You are on page 1of 18

Consumer Protection under the Consumer Protection Act,

1986 (68 of 1986):-


The Consumer Protection Act, 1986 is a milestone in the history of socio-
economic legislation in the country. An act to provide for better protection of the interests
of consumers and for that purpose to make provision for the establishment of consumer
councils and other authorities for the settlement of consumers disputes and for matters
connected therewith. It was enacted after an in-depth study of consumer protection laws
of a number of countries an in consultation with representatives of consumers, trade and
industry and extensive discussions within the government.
The main objective of the act is to provide for the better protection of consumers.
Unlike existing laws which are punitive in nature, the provisions of this act are
compensatory in nature. The act is intended to provide simple, speedy and inexpensive
redressal to the consumers grievances, and reliefs of a specific nature and award of
compensation wherever appropriate to the consumer. The act has been amended in 1993
and 2002 both to extend its coverage and scope and to enhance the powers of the
redressal machinery.
The organization set-up, provided under the Consumer Protection Act, 1986
(Amendment 2002) has two wings – (i) Advisory Bodies (ii) Adjudicatory Bodies.
(i) Advisory Bodies: The Consumer Protection Councils are the advisory bodies
under the Consumer Protection Act and they have been charged with promotional and
protection of the rights of the consumers. They play an important role in giving publicity
to the matters of consumer concern, furthering consumer education and protecting
consumers from unscrupulous exploitation. Consumer Protection Councils comprising of
official and non-official members have been established at the district, state and centre
levels. The councils meet periodically to deal with consumer problems and take
corrective measure for protecting the rights of the consumers.
A) Central Consumer Protection Council: Central government has established a
council known as Central Council by notification, headed by Minister, incharge of
consumer affairs in the Central government as Chairman of the Central Council. The
Central Council is to meet at least once in a year (Sec. 4).

49
B) State Consumer Protection Councils: The state governments have established
councils known as state councils by notification, headed by Minister incharge of
consumer affairs in the state government as chairman of the State Council. The state
councils is to meet atleast twice in a year (Sec. 7).
C) District Consumer Protection Councils: The state government have established
for every district a council known as District Consumer Protection Councils by
notification, headed by the collector of the district as Chairman of the District Council.
The District Council has to meet twice in a year (Sec. 8-A).
The objects of the above said councils are to promote and protect the rights of
consumers such as: 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 service so as to protect the
consumer against unfair trade practice; the right to be assessed, whichever is possible,
access to a variety of goods and services at competitive prices; the right to be head 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 consumers; the right to consumer education.
The preamble of the Consumer Protection Act aims to provide better protection of
the interests of the consumers and for that provisions are made for the establishment of
Consumer Protection Councils in the second chapter of the act. The object of the
Consumer Protection Councils are to protect the rights of the consumers.
(ii) Adjudicatory Bodies: For the protection of consumer a three-tier machinery
consist of district forums, the state commission and the national commission.

50
Constitution of Various Forums under the Consumer Protection Act, 1986
District - One President Term of officer – 5 years or
Forum - Two member up to the age of 65 years
(a) The President is a person who is or has which ever is earlier [Sec.
been qualified to be a district judge; 10(2)]. The salary shall be
(b) A person of eminence in the field of as determined by the
education, trade or commerce; etc. concerned state government
(c) A lady member [Sec. 10(1)] [Sec. 10(3)]
State One President and not less than two members 5 years or upto the age of
Commission and not more than the total number of 67 years whichever is
members prescribed by the state government earlier Sec. 16(3). The
(a) The President shall be one who is or has salary as fixed by
been qualified to be a judge or a sitting / concerned state government
retired judge of High Court; [Sec. 16(2)].
(b) Two members of eminence who fulfill the
qualification prescribed under para 10;
(c) Out of both one should be a lady member
[Sec. 16(1)]
National One President and not less than four members Five years or upto the age
Commission and not more than the total number of of 70 years whichever is
members prescribed by the Central earlier [Sec. 20(3)]. The
government salary as fixed by the
(a) The President shall be one who is or Central Government [Sec.
has been qualified to be a judge of 20(2)].
Supreme Court or a sitting / retired
judge of Supreme Court;
(b) Four members of eminence who fulfill
the qualifications prescribed under
para 10;
(c) Out of (b), one should be a lady
member [Sec. 20(1)].

