The Consumer Protection Act, 1986

Introduction and Genesis of Consumer Protection Act

The need to ensure the basic rights to health, safety, etc. of consumers have long
been recognized the world over and various general legislations were enacted in
India and abroad in this direction. In India, the general enactments other than the
law of torts which ultimately aimed at protection of consumers interests are the
Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Dangerous Drugs Act,
1930, the Agricultural Produce (Grading and Marketing) Act, 1937, the Drugs and
Cosmetics Act, 1940, the Indian Standards Institution (Certification Marks) Act,
1952, the Prevention of Food Adulteration Act, 1954, the Drugs and Magic
Remedies (Objectionable Advertisements) Act, 1954, the Essential Commodities
Act,1955, the Standards of Weights and Measures Act, 1976 (Now Legal
Metrology Act, 2009), the Trade and Merchandise Marks Act, 1958, (Now Trade
Marks Act, 1999), the Patents Act, 1970, the Hire Purchases Act,1972 and the
Prevention of Black Marketing and Maintenance of Supplies of Essential
Commodities Act,1980.
These legislations required initiate action by way of a civil suit which involved
lengthy legal process proving to be too expensive and time consuming for lay
consumers.
This paved the way for enactment of the Consumer Protection Act in 1986
providing for simple, quick and easy remedy to consumers. To make the Act more

effective and meaningful, necessary changes have been brought by Consumer

Protection (Amendment) Act, 2002, which came into force w.e.f. March 15, 2003.

Basic of consumer protection act, 1986

Total number of chapters- 4 chapters
1. Chapter 1- Preliminary
(Sec.1-Sec.3)
2. Chapter 2-Consumer Protection Councils
(Sec.4-Sec.8-B)
3. Chapter 3-Consumer Disputes Redressal Agencies.
(Sec.9-Sec.27-A)
4. Chapter 4-Miscellaneous
(Sec.28-Sec.-31)

Scope of the Act (according to section 1)

Short title-Consumer Protection Act, 1986
Extent- Whole of India except state of Jammu and Kashmir.
Commencement and application-provision of chapters I, II, IV of this Act
have come into force on 15-04-1987.and provision of chapter III of this Act
have come into force on 1-7-1987.

Definitions (section 2(1))

Section 2(1) of the Act defines various terms used in the Act. Some of the
definitions are given hereunder:
Complainant (sec 2.1.b)
(i) A consumer, or
(ii)

Any voluntary consumer association registered under the Companies Act, 1956,

or under any other law for the time being in force; or

(iii) The Central Government or any State Government, who or which makes a
complaint; or
(iv) One or more consumers where there are numerous consumers having the same
interest;
(v) In case of death of a consumer, his legal heir or representative;
Who or which makes a complaint
Complaint (sec 2.1.c) means any allegation in writing made, with a view to
obtaining any relief, by a complainant that
(i) An unfair trade practice or a restrictive trade practice has been adopted by any
trader or service provider;
(ii) The goods bought by him or agreed to be bought by him suffer from one or
more defects;
(iii) The services hired or availed of or agreed to be hired or availed of by him
suffer from deficiency in any respect;
(iv) A trader or the service provider, as the case may be, has charged for the goods
or for the services mentioned in the complaint, a price in excess of the price

 fixed by or under any law for the time being in force;

displayed on the goods or any package containing such goods;
displayed on the price list exhibited by him by or under any law for the time
being in force
agreed between the parties.
(v) Goods which will be hazardous to life and safety when used are being offered
for sale to the public,
In contravention of any standards relating to safety of such goods as required to
be complied with, by or under any law for the time being in force;
If the trader could have known with due diligence that the goods so offered are
unsafe to the public.
(VI) services which are hazardous or likely to be hazardous to life and safety of the
public when used, are being offered by the service provider which such person
could have known with due diligence to be injurious to life and safety.
1

Consumer (sec 2.1.d) - means any person who

(i) buys any 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

Laxmi Engineering Works v. P.S.G. Industrial Institute, Supreme Court

Bhupendra Jang Bahadur Guna v. Regional Manager and Others (II 1995 CPJ 139)
Narasamma v. LIC of India
Laxmiben Laxmichand Shah v. Sakerben Kanji Chandan and others 2001 CTJ 401 (Supreme Court) (CP)

(ii) hires or avails of any services for a consideration which has been paid or
promised or partly paid and partly promised, o2`r under any system of deferred
payment and includes any beneficiary of such services other than the person who
hires or avails of 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 the first mentioned person but does not include a
person who avails of such services for any commercial purpose.

