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The Consumer Protection Act, 1986

THE CONSUMER PROTECTION ACT
ACT NO. 68 OF
24th December
An Act to provide for the 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.

BE it enacted by Parliament in the Thirty – seventh Year of the
Republic of India as follows:–

CHAP

PRELIMINARY

CHAPTER I

PRELIMINARY

1. Short title extent commencement and application.

1. Short title extent commencement and application. (1) This Act
may be called the Consumer Protection Act 1986.

(2) It extends to the whole of India except the State of Jammu
and Kashmir.

(3) It shall come into force on such date as the Central
Government may by notification appoint and different dates may be
appointed for different States and for different provisions of this
Act.

(4) Save as otherwise expressly provided by the Central
Government by notification this Act shall apply to all goods and
services.

2. Definitions.

2. Definitions. (1) In this Act unless the context otherwise
requires–

(a) appropriate laboratory means a laboratory or orga-
nasation–
(i) recognised by the Central Government;

(ii) recognised by a State Government subject to
such guidelines as may be prescribed by the Central Govern-
ment in this behalf; or

(iii) any such laboratory or organisation established
by or under any law for the time being in force which is
maintained financed or aided by the Central Government or a
State Government for carrying out analysis or test of any
goods with a view to determining whether such goods suffer
from any defect;

(aa) branch office means–

(i) any establishment described as a branch by the
opposite party; or

(ii) any establishment carring on either the same or
substantially the same activity as that carried on by the
head office of the establishment;

The provisions of Chapters I II and IV of this Act came in
to force in the whole of India expect the State of Jammu & Kashmir on
15-4-1987: vide notification No. S.O. 390 (E) dated 15-4-1987
Gazette of India Extraordinary 1987 Part II section 3 (ii).

The provisions of Chapter III of this Act came in to force in
the whole India except the State of Jammu & Kashmir on 1-7-1987: vide
Notification No. S.O. 568 (E) dated 10.6.87 Gazette of India
Extraordinary 1987 part II Section 3 (ii).

Subs. by Act 50 of 1993 s. 2 (w.e.f. 18-6-1993).

Ins. by s. 2 ibid.

(b) complainant means–

(i) a consumer; or

(ii) any voluntary consumer association registered
under the Companies Act 1956 (1 of 1956) or under any
other law for the time being in force; or

(iii) the Central Government or any State Government
who or which makes a complaint;

(iv) one or more consumers where there are nume-
rous consumers having the same interest;

(c) complaint 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;

(ii) the goods bought by him or agreed to be bou-
ght by him suffer from one or more defects;

(iii) the services hired or availed of or agreed to
be hired or availed of by him suffer from deficiency in
any respect;

(iv) a trader has charged for the goods mentioned in
the complaint a price in excess of the price fixed by or
under any law for the time being in force or displayed on
the goods or any package containing such goods;

(v) goods which will be hazardous to life and safety
when used are being offered for sale to the public in con-
travention 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

with a view to obtaining any relief provided by or under this
Act;

(d) 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 paid or promised or partly paid or partly
promised or under any system of deferred payment when such
use is made with the approval of such person but does not
include a person who obtains such goods for resale or for
any commercial purpose; or

(ii) hires or avails of any services for a conside-
ration which has been paid or promised or partly paid and
part by 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 and partly
promised or under any system of deferred payment when such
services are availed of with the approval of the first
mentioned person.

Explanation: — For the purposes of sub – clause (i) commercial
purpose does not include use by a consumer of goods bought and used
by him exclusively for the purpose of earning his livelihood by
means of self – employment;

(e) consumer dispute means a dispute where the person
against whom a complaint has been made denies or disputes the
allegations contained in the complaint.

(f) defect means any fault imperfection or shortcoming in
the quality quantity potency purity or standard which is
required to be

Ins. by Act 50 of 1993 s. 2 (w.e.f. 18-6-1993).

