supply of electrical or other energy, board or lodging or both, entertainment, amusement or the purveying a news or other information, but does not include the rendering of any service free of charge or under a contract of personal service; (p) "state commission" means a consumer disputes redressal 5 commission established for a state under clause (b) of section 9; (q) "trader" in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof and where such goods are sold or distributed in package form, includes the packer thereof; (r) the expression "unfair trade practice" shall have the same meaning as in section 36a of the monopolies and restrictive trade practices act, 1969, but shall not include an unfair trade practice adopted by the owner of an undertaking to which part a of chapter iii of that act applies or by any person acting on behalf of, or for the benefit of, such owner (2) any reference in this act to any other act or provision thereof which is not in force in any area to which this act applies shall be construed to have a reference to the corresponding act or provision thereof in force in such area, é 20 act not 3 the provisions of this act shall be in addition to and not in n deroderogation of the provisions of any other law for the time in force ation of iny other chapter ii  aw, consumer protection councilsthe cen- 4, (1) the central government may, by notification establish with 25 ral coneffect from such date as it may specify in such notification, a council rurhee to be known as the central consumer protection council (hereinafter protection ferted t thie central gsanel council, referred to as the central uncil)  (2) the central council shall consist of the following members, namely :— 39 (a) the minister incharge of the department of food and civil supplies in the central government, who shall be its chairman, and (6) such number of other official or non-official members representing such interests as may be prescribed procedure 5 (1) the central council shall meet as and when necessary but not 35 for jess than three meetings of the council shall be held every year meetings of the (2) the central council shall meet at such time and place as the central chairman may think fit and shall observe such procedure in regard to council the transaction of its business as may be prescribed objects of 6 the objects of the central council shall be to promote and pro- 40 te cart tect the rights of the consumers throughout the country such as,— council (a) the right to be protected against marketing of goods which are hazardous to life and property; (b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer 45 against unfair trade practices; (c) the right to be assured, wherever possible access to a variety of goods at competitive prices; (d) the right to be heard and to be assured that consumers' interests will receive due consideration at appropriate forums; a (e) the right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and (f) the right to consumer education, 7 (1) the state government may, by notification, establish with effect from such date as it may specify in such notification, a council the state consumer protection councils zo to be known as the consumer protection council for (hereinafter referred to as the state council) (2) the state council shall consist of such members as may be specified by the state government by notification from time to time 8 the objects of every state council shall be to promote and pro- 15 tect within the state the rights of the consumers laid down in clauses objects of the state council (a) to (f) of section 6  chapter iii consuumer dispuutes redressal agencies9 there shall be established for the purposes of this act, the follow- _ going agencies, namely: - establishment of consumer disputes redressal agencies (a) a consumer disputes redressal forum to be known as the "district forum" established by the state government with the prior approval of the central government in each district of the state by notification; 25 (b) a consumer disputes redressal commissian to be known as the "state commission" established by the state government with the prior approval of the central government in the state by notification; and (c) a national consumer disputes redressal commission estab- 30 lished by the central government by notification compo- 10 (1) each district forum shall consist of— sition of the distric forum(a) a person who is, or has been, or is qualified to be a district judge to be nominated by the state government, to be its president; (b) a person of eminence in the field of education, trade or 35 commerce; (c) a lady social worker (2) every member of the district forum shall hold office for a term of five years or upto the age of 65 years whichever is earlier, and shall not be eligible for re-appointment: 40 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 _subsection (1) in relation to the category of the member who has resigned (8) 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 ad 11, (1) subject to the other provisions of this act, the district forum a cae shall have jurisdiction to entertain complaints where the amount or value 5 district of the goods or services and the compensation, if any, claimed is less than forum tupees one lakh, (2) a complaint shall be instituted in a district forum within the local limits of whose jurisdiction, -  (a) the opposite party or each of the opposite parties, where 10 there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business, or personally works 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 15 voluntarily resides, or carries on business, or personaily works for gain, provided that in such case either the permission of the district forum is given, or the opposite parties who do not reside, or carry on business, or personally work for gain, as the case may be, acquiesce in such institution; or 20 (c) the cause of action, wholly or in part, arises manner 12 a complainant, in relation to any goods sold or delivered or any in which —_— service provided, may be filed with a district forum by— ora (a) the person to whom such goods are sold or delivered or such plaint ' shall be service provided; 25 mandes (b) any recognised consumer association, whether the person to whom the goods sold or delivered or service provided is a member of such association or not; or (c) the central or the state government explanation—for the purpose of this section "recognised consumer 30 association" means any voluntary consumer association registered under the companies act, 1956 or any other law for the time being in force proce- 13, (1) the district forum shall, on receipt of a complaint, if it relates dure on to any goods, receipt 35 of com- (a) refer a copy of such complaint