51
Jurisdiction:-Where to file a complaint?
A complaint can be filed as per following jurisdiction:
Jurisdiction District forum State Commission (Sec. National Commission (Sec.
(Sec. 11) 17) 21)
Pecuniary Upto to Rs. 20 More than Rs. 20 lacs but More than Rs. one crore
lacs least than Rs. 1 crore
Appellate No appellate (a) Appeal against the (a) Appeal against the
jurisdiction orders of district forums orders of the state
(b) In case where the commission
district forum exceeded (b) In case where the state
the jurisdiction or failed to commission exceed the
exercise jurisdiction jurisdiction or failed to
exercised jurisdiction
Residential (a) Where the opposite party (ies) actually and voluntarily reside (s) or
carries on business or has a branch office or personally work(s) for his/their
gain.
(b) In the case of more than one opposite parties, the parties actually or
voluntarily reside or carry on business or has a branch office or personally
works for their gain, provided that in such cases either the permission of
the district forum, state commission, national commission or the opposite
parties who do not reside or carry on business or have a branch office or
personally work for gain acquiensce in such institution.
(c) Where the cause of action arose wholly or in part.

52
Structure of Fee at Different Levels
Sr. Total value of goods or services and the compensation Amount of fee
No. claimed payable
District Forum
1. Upto one lakh rupees – for complainants who are under the Nil
below poverty line holding Antyodaya Anna Yojana
2. Upto one lakh rupees – for complainants other than Rs. 100/-
Antyodaya Anna Yojana card holders.
3. Above one lakh and upto rupees five lacs Rs. 200/-
4. Above five lacs and upto rupees ten lacs Rs. 400/-
5. Above ten lacs and upto rupees twenty lacs Rs. 500/-
State Commission
6. Above twenty lacs an upto rupees fifty lacs Rs. 2000/-
7. Above fifty lacs and upto rupees one crore Rs. 4000/-
National Commission
8. Above rupees one crore Rs. 5000/-

Limitation Period under Consumer Protection Act, 1986


Description of Matter
1. For filling and consumer complaint before Within two years from the date on
district forum / state commission or national which the cause of action has arisen
commission (Sec. 24-A)
2. For referring a copy of the admitted Within twenty one days from the
complaint to the opposite party date of its admission [Sec. 13(a)]
3. For deciding the admissibility of complaint Within twenty one days from the
ordinarily date on which the complaint was
received [Sec. 12(3)]
4. For filing a reply to the complaint filed Within thirty days or such extended
before consumer forum relating to goods period not exceeding fifteen days,
as may be given by the consumer

53
forums. However, grant of
extension is within the role
discretion of the consumer forums
[Sec. 13(1)(a)]
5. For filing a reply to the complaint filed Within thirty days or such extended
before consumer forum relating to services. period not exceeding fifteen days as
may be given by the consumer
forums. However, grant of
extension is within the role
discretion of the consumer forums
[Sec. 13(2)(a)]
6. For preferring an appeal against the order Thirty days from the date of such
passed by district forum before state order (Sec. 15)
commission
7. For preferring an appeal against the order Thirty days from the date of such
passed by state commission before National order (Sec. 19)
Commission
8. For referring the sample to the appropriate Within a period of 45 days of the
laboratory (in the case of defective goods receipt of reference or within such
which cannot be determined without extended period granted [Sec.
analysis) for obtaining the findings of the 13(a)(c)]
test.
9. For deciding complaint expeditiously as Within a period of three months
possible the complaint that: from the date of receipt of notice by
(i) does not require analysis or testing of opposite party [Sec. 13(3)(A)]
commodities. Within a period of five months from
(ii) requires analysis or testing of the date of receipt of notice by
commodities. opposite party [Sec. 13(3)(A)]
10. Final disposal of the appeal Within a period of ninety days from
the date of its admission (Sec. 27)

