Law Group 2 Word Doc

8/14/2019 Law Group 2 Word Doc

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Need for Consumer Protection Act in an era

of free competition where consumer is the

king and therefore king needs protection

MMS-I

Division C

Group-2

CONSUMER PROTECTION ACT1986

Consumer is at the core of business world in the present day economy. Quantity and quality

of goods are produced as per the needs of the consumer. Advancement of any business unit

depends on the satisfaction of the consumer. That product will be in great demand which

gives maximum satisfaction to the consumer and so will be produced on large scale. As a

result, the concerned production unit will develop and earn large profit. Despite the Fact that

Importance of the consumer is widely recognized, he is deprived of his rights and privilege

and is subjected to diverse kinds of exploitation. For instance, exploitation in the form of

short weight and measure poor quality of the product, adulteration, supply of fake goods,

boarding and black marketing of the goods, delivery of goods not on schedule. Not only is

that, even doubtful and false advertisements indulged into by the producers to attract

consumers. With a view to protecting the consumers from such exploitation and making them

aware of their rights, a method of consumer protection has been launched. Need for

protection and satisfaction of the consumer is now being widely recognized across the world.

India has also adopted the concept of consumer protection more seriously and vigorously.


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Meaning of Consumer Protection:

Consumer protection means the protection of the consumers from their exploitation by the

unfair trade practices of the producers/sellers. In fact, providing proper protection of the

fundamental rights and Interests of the consumers, freeing them from exploitation, creating

consumer awareness, consumer providing the right to clean business environment to the

consumers by means of Legal amendments is all that protection means.

Consumer Protection Act In India:

In India, Central and State Governments have passed various legislative enactments regarding

Consumer Protection. Among them, main Acts are:

Drug and Cosmetics Act 1940,

Industries Development and Regulation Act 1951

Indian Standards Institution (Certification Marks) Act 1952

Prevention of Food Adulteration Act 1954

Essential Commodities (Supply) Act 1955

The Trade and Merchandise Marks Act, 1958

Monopolies and Restrictive Trade Practices Act 1969

Packaged Commodities Regulation Order 1975

Standards of Weights and Measures Act 1976

Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act

1980

Standards of Weights and Measures (Enforcement) Act. 1985.

In spite of above Acts Interests of the consumers were not being properly safeguarded. There

are many reasons for it, but main among them are two,

First consumer in general had no knowledge about the authority to whom the complaints

under these acts were to be addressed.


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Second, to seek remedy under these various acts consumer had to take legal action which

generally involved a lot of time and money. Need was therefore felt to enact such a

legislative measure that provided quick and expensive remedy to the aggrieved consumer.

Consequently, to protect properly the interest of the consumers and

to settle quickly their disputes, in December 1986 Consumer Protection Act was passed in

India. It was enforced with effect from April 15, 1987. Last amendment In the Act was made

in. 2009.

Need and Purpose:

The purpose of the Consumer Protection Act is to promote protection of consumers with

respect to

a. Safety, quality, purity, potency, healthfulness, durability, performance, repair ability,

effectiveness, truthfulness, dependability, availability, and cost of any real or personal

property or tangible or intangible goods, services, or credit;

b. Preservation of consumer choice and a competitive market;

c. Price and adequacy of supply of goods and services;

d. Prevention of unfair or deceptive trade practices;

e. Maintenance of truthfulness and fairness in the advertising, promotion and sale by a

producer, distributor, lender, retailer or other supplier of such property goods,

services, and credit;

f. Furnishing of full, accurate, and clear instructions, warnings and other information by

any such supplier concerning such property, goods, services, and credit;

g. Protection of the legal rights and remedies of consumers;

h. Providing of estimates of the cost and benefits of programs and activities established

by Federal Government regulations and legislation.

i. It is the purpose of section 24 of this Act to establish a means for estimating in

advance the consumer cost and benefits of Federal legislation or rules that have

substantial economic impact, and to prevent the adoption of Government programs

whose costs to consumers outweigh their benefits.


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Main Elements/Features of Consumer Protection Act, 1986:

Consumer

A consumer is a person who

One who buys goods for a consideration for personal use

One who obtains goods on hire purchase or lease

One who uses such goods with the permission of buyer of goods

One who buys goods exclusively for purpose of earning his lively hood as self

employment

One who hire/ avails of any services for a consideration

One who uses the services with permission of person who has hired the services

One who obtains the services on deferred payment basis

Examples

1. Passengers travelling by train on payment of the stipulated fare charged for the ticket

are consumers.

2. Subscriber of telephone services is a consumer

3. User of electricity is a consumer

Consumer Protection Act is the most progressive Act of Social welfare and is referred to as

Magna Carta of consumer protection. It is a land mark event in the history of Acts in India.

Goods

Items held for sale in the regular course of business, as in a retail store. Goods means every

kind of movable property other than the actionable claims and money, and includes stocks

and shares, growing crops , grass and things attached to or forming parts of land which are

agreed to be served before sale or under contract of sale.


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ExampleThe helmets which are sold having an ISI mark on it are considered to be goods.

Services

Service means service of any description, which is made available to potential users or

prospective users and includes banking, financing, insurance, transport, processing supply of

electrical or other energy, boarding or lodging or both, house construction, entertainment ,

amusement or the purveying or new or other information. But does not include the rendering

of any service free of charge or under a contract of personal service.

Example - The facility of transportation by rail provided by the railway administration is a

service rendered for consideration.

Features of the Act are as under

1) It applies to all kinds of goods and services.

2) DefectDefect means any fault or imperfection or shortcoming in the quality, quantity ,

purity , potency or standard which is required to be maintained by, or under any law for

the time being in force or under any contract , expressed or implied , or as is claimed by

the trader in any manner whatsoever in relation to any goods. Defects are generally

associated with defective goods. Defect means lack or absence of something essential for

completeness. If seller fails to deliver the goods which he agreed to sell will be treated as

defect.

Eg: Suppose a person buys a can of a drink. If the seal of that can is broken that product is

said to be having a defect.

3) Deficiency Deficiency earns fault, imperfection ,shortcoming or inadequacy in the

quality, standard 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. Deficiency is

generally associated with deficiency in services.

Eg: Non Delivery of consignment containing a persons credit card, air ticket andpassport by a courier service.


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4) Provisions of this Act are in addition to the provisions of any other Act in force in the

country. Thus, this Act does not limit or reduce the scope of any other Act

5) Under this Act, there is a provision for the Centre and State Governments to setup

Consumer Protection Councils composing of both official and non-official members.

6) The objectives of the council are :-

1. to promote the rights and Interests of the consumers

2. to educate and protect them

7) This Act provides for the following rights to the consumer:

1. Right to safety

2. Right to be heard

3. Right to consumer education

4. Right to seek redressal

5. Right to Choose

6. Right to be Informed

8) This Act is based on the principle of compensation wherein fair compensation to the

aggrieved party is provided for. To redress the grievance, there Is provision for three-tier

judicial machinery

1. District level

2. State level and

3. National Level

9) This Act provides affective protection to the consumer from different types of

exploitations, such as defective goods, adulteration, under-weight, excessive price,

unsatisfactory or deficient services and unfair trade practices.

10)This Act redresses in a simple, cheap and dynamic manner the grievance of theconsumer

in limited time.

11)All suppliers of goods and services belonging to private, public and co-operativesectors

come under the purview of this Act.

Rights of a Consumer


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In a free market economy, consumer is sovereign. He has the right to buy or not to buy a

product offered for sale, to expect the product to be safe; to expect the product sale, to be

what it is claimed to be; to be adequately informed about the most salient aspect of the

product. He has a right to receive proper and efficient service and satisfaction. Under section

6 of Consumer Protection Act, consumer has following rights:

(I) Right to Safety:

Consumer has the right to be protected against marketing of such goods and services as are

hazardous to health, life and property. There are several fake, adulterated, inferior, defective,

ineffective and dangerous goods available in market. They are injurious to body and health.

