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CHAPTER TV

CONSUMER PROTECTION: LEGISLATIVE MEASURES

In the olden days, before the industrial revolution,- the nature of society was

monolithic and the needs of the people were very small. Most of the people lived in

rural areas and the farmers produced a substantial portion of the goods needed by

them. Even for people living in cities, the needs were much limited. Business was

small and the manufacturers produced only those items which were greatly needed by

the society. As the economy became industrialised and the society pluralistic, the raw

materials changed their' character' under the complicated process of production and

improved technology. New products appeared and old products became more refined

and complex'.

The modern consumer has to depend on the businessman for every activity.

This dependency of the consumer is only one side of the coin; on the other side the

businessman has the responsibility to protect and satisfy the consumer, by offering

quality commodities in right quantity, and at reasonable prices. The importance of the

consumer in business has yet to be realised fully. In general, consumers are scattered

and disorganised. Individually they have very weak bargaining power. They are not

professional buyers. Besides, they have an additional handicap as majority of them are

illiterate, ignorant and they usually suffer from lack of information to make any

intelligent purchases.

1. S. Sankaran, Business and Society, Madras: Marghan Publication, 1987, p. 147.

125

India has been a seller's market where the manufacturer and the trader have

been able to sell anything produced. This has resulted in the vast body of consumers

being exploited both in terms of quality and quantity of goods. Sub-standard and

unsafe products are being pushed into the market. The consumer has neither the

technical know-how nor the necessary ability to judge the quality of products

purchased by him. Hence the Government has an important role to play in ensuring the

satisfaction of the consumer and safeguarding his interests.

The growth of advertising and large scale production and introduction of

pre-packaging and self-service have made efficient low-cost retailing possible.

However, the number of competing brands and the type of consumer goods render the

problem of choice more acute; and the highly complex and the technical composition

for many modern products makes it difficult for the consumers to be reliably informed

about their qualities and performance. Also high pressure advertising and sales

techniques may some times result in a divergence between the consumer's demand and

his real needs.

The consumer therefore, needs legal protection both against artificial price

fixing and undesirable pratices by monopolies and also against fraud and

mis-representation by a minority of less scrupulous traders and producers.

In this chapter an attempt has been made to highlight the legislative

measures passed by the Government to safeguard the interests of the consumers. The

Consumer Protection Act, 1986 and the Consumer Redressal Machinery established at

1 2 6

District, State and National levels have been discussed in the earlier part of this

chapter. The profile of seven selected sample consumer Disputes Redressal Forums

are also analysed.

Legislative Measures

The Government has been enacting from time to time, various laws for the

protection of the consumer. Legislation gives statutory protection to innocent and

ill-informed consumers against unfair trade practices. In the past, marketing legislation

was by and large, business-oriented and not consumer-oriented. Often the legislation

wanted to encourage competition and competitive market. Consumer benefit or

protection was incidental, The benefit went to the producer often. Since 1945, all

over the world, the consumer was hit heavily by inflation. The evils of inflation

compelled the Governments to offer direct consumer protection against unfair trade

practices. Hence there has been a series of consumer-oriented legislations.

The Government has enacted Consumer Acts to control buyer-seller

relations in the market place and to regulate protection, supply, quality, quantity, price,

distribution, terms of sale, trade practices and so on. All these Acts except Consumer

Protection Act 1986, are not preventive in nature but they prescribe fines and

punishments to the offenders. The Consumer Protection Act, 1986 (COPRA) is not

only preventive but also punitive in nature. The Act intends to provide simple, speedy

and inexpensive redressal to the grievances of the consumers. The Consumer

Protection Act, 1986 is thus a milestone in the history of socio-economic legislation in

127

the country. It is one of the most progressive and comprehensive pieces of legislation

enacted for the purpose of protecting the interest of consumers.

Consumer Protection Act, 1986: Distinctive Features

The Consumer Protection Act, 1986, is known in short as COPRA. Its

provisions are very comprehensive and they safeguard the economic rights of the

Consumers effectively. This Act is based on the principle of 'self-help' to protect

oneself against all kinds of exploitative and unfair dealings such as over-pricing,

defective goods and cheating The Act redefines the legal relations between

Consumers of goods and services and their sellers and manufacturers. The Act has two

important implications for the consumer such as the right to complain to an authority

and also claim compensation for any loss or injury suffered on account of the

negligence of the manufacturer The Act applies to all goods and services in both

private and public sectors except those rendered free of charge or under a personal

service contract.

The Indian Parliament enacted this legislation in December 1986. It came

into force on April 15, 1987 and all provisions came into operation in July 1987. The

Act provides for the establishment of Consumer Disputes Redressal Agencies at

District, State and National Levels for the protection and promotion of the interests of

consumers and to redress their grievances in a speedy, simple and inexpensive manner.

128

The redressal agencies are required to dispose of each complaint within 90

days. There are no legal formalities for filing the complaint, which can be addressed to

the concerned forum even through a post-card notifying the grievance and the names

and addresses of the complainant and respondent. There is no need to pay any court

fee for filing cases as in the civil court. It also provides for setting up Consumer

Protection Councils in the State and Centre to promote and protect the interests of the

consumers. The prominent features of the COPRA are discussed under the headings

noted below.

I. Conceptual Clarification

II. Consumer Protection Councils

III. Consumer Disputes Redressal Agencies

IV. Allied Acts.

I. Conceptual Clarification

The Consumer Protection Act, 1986, defines the following concept:

(a) Consumer means any person, who

(i) buys 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

1 2 9

ii) hires any services for consideration which has been paid or promised or

partly paid and partly promised or under any system of deferred payment and includes

any beneficiary of such services other than the person who hires 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 first

mentioned person.2

Thus the definition of 'Consumer' as per the Act, 1986 clarifies who a

consumer is. He may be the

i) buyer of any goods for a full or partly paid consideration or of deferred

payment.

ii) User of such goods other than the person who actually buys the goods

and such use is made with the approval of the purchaser.

iii) Hirer of any service for a full or partly paid consideration or of deferred

payment.

iv) Beneficiary of such services from the original hirer.

However the following persons are not considered consumers.

i) A person who buys goods for any commercial or resale purpose or

without any consideration.

2. "Consumer Protection", Government of India, Ministry of Civil Supplies, New Delhi, 1995, p.2.

1 3 0

ii) A person who receives services without any consideration.

Thus, any person who buys goods or services on payment of money for a

consideration is a consumer, but a person who purchases goods for resale or for any

commercial purpose is not a consumer. In other words, if the goods purchased are used

for a large-scale business activity intended to earn profit, the purchaser is not a

consumer. If he uses the goods for personal purpose or exclusively for the purpose of

earning his livelihood by means of self-employment, he will be a consumer. To quote

an example, a person who buys a typewriter or a car and uses it for his personal use is

certainly a consumer. But a person who buys a typewriter to take up job-work and

earn money or a car to ply it as a taxi and earn profit can be said to be using the

typewriter or the car for commercial purpose. If the buyer uses the goods by himself,

that is, by means of self-employment, for earning his livelihood, it would not be treated

as a commercial purpose and he does not cease to be a consumer for the purpose of the

Act.

Judicial Decisions on the Concept of'Consumers'

The following are a few cases of judicial decision taken by the consumer

forums at different levels.

1. Education: Students are not Consumers

The Madras High Court ruled that Education and educational institutions

would not come under the purview of the COPRA. The students were not consumers

as contemplated under COPRA. Imparting education and holding examinations were

131

outside the scope of the act3. Similarly the teacher, did not come under the purview of

the COPRA for the simple reason that there was no tangible method of assessing a

teacher's sincerity or efficiency in the job, apart from the statistical procedure of

measuring attendance and syllabus coverage. Moreover, the teachers were answerable

to the head of the institution.

2. Municipal Corporation: Assessee of Municipal Tax is not a Consumer

An assessee for municipal tax is not a consumer because he has not hired the

services of the municipal corporation for any consideration (payment). Only a person

who has hired or availed of a service for a consideration is a consumer. House tax

levied by the municipal corporation is not a consideration for any service. The levy is

in the nature of a tax and is not dependent upon providing civil amenities to the

house-owners or occupiers of a house.

Any complaint about the levy and collection of such tax does not make the

assessee a consumer as defined under COPRA. Therefore a complaint against the

quantum of tax assessed or the fixation of the value of the house for the purpose of tax,

is not entertainable by the Forums under COPRA. The assessee therefore can prefer an

appeal before the Assessment Tribunal for settlement of any such grievance.

3. Indian Express (Madurai), dated 20th December, 1994, p. 7.

132

The valuation of a flat at South Calcutta belonging to Apurbakumar Babu

had been reassessed at Rs. 6750 by the municipal authorities, as against the previous

year's Rs.5616. He filed a compliant before the Calcutta District Consumer Dispute'.

Redressal Forum for getting the annual valuation reduced. The forum dismissed the

case based on the ruling of the National Commission, because the complainant could

not be regarded as a consumer and the Forum had no jurisdiction to entertain a

complaint against the assessment of value by the Calcutta Municipal Corporation4.

3. Civil Supplies: Ration Card holder is not a Consumer

The complainant was a ration card holder who was entitled to buy rations

from the Fair Price Shop. But he was not supplied wheat by the Fair Price Shop dealer

in time. His complaint was dismissed because he was not a consumer as against the

civil Supplies Authorities5.

4. Medical Service: Patient is a Consumer

A patient is a "Consumer" within the meaning of the term in COPRA. He is

therefore entitled to approach consumers Forum and get compensation for any loss or

injury suffered by him because of the negligence of the doctor.

4 M a n Express (Madurai), dated 13th March 1996, p.2.

5. Civil Supplies Officer Vs Santhosh Kumar, Consumer Protection Judgements. Vol.1, April, 1995, p.472.

Bolam alleged that the treatment for back pain was not conducted properly

in Friern Private Hospital, Calcutta. Hence he filed a complaint against the hospital in

the Calcutta District Forum.

The Forum entertained the complaint and the case was decided in favour of

the patient. The Forum ordered the Hospital to pay a compensation of Rs. 10,000 to

the patient."