54
11. An appeal against the order containing the Within a period of thirty days from
award of penalties under Sec. 27 the date of an order passed by
concerned forums (District Forums,
State Commission & National
Commission) (Sec. 27-A)

Procedure to be followed on receipt of complaint relating to services


section 13 of Consumer Protection Act 1986 (Amendment) 2002

Receipt of complaint

Refer to opposite party for his version within a period of 30


days or such extended period not exceeding 15 days

Opposite party

Either denied or Omits or fails to take Ex-parte


disputed the any actions to proceeding
allegations made in represent his case
the complaint

Within the given time by consumer forum

Settlement of dispute on the basis of evidence brought to its


notice by the both parties (relief)

Application of the Act (Section 1): The Consumer Protection Act, 1986 extends to the
whole of India except the state of Jammu and Kashmir as stipulated in section (2) of the
Consumer Protection Act, 1986. By virtue of this clause, the Jammu and Kashmir

55
Government had enacted a separate act called J&K Consumer Protection Act in the year
1987 with almost identical provisions. 70 The applications of the Consumer Protection
Act, 1986 to a consumer dispute that arose in Jammu came up for decision before State
Consumer Commission, Chandigarh in the case of Hindustan Petroleum Corporation vs.
Jammu & Kashmir Bank.71 In the light of the enactment of separate Consumer Protection
Act for the State of Jammu and Kashmir in 1987, while disposing of the case, the said
State Commission ruled that “since there is a separate Jammu and Kashmir Consumer
Protection Act, 1987, and the entire transaction and dispute took place at Srinagar and
Jammu, this commission at Chandigarh has no jurisdiction.” This judgement is likely to
affect the interest of consumers who are residing outside the State of Jammu and
Kashmir.
 Non Application of the Act (Section 1):-The application of the Consumer
Protection Act, 1986 in a case involving prayer for award of compensation in case
Gulab Hotchand Bhachandaney vs. Egypt Airlines & others (Consumer Protection
Reports 1993 (3) Page 385 National Commission). After hearing the National
Commission, ruled that the Indian Consumer Protection Act, 1986 is not
applicable to case involving cause of action arising outside India, in this case, at
‘Barcelona’.
The act applies to “all goods and services” except those which are expressly
excluded by the central government by notification section 1(4).
 Who can be a complainant – Section 2(1)(b): The complainant under the
Consumer Protection Act, 1986 may be,
(i) a consumer; or
(ii) any voluntary consumer organization 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; or
(iv) one or more consumers, where there are numerous consumers having the
same interest;72

70
Gurjeet Singh, “The Law of Consumer Protection in India – Justice with Reach”, Deep & Deep
Publication, 1996.
71
Consumer Protection Reports 1997(2) Pae 228, Chandigarh.
72
Inserted by Act 50 of 1993, Section 2 w.e.f. 18.6.1993.
56
(v) in case of death of a consumer, his legal heir or representative; 73 who or
which makes a complaint.
 Section 2(1)(c):
Complainant74 means any allegation in writing made by a complainant that:
(i) an unfair trade practice or a restrictive trade practice has been adopted by
any trader or service provider;75
(ii) [The goods brought by him or agreed to be bought by him] suffer from
one or more defects;76
(iii) [the service hired or availed of or agreed to be hired or availed of by
him]77 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 price78 –
(a) fixed by or under any law for the time being in force;
(b) displayed on the goods or any package containing such goods;
(c) displayed on the price list exhibited by him by or under any law for the
time being in force;
(d) agreed between the parties.
(v) Goods which will be hazardous to life and safety when used are being
offered for sale to the public79 –
(a) 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;
(b) if the trader could have known with due diligence that the goods so
offered are unsafe to the public.

