objects of the 8b the objects of every district council shall be to promote and protect within district council the district the rights of the consumers laid down in clauses (a) to (f) of section 6" amendment of 7 in section 10 of the principal act,— section 10 (a) in sub-section (/), for clause (b), the following clause shall be substituted, namely:— -"(b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely:— (i) be not less than thirty-five years of age, (ii) possess a bachelor's degree from a recognised university, 10 (iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration: provided that a person shall be disqualified for appointment as a member is if he— (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the state government involves moral turpitude; or (b) is an undischarged insolvent; or go (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the government or a body corporate owned or controlled by the government; or 45 (e) has, in the opinion of the state government, such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f) has such other disqualifications as may be prescribed by the state government;"; (b) in sub-section (ja), the following proviso shall be inserted, namely:— 3o "provided that where the president of the state commission is, by reason of absence or otherwise, unable to act as chairman of the selection committee, the state government may refer the matter to the chief justice of the high court for nominating a sitting judge of that high court to act as chairman"; (c) for sub-section (2), the following sub-section shall be substituted, namely:— 35° "(2) every member of the district forum shall hold office for a term of five years or up to the age of sixty-five years, whichever is earlier: provided that a member shall«be eligible for re-appointment for another term of five years or up to the age of sixty-five years, whichever is earlier, subject 4o to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (j) and such re-appointment is also made on the basis of the recommendation of the selection committee: provided further that a member may resign his office in writing under his hand addressed to the state government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in us relation to the category of the member who is required to be appointed under the provisions of sub-section (1a) in place of the person who has resigned: provided also that a person appointed as the president or as a member, before the commencement of the consumer protection (amendment) act, 2001, shall continue to hold such office as president or member, as the case may be, till the completion of his term"; (d) in sub-section (3), the following proviso shall be inserted, namely:— "provided that the appointment of a member on whole-time basis shall be made by the state government on the recommendation of the president of the state commission taking into consideration such factors as may be prescribed including the work load of the district forum" lo 8 in section 11 of the principal act, in sub-section (j), for the words "does not exceed | amendment    |   of  ||--------------|-------|| section      |    11 |rupees five lakhs", the words "does not exceed rupees twenty lakhs" shall be substituted 9 for section 12 of the principal act, the following section shall be substituted, namely: - |         | substitution    | of    ||---------|-----------------|-------|| new     | section         | for   || section | 12             |       |12 (1) a complaint in relation to any goods sold or delivered or agreed to be sold is or delivered or any service provided or agreed to be provided may be filed with a district forum by— (a) the consumer to whom such goods are sold or delivered or agreed to manner in which complaint be sold or delivered or such service provided or agred to be provided; shall be made (b) any recognised consumer association whether the consumer to whom 2 the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not; (c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the district forum, on behalf of, or for the benefit of, all consumers so interested; or as (d) the central or the state government (2) every complaint filed under sub-section (/) shall be accompanied with such amount of fee and payable in such manner as may be prescribed (3) on receipt of a complaint made under sub-section (/), the district forum may, by order, allow the complaint to be proceeded with or rejected: 306 provided that a complaint shall not be rejected under this sub-section unless an opportunity of being heard has been given to the complainant: provided further that the admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint was received (4) where a complaint is allowed to be proceeded with under sub-section (3), the district forum may proceed with the complaint in the manner provided under this act: provided that where a complaint kas been admitted by the district forum, it shall not be transferred to any other court or tribunal or any authority set up by yo or under any other law for the time being in force explanation—for the purposes of this section, "recognised consumer association" means any voluntary consumer association régistered under the 1 of 1956 companies act, 1956 or any other law for the time being in force' 10 in section 13 of the principal act, in sub-section (/),— amendment of section 13ys (a) in the marginal heading, for the words "procedure on receipt of complaint", the words "procedure on admission of complaint" shall be substituted; (b) in sub-section (/),— (i) in the opening portion, for the words "on receipt of a complaint", the words "on admission of a complaint" shall be substituted; (ii) for clause (a), the following clause shall be substituted, namely: - "(a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be 4 granted by the district forum;"; (c) in sub-section (2),— (i) in the opening portion, for the words "complaint received", the words "complaint admitted" shall be substituted; (ii) in clause (b), in sub-clause (ii), for the words "on the basis of evidence", /0 the words "ex parte on the basis of evidence" shall be substituted; (iii) after clause (b), the following clause shall be inserted, namely:— "(c) where the complainant fails to appear on the date of hearing before the district forum, the district forum may either dismiss the complaint for default or decide it on merits"; 1s (d) after sub-section (3), the following sub-sections shall be inserted, namely:— "(3a) every complaint shall be heard as expeditiously as possible and endeavour shall be made to decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months ifit requires go analysis or testing of commodities: provided that no adjournment shall be ordinarily granted by the district forum unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by the forum: provided further that the district forum shall make such orders as to the 25" costs occasioned by the adjournment as may be provided in the regulations made under this act (3b) where during the pendency of any proceeding before the district forum, it appears to it necessary, it may pass such interim order as is just and proper in the facts and circumstances of the case"; 30 (e) after sub-section (6), the following sub-section shalf be inserted, namely: - "(7) in the event of death of a complainant who is a consumer or of the opposite party against whom the complaint has been filed, the provisions of order xxii of the first schedule to the code of civil procedure, 1908 shall apply 5 of 1908 subject to the modification that every reference therein to the plaintiff and the 35° defendant shall be construed as reference to a complainant or the opposite party, as the case may be" amendment of 11 in section 14 of the principal act,— section 14 (a) in sub-section (/),— (i) in clause (d), the following proviso shall be inserted, namely:— yo "provided that the district forum shall have the power to grant punitive damages in such circumstances as it deems fit;"; (ii) in clause (e), for the words "remove the defects", the words "remove the defects in goods" shall be substituted; (iii) after clause (h), the following clauses shall be inserted, namely:— us "(ha) to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature; (hb) to pay such sum as may be determined by it if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently: 5d provided that the minimum amount of sum so payable shall not be less than five per cent of the value of such defective goods sold or service provided, as the case may be, to such consumers: provided further that the amount so obtained shall be credited in 5 favour of such person and utilized in such manner as may be prescribed; (hc) to issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement;"; (b) in sub-section (2), for the proviso, the following proviso shall be substituted, 10 namely:~— "provided that where a member, for any reason, is unable to conduct a proceeding till it is completed, the president and the other member shall continue the proceeding from the stage at which it was last heard by the previous member" 