5. Shares and Debentures: Share Applicant is not « Consumer

As per the supreme court ruling, a prospective investor in shares is not a

consumer, In order to satisfy the requirements of the definition of consumer' under

Consumer Protection Act, there must be a transaction of buying of goods or hiring of

services for some consideration.

Shares do not exist till the allotment takes place. Therefore at the stage of

application, there exists no goods for making a purchase. The applicant is only a

prospective investor on future goods. The applicant cannot complain against any

unfair trade practice, as the company is not trading in shares.

Gujarat State Commission dismissed a batch of 30 complaints filed by a

voluntary organisation on behalf of the consumers who had applied for shares of State

Bank of India. They were entitled to allotment of shares on the basis of criteria

6. Indian Express (Madurai), dated 4th June, 1997, p. 7.

134

published in newspapers. They prayed that the bank be directed to allot a minimum

number of shares to each applicant under the scheme of firm allotment or pay

compensation of Rs.8500 to each. The cases were dismissed based on the supreme

court ruling, that the persons who had applied for shares were not consumers' as

defined in COPRA.7

(b) Commercial Purpose

Commercial purpose is a purpose in which it is aimed to make profit by

using the goods or services.

The following are some of the important cases on which judicial decisions

have already been made.

1. Agricultural Service: Purpose meant for Agriculture is not Commercial

Complainant had purchased Sunflower Hy-brid mega 363 seeds from a

supplier. It was alleged that the seeds did not germinate despite the fact that the same

were sown in accordance with the instructions given in the brochure given by the

supplier. It was alleged that the poor result was due to the supply of inferior,

substandard and defective quality of seeds. The National Commission held that the

complainant did not purchase the seeds for commercial purpose, hence he was a

consumer8.

7- Indian Express (Madurai), dated 28th February, 1996, p.7.

8. Laxmi Agriculture Seed Stores Vs Dhoop Singh, Consumer Protection Judgements, Vol.1, February 1995, p.45.

135

2. Charitable Institution: Charitable Activities are notCommercial

Charitable activities undertaken by a public charitable trust without any

profit motive, are not commercial activities. So any purchase of goods made by the

trust for the purpose of carrying its activities is not commercial.

Jaipur Rural Health and Development Trust provides medical facilities,

vocational training, self-employment schemes to the people, both rural and urban. It

bought two Tatamobile Vans from the local dealer which were subsequently found

defective. The Trust therefore prayed for replacement of the defective vehicles or for

the refund of their cost along with interest at 21 percent per annum. The supplier

raised a preliminary objection that the Trust was not a consumer and the vehicles were

purchased for commercial purpose. The State Commission of Rajasthan negatived the

contention and stated that the trust was a "consumer" within the meaning of the term in

the COPRA. As a result, the trust was entitled for the replacement of the defective

vehicles.9

(c) Consumer Dispute

Consumer dispute means a dispute where the person against whom a

complaint has been made, denies or disputes the allegations contained in the

complaint.10

9- Indian Express (Madurai), dated 12th February, 1997, p.7.

10. M. Arulselvam and A.L. Namasivayam, fmidelines Commentary on Consumer. Brotection Act. 1986, Chennai: Malathi Publications, 1993, p. 15.

" " " Urn 1 ' '

1 3 6

The consumer dispute would arise when there is a complaint by a consumer

making allegations against the trader of goods or lender of services, who denies or

disputes the said allegation.

The cases relating to consumer disputes in which legal decisions have

already been taken are given below:

1. Automobiles: Delay in Payment of interest is not a Consumer Dispute

The grievance of the complainant was delay in payment of interest on

advance made by him for the purchase of a car. The National Commission laid down

that such grievance could not constitute the subject matter of adjudication under

COPRA. Here the contract was for sale of goods. There was no arrangement of

rendering services for consideration between the parties and no deficiency in service.

For remedy the complainant should approach the civil court."

2. Chit Funds: Dispute against the Management of Chit Business

Section 64 of the Chit Fund Act, 1982, provides that any dispute touching

the management of chit business shall be referred to the Registrar for Arbitration by

any one of the parties to the dispute. Disputes touching the management of a chit

business includes a claim by or against a foreman for any debt or demand due to him

from a subscriber.

11. Premier Automobile Limited Vs Hiralal Jairam, Consumer Protection Judgements, Vol.111, November 1995, p.438.

13 7

A complainant was a subscriber to a chit conducted by another party. The

chit amount was Rs.5000 and the duration was 40 months and subscription was Rs, 125

per month. He paid subscription for 28 months when the party suddenly stopped the

monthly auction. He filed a complaint in the District Forum and the Forum directed

the party to pay the amount, holding that there was deficiency in service. The State

Commission dismissed the complaint, giving him liberty to refer the dispute to the

Registrar.12

3. Employees' Benefits and Funds: Consumer Forums can not Adjudicate Disputes Involving Scale of Pay

The grievance of the complainants was that they had been deprived of the

higher scale of pay. An employee receiving salary from consolidated fund of the State

is not a consumer. The relief claimed by the complainant involved setting aside a

Government order. If any higher scale of pay is to be given to any section of the

employees in modification of the statutory rules, this cannot be entertained by the

Consumer Forums.n

(d) Deficiency in Service

Deficiency means any fault, imperfection, short-coming or inadequecy in the

quality, nature and manner of performance which is required to be maintained under

12' Indian Express nVfaHnraiy dated 2nd April 1998, p. 7.

13. Sakhvir Singh Vs Superintending Engineer, Consumer Protection Judgements, Vol.1, February, 1995, p.250.

138

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.14

The definition of deficiency' reveals that the fault, imperfection,

shortcoming or inadequecy in service has to be ascertained on the basis of certain

norms related to quality, nature and manner of performance. The services rendered by

professionals like doctors cannot be adjudged on the basis of any fixed norms. Hence

in case any deficiency in service is established, a redressal agency can direct the party

to return the charges paid for the service or to pay such amount as may be awarded as

compensation to the consumer or to remove the defects or deficiency in the service.

The following are the cases related to deficiency in service:

1. Agricultural Services: Failure to Issue the Sale Certificate is Deficiency in Service

The complainant alleged that the tractor sold to him by parties was

defective. He also alleged that the sale certificate was not issued to him in time, thus

depriving him of the necessary permit. Hence the District Forum ordered that the

complainant was entitled to get interest at the rate of 12 per cent per annum on the

price paid by him for the relevant period, besides Rs. 1500/- on account of costs of the

proceedings.15

14' Indian Express (Madurai! dated 2nd January, 1996, p. 7.

15. Lakshman Vs Karnataka Agro Industries Corporation Ltd., Consumer,Prptection Jjidgements, August, Vol.11, 1995, p.369.

139

2. Banking Service: Rejection of Loan Application does not Constitute Deficiency

The complainant had applied for a loan of Rs. 1,05,000 as working capital.

After submission of all the required documents, the application was rejected due to the

uneconomic project proposal It was therefore not deficiency in service, and the

bankers could use their own discretion."'

3. Courier Service: Delivery of Goods without Goods Receipt is Deficiency in Service

The complainant had entrusted to a courier a consignment of 'Neel' used to

whiten clothes, worth Rs. 1,12,500, But the consignment was delivered by the courier

to a third party without goods receipt. Hence it was a deficiency in service and

compensation of actual loss was awarded to the complainant with interest at 15 per

cent per annum.17

4. Education: Student is Entitled to the Refund of Fee if the Course is not Commenced

The complainant had applied for a place in computer course and deposited

the requisite fee. The grievance was that the organisation did not start the course. It

was held that it was deficiency in service and the entrants to the course were entitled to

the refund of the amounts paid by them.1*

16, Manager, State Bank of India Vs Abraham, Consumer Protection Judgements, Vol.1, 1995, p.323.

17, Ultrachem Industries Vs Geetha Roadways, Consumer Protection Judgements, Vol.1, April, p.479.

18, M.K. Yuvaraj Vs V.B. Vishwanath Hiremath, Consumer Protection Judgements, Vol.1, February, 1995, p.291.

1 4 0

5. Telegram Service: Delay in Delivery is Deficiency in Service

The complainant was a lawyer and a social worker. In the ordinary course

of his work he used to send and receive telegrams. It was alleged that the telegrams

did not reach the destinations well in time. It was held that it was deficiency in service

and a compensation of Rs.25000/- was granted.1''

6. Transport: Delay in Running Superfast Train is Deficiency in Service

The complainant pleaded that the Express train in which he travelled was

delayed for long hours without any reason. Additional charges are collected by the

railway from the passengers travelling by superfast trains. In case, trains are delayed

for long hours and the delay has not been properly explained, that amounts to

deficiency in service and therefore the railway is bound to refund the excess charge.20

7. Medical Service: Hospitals Liable for Negligence of Freelance Doctors

If a doctor who is an employee of a hospital commits any act of negligence

resulting in loss or injury to a patient, the hospital is liable along with the doctor to

compensate the patient. If a doctor who is not in the payroll of a hospital but attached

to it as a freelance doctor using the facilities of the hospital, commits any act of

negligence resulting in loss or injury to a patient, he is not directly liable to be charged.

19. Sub-Post Master, Doda Vs Om Parkash Thakur, Consumer Protection Judgements. Vol.1, February 1995, p.291.

20. Chairman, Railway Board Vs S. Bharath, Consumer Protection Judgements, Vol.11, January 1995, p.407,

141

Mrs. Radha was admitted to B.K.M. Hospital, Kerala, on account of a

fracture sustained on her left leg above the ankle. Dr. Sekar examined her leg and

made on operation. But, even when the operation was over, she had some problems in

her leg for which she consulted another doctor and the X-ray showed that there was

some foreign substance left in the leg.

Mrs. Radha filed a complaint against the hopsital management in the Kerala

State Consumer Disputes Redressal Commission. The hopsital management said that it

was the negligence of Dr. Sekar who made the operation and held him liable. But the

State Commission came to the conclusion that the hospital was vicariously liable to pay

a compensation of Rs.2,00,000, though Dr. Sekar was attached to the hospital. There

was the evidence of fees collected by the hospital from Mrs. Radha, a patient. The fee

collected included, a fee of the surgeon, bed charge, nursing charge, service charge,

electricity charge, water charge and so on.21

(e) Defect

Defect means any fault, imperfection or shortcoming in the quality, quantity,

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

the time being in force or as is claimed by the trader in any manner whatsoever in

relation to any goods.22

The following are cases related to defect in goods purchased.