73
Inserted by Act 62 of 2002, Section 2 w.e.f. 15.3.2003.
74
Inserted by Act 50 of 1993, Section 2 for sub-clause (i) w.e.f. 18.6.1993.
75
Inserted by Act 62 of 2002, Section 2(c) for any trader w.e.f. 15.3.2003.
76
Inserted by Act 50 of 1993, Section 2(c) for the goods mentioned in the complaint w.e.f. 18.6.1993.
77
Subs by Act 50 of 1993, Section 2(c) for “the services mentioned in the complainant” w.e.f. 18.6.93.
78
Subs. by Act 62 of 2002, Section 2(c) for Sub clause (iv) w.e.f. 15.3.2003.
79
Subs. by Act 62 of 2002, Section 2(c) for Sub clause (v) w.e.f. 15.3.2003.
57
(vi) Services which are hazardous or likely to be hazardous to life an 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.80
Who is Consumer – Section 2(1)(d):
All of us are consumers of goods and services. For the purpose of the Consumer
Protection Act, the word “Consumer” has been defined separately for “goods” and
“services”.
Consumer 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, 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 as for any commercial purpose; or
(ii) (hires or avails of)81 any services 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 beneficiary of such services other than the person
who, {hires or avails of} the services for consideration paid or promised, or
partly paid or partly promised, or under any system of deferred payment,
when such services are availed of with the approval of the first mentioned
person82 [but does not include a person who avails of such services for any
commercial purpose].
Explanation: For the purposes of this clause, “commercial purpose” does not include use
by a person of goods bought and used by him and services availed by him exclusively for
the purposes of earning his livelihood by means of self employment.

80
Subs. clause (vi) along with sub-clauses (iv) & (v) Subs. for clause (iv) & (v) by Act 62 of 2002 Section
2 15.3.2002
81
Subs. by Act 50 of 1993, Section 2 for “hires” w.e.f. 18.6.1993.
82
Inst. by Act 62 of 2002, Section 2 w.e.f. 15.3.2003.
58
District Forum: District forum means a consumer disputes redressal forum established
under clause (a) of section 9 of Consumer Protection Act 1986 (Amendment 2002).
What shall Constitute Complaint? Section 2(1)(c):
The complaint shall always be made in writing by specifically making any one or
more of the following allegations stating that:
(i) an unfair trade practice or a restrictive trade practice has been adopted by any
trades or service provider;
(ii) the goods bought or agreed to bought suffered defects;
(iii) the services hired or availed of or agreed to be hired or availed or suffered
from deficiency in any respect;
(iv) a trader or service provider has charged for the goods or for the services
mentioned in the complaint more than the price or in excess of the price;
(a) fixed
(b) displayed on the goods or any package containing the goods;
(c) displayed on the priced list exhibited;
(d) agreed between the parties;
(v) sale of goods hazardous to life an safety to public;
(a) in contravention of standards relating to safety of such goods;
(b) if the trader could have known with due diligence that the goods so
offered are unsafe to the public;
(vi) services hazardous to life and safety of the public when used, offered by
service provider without adopting due diligence and care;
The complaint on the above mentioned grounds has to be made with a view to
obtaining required relief provided under Consumer Protection Act, 1986 (Amendment
2002).
How to File a Complaint?
Procedure for filing complaints and seeking redressal are simple and speedy.
 The complainant or his authorized agent can present the complaint in person.,
every complaint filed under sub-section 12(1) shall be accompanied with such
amount of fee and payable in such manner as may be prescribed, on receipt of a
complaint made under sub-section 12(1), the district forum may, by order, allow

