Consumer Protection Act, 2019

S.16 Power of District Collector.

The District Collector (by whatever name called) may, on a complaint or on a reference made to him by the Central Authority or the Commissioner of a regional office, inquire into or investigate complaints regarding violation of rights of consumers as a class, on matters relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, within his jurisdiction and submit his report to the Central Authority or to the Commissioner of a regional office, as the case may be.

Legal Comments

"Introduction" - The material comprises case-law excerpts and summaries related to the Consumer Protection Act, 2019 (and its predecessors) primarily focusing on Section 16 (District Consumer Disputes Redressal Commission) and various sections mirrored as Section 58(1)(b) for revisions, along with multiple other provisions invoked in consumer disputes, especially in real estate, insurance, banking, and services. [Source references show diverse CPC/CP Act citations and judgments across numerous petitions]
"Section 16" - Section 16 governs the power, jurisdiction, and procedure of the District Consumer Disputes Redressal Forum (now under the Act as applicable). It delineates when a district forum may entertain complaints and the nature of its powers, including procedural aspects relevant to revision petitions under the Act. Several judgments discuss interplay of Section 16 with limitation, condonation, and representation in appeals. [See HDFC Bank Ltd. VS Deepak Goyal, Taken up through video conferencing. Sumil Mudgal VS Ansal Housing & Construction Ltd. , Taken up through video conferencing M/s. Ansal Properties & Infrastructure Ltd. VS Sushma Jain, Videocon Industries Limited VS Preet Kamal Singh]
"What Section Says" - Section 16 provides the locus for entertaining consumer disputes at the district level and serves as a trigger point for rights of appeal/revision to higher fora under the Act. It also interfaces with timelines and condonation of delay, particularly in the context of Covid-19 and other disruptions, as seen in many cited orders. [HDFC Bank Ltd. VS Deepak Goyal, Parklands Pride Buyers Association VS BPTP Ltd. , Videocon Industries Limited VS Preet Kamal Singh, BhodevSingh VS General Insurance Co. Ltd. ]
"Essential ingredients" - Core elements identified across sources include: (a) establishment of a consumer-defect claim (deficiency in service or unfair trade practice), (b) timely filing within limitation, allowing for condonation where credible cause is shown, (c) determination of “consumer” status under Section 2(1)(d) or its 2019 equivalents, (d) jurisdictional reach for banking/insurance/real estate services, (e) compensation/interest and costs, and (f) remedy formats (refund, possession, or delivery). [Shekhar Sethu VS EMAAR MGF Land Limited, Goel Spinning & Weaving Mills VS United India Insurance Co. Ltd. , Ashwani Kumar Gupta VS Branch Manager, HDFC Standard Life Insurance Co. Ltd. , BhodevSingh VS General Insurance Co. Ltd. ]
"Scope of Section" - The scope extends to: (i) monetary disputes with banks and insurers, (ii) delays in delivery/possession in real estate, (iii) issues of misrepresentation or unfair trade practices, and (iv) aggregate relief including interest and costs. It also encompasses the power of revision by the National Commission where concurrent findings exist, albeit with limited scope. [Ajay Kumar Jayaswal VS Future Generali India Life Insurance Company Ltd. , Accurate Corrugation Industries VS New India Insurance Co. Ltd. , Sunil Monga VS Parsvnath Developers Ltd. , Mayank Multiplex Pvt. Ltd. VS Amit Kumar Ghosh]
"Punishment for Section" - The materials primarily concern civil remedies and not criminal penalties under Section 27/72 for non-compliance. The cited judgments emphasize compensation, interest, costs, and sometimes remand or remittance of funds, rather than imprisonment. The statute also contemplates penalties for non-compliance with orders, though specifics are not the focal point of these extracts. [Manohar Infrastructure & Construction Pvt. Limited VS Jorawer Singh Mann, 01200000200 (illustrative statutory note), N. Muthappa Rai VS Aslam Carpets Pvt. Ltd. ]
"Consumer status and exceptions" - Several decisions address whether complainants qualify as “consumers” where the transaction is for commercial purpose, especially in real estate or banking where the buyer may be a business entity. The dominant purpose test governs; sales to companies or for commercial use may exclude consumer status, whereas purchases by individuals for livelihood may still qualify. [Anubhab Construction VS City Star Ganguly Projects LLP, United India Insurance Co. Ltd. VS Hyundai Engineering & Construction Co. Ltd. , Goel Spinning & Weaving Mills VS United India Insurance Co. Ltd. ]