12 in section 15 of the principal act, after the first proviso, the following proviso shall amendment of section 15 's be inserted, namely: - "provided further that no appeal by a person, who is required to pay any amount in terms of an order of the district forum, shall be entertained by the state commission unless the appellant has deposited in the prescribed manner fifty per cent of that amount or twenty-five thousand rupees, whichever is less:" 20 13 in section 16 of the principal act,— ° amendment of section 16(a) in sub-section (/), for clause (b) and the proviso thereunder, the following clause shall be substituted, namely:— "(b) not less than two, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the 25 following qualifications, namely: - (i) be not less than thirty-five years of age; (ii) possess a bachelor's degree from a recognised university; and (iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems 30 relating to economics, law, commerce, accountancy, industry, public affairs or administration: provided that not more than fifty per cent of the members shall be from amongst persons having a judicial background explanation—for the purposes of this clause, the expression "persons 35 having judicial background" shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level: provided further that a person shall be disqualified for appointment as a member if he— 4e (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the state government, involves moral turpitude; or (6) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or us" (d) has been removed or dismissed from the service of the government or a body corporate owned or controlled by the government; or (e) has, in the opinion of the state government, such financial or other interest, as is likely to affect prejudicially the discharge by him of 5 his functions as a member; or (f) has such other disqualifications as may be prescribed by the state government"; (b) after sub-section (/), the following sub-sections shall be inserted, namely:— "(/a) every appointment under sub-section (/) shall be made by the state government on the recommendation of a selection committee consisting of the following members, namely:— (i) president of the state commission -c0000s0000 chairman; (ii) secretary of the law department of the state member; ay (iii) secretary incharge of the department dealing with consumer affairs in the state ccccccssesssees member: provided that where the president of the state commission is, by reason of absence or otherwise, unable to act as chairman of the selection committee, the state government may refer the matter to the chief justice of the high court 20° for nominating a sitting judge of that high court to act as chairman (/b) (i) the jurisdiction, powers and authority of the state commission may be exercised by benches thereof (it) a bench may be constituted by the president with one or more members as the president may deem fit (iii) if the members of a bench differ in opinion on any point, the points 25 shall be decided according to the opinion of the majority, if there is a majority, 30 but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the president who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more or the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case, including those who first heard it"; (c) in sub-section (2), the following proviso shall be inserted, namely: - "provided that the appointment of a member on whole-time basis shall be made by the state government on the recommendation of the president of the 30 state commission taking into consideration such factors as may be prescribed including the work load of the state commission"; (a) for sub-sections (3) and (4), the following sub-sections shall be substituted, namely:— yo "(3) every member of the state commission shall hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier: provided that a member shall be eligible for re-appointment for another term of five years or up to the age of sixty-seven years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions qs" for appointment mentioned in clause (b) of sub-section (/) and such reappointment is made on the basis of the recommendation of the selection committee: provided further that a person appointed as a president of the state commission shall also be eligible for re-appointment in the manner provided in go clause (a) of sub-section (/) of this section: provided also that a member may resign his office in writing under his hand addressed to the state government and on such resignation being accepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (/) in relation to the category of the member who is required to be appointed under the provisions of sub-section (/a) in place of the person who has resigned ss (4) notwithstanding anything contained in sub-section (3), a person appointed as the president or as a member, before the commencement of the consumer protection (amendment) act, 2001, shall continue to hold such office as president or member, 'as the case may be, till the completion of his term" to 14 section 17 of the principal act shall be renumbered as sub-section (/) and in sub- amendment of section 17 section (/) as so renumbered,— (a) in clause (a), in sub-clause (i), for the words "exceeds rupees five lakhs but does not exceed rupees twenty lakhs", the words "exceeds rupees twenty lakhs but does not exceed rupees one crore" shall be substituted; is (6) after sub-section (7) as so renumbered, the following sub-section shall be inserted, namely:— "(2) a complaint shail be instituted in a state commission within the limits of whose jurisdiction, - 2e (a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain; or (b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office or personally works for gain, provided that in such case either the permission of the state commission is given or the opposite parties who do not reside or carry on business or have a branch office or personally work for gain, as the case may be, acquiesce in such institution; or 30 (c) the cause of action, wholly or in part, arises" 15 after section 17 of the principal act, the following sections shall be inserted, namely:— insertion of new sections 17a and 17b transfer of cases "17a on the application of the complainant or of its own motion, the state commission may, at any stage of the proceeding, transfer any complaint pending 3° before the district forum to another district forum within the state if the interest of justice so requires circuit benches 17b the state commission shall ordinarily function in the state capital but may perform its functions at such other place as the state government may, in consultation with the state commission, notify in the official gazette, from time to time" ye 16 section 18a of the principal act shall be omitted omission of section 18a 17 in section 19 of the principal act, after the first proviso, the following proviso shall amendment of section 19 be inserted, namely:— "provided further that no appeal by a person, who is required to pay any amount in terms of an order of the state commission, shall be entertained by the us~ national commission unless the appellant has deposited in the prescribed manner fifty per cent of the amount or rupees thirty-five thousand, whichever is less:" insertion of new section 19a18, after section 19 of the principal act, the following section shall be inserted, namely:— "19a an appeal filed before the state commission or the national commission hearing of appeal shall be heard as expeditiously as possible and an endeavour shall be made to finally dispose of the appeal within a period of ninety days from the date of its admission: provided that no adjournment shall be ordinarily granted by the state commission or the national commission, as the case may be, unless sufficient cause is shown and & the reasons for grant of adjournment have been recorded in writing by such commission: provided further that the state commission or the national commission, as the case may be, shall make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this act" to 19 in section 20 of the principal act,— amendment of section 20 (a) in sub-section (/), for clause (b) and the proviso, the following clause shall be substituted, namely: - '(b) not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the }¢ following qualifications, namely:— (i) be not less than thirty-five years of age; (ii) possess a bachelor's degree from a recognised university; and (iii) be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems 20 relating to economics, law, commerce, accountancy, industry, public affairs or administration:  provided that not more than fifty per cent of the members shall be from amongst the persons having a judicial background explanation—_-for the purposes of this clause, the expression "persons 25° having judicial background" shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level: provided further that a person shall be disqualified for appointment if he— 30 (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the central