Consumer, therefore ,has the right to safety from all such goods as well as are likely to cause

harm to his body and health, besides causing loss of money.

Here the consumersresponsibility is use the product safely, following all safety instructions

and remaining alert for future warnings.

Example Certain products mentions warning and preventions to be taken into account for

the safety measures. Like a deodorant bottle should have a label which advice to keep the

bottle away from h eat and fire since is it highly flammable and also it says to keep away

from eyes and if in case there is an eye contact with it rinse your eyes immediately cold

water.Here the manufacturer must specify all the factors which are related to the safety of the

consumers.

(II) Right to Choose:

Under this right, consumer can choose any from among the varietyof goods and services

available in the market. One finds in the market goods of different brand, quality, shape,

colour, size, design and price produced by different manufacturers. Under this right, the

consumer must be assured access to variety of goods and services at competitive prices as far

as possible. Misleading or false advertisement, wrong information or in any other way, If any

person (manufacturer, seller) influences his preference, in an unfair or unnecessary manner, it

will be treated as intervention in his right to choose.

Here the consumers responsibility is to choose carefully.

Example: A women went to a market for buying household products in a departmental store.Here for each product there are various substitutes available varying in price, brand and


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composition. Suppose she wants to purchase a body soap. Here the women have a choice of

selecting any of the available choices available in the store.

Here the consumer can enjoy the Right to choose.

(III) Right to be informed:

Consumer has the right to get all necessary information onthe basis of which he may decide

to buy the good or service. He has therefore the right to be informed about the quality,

quantity, purity, potency, standard, price of goods, etc.

Here the consumers responsibility analyze and use information about products wisely

Example: There was a boy who once brought a french fries was attracted due to highlightedwords of Fat Free. So, he started consuming more and more fries of the same brand. After

some period of time he noticed there is a sudden rise in his body weight. He had later found

out that the information regarding the ingredients was actually written in small fonts which

was hardly visible with a naked eye. Actually the main fat composition was printed on the

back side of the food packet.

Here the boy can file a case with a right to be informed under Consumer Protection Act.

The duty of the manufacturer was to clearly mention the exact food ingredients with its

composition with a visible label.

(IV) Right to be heard

Consumer has the right to present before the appropriate forum or authorities all those matters

which effect his interests. This right includes the right to make protest and file complaints.

This right implies that matters of interest to the consumer will receive due consideration at

appropriate forums, so that he is en courage to express his problems, complaints and unjust

treatment meted out to him.

Here the consumers responsibility is to express concern to those who can help.

Any consumer who is un -satisfied by any product and he approaches the manufacturer for

the same. Then here the consumer has the right to be heard.


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Example-If any consumer has purchased an electric iron, but it stopped working within the

warranty period.Here the consumer can use his right to heard by approaching the

manufacturer.

(V) Right to seek redressal:

Consumer has the right to get his claims and complaints settled against the manufacturers and

sellers. This right provides the consumer freedom from unfair trade practice or unscrupulous

exploitation by the trader. Besides, it helps him secure compensation.

Here the consumers responsibility is to make the effort to seek compensation for a wrong.

Example- Any consumer who has issued an complaint to the producer, But the producer does

not address the issue. Here the consumer has the right to approach the district consumer

court for this issue and file an complain against the producer. If any consumer has purchased

an electric iron, but it stopped working within the warranty period. Though the consumer has

approached the manufacturer for the same issue but the manufacturer hadnt taken any heed

to attain his complaint. So, the Consumer can approach the consumer court for this issue.

(VI) Right to Consumer Education:

Under this right, consumer is entitled to get information or educated about those things which

are necessary for him. Such aneducation creates awareness about his rights and he comes to

know when to approach for the redressal of his grievance and exploitation. This helps a

consumer protect himself against fraudulent, deceptive and misleading advertisement and

poor or negligentservices.

Here the consumers responsibility is to learn about the changing nature of products -

consumer education is a lifelong responsibility.

Example Government should make people aware and educate the fact that whatever

product they buy they have a knowledge regarding it. The way to use them, the precautions to

be taken, the dos and donts of it. Suppose a microwave is bought by a person but one

should have the knowledge that certain plastics should not be put in the microwave.

This depicts the Right of consumer education


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Machinery for Redressal of Consumer Grievances:

To provide simple, speedy and inexpensive redressal of consumer grievances, the act

envisages three- tier quasi-judicial machinery at the national, state and district levels.

* National Consumer Disputes Redressal Commission - known as 'National Commission'.

* Consumer Disputes Redressal Commissions known as 'State Commission.

* Consumer Disputes Redressal Forums- known as 'District Forum.

(I) The District Consumer Protection Council:

The State Government shall establish for every district, by notification a council to be known

as the District Consumer Protection Council with effect from such date as it may specify in

such notification.Composition of the district forum:

Each District Forum shall consist of -

A person who is, or who has been or is qualified to be, a District Judge, who shall be

its President

There will be 2 other members who shall be persons of ability, integrity and standing

and has adequate knowledge or experience or have shown capacity in

dealing with problems rebating to economics, law, commerce, accounting, industry,

public affairs or administration, one of whom shall be a women.

Every appointment shall be made by the State Government on the recommendation

of Selection Committee consisting of the following namely:

The President of the State Commission- Chairman, Secretary, Law Department of the

State- Member, Secretary in charge, of the Department dealing with Consumer affairs

in the State- Member.

Jurisdiction of the district forum:

(1) Subject to other provisions of this Act, the 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.


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(2) A complaint shall be instituted in a District Forum within the local 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

- (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 District Forum is given, or the opposite parties who do not reside, or carry on business

or have a branch office, or personally works for gain, as the case may be, acquiesce in such

institution

- (c) The cause of action, wholly or in part arises

(II) The State Commission:

Regarding State Commission, following provision have been made In Consumer Protection

Act 1986.Establishment: In every state, the state government, by issuing a notification can

establish consumer Grievance Redressal Commission to be called State Commission

Composition: Each State Commission shall consist of:

A person (member) who is or has been a judge of a High Court, appointed by the State

Government, who shall be its President. But his appointment shall be made only after

consultation with the Chief Justice of the High Court.

There will be 2 other members who shall be persons of ability, integrity and standing and

have adequate knowledge or experience or have shown capacity in dealing with problems

relating to economics, law, commerce, accounting, industry, public affairs or administration,

one of whom shall be a women.

Everyappointment shall be made by the State Government on the recommendation of the

selection committee. The Selection committee shall be composed of:

President of the State CommissionChairman


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Secretary of the Law Department of the StateMember

Secretary in charge of the Department dealing with Consumer Affairs In the State

Member

Jurisdiction of State Commission:

Subject to the other provision of this Act, the State Commission shall have Jurisdiction:

(a) to entertain:

(i) Complaints where the value of the goods or services and

compensation, if any claimed exceeds rupees 20lakhs but does not

exceed rupees one crore.

(ii) appeals against the orders of any District Forum within the State

(b) 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, where It appears to the State Government that

such District Forum has exercised a jurisdiction not vested In it by law or

has failed to exercise a Jurisdiction so vested or has acted in exercise on

its jurisdiction illegally or with material irregularity.

III. The National Commission:

Following are the provisions of the Consumer Protection Act in respect of the National

Commission:

Establishment: By issuing a notification Central Government can set up a National

Commission. This Commission has been established at New Delhi.

Composition: The National Commission shall compose of:

A person (member) who is or has been a judge of the Supreme Court shall be appointed by

the Central Government. He shall be its President. Provided that no appointment under this

clause shall be made except after consultation with the Chief justice of India.


