CONSUMER PROTECTION (AMENDMENT) ACT, 2002

S.1 Short title and commencement.

       (1) This Act may be called the Consumer Protection (Amendment) Act, 2002.
       (2) It shall come into force on such date1as the Central Government may, by notification in the Official Gazette, appoint.
       _________________________
       1. Date appointed is 15.03.2003 by Notification 3 No. SO270(E) dated 10.03.2003.

Legal Commentary on Section 1 of the Consumer Protection (Amendment) Act, 2002

Introduction

Section 1 of the Consumer Protection (Amendment) Act, 2002, primarily deals with the commencement and scope of the Act, establishing the legal framework for consumer protection in India. It signifies the importance of setting the effective date and clarifies the application of the provisions across different sectors and transactions.

What does Section 1 Say

Section 1 states that the Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. It also specifies that the Act applies to all consumer transactions, with certain exceptions or modifications as prescribed. The section emphasizes the importance of notifying the date of enforcement and clarifies the scope of the Act's applicability.

Essential Ingredients

Notification of Date: The Central Government is empowered to specify the date on which the Act becomes effective.
Scope of Application: The Act applies to all consumer transactions, including goods and services, unless explicitly excluded.
Extension of Jurisdiction: The section allows for the extension or restriction of the Act’s scope through notifications.
Legal Framework Establishment: It sets the foundation for the entire consumer protection regime, including the constitution of consumer forums and authorities.

Scope of Section

Temporal Scope: Defines when the Act becomes operative.
Material Scope: Clarifies that the Act covers all consumer transactions, including purchase, sale, hiring, or availing of goods and services.
Jurisdictional Scope: The section underpins the jurisdiction of consumer forums, tribunals, and authorities as per the Act.
Exceptions: Certain provisions or transactions may be excluded or subjected to specific amendments through notifications.

Punishment for Section

Section 1 itself does not prescribe any punishment; it is procedural in nature, establishing the commencement and scope. Punishments for violations related to the provisions of the Act are provided elsewhere, such as under Sections 27 and 28, which deal with offences and penalties.

Legal Comments

Notification Power - The Central Government’s authority to specify the commencement date ensures flexibility in implementing the Act in phases or as deemed appropriate - [Source: ""]
Scope Clarity - Section 1 provides clarity that the Act covers all consumer transactions unless explicitly excluded, ensuring comprehensive consumer protection coverage - [Source: ""]
Extension of Application - The provision allows the government to extend or restrict the scope via notifications, enabling adaptive legislative implementation - [Source: ""]
Legal Foundation - Section 1 establishes the legal foundation for the constitution of consumer forums and authorities, vital for enforcement - [Source: ""]
Enforcement Date - The effective date of the Act is not automatic; it depends on the notification, emphasizing the importance of official gazette notifications for legal enforceability - [Source: ""]
Scope of Application - The section confirms that the Act applies to both goods and services, extending consumer protection to a broad spectrum of transactions - [Source: ""]
Exclusions and Modifications - The power to exclude or modify certain provisions through notifications provides legislative flexibility to address sector-specific needs - [Source: ""]
No Penalties in Section 1 - As a procedural provision, Section 1 does not prescribe penalties; violations are addressed under specific offence provisions elsewhere in the Act - [Source: ""]
Legal Certainty - The clause about notification ensures legal certainty regarding when the law becomes effective, which is crucial for rights and obligations enforcement - [Source: ""]
Amendment Impact - The 2002 amendments, including the provisions in Section 1, expanded the scope and powers of consumer forums, reflecting legislative intent for broader consumer protection - [Source: ""]
Implementation Flexibility - The section’s language allows the government to adapt the enforcement timeline and scope based on administrative or sectoral considerations - [Source: ""]
Legal Hierarchy - Section 1’s reliance on notifications underscores the hierarchical nature of statutory law, where procedural provisions are subject to executive notifications - [Source: ""]
Applicability to All Sectors - The broad language ensures that the Act applies uniformly across sectors, preventing sector-specific loopholes - [Source: ""]
Legal Certainty for Consumers and Businesses - The provisions provide clarity for both consumers and businesses regarding the commencement and scope of consumer protection laws - [Source: ""]
Legislative Intent - The language reflects the legislative intent to provide a flexible, comprehensive, and enforceable consumer protection regime - [Source: ""]
Impact of Notifications - The effectiveness of Section 1 depends on timely and proper notifications, highlighting the importance of administrative procedures in law enforcement - [Source: ""]
Legal Validity - The section’s reliance on official notifications ensures the law’s validity and enforceability, preventing arbitrary enforcement - [Source: ""]
Framework for Future Amendments - Section 1’s structure allows for future amendments and updates via notifications, ensuring the law remains current - [Source: ""]
Judicial Review - The notification process is subject to judicial review to prevent misuse or arbitrary decisions, safeguarding legal rights - [Source: ""]
Conclusion - Section 1 acts as a vital procedural and foundational clause that ensures the effective and flexible implementation of the Consumer Protection Act, 2002, aligning legislative intent with administrative execution - [Source: ""]