Consumer Dispute (sec 2.1.e) - means a dispute where the person against whom a
complaint has been made, denies or disputes the allegation contained in the
complaint

Defect (sec 2.1.f)- means any fault, imperfection or shortcoming in the quality,
quantity, potency, purity or standard which is required to be maintained by or
under any law for the time being in force or under any contract, express or implied,
or as is claimed by the trader in any manner whatsoever in relation to any goods.
2

Deficiency (sec 2.1.g)- means any fault, imperfection, shortcoming or inadequacy

in the quality, nature and manner of performance which is required to be

maintained by or under any law for the time being in force or has been undertaken
to be performed by a person in pursuance of a contract or otherwise in relation to
any service

Union Bank of India v. Seppo Rally OY (1999) 35 CLA 203

N. Prabhakaran v. General Manager, Southern Railway, Madras - I (1992) CPJ 323 (NC).

Goods (sec 2.1.i) defined in the Sales of Goods Act, 1930

Every kind of movable property other than actionable claims and money; and
includes stock and shares, growing crops, grass and things attached to or forming
part of the land, which are agreed to be severed before sale or under the contract
sale. Therefore, most consumer products come under the purview of this definition.

Service (sec 2.1.o) - mean service of any description which is made available to
potential users and includes, but not limited to the provision of facilities in
connection with banking, financing, insurance, transport, processing, supply of
electrical or other energy, 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.

Consumer protection councils (chapter II, Section 4-8B)

Central Consumer Protection Councils (sec 4-5)
Section 4 empowers the Central Government to establish a Council to be known as
the Central Consumer Protection Council (hereinafter referred to as the Central
Council), consisting of the Minister in charge of Consumer Affairs in the Central
Government, as its Chairman, and such number of other official or nonofficial
members representing such interests as may be prescribed. However, the
Consumer Protection Rules, 1987 restrict the number of members of the Ce ntral
Council to 150 members.

Morgan Stanley Mutual Fund v. Kartik Das (1994) 3 CLJ 27

Section 5 of the Act requires the Central Council to meet as and when necessary,
but at least once in every year. The procedure in regard to the transactions of the
business as may be prescribed.

State Consumer Protection Councils (section 7)

Section 7 provides for the establishment of State Consumer Protection Councils by
any State Government (by notification) to be known as Consumer Protection
Council for (name of the State). The State Council shall consist of a Minister
Incharge of Consumer Affairs in the State Government as its Chairman and such
number of other official or non-official members representing such interests as
may be prescribed by the State Government and such number of other official or
non official members, not exceeding ten, as may be nominated by the Central
Government. The State Council shall meet as and when necessary but not less
than two meetings shall be held every year. The procedure to be observed in regard
to the transaction of its business at such meetings shall be prescribed by the State
Government.

District Consumer Protection Councils (section 8-A)

In order to promote and protect the rights of the consumers within the district,
section 8A provides for establishment in every district of a council to be known as
the District Consumer Protection Council .It shall
consist of the Collector of the district (by whatever name called), who shall be its
Chairman and such number of other official and non-official members representing
such interests as may be prescribed by the State

Government. The District Council shall meet as and when necessary but not less
than two meetings shall be held every year. The District Council shall meet at such
time and place within the district as the Chairman may think fit and shall observe
such procedure in regard to the transaction of its business as may be prescribed by
the State Government.

Object of the Central, State, District Councils (section 6, 8, 8-B)

The objects of the central councils shall be to promote and protect the rights of the
consumers such as The right to be protected against 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 so as to protect the consumer against unfair trade
practices;
The right to be assured, wherever possible, access to variety of goods and
services at competitive prices;
The right to be heard and to be assured that consumers 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 consumers; and
Right to consumer education.

District Forum (section-9)

District Forum- established by the State Government in each district of the State.

*the State Government may establish more than one District Forum in a district if
it deems fit to do so.