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There shall be 4 other members including one woman. They shall be persons of ability

integrity, experience of, or have shown capacity in dealing with problems relating to

economics, law, commerce, accountancy, industry, public affairs or Administration. Every

appointment shall be made by the Central Government on the recommendation of a Selection

Committee consisting of the following namely:

-A person who is a judge of the Supreme Court, to be nominated by the Chief

Justice shall be its Chairman.

-The secretary Department of Legal Affairs In the government of India shall be a

member.

-Secretary of the Department dealing with consumer affairs in the government of

India shall be its other members.

Jurisdiction of the National Commission:

Subject to the other provisions of this Act, the National Commission shall have Jurisdiction

as under

to entertain complaints where the value of the goodsor services and compensation, if any,

claimed exceeds rupees 1crore.

to entertain appeals against the orders of any State Commission;

to call for the records and pass appropriate orders In any consumer dispute whichis 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.

Statistical data:

Sl. No. 1. 2. 3. TOTAL


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Name of Agency National

Commission

State

Commissions

District Fora

Cases filed since

inception

69465 541478 2992338 3603281

Cases disposed of

since inception

60504 440613 2736379 3237496

Cases Pending 8961 100865 255959 365785

% of total Disposal 87.10 81.37 91.45 89.85

SCOPE AND EXTENT OF THE ACT:

1. Except Jammu and Kashmir state, this Act extends to whole of India.

2. Provisions of this Act are In addition to the provisions made previously in the context of

the consumers.

3. This Act shall apply to all goods and services that come under the scope of this Act

Amendments to the Act

Though the overall disposal rate and the performance of the Consumer Fora is considered to

be impressive, still, the delay in disposal of cases by the redressal agencies at the District,


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State and National level including the level of pendency has been a cause of major concern

for the Government. Therefore, the Government made comprehensive proposals to further

amend the Act and brought the Consumer Protection (Amendment) Act, 2002 (62 of 2002).

The amended provisions of the Act were brought into force from 15.3.2003. The provisions

of the Amendment Act were mainly aimed at facilitating quicker disposal of complaints,

enhancing the capability of redressal agencies, strengthening them with more powers,

streamlining the procedures and widening the scope of the Act to make it more functional and

effective and also to strengthen Consumer Movement at the grass root level. The amended

provisions empower the Senior most member to preside over the Bench in case the President

is absent due to any reason so that the Forum functions uninterruptedly. Further, Presidents of

the National Commission & the State Commissions have been empowered to constitute

Benches with one or more Members for their effective functioning. As a sequel to the

amendment in the Act, Consumer Protection Rules were amended, new provisions introduced

wherever it was considered necessary. Similarly, the Consumer Protection Regulations, 2005

was notified by the NCDRC after getting the approval of the Central Government to

supplement the Rules in order to provide a uniform procedure for day to day functioning of

the Consumer Fora. The Consumer Protection Act was amended in the years 1991, 1993 and

2002 and proposals to further amend the Act are under consideration. The Consumer

Protection Act has been amended thrice during the years 1991, 1993 and in 2002. Further

amendments to the Consumer Protection Act, 1986 are presently under consideration. These

amendments are aimed at:

(a) Widening the scope and amplifying the provisions of the Act,

(b) Facilitating quicker disposal of complaints and

(c) Rationalizing the qualifications and procedure of selection of President and Members of

the Consumer For a

Monitoring Performance

The Department of Consumer Affairs and the National Commission have been periodically

monitoring the functioning of the Consumer Fora and repeatedly impressing upon the

Consumer Fora to dispose of the complaints within the prescribed time limits provided under

the Act. For this purpose, States were advised to have more Benches in their State


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Commissions and also to hold Circuit Benches and to set up additional District Fora,

wherever necessary.

Under section 24B of the Consumer Protection Act, 1986, National Commission has

administrative control over all the State Commissions in the following matters, namely:

Calling for periodical returns regarding the institution, disposal pendency of cases;

Issuance of instructions regarding adoption of uniform procedure in the hearing of

matters, prior service of copies of documents produced by one party to the opposite

parties, furnishing of English translation of judgments written in any language, speedy

grant of copies of documents;

Generally overseeing the functioning of the State Commissions or the District Fora to

ensure that the objects and purposes of the Act are best served without, in any way,

interfering with their quasi-judicial freedom.

Complain addressal:

Type of complaints that may be lodged

An unfair trade practice or a restrictive trade practice has been adopted by any trader

Goods bought by consumer or agreed to be bought by him suffer from one or more

defects

Services hired or availed of or agreed to be hired or availed of by him suffer from

deficiency in any respect

Trader has charged for the goods mentioned in the complaint a price in excess of theprice fixed by or under any law for the time being in forced or displayed on the goods

or any package containing such goods

Goods which will be hazardous to life and safety when used are being offered for sale

to the public in contravention of the provisions of any law for the time being in force

requiring traders to display information in regard to the contents, manner and effect of

use of such goods.


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The Process to file a complaint

There is no fee of filing complaint. The complainant or his authorized agent can present the

complaint in person. The complaint can also be sent by post to the appropriate

Forum/Commission. The complaint should be addressed to the president of the

Forum/Commission. The complaint should contain: name, description and address of

opposite party or parties, the facts related to the complaint and when and where it arose and

any other documents if necessary. Minimum four copies of the complaint should be filed.

Process of how a complaint is filed and its further procedures

Consumer decides to file acomplain

Collect Necessary

Documentation

Send a Notice to the CompanyGet Legal

Representation


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Decide To File

The most common emotions when you have been duped, ignored, insulted or cheated by a

company from whom you bought a product is that of helplessness, anger or revenge.The

court fully understands these emotions. However, a word of caution that decision to go to

consumer court is one that should be taken without emotion, rationally.

Collect Necessary Documentation

Prepare Your ComplaintFile your Complaint

Attend the Admission Hearing

Attend Subsequent Hearings till the

Verdict

After the Verdict


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Before a consumer complaint can be filed against a company, you need to ensure that you

have all the supporting documentation that you need. These may include the following

documents related to the purchase of the product from the company:

An invoice or bill for the purchase (Preferably with an invoice number and Tax ID of

the company)

Warranty card for products and SLA for services (This is optional)

Proof of payment such as copy of the cheque or credit card statement (This is

optional)

Any other communication or record from the company that can show negligence,

insensitivity or lack of attention from the company (Telephone call logs made to the company

with long wait times, letters from company expressing uncaring attitude etc.)

The registered address of the company. You should be able to find this either in the above

documentation, website of the company or from third party sources such as directories.

Consumerdaddy itself has a large database of registered addresses of companies that you can

search and find from our home page

In case you cannot get a copy of the bill then too there is an option. Most of the billed

purchases are entered into the ledger and accounting books of the company. So when you

reach a court, you may be able to retrieve the purchase information from the company's

accounting system merely by quoting the serial number of the product that you purchased or

even an approximate purchase date.

Send a Notice to the Company

In this step, you will be required to "officially" notify the company of your grievance. Be

detailed about what it is that you are complaining about and what you expect the company to

do. Be fair in your demands to the company. For example, if a product you purchased for

Rs.10000/- is broken due to no fault of yours, ask to either replace the product or refund


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Rs.10000/- + a small additional sum for any inconveniences caused; do not place

unreasonable demands for Rs.50000/- or so :. You are also entitled to ask for interest on any

amount paid, if you think you are eligible for it.

Also, when it comes to making demands, be sure to give the company more than one option.

For example, company policy might prevent them from giving you a full refund, but they

may be open to giving you a replacement product that is superior to the one you purchased. In

other words, the more options you give the company, the better your chances are to get your

grievance addressed without going to court

Your notice can be printed in English on a regular A4 size page, signed by you and sent by

post to the registered address of the company. Be sure to use either registered post with

acknowledgement due or speed post with tracking feature. This is important as you will need

legal proof that the company has received your notice.

In your notice, you will need to also give the company some time to redress your grievance.

This time should be specified as after the receipt of the notice. Again, be fair when providing

time to the company. Anywhere between 15 to 45 days should be adequate depending on the

gravity of the matter.