to the opposite party men- plaints tioned 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 ie granted by the district forum; (b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained 4° in the complaint, or omits or fails 10 take any action to represent his case within the time given by the district forum, the district forum shall proceed to settle the consumer dispute in the manner specified in clauses (c) to (9); (c) where the complaint alleges a defect in the goods which can- ig not be determined without proper analysis or test of the goods, the district forum shal] obtain a sample of the goods from the complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or whether the goods suffer trom any other defect and to report its findings thereon to the district! forum within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by the district forum; 10 (d) before any sample of the goods is referred to any appropriate laboratory under clause (c), the district forum may require the complainant to deposit to the credit of the forum such fees as may be specified for payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question; (e) the district forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to earry out the analysis or test mentioned in clause (c) and on receipt of the report from the appropriate laboratory, the district forum shall forward a copy of the report along with such remarks as the district forum may feel appropriate to the opposite party (f) if any of the parties disputes the correctness of the findings 20 of the appropriate laboratory or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, the district forum shall require the opposite party or the complainant to submit in writing his objections in regard to the report made by the appropriate laboratory; 95 30 (g) the district forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the objection made in relation thereto under clause (f) and issue an appropriate order under section 14 (2) the district forum shall, if the complaint received by it under section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to 35 2ny services,— (a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period-not exceeding fifteen days as may be granted by the district forum; (b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the district forum, the district forum shall proceed to settle the consumer dispute,— (i) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint, or (ii) on the basis of evidence brought to its notice by the complainant where the opposite party omits or fails to take any action to represent his case within the time given by the forum(3) no proceedings complying with the procedure laid down in subsections (1) and (2) shall be called in question in any court on the ground that the principles of natural justice have not been complied with, (4) for purposes of this section, the district forum shall have the 5 same powers as are vested in a civil court under the code of civil procedure, 1908 while trying a suit in respect of the following matters, namely: - (i) the summoning and enforcing attendance of any defendant or witness and examining the witness on oath; gi (ii) the discovery and production of any document or other material object producible as evidence; (iti) the reception of evidence on affidavits; (iv) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant '9 source; 5 (v) issuing of any commission for the examination of any witness; and (vi) any other matter which may be prescribed (5) every proceeding before the district forum shall be deemed to 2° be a judicial proceeding within the meaning of sections 193 and 228 of the indian penal code, and the district forum shall be deemed to be a civil court for the purposes of section 195, and chapter xxvi of the code of criminal procedure, 1973 finding 14 (1) if, after the proceeding conducted under section 13, the 5 of the district forum is satisfied that the goods complained against suffer from district any of the defects specified in the complaint or that any of the allega- se  tions contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to take one or more of 90 the followng things, namely:— (a) to remove the defect pointed out by the appropriate laboratory from the goods in question; (b) to replace the goods with new goods of similar description which shall be free from any defect; (c) to return to the complainant the price, or, as the case may 35 be, the charges paid by the complainant to the opposite party; (d) to pay such amount as may be awarded by the district forum as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party (2) every order made by the district forum shall be signed by all 40 the members constituting it and, if there is any difference of opinion, the order of the majority of the members constituting it shall be the order of the district forum (3) subject to the forgoing provisions, the procedure relating to the conduct of the members of the district forum, its sittings and other 45 matters shall be such as may be prescribed by the state government 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: b 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 (1) each state commission shall consist of,— (a) a person who is or has been a judge of a high court, ap- 10 pointed by the state government, who shall be its president; (b) two other members who shall be persons of ability, integri- composition of the state commission, ty and standing and have adequate knowledge or experience of, or have shown capacity in dealing with problems relating to econo mics, law, commerce, accountancy, industry, public affairs or admi- 15 nistration, ,one of whom shall be a woman: provided that no sitting judge of a high court shall be appointed under this sub-section except after consultation with the chief justice of that high court (2) the salary or honourarium and other allowances payable to, and zo the other terms and conditions of service (including tenure of office) of the members of the state commission shall be such as may be prescribed by the state government ' 17 subject to the other provisions of this act, the state commission shall have jurisdiction - jurisdiction (a) to entertain— of the state commision () complaints where the value of the goods or services and compensation if any, claimed exceeds rupees one lakh but does not exceed rupees ten lakhs; and (ii) appeals against the orders of any district forum within the state; and 30 35 (b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or hag been decided by any district forum within the state where it appears to the state commission that such district forum has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdictign illegally or with material