Each District Forum shall consist of: (Section 10(1))(a) A person who is, or who has been, or is qualified to be, a District Judge, who
shall be its President;
(b) Two other members one of whom shall be a woman, who shall have the
following qualifications, namely:
(i) be not less than thirty-five years of age,
(ii) Possess a bachelors degree from a recognized university,
(iii) Be persons of ability, integrity and standing, and have adequate knowledge
and experience of at least ten years in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs or administration:
Provided that a person shall be disqualified for appointment as a member if he
(a) Has been convicted and sentenced to imprisonment for an offence, which, in
the opinion of the State Government involves moral turpitude; or
(b) Is an undischarged insolvent; or
(c) Is of unsound mind and stands so declared by a competent court; or
(d) Has been removed or dismissed from the service of the Government or a body
corporate owned or controlled by the Government; or
(e) Has, in the opinion of the State Government, such financial or other interest as
is likely to affect prejudicially the discharge by him of his functions as a member;
or
(f) Has such other disqualification as may be prescribed by the State Government.
Every member of the District Forum shall hold office for a term of 5 years or
upto the age of 65 years, whichever is earlier, and shall be eligible for

reappointment for another term of five years or upto the age of sixty-five
years, whichever is earlier, subject to the condition that he fulfills the
qualifications and other conditions for appointment mentioned in Section
10(1) (b) and such re-appointment is also made on the basis of the
recommendation of the Selection Committee.
A member may resign his office in writing under his hand addressed to the
State Government

Jurisdiction of District Forum (Section 11)

Pecuniary limits- claim upto 20 lakhs. (Section 11.1)

4

Territorial limitsi.

Where the opposite party or the defendant actually and voluntarily resides or
carries on business or has a branch office or personally works for gain, at the
time of institution of the complaint; or

ii.

any one of the opposite parties (where there are more than one) actually and
voluntarily resides or carries on business or has a branch office or personally
works for gain, at the time of institution of the complaint, provided that the
other opposite party/parties acquiesce in such institution or the permission of
the Forum is obtained in respect of such opposite parties; or the cause of
action arises, wholly or in part.

State Commission (section 16)

State Consumer Disputes Redressal- established by state government.

4

Dynavox Electronic Pvt. Ltd. v. B.J.S. Rampuria Jain College, Bikaner (Appeal No. 4/89 before the Rajasthan
CDRC)

Each State Commission shall consist of: (Section 16(1))(a) A person who is or has been a judge of a High Court appointed by the State
Government (in
Consultation with the Chief Justice of the High Court) who shall be its President.
(b) Not less than two and not more than such number of members, as may be
prescribed, one of whom
Shall be a woman, who shall have the following qualifications, namely:
(i) be not less than thirty-five years of age,
(ii) Possess a bachelors degree from a recognized university, and
(iii) Be persons of ability, integrity and standing, and have adequate knowledge
and experience of at least ten years in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs or administration:

It is required that not more than fifty per cent of the members be from amongst
persons having a judicial background. Persons having judicial background shall
mean persons having knowledge and experience for at least a period of ten years as
a presiding officer at the district level court or any tribunal at equivalent level.
A person shall be disqualified for appointment as a member if he(a) Has been convicted and sentenced to imprisonment for an offence, which, in
the opinion of the State
Government involves moral turpitude; or
(b) Is an undischarged insolvent; or
(c) Is of unsound mind and stands so declared by a competent court; or
(d) Has been removed or dismissed from the service of the Government or a body
corporate owned or controlled by the Government; or

(e) has in the opinion of the State Government, such financial or other interest, as
is likely to affect prejudicially the discharge by him of his functions as a member;
or
(f) has such other disqualification as may be prescribed by the State Government.

Selection Committee :( section (1-A))

i.

President of the State Commission- Chairman;

ii.

Secretary of the Law Department of the State-Member;

iii.

Secretary incharge of the Department dealing with Consumer Affairs

in the State- Member;

The proviso to this clause states that where the President of the State Commission
is, by reason of absence or otherwise, unable to act as Chairman of the Selection
Committee, the State Government may refer the matter to the Chief Justice of the
High Court for nominating a sitting Judge of that High Court to act as Chairman.

Section 16(2) - empowers the State Government to decide on the salary or

honorarium and other allowances payable to the members of the State Commission
and the other terms and conditions of service.