You should also be sure to mention, in a non-threatening manner, your intention to pursue the

matter legally should the company fail to address your problem in the given time.

Get Legal Representation

One should hire a legal adviser or should fight his case by himself following all the legal

procedures.

Prepare Your Complaint

Questions that arises while preparing the complaint

How much time do I have?

According to the Indian Consumer Protection Act of 1986, clause 24A(i) a consumer courtshall not admit a complaint unless it is filed within two years from the date on which the


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cause of action has arisen'. Interestingly it mentions only the date on which the 'cause of

action' has arisen and not the date of purchase of the product from the company. So this can

lead to the disputed interpretation that you need to file the complaint within two years from

the time the customer has got the grievance, i.e., the time the customer started to be

unsatisfied with the product of the company.

What format should I use to prepare a complaint?

You will need to prepare a complaint and an affidavit. You need not file the complaint in a

stamp paper. It can be filed in a regular legal size sheet or as suggested by your advocate.

Which court should I file the complaint in?

Depending on convenience, you can file the complaint in the area you purchased the product

from or the area the company did the action to grievance you or any area where the company

does business in. Depending on the amount of compensation you claim, you must file the

complaint at appropriate courts.

File your Complaint

There are several actions involved in this step as listed below:

Along with your complaint and the affidavit, attach a list of documents you are submitting as

part of the complaint file. You will need to attach copies of the evidentiary documents.

Ensure that you attach only photocopies of the evidentiary documents and not the original.

You may also need to sign and attach a Vakalatnama, which is similar to a power of attorney

authorizing your lawyer to represent you in court on this case, should you decide to hire a

lawyer.


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You will need to approach a Notary and get your complaint file and the affidavit notarized.

The Notary who, unless known to you, will require you to show a proof of identification such

as your driver's license, PAN card, passport, ration card or election ID. You will then need to

the sign the complaint and the affidavit in front of the Notary after which he/she will notarize

the document with his/her Notary seal and signature. Notarization is a process by which the

consumer court can ascertain that you are the person you claim you are and that you have

actually signed the complaint.

You will then be required to make a specific number of copies of the complaint. In most

cases, you will need to make a total of five copies including three for the court, one for the

court to send to the company and one for yourself. We recommend that you visit the court in

which you intent to file the complaint and find out exactly how many copies are needed.

The next action is preparing the court fee payment. Most courts accept Demand Drafts (DD)

through a Nationalized Bank duly crossed, drawn in favor of the person as shown in the table

as the mode of payment. The recent fee structure is also shown in the following table. We

HIGHLY recommend that you visit the court to validate these amounts and to verify the

mode of payment.

The last and the most tedious action in this step is to go to the court, locate the receivingclerk, deposit your complaint file and make the court fee payment. Be sure to obtain a receipt

of the payment. At this time, the clerk will also give the date a judge will first hear your case

(admission hearing) and a complaint reference number.

The court will then send the complaint to the company and ask them to respond to the

complaint within 30 days and also to attend the admission hearing.

Attend the Admission Hearing

Do not miss the admission hearing or the subsequent hearings as if you are absent, your case

will be decided in your absence (ex-parte) based on its merits. This is highly risky as the

judge may fail to read some relevant portions of your complaint, or may misunderstand

certain others. Remember that companies have vast resources, so it is very likely that the

lawyer of the company will attend the hearing. Without you there to explain, clarify and


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express your grievance in person, it is very likely that the verdict will be in favor of the

company.

On the date of the admission hearing, or any court hearing for that matter, plan to spend the

full day patiently in court, as it is HIGHLY UNPREDICTABLE as to when during the day

your case will be called for hearing. Even a 5 minute rest room visit may cost you the hearing

if you are waiting alone to be called into the court room. When attending the admission

hearing, ensure that you have a copy of your complaint and all the originals of the evidentiary

documents.

When called to the court room, ensure that you are earnest in your appearance and polite,

respectful, and stern in your tone of voice. If you have not hired a lawyer, when asked be sure

to make that clear to the judge. Remember that a judge's job is highly monotonous as they

listen to hundreds of people in a day, day after day. Their attention span is very short and

their patience is very low. So if you expected a pleasant smiling judge, who will give you all

the time in the world, change your expectations.

Typically, your judge will review the case file and use one or both of the following two ways

to gain clarity into your case:

Narrative: Judges using these ways will ask you to give an explanation of the problem and

what solution you seek. Be sure to explain the case in a short concise manner as you have

described in your complaint. Ensure that you do not contradict anything you have written in

your complaint.

Probing: Judges using these ways will ask you short questions to clarify the merits of your

case. Be short and precise in your answers. Again, be certain not to contradict yourself or

your complaint.

The judge may also ask you for additional evidence or for the originals of the documents if

there are any disputes regarding the authenticity of the documents. If this is the case, ensure

that the documents are handed over only to court officials and not to any company official,

including the company lawyer.

If your case has the merit, it will be admitted. If so, you will be given the date of the next

hearing. Remember, the sole purpose of the admission hearing is to decide if you have a case

or not. The actual arguments or counter arguments will all happen in the subsequent hearings.


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Attend Subsequent Hearings till the Verdict

This shall depend on the complexity of your case, and the number of times the judge decides

to postpone or conduct hearings. Typically it could be anywhere from one to seven hearings

before which your case is disposed. Be sure to attend each hearing to avoid an ex-parte

verdict.

The consumer court will finally reach a verdict on your case and send you and the company

the court order. If the verdict is in your favor, you may be eligible for a refund, and the

company may also have to pay for punitive damages that include compensating you for any

mental agony, insult, inconvenience, or damage you may have suffered. In many cases, the

court will also direct the company to pay for your legal and court expenses.

After the Verdict

Most lawyers will tell you that your actual legal battle with a company starts only after you

obtain a verdict from a consumer court. Consumer court system in our country has no

stalwart statutory powers to enforce their verdicts on any company. If the company does not

follow the verdict of the consumer court, and neither does it file appeal within 30 days, to get

a company to abide by the verdict of a consumer forum, you will have to file another

proceeding to "execute the verdict" in the consumer court. Put simply, after you get a verdict

from a consumer court, you will have to approach it again to issue a judgment to the company

to follow the verdict of the consumer court or to face other civil and criminal penalties

including attachment of properties or arrest.

Government initiatives:

An enlightened consumer is an empowered consumer. An aware consumer not only protects

himself from exploitation but induces efficiency, transparency and accountability in the entire

manufacturing and services sector. Realizing the importance of consumer awareness,

Government has accorded top priority to Consumer Education, Consumer Protection and

Consumer Awareness.


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The slogan Jago Grahak Jago has now become a household name as a result of publicity

campaign undertaken in the last 3 years. Through the increased thrust on consumer awareness

in the XI Five Year Plan, the Government has endeavoured to inform the common man of his

rights as a consumer. As part of the consumer awareness scheme, the rural and remote areas

have been given top priority. In a big country like India, given the scenario of economic

disparity and level of education and ignorance, educating the consumers remains a gigantic

task. Government has taken up number of activities and schemes in creating consumer

awareness in the country as part of this Consumer Awareness Scheme.