21. Indian Express (Madurai), dated 29th April, 1998, p.7.

22. Gurbax Singh, Law of Consumer Protection. Jaipur: Bharat Law Publication, 1992, p.25.

142

1. Books with Mistakes in Content .Amounts to Defective Goods

Defects in goods purchased by a consumer entitle him to approach the

Consumers Forum for relief Books are goods. So if there is any defect in printing,

binding and so on of a book, the purchaser can approach the consumer redressal

Forums for the replacement of the book or for refund of the price paid. The

complainant purchased an encyclopedia and found some mistakes in the book. He filed

a case in the State Consumer Disputes Redressal Commission. The judgement was in

favour of the consumer and the seller had to refund Rs.575 along with Rs. 100 towards

legal costs."

2. Defects in Goods Purchased

The complainant had purchased a car represented by the party as a

reconditioned one, However after the car was put to use it was not found worthy

despite several visits to the workshop for repairs. In fact it was found that it was a

vehicle involved in an accident. Therefore the party was directed by the Forum to

refund the amount, with Rs. 10000 as fine.24

F. Goods

Goods means all movable goods which are capable of being sold.

Immovable assets such as land and things attached to it like trees, crops and so on are

23. Indian Express (Madurai), dated 2nd July 1997, p.7.

24. Indian Express (Madurai), dated 9th July 1997, p.7.

143

not goods for the purpose of COPRA. When these trees and crops are cut and

served, they become goods.

A person who buys any goods for a consideration is a consumer. The

immovable properties are not goods, hence the purchase of immovable properties does

not come under COPRA/'

Loss in Transporting Goods

A person who entrusts a carrier with any goods for carnage is a consumer

and he is entitled to be compensated by the carrier in case of non-delivery or short

delivery of the goods at the destination.

Patel Roadways failed to deliver 257 generator sets to Birla Yamaha Ltd., in

time. Hence the company made an appeal against Patel Roadways. The case was

decided in favour of the complainant and a compensation of Rs.50,78,231, including

the cost was awarded.26

(g) Service

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

25 Indian Express^ (Madurai), dated 17th January, 1996, p.7. 26- I n d i a n Express (Madurai), dated 20th August, 1996, p.7.

1 4 4

or lodging or both, entertainment, amusement or the purveying of news of other

information but does not include the rendering of any service free of charge or under a

contract of personal service.17

A person who hires or avails of any service for a consideration is a

consumer. The definition of the term service has three parts such as explanatory,

inclusive and exclusive. The main part is explanatory in nature and defines service to

mean "Service of any description which is made available to the potential users."

The inclusive part expressly includes the provision of facilities in connection

with banking, financing, insurance, transport, processing, supply of electrical energy,

housing construction, entertainment, amusement or the purveying of news or other

information.

The exclusive part excludes "rendering of any service free of charge or

under a contract of personal service". The word "any1 and 'potential' in the definition

are significant.

The word 'any' has a diversity of meanings depending upon the context in

which it is used. It may be employed to indicate 'all' or every' as well as 'some' or

'one'. The context in which it is used in the definition of service indicates that it has

been used in its wider sense extending from one to all.

27. Gurbax Singh, op.cit. p.26.

145

The word 'potential' is also very wide. It indicates that service which is not

only extended to actual users but those who are capable of using it, are under the

definition.

The following are cases related to this concept.

1. Granting Passports by Authorities are not Service for Consideration

The grievance of the complainant was that for about 18 months his

application for a passport was not decided by the party. The State while issuing

passport is not providing any service for consideration. It is the policy of the

Government relating to matters of security, immigration and emigration. Hence it is

not a service within the meaning of COPRA.:s

2. Failure to Regulate Distribution of Water Supply Properly is Negligence of

Service

The grievance of the complainant was irregular supply of water. It is the

obligation of the welfare state to provide supply of water to the residents of a town,

city or village atleast one or two hours every day. Since the Water Board has not

taken any steps against the water problem, it was considered negligence of service.29

28. Ganapathy Vs Regional Passport Officer, Consumer Protection Judgements, Vol.1, April, 1995, p.346.

29. Cantonment Board, Nasirabad Vs Nemi Chand Sethi, gansumgr Protection Judgements. Vol.1, April 1995, p.427.

3. Medical Services: Negligence Leads to Death 146

The complainant's husband expired due to negligence on the part of the

hospital to diagnose the disease. It was held that service rendered by the hospital and

the members of medical profession for consideration constituted service as defined in

the Act,30

4. Rea! Estates: ReaS Estate Agents and Consumer Rights

Service rendered by the real estate agents and property brokers clearly falls

within the definition of service' under the COPRA'. A person who avails himself of

their service is a consumer and he can approach the consumer forum in case there is

any deficiency in the service. This was the clear stand taken by the National

Commission in a recent case.

A complainant had hired the services of a real estate agent and paid

Rs.90,000 as advance for the purchase of a flat. But the agent did not materialise it.

When a case was filed, he told the commission that the service rendered by him did not

fall within the definition of service'. The appeal was dismissed by the Commission,

because for this service the agent has got a commission of 2 per cent of the price at

which the property was sold.11

30. Anoop K. Kaushal, Universal'sPractical. GujdeijoConsumer Protection Law, Delhi:

Universal Book Traders, 1994, p. 159 31 ' Mian Express (Madurai), dated 20th September 1995, p. 7.

14 7

II. Consumer Protection Councils

Legally there are two councils such as

1. The Central Consumer Protection Council

2. The State Consumer Protection Council

Central Consumer Protection Council

The Central Government by notification has established with effect from

July 1987, a Council to be known as the Central Consumer Protection Council.'2 The

main object of this Council is to promote and protect the rights of the consumers. The

Council provides a platform for discussion of consumer problems and would advise the

concerned State and Central Governments on policies and programmes to safeguard

the consumers' interests. The Council consists of 150 official and non-official

members.

a) The minister in-charge of the Department of Civil Supplies is the

chairman of the Central Council.

b) The minister of State or deputy minister in the Department of Civil

Supplies is the vice-chairman of the Council.

32. M.S. Ramasamy, The Consumer Protection Act, 1986, Chennai: S. Sitaraman & Co., 1996, p. 10.

148

c) The Central Council consists of the minister of Food and Civil Supplies

or minister in charge of consumer affairs in States.

d) Eight members of Parliament, five from the Loksabha and three from the

Rajaya Sabha.

e) The Commissioner for Scheduled Castes and Scheduled Tribes.

f) Representatives of the Central Government Departments and

autonomous organisations concerned with consumer interests not exceeding twenty.

g) Representatives of consumers organisations or consumers not less than

thirty-five.

h) Representatives of women not less than ten.

i) Representatives of farmers, trade and industries not exceeding fifteen.

j) The Secretary in the Department of Civil Supplies.33

The term of the Council is three years. The meeting of the council is

presided over by the chairman. In the absence of the chairman, the vice-chairman

presides over the meeting. In the absence of the chairman and the vice chairman, the

central council elects a member to preside over the meeting of the Council. The

meeting of the Council is held only after giving proper notice.

33. Gurbax Singh, op.cit., pp. 195-196.

14 9

State Consumer Protection Council

State Governments may establish Consumer Protection Councils for the

respective states consisting of the minister in charge of consumer affairs in the State

Government as its chairperson and other official or non-official members representino

such interests as may be prescribed by the State Government. The State Council

should hold atleast two meetings every year. The object of every State Council is to

promote and protect the rights of consumers within the State.

III. Consumer Disputes Redressal Agencies

The Act seeks to provide simple and effective remedy to the grievances of

the consumers. For this purpose, the following consumer Dispute Redressal Agencies

have been established.

1. District Consumer Disputes Redressal Forum (DCDRF)

2. State Consumer Disputes Redressal Commission (SCDRC)

3. National Consumer Disputes Redrssal Commission (NCDRC)

1. District Consumer Disputes Redressal Forum

A District Consumer Disputes Redressal Forum is known as the District

Forum established by the State Government in each district of the state with the prior

approval of the Central Government. Generally the District Forum is located within the

district court buildings. However in some of the districts, it is situated in other building

for want of space in the district court buildings.

1 5 0

FIGURE 4.1

AUTHORITIES UNDER THE CONSUMER PROTECTION ACT jDiagrammatic Representation]

Redressal Machinery

Authority for Appeal Conditions

Appellate Authority for National Commission

Appellate and Revisional Authroity For State Commission

Appellate and Revisional Authority for District Forum

Original Jurisdiction above 20 lakhs.

Original Jurisdiction above 5 Lakh and upto 20 Lakhs

Original Jurisdiction upto 5 Lakhs.

151

The District Consumer Disputes Redressal Forum (DCDRF) consists of a

president and two members. The president is generally a District Judge or a person

who is qualified to be a District Judge. The other two members are chosen by a

committee consisting of the President of the State Commission, Secretary of the law

department and the Secretary of civil supplies and consumer protection, in the

respective states. The two members shall be persons of integrity and ability with

knowledge of economics, trade, public affairs and so on. Of the two members, one

shall be a woman member.34

The members can hold office for a period of five years or upto the age of 65

years whichever is earlier. They are not eligible for reappointment. They draw salary

and other allowances as prescribed by the State Government.

The District Forum entertains original jurisdiction only as it is at the bottom

of the consumer courts' hierarchy. It entertains complaint where the value of goods or

services and the compensation if any claimed is less than Rs.5 lakhs. It entertains

complaint in which the complainant or any one of the persons against whom a

complaint is made resides or carries his business in that district. The place where the

opposite party or parties reside or carry on business including branches or where the

cause of action arises also come under the jurisdiction of District Forum.

34. M. Arulselvam and A.L. Namasivayam, op.cit., p.37.

152

There is a rule that the District Forum should decide the complaint within 90

days from the date of notice received by the opposite party where the complaint does

not require analysis or testing of goods and within 150 days if it requires analysis or

testing of goods.