Subs. by s. 2 ibdi. (w.e.f. 18-6-1993).

maintained by or under any law for the time being in force or
under any contract express or implied or as is claimed by
the trader in any manner whatsoever in relation to any goods;

(g) deficiency means any fault imperfection shortcoming
or inadequacy in the quality nature and manner of performance
which is required to be maintained by or under any law for the
time being in force or has been undertaken to be performed by a
person in pursuance of a contract or otherwise in relation to any
service;

(h) District Forum means a Consumer Dispute Redressal
Forum estalished under clause (a) of section 9;

(i) goods means goods as defined in the Sale of Goods Act
1930 (3 of 1930);

(j) manufacturer means a person who–

(i) makes or manufactures any goods or parts thereof;
or

(ii) does not make or manufacture any goods but
assembles parts thereof made or manufactured by others and
claims the end – product to be goods manufactured by himself;
or

(iii) puts or causes to be put his own mark on any
goods made or manufactured by any other manufacturer and
claims such goods to be goods made or manufactured by
himself.

Explanation: — Where a manufacturer despatches any goods or
part thereof to any branch office maintained by him such branch
office shall not be deemed to be the manufacturer even though the
parts so despatched to it are assembled at such branch office and
are sold or distributed from such branch office;

(jj) member includes the President and a member of the
National Commission or a State Commission or a District Forum
as the case may be;

(k) National Commission means the National Consumer
Disputes Redressal Commission established under clause (c) of
section 9;

(l) notification means a notification published in the
Official Gazette;

(m) person includes–

(i) a firm whether registered or not;

(ii) a Hindu undivided family;

(iii) a co – operative society;

(iv) every other association of persons whether
registered under the Societies Registration Act 1860 (21 of
1860) or not;

(n) prescribed means prescribed by rules made by the State
Government or as the case may be by the Central Government
under this Act;

(nn) restrictive trade practice means any trade prac-
tice which requires a consumer to buy hire or avail of any goods
or as the case may be services as a condition precedent for
buying hiring or availing of other goods or services;

(o) service means service of any description which is made
available to potential users and includes the provision of
facilities in connection with banking financing insurance
transport processing supply of electrical or other energy
board or lodging or both housing construction enter-

Ins. by Act 50 of 1993 s. 2 (w.e.f. 18-6-1993).

tainment amusement or the purveying of news or other
information but does not include the rendering of any service
free of charge or under a contract of personal service;

(p) State Commission means a Consumer Disputes Redressal
Commission established in a State under clause (b) of section 9;

(q) trader in relation to any goods means a person who
sells or distributes any goods for sale and includes the
manufacturer thereof and where such goods are sold or
distributed in package form includes the packer thereof;

(r) unfair trade practice means a trade practice which
for the purpose of promoting the sale use or supply of any goods
or for the provision of any service adopts any unfair method or
unfair or deceptive practice including any of the following prac-
tices namely:-

(1) the practice of making any statement whether
orally or in writing or by visible representation which-

(i) falsely represents that the goods are of a
particular standard quality quantity grade
composition style or model;

(ii) falsely represents that the services are of
a particular standard quality or grade;

(iii) falsely represents any re – built
second – hand renovated reconditioned or old goods
as new goods;

(iv) represents that the goods or services have
sponsorship approval performance characteristics
accessories uses or benefits which such goods or
services do not have;

(v) represents that the seller or the supplier
has a sponsorship or approval or affiliation which
such seller or supplier does not have;

(vi) makes a false or misleading representation
concerning the need for or the usefulness of any
goods or services;

(vii) gives to the public any warranty or guara-
ntee of the performance efficacy or length of life
of a product or of any goods that is not based on an
adequate or proper test thereof:

Provided that where a defence is raised to the
effect that such warranty or guarantee is based on
adequate or proper test the burden of proof of such
defence shall lie on the person raising such
defence;

(viii) makes to the public a representation in a
form that purports to be–

(i) a warranty or guarantee of a product or
of any goods or services; or

(ii) a promise to replace maintain or rep-
air an article or any part thereof or to repeat
or continue a service until it has achieved a
specified result

if such purported warranty or guarantee or promise
is materially misleading or if there is no reasona-
ble prospect that such warranty guarantee or pro-
mise will be carried out;

(ix) materially misleads the public concerning
the price at which a product or like products or
goods or services have been or are ordinarily sold
or provided and for this purpose a representa-
tion as to price shall be deemed to refer to the
price at which the product or goods or services has
or have been sold by sellers or provided by
suppliers generally in the relevant market unless
it is clearly specified to be the price at which the
product has been sold or services have been
provided by the person by whom or on whose behalf
the representation is made;

(x) gives false or misleading facts disparaging
goods services or trade of another person.