Section 16(3) - Every member of the State Commission shall hold office for a term
of five years or upto the age of sixty-seven years, whichever is earlier and shall be
eligible for reappointment for another term of five years or upto the age of sixtyseven years, whichever is earlier.

Jurisdiction of State Commission (Section 17)

(A)

Pecuniary limits- 20 lakhs to 1 crore (Section 17.1)

(B)

Territorial limits-

A complaint shall be instituted in a State Commission within the limits of

whose jurisdiction, (a) The opposite party or each of the opposite parties, where there are more than
one, at the time of the
Institution of the complaint, actually and voluntarily resides or carries on business
or has a branch office or personally works for gain; or
(b) any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on business
or has a branch office or personally works for gain, provided that in such case
either the permission of the State Commission is given or the opposite parties who
do not reside or carry on business or have a branch office or personally work for
gain, as the case may be, acquiesce in such institution; or
(c) The cause of action, wholly or in part, arises.

Appellate jurisdiction
(C) The State Commission also has the jurisdiction to entertain appeals against the
orders of any District Forum within the State. However, under second proviso to
Section 15 no appeal by a person, who is required to pay any amount in terms of an
order of the District Forum, shall be entertained by the
State Commission unless the appellant has deposited in the prescribed manner fifty
percent of the amount or rupees twenty-five thousand, whichever is less;

Revisional jurisdiction

(D) the State Commission also has the power to call for the records and pass
appropriate orders in any consumer dispute which is pending before or has been
decided by any District Forum within the State, if it appears to it that such District
Forum has exercised any power not vested in it by law or has failed to exercise a
power rightfully vested in it by law or has acted illegally or with material
irregularity.

Transfer of Case

Section 17-A- empowers the State Commission on the application of the

complainant or of its own motion to transfer, at any stage of the proceeding any
complaint pending before the District Forum to another District Forum within the
State if the interest of justice so requires.

National Commission (section 20.1)

National Consumer Disputes Redressal Commission- established by the central

government (section 9).

The National Commission shall consist of

(a) A person who is or has been a judge of the Supreme Court, to be appointed by
the Central
Government (in consultation with the Chief Justice of India), who shall be its
President;

(b) Not less than four and not more than such number of members as may be
prescribed one of whom shall be a woman, who shall have the following
qualifications, namely:(i) be not less than thrity-five years of age;
(ii) Possess a bachelors degree from a recognized university; and
(iii) Be persons of ability, integrity and standing and have adequate knowledge and
experience of at least ten years in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs or administration:
Provided that not more than fifty percent of the members shall be from amongst
the persons having judicial background.

A person shall be disqualified for appointment if he

(a) has been convicted and sentenced to imprisonment for an offence, which, in the
opinion of the Central Government involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Government or a body
corporate owned or controlled by the Government; or
(e) has in the opinion of the Central Government such financial or other interest as
is likely to affect prejudicially the discharge by him of his functions as a member;
or
(f) has such other disqualification as may be prescribed by the Central Government
Selection Committee :( section (1-A))
i.

judge of the supreme court to be nominated by the chief justice of

India - Chairman;

ii.

Secretary of the Legal Affairs in the Government of the IndiaMember;

iii.

Secretary of the Department dealing with Consumer Affairs in the

Government of India - Member;

Jurisdiction of National Commission (section 21)

The National Commission shall have jurisdiction:
(a) Pecuniary limits- where the value of the goods or services and the
compensation, if any, claimed exceeds rupees one crore;

(b) Appellate jurisdiction-to entertain appeals against the orders of any State
Commission. However, under second proviso to Section 19 no appeal by a person,
who is required to pay any amount in terms of an order of the State Commission,
shall be entertained by the National Commission unless the appellant has deposited
in the prescribed manner fifty percent of the amount or rupees thirty-five
thousands, whichever is less; and

(c) Revisional jurisdiction

to call for the records and pass appropriate orders in any consumer dispute which is
pending before, or has been decided by any State Commission where it appears to
the National Commission that such State Commission has exercised a jurisdiction
not vested in it by law, or has failed to exercise a jurisdiction so vested, or has
acted in the exercise of its jurisdiction illegally or with material irregularity.