For the settlement of complaints, the order will be communicated to the

concerned parties free of charge. If the order is not executed, then the Forum has the

right to punish the person by imprisonment for a period not less than one month which

may extend upto three years or a fine with a minimum amount of Rs.2000 which may

extend upto Rs. 10000 or with both, The Forum has also the right to dismiss the

vexatious or frivolous complaints and fine the complainant a sum of Rs. 10000. This

penalty was included in 1993 by amending the Consumer Protection Act, 1986.

If any person is aggrieved by the order of a District Forum, he can appeal to

the State Consumer Disputes Redressal Commission within 30 days on receipt of the

order of the District Forum. An appeal will be entertained beyond this time limit only

when valid reason is given for the delay. Along with the appeal, a copy of the District

Forum's order has to be submitted and the reason for the appeal has to be stated.

Number of cases filed in and Disposed of in DCDRF in Tamil Nadu

Table 4.1 shows the details of cases filed and disposed in the District

Forums of Tamil Nadu. Initially the forums received minimum number of cases, but

the number of cases increased due to the awareness of consumers' rights andprotection.

In 1992, the cases filed increased rapidly, but in 1993 and after there was not much of

153

significant progress, because of the effective functioning of voluntary consumer

organisations and appointment of judicial staff after 1992.

The District Forum sends information to the other party soon after the cases

are filed. The cases are disposed of as early as possible. The number of cases disposed

of has increased from 1991 to 1995. The Forums had disposed of many cases as it can

be seen from the Table 4.1.

TABLE 4.1

Number of Cases Filed and Disposed of in DCDRF in Tamil Nadu

Sl.No.

1.

2.

3.

Particulars

Number of Cases filed

Number of Cases disposed of

Number of Cases settled within 90 days

1991

.3384

1884 (56)

N.A.

1992

7212

3882 (54)

1697 (24)

1993

8322

5318 (64)

1326 (16)

1994

6146

5249 (85)

1304 (21)

1995

5471

6591 (120)

1241 (23)

Source: Monthly Statement of the Report of the DCDRF.

N.A. -Not available.

Figures in brackets indicate the percentage to the total number of cases filed.

Though the Forums have to redress consumers' grievances within 90 days,

in practice, they are not able to do so due to the lack of trained and sufficient staff,

frequent absence of members of the Forum and irregular appointments of members and

Presidents of the Forums. It is evident from Table 4.1 that during 1992 only 24 per

155

cent of the cases had been settled within 90 days to the total number of cases filed,

while in 1995 23 per cent of the cases were settled within the prescribed period.

Details of Cases Disposed of in the DCDRF

The number of cases disposed of in favour of consumers had decreased from

54 per cent in 1992 to 46 per cent in 1995 (Table 4.2). This reveals that genuine

complainants are not forth-coming as it demands more awareness of legal implications.

This is supported by the fact that the cases decided against the consumers and cases

rejected on some technical ground had increased.

TABLE 4.2

Details of Cases Disposed of in DCDRF in Tamil Nadu

Sl.No.

1.

2.

3.

4.

Particulars

Number of Cases disposed of

Number of Cases disposed of in favour of the consumers

Number of Cases disposed of against the consumers

Number of Cases rejected on technical grounds

1991

1884

N.A.

N.A.

N.A.

1992

3882

2085 (54)

965 (25)

832 (21)

1993

5318

2813 (53)

1348 (25)

1157 (22)

1994

5249

2163 (41)

1432 (27)

1654 (32)

1995

6591

3045 (46)

2002 (30)

1544 (24)

Source: Monthly Statement of the Report of the DCDRF.

N.A. - Not available.

Figures in brackets indicate the percentage to the total number of cases disposed of.

157

Profile of Selected Sample District Consumer Disputes Redressal Forums

The Researcher has selected seven DCDRF as samples to study their profile.

The Redressal forum is a quasi-judicial body, functioning throughout the year It has

no summer vacation as enjoyed bv the civil and criminal courts The following are the

profile of sample DCDRF

Number of Staff Members in the Sample DCDRF

Table 4 3 shows the number of Stall" members working in the Consumer

forums. As per the present norms of the Government, each Consumer forum should

have one head clerk, one typist, one lower division clerk and two office assistants, but

initially it was operated only by two Staff members The number of Staff members has

been raised due to the heavy work-load Among the seven selected sample forums,

one forum was established in ll>('>5 and another forum has the maximum of 12 Staff

members due to the large number of cases filed in the forum.

158

TABLE 4.3

Functioning of Consumer Forums

The Consumer Forum functions with a president and two members,

appointed by the State Government (ieneraly the members are nominated from among

the people residing within the District The forum cannot function in the absence of the

President But it can function even if one member is present along with the President.

Membership is for five years The Consumer forums were established by the

Government of Tamil Nadu during I WO and the members resumed work during

Septemebr and October 1090 They retired in the same months of 1995, But the

Government has not appointed new members in the vacancies, in the case of 5 forums

out of the 7 sample selected forums, due to change of Government. Hence all the 5

forums did not function for more than one year (fable 4.4).

TABLE 4.4

Functioning of the Consumer Forums

59

Categorywise Classification of the Cases

Consumers Disputes Redressal Machinery entertains and redresses

grievances which come under COPRA Tabic 4 5 shows the details of cases filed in

different areas The cases relating to unfair trade practices were more during 1991 and

the rest of the four years the majority of the cases were related to finance and Chit

Funds followed by other categories Simlarly the least number of cases filed belonged

to educational and medical services This may be due to the fact that the medical

serivces were brought under COPRA only at the end of 1995. Though teachers and

students are not consumers, the deficiency of service of the eductional institutions can

be brought under the Act

160

161

Sources for Filing Cases

The Consumer can file cases directly or through various sources like

voluntary consumer organisations, eminent lawyers and others. The officials of the

sample Consumer Forums stated that consumers should come forward to file cases by

themselves, not through other agencies, in order to avoid unnecessary expenses.

Moreover, the consumers can file cases directly due to the fact that they need not

follow any formalities as in the Civil Court.

Table 4.6 shows that a majority of the Consumersfiled cases through

lawyers. The cases filed through direct source has increased from year to year due to

the awareness of the benefits During 1WI, about 33.08 per cent of the Consumers

filed cases through voluntary Consumer Organisations and thereafter the percentage of

cases filed through this sources has declined The main reason is that after 1991

majority of the cases were settled by the Organisations themselves.

TABLE 4.6

Source: File Board of the DCDRF

162

163

Time Required to send Notice

When complaints are given by consumers, the forum is expected to send

notice to the other party within a short span of time. Table 4.7 shows that a large

number of forums took more than 6 days to send notice of the complaint to the other

party. The prominent reasons specified by the officials of the forums include heavy

workload, insufficient and inefficient Staff members and the non-cooperation of staff

members of the forum.

TABLE 4.7

Time Required to send Notice from the Date of Filing Cases

Sl.No.

1.

2.

3.

4.

Days

Less than 2 days

2 - 4 days

4 - 6 days

Above 6 days

Total

Number of Sample forums

2

2

3

7

Percentage to Total

28.57

28.57

42.86

100.00

Time taken by the Forums to send Notice

There is no clear provision in COPRA for the time to be taken to send

notice to the other party. But as per COPRA the other party should give his reply

within 30 days of receiving the notice from the forum. The researcher has collected

information for 20 cases from each sample forum's record for the year 1995 to find out

the time actually taken to send notice to the other party. Table 4.8 shows that in

majority of the cases the time taken is between 8 to 16 days and only in a few cases the

forum has taken more than 16 days.

165

Settlement of Cases Within 90 days

As per COPRA, 1986, the forums have to settle the Consumers grievances

within 90 days from the date of notice received by the opposite party. It is clear that

about 71.43 per cent of the forums did not settle their cases within 90 days (Table 4.9).

According to the information furnished by the authorities working in the forums,

insufficient and untrained Staff member, heavy workload, lack of time and the lack of

cooperation among the Staff members were prominant reasons for their inability to

complete the cases within 90 days.

TABLE 4.9

Settlement of Cases within 90 days

Sl.No.

1.

2.

Settlement

Settled within 90 days

Not settled within 90 days

Total

Number of Sample forums

2

5

7

Percentage to Total

28.57

71.43

100.00

166

TABLE 4.10

Reasoos for Non-Settlement of Cases within 90 days

Sl.No.

1.

2.

3.

4.

5.

Reasons

Insufficient Staff Members

Lack of time

Lack of trained and experienced persons

lack of cooperation of the Staff Members

More Cases received

Number of Sample forums

3

4

1

3

4

Percentage (N = 7)

42.86

57.14

14.29

42.86

57.14

Base for Disposal of Cases

When consumers file cases in the forums, the cases have to be disposed of

on some basis. It is seen from Table 4.11 that original petition number (O.P. Number)

(57.14%), pressure from the petitioner (42.86%) and pressure from the other party

(42.86%) are the main basis for the disposal of the cases.

167

TABLE 4.11

Basis for Disposal of Cases

Sl.No.

1.

2.

3.

4.

5.

Basis for disposal

O.P. Number

Pressure from the lawyer

Pressure from the petitioner

Pressure from the other party

Nature of the case

Number of Sample forums

4

1

3

3

2

Percentage (N = 7)

57.14

14.29

42.86

42.86

28.57

Circumstances Leading to the Dismissal of Cases

Consumer forums reject frivolous or vexatious complaints. They also reject

cases on technical grounds. They consider cases which come under COPRA. As could

be seen from Table 4.12 a majority of the cases are dismissed due to the absence of the

petitioner or the absence of the other party, or due to settlement out of court or

irrelevance. Sometime ex-parte judgement is given in the case of continued absence of

one party.

168

TABLE 4.12

Circumstances Leading to the Dismissal of Cases

Sl.No.

1.

2.

3.

4.

Particulars

Absence of the petitioner

Absence of the opposite party

Endorsement made and settlement out of the forum

Irrelevant cases

Number of Sample forums

5

4

3

3

Percentage (N = 7)

71.43

57.14

42.86

42.86

Grant of Compensation

The aggrieved consumer gets award of compensation from the other party

through the Consumer forum. Normally the forum asks the other party to remit the

prescribed amount (based on decree) as compensation within the prescribed time. The

petitioner can get compensation from the party after producing the copy of the decree

awarded by the forum.