government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; 347 or (d) has been removed or dismissed from the service of the government or a body corporate owned or controlled by the government; or (e) has in the opinion of the central government such financial or 4 o other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f) has such other disqualifications as may be prescribed by the central government : provided also that every appointment under this clause shall be made by the 4s~ central government on the recommendation of a selection committee consisting of the following, namely:—~ (a) aperson who is a judge of the supreme court, ~—- chairman; to be nominated by the chief justice of india (b) the secretary in the government of legal affairs - chairman; so in the government of india{c) secretary of the department dealing with consumer - member'; affairs in the government of india () after sub-section (/), the following sub-section shall be mserted, namely: - "(1a)@) the jurisdiction, powers and authority of the nattonal commission ss may be exercised by benches thereof (ii) a bench may be constituted by the president with one or more members as the president may deem fit (iii) if the members of a bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, lo but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the president who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more or the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the sc case, including those who first heard it"; (c) for sub-sections (3) and (4), the following sub-sections shall be substituted, namely:— "(3) every member of the national commission shall hold office for a term of five years or up to the age of seventy years, whichever is earlier: 20 provided that a member shall be eligible for re-appointment for another term of five years or up to the age of seventy years, whichever is earlier, subject to the condition that he fulfills the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (/) and such re-appointment is made on the basis of the recommendation of the selection committee: 25 provided further that a person appointed as a president of the national 'commission shall also be eligible for re-appointment in the manner provided in clause (a) of sub-section (/) : ' provided also that a member may resign his office in writing under his rand addressed to the central government and on such resignation being 30 acoepted, his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (/) in relation to the category of the member who is required to be appointed under the provisions of sub-section (ja) in place of the person who has resigned (4) notwithstanding anything contained in sub-section (3), a person as appointed as a president or as a member before the commencement of the consumer protection (amendment) act, 2001 shall continue to hold such office as president or member, as the case may be, till the completion of his " term 20 in section 21 of the principal act, in clause (a), in sub-clause (i), for the words amendment of section 21 4yo "rupees twenty lakhs", the words "rupees one crore" shall be substituted 21 for section 22 of the principal act, the following sections shall be substituted, namely:— "22 (1) the provisions of sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the district forum shall, with such modifications as us may be considered necessary by the commission, be applicable to the disposal of disputes by the national commission substitution of new secttons for section 22 power and procedure applicable to the national commission power to set (2) without prejudice to the provisions contained in sub-section (/), the national commission shall have the power to review any order made by it, when there is an error apparent on the face of record so 22a where an order is passed by the national commission ex parte against the opposite party or a complainant, as the case may be, the aggrieved party may apply to aside ex parte ordersthe commission to set aside the said order in the interest of justice transfer of cases 22b on the application of the complainant or of its own motion, the national commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending before the district forum of one state to a district forum of another state or before one state commission to another state commission circuit benches 22c the national commission shall ordinarily function at new delhi and perform ¢ its functions at such other place as the central government may, in consultation with the national commission, notify in the official gazette, from time to time vacancy in the 22d when the office of president of a district forum, state commission, or of the national commission, as the case may be, is vacant or a person occupying such office of the president office is, by reason of absence or otherwise, unable to perform the duties of his office, to these shall be performed by the senior-most member of the district forum, the state commission or of the national commission, as the case may be: provided that where a retired judge of a high court is a member of the national commission, such member or where the number of such members is more than one, the senior-most person among such members, shall preside over the national commission | in the absence of president of that commission" 22 in section 23 of the principal act, after the first proviso, the following proviso shall amendment of section 23 be inserted, namely:— "provided further that no appeal by a person who is required to pay any amount in terms of an order of the national commission shall be entertained by the supreme 20 court unless that person has deposited in the prescribed manner fifty per cent of that amount or rupees fifty thousand, whichever is less:" 23 for section 25 of the principal act, the following section shall be substituted, namely:— substitution of new section for section 25 enforcement of orders of the "25 (/) where an interim order made under this act, is not complied with the 2¢- district forum or the state commission or the national commission, 'as the case may district forum, be, may order the property of the person, not complying with such order to be attached the state commission or the national commission (2) no attachment made under sub-section (/) shall remain in force for more than three months at the end of which, if the non-compliance continues, the property jo attached may be soid and out of the proceeds thereof, the district forum or the state commission or the national commission may award such damages as it thinks fit to the complainant and shall pay the balance, if any, to the party entitled thereto (3) where any amount is due from any person under an order made by a district forum, state commission or the national commission, as the case may be, 3" the person entitled to the amount may make an application to the district forum, the state commission or the national commission, as the case may be, and such district forum or the state commission or the national commission may issue a certificate for the said amount to the collector of the district (by whatever name called) and the collector shall proceed to recover the amount in the same manner as arrears of land ve revenue" 24 in section 27 of the principal act,— amendment of section 27 (a) the proviso shall be omitted; (b) after the proviso so omitted, the existing section 27 shall be renumbered as sub-section (/) and after sub-section (/) as so renumbered, the following sub-sections yshall be inserted, namely:— "(2) notwithstanding anything contained in the code of criminal procedure, 1973, the district forum or the state commission or the national 2 of 1974 commission, as the case may be, shall have the power of a judicial magistrate of the first class for the trial of offences under this act, and on such conferment of se powers, the district forum or the state commission or the national commission, as the case may be, on whom the powers are so conferred, shall be deemed to be a judicial magistrate of the first class for the purpose of the code of criminal procedure, 1973 (3) all offences under this act may be tried summarily by the district forum or the state commission or the national commission, as the case may ss be" 25 after section 28 of the principal act, the following section shall be inserted, namely:— insertion of new sectton 28a "28a (1) all notices required by this act to be served shall be served in the manner hereinafter mentioned in sub-section (2) service of notice, etc fo (2) the service of notices may be made by delivering or transmitting a copy thereof by registered post acknowledgment due addressed to opposite party against whom complaint is made or to the complainant by speed post or by such courier service as are approved by the district forum, the state commission or the national commission, as the case may be, or by any other means of transmission of documents is (includtng fax message) (3) when an acknowledgment or any other receipt purporting to be signed by the opposite party or his agent or by the complainant is received by the