Consumer
Protection Act:
The Indian Parliament
passed the Consumer Protection Act in, 1986; as the name suggests, to protect the
interest of the consumers and to provide them a mechanism for easy, quick and
cheap redressal of grievances against the mighty and unscrupulous producers/
traders and service providers.
Following three-tier
quasi-judicial machinery has been provided under the Act to deal with consumer
complaints:
District
Forum - Operates at the District level and deal with
consumer complaints pertaining to the value of goods or services and
compensation not exceeding Rs.20 lakhs.
State
Commission - Operates at the State level and deals with
complaints of the value exceeding Rs. 20 lakhs but not exceeding Rs. 1.00
crore. It also hears appeals against the orders of the District Forum.
National
Commission - Functions at the National level for the
complaints of the value exceeding Rs. 1.00 crore and hears appeals against the
orders of the State Commission.
Complaints in relation to any goods or
services may be preferred before the above mentioned by the consumer himself or
by any recognized consumer association where the consumer is a member or where
there are a number of consumers having the same interest, one or more consumers
on behalf or for the benefit of all the consumers so interested. Complaints may
also be preferred by the Central or the State Government.
As per section 2(1)
(c), of the Act, the following may form the subject matter of complaint:
• An unfair trade
practice or a restrictive trade practice adopted by any trader;
• Defect in the goods purchased;
• Deficiency in
service;
• Over-charging of price;
It is important to note
two important definitions provided in the Act "Service" [Section 2
(1) (0)] has been defined in the Act to mean service of any discipline and includes
the provision of facilities in connection with banking, financing, insurance,
transport, processing, supply of electrical or other energy etc., but does not
include the rendering of any service free of charge or under a contract of
personal service.
As per section 2 (1) (g), "Deficiency"
means any fault, imperfection. shortcoming or inadequacy in the quality, nature
and manner of performance required to be maintained under any law or in
pursuance of a contract or otherwise.
Various judgments of
the Consumer Courts reveal that they have not only been awarding the value of
the goods or services for the defect and deficiency in service but also the
compensation for the mental agony and harassment. When the Commission has been
vested with the jurisdiction to award value of goods or services and
compensation it has to be construed widely enabling the Commission to determine
compensation for any loss or damage suffered by a consumer, which in law is
otherwise included in wide meaning of compensation. The provision enables a
consumer to claim and empowers the Commission to redress any injustice done to
him. Any other construction would defeat the very purpose of the Act. The
Commission or Forum in to the Act is thus entitled to award not only value of
the goods or services but also a compensate a consumer for injustice suffered
by him.
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