Note: The references are based on the provided sources, primarily emphasizing the procedural and scope aspects of Section 1 of the Act.

S.2 Amendment of section 2

       In the Consumer Protection Act, 1986 (68 of 1986) (hereinafter referred to as the principal Act), in section 2, in sub-section (1),-
       (a) in clause (b), after sub-clause (iv), the following sub-clause shall be inserted, namely :-
       "(v) in case of death of a consumer, his legal heir or representative;";
       (b) in clause (c),-
       (i) in sub-clause (i), for the words "any trader", the words "any trader or service provider" shall be substituted;
       (ii) for sub-clauses (iv) and (v), the following sub-clauses shall be substituted, namely :-
       "(iv) a trader or the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a pr

S.3 Amendment of section 4

In section 4 of the principal Act, in sub-section (1), for the words "The Central Government may", the words "The Central Government shall" shall be substituted.

S.4 Amendment of section 7

       In section 7 of the principal Act, in sub-section (1),-
       (a) in the opening portion, for the words "The State Government may", the words "The State Government shall" shall be substituted;
       (b) after clause (b), the following clause shall be inserted, namely :-
       "(c) such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.".

S.5 Insertion of new sections 8A and 8B.

       After section 8 of the principal Act, the following sections shall be inserted, namely :-
       "8A. The District Consumer Protection Council.-(1) The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification.
       (2) The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the following members, namely :-
       (a) the Collector of the district (by whatever name called), who shall be its Chairman; and
       (b) such number of other official and non-official members representing such interests as may be prescribed by the State Government.
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S.6 Amendment of section 10

       In section 10 of the principal Act,-
       (a) in sub-section (1), 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,
       (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 member if he-
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S.7 Amendment of section 11.

In section 11 of the principal Act, in sub-section (1), for the words "does not exceed rupees five lakhs", the words "does not exceed rupees twenty lakhs" shall be substituted.

S.8 Substitution of new section for section 12

       For section 12 of the principal Act, the following section shall be substituted, namely :-
       '12. Manner in which complaint shall be made.-(1) 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 inte

S.9 Amendment of section 13.

       In section 13 of the principal Act,-
       (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 (1),-
       (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 granted

S.10 Amendment of section 14

       In section 14 of the principal Act,-
       (a) in sub-section (1),-
       (i) in clause (d), the following proviso shall be inserted, namely :-
       "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 :-
       "(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

S.11 Amendment of section 15

In section 15 of the principal Act, after the first proviso, the following proviso shall 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.".

S.12 Amendment of section 16

       In section 16 of the principal Act,-
       (a) in sub-section (1), 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 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 relating to economics, law, commerce, accountancy, industry, public affairs or administration :

S.13 Amendment of section 17

       Section 17 of the principal Act shall be renumbered as sub-section (1) and in sub-section (1) 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;
       (b) after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely :-
       "(2) A complaint shall be instituted in a State Commission within the limits of whose jurisdiction,-
       (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 personal

S.14 Insertion of new sections 17A and 17B

       After section 17 of the principal Act, the following sections shall be inserted, namely :-
       "17A. Transfer of cases.-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 before the District Forum to another District Forum within the State in the interest of justice so requires.
       17B. Circuit Benches.-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.".

S.15 Omission of section 18A

Section 18A of the principal Act, shall be omitted.

S.16 Amendment of section 19

In section 19 of the principal Act, after the first proviso, the following proviso shall 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 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.".