Failing Complaints before the District Forum and State Commission

Section 12 provides that a complaint, in relation to any goods sold or delivered or

agreed to be sold or delivered or any service provided or agreed to be provided
may be filed with the District Forum by
(a) the consumer to whom such goods are sold or delivered or agreed to be sold or
delivered or such service provided or agreed to be provided;
(b) any recognized consumer association, whether the consumer to whom the
goods sold or delivered or agreed to be sold or delivered or service provided or
agreed to be provided, is a member of such association or not; or
(c) one or more consumers, where there are numerous consumers having the same
interest with the permission of the District Forum, on behalf of, or for the benefit
of, all consumers so interested; or
(d) the Central or the State Government as the case may be, either in its individual
capacity or as a representative of interests of the consumers in general.
Every complaint filed under this section is required to be accompanied with
such amount of fee and payable in such manner as may be prescribed.

On receipt of a complaint, the District Forum may, by order, allow the

complaint to be proceeded with or rejected.

Where a complaint has been admitted by the District Forum, it shall not be
transferred to any other court or tribunal or any authority set up by or under
any other law for the time being in force.

States the procedure to be followed by the District Forum or the State

Commission on receipt of a complaint- Section 13

On receipt of a complaint, a copy of the complaint is to be referred to the opposite

party (or each of the opposite parties, where there are more than one) within
twenty-one days from the date of its admission, directing him to give his version of

the case within a period of 30 days. This period may be extended by another period
of 15 days. If the opposite party admits the allegations contained in the complaint,
the complaint will be decided on the basis of materials on the record. Where the
opposite party denies or disputes the allegations contained in the complaint, or
omits or fails to take any action to represent his case within the stipulated time, the
dispute will be settled in the following manner:

(i) In case of dispute relating to any goods

Where the complaint alleges a defect in the goods which cannot be determined
without proper analysis or test of the goods, a sample of the goods shall be
obtained from the complainant, sealed and authenticated in the prescribed manner,
for referring to the appropriate laboratory for the purpose of any analysis or test
whichever may be necessary, so as to find out whether such goods suffer from any
such defect. The appropriate laboratory would be required to report its finding to
the referring authority, i.e. the District Forum or the State Commission within a
period of forty-five days from the receipt of the reference or within such extended
period as may be granted by these agencies [Section 13(1)(c)].

Section 13 empowers the District Forum/State Commission to require the

complainant to deposit such amount as may be specified, towards payment of fees
to the appropriate laboratory for the purpose of carrying out the necessary analysis
or tests. The amount so deposited shall be remitted to the appropriate laboratory to
enable it to carry out the analysis and send the report. On receipt of the report, a
copy thereof is to be sent by District Forum/State Commission to the opposite
party along with its own remarks. In case any of the parties i.e. opposite party or
the complainant, disputes the correctness of the methods of analysis/test adopted

by the appropriate laboratory, the concerned party will be required to submit his
objections in writing in regard to the report.
After giving both the parties a reasonable opportunity of being heard and to present
their objections, if any, the District Forum/State Commission shall pass appropriate
orders under Section 14 of the
Act.
(ii) In case of dispute relating to goods not requiring testing or analysis or relating
to services Section 13(2) (b) provides that where the opposite party denies or
disputes the allegations contained in the complaint within the time given by the
District/State Commission, the Agency concerned shall dispose of the complaint
on the basis of evidence tendered by the parties. In case of failure by the opposite
party to represent his case within the prescribed time, the complaint shall be
disposed of on the basis of evidence tendered by the complainant.

Limitation Period for Filing of Complaint

Section 24A provides that 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. However, where the
complainant satisfies the Forum/Commission as the case may be, that he had
sufficient cause for not filing the complaint within two years; such complaint may
be entertained by it after recording the reasons for condoning the delay.

Limitation Period for Filing of Complaint

Section 24A provides that 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. However, where the
complainant satisfies the Forum/Commission as the case may be, that he had
sufficient cause for not filing the complaint within two years; such complaint may
be entertained by it after recording the reasons for condoning the delay.

