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CONSUMER PROTECTION RULES, 1987

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R.1 Short title, extent and commencement

       (1) These rules may be called the Consumer Protection Rules, 1987.
       (2) They shall come into force on the date of their publication in the official Gazette.


R.2 Definitions

       In these rules, unless the context otherwise requires,--
       (a) "Act" means the Consumer Protection Act, 1986 (68 to 1986);
       (b) "agent" means a person duly authorised by a party to present any complaint, appeal or reply on its behalf before the National Commission;
       (c) "appellant" means a party which makes an appeal against the order of the State Commission;
       (d) "chairman" means chairman of the Central Consumer Protection Council established under sub-section (1) of Section. 4 of the Act;
       (e) "memorandum" means any memorandum of appeal filed by the appellant;
       (f) "opposite party" means a person who answers complaint or claim;
      

R.2(a) State Governments to recognise a laboratory as an appropriate laboratory

       (1) For the purpose of obtaining recognition as an appropriate laboratory, the applicant shall send application, in triplicate, in the proforma prescribed by the Bureau of Indian Standards with the relevant details to the Department concerned with the consumer protection work in the State Government.
       (2) The State Government on receiving the application from the applicant, shall forward its two copies to the Bureau of Indian Standards to assess the suitability of the laboratory from the standards prescribed by them (Bureau of Indian Standards). The fee charged by the Bureau of Indian Standards, for this purpose, shall be paid by the applicant.
       (3) The State Government on receiving the recommendations and approval of the Bureau of Indian Standards shall notify that laboratory as an 'appropriate laboratory' for the purpose of Consumer Prot

R.3 The Constitution of the Central Consumer Protection Council and the Working Groups

       (1) The Central Government shall, by notification in the Official Gazette, constitute the Central Consumer Protection Council (hereinafter referred to as the Central Council) which shall consist of the following members, not exceeding 21[35], namely:
       (a) the Minister in-charge of Consumer Affairs in the Central Government who shall be the Chairman of the Central Council;
       (b) the Minister of State (where he is not holding independent charge) or Deputy Minister in-charge of Consumer Affairs in the Central Government who shall be the Vice-Chairman of the Central Council;
       22[(c) the Minister in-charge of Consumer Affairs of two of the States from each region as mentioned in Schedule I to be changed by rotation on expiration of the term of the Council on each occasion;
    &n

R.4 Procedure of the Central Council

       Under sub-section (2) of Section 5, the Central Council shall observe the following procedure in regard to the transaction of its business :
       (1) The meeting of the Central Council shall be presided over by the Chairman. In the absence of the Chairman, the Vice-Chairman shall preside over the meeting of the Central Council. In the absence of the Chairman and the Vice-Chairman, the Central Council shall elect a member to preside over that meeting of the Council.
       (2) Each meeting of the Central Council shall be called by giving not less than ten days from the date of issue, notice in writing to every member.
       (3) Every notice of a meeting of the Central Council shall specify the place and the day and hour of the meeting and shall contain statement of business to be transacted thereat.
 &n

R.5 Place of the National Commission

The office of the National Commission shall be located in the Union Territory of Delhi,


R.6 Working days and office hours of the National Commission

The working days and office hours of the National Commission shall be the same as that of the Central Government.


R.7 Seal and emblem

The official seal and emblem of the National Commission shall be such as the Central Government may specify.


R.8 Sitting of the National Commission

The sitting of the National Commission as and when necessary, shall be convened by the President.


R.9 Staff of the National Commission

The Central Government shall appoint such staff as may be necessary to assist the National Commission in its day-to-day work and to perform such other functions as are provided under the Act and these rules or assigned to it by the President. The salary payable to such staff shall be defrayed out of the Consolidated Fund of India.


R.9(a) Fee for making complaints before District Forum

       13[(1) Every complaint filed under sub-section (1) of section 12, sub-section (1) of section 17 and clause (a) in sub-clause (i) of section 21 of the Act shall be accompanied by a fee as specified in the table given below in the form of crossed Demand Draft drawn on a nationalized bank or through a crossed Indian Postal Order in favour of the President of the of the District Forum, Registrar of the State Commission or the Registrar of the National Commission as the case may be, and payable at the respective place where the District Forum, State Commission or the National Commission is situated.
       (2) The concerned authority referred to in sub-rule (1) shall credit the amount of fee received by it into the Consumer Welfare Fund of the respective State and where such Fund is not established into the Receipt Account of the State Government and in the case of the National Commission, to

