[PDF]Consumer Protection Act (India) 1986

THE GON.SUMER PROTECTION ACT, 1986


No. 68 OF 1986


[24th- December^ 1986.]


Short
title
extent,
com-
mence,
ment

and appli-
cation.


Defini-
tions.


An Act to provide for the better pro teetion of the interests of consumers
. and for that purpose to make provision for the establishment of
eonsumer councils and other authorities for the settlement of
consumers' disputes and for matters Gonnected therewith.


1. (1) This Act may be called thg Cohsumer Protection Act, 1986.

(2) It extends to the whole of India except the State of Jammu and
Kashmir. 1

(3) It shall come into force on such date^ as the Central Government
™^y, 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. (1) Jji this Act, unless the context otherwise requires,—

(a) "appropriate laboratory" means a laBoratery Or organisation
recognised by the Central Government and includes any suchj
laboratory or organisation established by or under any law for the
time being in force, which is maintained, financed or aided by the
Central' Governmenf. 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;

The-piovisions of Chapfers T,TI and IV of this Act shall come in to force in the whole
of India expect the-State of Jammu & Kashmir on 15-4-1987: oiWe notif-'ction No. S.O. 390
(E), dated 15-4-1987, Gazette of India, Extraordinary I987,part II, Section 3 (ii).

^ The provision of Chapter III of this Act shall come ii to force in the whole India
except the State of Jammu & Kashmir on 1-7-19S7: nsde N"tiication No. S.O. 568 (E) , dated
10.§.1987 , Gazette of India Extraordinary , 1987 , part 11 .Section 3 (ii).


Be it enacted by PaYliaraent in the Thirty-seventh Year of the Rejpublic
of India as follows:' —


CHAPTER I


Pbeliminary


1324


[act 68 OF -1986]


Consumer Protection


1325


(tt) "compiainant" means—

(i) a consumer; or .

(m) any voluntary consumer association registered under
the Companies Act, 1&56 or under any other law for the time
being in force; or • '

(in) the Central Government or any State Government,

who or which makes a complaint; ■ .

(c) "complaint" means any allegation in writing made by a
complainant that —

(i) as a result of any unfair trade practice adopted by any
' trader, the complainant has suffered loss or damage;

(ii) the goods mentioned in the complaint suffer from, one
or more defects;

(m) the services mentioned in the complaint 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,

with a view to obtaining any relief provided by or under tMs 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 con-
sideration 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 commer-
cial purpose; or

(ii) hires any services for a CQUsideration which has been
paid or pjoinised or Pfirtly paid ajjd partly promised, or .under
any system of deferred payment and includep any beneficiary
of such services other than the person who hires 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; -

(e) "consumer dispute" means a dispute where the person
against whom a complaint has been made, denies or disputes the al-
legations contained in the complaint.


(f), "defect" means any fault imperfection or ghortcoiiiing in the
quality, quantity, potency, purity pr star^darci whiQjj i§. required p J?f


1326


Consumer Prot^etion


IaCo? 68


maintained by or under any law for the time being in force 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" m.eans goods as defined in the Sale of Goods Act,
3 of 1930. 19^^' ' ■ : . :

(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 absembles
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 rhark 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 oi'
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 assernbled at such branch office and are-
sbld or distributed from such branch' office; » . ,

: (k) "National Commission" means the National Consumer Dis-
putes Redressal Commission established under clause (o) of sectior..

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

(m) "person" includes,— ,
: (i) a firm whether registered or not;

(ii) .ai.Hin4u;:u©di^4ed,.fa^

(iii) a eo-operative- society;

• (iv) every other association of persons whether registered

under the Societies Registration Act, 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;

: (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, enter-


0orisumer PrptecUdrl


54 oi;'l9fi9.


tainment, amusement lor the purveying of news or , other, inforination,
but does not include the rendering of any service free oi charge or
under a. contract of personal service;

(p) ''State Coinmission" means a Consumer Disputes Redressal
Commission established in a State under clause (b) of section 9j

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

I (r) the expression "unfair trade practice'' shall have the same
meaning as in section 36A of the Monopolies and Restrictive Trade
Practices Act, ,1969, but shall not include an unfair trade practice,
adopted by the owner of an undertaking to \yhich Part A of Chapter
in of that Act applies or by any person acting on behalf of, or for
the benefit of, such owner.

(2) li^jr reference in this Act to any otheij Act or provision thereof
which is not in force in any area to which this Act applies shall be coijs-
trued to have a reference to the corresponding Act or provision thereof
ins Sorc&iin such ^fea, ; ■ : - |

3. The , provisions of this Act shall be in addition to and hotj la? "
derogation of the provisions of any other law for the time being in force.

, CHAPTER II

CoNSTmER Protection Couitcils

4, (1). The Central Government may, by notification, establish with
effect from such date as it may apecify 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,
n?maely;:i-T^ .■ - ■ '•■

(q): _the Minister in charge of the Department of Food and. Civil
Supplies in the Central Governnient, who shall be its' Chairman, and ,

(b) such, aiumber of other official or non-offloial members r^rcr
sentlng such interests as may be prescribed. .