Planning Commission has time and again stressed on the need to undertake evaluation and

monitoring studies on the publicity campaign undertaken by the Department. To ensure

meeting this objective various steps have been taken as underlined.

a) Monitoring by the Multi-Media Committee - Regular meetings of the Multi-Media

Committee are organised, which analysis the various proposals relating to consumer

awareness. The Committee has representation of Ministry of Information and Broadcasting,

DAVP, Doordarshan, All India Radio and VCOs to suggest the various mechanisms for

undertaking publicity campaign for consumer awareness.

b) Feedback from NCH - Suitable note is kept of the feed-back that is received through

National Consumer Helpline and suitable adjustments are made in the publicity plan keeping

in view the same.

c) Findings of IIMC Survey - A comprehensive IIMC survey was undertaken that covered

12 States and 144 districts in the country. The survey has come out with an encouraging

picture regarding the impact of the publicity campaign carried out by Department of

Consumer Affairs. The survey brought out the fact that electronic media emerged as a

preferred source of information by respondents both in the urban and rural areas. The survey

has brought out that about 62.56% respondents from both rural and urban areas were found to

be aware of the publicity campaign run by the Department. Findings of the IIMC survey have

been duly considered and incorporated while finalising the Media Plan for undertaking

consumer.

d) Concurrent Evaluation of the Plan Scheme - To assess the effectiveness of the campaign,

a concurrent evaluation has also been undertaken. Under this evaluation questionnaires were

sent to more than 12,000 persons on various aspects of the Jago Grahak Jago campaign. The

survey had brought out that more than 73% respondents had confirmed the efficacy and

effectiveness of Jago Grahak Jago campaign. More than half the respondents confirmed that

they had started checking in various provisions relating to Weights & Measures, MRP,


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receipts for purchase etc on account of the message received through this campaign.

Advertisements have been released through DAVP in national dailies as well as regional

newspapers in local languages in accordance with the new advertisement policy of the

DAVP. Each advertisement has been released through a network of more than 400

newspapers throughout the length and breadth of the country.

The Department has got produced video spots of 30 seconds duration on various consumer

related issues such as Short Measurement of petrol, Grievance Redressal system, MRP, ISI

and Hall-Mark, Financial Literacy, Medicines, Travel Services, Education, Consumer

Protection Act, Agmark, Food Adulteration, Food Safety etc.which are being telecast through

Doordarshan and Satellite channels

The Department in consultation with Department of Post has disseminated consumer

awareness messages through Meghdoot Post cards to reach far-flung rural areas including

North East States.

The Department has entered into a tie with Department of Post under which posters carrying

messages pertaining to consumer awareness have been displayed in 1.55 lakh Post Offices in

the country. The Department also used the vast network of Post Offices in the country

through display of posters carrying messages on consumer awareness through the network of

more than 25,000 urban post offices.

The Department has printed a folder entitled Jago Grahak Jago containing the salient

features of Consumer Protection Act 1986, provisions of Weights and Measures Act,

information about standardisation such as ISI, Hallmarking, Education Services etc. for

distribution during various events such as IITF, Nukkad Nataks and also through the State

Governments at grass root level. The publicity material relating to consumer awareness has

also been translated in regional languages and is being disseminated to various State

Governments.

In order to reach maximum number of consumers, the Department has telecast video spots

containing consumer related information during the popular sports events particularly the

Cricket Series where the audience interest in maximum.

The youngsters are using the internet in a big way for various purposes and also happen to be

major consumers. Realizing this, a major initiative is being taken to spread consumer

awareness through the internet medium.

The Department of Consumer Affairs provided publicity material such as posters, audio,

video, folders, calendars, and magazines etc. to the State Governments/ UTs for distribution

through panchayats in the rural areas.


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Grant-in-Aid has been given to the States/UTs for carrying out consumer awareness activities

in the local media using the local language and emphasis has been made on involving

Panchayati Raj institutions in the consumer awareness campaign.


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Consumer Guidance Society of India (CGSI)

CGSIs involvement in consumer education is concentrated in rural areas on the outskirts of

Mumbai and among the urban poor. CGSI first started its rural project in 1997 and by 1999,

its work extended to people from 112 villages. The following are CGSIs achievement in

consumer education:

Over 32,000 people received consumer education in two years, through talks,

demonstrations and exhibitions.

107 training programmes were organized and 5,700 potential activists were given

special training in consumer activism. This resulted in many local consumer groups in

remote villages, set up by the consumers themselves.

Due to its efforts, the Maharashtra Education Board introduced consumer education at

the 9th standard level, progressively covering students from 4 th standard upwards.

Consumer education is also introduced in colleges.

Consumer education is also promoted through its monthly magazine. Keemat and

consumer guides published by CGSI. It has also printed 85,000 illustrated brochures

in English, Hindi, and Marathi for free distribution.

Currently conducting a Training for Trainers Programme for rural organisations in

Maharashtra.

Provides training for school and college students in consumer education.

Conducts training programme for the urban and rural low income consumers using

creative methods such as games and street plays. The combination of amusement and

instruction as a medium of education often produce astounding success. Among the

topics discussed are:

Rights and responsibilities of consumers

Food adulteration with simple household tests for detecting common

adulterants

Family Budget

Weights and measures how the consumer may be tricked by being given

short weight and measure


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Drugs and cosmetics

Importance of breast feeding and the dangers of bottle feeding

Misleading advertisement

Protection of the Environment

Rights of Ration Card Holders

Complaints Rederessal and the Consumer Protection Act 1986

COMPLAINT REDRESSAL

CGSI handles consumer complaints and offers legal guidance to those wishing to file suits in

the Consumer Court. In case where there are a number of complaint against a particular party,

both sides are brought together to resolve the issue. The CGSI'S Complaints Committee

meets twice a week. Many thousands of grievances have been handled over the years, with

70% success in favour of the complaints cover medical/surgical malpractice and negligence;

insurance non-payment; sub-standard drugs and medicines; home remedies; defective

household appliances; poor quality foods and drinks; misleading advertising claims; and

grievances concerning investments, real estate, insurance, telephones, electricity supply, etc.

Following are some some of the landmarks achieved by CGSI :

1. CGSI is the earliest consumer organisation in India, founded in 1966.

2. CGSI was the first to demand a Consumer Protection Act with Consumer Cours to

implement it. This become a reality in 1986.

3. To date, 70% of the thousands of complaints referred to CGSI have been redressed.

4. CGSI established formal Product Testing in India.

5. CGSI was the first to publish a monthly magazine "Keemat" carrying information of

importance to consumer.

6. CGSI promotes consumer education; initiates training projects in rural areas; Promotes

publicity drives; represents consumer intrests with Government and other bodies.

7. CGSI received the National Award for consumer Protection in 1991.8. CGSI is the only Indian consumer organisationto be a council member of Consumer


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International for 25 years.

9. CGSI is a member of the Maharashtra State Consumer Protection Counsil.

10. CGSI participates in a larg number of technical commitees and government decision-

making bodies.

CASE STUDY OF CGSI

Traditionally, patients in India have unquestioning trust in their doctors. Most doctors deserve

it. But in some cases, medical negligence has resulted in severe harm physical, mental and

financial . In addition, Unqualified practitioners have brought suffering to gullible patients.

Doctors have been liable to prosecution in civil court, but few malpractice victims sue for

compensation, fearing years (even decades) of costly litigation. Fortunately, in 1995 the

Supreme Court decreed the medical profession to be a "service" under the Consumer

Protection Act, 1986.It set aside a writ Petition challenging the same by the Indian medical

Association.

WHAT IS MEDICAL NEGLIGENCE?

Medical negligence is defined as a failure to exercise reasonable skill and care in diagnosis

and treatment as per the prevalent standards as that particular point of time. An aggrieved

patient who believes that he is a victim of medical negligence can now approach the

Consumer Courts for fair compensation, and expect results in a relatively shorter period of

two to three years. The procedure is comparatively simple and inexpensive.

THE PATIENT'S RIGHTS

In the interest of a healthy doctorpatient relationship, A patient should Know his rights as a

consumer:

1. You have a right to be told all the facts about your illness; to have your medical records

explained to you; and to be made aware of risks and side effects, if any, of the treatment

prescribed for you do not hesitate to question your doctor about any of these aspects.

2. When you are being given a physical examination, you have a right to be handled with

consideration and due regard for your modesty.

3. You have a right to know your doctor's qualifications. If you cannot evaluate them

yourself, do not hesitate to ask someone who can.