Period for the Execution of the Judgement

The award of compensation reaches the affected parties through the forum.

But they are not getting any signature from both the parties. As per COPRA, the other

party has to execute the judgement within 30 days. But in practice, it is not done.

Hence effective steps should be taken to execute the decree within the above period.

Table 4.13 shows that the execution period has exceeded 90 days in two sample

forums. It is worthwhile to note that the judgement has not been executed by any of

169

the sample forums within the prescribed time. This reveals the ineffectiveness in

implementation of the legal measures taken through COPRA, 1986.

TABLE 4.13

Period Taken for the Execution of Judgement

Sl.No.

1.

2.

3.

4.

Days

Less than 30 days

30 to 60 days

60 to 90 days

Above 90 days

Total

Number of Sample forums

-

2

3

2

7

Percentage to Total

-

28.57

42.86

28.57

100.00

Punishment for Non-execution of Judgement

In Consumer forums the execution of the judgement is very difficult than in

the Civil Court, because in the Civil Court, adequate powers for execution are there.

Table 4.14 shows the remedial measures for non-execution of judgements in consumer

forums. Five sample forums (71.43%) reported arrest and attachment of property, two

forums (28.57%) did not specify any particular process of punishment and the

remaining two forums (28.57%), reported arrest of persons under COPRA as remedial

measures for the non-execution of judgement.

170

TABLE 4.14

Remedial Measures for Non-execution of the Judgement

Sl.No.

1.

2.

3.

Remedy

Arrest and attachment of property

Arrest under COPRA

No specific procedure

Number of Sample forums

5

2

2

Percentage (N = 7)

71.43

28.57

28.57

Details of Cases Filed and Disposed

Out of 7 selected sample forums one was established after 1994. During

1991 a majority of the forums have received less than 250 complaints. During 1992,

1993 and 1994, a large majority of the forums received complaints between 250 and

above 750. But during 1995 a large number of forums received complaints below 500

because out of 7 selected forums, 5 forums did not operate for about one year due to

the non-appointment of members. Regarding the cases disposed of a majority of the

forums showed the disposals to be 250 and below 500 in all the five years. During

1991 and 1995 all the selected forums settled only less than 250 cases within 90 days

and the rest of the years the cases settled were between 250 and 750.

171

172

Suggestions to Improve the Functioning of Consumer Forums

The senior staff members of the sample forums were asked to give

suggestions to improve the functioning of the forums. The suggestions made by them

are shown in Table 4.16. The stated suggestions include the appointment of sufficient

Staff, more power to the forum to give interim injunction, steps to rectify consumer

organisations, not functioning properly and appointment of judicial staff without delay.

TABLE 4.16

Suggestions to improve the Functioning of the Consumer Forums

SI.No.

1.

2.

3.

4.

5.

6.

7.

Suggestions

Appointment of sufficient staff members

Regularising the staff members

Motivation for staff members

Powers for issuing interim injunction

Infrastructure facilities

Steps to rectify consumer organisations not functioning properly

Appointment of judicial staff members without delay

Number of Sample forums

5

3

4

6

2

5

5

Percentage (N = 7)

71.43

42.86

57 14

85.71

28.57

71.43

71.43

173

Profile of the Employees Working hi the Forums

The effective functioning of any organisation depends mostly on its

employees. If the employees posted in consumer forums are efficient and properly

motivated, the problems in disposing of cases can be minimised. It is therefore,

necessary to collect information about the employees background. Table 4.17 shows

the profiles of the employees working in the selected sample DCDRF. At the time of

study there were 41 employees working in the selected forums. All head clerks and

office assistants were males and there was however no male in the steno-cum-typist

category. In total a majority of the Staff members were males.

A majority of the head clerks, steno-cum-typists and bench clerks were

below 40 years of age. Similarly a large number of office assistants were above 40

years of age.

All office assistants of the forums had eighth standard qualification and a

greater number of head clerks and bench clerks were graduates and professionally

qualified. The monthly income of the employees varied from Rs.2000 to 6000, but no

one was getting less than Rs.2000 and only a few were drawing above Rs.6000.

Though the office assistants and head clerks had more experience in Civil Court work,

their experience in consumer forums appeared to be very limited.

174

All head clerks were deputationist. a few of other Staff members were

temporary and some were permanent. By and large a majority of them had come on

deputation and hence they did not show sufficient involvement.

A greater number of office assistants were not satisfied with the working

conditions because they had no scope for promotion. In total a majority of the

employees were not satisfied with their jobs.

175

TABLE 4.17

Problems of the Employees of the Forums

Employees complained of heavy work load (51.30),the temporary nature of

the jobs (29.27%) and no qualifying tests for promotion (31.71%) as the major

problems. Some pointed out the absence of motivation in work (7.32%), lack of scope

for promotion (14.63%) and lack of infrastructural facilities (7.32%) as their problems.

Table 4.18 gives the details.

TABLE 4.18

Problems of the Employees of the Forums

Sl.No.

1.

2.

3.

4.

5.

6.

Problems

Heavy work load

Temporary nature of job

Absence of motivation

Lack of scope for promotion

No qualifying test for promotion

Want of infrastructural facilities

Number of Employees

21

12

3

6

13

3

Percentage (N = 41)

51.30

29.27

7.32

14.63

31.71

7.32

Suggested Solutions

Out of the total, 58.54 per cent of the employees wanted their jobs to be

made permanent. Nearly one-third (31.7%) suggested regularisation. Other

suggestions were the introduction of infrastructural facilities (9.76%), Steamlining the

176

177

promotion procedure (31.71%) and appointment of sufficient staff members (41 46%)

in order to reduce the burden of work

TABLE 4.19

Remedies for the Problems of the Employees

Sl.No.

1.

2.

3.

4.

5.

Remedies

Making the jobs permanent

Regularising the appointment

Providing necessary infrastructural facilities

Steamlining the promotion procedure

Appointment of sufficient staff members

Number of Employees

24

13

4

13

17

Percentage (N = 41)

58.54

31.71

9.76

31.71

41.46

2. State Consumer Disputes Redressa! Commission

The State Consumer Disputes Redressal Commission (SCDRC) which is

known as State Commission, is situated in the State capital, ft also has three members

as in the District Forum. A person who is or has been a judge of a High Court is

appointed as the President of the State Commission. Two other members, of which

one shall be a woman of ability, integrity and standing and with eminence in the field of

economics, law, commerce, accountancy, industry, public administration, are appointed

by the State Government. The President of the State Commission, Law Secretary and

Consumer Protection Secretary act as a Committee to select the two members and

recommend to the State Government for appointment. The tenure of these members

are similar to that of members in the District Forum.

178

The commission entertains complaints where the value of goods or services

and compensation if any, claimed exceeds Rs.5 lakhs but does not exceed Rs.20 lakhs.

It entertains appellate jurisdiction against the orders of any District Forum within the

state. It can call for the records and pass appropriate orders in any consumer dispute

which is pending before or has been decided by any District Forum within the State if

such a District Forum had exercised a jurisdiction not vested in it by law or failed to

exercise its jurisdiction legally or exercised with material irregularity.

It follows the same procedures of the District Forum for disposal of

complaints. The time limit for disposal of cases is also the same. Appeal against the

order of the State Commission can be made to the National Commission by the

aggrieved person within 30 days of the receipt of order from the State Commission.

Details of the Cases Filed in the Tamil Nadu SCDRC

The SCDRC entertains original and appeal cases. The number of cases filed

through original petition had decreased from year to year, but the percentage of cases

disposed of showed an increasing trend. About 28 per cent of the cases were settled

within 90 days in 1992 while in 1995, 49 per cent of the cases were settled. (Table

4.20). The cases filed through appeal petition showed an increasing trend and the

majority of the cases were disposed of. Table 4.3 reveals that 46 per cent, 58 per cent,

32 per cent and 54 per cent of the cases were settled within 90 days out of the total

number of cases of appeal in 1992, 1993, 1994 and 1995 respectively. The Table also

shows that the cases of appeal were more than the cases filed through original petition.

179

TABLE 4.20

Number of Cases Filed and Disposed of in the Tamil Nadu SCDRC

Sl.No.

1.

2.

3.

1.

2.

3.

Particulars

Original Petition

Number of Cases filed

Number of Cases disposed of

Number of Cases decided within 90 days

Appeals

Number of Cases on appeal to the SCDRC

Number of Cases disposed of by the SCDRC

Number of Cases decided within 90 days

1991

289

154 (53)

N.A,

241

145 (60)

N.A.

1992

593

358 (60)

166 (28)

658

408 (62)

300 (46)

1993

470

381

(81)

234 (50)

689

673 (98)

402 (58)

1994

298

341 (114)

248 (83)

973

430 (44)

316 (32)

1995

230

160 (67)

117 (49)

1552

1244 (80)

841 (54)

Sources: Monthly Statement of Report of the SCDRC, Madras.

N.A. - Not Available.

Figure in brackets indicate percentages to the total number of cases filed and appealed.

182

Details of Cases Disposed of in the SCDRC

In the five years, only in 1992 and 1995, the judgements of the majority of

the cases were in favour of the consumers as compared to the total number of cases

disposed of in both the original and appeal cases. Similarly, a few cases were rejected

on technical grounds In comparison to the cases filed through original petition, a

maximum number of cases were disposed of against the consumers in appeal cases.

183

TABLE 4.21

Details of the Cases Disposed of in the SCDRC

Sl.No.

1.

2.

3.

4.

1.

2.

3.

4.

Particulars Original Petition

Number of Cases disposed of

Number of Cases disposed of in favour of Consumers

Number of Cases disposed of against the Consumers

Number of Cases rejected on technical grounds

Appeals

Number of Cases disposed of by the SCDRC

Number of Cases disposed of in favour of Consumers

Number of Cases disposed of against the Consumers

Number of Cases rejected on technical grounds

1991

154

N.A

N.A.

N.A.

145

N.A.

N.A.

N.A.

1992

358

218 (61)

84 (23)

56 (16)

408

327 (80)

19 (5)

62

(15)

1993

381

187 (49)

130 (34)

64 (17)

673

324 (48)

315 (47)

34

(5)

1994

341

145 (43)

153 (45)

43 (12)

430

198 (46)

222 (52)

10 (2)

1995

160

92 (58)

63 (39)

5 (3)

1244

663 (53)

553 (44)

28 (3)

Sources: Monthly Statement of Report of the SCDRC, Madras.

