval of a buyer, any person who hires/avails of any service for a consideration & any beneficiary of such services, where such services are availed of with the approval of the person hiring the service. The consumer need not have made full payment. Goods mean any movable property and also include share, but do not include any actionable claims. Service of any description is covered under C.P.Act & includes Banking, financing, insurance, transport, processing, housing, construction, supply of electrical energy, entertainment, amusement, board and lodging, among others.’


WHO CAN FILE A COMPLAINT? A complaint on a plain paper either handwritten or typed, can be filed by a consumer, a registered consumer organization, central or State Government & one or more consumers, where there are numerous consumers having the same interest. No stamp or court fee is needed.CONSUMERS CAN MAKE COMPLAINTS AGAINST WHICH OF THE THINGS? A) Any unfair trade practice or restrictive trade practice adopted by the trader. B) Defective goods. C) Deficiency in service. D) Excess price charged by the trader. E) Unlawful goods sale, which is hazardous to life and safety when used.


WHAT ARE THE RELIEFS AVAILABLE TO CONSUMERS? Consumer courts may grant one or more of the following reliefs :-

A) Repair of defective goods. B) Replacement of defective goods. C) Refund of price paid for the defective goods or service. D) Removal of deficiency in service. E) Refund of extra money charge. F) Withdrawal of goods hazardous to life and safety. G) Compensation for the loss or injury suffered by the consumer due to negligence of the opposite party. H) Adequate cost of filing and pursuing the complaint. I) Grant of punitive damages.


WHAT IS THE LEGISLATION THAT ENSURES ALL THESE RIGHTS?

It is the Consumer Protection Act, 1986. The act seeks to promote and protects the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair or restrictive trade practices, which may be practiced by manufacturers and traders. There are various levels of ad judicatory authorities that are set up under the Act, which provide a forum for consumers to seek redressal of their grievances in an effective and simple manner.

WHAT ARE THE OTHER ADVANTAGES TO THE CONSUMER UNDER THIS LAW?

The consumer under this law is not required to deposit advalorem court fees, which earlier used to deter consumers from approaching the Courts. The rigors of court procedures have been dispensed with and replaced with simple procedures as compared to the normal courts, which helps in quicker redressal of grievances. The provisions of the Act are compensatory in nature.


The Act makes provisions where the machinery under the Act can be set in motion by the consumer organizations involved in consumer awareness movements in the country. The Act provides “recognized consumer associations” can move the agencies. The organization can take up the case of the consumer and it is not necessary for you to be a member of the organization.

WHAT IS THE ROLE OF CORE & OTHER CONSUMER ORGANIZATIONS UNDER THE ACT?


CASES


Complainant had booked a flat for 872 sq. ft. of the area at Rs.630 per sq. ft. that is for Rs. 549.360/- and payments made.

There after the builder asked him to pay for 25% of more area, called the super built up area.

The arguments of the builder were that the area at that time was "approximate" which word was incorporated in the agreement.

The area now has come to 1127.74 sq.ft, Due to super built up areas as also area under the niches and balconies.

The demand of the builder was turned down on the ground that:

Approximate does not mean an increase of 25% but it means a difference of few feet. `

At the time of the purchase the builder can always find out tl1e approximate super built up area and purchaser must have been made to know that in addition to the covered area, he will be required to pay for super built up area roughly at about 20% to 30% of the covered area, which fact was not brought to the notice of the purchaser of the flat at the time of booking of the flat.

The case was decided against the builder as the same amounted to unfair trade practice

RAGHUBIR SINGH JAIN-V-ANSAL HOUSING AND CONSTRUCTION LTD. 1 (1995) C.P.I. 134 (S.C. D.R.C.) OR 1995 (L) CPR 98


CONSTRUCTION DEFICIENT, ESSENTIAL SERVICES NOT COMPLETED AND CONSTRUCTION OF 4TH TO 12TH FLOORS HAZARDOUS TO THE OCCUPANTS:

In Pushpa builders flat buyers association vs. Pushpa builders ltd. And others, II(1996) CPJ 212(N.C): 1996 (3) CPR57 (N.C), the national commission held that the building activity carried on by the opposite party was service within the meaning of section 2(1)(o) of the act.

The national commission has further held that the flats constructed by the builder suffered from defects and deficiencies , that non of the series of amenities promised by the builder in advertisements, handouts and brochures existed at the site that even such essential services as water, electricity and sewerage were not completed that three floors were completed in the building and the builder proposed to continue with the construction and raised 4th to 12th floors that continuation of construction activities on upper floors would pose great hazards to life and property of the occupants and that though the builder has promised to complete the project by December 1991, but has miserably failed in providing services, as detailed above, and has committed deficiency in service.


The case involves the licensing of architects. The plaintiff, who was not licensed as an architect, agreed with an

owner to design a building. The owner then agreed with a licensed architect that the latter

would employ the plaintiff to design the building, and the owner would pay the licensed architect who, in turn, would pay the plaintiff. When the licensed architect did not pay, the plaintiff sued him on their contract and sued the owner, alleging that he was a third-party beneficiary of the owner-licensed architect contract.

The defendants prevailed on an illegal contract defense. Appellees here submit that the plaintiff in Snodgrass is analogous to the Subcontractor in the case at bar. That is not our reading of Snodgrass.

There, the Court held that the owner-licensed architect contract was intended to circumvent the licensing requirement.

Under the facts, the plaintiff was in substance, if not in form, the owner's architect and the licensed architect was a mere "strawman." Id. at 422, 194 A.2d at 106.

Thus, Snodgrass is but another case applying the rule between an owner, as the party to be protected, and an unlicensed person with whom the owner, in substance, had agreed.

SNODGRASS V. IMMLER, 232 Md. 416, 194 A.2d 103 (1963).


SUBMITTED BY,K.ANUSHA-060107RASHMI BHATT-060129

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PROFESSIONAL PRACTICE