Explanation: — For the purposes of clause (1) a
statement that is–

(a) expressed on an article offered or displ-
ayed for sale or on its wrapper or container; or

(b) expressed on anything attached to inserted
in or accompanying an article offered or displayed
for sale or on anything on which the article is
mounted for display or sale; or

(c) contained in or on anything that is sold
sent delivered transmitted or in any other manner
whatsoever made available to a member of the public

shall be deemed to be a statement made to the public by
and only by the person who had caused the statement to
be so expressed made or contained;

(2) permits the publication of any advertisement whether in any
newspaper or otherwise for the sale or supply at a bargain price of
goods or services that are not intended to be offered for sale or
supply at the bargain price or for a period that is and in quanti-
ties that are reasonable having regard to the nature of the market
in which the business is carried on the nature and size of business
and the nature of the advertisement.

Explanation: — For the purposes of clause (2) bargaining price
means–

(a) a price that is stated in any advertisement to be a
bargain price by reference to an ordinary price or otherwise
or

(b) a price that a person who reads hears or sees the adver-
tisement would reasonably understand to be a bargain price
having regard to the prices at which the product advertised or
like products are ordinarily sold;

(3) permits–

(a) the offering of gifts prizes or other items with the
intention of not providing them as offered or creating impression
that something is being given or offered free of charge when it
it is fully or partly covered by the amount charged in the
transaction as a whole;

(b) the conduct of any contest lottery game of chance or
skill for the purpose of promoting directly or indirectly the
sale use or supply of any product or any business interest;

(4) permits the sale or supply of goods intended to be used or
are of a kind likely to be used by consumers knowing or having
reason to believe that the goods do not comply with the standards
prescribed by competent authority relating to performance composition
contents design constructions finishing or packaging as are
necessary to prevent or reduce the risk of injury to the person using
the goods;

(5) permits the hoarding or destruction of goods or refuses to
sell the goods or to make them available for sale or to provide any
service if such hoarding or destruction or refusal raises or tends
to raise or is intended to raise the cost of those or other similar
goods or services.

(2) Any reference in this Act to any other Act or provision
thereof which is not in force in any area to which this Act applies
shall be construed to have a reference to the corresponding Act or
provision thereof in force in such area.

3. Act not in derogation of any other law.

3. Act not in derogation of any other law. The provisions of this
Act shall be in addition to and not in derogation of the provisions of
any other law for the time being in force.

CHAP

CONSUMER PROTECTION COUNCILS

CHAPTER II

CONSUMER PROTECTION COUNCILS

4. The Central Consumer Protection Council.

4. The Central Consumer Protection Council. (1) The Central
Government may by notification establish with effect from such date
as it may specify in such notification a Council to be known as the
Central Consumer Protection Council (hereinafter referred to as the
Central Council).

(2) The Central Council shall consist of the following members
namely:–

(a) the Minister in charge of Consumer affairs in the
Central Government who shall be its Chairman and

(b) such number of other official or non – official members
representing such interests as may be prescribed.

5. Procedure for meetings of the Central Council.

5. Procedure for meetings of the Central Council. (1) The Central
Council shall meet as and when necessary but at least one meeting
of the Council shall be held every year.

(2) The Central Council shall meet at such time and place as the
Chairman may think fit and shall observe such procedure in regard to
the transaction of its business as may be prescribed.

6. Objects of the Central Council.

6. Objects of the Central Council. The objects of the Central
Council shall be to promote and protect the rights of the consumers
such as–

(a) the right to be protected against the marketing of goods
and services which are hazardous to life and property;

Subs by Act 50 of 1993 s. 2 (w.e.f. 18-6-1993).

