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Saturday, September 17, 2011

Useful information relating with Consumer Protection Act - Study Material for IPO Examination

                                                                               Download/Print 
1  The act was passed in Lok Sabha on 9th December,1986

2 Published in the Gazette of India on 26th December, 1986.

3   The Minister in charge of the consumer affairs in the Central Government is the member of  consumer protection councils
4   The three tier system  based on consumer protection

CONSUMER PROTECTION COUNCILS, State Council  District Consumer Protection Council 

5  Consumer Disputes Redressal Forum may be called as   District Forum.

6 Consumer Disputes Redressal Commission may be called as  State Commission

7 Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five years

8 District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed ''does not exceed rupees twenty lakhs. 
9   Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order.
10   The chairman of National commission shall be appointed by  central government .

11   A person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government.

12 The District Forum, the State Commis­sion or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen.
13  Definition of consumer

 Consumers are persons to whom goods or services are marketed, who have entered into transactions with suppliers, users of particular goods or recipients/beneficiaries of services.

14   Definition of  ‘Service’  in Consumer Protection act 1986

 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 or lodging or both, [housing construction], entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.

15    The State Commission for  Consumer protection is headed by  High court Judge who is appointed by state government .

16   Where a trader or a person against whom a complaint is made 2[or the complainant] fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, as the case may be, such trader or person 2[or complainant] shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three year.

17    National Commission deals with complaints involving costs and compensation higher than 1 Core. 

18    For  the purpose of   service  the ‘consumer’  is defined as 

1. One who hires or avails of any service or services for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment.

2. It includes any beneficiary of such service other than the one who actually hires or avails of the service for consideration and such services are availed with the approval of such person.

19   A person is not a consumer if he purchases goods for commercial or resale purposes.

20.   The state Consumer forum deals with complaints involving costs and compensation   between 20  lakh and 1 core.

21 The act was amended in 2002 and the amendments came into force w.e.f. 15th March 2003.

22  Fee  for  filing complaints
Forum
Particulars
Court fee
District Forum
Upto 1 Lakh Rupees – For Complainants who are under the Below Poverty Line
Nil
------do----
Above 1 Lakh and upto 5 Lakh rupees
    Rs  100/-
---------do----
Above 1 Lakh and upto 5 Lakh rupees
     Rs  200/-
--------do----
Above 5 Lakh and upto 10 Lakh rupees
     Rs 400/-
-------do-----
Above 10 Lakh and upto 20 Lakh rupees
     Rs  500/-
State Commission
Above 20 Lakh and upto 50 Lakh rupees
     Rs  2000/-
-----do----
Above 50 Lakh and upto 1 Core rupees
      Rs  4000/-
National Commission
Above 1 Core Rupees
     Rs   5000/-


 
22   The  District Forum shall have the powers of Civil Court
23    Where a complaint instituted before the District Forum, the State Commission or the National Commission, is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such Cost, not exceeding ten thousand rupees, as may specified in the order.

24  This act applies to whole of India except Jammu and Kashmir.

25  The consumer protection Act, 1986 tries to help a consumer when for example, the goods purchased are defective or the services rendered to him are subject to so deficiency
Prepared by  S Jayachandran , SA , Divisional Office , Mavelikara – 690101 -9961464279
               http://nfpemavelikaradivision.blogspot.com

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