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4. You have a right to complete confidentiality regarding your illness.

5. If you are doubtful about the treatment prescribed and especially an operation suggested,

you have a right to get a second opinion from any specialist.

6. You have a right to be told in advance what an operation is for and the possible risks

invoved. If this is not possible because of your being unconscious or for some other reasons,

your nearest relatives must be told before they consent to the operation.

7. If you are to be discharged or moved to another hospital, you have a right to be informed in

advance and to make your own choice of hospital of nursing home, in consultation with the

doctor.

8. You have a right to get your case papers upon request.

A PATIENT'S PRECAUTIONS UNDERGOING OR PLANNING MEDICAL

TREATMENT

1. Make sure you have told all relevant facts to the doctor before deciding any treatment.

2. Unless it is a life threatening emergency, the final decision about the treatment should be

taken after proper deliberation and/or second opinion.

3. Please seek clarification for all the doubts regarding diagnosis/treatment/investigation.

4. Discuss with your doctor the cost of the treatment. Please make sure the cost includes

possible complications.

5. During the treatment, If you are not satisfied with any aspect and/or have doubts, seek

clarification from the doctor.

6. Keep all receipts/prescriptions/reports/discharge cards safely and keep extra photo copies.

7. After treatment clarify all doubts regarding bills/payments etc before discharge.

8. Involve your family physician in the discussion with the specialist doctor.

9. In case of a deth during the treatment, if you are not satisfied with the cause of death,

demand a post mortem examination and get copies of the entire Indoor Case Record. This is

the right of every patient/legal heir.

10. It is necessary and correct to discuss with the concerned doctor all the doubts before

resorting to any legal action. Many of the complications/delays/mishaps in any medical

treatment can be genuine.

11. In case you require expert medical advice regarding the legitimacy of your complaint

about medical malpractice or deficiency in service you may approch the Association for

Consumer Action on Safety and Health (ACASH) or any similar organisation.


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CPA AND MEDICAL NEGLIGENCE

The Consumer protection Act 1986 (CPA) is a unique legislation which provides for speedy

and economical redressal in a simple manner. It has been held in a number of cases under

CPA that instances of medical negligence are covered by CPA. Given below is a brief of the

provisions under CPA.

Those unfortunate enough to experience gross malpractice may approach (in writing or in

person) the District Consumer Disputes Redressal Forum when the compensation claims

amount to less than Rs.5 Lakhs. Claims between Rs.5 Lakhs and Rs.20 Lakhs may be taken

to the State Consumer Dispute Commission. Claims above Rs.20 Lakhs may be placed before

the National Consumer Disputes Redressal Commission. The addresses of the above bodies

may be obtained from your local consumer organisation. All complaints must be endored by

the written opinion of two expert specialists in the medical field.

Consumer Education for schools and colleges

CGSI's Education Committee members had been working with other likeminded

educationists to formally introduce Consumer Education in the school curriculum. In 1994,

the Maharashtra Education Board introduced Consumer Education at the 9th Standard Level,

progressively covering students from the 4th Standard upwards. The subjects taught are the

Consumer Moment, Rights & Responsibilities of Consumers, the Consumer in the Market

Place, Food Adulteration, Weights and Measures, the Environment, etc. This topics included

under existing subjects like Civics, Economics and Home science, are project-based and more

practical in nature then theoretical or examination-oriented.


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Questionnaire

Q1. What are the various ways consumers are exploited?

Ans) As a customer is king in todays world, margins are getting thinner every passing day

due to competition. Further, the inflationary times have made requirement for money more

than it was ever before.

Therefore, in order to keep afloat their businesses, a few unscrupulous vendors always find

ways and about of making quick profits.

Few unfair trade practices have been enlisted in the erstwhile MRTP Act. The Supreme Court

and NCDRC have also given commentaries on several occasions on the subject.

The ways consumers are exploited in India are known to all. However, some of them inter

alia are:

1) Overcharging

2) Defective goods and services3) No or poor after sale service

4) False promises

5) Breach of sale contracts

6) Cartelism and unhealthy monopolistic practices

7) Unhealthy persuasion etc.

Q2. What is the main motive behind overcharging of goods by producers?

Ans) In my opinion, overcharging seldom pays as goodwill is the most valued asset of any

enterprise. However, the motives behind overcharging, though may vary from person to

person, by large are inspired from the greed of the unscrupulous seller or the trade monopoly/commendable position of the powerful businessman. At times it may also result out of the

market forces, but that shouldn't fall under the definition of 'overcharging'.

The main motive, in my opinion, is to make quick profits and climb the fortune ranking table.

Q3. What are the steps by which a consumer can recognise overcharged products?

Ans) A consumer must have or try to have a reasonable due diligence before buying a

product or availing services. As we say in law, caveat emptor or buyer bewares. To recognize

over charged products, consumer groups or singleton consumers also for that matter can

compare prices of similar products/ valuate the ideal price considering various costs and add

a reasonable profit margin for each level of the supply chain to try to arrive at a just price,

one may also check with other active forums.

Q4. What can a consumer do legally to seek redressal against a producer who has

overcharged the goods?'

Ans) first and foremost, no one forces a customer to buy an overcharged product of a

producer, so first of all one mustnt buy. However, one may. Approach a consumer forum or

the consumer disputes commission at the centre or the state as the case may be to contest

overcharging if the same is causing damage to himself/ herself or the society at large and it is

established that overcharging is being practiced. Nowadays, one may also approach the CCI(competition commission of India).


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5). "Profit is the main motive behind overcharging the goods" Justify?

Ans) The question justifies itself.

Q6 "The consumer protection act, 1986 has provided sufficient privileges to the consumers

for protection against overcharging producers" Do you agree?

Ans) yes, I do agree but in case of the CPA, 1986, the concept of overcharging is different. In

this case, it refers to charging more than what was agreed. Incase of the competition law,

overcharging has a different meaning. Yes, the CPA is a great piece of legislation which has

empowered consumers against unscrupulous vendors who commit a different price for goods

and/or services and then end up raising bills for higher amounts. This malpractice is made

punishable under the act.

Q7.Are you aware of your rights as a consumer?

Ans) Yes, very much, but practically and frankly speaking, I have let go my rights on most

occasions. I bet, if I had moved the consumer courts every time I had a claim, I would have

been richer by at least a million but poorer by at least 2 million (considering the amount of

time I would lose in enforcing those rights).

Q8. Are you aware of the procedure to file a case in the consumer courts?

Ans) Yes, very much. In fact, we have filed complaints on 2 occasions for our clients. You

may approach me in case you need help and I shall be pleased to offer whatever assistance I

can. The procedure is very clear in the act and the rules. The staff at the district forums and

the commissions is very helpful and one must definitely go and learn the procedure, even if

they are not lawyers (won't be irrelevant to write here that you do not have to be a lawyer to

argue a matter before a consumer court! Few courts can be moved without an attorney,consumer court is one of them!)

Q9. Do you check the manufacturing date, MRP, etc. when you buy stuff?

Ans) Yes, on most occasions unless I'm in dire hurry

Q10. Have you ever exercised your rights as a consumer? (If yes, mention details.)

Ans) Yes, did write letters to the bank from which I had availed education loan and got

waived the excessive interests. I did get Rs, 5000 compensation from a saloon that cut my

skin while shaving. I did fight with Air India on an occasion to get benefits and successfully

so. Did work against LIC, Reliance mobile, Vodafone. Have at least 10 personal interestingepisodes! Would love to chat about them over a cup of tea!

But yes, the success story goes on to show that yes, customers are really powerful!! (Or is it

lawyers are)

Q11). What are the advantages and disadvantages of consumer protection act that u are aware

of?