Subs by s. 3 ibid (w.e.f. 18-6-1993).

Subs by s. 4 ibid (w.e.f. 18-6-1993).

Ins. by s. 5 ibid (w.e.f. 18-6-1993).

(b) the right to be informed about the quality quantity
potency purity standard and price of goods or servicesas
the case may be so as to protect the consumer against unfair
trade practices;

(c) the right to be assured wherever possible access to a
variety of goods and services at competitive prices;

(d) the right to be heard and to be assured that consumers’
interests will receive due consideration at appropriate forums;

(e) the right to seek redressal against unfair trade
practices or restrictive trade practices or unscrupulous
exploitation of consumers; and

(f) the right to consumer education.

7. The State Consumer Protection Councils.

7. The State Consumer Protection Councils. (1) The State
Government may by notification establish with effect from such date
as it may specify in such notification a Council to be known as the
Consumer Protection Council for …………………..(hereinafter
referred to as the State Council).

(2) The State Council shall consist of the following members
namely:–

(a) the Minister incharge of consumer affairs in the State
Government who shall be its Chairman;

(b) such number of other official or non – official members
representing such interests as may be prescribed by the State
Governments.

(3) The State Council shall meet as and when necessary but not
less than two meetings shall be held every year.

(4) The State Council shall meet at such time and place as the
Chairman may think fit and shall observe such procedure in regard to
the transaction of its business as may be prescribed by the State
Government.

8. Objects of the State Council.

8. Objects of the State Council. The objects of every State
Council shall be to promote and protect within the State the rights of
the consumers laid down in clauses (a) to (f) of section 6.

CHAP

CONSUMER DISPUTES REDRESSAL AGENCIES

CHAPTER III

CONSUMER DISPUTES REDRESSAL AGENCIES

9. Establishment of Consumer Disputes Redressal Agencies.

9. Establishment of Consumer Disputes Redressal Agencies. There
shall be established for the purposes 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
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.

Composition of the District Forum.

Composition of the District Forum. (1) 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 who shall be persons of ability
integrity and standing and have adequate knowledge or experience
of or have shown capacity in dealing with problems relating to
economics law commerce accountancy industry public affairs
or administration one of whom shall be a woman

(1A) 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 dealing with cun-
sumer affairs in the State –Members

(2) Every member of the District Forum shall hold office for a
term of five years or up to the age of 65 years whichever is earlier
and shall not be eligible for re – appointment:

Ins. by Act 50 of 1993 s. 5 (w.e.f. 18-6-1993).

Subs. by s. 6 ibid (w.e.f. 18-6-1993).

Certain words omitted by s. 7 ibid (w.e.f. 18-6-1993).

Ins. by s. 7 ibid.

Subs. s. 8 ibid (w.e.f. 18-6-1993).

Ins. by s. 8 ibid (w.e.f. 18-6-1993).

Provided 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 the
appointment of a person possessing any of the qualifications mentioned
in sub – section (1) in relation to the category of the member who has
resigned.

(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.

11. Jurisdiction of the District Forum.

11. Jurisdiction of the District Forum. (1) Subject to the 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 five lakhs.

(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 an
business or has a branch office or personally words for gain; or

(b) any of the opposite parties where there are more than
one at the time of the institution of the complaint actually
and voluntarily resides or carries on business or has a
branch office or personally works for gain provided that in
such case either the permission of the District Forum is given
or the opposite parties who do not reside or carry on
business or have a branch office or personally work for
gain as the case may be acquiesce in such institution; or

(c) the cause of action wholly or in part arises.

12. Manner in which complaint shall be made.

12. Manner in which complaint shall be made. A complaint in
relation to any goods sold or delivered or agreed to be sold or
delivered or any service provided or agreed to be provided may be
filed with a District Forum by–

(a) the consumer to whom such goods are sold or delivered or
agreed to be sold or delivered or such service provided or agreed
to be provided;

(b) any recognised consumer association whether the consumer
to whom the goods sold or delivered or agreed to be sold or deli-
vered or service provided or agreed to be provided is a member of
such association or not;

(c) one or more consumers where there are numerous consumers
having the same interest with the permission of the District
Forum on behalf of or for the benefit of all consumers so
interested; or

(d) the Central or the State Government.