Administrative Control (section 24B)

Section 24B authorizes the National Commission to exercise administrative control

over the State Commissions in the matter of calling for periodical returns regarding
the institution, pendency and disposal of cases, issuance of instructions regarding
adopting of uniform procedure in hearing of matters, serving copies of documents,
translation of judgments etc. and generally overseeing the functioning of the State
Commission/District forum to ensure that the objects and purposes of the Act are
served in the best possible manner.
Similarly, the State Commission has been authorized to exercises administrative
control over the entire District forum within its jurisdiction in all the above
matters.

Powers of the Redressal Agencies

The District Forum, State Commission and the National Commission have been
vested with the powers of a civil court under the Code of Civil Procedure, 1908
while trying a suit in respect of the following matters:
(i) the summoning and enforcing attendance of any defendant or witness and
examining the witness on oath;

(ii) the discovery and production of any document or other material object
producible as evidence;
(iii) the reception of evidence on affidavits;
(iv) the requisitioning of the report of the concerned analysis or test from the
appropriate laboratory or from any other relevant source;
(v) Issuing of any commission for the examination of any witness; and
(vi) any other matter which may be prescribed.
Under the Consumer Protection Rules, 1987, the District Forum, the State
Commission and the National Commission have the power to require any person:
(i) to produce before and allow to be examined by an officer of any of these
agencies, such books of accounts, documents or commodities as may be required
and to keep such book, documents etc. under his custody for the purposes of the
Act;
(ii) to furnish such information this may be required for the purposes of the Act to
any officer so specified.

The District forum, the State Commission and the National Commission have the
power to issue remedial orders to the opposite party directing him to do any one or
more of the things referred to in Section 14(1) (a) to (i) as discussed herein below.

The redressal agencies have also been empowered to dismiss frivolous and
vexatious complaints under Section 26 of the Act and to order the complainant to
make payment of costs, not exceeding Rs. 10,000 to the opposite party.

Nature and Scope of Remedies under the Act

In terms of Section 14(1) of the Act, where the goods complained against suffer
from any of the defects specified in the complaint or any of the allegations
contained in the complaint about the services are proved, the District Forum/State
Commission/National Commission may pass one or more of the following orders:

(a) to remove the defects pointed out by the appropriate laboratory from the goods
in question;
(b) to replace the goods with new goods of similar description this shall be free
from any defect;
(c) to return to the complainant the price, or, as the case may be, the charges paid
by the complainant;
(d) to pay such amount as may be awarded by it as compensation to the consumer
for any loss or injury suffered by the consumer due to the negligence of the
opposite party;
(e) to remove the defects in goods or deficiencies in the services in question;
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to
repeat them;
(g) Not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;
(ha) to cease manufacture of hazardous goods and to desist from offering services
which are hazardous in nature;
(hb) to pay such sum as may be determined by it if it is of the opinion that loss or
injury has been suffered by a large number of consumers who are not identifiable
conveniently:
It is to be noted that the minimum amount of sum so payable shall not be less than
five percent of the value of such defective goods sold or service provided, as the

case may be, to such consumers. Further, the amount so obtained shall be credited
in favor of such person and utilized in such manner as may be prescribed.
(hc) to issue corrective advertisement to neutralize the effect of misleading
advertisement at the cost of the opposite party responsible for issuing such
misleading advertisement;
(i)

to provide for adequate costs to parties.

Appeal
Person aggrieved by an order of the District Forum - appeal to the State
Commission (Section 15).
Person aggrieved by any original order of the State Commission- appeal to
the National Commission (Section 19).
Person aggrieved by any original order of the National Commission- appeal
to the Supreme Court (Section 23)
All appeals are to be made within thirty days from the date of the order.
Appellate orders passed by the State Commission or National Commission
(i.e. on appeal against the orders of the District Forum or State Commission)
cannot be further appealed against though on questions of law revision
petitions may be filed. So also, the revisional orders passed by the State
Commission or the National Commission are not appealable.

Penalties

Section 27 of the Act deals with penalties and provides that failure or omission by
a trader or other person against whom a complaint is made or the complainant to

comply with any order of the District Forum, State Commission or the National
Commission shall be punishable with imprisonment for a term which shall not be
less than one month but which may extend to three years, or with fine of not less
than Rs. 2,000 but which may extend to Rs. 10,000, or with both.

Prepared by
Miss. Mamta
B.A. LL.B (HONS)
Manipal University Jaipur
Contact details- mamtabisht104@gmail.com