irregularity 18 the procedure specified in section 12, 13 and 14 and under the rules made therein for the disposal of complaints by the district forum 40 shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the state commission procedure applicable to state commissions, 19 any person aggrieved by an order made by the state commission appealsin exercise of its powers conferred by sub-clause () of clause (a) of section 17 may prefer an appeal against such order to the national com- tission 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 5 20 (1) the national commission shall consist of - composition of (a) a person who is or has been a judge of the supreme court, to be appointed by the central government, who shall be its president; the national commission, (b) four other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have 10 shown capacity in dealing with, problems reiating to economics, law, commerce, accountancy, industry, public affairs or administration one of whom shall be a woman: provided that no sitting judge of the supreme court shall be appointed under this sub-section except after consultation with the chief justice 15 of that court (2) the salary or honourarium, and other allowances payable to and the other terms and conditions of service (including tenure of office) of the members of the nationa] commission shall be such as may be prescribed by the central government 20 21, subject to the other provisions of this act, the national commis sion shall have jurisdiction,— (a) to entertain, - a jurisdiction of the national commission, (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees ten lakhs; and 25 (i) appeals against the orders of any state commission; and (6) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any state commission where it appears to the national commission that such state commission has exercised a jurisdiction not vested 30 in it by law, or has failed exercise a jurisdiction so vested, or has ss acted in the exercise of its jurisdiction illegally or with material irregularity 22 the national commission shall, in the disposal of any complaints or of any proceedings before it have the powers of a civil court as speci- 3 5 fied in sub-section (4) and (5) of section 13 and follow such procedure procedure applicable as may be prescribed by the central government to the national commission appeal, 23, any person aggrieved by an order made by the national com- ~ mission 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 40 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 d if it is satisfied that there was sufficient cause for not filling it within that period finality of orders, 24 every order of a district forum, state commission or the national coramission shall, if no appeal has been preferred against such 'order under the provisions of this act, be final, 25, every order made by the district forum, the state commission inforce_ ment 5 or the national commi:sion may be erforced py the district forum, the state commission or the national commission, as the case may be, in the same manner as if it were a deciec or order made by a court in a suit pending therein and it shall be lawful for the district forum, the state commission or the national commission to send, in the event of of orders by the forum, the state commis 10 its inability to execute it, such order to the court within the local limits of whose iurisdiction,— (a) in the case of an order agai nst_a company, the registered sion or the national commis~ sion, office of the company is situated, or (b) in the case of an order against any other person, the place 15 where the person concerned voluntarily resides or carries on business or personally works for gain, is situated, and thereupon, the court to which the order is so sent, shall execute the order as if it were a decree or order sent to it for execution, 26 where a complaint instituted is found to be frivolous or vexatious, 20 the district forum, the state commission or, as the case may be, the national commission, may dismiss the complaint dismissal of frivolous or vexatioug complaints, penalties, 27, where a trader or a person against whom a complaint made fails or omits to comply with any order made by the dis- trict forum, the state commission or the national commission, as the 5 case may be, such trader or person 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 go national commission, as the case may be, may, if it is satisfied that the circumstances of any case so require, impose a sentence of imprisonment or fine, or both, for a term lesser than the minimum term and the amount lesser than the minimum amount, as the case may be specified in this section,  35 chapter iv miscellaneousprotection 28 no suit, prosecution or other legal proceedings shall lie against the members of the district forum or the state commission or the national commission or any officer or person acting under the direction of the dis- 40 trict forum, the state commission or the national commission for executing any order made by it or in respect of any thing which is in good | of     | action    ||--------|-----------|| taken  | in        || good   |           || faith, |           |faith done or intended to be done by such member, officer or person under this act or under any rule or order made thereunder 29 (1) if any difficulty arises, in giving effect to the provisions of this power to remove 45 act, the central government may, by order in the official gazette, make such provisions not inconsistent with the provisions of this act as appear difficulties,to it to be necessary or expedient for removing the difficulty; provided that no such order shal] be made after the expiry of a period of two years from the commencement of this act (2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliament power 30, (1) the central government may, by notification, make rules for carrying out the provisions contained in clause (b) of sub-section (2) to make rules of section 4, sub-section (2) of section 5, clause (vi) of sub-section (4) of section 13, section 19, sub-section (2) of section 20 and section 22 of this act 1 (2) the state government may, by notification, make rules for carrying out the provisions contained in sub-section '(3) of section 10, subsection (2) of section 12, clause (c) of sub-section (1) of section 13, subsection (3) of section 14, section 15 and sub-section (2) of section 16 laying of rules, 31, (1) every rule made by the central government under this act, shall be laid, as soon as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any by 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,  statement of objects and reasonsthe consumer protection bill, 1986 seeks to provide for better protection of the