Ans) The act is a fantastic legislation often clubbed with the law of torts. It is a celebrated

and much appreciated enactment. Therefore, there are not many disadvantages except that it

requires even more simplicity (despite the fact that it is very simple) being in a country likeIndia and that it adds to inflation in one way(without prejudice trio the fact that it also


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reduces inflation in another way). Advantages are many. First, that it protects consumer

rights. Second, that it adds a sense of quality with our countrymen. Third, It makes

consumers smarter and more alert (jaago grahak jaago). Fourth, it provides a time bound,

three tier, and systematic way of disposal of consumer grievances. Fifth, it shifts caveat

emptor to caveat venditor.. Several more.. Maybe better to discuss over tea/coffee!!

Q12). Are you aware Consumer protection act is made applicable to doctors for committing

medical negligence.

Ans) Yes, very much after a series of court judgments. Judicial activism has made this

breakthrough and a patient fits the definition of "consumer" and a medical service fits

"service" and a patient may sue for deficiency. Infact, this is an altogether different and

unique and interesting field of law of medico legals. Medical Negligence is big in the west

and is fast emerging in India also. We have also solved a matter involving medical negligence

though I'm glad, ours was settled before it could reach the courts at the stage of a notice only!

Case Studies

CASE STUDY 1

Complaint : Shri Suresh U . Gupta v/s Respondent: The New India Assurance Co ltd

Suresh gupta was covered under a mediclaim policy issued by the new india

assurance company ltd ,for a sum of rs 2 lakhs with CB 10% and Rs 3 lakhs with CB

nil

Suresh gupta was hospitalized at lilavati on 8/8/05 for sleep apnoea syndrome and

when Shri Gupta filed the claim for Rs 83,045 for the said hospitalization to insurance

company.

The TPA of the company M/s TTK health care services pvt ltd,after scrutiny settled

the claim for Rs 18000 after deducting Rs 65045 towards CPAP machine which as per

the insurance company was not payable.

Not satisfied with the decision of the company shri gupta represented to the company

stating that CPAP machines was prescribed by his doctor to keep him well without

hospitalization and without drugs.

He also emphasized that this was the only remedy for his ailment through which he

gets the quantum of oxygen required for his body and hence should be payable

Not,receiving any favourable response from the company ,Shri Gupta approached thisforum seeking intervention of the Ombudsman for settlement of his claim.


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The complaint was registered and as per RPG rules 1998,the ombudsman is

empowered to issue an award without holding personal hearing if he is satisfied that

the documents submitted are comphrehensive in nature and that all relevant points

have been addressed.

Accordingly the documents submitted by the parties were examined and felt that a

suitable award can be issued based on the documents submitted by both parties

without calling them for personal hearing

The main dispute under this claim is the non payment of an apparatus cost CPAP

machines which was required by Shri gupta to ward off his problem of sleep apnoea.

A close scrutiny of the policy would reveal that mediclaim policy covers

hospitalisation expenses for medical/surgical treatment at any nursing hospital in india

as defined, as in patient or on domiciliary treatment under domiciliary

hospitalisation benefits under specific circumstances.

There has also been reference under condition 1.0(d) that cost of pacemaker,artificial

limbs and the cost of organs would be reimbursed.however the expense for apparatus

which are not on the body system as such but are external adjuncts, would fall outside

the scope of mediclaim policy coverage.

In respect of CPAP machines in particular , the policy conditions excluded any

external machines for the payment.hence on this ground the claim for CPAP machine

fell outside the scope of the policy and therefore , the repudiation of the company to

that extent is sustainable.

ORDER

In the facts and circumstances the claim of Shri Suresh U Gupta for the cost of CPAP

machine in connection with his hospitalisation at lilavati hospital for sleep apnoea syndrome

is not sustainable.

The case is disposed of accordingly.


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CASE STUDY 2

Complaint: Coca Cola India limited introduced the prize winning scheme by the name

Thums-Up Thunder Gear and the said scheme was advertised as part of their sales

promotion of their soft drinks product Thums-Up. The aforesaid prize scheme offered

various prizes such as Tata Safari Car, woodland jacket, waist pouch, thunder jeans,

woodland T-shirt, woodland shoes etc. As per the advertisement any person who collects

liners attached to the caps(crown) of the Thums-Up bottles with the alphabets

T,H,U,M,S,U,P plus the liner containing the visual or picture of the prize would be awarded

the said prize shown in the liner. The said offer was valid from 15th December 1998 to 15th

February 1999 and that the prizes will be awarded on first come first served basis. The said

offer was later extended to 28th February 1999. The complainant collected the caps and liners

of Thums-Up bottles containing the alphabets Thums Up and also collected the picture of a

car printed on a liner contained in the Thums-Up cap. The complainant sent such liners to

the address mentioned in the advertisement as P.B. No. 13, Kalkaji, New Delhi-19. The

complainant sent the said liners on 15-02-1999 by speed post and the same was received by

the opposite parties on 16-02-1999. After receiving the prize winning liners, the opposite

parties kept mum without sending any reply to the same. The complainant sent several

remainders to the opposite parties. However the opposite parties did not respond. The

aforesaid action or inaction on the part of the opposite parties would amount to deficiency in

service and unfair trade practice. Hence thecomplaint is filed for directing the opposite parties

to give a Tata Safari Car and to award the entire cost of the proceedings.

Verdict: the complaint is allowed. Coca cola was directed to deliver the Tata Safari Car to

the complainant as the winner of the prize Tata Safari Car an d in the alternative to pay a

sum of Rs. 8 lakhs to the complainant representing the prize of the said vehicle with a cost of

Rs. 1,000/-. The aforesaid order is to be complied within a period of none month from the

date of receipt of copy of this order, failing which interest at the rate of 9% per annum is to

be given to the complainant on the sum of Rs. 8 lakhs from the date of this order till the date

of payment/realization.


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CASE STUDY 3:

Jet Airways has been ordered by a consumer forum here to pay over Rs 71,000 as

compensation to a family of four for not communicating their food preference to the

connecting airline and making them go hungry for over 10 hours during their flight to

Toronto from London.

The district forum asked Jet Airways to compensate the family while also holding it guilty of

rendering deficient service and not informing the family, the Sharmas, about the number of

bags allowed on the connecting Air Canada flight, due to which they had to pay an additional

expense of Rs 4,500 (approx) and also discard a bag worth Rs 2,000.

"The tickets were booked at Delhi and with the particulars of the allowable baggage while

going to London. Jet Airways was responsible for not clarifying the correct position to the

complainant about baggages.

"The Jet Airways was also responsible for not informing the food choice to the connecting

flight to Canada from London. We, therefore, hold it responsible for both deficiencies," said

the New Delhi district consumer forum.

The Sharmas, residing in Rohini, in their plea, had said they had booked four tickets through

a travel agent of the Jet Airways for a journey from Delhi to Toronto via London and back.

While booking the tickets, they had mentioned their meal choice as vegetarian, said Sharmas

adding that when they took the connecting Air Canada flight to Toronto at London, they

found their meal choice had not been communicated to Air Canada, due to which they had to

go hungry during the 10-hour flight.

They also said according to the tickets issued by Jet Airways two bags of upto 23 kg weight

could be carried by each passenger, but Air Canada informed them that only one bag per

traveller was allowed, due to which they had to pay Rs 4,500 and also discard a bag worth Rs

2,000.

Jet Airways, in their reply to a email sent by the Sharmas had said the rules of Air Canada

were to be followed and had also shifted the blame on to the travel agent.

The forum, however, rejected Jet Airways' contention that Air Canada rules would apply and

it was the travel agent's fault for not informing the family about luggage rules.

"We fail to appreciate the contention raised by Jet Airways. The tickets were booked at Delhi

and with the particulars of the allowable baggage while going to London.

Any change of that position in respect of baggages to be carried till Toronto by Air Canada

cannot be introduced mid-way in the journey.


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"We allow the expenses incurred of Rs 6,200 paid by the complainants for the baggages and

allow compensation of Rs 10,000 for each of the complainants for going without food for 10

long hours of flight. We also allow another compensation for harassment of Rs 25,000 to all

complainants including litigation expenses," the forum said.