59
the complaint to be proceeded with or rejected, a complaint should contain the
following informations:
(a) the name, description and the address of the complaint;
(b) the name, description and address of the opposite party or parties; as the
case may be, as far as they can be ascertained;
(c) the facts relating to complaint, when and where it arouse;
(d) documents, if any, in support of the allegations contained in the complaint;
(e) the relief which the complaint is seeking.The complaint should be signed
by the complainant or his authorized agent. The complaint should be filed with in
two years from the date on which the cause of action has arisen (Section 24-A).
Procedure on Admission of Complaint (Section 13): (1) The District Forum shall on
admission of a complaint, if it relates to any goods - (a) refer a copy of the admitted
complaint, within twenty-one days from the date of its admission to the opposite party
mentioned in the complaint directing him to give his version of the case within a period
of thirty days or such extended period not exceeding fifteen days as may be granted by
the district forum.(b) where the opposite party on receipt of a complaint referred to him
under clause (a) denies or disputes the allegations contained in the complaint, or omits or
fails to take any action to represent his case within the time given by the district forum,
the district forum shall proceed to settle the consumer disputes in the manner specified in
clauses (c) to (g); (c) Where the complaint alleges a defect in the goods which cannot be
determined without proper analysis or test of the goods, the district forum shall obtain a
sample of the goods from the complainant, seal it and authenticate it in the manner
prescribed and refer the sample so sealed to the appropriate laboratory along with a
direction that such laboratory make an analysis or test, whichever may be necessary, with
a view to finding out whether such goods suffer from any defect alleged in the complaint
or from any other defect and to report its finding thereon to the district form within a
period of forty-five days of the receipt of the reference or within such extended period as
may be granted by the district forum; (d) before any sample of the goods is referred to
any appropriate laboratory under clause (c), the district forum may require the
complainant to deposit to the credit of the forum such as far as may be specified, for
payment to the appropriate laboratory for carrying out the necessary analysis or test in

60
relation to the goods in question; (e) the district forum shall remit the amount deposited
to its credit under clause (d) to the appropriate laboratory to enable it to carry out the
analysis or test mentioned in clause (c) and on receipt of the report from the appropriate
laboratory, the district forum shall forwarded a copy of the report along with such remark
as the district forum may feel appropriate to the opposite party; (f) if any of the parties
disputes the correctness of the finding of the appropriate laboratory, or disputes the
correctness of the methods of analysis or test adopted by the appropriate laboratory, the
district forum shall require the opposite party or the complainant to submit in writing his
objections in regard to the report made by the appropriate laboratory; (g) the district
forum shall thereafter give a reasonable opportunity to the complainant as well as
opposite party of being heard as to the correctness or otherwise of the report made by the
appropriate laboratory and also as to the objection made in relation thereto under clause
(f) and issue an appropriate order under section 14. (2) The district forum shall, if the
(complainants admitted) by it under section 12 relates to goods in respect of which the
procedure specified in sub-section (1) cannot be followed, or if the complaint relates to
any services, (a) refer a copy of such complaint to the opposite party directing him to
give his version of the case within a period of thirty days of such extended period not
exceeding fifteen days as may be granted by the district forum, (b) where the opposite
party, on receipt of a copy of the complaint, referred to him under clause (a) devices or
disputes the allegations contained in the complaint, or omits or fails to take any action to
represent his case within the time given by the district forum, the district forum shall
proceed to settle the consumer dispute – (i) on the basis of evidence brought to its notice
by the complaint and the opposite party, where the opposite party denies or disputes the
allegations contained in the complaint; or (ii) ex-parte on the basis of evidence brought to
its notice by the complainant where the opposite party omits or fails to take any action to
represent his case within time given by the forum; (c) where the complainant fails to
appear on the date of hearing before the district forum, the district forum may either
dismiss the complaint for default or decide it on merit. (3) No proceeding complying with
the procedure laid down in sub-section (1) and (2) shall be called in question in any court
on the ground that the principles of natural justice have not been complied with. (3A) –
Every complaint shall be heard as expeditiously as possible and endeavour shall be made