Explanation: — For the purposes of this section recognised con-
sumer association means any voluntary consumer association registered
under the Companies Act 1956 (1 of 1956) or any other law for the
time being in force.

13. Procedure on receipt of complaint.

13. Procedure on receipt of complaint. (1) The District Forum
shall on receipt of a complaint if it relates to any goods–

(a) refer a copy of the complaint 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

Subs. by Act 50 of 1993 s. 9 (w.e.f. 18-6-1993).

Subs. by s. 10 ibid (w.e.f. 18-6-1993).

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
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 findings
thereon to the District Forum 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 fees as may be specified for payment to the appropriate
laboratory for carrying out the necessary analysis or test in
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 forward a copy of the report along with
such remarks as the District Forum may feel appropriate to the
opposite party;

(f) if any of the parties disputes the correctness of the
findings 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 the 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 complaint received 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 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 copy of the
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 dispute–

(i) on the basis of evidence brought to its notice by
the complainant and the opposite party where the opposite
party denies or disputes the allegations contained in the
complaint or

(ii) 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 the time given
by the Forum.

(3) No proceedings complying with the procedure laid down in sub-
sections (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.

(4) For the purposes of this section the District Forum shall
have the same powers as are vested in a civil court under the Code of
Civil Procedure 1908 (5 of 1908) while trying a suit in respect of
the following matters namely:–

(i) the summoning and enforcing the attendance of any
defendant or witness and examining the witness on oath;

(ii) the discovery and production of any document or
other material object producible as evidence;

(iii) the reception of evidence on affidavits;

(iv) the requisitioning of the report of the concerned
analysis or test from the appropriate laboratory or from any
other relevant source;

(v) issuing of any commission for the examination of
any witness; and

(vi) any other matter which may be prescribed.

(5) Every proceeding before the District Forum shall be deemed to
be a judicial proceeding within the meaning of sections 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 purposes of section 195 and
Chapter XXVI of the Code of Criminal Procedure 1973 (2 of 1974).

(6) Where the complainant is a consumer referred to in sub-
clause (iv) of clause (b) of sub – section (1) of section 2 the pro-
visions 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 modifi-
cation that every reference therein to a suit or decree shall be
construed as a reference to a complaint or the order of the District
Forum thereon

14. Finding of the District Forum.

14. Finding of the District Forum. (1) If after the proceeding
conducted under section 13 the District Forum is satisfied that the
goods complained against suffer from any of the defects specified in
the complaint or that any of the allegations contained in the
complaint about the services are proved it shall issue an order to
the opposite party directing him to do one or more of the
following things namely:–

(a) to remove the defect pointed out by the appropriate
laboratory from the goods in question;

(b) to replace the goods with new goods of similar
description which shall be free from any defect;

(c) to return to the complainant the price or as the case
may be the charges paid by the complainant;

Ins. by Act 50 of 1993 s. 11 (w.e.f. 18-6-1993).

Subs. by s. 12 ibid (w.e.f. 18-6-1993).

(d) to pay such amount as may be awarded by it as
compensation to the consumer for any loss or injury suffered by
the consumer due to the negligence of the opposite party.

(e) to remove the defects or deficiencies in the servi-
ces in question;

(f) to discontinue the unfair trade practice or the restric-
tive trade practice or not to repeat them;

(g) not to offer the hazardous goods for sale;

(h) to withdraw the hazardous goods from being offered for
sale;

(i) to provide for adequate costs to parties

(2) Every proceeding referred to in sub – section (1) shall be
conducted by the President of the District Forum and at least one
member thereof sitting together:

Provided that where the member for any reason is unable to
conduct the proceeding till it is completed the President and the
other member shall conduct such proceeding de novo.

