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CONSUMER PROTECTION ACT (COPRA) Introduction The Consumer Protection Act, 1986, came into force w.e.f 15.04.87.

. It extends to whole of India except J & K. The objective of the Act is to provide the consumer a simple, speedy and inexpensive way of redressal of grievances in case of any deficiency / defect in goods and services bought / used by him for a consideration. The remedy available under this Act is in addition to any other law for the time being in force. 2. Who is a Consumer for the purpose of this Act? A consumer can be a consumer for goods or consumer for service. A consumer is one, who is buys some goods for consideration for his use, or one who uses such goods with approval of such buyer. The word consumer does not include anybody who buys goods & uses the same for commercial purpose. The intention of the Act is to the benefit of the Act to ordinary consumer purchasing for their own consumption and not for large scale manufacture or possessing activity carried for profit. For the purpose of services, a consumer is a person who hirers or avails of any services for a consideration or any other beneficiary of such services with the approval of the former. Services include all types of services except those which are rendered free or under a contract of personal service. In particular services like banking, financing, insurance. Transport, house construction, entertainment etc whether given by private, public or Govt. sector under the Act. It may be notes that while the consumer of goods for commercial purpose is barred from claiming protection under the Act, a consumer for services, even if he utilized it for commercial purpose, can claim protection under this Act. A consumer can be individual of HUF or firm or any type of organization. In the event of death of a consumer, his legal heir or representative can also lodged complaint. Who are not Consumers? The following cannot be included in the definition of consumer and they cannot seek redressal of their grievances under the provisions of this Act. Pensions buying goods for resale Pensions buying goods for any commercial purpose. Pensions receiving goods / services free (without consideration) i.e gifts Pensions enjoying personal services under a contract (i.e service by employees / maid servants) etc. Examples:a. A printing press purchasing a printing machinery is not a consumer as the machine is meant for commercial use. b. A tenant of a building is not a consumer as he is paying rent for the building & not for any services. c. Pension availing themselves of medical treatment facility from hospital are not consumer s as the service are given free. d. A nominee of a LIC policy comes within the definition of consumer after the death of the policy holder. e. The beneficiary of a bank guarantee is a consumer. f. The legal heirs of a consumer are also considered as consumers after death. g. Who can file a Complaint? h. A complaint can be filed under this Act by (i)consumer as defined in the Act (ii) any recognized consumer association (iii) One or more consumers on behalf of numerous having the same interest (iv) the Central / State Govt. 3. What constitutes lapse against which complaints can be lodged? Restrictive Trade Practices (i.e a consumer is compelled to buy / hire any other goods / service as a precondition for buying / hiring other goods / services) Unfair Trade Practice: Any unfair / deceptive practice to promote trade. Defect in Goods: Any fault, imperfection in quality, quantity, purity, potency etc Deficiency in service: (i.e any fault, imperfection, shortcoming or inadequacy in quality, nature or manner of performance of any service. Charging excess price than that displayed on the goods or that fixed by any law. Supplying goods which are hazardous to life. 4. Where to make complaint 1. To hear complaint of consumers, three types of quasi judicial for a established. At district level, there is Consumer Disputes Redressal Forum (also called District Forum), at State level, there is Consumer Disputes Redressal Commission (Called State Commission), at National level, there is National Consumer Disputes Redressal Commission (also called National 1.