R.10 Additional Powers of the National Commission, State Commission and District Forum

       10. Additional Powers of the National Commission, State Commission and District Forum.--
       (1) The National Commission, the State Commission and the District Forum shall have power to require any person,--
       (a) to produce before, and allow to be examined and kept by an officer of the National Commission, the State Commission or District Forum, as the case may be, specified in this behalf, such books, accounts, documents or commodities in the custody or under the control of the person so required as may be specified or described in the requisition, if the examination of such books, accounts, documents or commodities are required for the purpose of this Act;
       (b) to furnish to an officer so specified, such information as may be required for the purpose of this Act.
     &

R.10(a) Credit of the fine into the Consumer Welfare Fund when consumers are not identified conveniently

       1[10A. Credit of the fine into the Consumer Welfare Fund when consumers are not identified conveniently.
       (1) Where an order is passed by the National Commission in exercise of the powers vested under clause (hb) of sub-section (1) of section 14 directing the opposite party to pay such amount as determined by it on account of loss or injury suffered due to defects in goods complained against or alleged deficiency of service to a large number of consumers, who are not identifiable conveniently, such sum shall be credited by the National Commission in the Consumer Welfare Fund established by the Central Government under section 12 (C) of the Central Excise Act, 1944 (1 of 1944).
       (2) Any amount credited to the said Fund shall be utilized in accordance with the provisions of the Consumer Welfare Fund Rules, 1992.
1. Inserted by Notificatio

R.10(b) Number of Members in the National Commission

       10B. Number of Members in the National Commission: -
       The National Commission shall consist of not less than four members and not more than 14[nine] members and at least one of them shall be a woman.]
       14. Substituted by Notification no. GSR64(E) dated 10.02.2005 for the word six.


R.11 Salaries, honorarium and other allowances of the President and Members of the National Commission

       34[(1) The President of the National Commission shall be entitled to salary, allowances and other perquisites as are available to a sitting Judge of the Supreme Court.
       (1A) The other members of the National Commission appointed on whole-time basis shall be entitled to the following honorarium and other allowances with effect from the 1st day of April, 2006, namely: --
       (a) the members shall be paid twenty-three thousand rupees per month by way of honorarium:
       Provided that the members, who are retired Judges of High Courts or retired Secretaries to the Government of India shall have the option to either receive consolidated honorarium of twenty-three thousand rupees per month or receive remuneration of last pay drawn less pension;
       (b) a woman who has

R.12 Terms and conditions of service of the President and Members of the National Commission

       (1) Before appointment, the President and a member of the National Commission shall have to take an undertaking that he does not and will not have any such financial or other interests as is likely to affect prejudicially his functions as such members.
       3[(2)]
       (3) Notwithstanding anything contained in sub-rule (2) President or a member may,--
       4[(a) by writing under his hand and addressed to the Central Government resign his office at any time but his office shall become vacant only when such resignation is accepted by the Central Government. ]
       (b) be removed from his office in accordance with the provisions of rule 13.
       (4) The terms and conditions of service of the President and the members shall not be v

R.12(a) Procedure for selection of Members

       (1) Save as otherwise provided in sub-rule (2), the process of appointment of a Member shall be initialed at least three months before the vacancy arises.
       (2) If a post falls vacant due to resignation or death of a Member or creation of a new post, the process for filling the post shall be initiated immediately after the post has fallen vacant or is created, as the case may be.
       (3) An advertisement of a vacancy inviting applications from eligible candidates may be published in leading newspapers in India or by vacancy circulars or both, as may be decided by the Central Government.
       (4) After scrutiny of the applications received till the last date specified for receipt of applications, a list of eligible candidates alongwith their applications shall be placed before the Selection Committee cons

R.13 Removal of President or members from office in certain circumstances

       (1) The Central Government may remove from office, the President or any member who,--
       (a) has been adjudged an insolvent: or
       (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
       (c) has become physically or mentally in capable of acting as the President or the member; or
       (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the President or a member; or
       (e) has so abused his position as to render his continuance in office prejudicial to the public interest, [or]
       (f) remain absent in three consecutive sittings except for reasons beyond his control.;