61
to decide the complaint with in a period of three months from the date of receipt of notice
by opposite party where the complaint does not require analysis or testing of
commodities and with in five months, if it requires analysis of testing of commodities;
Provided that no adjournment shall be ordinarily granted by the district forum unless
sufficient cause is shown and the reasons for grant of adjournment have been recorded in
writing by the forum; Provided further that the district forum shall make such orders as to
the costs occasioned by the adjournment may be provided in the regulations made under
this act; Provided also that in the event of a complaint being disposed of after the period
so specified, the district forum shall record in writing, the reasons for the same at the time
of disposing of the said complaint; (3B) Where during the pendency of any proceeding
before the district forum, it appears to it necessary, it may pass such interim order as is
just and proper in the facts an circumstances of the case.(4) For the purpose of this
section, the district forum shall have the same powers are vested in a civil court under
Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following
matters: (i) the summoning and enforcing the attendance of any defendant or witness an
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.(5) Every
proceeding before the district forum shall be deemed to be a judicial proceeding within
the meaning of section 193 and 228 of the Indian Penal Code (45 of 1860), and the
district forum shall be deemed to be a civil court for the purpose of section 195, and
chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).(6) Where the
complaint is a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of
section 2, the provisions of rule 8 of order I of the first schedule to the Code of Civil
Procedure 1908 (5 of 1908) shall apply subject to the modification that every reference
there in to a suit or decree shall be construed as a reference to a complaint or the order of
the district forum thereon. (7) In the event of death of a complainant who is a consumer or
of the opposite party against whom the complaint has been filed, the provisions of order
XXII of the first scheduled to the Code of Civil Procedure, 1908 (5 of 1908) shall apply

62
subject to the modification that every reference there in to the plaintiff and the defendant
shall be construed as reference to a complainant or the opposite party, as the case may be.
Finding / Relief (Section 14): Depending upon the facts and evidence of the complaint
and the nature of relief sought by the consumer, the redressal forums may give orders for
one or more of the following relief like ,replacement of the goods; removal of defects
from the goods; refund of the price paid; award of compensation for the loss or injury
suffered; removal of defects or deficiencies in the services; discontinuance of unfair
practices or restrictive trade practice or direction not to repeat them; withdrawal of the
hazardous goods from being offered for sale; not to offer the hazardous goods for sale;
award for adequate costs to parties; to cease manufacture of hazardous goods and to
desist from offering services which are hazardous in nature.
Appeal (Section 15):
Any person aggrieved by an order made by the district forum may prefer an
appeal against such order to the state commission with in a period of thirty days from the
date of the order, in such form and manner as may be prescribed; provided that the state
commission may entertain an appeal after the expiry of the said period of thirty days if it
is satisfied that there was sufficient cause for not filing it with in the period; provided
further that no appeal by a person, who is required to pay any amount in terms of an order
of the district forms, shall be entertained by the state commission unless the appellant has
deposited in the prescribed manner fifty per cent of that amount or twenty five thousand
rupees, whichever is less.
Appeal against the order of state commission can be filed before the national
commission with in thirty days; and appeal against the order of the national commission
can be filed before Supreme Court with in a period of thirty days.
Consumer Disputes Redressal Agencies: Establishment of Consumer
Disputes Redressal Agencies (Section 9):
There shall be established for the purpose of this act, the following agencies,
namely: (a) a consumer disputes redressal forum to be known as the ‘District Forum’
established by the state government, in each district of the state by notification:
Provided that the state government may, if it deems fit, establish more than one
district forum in a district; (b)a consumer disputes redressal commission to be known as
63
the ‘State Commission’ established by the state government in the state by notification;
and (c) a national consumer disputes redressal commission established by the central
government by notification to be known as “National Commission”.
Composition of District Forum (Section 10): Each district forum shall consist of: (a) a
person who is, or 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 qualification, namely: (i) be not less than thirty five years of age, (ii) possess
a bachelor’s 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
cant; or (d) has been removed or dismissed from the service of the government or a body
corporate owned and 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 disqualifications as
may be prescribed by the state government; I.A. – Every appointment under sub-section
(1) shall be made by the state government on the recommendation of a selection
committee consisting of the following, namely: (i) President of the State Commission –
Chairman (ii) Secretary, Law Department of the State- Member (iii) Secretary, Incharge
of the Department- Member, dealing with consumer affairs in the state. Provided 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. (2) Every member of the district forum shall hold office for a
term of five year or up to the age of sixty-five years, whichever is earlier: Provided that a
member shall be eligible for re-appointment for another term of five years or up to the
age sixty-five years, whichever is earlier, subject to the condition that he fulfils the
qualifications and other conditions for appointment mentioned in clause (b) of sub-