N.A. - Not Available.

Figure in brackets indicate percentages to the number of cases disposed of,

186

National Comsiimcr Disputes Rcdrcssal Commission

National Commission is located in New Delhi. It consists of five members

The President is a sitting or retired judge of the Supreme Court, appointed by the

Central Government after consultation with the Chief Justice of India. The four other

members are persons of ability, integrity and standing, eminent in dealing with

problems related to economics, law, commerce, industry or public administration and

one of them is a woman. The four members arc appointed by the Central Government

on the recommendation of a Selection Committee consisting of the following:

1. A Chairman, usually a person who is a judge of the Supreme Court,

nominated by the Chief Justice of India.

2. Secretary of the Department of Legal Affairs in the Government of India.

3. Secretary of the Department dealing with Consumer Affairs in the

Government of India.

The commission has original jurisdiction over complaints where the value of

goods or services and compensation if any claimed exceeds Rs.20 lakhs. It also

entertains appeals against the orders of any State Commission. It can call for records

and pass appropriate orders in cases where State Commission had exercised a

jurisdiction not vested in law or has failed to exercise its jurisdiction or has exercised

its jurisdiction illegally or with material irregularity.35

35. M.S. Ramasamy, op.cit.. p.7.

187

The procedure for disposal of cases is similar to the procedure in the District

Forum. The appeal against the orders of the National Commission can be made to the

Supreme Court within 30 days of receiving the orders from the National Commission.

If delayed, proper reason has to be given along with the appeal.

The National Commission disposed of all the cases in the first few years of

its formation. It entertains the original, first appeal and revision petitions. Table 4.22

shows the number of cases filed and the increase in pending cases from year to year. In

1993, the cases pending in original and first appeal were more than in the previous

year. There was no pending case during the first three years of its establishment in

original and first appeal. Due to the awareness among people, cases filed had

increased. Similarly the pending cases had also increased due to the non-appointment

of the president, members and sufficient staff members. The number of cases filed

through original petition were less than the first appeal and revision petition. It can be

inferred that many of the consumers were not satisfied with the decree of the State

Commission, hence they were appealing to the Appellate Court.

I

192

From the foregoing discussion, it is clear that about 50 per cent of the

judgements were in favour of the consumers as against the total number of cases

disposed of in the District Forums and State Commissions. The number of cases filed

had increased despite the legal measures taken by the Government at different levels.

The redressal machineries at District and State levels were not able to settle the

grievances of consumers due to insufficient and untrained Staff members, irregular and

improper appointment of members lo the Forums.

Complaint

Complaint is an allegation made by one person against another. A

complaint may be filed in relation to any goods sold or delivered or agreed to be sold

or delivered or any service provided or agreed to be provided. The following are the

ways in which a complaint is made.

i) It can be filed by the consumer himself who has been affected by any

goods bought or service hired for a sum paid.

ii) It can be filed through any recognised consumer voluntary organisation.

It is not necessary that the complainant be a member of that Organisation.

iii) It can be filed through advocates.

iv) It can be filed through a number of consumers having the same interest.

v) It can be filed by the Central or the State Government.

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Procedure to be followed for filing Complaints before the District Forums/State Commissions

A complaint is presented by the complainant in person or by his authorised

agent or sent by registered post to District Forum/State Commission. It contains the

following particulars

a) The name, description and address of the complainant.

b) The name, description and address of the opposite party or parties.

c) The facts relating to the complaint, when and where it arose.

d) The documents in support of the allegations contained in the complaint.

e) The relief or compensation claimed by the complainant.

Number of Copies of a Complaint to be filed

Normally five copies of a complaint are attached while filing in a District

Forum, because one copy is used for office reference, one copy is sent to the opposite

party and each member of the District Fomrn gets a copy. If a number of opposite

parties is more than one, then for every additional party, one copy has to be sent.

Causes for Which the Complaint can be filed

A complaint can be filed under the following circumstances:

i) For defects in goods bought, that is, for deficiencies in quality , quantity

or standard, as claimed by the buyer.

ii) If the price charged is more than the prescribed rate of the goods.

194

iii) For deficiency in service like time defaults or neglect of duty or mistake

in service and so on.

iv) For any unfair trade practice like false representation of standards,

quality or quantity, false warranty or guarantee of service, the conduct of lottery,

games of chance or skill or misleading offer of gifts so as to promote the sale of a

product36.

Procedure to be foHwed by the District Forums/State Commission on recipt of the complaint

The District Foaims/State Commission/ on receipt of a complaint verifies

first, whether the complaint is within the jurisdiction of their Forums and contains the

necessary details. Then it allots a number to it, which is known as the complaint

number. This process is done within 3 days in the office of the Forum".

It sends a copy of the complaint to the opposite party with a summon to

reply within 30 days. The opposite party may deny or dispute the allegations contained

in the complaint or completely omit to take any action to represent the case in the

District Forums within the time-frame. Then the District Forums will settle the case

giving a reasonable opportunity to the complainant as well as to the opposite party for

giving their views. An appropriate order is issued.'

36- IndjanExpress (Madurai), dated 12th March 1997, p.7.

37. Yashood Vardhan, Consumerism and Consumer Protection Laws, Madras: Education and Aid Society, 1994, p.29.

195

If a sample of the goods has to be sent for verification to an analytical

laboratory, then the District Forum sends it to an appropriate laboratory along with

proper directions.

The complainant has to bear the laboratory expenses. After receiving the

report, the case is settled and appropriate order is issued (The model form of complaint

is shown in Appendix-E).

Relief Available to Consumers

The Redressal Forum may order the following reliefs.

a) Removal of defects in the goods

b) Replacement of the goods

c) Refund of the price paid or

d) Award of compensation for the loss suffered or injury sustained.

IV. Allied Acts

In the foregoing analysis, the various aspects of Consumer Protection Act,

1986 was dealt with. There are Acts allied to Consumer Protection Act, 1986, under

which the legal measures are taken up by the government. These allied Acts are

discussed in brief to highlight the important features and purposes.

196

1. Indian Penal Code, I860

The Indian Penal Code, 1860 contains certain provisions which are

worth-noting in connection with Consumer protection. It provides penalties for

offences relating to weights and measures, factors affecting public health, and

counterfeiting the property mark. Sections 264 to 267 of the Indian Penal Code,

1860,(IPC) relate to fraudulent use of instruments for weighing, fraudulent use of

weights and measures. Anyone in possession of false weights or measures and using

them to further his interest is liable to be punished with imprisonment of either

description for a term which may extend to one year or with fine or with both.

From the above provisions, it is obvious that these offences are based on the

doctrine ofmensrea.38 The knowledge regarding the false weights or measures or their

fraudulent use is necessary to constitute an offence. It is to be noted that provisions

regarding the establishment of standards of weights and measures and the enforcement

of the standards and for matters connected therewith, have been incorporated in the

Standards of Weights and Measures Act, 1976 and Standards of Weights and Measures

(Enforcement) Act, 1985. However the IPC, 1860 and the Standards of Weights and

Measures Act dealing specifically with weights and measures, are independent of each

other.

38. Gurbax Singh, op.cit. p.76.

197

The IPC further provides in sections 272 to 276 punishments for

adulteration of food or drink intended for sale, the sale of noxious food or drink,

adulteration of drugs, sale of adulterated drugs and the sale of a drug as a different

drug or preparation of such drugs. Punishments include imprisonment of either

description for a term which may extend to 6 months or with fine which may extend to

Rs.1000 or with both. Section 277 and 278 also deal with voluntary corrupting or

fouling the water of public spring or reservoir, so as to render it less fit for the purpose

for which it is voluntarily used and making voluntarily atmosphere noxious to health of

persons in general dwellings or carrying on such business in the neighbourhood or

passing along a public way shall be punished with imprisonment of either description

for a term which may extend to three months or with fine which may extend to Rs.500

or with both. Besides, section 486 deals with selling or having for sale goods marked

with counterfeit property mark. Such actions shall be punished with imprisonment of

either description for a term which may extend to one year or with fine or with both.

It is to be noted that the IPC provisions connected with offence against

drugs are different from the Drugs and Cosmetics Act, 1940. The Drugs and cosmetics

Act provides for regulation of import, manufacture, distribution and sale of drugs and

cosmetics. It is also to be noted that Water (Prevention and Control of Pollution) Act,

1974, the Air (Prevention and Control of Pollution) Act, 1981 and the Environment

(Protection) Act, 1986 provide specifically for prevention and control of pollution of

water, air and environment.

198

2. Indian Contract Act, 1872

Under this Act, all agreements are contracts if they are made with the "free

consent" of the parties competent to contract, for a lawful consideration and with

lawful object and are not expressly declared to be void under the Act. Consent is said

to be free when it is not caused by coercion or undue influence, fraud,

misrepresentation or mistake in certain cases. When consent to an agreement is caused

by coercion, fraud, misrepresentation or undue influence, the agreement is a contract

voidable at the option of the party whose consent was so caused, while the agreement

is void where both the parties are under a mistake as to matter of fact39.

3. Usurious Loans Act, 1918

Many a time, Loans carry interest at exorbitant rates. These Loans may be

in money or in kind. The Usurious Loans Act, 1918 gives powers to courts while they

deal with such transactions. This Act provides that in any suit to which this Act

applies, whether heard exparte or otherwise, if the court has reason to believe that the

interest rate is excessive and the transaction between the parties are unfair.40 The

Court may exercise its power to reopen the transaction, verify the account between the

parties, relieve the debtor of all liability in respect of any excessive interest and set

aside either wholly or in part or revise or alter any agreement made for loan. But the

39. Anoop K. Kaushal, op.cit.. p. 16. 40- S.S. Gulshan, Consumer Protection and Satisfaction Legal and Managerial

Dimensions, New Delhi: Manas Publication, p. 123-124.

199

Court cannot excerise its authority, if the loan agreement had been made 12 years

before and if anything affects the decree of a Court.

Agricultural Produce (Grading and Marking)Act, 1937.