district forum, the state commission or the national commission, as the case may be, or postal article containing the notice is received back by such district forum, state 20 commission or the national commission, with an endorsement purporting to have been made by a postal employee or by any person authorized by the courier service to the effect that the opposite party or his agent or complainant had refused to take delivery of the postal article containing the notice or had refused to accept the notice by any other means specified in sub- section (2) when tendered or transmitted to him, as' the district forum or the state commission or the national commission, as the case may be, shall declare that the notice had been duly served on the opposite party or to the complainant : provided that where the notice was properly addressed, pre-paid and duly sent by registered post acknowledgment due, a declaration referred to in this sub-section zo shall be made notwithstanding the fact that the acknowledgment has been jost or mislaid, or for any other reason, has not been received by the district forum, the state commission or the national commission, as the case may be, within thirty days from the date of issue of notice (4) all notices required to be served on an opposite party or to complainant shall 3s" be deemed to be sufficiently served, if addressed in the case of the opposite party to the place where business or profession is carried and in case of complainant, the place where such person actually and voluntarily resides" 26 in section 29 of the principal act, after sub-section (2), the following sub-sections amendment of section 29 shall be inserted, namely:— yo "(3) if any difficulty arises in giving effect to the provisions of the consumer protection (amendment) act, 2001, the central government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: provided that no such order shall be made after the expiry of a period of two years from the commencement of the consumer protection (amendment) act, 2001 ug (4) every order made under sub-section (3) shall be laid before each house of parliament" / 27 after section 29a of the principal act, the following section shall be inserted, insertion of new section 29b namely:— "29b notwithstanding anything contained in any law, the opposite party before right to legal representationso a district forum, the state commission or the national commission, as the case may be, shall not be entitled, to be represented by a legal practitioner except when the complainant {@) has engaged a egal practitioner; or (b) is himself a legal practitioner; or (c) has no objection to the opposite party engaging a legal practitioner" 28 for section 30 of the principal act, the following section shall be substituted, namely:— 5 substitution of new section for section 30 power to make "30 (1) the central government may, by notification, make niles for carrying out rules the provisions contained in clause (a) of sub-section (/) of section 2, clause(b) of subsection (2) of section 4, sub-section (2) of section 5, sub-section (2) of section 12, clause (vi) of sub-section (4) of section 13, clause (hb) of sub-section (1) of section 14, section 19, clause (b) of sub-section (7) and sub-section (2) of section 20, section te 22 and section 23 of this act s (2) the state government may, by notification, make rules for carrying out the provisions contained in clause (b) of sub-section (2) and sub-section (4) of section 7, clause (6) of sub-section (2) and sub-section (4) of section 8a, clause (b) of subsection (/) and sub-section (3) of section 10, clause (c) of sub-section (/) of section 13 clause (hb) of sub-section (/) and sub-section (3) of section 14, section 15 and clause (b) of sub-section (1) and sub-section (2) of section 16 of this act" 29 after section 30 of the principal act, the following section shall be inserted, insertion of new section 30a namely:— "30a (/) the national commission may, with the previous approval of the '20 central government, by notification, make regulations not inconsistent with this act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this act power of the national commission to make regulations (2) in particular and without prejudice to the generality of the foregoing power, 'such regulations may make provisions for the cost of adjournment of any proceeding 25" before the district forum, the state commission or the national commission, as the case may be, which a party may be ordered to pay" 30 for section 31 of the principal act, the following section shall 'be substituted, namely:— substitution of new section for section 31 "31 (1) every rule and every regulation made uader this act shall be laid, as soon 3e rules and regulation to be as may be after it is made, before each house of parliament, while it is in session, for a latd before each house of parhament total period of thirty days which may be comprised in one session or ia two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or regulation or both houses agree that the rule or regulation 35- should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation (2) every rule made by a state government under this act shall'be laid as soon 4 » as may be after it is made, before the state legislature" statement of objectsand reasonsthe enactment of the consumer protection act, 1986 was an important milestone in the history of the consumer movement in the country the act was made to provide for the better protection and promotion of consumer rights through the establishment of consumer councils and quasi-judicial machinery under the act, consumer disputes redressal agencies have been set up throughout the country with the district forum at the district level, state commission at the state level and national commission at the national level to provide simple, inexpensive and speedy justice to the consumers with complaints against defective goods, deficient services and unfair and restrictive trade practices the act was also amended in the years 1991 and 1993 to make it more effective and purposeful 2 although the consumer disputes redressal agencies have to a considerable extent, served the purpose for which they were created, the disposal of cases has not been fast enough several bottlenecks and shortcomings have also come to light in the implementation of various provisions of the act with a view to achieving quicker disposal of consumer complaints by the consumer disputes redressal agencies securing effective implementation of their orders, widening the scop of some of the provisions of the act to make it more effective, removing various lacunae in the act and streamlining the procedures, amendments are proposed in the act, which, inter alia, include the following, namely: - (i) exclusion of the jurisdiction of the consumer disputes redressal agencies in respect of claims for which corresponding provisions in the special laws exist for the protection of interests of consumers; (ii) provisions for creation of benches of the national commission and state commissions as well as holding of circuit benches of these commissions; (iii) prescribing the period within which complaints are to be admitted, notices are to be issued to opposite party and the complaints are to be decided similar provisions have been proposed also in respect of appeals; (iv) no adjournment to be ordinarily allowed and allowed where, a speaking order giving reasons would be made; (v) enhancing the pecuniary limits of jurisdiction of the consumer disputes redressal agencies so that the district forums are unable to deal with complaints involving value of goods or services and claims compensation up to rs 20 lakhs (against rs 5 lakhs at present), fixing the pecuniary limits of jurisdiction of state commissions from rs 20 lakhs upto rs 1 crore (as against above rs 5 lakhs upto rs 20 lakhs at present) and national commission above rs 1 crore (as against above rs 20 lakhs at present); (vi) enabling provision for charging of fee in respect of complaints filed before the consumer disputes redresal agencies; (vii) provision for depositing, either fifty per cent of the amount of compensation or fine or the amounts mentioned below whichever are less, before the admission of appeal, namely:— (a) rs 25,000 in case of appeal to a state commission from the district forum; (b) rs 35,000 in case of an appeal to the national commission from a state commission; and (c) rs 50,000 in case of appeal to the supreme court from the national commission; (viti) exclusion of services availed for commercial purposes from the purview of the consumer disputes redressal agencies; (ix) permitting the engagement of legal practitioner by an opposite party only if the complainant is himself a legal practitioner or he engages a legal practitioner or he has no objection to the opposite party engaging a legal practitioner; (x) prescribing minimum qualifications as well as disqualifications for members of the consumer disputes redressal agencies; (xi) provision for re-appointment of president and members of the district forum, state commissions and