64
section (1) and such re-appointment is also made on the basis of the recommendation of
the Selection Committee: Provided further that a member may resign his office in writing
under his hand addressed to the state government and on such resignation being accepted,
his office shall become vacant and may be filled by appointment of a person possessing
any of the qualifications mentioned in sub-section (1) in relation to the category of the
member who is required to be appointment under the provisions of sub-section (1A) in
place of the person who has resigned; Provided also that a person appointed as the
President or as a member before the commencement of the Consumer Protection
(Amendment) Act, 2002 shall continue to hold such office as President or member, as the
case may till the completion of his term.(3) The salary or honorarium and other
allowances payable to and the other terms and conditions of service of the members of
the district forum shall be such as may be prescribed by the state government.
Composition of the State Commission (Section 16): (1) Each State Commission shall
consist of: (a) a person who is or has been a judge of a High Court appointed by state
government, who shall be its President: Provided that no appointment under this clause
shall be made except after consultation with the Chief Justice of the High Court; (b) not
less than two and not more than such number of members, as may be prescribed and 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 bachelor’s decree 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 person
having a judicial background.
Composition of the National Commission (Section 20): 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, who shall be its President; Provided that no appointment
under this clause shall be made except after consultation with the Chief Justice and India;
(b) not less than four, and not more than such number of members as may be prescribed
and one of whom shall be a woman, who shall have the following qualification, namely:

65
(i) be not less than thirty-five years of age; (ii) possess a bachelor’s decree 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.
Every member of the national commission shall hold office for a term of five years or up
to the age of seventy years, whichever is earlier.
The National Commission was constituted in the year 1988. Mr. V. Balakrishna
Eradi was the first President of N.C.D.R.C. It is headed by a sitting or retired judge of
Supreme Court of India. The national commission is presently headed by Hon’ble Justice
Ashok Bhan, Former Judge of Supreme Court of India as President and has a members –
Hon’ble Justice K.S. Gupta, Hon’ble Mr. Anupam Das Gupta, Hon’ble Mr. S.K. Naik,
Hon’ble Justice R.C. Jain, Hon’ble Justice R.K. Batra, Hon’ble Justice B.N.P. Singh,
Hon’ble Mrs. Vineeta Rai, Hon’ble Mr. Vinay Kumar and Hon’ble Mr. Suresh Chandra.
Circuit Benches (Section (22-C):
The national commission shall ordinarily function at New Delhi and perform its
functions at such other place as the central government may, in consultation with the
national commission notify in the official gazette, from time to time.
The central government has notified that the national commission shall perform
its functions at the following places other than New Delhi:
1. Ahmedabad
2. Allahabad
3. Bangalore
4. Bhopal
5. Chennai
6. Hyderabad
7. Jodhpur
8. Kolkata
9. Lucknow
10. Nagpur
11. Pune

Vide S.O. 974(E), dated 31st August, 2004, published in the Gazette of India, Extra Pt. II,
Section 3(ii), dated 31st August, 2004.

66

You might also like