This legislation was enacted in 1937 to provide for the grading and marking

of produce. The term "agricultural produce" includes all produce of agriculture or

horticulture, and all articles of food or drink wholly or partly manufactured from any

produce and fleeces and the skins of animals. Under the Act, the Central Government

is empowered to make mles regarding prescription of grade designation as indicative of

the quality of any scheduled article included in the schedule to the Act. This Act is a

legislation for standardizing and grading of agricultural produce in India. The

certification mark under the Act is popularly known as "AGMARK". The grade

standards are based on both physical characteristics and internal attributes or qualities

such as weight, size, shape, colour, foreign material, physical damage, moisture and the

like. Specification for both physical and internal characteristics are actually worked out

after analysis of representative samples of each commodity and after discussion with

representatives of producers, merchants, exporters and so on.

This Act is implemented by the Directorate of Marking and Inspection. This

certification system adopted to ensure quality is operated on a voluntary basis except

for export products where it is compulsory. The Act has provided that the Central

Government or State Government or any officer authorised by it in writing or the

aggrieved persons or recognised Consumer associations are entitled to make a

200

complaint for taking cognizance of an offence punishable with imprisonment upto three

years or with fine or with both.

5. Drugs and Cosmetics Act, 1940

This Act provides for regulation of import, manufacture, sale and Standards

of drugs and cosmetics, thereby protecting the interests of the consumer. The main

objective of the Act is to ensure that the drugs and cosmetics are of the required

standards of quality, purity and strength and are packed in containers giving all

necessary information about them and their manufacture. This Act covers allopathy,

ayurvedic, siddha and unani systems. It lays down that no person or firm can stock, sell

or distribute daigs unless they have a proper licence issued by the State Government

for the purpose. Under this law, it is mandatory that every dealer must issue a cash

memo for drug sold to the Consumer. Section 26 of the amended Act has authorised

any recognised consumer association to pick up a sample of the drug or cosmetics for

testing and analysis. Any dealer or manufacturer found stocking or manufacturing

sub-standard drugs is punishable under the law. The Act provides for the establishment

of Drug Technical Advisory Board, Central Drugs Laboratory and Drugs Consultative

Committee.

6- Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954

The Act prohibits misleading advertisement relating to drugs,

advertisements of drugs alleged to possess magic qualities and remedies for certain

diseases. This Act provides that whoever contravenes any of the provisions of this Act

201

or rules made thereunder, shall on conviction be punishable with imprisonment which

may extend from six months to one year or fine or both. The term "Magic Remedy"

refers to a talisman, mantra, Kavacha and any other charm of any kind which is alleged

to possess miraculous powers for or in the diagnosis, cure, mitigation, treatment or

prevention of any disease in human beings or animals.

7. Prevention of Food Adulteration Act, 1954

The objectives of the Act are to prevent adulteration of food stuffs and the

manufacture, storing and sale of adulterated food stuffs for human consumption. The

enactment serves a very important role in securing to the citizens a minimum degree of

parity in the articles of food and thereby protecting and preserving the health of the

consumers; it also serves to prevent fraud on the Consumer Public. Adulteration of

food is an anti-social evil and this Act is for ensuring purity in the articles of food. In a

welfare State like India, it is a responsibility of the State to safeguard the interests of

the helpless and unorganised Consumer.

Food is an essential need of the Consumer regardless of social or economic

status. The prevention of Food Adulteration Act protects Consumers against

adulterated and contaminated food, by laying down the guidelines for setting up

standards for various food items. The Act makes it a criminal offence to sell any

food product which is adulterated or misbranded. A food article is considered

adulterated if it is different from that which it is declared to be and retains any

substance which makes it injurious or is prepared or packed or kept in unhygienic

202

conditions or contains impurities. If it contains prohibited preservatives or permitted

ones in excess of permitted limits, it is also said to be adulterated.

This Act was amended in 1986 to confer powers to the consumer and the

Registered Organisations to draw food samples for analysis. Any person indulging in

adulteration which is likely to cause death or injury is punishable for a period of three

years, which may extend to life with a fine of not less than Us.5000.

Case Laws: Adulteration Leads to the Payment of Compensation

In December, 1989, the National Commission for Consumer Disputes Redressal

Machinery gave a landmark verdict. It ordered the West Bengal Government to pay

compensation to the family of a consumer who had died due to consumption of

adulterated rapeseed oil supplied by a Government authorised ration shop. It was also

held that compensation would have to be paid to those who had suffered life-long

disability as a result of consuming the adulterated oil41.

8. Essential Commodities Act, 1955

One of the important legislations which gives substantial power to the

Government to regulate the activities of the business community is the Essential

Commodities Act, 1955. The purpose of the Act is to provide equitable distribution of

essential commodities at reasonable prices to the Consumer. Under the Act, the

41 • MajLExpress (Madurai), dated 6th September 1992, p.7.

203

Central and the State Governments have been empowered to regulate the production,

supply, distribution and pricing of essential commodities through promulgation of

various orders issued under the Act. Section 2(a) enumerates classes of commodities

which are essential. These are cattle fodder including oil cakes and other items, coal

including coke, accessories of automobiles, cotton and woollen textiles, drugs,

foodstuffs, including edible oil seeds, oils and cooked food, iron and steel, paper

including newsprint, paperboard and strawboard, petroleum and petroleum products,

raw cotton and raw jute. The Central Government may by notification declare any

other class of commodities to be an essential commodity. The main aim of this Act is

preventing business malpractices such as hoarding and profiteering by creating

manmade scarcities of essential goods.

Under section 7 of the Act, any contravention of certain orders made, can

be punished inter alia with imprisonment which may extend to seven years. It is also

provided that no Court shall take congnizance of any offence punishable under this Act

except on a report in writing of the facts constituting such offence made by a person

who is a public servant or any aggrieved person or any recognised consumer

association.

9. Protection of Civil Rights Act, 1955.

This legislation was enacted with the laudable objective of protecting the

Civil rights of Harijans by prohibiting enforcement of any religious disability in any

religious place like a temple and social disability in public places and restaurants. In

204

this way the Harijans were assured that they would not be denied certain rights

available to non-Harijans. They are equally entitled to the enjoyment of and use of

wools, water taps, public conveyance, educational institutions, hotels, hospitals, parks,

shops and so on.42

The Act provides that any refusal to sell any goods or any refusal to render

any service to any person when such goods are sold or services are rendered to other

persons (non-Harijans) in the ordinary course of business, shall be punishable.

10. Trade and MercSiandise Marks Act, 1958

A trade-mark is a mark on goods which establishes a connection between

certain goods and the proprietor or the registered user of the trade mark. This Act

provides for the registration of trade marks and prevents the use of fraudulent marks

on merchandise. If a Consumer is sold a spurious product carrying the trade mark or

brand name of a reputed manufacturer, he can complain to the manufacturer or

consumer redressal agency or the Controller-General of Patents and Trade marks, to

take action against those who have spuriously used its trade mark or brand name.

This Act provides a penalty for applying false trade marks and trade

descriptions. The punishment includes imprisonment for a term upto two years or fine

or both. In the case of drugs and foods, the punishment extends to three years with or

without fine. This legislation safeguards both the manufacturer and the consumer.

42. S.S Gulshan, op.cit.. p. 103.

205

Case Law: Providing False Description through Notice is Punishable

The Court held that a notice provides no defence to a person charged for a

false trade description. It is a great offence and hence any person who commits such an

act is punishable""

11. Export (Quality Control and Inspection) Act, 1963

This Act was promulgated with a view to provide for the sound

development of the export trade of India through quality control and the process of the

inspections of the goods for export A certificate of export-worthiness is issued to a

commodity by the Export Inspection Agency, under the Act. The Central Government

is empowered to notify the commodities, which are prohibited from export unless they

are accompanied by certificates issued by the Export Inspection Agencies.

The function of the Export Inspection Council is to advise the Central

Government regarding measures for the enforcement of quality control and inspection

in relation to commodities intended for export. Any person contravening the provision

shall be punishable for the first offence, with imprisonment for a term upto two years

or fine of Rs.5000/- or both and for the second subsequent offence the term of

imprisonment may extend to two years and a fine of Rs.5000/-. In the absence of

special and adequate reasons to be mentioned in the judgement of the Court, the

imprisonment shall not be less than three months.

43. Gurbax Singh, Law of Consumer Protection, Jaipur: Bharat Law Publications, 1992, p. 113.

206

12. Monopolies and Restrictive Trade Practices (MRTP) Act, 1969

The MRTP Commission has been set up under this Act to prevent any

company from indulging in monopolistic, restrictive or unfair trade practice. The

MRTP Act enables the consumer to approach the Commission for justice against

exploitation by monopoly trades and indulgence in restrictive trade practices.

In 1984, the Amendment Act was introduced to curb unfair trade practices.

There are five categories incorporated in the Amendment Act such as:

i) False or misleading statements

ii) Publication of false and misleading advertisement

iii) Conducting any prize or contest scheme with the aim of sales promotion.

iv) Sale or supply of goods not complying with standards laid down by the

competent authorities and v) Goods being hoarded or even destroyed with the

intention of hiking the prices of similar goods.

The main feature of the amendment is that it empowers the commission to

grant temporary injunctions restraining persons or companies from carrying on

monopolistic, restrictive or unfair trade until further orders. The Commission has also

been given powers to award monetary compensation to the aggrieved consumer.

There are some limitations in the MRTP Act as well as the nature of the

relief granted by the Commission. The Act does not apply to any undertaking owned

or controlled by the Government, a statutory corporation or even a co-operative

207

society. All public sector undertakings like Railways, banks, insurance corporations,

postal and telecommunications, airlines, electricity boards and municipal bodies are all

kept out ofthe purview of the Act The consumers are therefore left with no redressal

against these agencies.

As a result of the efforts of Consumer groups, the union cabinet has now

approved a set of proposals for setting up statutory boards to take charge of civil

services in Delhi. The Municipal Corporation of Delhi is now allowed to accept work

on deposit in these areas. The Government has also advocated stringent penalities for

unauthorised constaiction or other violation of the city's masterplan. The minimum

penalty in the ordinance is Rs. 10,000 as fine and three months imprisonment for

violations. Through the Amendment Act of 1986, the Commission has been

empowered to enquire into any restrictive or unfair trade practice upon receiving

complaint from any trade association, from any consumer or a registered Consumer

Association.