the national commission, for another term of five years; (xii) extending the provisions of the act to service providers indulging in unfair or restrictive trade practices or offering services which are hazardous; (xiii) bringing sale of spurious goods or services within the meaning of unfair trade practices; (xiv) expressly conferring the powers of a judicial magistrate of the first class on the consumer disputes redressal agencies with a view totrying offences under the act; (xv) provision for recovery of amounts ordered to be paid by the consumer disputes redressal agencies as arrears of land revenue; (xvi) provision for issue of interim orders by the consumer disputes redressal agencies, in cases where it is considered necessary by such agencies; (xvii) provision for substitution of legal heir or representative as a party to the complaint in the event of the death of the complainant or the opposite party 3 the consumer protection councils at the central and state levels are important bodies for the promotion and protection of consumer rights it is proposed to make the establishment of these councils a necessary requirement it is also proposed to provide for the establishment of district consumer protection councils for promotion and protection of consumer rights at the district level 4 the bill seeks to achieve the aforesaid objects new delhi; shanta kumar the 20th april, 2001 notes on clausesclause 2 of the bill seeks to amend sub-section (1) of section 2 of the consumer protection act, 1986 so as to define various expressions used in the act the scope of some of the definitions has been broadened and some new definitions have been added sub-clause (a) of clause 2 seeks to include the legal heir or representative of a consumer, in case of death of the consumer within the meaning of "complainant" sub-clause (b) seeks to broaden the definition of "complaint" to include allegations against service providers of adopting unfair or restrictive trade practices, or charing of excess price or offering services which are hazardous to life and safety sub-clause (c) seeks to exclude from the definition of "consumer" any person who avails of services for commercial purposes commercial undertakings which are already excluded from approaching the redressal agencies in respect of defective goods will thus be excluded from seeking relief from such agencies in respect of deficient services as well the consumer protection act, 1986 is intended primarily to serve the interests of individual consumers sub-clause (d) of this clause seeks to amend the definition of "manufacturer" to include any manufacturer who assembles goods from parts made by others or puts his mark on any goods made or manufactured by any other manufacturer whether he claims such goods to be manufactured by himself or not subclause (e) of this clause seeks to enlarge the definition of "restrictive trade practice" to mean manipulation of price or delivery or flow of supplies leading to unjustified cost and restriction on the consumers and includes delay beyond the agreed period which has led or is likely to lead to rise in the price sub-clause (h) of this clause also seeks to enlarge the definition of "unfair trade practice" to include withholding of information about final results of any scheme offering gifts, prizes, or other items free of charge, and manufacture of spurious goods and sale of spurious goods or adoption of deceptive practices in the provision of services subclause (g) seeks to define "spurious goods and services" as goods and services which are claimed to be genuine but are actually not so sub-clause (e) seeks to define "regulation" as regulation made by the national commission sub-clause (f) further seeks to bring more clarity to the definition of "service" by clarifying that the services mentioned are only illustrative clause 3 seeks to substitute a new section for section 3 so as to provide that the provisions of this act shall not apply where a corresponding remedy of judicial nature is available to a person under a special law clauses 4 and 5 seek to amend sections 4 and 7 respectively so that establishment of the central consumer protection council and the state consumer protection council which is in the larger interests of consumers becomes a necessary requirement clause 4 also seeks to provide for inclusion of up to ten official and non-official members nominated by the central government in the state council clause 6 seeks to insert new sections 8a and 8b to provide for the setting up a district consumer protection council for every district with objects similar to those of the central and state councils this will provide a forum for promoting and protecting the rights of consumers at grass root level clause 7 seeks to make amendments in section 10 to provide minimum age of thirtyfive years, minimum qualification of graduation and minimum experience of ten years for members of the district forum it also seeks to provide disqualifications for the office of member it seeks to make a new proviso to sub-section (1a) to provide that where the president of the state commission is, by reason of absence or otherwise, unable to act as chairman of the selection committee, the state government may refer the matter to the chief justice of the high court who shall nominate a setting judge of that high court to act as a chairman to avoid delay in selection it also seeks to amend sub-section (2) to provide for reappointment of presidents and members to enable utilisation of their experiences for a longer period it also seeks to provide that persons already holding office of president or member will continue to hold such office till the completion of their term it further seeks to amend sub-section (3) to previde that the state government shall appoint a member on whole-time basis on the recommendations of the president of the state commission taking into consideration the workload and other factors as may be prescribedclause 8 seeks to amend section 11 to enhance the jurisdiction of the district forum to entertain complaints where the value of the goods or services and the compensation claimed does not exceed rupees twenty lakhs this will be more convenient for the complainants and also reduce the number of complaints filed with the state commission and national commission clause 9 seeks to substitutes section 12 to provide that every complaint filed with the district forum shall be accompanied with such amount of fee as may be prescribed it also seeks to provide that the admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint is received and that once admitted a complaint shall not be transferred to any other court or tribunal this will help to quicken disposal of complaints clause 10 seeks to amend section 13 to require the district forum to refer a copy of the admitted complaint within twenty-one days from the date of its admission to the opposite party to give his version it also seeks to make explicit the provision for ex-parte order it seeks to include a new sub-section (3a) to provide that complaint shall be heard as expeditiously as possible and endeavour made to decide the complaints within the prescribed period adjournments would ordinarily not be granted, and if granted for reasons to be recorded in writing by the forum, an order as to the costs occasioned by the adjournment would also be made by the forum it further seeks to include a new sub-section (3b) to enable the district forum to pass interim orders where required it also seeks to include a new subsection (7) for the substitution of parties in accordance with the provisions of order xxii of the first schedule to the code of civil procedure, 1908 in the event of death of the complainant or opposite party these amendments will facilitate quicker disposal of cases, enable complainants to get immediate relief where required, and streamline procedures clause 11 seeks to amend section 14 to empower the district forum if it is satisfied that the allegations contained in the complaint are proved, also to issue orders directing the opposite party, inter alia, to pay punitive damages, cease manufacture of hazardous goods and desist from offering services which are hazardous in nature, pay such sum not less than five per cent of the value of defective goods sold or services provided where loss or injury has been suffered by a large number of consumers who are not conveniently identifiable, and to issue corrective advertisement to neutralise the effect of misleading advertisement it also seeks to amend sub-section (2) to do away with the requirement of de novo proceedings if a member is unable to conduct the proceeding till it is completed and allow the proceeding to continue from the stage it was last heard by the previous member this will avoid delay in disposal of such cases clause 12 seeks to insert a new proviso in section 15 to provide that no appeal by a person who is required to pay any amount in terms of an order of the district forum, shall be entertained by the state commission unless the appellant deposits fifty per cent of the amount or