5- (1) The Central Council shall meet as and when necessary, bu^
less than three meetings of the Gouncil shall be held every year.

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

,6. The objects of the Central Council shall be to promote and pro-
tect the righjis of the consumers such as,-^ . "


Act not
in dero'
gatlon of
aay other
law. '


The Cen-
tx-al Con-
suxner ;
Preteetion '
Councfl,


(a) the right to be protected against the marketing- of gosds
which are hazardous to lif^ find property^


Procedure
for meet*
IngK/of
the

Central
Councfl.


Objects
of the

Central
Gouncil.


Consumer Protection


[ACT 68


The State
Consumer
ProtMtion
Councils. '


Objects of
the state
Council


(b) the right to be informed about the quality, quantity, poten-
]()urity, standard and price of goods so as to protect the consumer

against unfair trade practices;

(c) the right to be assuredj wherever possible, access to a varie-
ty of goods 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 practieea or
imscrupulous exploitation of consumers; and

(/) the right to consumer education.

T. (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. . • ...... .1

(hereinafter referred to as the St%te Council).

(2) The State Council shall consist of such number of members as
may bd specified by the State Government by notification from time to

8. The objects of every State Council shall be to promote and pro-
tect within the State the rights of the consumers laid down in clauses
(a) to (/> of section 6. , j


Establish-
ment of
GoDSfumer
Disputes
Redressal
Agencies.


Compo-
sition of
the District
Ferum.


CHAPTER 111 j

Consumer Disputes Redressal Agencies

9. There shall be established for the purposes of this Act, the follow-
ing agencies, namely:— ,^

(a) a Consumer Disputes Redressal Forum to be known as the
"District Forum" established by the State Government with the
prior approval of the Central Government in each district of the
State by notification;

(Z>) a Consumer Disputes Redressal Commission to be known as
the "State Commission" established by the State Government with
the prior approval of the Central Government in the State by noti-
fication; and .

(e) a National Consumer Disputes Redressal Commission estab-
lished by the Central Government by notification,

10. ^(1) Each District Forum shall consist of—-

(a) a person who is, or has been, or is qualified to be a District
Judge to be hominated by the State Government, to be its President;;

(b) a person of eminence in the field of education, trade or
commerce;

(c) a lady social worker.

(2) Every member of the District Forum shall hold office for a term
of five years or up to the age of 85 years, whichever is earlier, and shall
not be eligible for re-appointment:


©f 1986]


Consumer Protection


1329


1 ol 1958.


Provided that a member may resign his office in writing iinder his
hand addressed to tha State Government and on such resignation being
accepted, his office shall become vacant and . may be filled by the ap-
pointment of a person possessing any of the qualifications mentioned in
sub-section (I) in relation to the category of the member who has re-
signed.

(3) The salary or' honorarium and other allowances payable to, and
the other terms and conditions of service of the members of tne District
Forum shall be such as may be prescribed by the State Governm,ent.

11^ (1) Subject to the other provisions of this Act, the District Forum
shaU have jurisdiction to entertain complaints where the value of the
goods or services 'and the compensation^- if any, claimed is less than
rupees, one lakh. . . ■■

(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, wheie
there are rnore than one, at the time of the institution of the com-
plaint, actually and voluntarily resides or ■ carries on busimJsg, or
personally works for gain; or

(b) any of the opposite parties, where there are more than
one, at 'the time of the institution of the complaint, actually and
voluntarily resides, or carries on business, or personally, works fqr
gam, provided that in such case either the permission of the District
Folium is given, or the opposite pcirties who do not reside, or carry
on business, or personally work for gain, as the case m_ay be, ac-
quiesce in such institution; or

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

12. A complaint,* in relation to any goods sold or delivered . or any
service provided, may be filed with a District Forum by— ,

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

(b) any recognised consumer association, whether the consumer
to whom the goods sold or delivered or service provided is a mem-
ber of such association or not; or

(c) the Central or the State Government.
Explanation.— For the purpose of this section ''recognised consumer

association" means any voluntary consumer association registered under
the Companies Act, 1956 or any o.ther law for the time being m. force.

13. (1) The District Forum shall, on receipt of a complaint, if it
relater, to any goods,—

' (u) refer a copy of the complaint to the Opposite party men-

tioned in the complaint directing him to give his version of the case
within a period of thirty days or such extended period rot exceed-
ing fifteen days as may be granted by the District Forum;

(fa) where the opposite party on receipt of a complaint referred
to him under clause, (a) denies or disputes the allegations contained


Juris-
diction
of the
District
Forum.


. Manner
in which
complaint
Shalt be
m'Jde.


Pvcce-
dure on
receipt
of com-
plaint.


Consutner Protection


[ACT m


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
shair 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 can-
not be determined without pioper analysis or test of the goods, the
District Forum shall obtain a sample of the goods from the coni-
plainant, seal it and authenticate it in the manner prescribed and
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