Case Law: False and Misleading Statement Regarding Utility and Quality of Service is Punishable

The advertisement has given the impression that a person can become a

registered medical practioner by associating himself with it. But actually they can

become a 'Rural Medical Practioner. Hence an enquiry was made by the MRTP

Commission which issued an interim injunction order'4'4.

44. Gurbax Singh, opxit., p. 121.

208

Offer of Prize for Promotion of Sales is Punishable

The commission held that the giving of prizes for the promotion of sale fell

within the MRTP Act if the trade practice was prejudicial to the public interest or to

the interest of the Consumer Hence the Commission directed such a company to

desist from arranging such contest or gift scheme for sales promotion4\

Contests and Lotteries Conducted by the Print Media

The Tamil Daily Dina Malar conducted contests and lotteries by advertising

in its newspaper. Hence the South District Consumer Welfare Council, Madurai, filed

a complaint against the editor. The judgement was in favour of the editor that the

contests and lotteries conducted by the print media for the purpose of entertaining or

amusing the readers, would not amount to unfair trade practice4''.

Sales Promotion Contests - An Unfair Trade Practice

The conducting of a contest designed to promote the sale of a product

where the condition for participating in the contest is the purchase of a product and the

result of the contest is based on draw of lots is an unfair trade practice within the

meaning of section 36A(3)(b) of the Act, the Monopolies and Restrictive Trade

Practices Commission has held.

45- Ibid., p. 129.

4& IndianExpress (Madurai), dated 4th April, 1995, p.7.

209

As per the sales promotion scheme of Byford, the Delhi division of West

Bengal Cements Limited which deals in Premier Padmin Cars, persons who make

outright purchase of Premier Padmin Cars or book them become entitled to participate

in a contest and win fabulous prizes According to the commission, the result of the

contest was determined by means of draw of lots. Such contest would certainly be

prejudicial to public interest for the simple reason that the consumer would be allowed,

induced or tempted to buy or atleast to book a Premier Padmin Car in the hope of

winning the coveted prizes Since the contest is now over and prizes have been

distributed Byford was directed to desist from launching any further scheme for

promotion or sale of any model car in future.'17

13. Hire Purchase Act, 1972

This Act is extremely useful for Consumers because it fixes a statutory

interest rate on all hire purchase transactions Any agreement violating this

requirement is considered void as per the Act. It prevents sellers from charging

exorbitant interest on hire purchases It stipulates that once the hirer or buyer has paid

a certain percentage of the total amount or a certain number of instalments the seller

cannot take away the goods for non-payment. He can only seek a Court order for

recovery of dues.

47. IjldLajiExpxess (Madurai), dated 6th May, 1998, p.7.

210

The Act also requires the seller to clearly state in a written agreement the

true nature of the implication of the agreement and also present accounts of the

transaction from time to time Thus the Act aims at regulating hire purchase

transactions to ensure that the consumer is not exploited. The Act has been withdrawn

twice, but with the request of certain individuals and Organisations, the Act has been

made effective.

14. Water (Prevention and Control of Pollution) Act, 1974

Water pollution means contamination of water, that is, the alteration of the

physical, chemical or biological properties of water by the discharge of any sewage or

trade effluent or any other liquid, gaseous or solid substances into the water. This is

likely to render such water harmful or injurious to public health or safety to domestic,

commercial, industrial, agricultural or other legitimate users or to the life and health of

animals or plants or aquatic organisms

This Act deals with the prevention and control of water pollution in order to

ensure the purity of water for use by Consumers. It prohibits or restricts the discharge

of industrial wastes into rivers, streams and wells. Any violation of this Act is

punishable by fine and imprisonment according to the extent of violation. Besides,

there are two Boards, Central and State Pollution Boards, to deal with both water and

air pollution.

211

There is a separate Act passed in 1981 to control air pollution. This Act

provides for the prevention, control and removal of pollution from the air we breathe.

Contravention of any provisions is liable to attract punishment and fine.

15. The Cigarettes (Regulation, Production, Supply and Distribution) Act, 1975

This Act seeks to achieve the laudable objective of informing the general

public about the health hazards of cigarette smoking. The Act requires that no

production, supply and distiibutioii of and no trade in cigarettes shall be made, unless

each package bears thereon the warning that "Cigarette smoking is injurious to health".

It provides that the warning should be legible, prominent and conspicuous as to size

and colour. Stringent penalties are provided for violation of any of the provisions of

the Act.

16. Standards of Weights and Measures Act, 1976

This Act was the result of Government's efforts to introduce uniform

standards for weighing and measuring commodities to protect consumer's interest.

This Act aims at establishment of weights and measures based on international system

of units, at the approval of prototypes of weighing and measuring instruments, control

and regulation of weights and measures and commodities in the packaged form. The

Act prohibits manufacture of non-standard weights and measures, storage and use of

non-standard weights and measures and counterfeiting of seals. The act is of great

importance to every consumer, who is very often cheated in terms of quality and

212

quantity, and denied the full value of money. This act is implemented by the Controller

of Legal Metrology in each state.

In 1985, for the purpose of uniformity in the enforcement of the standards

of weights and measures, another Act was passed. It provides for more effective

protection of consumers and covers all instruments used in buying and selling,

industrial production and those used for human health and safety. It contains

provisions to deter offenders especially those indulging in under weighment. But later

both the Standards of Weights and Measures Act 1976 and the Standards of Weights

and Measures (Enforcement) Act, 1985 were amended in 1986 to confer powers on

consumers and enable recognised consumer organisations to file complaints in a court.

In the case of defective weights and measures, a complaint can be filed on

plain paper either with the local Weights and Measures Inspectors or Controller of

Weights and Measures of the State. If this proves unsatisfactory, the same may be filed

in any district court, high court or supreme court as per procedures prescribed. The

penalties for any offence under the Weights and Measures Act vary from 6 months to 5

years of imprisonment or fine or both.

Consumers have a legal right to get correct quantities of goods for their

money. If they do not get it, a complaint can be filed in a consumer court. If the

traders use wrong weights and measures, they are liable to be punished.

213

17. Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980

This Act is auxiliary to the Essential Commodities Act to specifically

prevent black-marketing and hoarding of essential commodities, by resorting to

preventive detention of persons who may manipulate. This Act purports to make

black-marketing illegal and protects the consumer by maintaining regular supplies of

essential commodities Offenders are strictly punishable under this act

The power to make detention orders have been conferred on the Union as

well as the State Governments, District Magistrates and Commissioners of Police. The

detention orders are to be executed at any place within India in the manner prescribed

for execution of warrants of arrest under the Criminal Procedure Code, 1973.

18. Bureau of Indian Standards Act, 1986

Under this Act, the Bureau of Indian Standards came into existence as a

statutory body in place of the Indian Standards Institution, with effect from 1st April

1987 to promote harmonious development of the activities of standardisation, marking

and quality certification of goods, besides attending to connected matters in the

country. It entrusts the Bureau with the task of formulation and promotion of

standards in all areas of activity. The BIS operates a certification marks scheme under

the Act to certify products conforming to relevant standards set by the Bureau. The

Act prohibits the improper use of its standard marks and the Bureau accepts and

processes any complaint by the consumer in the respect. The BIS certification marks

scheme is mandatory for a number of products involving hazards to health and safety of

214

life. All the provisions of LSI Act, 1952 are now covered under the BIS Act, 1986.

This law has been framed to control the standards of various goods and simplification

of the same to encourage standardisation This law guarantees the replacement of

substandard goods which are not according to the prescribed standard when carrying

the ISI mark. There is the provision for punishment, if an illegitimate use of the

standard mark is made under the Act.48

19. Environment Protection Act, 1986

The procedural difficulties involved in the implementation of anti-pollution

laws in the country led to the enactment of this legislation. The following are the

special features of this Act:

i) Any complaint made by the public to the Government about a pollution

problem has to be acted upon within 60 days, unless the complainant can go to the

court.

ii) If any solid, liquid or gas is present in the environment which is injurious

to health, stringent penalities are imposed.

iii) Any violation of the Act can lead to 5 years imprisonment and

Rs. 10,000 as fine or both. If the contravention continues, additional fine of Rs.5,O00

for every day contravened and maximum imprisonment upto 7 years can be imposed.

48. Pradeep, S. Mehta and Anant Sharma, The Consumer WjaUoJcVMjow Calcutta: Consumer Unity and Trust Society "CUTS", 1989, p.50.

215

20. Narcotic Drugs and Psychotropic Substance Act, 1985

This Act consolidated and amended the law relating to narcotic drugs and

made stringent provisions for the control and regulation of operations relating to

narcotic drugs and psychotropic substances and other related matters.40 Prior to this

enactment, the statutory control over narcotic drugs was exercised in India, through a

number of Central and State enactments such as the Opium Act, 1857 and Dangerous

Drugs Act, 1930.

21. The Railway Claims Tribunal Act, 1987

This Act provides for the establishment of a Railway Claims Tribunal. It

determines the claims against the railways for loss, damage, deterioration or

non-delivery of goods or animals entrusted to it for transportation or for refund of

fares, freight or compensation for death or injury to passengers in railway accidents.

The Claims tribunal shall not admit an application for any claim unless -

a) The application is made within three years from the date on which the

goods were entrusted to the railway administration for carriage by way.

b) The application is made within one year of occurence of the accident.

c) The application is made within three years from the date on which the

fare or frieght is paid to the railway administration.

49. S.S. Gulshan, op.cit.. p.99.

216

CONCLUSION

There are many laws which echo the spirit of consumerism in one way or

the other. These Acts deal with prices, distribution, sales, contracts, quality of

standard, adulteration, safety, food grains, fruits, food products and so on, Moreover,

the object and intent of all the enactments given above are mainly punitive, though

some of them are preventive in nature. These acts provide for the prosecution and

punishment of those persons who violate the provisions. The punishment is meant to

operate as a deterrent against indulgence in malpractices in their dealings with

consumers. The survey revealed that the majority of the district forums do not

function continuously, due to non-appointment of members. A sizeable portion of the

selected forums settled the cases within 90 days.