R.14 Procedure to be followed by the National Commission

       (1) A complaint containing the following particulars shall be presented by the complainant in person or by his agent to the National Commission or be sent by registered post, addressed to the National Commission :--
       (a) the name, description and the address of the complainant;
       (b) the name, description and address of the oppoisite party or parties, as the case may be, so far as they can be ascertained;
       (c) the facts relating to complaint and when and where it arose;
       (d) documents in support of the allegations contained in the complaint;
       (e) the relief which complainant claims.
       1[(1A) Every complaint under sub-rule (1) shall be accompanied by the relevant fee as

R.14(a) Appeals before National Commission

       Every appeal filed in terms of section 19 shall be accompanied by such amount as specified in the second proviso to the said section and such amount may be remitted in the form of a crossed Demand Draft drawn on a nationalized bank in favour of the Registrar, National Commission, payable at Delhi. The National Commission dealing with the appeals filed before them shall follow the provisions of section 19 and 19A as may be required to hear the appeals filed before the Commission.
       Explanation.- In this rule, "nationalized bank" means a corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).]
       1. Inserted

R.15 Procedure for hearing the appeal

       (1) Memorandum shall be presented by the appellant or his agent to the National Commission in person or be sent by registered post addressed to the Commission.
       (2) Every memorandum filed under sub-rule (1) shall be in legible handwriting preferably typed and shall set forth concisely under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively.
       (3) Each memorandum shall be 8[accompanied by a crossed demand draft as referred to in rule 14A and by a certified copy] of the order of the State Commission appealed against and such of the documents as may be required to support grounds of objection mentioned in the memorandum.
       (4) When the appeal is presented after the expiry of the period of limitation as specified in the Act, the mem

R.15(a) Sitting of the National Commission and signing of orders

       (1) Every proceeding of the National Commission shall be conducted by the President or the seniormost member 17[***]and at least two members thereof sitting together 1[except when a bench is constituted by the President of the National Commission with one or more members as he may deem fit].
       18[Provided that one member or member? for any reason are unable to conduct proceedings till it is completed, the President or the senior most member, as provided in section 22D of the Act, shall conduct such proceedings from the stage at which it was last heard by the previous member.]
       (2) Every order made by the National Commission shall be signed by the President or the seniormost member 19[as provided under section 22D] and at least two members, who conducted the proceeding and if there is any difference of opinion among themselves, the opinion o

R.16 Manner of deposit of amount in appeals before Supreme Court

       Every appeal filed before the Supreme Court in terms of section 23 shall be accompanied by an amount as provided in the second proviso to that section and such amount may be remitted in the form of a crossed Demand Draft drawn on a nationalized bank in favour of Registrar, Supreme Court, payable at Delhi.
       Explanation.- In this rule, "nationalized bank" means a corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank specified in the, First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).]
       1. Inserted by Notification No. GSR175(E) dt 05.03.2004


Sch.1 SCHEDULE I

       33[SCHEDULE I
       [See rule 3(1) (c)]
       1. Eastern Region--to consist of the States of Bihar, Chattisgarh, Jharkhand, Orissa, and West Bengal.
       2. Western Region--to consist of the States of Goa, Gujarat, Maharashtra, Madhya Pradesh and Rajasthan.
       3. Northern Region--to consist of the States of Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Uttar Pradesh and Uttaranchal.
       4. Southern Region--to consist of the States of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.
       5. North Eastern Region--to consist of the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
       33. Inserted by


Legal Commentary on Consumer Protection Rules, 1987 - Schedule 1

Introduction

Schedule 1 of the Consumer Protection Rules, 1987, primarily deals with the amendments to the Limitation Act 1980, establishing the limitation periods for filing claims under the Consumer Protection Act, 1986. It provides clarity on the time frame within which consumers can initiate legal proceedings for damages caused by defective products or unfair trade practices.

What does Section Say

Schedule 1 specifies that claims under the Consumer Protection Act 1986 are barred after three years from the date when the damage occurred or when the consumer became aware of the damage. It also amends relevant provisions of the Limitation Act 1980 to align with these timelines, ensuring that consumer claims are subject to specific limitation periods.

Essential Ingredients

  • Limitation Period: Three years from the date damage occurs or is discovered.
  • Application Scope: Applies to all actions for damages under the Consumer Protection Act 1986.
  • Amendments: Modifies the Limitation Act 1980 to incorporate these timelines.
  • Knowledge of Damage: The period begins either from the date of damage or when the consumer becomes aware of it, whichever is earlier.
  • Legal Proceedings: Restricts filing of claims beyond the stipulated period, promoting timely resolution.