interests of consumers and for that purpose, to make provision for the establishment of consumer councils and other authorities for the settlement of consumer disputes and for matters connected therewith 4 2 it seeks, inter alia, to promote and protect the rights of consumers such as— (a) the right to be protected against marketing of goods which are hazardous to life and property; i (b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices; (c) the right to be assured, wherever possible, access to an authority of goods at competitive prices; (d) the right to be heard and to be assured that consumers' interests will receive due consideration at appropriate forums; 1 (e) the right to seek redressel against unfair trade practices or unscrupulous exploitation of consumers; and (f) right to consumer education t 3 these objects are sought to be promoted and protected by the consumer protection council to be established at the central and state level, 4 to provide speedy and simple redressal to consumer disputes, a quasi-judicial machinery is sought to be set up at the district, state and central levels these quasi-judicial bodies will observe the principles of natural justice and have been empowered to give reliefs of a specific nature and to award, wherever appropriate, compensation to consumers, penalties' for non-compliance of the orders given by the quasi-judicial bodies have also been provided 5 the bill seeks to achieve the above objects the notes on clauses explain in detail the provisions of the bill, new deum;  : h k l bhagat 1st december, 1986  notes on clausesclause 1—indicates short title , the bill, its extent and dates of commencement and application of its various provisions clause 2—it is a definition clause i clause 3—provides that provisions lf the bill shall be in addition to and not in derogation of the provisions of any other law for the time being in force u clause 4—provides for establishment of consumer protection council at the centre ' clause 5,—indicates procedure for the meetings of the central council ve clause 6—indicates objectives of the central council, clause 7—provides for establishment of state consumer protection council , clause 8—indicates objectives of the state council clause 9—provides for establishment of consumer disputes redressal forum in each district of the state clause 10—indicates the composition of district forum clause 11,—gives jurisdiction of the district forum fl clause 12—gives the manner in which the complaints of the consumers shall be made to the district forum clause 13—indicates the procedure to be followed by district forum on receipt of consumer complaints " clause 14—indicates the powers of district forum to direct the removal of defects, award of compensation etc clause 15—provides for appeal against the order of district forum, clause 16—provides for composition of state commission, clause 17—indicates the jurisdiction of state commission- , clause 18—provides for manner of receiving complaints and procedure before the state commission clause 19—provides for appeal against the order of state commission \ clause 20—provides for composition of national commission clause 21—itndicates the jurisdiction of national commission clause 22—indicates the manner of receiving see and procedure of the national commission clause 23,—provides for appeal against the orders of national com« mission ms clause 24—provides for the enforcement of the orders by district forum, state commission and national commission, clause 25—provides for the dismissal of frivolous or vexatious complaints from the consumers, clause 26—provides for the penalties, where offender does not comply with the orders of district forum, state commission and national commission clause 27—provides for protection to the members/officers of district forum, state commission or national commission for action taken in good faith, clause 28—provides for powers of central government to remove difficulties in giving effect to the provisions of the bill clause 29—provides for the powers of the central and state governments to make rules for carrying out the different provisions of the bill, clause 30—provides that every rule made by central government under the bill shall be laid before each house of the parliament and every rule made by state government shall be laid before the state legislature, financial memorandumclause 9 of the bill provides for a national commission to be set up by the central government which will consist of one full-time judge of the level of a supreme court judge and four non-official members the annual expenditure of the centre on the national commission will be about rs, 715 lakhs it also provides for setting up of a state level commission and district level consumer disputes redressel forums in states/union territories the state commission will comprise of a judge of the level of a high court judge and two other non-official members the district forum will consist of a judge of the level of a district judge and two non-official members the expenditure on state commission and district forums for union territories will be about rs 78 lakhs per annum a recurring expenditure of rs 8515 lakhs per annum, therefore, is envisaged from the consolidated fund of india for the machinery in the centre and the union territories  memorandum regarding delegated legislationsub-clause (1) of clause 30 of the bill refers to the various provisions of the bill which confers power on the central government to make rules for carrying out the purposes of the bill these provisions inter alia, relate to prescribing the interests to be represented in the central consumer protction council, the procedure in regard to the transaction of business of the central council, the matters in respect of which the district consumer disputes redressal forum may have the powers of a civil court under the civil procedure code, 1908, apart from the matters specified in sub-clauses (i) to (v) of clause 13 (4), the form and manner in which appeals may be preferred to the national commission from the orders of the state commission, the salary and other terms and conditions of service of the members of the national commission and the procedure or proceedings before the national commission 2 similarly, the state governments have also been empowered to make rules under clause 30(2) of the bill for purposs of prescribing the salary and other terms and conditions of service of the members of the district forum and the state commission, the form and manner in which appeals against the orders of the district forum may be preferred to the state commission ra 3 these are matters of procedure and administrative detail and the delegation of legislative -powers is of a normal character 