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Commission). While the district Forum and State Commissions are required to set-up by the State Govt. the national Commission is set-up at Delhi by the Central Govt. Each District Forum consists of a President & two other members out of which one must be a woman. Persons who are qualified to become a District Judge can be appointed as President of the District Forum. A District Forum can entertain complaints where the value of goods and services and compensation asked for does not exceed Rs.20.00Lacs A district Forum will accept complaints only if (i) the cause of action arises wholly or in part within the local limits of its jurisdiction (ii) one or more of the opposite party resides / carries on business / or has a branch office within its local limits of its jurisdiction. State Commission: A State Commission will have a president & two members out of which one must be a woman. Person, who is / has been a judge a High Court can be appointed as President. A State Commission can have multiple benches. State Commission has original jurisdiction to entertain complaints exceeding 20lacs but not exceeding Rs.100lacs. It has appellate jurisdiction to hear appeals against orders of any District Forum within the State. It has supervisory jurisdiction to call for all records with respect to any consumer dispute which is pending before or decided by any district forum within a State and to pass appropriate orders. National Commission: The National Commission shall consist of a President and four other members out of which one must be a woman. Person who is/has been a judge of a Supreme Court can be appointed as President. It has original jurisdiction where goods or services or compensation claimed exceeds Rs.100lacs. It has jurisdiction to hear appeals against the orders of any State Commission. It has also jurisdiction to call for records with respect to any consumer dispute which is pending before decided by any State Commission & to pass appropriate orders. Procedure on receipt of complaint A copy of the complaint is sent within 21 days (from the date of admission of complaint) to the opposite party to give his version of the case within a period of 30 days. An additional period not exceeding 15 days may be granted, if required. Power of Forum / Commissions The Forum / Commissions will have the powers of a Civil Court to enforce attendance of any defendant / witness and to examine them on oath. No adjustment should be originally granted, unless there is sufficient cause to do so. The reasons for adjournment should be recorded. The fora shall pass orders as to costs occasioned by adjournments. It can make order to remove defects from the goods, replacement of goods, refund of the price and / or payment of compensation for the loss or injury suffered. The forum may pass interim orders during the pendancy of any proceeding, and if it is not complied with, it can issue order for attachment of property of the person not complying with interim order. The attachment will be in force for not more than 3 months at the end of which the property can be sold. Such order has the status of a decree / court order. Where the forum / commission cannot execute the order it can send it to a Civil Court for execution. Amendment to the Act which gas come into effect from 15 th March 2003 provides that a person entitled to the amount will make an application to the concerned forum to issue a Certificate of Recovery to the District Collector shall proceed to recover the amount in the same manner as the arrears of land revenue. Penalties in case of non-compliance of order Where the opposite party or the complaint does not comply with the order, he can be punished with imprisonment from minimum 1 month maximum 3 years or with fine minimum of Rs.2000/- to maximum Rs.10000/- or with both. APPEAL (Sec. 15) 1. Appeal against the order of District Forum lies with State Commission & that of the State Commissioner with National Commission & that of the National Commission with Supreme Court. 2. Time limit for appeal in each case is 30 days from the date of the order. 3. Appeals made after the period can be accepted at the discretion of the appellate authority. 4. While preferring an appeal, 50% of the amount decreed has to be deposited (Sec.15) Frivolous or Vexatious complaints (Sec.26) Where a person is found to have made frivolous/vexatious complaints he can be asked to pay the opposite party such cost not exceeding Rs.10000/Power to make Rule (Sec.30)

The Central Government may by notification make rules for the formation and functioning of National Commission, similarly the State Commission is also authorized to make rules for the formation & functioning of State commission & District Forum. 12. How fast complaints should be deposited off? The District forum should endeavour to dispose off an application within a period of 3 months (5 months in cases which involve analysis of testing of goods). 13. Other points i. It is held by different State Commissions that the following cannot be considered as deficiency of service within the scope of the Act. Banks not sanctioning loans, not continuing or enhancing the credit facilities as banks have to grant or reject a credit facility. On the other hand the following are treated as deficiency in service & banks are held guilty for the same. (i) Undue delay in advising, disposal of credit proposal (sanction / refusal) (ii) Granting of loans against Term deposit in joint names, without getting discharge from all depositors (iii) Auctioning of jewels especially sacred / sentimental jewels sutra etc for very trivial amount of dues (iv) Withdrawal of credit limits without proper notice and assigning valid reasons (v) Retention of pledged jewels of closed JLs under general lien for other debts which are adequacy secured (vi) Wrong calculation of interest (vii) Undue delay in settlement of claims in the accounts of deceased depositors. ii. Suspension of banking business due to strike by bank employee. iii. Fixing interest / service charges as per RBI / IBA guidelines. 14. Important decisions The bank refused to honor a demand draft as it was not signed by two signatories as per laid down procedure. The bank was held responsible for deficiency in service. The company having lost the demand draft, applied bank for issuing a duplicate. The bank asked for 35% margin & also indemnity bond for issuing duplicate. It was held that the bank imposed unreasonable condition & thus negligent & deficient in rendering banking service to the customer. Banking levied Re.1/- per cheque to the current account holder for issue ofMICR cheques. The action was protested. The NC held that levy for proving service is in the realm of pricing, which is the consideration for rendering service. It is beyond the jurisdiction of the Forum to adjudicate on the question of adequacy and reasonableness of the consideration / price charged for rendering the service. (Canara Bank Vs. Archana Kumar) The borrower complained that the bank failed to provide adequate financing. The NC held that the matter of grant withholding of advances, or insisting on margin are at the discretion of the bank and is not a deficiency in service.

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