Scope of Section

  • Coverage: Encompasses all claims for damages under the Consumer Protection Act 1986.
  • Particulars: Applies to actions brought before consumer forums and courts.
  • Limitation: Establishes a clear statutory deadline, preventing stale claims.
  • Exclusions: Does not specify exceptions; generally applicable unless otherwise provided by law.
  • Jurisdiction: Relevant to consumer forums and courts handling consumer disputes.

Punishment for Violations

While Schedule 1 itself primarily deals with limitation periods, violations (such as filing claims after the period) lead to dismissal of the case. The broader Act prescribes penalties for non-compliance, including fines and imprisonment for misconduct, but specific punishment related to Schedule 1 is primarily the dismissal of late claims .

Legal Comments

  • "Limitation" - Sets a three-year cap for filing damages claims under the Consumer Protection Act 1986, ensuring timely enforcement of consumer rights .
  • "Time Frame" - The period starts either from the date of damage or when the consumer becomes aware of it, whichever is earlier, balancing fairness and practicality .
  • "Amendment" - Schedule 1 amends the Limitation Act 1980 to incorporate specific limitation periods for consumer claims, aligning procedural timelines with consumer protection objectives .
  • "Application Scope" - Applies exclusively to actions for damages under the Consumer Protection Act, clarifying the legal timeframe for such claims .
  • "Claim Dismissal" - Claims filed after the expiry of three years are barred, leading to automatic dismissal, thereby encouraging prompt legal action .
  • "Knowledge of Damage" - The start of limitation depends on when the consumer knew or ought to have known about the damage, emphasizing the importance of awareness .
  • "Legal Certainty" - The limitation period promotes legal certainty and finality in consumer disputes by preventing indefinite claims .
  • "Procedural Clarity" - The schedule provides clear procedural guidance for courts and consumers regarding the time limits for filing claims .
  • "Enforcement" - The limitation period is enforceable through the dismissal of late claims, reinforcing discipline in consumer litigation .
  • "Scope of Amendments" - The amendments ensure that the Consumer Protection Act aligns with the Limitation Act, facilitating streamlined dispute resolution .
  • "Protection of Defendants" - By limiting claims to three years, the schedule protects defendants from indefinite liability and stale claims .
  • "Legal Certainty for Consumers" - Consumers are encouraged to initiate claims promptly, fostering responsible consumer behavior .
  • "Impact on Litigation" - The strict limitation period may influence consumer litigation strategies, emphasizing early action .
  • "Broader Legal Framework" - Schedule 1 integrates consumer protection with general limitation law, creating a cohesive legal framework .
  • "Legal Consistency" - Ensures consistency across consumer claims and other civil actions regarding limitation periods .
  • "Preventing Abuse" - The limitation period acts as a safeguard against abuse of the legal process by delaying claims indefinitely .
  • "Policy Objective" - Underlines the policy of timely redress for consumers while balancing the interests of defendants .
  • "Legal Development" - Reflects the evolution of consumer law towards structured and time-bound dispute resolution mechanisms .

Note: The references are based on the provided sources, primarily focusing on Schedule 1 and general provisions related to limitation periods under the Consumer Protection Act, 1986/1987.

Sch.2 SCHEDULE II

       SCHEDULE II
       [See rule 3(1)(ca)]
       The Union Territories of the Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep, Pondicherry and the National Capital Territory of Delhi.]



Legal Commentary on Consumer Protection Rules, 1987 - Schedule II

Introduction

Schedule II of the Consumer Protection Rules, 1987, pertains to specific provisions related to prohibition notices and notices to warn, serving as an essential component of enforcement mechanisms under the Consumer Protection Act, 1986. It delineates the procedures, scope, and regulatory framework for issuing and managing such notices to ensure consumer safety and compliance.

What does Section Say

Schedule II primarily provides detailed guidelines on the issuance, content, and effect of prohibition notices and notices to warn issued by authorities. It specifies the circumstances under which these notices are to be issued, their legal effect, and the procedures for their enforcement, including the roles of various authorities and the implications for businesses and consumers.

Essential Ingredients

  • Issuance of Notices: The schedule mandates the process for issuing prohibition notices and notices to warn.
  • Content of Notices: It prescribes the necessary information and warnings to be included in such notices.
  • Legal Effect: The notices serve as formal warnings or prohibitions against certain practices or products.
  • Authority: Specifies the competent authority responsible for issuing and enforcing these notices.
  • Compliance: Details obligations on businesses to comply with notices and the consequences of non-compliance.
  • Amendments and Regulations: Allows the Secretary of State or relevant authority to make regulations for effective implementation.