"Limitation and condonation" - A recurring theme is the two-year limitation for filing complaints, with judicial discretion to condone delays upon “sufficient cause.” Covid-era delays and post-pandemic adjustments are discussed, alongside the need for reasons for condonation. [Ashwani Kumar Gupta VS Branch Manager, HDFC Standard Life Insurance Co. Ltd. , Utpal Trehan VS DLF, New Gurgaon Home Developers Pvt. Ltd. , Mahboob Alam Qureshi VS TDI Infrastructure Pvt. Ltd. ]
"Pecuniary jurisdiction and appeals" - State/NCDRC pecuniary limits (generally up to Rs. 1 crore for district/state forums) influence which forum may hear a matter, and the power to entertain appeals/ revision under Section 21(1)(b) or 58(1)(b). Some cases illustrate remand to remedy issues of appraisal of area/damages or differential sale area. [Bimla Vati VS Improvement Trust, Ajay Kumar Jayaswal VS Future Generali India Life Insurance Company Ltd. , Ashwani Kumar Gupta VS Branch Manager, HDFC Standard Life Insurance Co. Ltd. ]
"Real estate delays and compensation" - A large subset deals with delayed possession and compensatory relief (interest on deposit, refund of deposits with interest, or alternative remedies like transfer of possession, rescission, or refund with interest). Courts emphasize adherence to contract terms and prevention of “paper possession” as unlawful. [Sunil Monga VS Parsvnath Developers Ltd. , Basanta Kumar Nandy VS Dreamz Infra India Ltd. (Formerly Known As Dreamz Infra India Pvt. Ltd. ), Sadhna Shanker, MemberM/s. Universal Infrastructure VS Ravinder Kaur Bedi, Pramitha Marina Menezes VS T3 Urban Developer Ltd. ]
"Insurance claims and repudiation" - Many orders discuss whether insurance claims are maintainable where there is misrepresentation, non-disclosure, or repudiation. The courts stress that coverage is for indemnity and that disputes over repudiation or claim settlement fall within consumer fora when evidence supports deficiency in service, with strict interpretation of exclusion clauses in insurance contracts. [Goel Spinning & Weaving Mills VS United India Insurance Co. Ltd. , United India Insurance Co. Ltd. VS Hyundai Engineering & Construction Co. Ltd. , Shiva Shivani Aqua Farm VS Kolleru Aqua Diagnostic & Research Lab Private Limited, Bhagchand Oswal VS Oriental Insurance Co. Ltd. ]
"Banking and financial services" - Several decisions discuss current accounts, duplicate cheques, or mismanagement by banks; even where there are commercial aspects, a current account holder can be a consumer, and the forum may award damages, costs, or interest, with limitations on compensation. [S. B. A. Services VS ICICI Bank Ltd. , Syed Peer VS Manager, (Health Insurance) LIC of India, Accurate Corrugation Industries VS New India Insurance Co. Ltd. ]
"Arbitration and forum authority" - In insurance and real estate, arbitrations clauses do not bar consumer fora unless the contract specifically excludes such path; consumer fora retain jurisdiction to adjudicate, especially where liability is admitted or repudiation occurs. [Accurate Corrugation Industries VS New India Insurance Co. Ltd. , Jodhpur Industries VS New India Assurance Co. Ltd. ]
"Constitutional/Procedural principles" - Several judgments emphasize that consumer courts should avoid rewriting contracts, respect the terms agreed, and apply Order I Rule 8 CPC where applicable for representative actions, particularly under Section 35(1)(c) regarding many consumers with the same interest. [Ashwani Kumar Gupta VS Branch Manager, HDFC Standard Life Insurance Co. Ltd. , TDI Infrastructure Ltd. VS Union of India]
"Remand and remediable directions" - Where the National Commission finds it necessary, it remands for further evidence or remits the matter to a more appropriate stage, ensuring due process while preserving the rights of both complainants and respondents. [Mamta Aggarwal VS HUDA, BhodevSingh VS General Insurance Co. Ltd. ]
"Summary takeaways" - The body of cases demonstrates that Section 16 (and linked provisions) functions as a hub for determining forum, limitation, consumer status, and remedy, with a consistent emphasis on timely, quality service, fair compensation for delays/deficiencies, and adherence to contract terms, while respecting procedural safeguards such as condonation of delay and appeals. [World Security Printing Press & Taj Exports VS Central Bank of India, Taken up through video conferencing. Sumil Mudgal VS Ansal Housing & Construction Ltd. , Sunil Monga VS Parsvnath Developers Ltd. , Videocon Industries Limited VS Preet Kamal Singh]
"Key practical implications" - For practitioners: (a) verify consumer status before filing; (b) map whether the transaction is for personal livelihood or commercial purpose; (c) scrutinize limitation periods and possible condonation; (d) assess the appropriate forum based on pecuniary jurisdiction; (e) consider remedies including refund with interest, possession, and compensation, and (f) preserve records for arbitration and contractual terms to avoid arguments on maintainability. [P. S. Roadlines VS Kandhari Beverages Pvt. Ltd. , BhodevSingh VS General Insurance Co. Ltd. , Ajay Kumar Jayaswal VS Future Generali India Life Insurance Company Ltd. , Anubhab Construction VS City Star Ganguly Projects LLP]