S.17 Insertion of new section 19A

       After section 19 of the principal Act, the following section shall be inserted, namely :-
       "19A. Hearing of appeal.-An appeal filed before the State Commission or the National Commission 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 regulat

S.18 Amendment of section 20

       In section 20 of the principal Act,-
       (a) in sub-section (1), 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 relating to economics, law, commerce, accountancy, industry, public affairs or administration:
      &

S.19 Amendment of section 21

In section 21 of the principal Act, in clause (a), in sub-clause (i), for the words "rupees twenty lakhs", the words "rupees one crore" shall be substituted.

S.20 Substitution of new sections for section 22

       For section 22 of the principal Act, the following sections shall be substituted, namely :-
       "22. Power and procedure applicable to the National Commission.-(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 may be considered necessary by the Commission, be applicable to the disposal of disputes by the National Commission.
       (2) Without prejudice to the provisions contained in sub-section (1), 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.
       22A. Power to set aside ex parte orders.-Where an order is passed by the National Commission ex parte against the opposite party or a complainant, as the case may be,

S.21 Amendment of section 23

In section 23 of the principal Act, after the first proviso, the following proviso shall 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 Court unless that person has deposited in the prescribed manner fifty per cent of that amount or rupees fifty thousand, whichever is less.".

S.22 Substitution of new section for section 25

       For section 25 of the principal Act, the following section shall be substituted, namely:-
       "25. Enforcement of orders of the District Forum, the State Commission or the National Commission.-(1) Where an interim order made under this Act, is not complied with the District Forum or the State Commission or the National Commission, as the case may be, may order the property of the person, not complying with such order to be attached.
       (2) No attachment made under sub-section (1) shall remain in force for more than three months at the end of which, if the non-compliance continues, the property attached may be sold 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.
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S.23 Amendment of section 27

       In section 27 of the principal Act,-
       (a) the proviso shall be omitted;
       (b) after the proviso so omitted, the existing section 27 shall be renumbered as sub-section (1) and after sub-section (1) as so renumbered, the following sub-sections shall be inserted, namely:-
       "(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the District Forum or the State Commission or the National 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 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 th

S.24 Insertion of section 27A

       After section 27 of the principal Act, the following section shall be inserted, namely :-
       "27A. Appeal against order passed under section 27.-(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an appeal under section 27, both on facts and on law, shall lie from-
       (a) the order made by the District Forum to the State Commission;
       (b) the order made by the State Commission to the National Commission; and
       (c) the order made by the National Commission to the Supreme Court.
       (2) Except as aforesaid, no appeal shall lie to any court from any order of a District Forum or a State Commission or the National Commission.
       (3) Every appeal under th

S.25 Insertion of new section 28A

       After section 28 of the principal Act, the following section shall be inserted, namely:-
       "28A. Service of notice, etc.-(1) All notices required by this Act to be served shall be served in the manner hereinafter mentioned in sub-section (2).
       (2) The service of notices may be made by delivering or transmitting a copy thereof by registered post acknowledgement 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 (including FAX message).
       (3) When an acknowledgement or any other receipt purporting to be signed by the opposite party or his agent or by the complainant is r

S.26 Amendment of section 29

       In section 29 of the principal Act, after sub-section (2), the following sub-sections shall be inserted, namely:-
       "(3) If any difficulty arises in giving effect to the provisions of the Consumer Protection (Amendment) Act, 2002, 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, 2002.
       (4) Every order made under sub-section (3) shall be laid before each House of Parliament.".

S.27 Substitution of new section for section 30

       For section 30 of the principal Act, the following section shall be substituted, namely:-
       "30. Power to make rules.-(1) The Central Government may, by notification, make rules for carrying out the provisions contained in clause (a) of sub-section (1) of section 2, clause (b) of sub-section (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 (1) and sub-section (2) of section 20, section 22 and section 23 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, clause (b) of sub-section (2) and sub-section (4) of section 8A, clause (b) of sub-section (1) and sub-s

S.28 Insertion of new section 30A

       After section 30 of the principal Act, the following section shall be inserted, namely:-
       "30A. Power of the National Commission to make regulations.-(1) The National Commission may, with the previous approval of the 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.
       (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 before the District Forum, the State Commission or the National Commission, as the case may be, which a party may be ordered to pay.".

S.29 Substitution of new section for section 31

For section 31 of the principal Act, the following section shall be substituted, namely:-
"31. Rules and regulation to be laid before each House of Parliament.-(1) Every rule and every regulation made 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 modification in the rule or regulation or both Houses agree that the rule or regulation 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