twenty-five thousand rupees, whichever is less clause 13 seeks to make amendments in section 16 to make the same provisions with regard to qualifications and disqualifications of members, chairmanship of the selection committee, re-appointment of presidents and members, resignation of members, completion of term of existing members and appointment of members on whole-time basis in respect of the state commission as in the case of the district forums it also seeks to make provision to enable appointment of more than two members in the state commission and creation of benches this will facilitate quicker disposal of cases in state commissions having a large number of cases clause 14 seeks to amend section 17 so as to clarify the jurisdiction of the state commission and also to raise its jurisdiction to entertain complaints where the value of goods or services and compensation claimed exceed rupees twenty lakhs but does not exceed rupees one crore at present the jurisdiction of the state commission is above rupees five lakhs and up to rupees twenty lakhs this will be convenient for the complainants and will reduce the number of complaints filed before the national commissionclause 15 seeks to insert a new section 17a to empowr the state commission to transfer a case from one district forum to another district forum within the state if required for the ends of justice it also seeks to insert another new section 17b to enable the state commissions to hold circuit benches, clause 16 seeks to delete section 18a clause 17 seeks to insert a new proviso in section 19 so that no appeal by a person, who is required to pay any amount in terms of an order of the state commission, shall be entertained by the national commission unless the appellant has deposited in the manner as prescribed by the state governments fifty per cent of the amount or rupees thirty-five thousand, whichever is less clause 18 seeks to insert a new section 19a to provide that endeavour shall be made to dispose of appeals filed before the state commission or the national commission within ninety days from the date of admission it also further seeks to provide that no adjournment shall ordinarily be granted unless for sufficient reason for grant of adjournment has been recorded in writing and costs for such adjournment have also been specified in order clause 19 seeks to make, amendments in section 20 to make the same provisions in respect of qualifications and disqualifications for members, reappointment of the presidents and members, resignation of members and completion of term of existing members with regard to the national commission as in the case of the state commission and district forum clause 16 also seeks to make provision to the appointment of more than four members and also creation of benches of the national commission clause 20 seeks to amend section 21 to provide that complaints may be filed before the national commission where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore this is consequential ot changes sought in the jurisdiction of the district forum and state commissions clause 21 seeks to substitute section 22 so that the provisions of sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the district forum, shail, with such modifications as may be considered necessary by the commission, be applicable to the disposal of disputes by the national commission it also seeks to empower the national commission to review any order made by it, when there is an error apparent on the face of record these provisions will make the powers and procedures in respect of national commission more explicit it also seeks to insert new sections 22a, 22b, 22c and 22d new section 22a empowers the national commission to set aside ex-parte orders against the opposite party or complainant in the interest of justice new section 22b empowers the national commission to transfer any complaint pending before the district forum of one state to a district forum of another state or before one state commission to another state commission in the interest of justice new section 22c enables the national commission to hold circuit benches in any part of the country new section 22d provides for the seniormost member to preside in the absence of the president of the district forum, state commission and national commission, as the case may be, to ensure un-interrupted functioning of the forum or commission however, in the case of national commission, it provides that where a retired judge of a high court is a member or where number of such members is more than one, the seniormost amongst them shall preside over the commission these provisions will streamline the functioning of the consumer redressal forums and also reduce the number of appeals to the supreme court from orders of the national commission clause 22 seeks to insert a new proviso in section 23 so that no appeal by a person, who is required to pay any amount in terms of an order of the national commission, shall be entertained by the supreme court unless the appellant has desposited in the manner as prescribed by the central government fifty per cent of that amount or rupees fifty thousand, whichever is lessclause 23 seeks to substitute section 25 to provide for attachment by the district forums, state commission or national commission, as the case may be, of the property of a person not complying with an interim order it also seeks to provide that on application from any person entitled to receive any amount from another person under an order made by a district forum, state commission and national commission which remains due, the district forum, state commission and national commission, as the case may be, may issue a certificate to the collector for recovery of the amount as arrears of land revenue these new provisions are expected to overcome the delays and other difficulties faced in execution of orders of the redressal agencies through civil courts clause 24 seeks to amend section 27 to empower the district forum, state commission and national commission, as the case may be, with the powers of a judicial magistrate of the first class for the summary trial of offences under the act notwithstanding anything contained in the code of criminal procedure, this is considered necessary to clarify that the district forums or state commissions or national commission can themselves try offences under the act and impose penalty of imprisonment it also seeks to delete the proviso to section 27 which empowers the redressal agencies to impose a sentence of imprisonment or fine lesser than the minimum prescribed clause 25 seeks to insert a new section 28a so that all notices required by this act can be served by using modern communication facilities including speed post, courier services and fax messages this will help to quicken proceedings clause 26 seeks to insert a new sub-section (3) in section 29 to enable the government to make orders to remove any difficulty with respect to the amended provisions of the act for a period of two years after their coming into force clause 27 seeks to insert a new section 29b to restrict the engagement of a legal practitioner by the opposite party the opposite party cannot be represented by a legal practitioner unless the complainant has engaged a legal practitioner; the complainant is himself a legal practitioner, the complainant has no objection to the opposite party engaging a legal practitioner this is expected to reduce the possibility of protacted proceedings clause 28 seeks to substitute a new section for section 30 to deal with the powers of the central government and the state governments to make rules clause 29 seeks to insert a new section 30a to empower the national commission to make regulations with the previous approval of the central government where required for the purpose of giving effect to the provisions of the act, and in particular to make provisions for the cost of adjournment of any proceedings before the district forum, the state commission or the national commission, as the case may be, which a party may be ordered to pay clause 30 seeks to substitute section 31 in respect of procedures for laying of rules and regulations made under the act before each house of parliament or the state legislature, as the case may be financial memorandumclause 6 of the bill seeks to insert new sections 8a and 8b in the act to provide for the establishment of district consumer protection councils at the district level the responsibility for the establishment of district consumer protection council lies with state governments and union territory administrations it is not possible to indicate the exact expenditure involved at this stage since the exact amount for establishment of such councils in the union territories would vary depending on the size of the council and other factors 2 clause 13 of the bill seeks to amend section 16 of the act with a view to enable the state commissions to appoint more members and for constitution of benches of the state commissions it is not possible to indicate the exact expenditure involved for appointment of