(2A) Every order made by the District Forum under sub – section (1)
shall be signed by its President and the member or members who
conducted the proceeding:

Provided that where the proceeding is conducted by the President
and one member and they differ on any point or points they shall
state the point or points on which they differ and refer the same to
the other member for hearing on such point or points and the opinion
of the majority shall be the order of the District Forum

(3) Subject to the foregoing provisions the procedure relating
to the conduct of the meetings of the District Forum its sittings and
other matters shall be such as may be prescribed by the State
Government.

15. Appeal.

15. Appeal. Any person aggrieved by an order made by the District
Forum may prefer an appeal against such order to the State Commission
within a period of thirty days from the date of the order 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 within that period.

16. Composition of the State Commission.

16. Composition of the State Commission. (1) Each State
Commission shall consist of–

(a) a person who is or has been a Judge of a High Court
appointed by the 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) two other members who shall be persons of ability
integrity and standing and have adequate knowledge or experience
of or have shown capacity in dealing with problems relating to
economics law commerce accountancy industry public affairs
or administration one of whom shall be a woman:

Provided that every appointment under this clause. 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 of the Law Department of the State — Member

(iii) Secretary incharge of the Department dealing
with consumer affairs in the State — Member

(2) The salary or honorarium and other allowances payable to and
the other terms and conditions of service of the members of the
State Commission shall be such as may be prescribed by the State
Government.

(3) Every member of the State Commission shall hold office
for a term of five years or up to the age of sixty – seven years
whichever is earlier and shall not be eligible for re – appointment.

(4) Notwithstanding anything contained in sub – section (3) a
person appointed as a President or as a member before the commencement
of the Consumer Protection (Amendment) Act 1993 shall continue to
hold such office as President or member as the case may be till the
completion of his term.

17. Jurisdiction of the State Commission.

17. Jurisdiction of the State Commission. Subject to the other
provisions 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 five
lakhs but does not exceed rupees twenty lakhs; and

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

(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 Commission 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 of its
jurisdiction illegally or with material irregularity.

Ins by Act 50 of 1993 s. 12 (w.e.f. 18-6-1993).

Subs. by Act 34 of 1991 S. 2 (w.e.f. 15-6-1991).

Ins. by Act 50 of 1993 s. 13 (w.e.f. 18-6-1993).

Subs. by s. 13 ibid (w.e.f. 18-6-1993).

Certain words omitted by s. 13 ibid (w.e.f. 18-6-1993).

Subs. by s. 14 ibid (w.e.f. 18-6-1993).

18. Procedure applicable to State Commissions.

18. Procedure applicable to State Commissions. The provisions
of sections 12 13 and 14 and the rules made thereunder for disposal
of complaints by the District Forum shall with such modifications as
may be necessary be applicable to the disposal of disputes by the
State Commission.

18A. Vacancy in the office of the President.

18A. Vacancy in the office of the President. When the office
of the President of the District Forum or of the State Commission as
the case may be is vacant or when any such President is by reason of
absence or otherwise unable to perform the duties of his office the
duties of the office shall be performed by such person who is
qualified to be appointed as President of the District Forum or as
the case may be of the State Commission as the State Government may
appoint for the purpose.

19. Appeals.

19. Appeals. Any person aggrieved by an order made by the State
Commission in exercise of its powers conferred by sub – clause (i) of
clause (a) of section 17 may prefer an appeal against such order to
the National Commission within a period of thirty days from the date
of the order in such form and manner as may be prescribed:

Provided that the National 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 within that period.

20. Composition of the National Commission.

20. Composition of the National Commission. (1) 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 of India;

(b) four other members who shall be persons of ability
integrity and standing and have adequate knowledge or experience
of or have shown capacity in dealing with problems relating to
economics law commerce accountancy industry public affairs
or administration one of whom shall be a woman:

Provided that every appointment under this clause shall be
made by the Central Government on the recommendation of a selection
committee consisting of the following namely:–

(a) a person who is a Judge of the
Supreme Court to be nominated by the
Chief Justice of India — Chairman

(b) the Secretary in the Department
of Legal Affairs in the Government of
India — Member

(c) Secretary of the Department
dealing with consumer affairs in the
Government of India — Member.