Case study 4

Criminal case filed against builder of Delhi-Jaipur highway

A criminal complaint was filed on Tuesday against the company constructing the 225-km

Delhi-Jaipur Expressway for putting commuters lives in danger and blocking emergency

services.

Traffic on the highway remained affected after heavy rains damaged a sizeable portion of the

stretch. There was a traffic snarl on the Delhi-Jaipur-Mumbai highway due to rain-inflicted

damage to a portion near Naurangpur and Rampura, 45 km from Delhi.

For over 48 hours, vehicles were reduced to crawling pace, said a police officer. The

problem was big and the contractor company did not take it seriously. We have booked

PCEPL officials for causing danger to commuters, blocking the way and putting emergency

services on hold, said assistant commissioner of police Ravinder Kumar Tomar.

While constructing the slip road (temporary road for diversion of traffic) on National

Highway 8 on that stretch, the company used substandard material that could not bear the

load of traffic during rains.

PCEPL general manager Vinod Batra said heavy and prolonged rains were not expected. We

are carrying out an internal inquiry too, Batra said. Traffic woes may continue for another

two days, he said.

Based on a complaint by a traffic policeman, the case against the Pink City Expressway

Private Ltd was registered under the Indian Penal Code.


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Police were forced to divert traffic going towards Jaipur-Mumbai through Sohna-Bhiwadi-

Dharuhera and Pataudi-Rewari routes, but the situation remained grim.

Case study-5

NEW DELHI: A real estate developer has been ordered to pay Rs 6.6 lakh to a resident of

Rohini, Amrit Lal Chawla, for "raising illegal demands from time to time and then refusing to

refund the booking amount" when Chawla wanted to cancel the booking. The District

Consumer Disputes Redressal Forum (northwest district) says the actions of Unitech Ltd-the

opposite party, along with Unitech Reliable Projects Ltd and an agency-were "clearly

unjustified" and amounted to "unfair trade practices" .Chawla had booked flat no. 1103, 11th

floor, Tower 4, Unitech Verve, plot no. 11 in Greater Noida , for Rs 5.5 lakh in November

2006. The agreement presented by Chawla before the forum says he had bought the flat at therate of Rs 3,200 per square foot. From January 2007, Chawla started receiving a series of

letters , each one increasing the rate. When he made inquiries, he received a letter saying that

the unit had been allotted to him at Rs 3,250 per sq ft with an additional charge of Rs 50 per

sq ft as "Preferential Location Charges".


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Loopholes

Some major loopholes of the Act still left unplugged by the 2002 Amendments

1) The main problem is the fact that the Gazette notification for the conferment of First Class

Magistrates powers to the Consumer Forums or Commissions is still not issued. Thus it is

practically impossible for the Forums or Commissions to exercise this power conferred by the

Act.

2) Another lacuna present in the amended Act is the relatively softer approach adopted by the

Act towards the judgment debtor in its certain provisions. The amendment of 2002 has not

done anything concrete to fill this lacuna.

Finality of order:-

Every order of a District Forum, State Commission or the National Commission shall, if no

appeal has been preferred against such order under the provisions of this Act, be final. Thus

this provision implies that non- preferment of appeal renders the order final. Conversely,

preferring an appeal means that order is not final. Hence once an appeal is preferred by the

judgment debtor, he gets a stay against the execution and thus there cannot be any execution.

The judgment debtors have certainly misused this provision of the Act. It is a general pattern

that judgment debtors just buy time before the Forum or Commission stating that appeal has

been preferred. Even if the appeal is not admitted and may take quite some time for the

purpose, even if the required bank guarantee is yet not given and the stay is still not granted,

the consumer cannot get the execution of the original order done. Thus justice still eludes the

hapless consumer while the seller (judgment debtor) more often than not manages to get

adjournment. The Act is silent regarding a stay order. Even the Amendment Act of 2002

disappoints in this regard. This Section urgently calls for amendment substituting the words

appeal preferred with the words stay granted.

Enforcement of orders by the Forum, the State Commission or the National

Commission:-

(A) Where an interim order made under this Act, is not complied with the District Forum or

the State Commission or the National Commission, as the case may be, may order the

property of the person, not complying with such order to be attached.


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(B) No attachment made under sub-section shall remain in force for more than three months

at the end of which, if the non-compliance continues, the property attached may be sold and

out of the proceeds thereof, the District Forum, or the State Commission or the National

Commission may award such damages as it thinks fit to the complainant and shall pay the

balance, if any, to the party entitled thereto.

(C) Where any amount is due from any person under an order made by a District Forum,

State Commission or the National Commission, as the case may be, the person entitled to the

amount may make an application to the District Forum, the State Commission or the National

Commission, as the case may be, and such District Forum or the State Commission or the

National Commission may issue a certificate for the said amount to the Collector of the

district (by whatever name called) and the Collector shall proceed to recover the amount in

the same manner as arrears of land revenue.

If we carefully give a perusal to the above provisions of the above section, we find that by

virtue of the provision of attachment is against the interim order and not the final order. But

looking at the pattern of judgments, it can be clearly discerned that generally attachments are

aimed at awarding compensation to the aggrieved party, mostly the consumers.Compensations are usually awarded as part of the final order and the interim order almost

never awards compensation. Interim orders aim at compelling or restraining any agency for

the commission or omission of some act but these interim orders are seldom used by the

Forums or Commissions to attach or seal the property of any business person, manufacturer,

banks, medical establishments, etc. for the simple reason that the Forums/ Commissions are

not aware if there will be any compensation order against them at the conclusion of the

proceedings before Consumer Protection Agencies. Since no recovery proceeding is provided

under the Act, there cannot be any assessment of the dues and thus no interim attachment

order. Thus a more practically feasible approach would be to replace the word interim order

with all orders.

(D) Provides for issuance of a certificate to the Collector for recovery of the amount due from

any concerned person. The consumers have to contact the Collector for recovery of their dues

because there is no further provision as to what is the role of Consumer Forums/Commissions

after that. After a long wait for the order from the Forum, the hapless consumers still have toundergo the rigor of going to the collector for the realization of the dues. There is no clarity


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regarding who is responsible for the follow up with the revenue department and the stipulated

time limit thereto. Thus the concerned provision of should provide for the revenue

department to send the arrears to the Forum itself for reimbursement to the consumer. Thus

an amendment is required to take care of the afore-mentioned problem. However while

critiquing certain provisions of the Act, at the same time it is necessary to point out certain

other provisions which are the product of the 2002 Amendments and have plugged many

loopholes by their progressive wording. These provisions brought about by the amendment

have gone a long way in doing away the perennial problems of delay.

1) The jurisdiction of the District Forum to entertain complaints where the value of the goods

or services and the compensation claimed does not exceed rupees twenty lakhs. This will be

more convenient for the complainants and also reduce the number of complaints filed with

the State Commission and National Commission.

2) Every complaint filed with the District Forum shall be accompanied with such amount of

fee as may be prescribed. It also provides that the admissibility of the complaint shall

ordinarily be decided within twenty-one days from the date on which the complaint is

received and that once admitted a complaint shall not be transferred to any other Court or

Tribunal. This will help to quicken disposal of complaints.

3) The District Forum has to refer a copy of the admitted complaint within twenty-one days

from the date of its admission to the opposite party to give his version within the prescribed

time. It also provides the much needed provision for ex parte order as well as dismissal of

complaint on non-appearance of complainant.It includes a new sub-section (3A) to provide

that complaint shall be heard as expeditiously as possible and endeavour made to decide the

complaints within the prescribed period. Adjournments would ordinarily not be granted, and

if granted for reasons to be recorded in writing by the forum, an order as to the costs

occasioned by the adjournment would also be made by the forum. It is also provided 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.

It further includes a new sub-se

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