additional members and for creation of benches in the union territories as this would depend on the actual number of additional members appointed and additional benches constituted 3 clause 19 of the bill seeks to amend section 20 of the act with a view to enable the national commission to appoint additional members and for constitution of benches of the national commission it is not possible to indicate the exact expenditure involved for appointment of additional members and constitution of benches as this would depend on the actual number of members appointed and additional benches constituted  memorandum regarding delegated legislationclause 6 of the bill seeks to insert new sections 8a and 8b with a view to providing for the establishment of district consumer protection councils the procedure for transaction of business in the said council shall be such as may be provided in the rules to be made by the state government 2 clause 7 of the bill seeks to amend section 10 of the act to provide for disqualification for appointment of members of the district forums in addition to disqualifications mentioned in the proviso to clause (b) of sub-section (1) of that section the state governments are being empowered to prescribe such other disqualifications as they may deem fit similar powers are being conferred on state governments to prescribe disqualifications for appointment of members of the state commission 3 clause 9 of the bill seeks to provide by amending section 12 of the act that a complaint filed with the district forum shall be accompanied with an amount of fee the amount of fee and the manner in which such fee shall be paybale will be provided in the rules to be made by the state governments similar provisions are being proposed in respect of complaints filed before the state commissions wherein the state governments are being empowered to make rules in respect of complaints filed before the national commission the amount of fee and the manner in which such fees shall be payable will be provided in the rules to be made by the central government 4 clause 11 of the bill seeks to amend section 14 of theact with a view to empowering the redressal agencies to direct the opposite party to pay such sum as may be determined by it if loss or injury has been suffered by a large number of consumers who are not identifiable the state governments are being empowered to prescribe by rules the manner in which such amount shall be credited and utilised where the district forum or state commission has ordered the opposite party to pay any sum under this provision similar provisions are to be made by the central government where an order is passed by the national commission in similar cases 5 clause 12 of the bill seeks to provide by amending section 15 of the act that an appeal against an order of the district forum shall be entertained by the state commission only when the appellant has deposited the amount prescribed the state governments are being empowered under this provision to provide in the rules the manner in which such money shall be deposited similar provisions are being made for empowering the central government to make rules where an appeal is to be preferred against an order of the state commission to the national commission and from the order of the national commission to the supreme court 6 clause 29 of the bill seeks to insert a new section 30a in the act with a view to providing that the national commission may make regulations with the previous approval of the central government to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this act 7 the aforesaid matters in respect of which rules or regulations may be made are matters of detail and it is not practicable to provide for all the matters in the aforesaid bill itself delegation of legislative power is, therefore, of normal character      2 (/) in this act, unless the context otherwise requires,— definitions      (b) "complainant" means—      (c) "complaint" means any allegation in writing made by a complainant that— (i) an unfair trade practice or a restrictive trade practice has been adopted by any trader;      (iv) a trader has charged for the goods mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force or displayed on the goods or any package containing such goods; (v) goods which will be hazardous to life and safety when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force requiring traders to display information in regard to the contents, manner and effect of use of such goods; with a view to obtaining any relief provided by or under this act; (d) "consumer" means any person who,—      (ii) hires or avails of any services 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 beneficiary of such services other than the person who fures or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned persons explanation—for the purposes of sub-clause (i), "commercial purpose" does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment;      (j) "manufacturer" means a person who— (i) makes or manufactures any goods or parts thereof; or (ii) does not make or manufacture any goods but assembles parts thereof made or manufactured by others and claims the end-product to be goods manufactured by himself; or (iii) puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer and claims such goods to be goods, made or manufactured by himself explanation—where a manufacturer despatches any goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be the manufacturer even though the parts so despatched to it are assembled at such branch office and are sold or distributed from such branch office;      (nn) "restrictive trade practice" means any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as a condition precedent for buying, hiring or availing of other goods or services; (0) "service" means service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;      (r) "unfair trade practice" means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely:—      act not in derogation of any other law 3 the provisions of this act shall be in addition to and not in derogation of the provisions of any other law for the time being force ° chapter i  consumer protection councils4 (1) the central government may, by notification, establish with effect from such date as it may specify in such notification, a council to be known as the central consumer protection council (hereinafter referred to as the central council) the central consumer protection council (2) the central council shall consist of the following members, namely:— (a) the minister in charge of the department of food and civil supplies in the central government, who shall be its chairman, and (b) such number of other official or non-official members representing such interests as may be prescribed      7 (1) the state government may, by notification, establish with effect from such date as it may specify in such notification, a council to be known as the consumer protection council for 646 (herenafter referred to as the state council) the state consumer protection councils (2) the state council shall consist of the following members, namely:—— (a) the minister incharge of consumer affairs in the state government who shall be its chairman; (b) such number of other official or non-official members representing such interests as may be prescribed by the state government      composition of 10 (7) each district forum shall consist of -      the district forum (b) two other members, who shall be persons of ability, integrity and standing, and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman;      (ja) every appointment under sub-section (/) shall be made by the state government on the recommendation of a selection committee consisting of the following, namely:—      (2) every member of the district forum shall hold office for a term of five years or up to the age of 65 years, whichever is earlier, and shall not be eligible for re-appointment:provided that a member may resign his office in writing under his hand addressed to the state government and on such resignation being accepted, his office shall become vacant and may be filled by the appointment of a person possessing any of the qualifications mentioned in sub-section (7) in relation to the category of the member who has resigned (3) the salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the district forum shall be such as may be prescribed by the state government | manner    | in    ||-----------|-------|| complaint | shall || be        | made |11 (/) subject to the other provisions of this act, the district forum shal! have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees five lakhs      | jurisdiction    | of       ||-----------------|----------|| the             | district || forum          |          |12 a complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a district forum by— (a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided; (b) any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not; (c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the district forum, on behalf of, or