(2) The salary or honorarium and other allowances payable to and
the other terms and conditions of service of the members of the
National Commission shall be such as may be prescribed by the Central
Government.

(3) 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 and shall not be eligible for re – appointment.

(4) Notwithstanding anything contained in sub – section (3) a
person appointed as a President or as a member before the commencement
of the Consumer Protection (Amendment) Act 1993 shall continue to
hold such office as President or member as the case may be till the
completion of his term

21. Jurisdiction of the National Commission.

21. Jurisdiction of the National Commission. Subject to the other
provisions of this Act the National Commission shall have
jurisdiction–

(a) to entertain–

(i) complaints where the value of the goods or services
and compensation if any claimed exceeds rupees twenty
lakhs; and

(ii) appeals against the orders of any State
Commission; and

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

22. Procedure applicable to the National Commission.

22. Procedure applicable to the National Commission. The
National Commission shall in the disposal of any complaints or of any
proceedings before it have —

(a) the powers of a civil court as specified in sub – sections
(4) (5) and (6) of section 13;

(b) the power to issue an order to the opposite party direc-
ting him to do any one or more of the things referred to in
clauses (a) to (i) of sub – section (1) of secction
and follow such procedure as may be prescribed by the Central Gove-
nment

Subs by 50 of 1993 s. 15 (w.e.f. 18-6-1993).

Ins. by the Act 34 of 1991 s. 3 (w.e.f. 15-6-1991)

Ins. by Act 50 of 1993 s. 16 (w.e.f. 18-6-1993).

Subs. by s. 16 ibid (w.e.f. 18-6-1993).

Certain words omitted by s. 16 ibid (w.e.f. 18-6-1993).

Subs. by s. 17 ibid (w.e.f. 18-6-1993).

Subs. by s. 18 ibid (w.e.f. 18-6-1993).

23. Appeal

23.

Appeal Any person aggrieved by an order made by the National
Commission in exercise of its power conferred by sub – clause (i) of
clause (a) of section 21 may prefer an appeal against such order to
the Supreme Court within a period of thirty days from the date of the
order:

Provided that the Supreme Court 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 within that period.

24. Finality of orders.

24. Finality of orders. Every order of a District Forum the
State Commission or the National Commission shall if no appeal has
been preferred against such order under the provisions of this Act be
final.

24A

Limitation period.

24A. Limitation period. (1) The District Forum the State
Commission or the National Commission shall not admit a complaint
unless it is filed within two years from the date on which the cause
of action has arisen.

(2) Notwithstanding anything contained in sub – section (1) a
complaint may be entertained after the period specified in sub – section
(1) if the complainant satisfies the District Forum the State Comm-
ission or the National Commission as the case may be that he had
sufficient cause for not filing the complaint as this such period:

Provided that no such complaint shall be entertained unless the
National Commission the State Commission or the District Forum as
the case may be records its reasons for condoning such delay.

24B

Administrative control.

24B. Administrative control. (1) The National Commission shall
have administrative conntrol over all the State Commissions in the
following matters namely;–

(i) calling for periodical returns regarding the institution
disposal pendency of cases;

(ii) 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 furni-
shing of English translation of judgments written in any
language speedy grant of copies of documents;

(iii) 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 interfe-
ring with their quasi – judicial freedom.

(2) The State Commission shall have administrative control over
all the District Fora within its jurisdiction in all matters refer-
red to in sub – section (1)

25. Enforcement of orders by the Forum the State Commission or theNational
Commission.

25. Enforcement of orders by the Forum the State Commission or
the National Commission. Every order made by the District Forum the
State Commission or the National Commission may be enforced by the
District Forum the State Commission or the National Commission as
the case may be in the same manner as if it were a decree or order
made by a court in a suit pending therein and it shall be lawful for
the District Forum the State Commission or the National Commission to
send in the event of its inability to execute it such order to the
court within the local limits of whose jurisdiction–

(a) in the case of an order against a company the
registered office of the company is situated or

(b) in the case of an order against any other person the
place where the person concerned voluntarily resides or carries
on business or personally works for gain is situated and

thereupon the court to which the order is so sent shall execute
the orders as if it were a decree or order sent to it for execution.