Scope of Section

  • Product Safety and Compliance: The schedule covers notices related to unsafe or non-compliant products and practices.
  • Consumer Protection Enforcement: Acts as a tool to prevent misleading, hazardous, or unfair trade practices.
  • Territorial Application: Applies within the jurisdiction of the Union Territories and specified regions as per the rules.
  • Regulatory Framework: Provides a structured approach for authorities to manage consumer safety issues through notices.
  • Relation to Other Provisions: Works in conjunction with other sections of the Act concerning penalties, liability, and consumer rights.

Punishment for Section

While Schedule II itself primarily deals with procedural aspects, violations related to the issuance or non-compliance with notices can lead to penalties, including fines or imprisonment, as prescribed under the broader provisions of the Consumer Protection Act, 1986, and related laws [, Consumer Protection Act 1987].

Legal Comments

  • "Prohibition Notices" - Schedule II specifies the framework for issuing prohibition notices aimed at preventing unsafe or non-compliant products or practices [, Consumer Protection Rules, 1987].
  • "Notices to Warn" - The schedule emphasizes the importance of notices to warn consumers and traders about potential hazards or misleading information [, Consumer Protection Rules, 1987].
  • "Authority" - The designated authority responsible for issuing and enforcing these notices is outlined, ensuring regulatory oversight [, Consumer Protection Rules, 1987].
  • "Content Requirements" - Notices must contain specific information, warnings, and details about the nature of the violation or hazard [, Consumer Protection Rules, 1987].
  • "Legal Effect" - These notices have binding legal implications, serving as enforceable warnings or prohibitions [, Consumer Protection Rules, 1987].
  • "Compliance Obligation" - Businesses are mandated to comply with notices; failure to do so can lead to penalties under the Act [, Consumer Protection Act 1987].
  • "Amendment Power" - The schedule grants the Secretary of State or relevant authority the power to make regulations for better enforcement [, Consumer Protection Rules, 1987].
  • "Territorial Scope" - The provisions apply within specific Union Territories, ensuring localized enforcement [, Consumer Protection Rules, 1987].
  • "Procedural Safeguards" - The rules establish procedures for issuing, serving, and contesting notices, safeguarding procedural fairness [, Consumer Protection Rules, 1987].
  • "Preventive Role" - The primary aim is preventive, to curb unsafe products and deceptive practices before harm occurs [, Consumer Protection Rules, 1987].
  • "Relation to Consumer Rights" - These notices enhance consumer rights by ensuring safety and truthful information in the marketplace [, Consumer Protection Act 1987].
  • "Enforcement Mechanism" - Schedule II provides a clear enforcement mechanism to support the broader objectives of the Consumer Protection Act [, Consumer Protection Rules, 1987].
  • "Legal Sanctions" - Non-compliance with notices can attract sanctions, including fines or imprisonment, depending on the severity of the violation [, Consumer Protection Act 1987].
  • "Regulatory Flexibility" - The schedule allows for regulations to adapt to evolving consumer safety needs [, Consumer Protection Rules, 1987].
  • "Consumer Safety Focus" - Overall, the schedule underscores the importance of proactive measures to protect consumers from hazardous goods and practices [, Consumer Protection Rules, 1987].
  • "Integration with Other Laws" - The provisions are integrated with other consumer protection laws, trade descriptions, and product safety standards [, Consumer Protection (Trade Descriptions) Act 1970].

This legal commentary synthesizes available sources to provide a comprehensive overview of Schedule II of the Consumer Protection Rules, 1987, highlighting its procedural, enforcement, and protective aspects within the framework of consumer law.

ANNEXURE.1 CERTIFICATE OF PHYSICAL FITNESS

       1[ANNEXURE
       CERTIFICATE OF PHYSICAL FITNESS
       [See rule 12A(9)]
       I hereby certify that I have examined Shri/Smt./ Kum.................................................and that I have not discovered that he/she has any disease (communicable or otherwise), constitutional weakness or bodily infirmity, except....................................................................I do not consider this a disqualification* for his/her employment as member in the National Consumer Disputes Redressal Commission for a period of five years or up to the age of 70 years, whichever is earlier.
       
       Date: Signature
       Signature of Candidate Designation
     &n

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