for the benefit of, all consumers so interested; or (d) the central or the state government i of 1956 explanation—for the purposes of this section, "recognised consumer association" means any voluntary consumer, association registered under the companies act, 1956 or any other law for the time being in force 13 (/) the district forum shall, on receipt of a complaint, if it relates to any goods,— procedure on receipt of complaint (a) refer a copy of the complaint to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the district forum;      (2) the district forum shall, if the complaint received by it under section 12 relates to goods in respect of which the procedure specified in sub-section (7) cannot be followed, or if the complaint relates to any services,—      (b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the district forum, the district forum shall proceed to settle the consumer dispute,—      (ii) on the basis of evidence brought to its notice by the complaint where the opposite party omits or fails to take any action to represent his case within the time given by the forum finding of the district forum14 (j) if, after the proceeding conducted under section 13, the district forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things, namely:—      (d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party; (e) to remove the defects or deficiencies in the services in question (2) every proceeding referred to in sub-section (1) shall be conducted by the president of the district forum and at least one member thereof sitting together provided that where the member, for any reason, is unable to conduct the proceeding till it is completed, the president and the other member shall conduct such proceeding de novo      appeal 15 any person aggrieved by an order made by the district forum may prefer an appeal against such order to the state commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed: provided that the state commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period 16 (/) each state commission shall consist of—      composition of the state commission (b) two other members, who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman: provided that every appointment under this clause shall be made by the state government on the recommendation of a selection committee consisting of 'ye following, namely:— (i) president of the state commission - chairman, (ii) secretary of the law department of the state - member, (iii) secretary, incharge of the department dealing with consumer affairs in the state - member (2) the salary or honorarium and other allowances payable to, and the other terms and conditions of service of, the members of the state commission shall be such as may be prescribed by the state government (3) every member of the state commission shall hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier and shall not be eligible for reappointment (4) notwithstanding anything contained in sub-section (3), a person appointed as a president or as a member, before the commencement of the consumer protection (amendment) act, 1993, shall continue to hold such office as president or member, as the case may be, till the completion of his term jurisdiction of 17 subject to the other provisions of this act, the state commission shall have jurisdiction— the state commission (a) to entertain— (complaints where the value of the gqods or seryices and gompensation, ifany, claimed exceeds rupees five lakhs but does not exceed rupees twenty lakhs; and 18a when the office of the president of the district forum or of the state commission, vacancy in the office of the president as the case may be, is vacant or when any such president is, by reason of absence or otherwise, unable to perform the duties of his office, the duties of the office shall be performed by such person, who is qualified to be appointed as president of the district forum or, as the case may be, of the state commission, as the state government may appoint for the purpose appeals 19 any person aggrieved by an order made by the state commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 17 may prefer an appeal against such order to the national commission within a period of thirty days from the date of the order in such form and manner as may be prescribed: provided that the national commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period 20 (/) the national commission shall consist of—      (6) four other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman: provided that every appointment under this clause shall be made by the central government on the recommendation of a selection committee consisting of the following, namely:— (a) a person who is a judge of the supreme court, to be nominated by the chief justice of india - chairman; (b) the secretary in the department of legal affairs inthe government of india —~ member; (c) secretary of the department dealing with consumer affairs in the government of india - member (3) every member of the national commission shall hold office for a term of five years or up to the age of seventy years, whichever is earlier and shall not be eligible for reappointment 50 of 1993 (4) notwithstanding anything contained in sub-section (3), a person appointed as a president or as a member before the commencement of the consumer protection (amendment) act, 1993, shall continue to hold such office as president or member, as the case may be, till the completion of his term 21 subject to the other provisions of this act, the national commission shall have jurisdiction— (a) to entertain— (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs; and      22 'fhe,national commission shall, in the disposal of any complaints or any proceedings before it, have-— (a) the powers of a civil court as specified in sub-sections (4), (5) and (6) of section 13, (@) the power to issue an ordet tortbe oppasite party directing, hin ig da any one or more of the things referred to in clauses (a) to (i) of sub-section (/) of section 14, and follow such procedure as may be prescribed by the central government penalties 23 any person, aggrieved by an order made by the national commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 21, may prefer an appeal against such order to the supreme court within a period of thirty days from the date of the order: provided that the supreme court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period      25s every order made by the district forum, the state commission or the national commision may be enforced by the district forum, the state commission or the national commission, as the case may be, in the same manner as if it were a decree or order made by enforcement of orders by the forum, the state commission or a court in a suit pending therein and it shall be lawful for the district forum, the state the national commission, commission or the national commission to send, in the event of its inability to execute it, such order to the court within the local limits of whose jurisdiction, - (a) in the case of an order against a company, the registered office of the company is situated, or (b) in the case of an order against any other person, the place where the person concerned voluntarily resides or carries on business or personally works for gain, is situated, and thereupon, the court to which the orders is so sent, shall execute the order as if it were a decree or order sent to it for execution      penalties 27 where a trader or a person against whom complaint is made or the complainant fails or omits to comply with any order made by the district forum, the state commission or the national commission, as the case may be, such trader or person or the complainant shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both: provided that the district forum, the state commission or the national commission, as the case may be, may, if it is satisfied that the circumstances of any case so required, impose a sentence of imprisonment or fine, or both, for a term lesser than the minimum term and the amount lesser than the minimum amount, specified in this section      power to make rules 30 (1) the central government may, by notification, make rules for carrying out the provisions contained in clause (a) of sub-section (/) of section 2, clause (b) of sub-section (2) of section 4, sub-section (2) of section 5, clause (iv) of sub-section (4) of section 13, section 19, sub-section (2) of section 20 and section 22 of this act (2) the state government may, by notification, make rules for carrying out the provisions contained in clause (b) of sub-section (2) and sub-section (4) of section 7, sub-section (3) of section 10, clause (c) of sub-section (/) of section 13, sub-section (3) of section 14, section 15 and sub-section (2) of section 16 31 (/) every rule made by the central government under this act shall be laid, as soon laying of rules as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule (2) every rule made by a state government under this act shall be laid as soon as may be after it is made, before the state legislature