26. Dismissal of frivolous or vexatious complaints.

26. Dismissal of frivolous or vexatious complaints. Where a
complaint instituted before the District Forum the State Commission
or as the case may be the National Commission is found to be frivo-
lous or vexatious it shall for reasons to be recorded in writing
dismiss the complaint and make an order that the complainant shall
pay to the opposite party such cost not exceeding ten thousand
rupees as may be specified in the order

27. Penalties.

27. Penalties. Where a trader or a person against whom a
complaint is made or the complainant fails or omits to comply with
any order made by the District Forum the State Commission or the
National Commission as the case may be such trader or person or
complainant shall be punishable with imprisonment for a term which
shall not be less than one month but which may extend to three years
or with fine which shall not be less than two thousand rupees but
which may extend to ten thousand rupees or with both:

Provided that the District Forum the State Commission or the
National Commission as the case may be may if it is satisfied that
the circumstances of any case so require impose a sentence of
imprisonment or fine or both for a term lesser than the minimum term
and the amount lesser than the minimum amount specified in this
section.

CHAP

MISCELLANEOUS

CHAPTER IV

MISCELLANEOUS

28. Protection of action taken in good faith.

28. Protection of action taken in good faith. No suit
prosecution or other legal proceedings shall lie against the members
of the District Forum the State Commission or the National Commission
or any officer or person acting under the direction of the District
Forum the State Commission or the National Commission for

Ins by Act 50 of 1993 s. 19 (w.e.f. 18-6-1993).

Subs by s. 20 ibid (w.e.f. 18-6-1993).

Ins by s. 21 ibid (w.e.f. 18-6-1993).

executing any order made by it or in respect of anything which is in
good faith done or intended to be done by such member officer or
person under this Act or under any rule or order made thereunder.

29. Power to remove difficulties.

29. Power to remove difficulties. (1) If any difficulty arises in
giving effect to the provisions of this Act the Central Government
may by order in the Official Gazette make such provisions not
inconsistent with the provisions of this Act as appear to it to be
necessary or expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of a
period of two years from the commencement of this Act.

(2) Every order made under this section shall as soon as may be
after it is made be laid before each House of Parliament.

29A. Vacancies or defects in appointment not in invalidate orders.

29A. Vacancies or defects in appointment not to invalidate
orders. No act or proceeding of the District Forum the State
Commission or the National Commission shall be invalid by reason only
of the existence of any vacancy amongst its members or any defect in
the constitution thereof

30. Power to make rules.

30. Power to make rules. (1) The Central Government may by
notification make rules for carrying out the provisions contained in
clause (a) of sub – section (1) of section
clause (b) of
sub – section (2) of section 4 sub – section (2) of section 5 clause
(vi) of sub – section (4) of section 13 section 19 sub- section (2) of
section 20 and section 22 of this Act.

(2) The State Government may by notification make rules for
carrying out the provisions contained in clause (b) of sub – section
(2) and sub – section (4) of section 7 sub – section (3) of section
clause (c) of sub – section (1) of section 13 sub – section (3) of
section 14 section 15 and sub – section (2) of section 16.

31. Laying of rules.

31. Laying of rules. (1) Every rule made by the Central
Government under this Act shall be laid as soon as may be after it is
made before each House of Parliament while it is in session for a
total period of thirty days which may be comprised in one session or
in two or more successive sessions and if before the expiry of the
session immediately following the session or the successive sessions
aforesaid both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made the rule shall
thereafter have effect only in such modified form or be of no effect
as the case may be; so however that any such modification or
annulment shall be without prejudice to the validity or anything
previously done under that rule.

(2) Every rule made by a State Government under this Act shall be
laid as soon as may be after it is made before the State Legislature.

Ins. by Act 34 of 1991 S. 4 (w.e.f 15-6-1991).

Ins. by Act 50 of 1993 s. 22 (w.e.f.18-6-1993).

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