S.1 Short title, extent, commencement and application.

(1) This Act may be called the Consumer Protection Act, 2019.

(2) It extends to the whole of India except the State of Jammu and Kashmir.^*

(3) It shall come into force on such date¹ as the Central Government may, by notification, appoint and different dates may be appointed for different States and for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

(4) Save as otherwise expressly provided by the Central Government, by notification, this Act shall apply to all goods and services.

S.3 Central Consumer Protection Council.

(1) The Central Government shall, by notification, establish with effect from such date as it may specify in that notification, the Central Consumer Protection Council to be known as the Central Council.

(2) The Central Council shall be an advisory council and consist of the following members, namely:--

(a) the Minister-in-charge of the Department of Consumer Affairs in the Central Government, who shall be the Chairperson; and

(b) such number of other official or non-official members representing such interests as may be prescribed.

S.4 Procedure for meetings of Central Council.

(1) The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year.

(2) The Central Council shall meet at such time and place as the Chairperson may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed.

S.5 Objects of Central Council.

The objects of the Central Council shall be to render advice on promotion and protection of the consumers' rights under this Act.

S.6 State Consumer Protection Councils.

(1) Every State Government shall, by notification, establish with effect from such date as it may specify in such notification, a State Consumer Protection Council for such State to be known as the State Council.

(2) The State Council shall be an advisory council and consist of the following members, namely:--

(a) the Minister-in-charge of Consumer Affairs in the State Government who shall be the Chairperson;

(b) such number of other official or non-official members representing such interests as may be prescribed;

S.7 Objects of State Council.

The objects of every State Council shall be to render advice on promotion and protection of consumer rights under this Act within the State.

S.8 District Consumer Protection Council.

(1) The State Government shall, by notification, establish for every District with effect from such date as it may specify in such notification, a District Consumer Protection Council to be known as the District Council.

(2) The District Council shall be an advisory council and consist of the following members, namely:--

(a) the Collector of the district (by whatever name called), who shall be the Chairperson; and

(b) such number of other official and non-official members representing such interests as may be prescribed.

(3) The District Council shall meet as and when necessary but not less than two meetings shall be held every year.

S.9 Objects of District Council.

The objects of every District Council shall be to render advice on promotion and protection of consumer rights under this Act within the district.

S.10 Establishment of Central Consumer Protection Authority.

(1) The Central Government shall, by notification, establish with effect from such date as it may specify in that notification, a Central Consumer Protection Authority to be known as the Central Authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class.

(2) The Central Authority shall consist of a Chief Commissioner and such number of other Commissioners as may be prescribed, to be appointed by the Central Government to exercise the powers and discharge the functions under this Act.

(3) The headquarters of the Central Authority shall be at such place in the National Capital Region of Delhi, and it shall have regional an

S.11 Qualifications, method of recruitment, etc., of Chief Commissioner and Commissioners.

The Central Government may, by notification, make rules to provide for the qualifications for appointment, method of recruitment, procedure for appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of the service of the Chief Commissioner and Commissioners of the Central Authority.

S.12 Vacancy, etc., not to invalidate proceedings of Central Authority.

No act or proceeding of the Central Authority shall be invalid merely by reason of--

(a) any vacancy in, or any defect in the constitution of, the Central Authority; or

(b) any defect in the appointment of a person acting as the Chief Commissioner or as a Commissioner; or

S.13 Appointment of officers, experts, professionals and other employees of Central Authority.

(1) The Central Government shall provide the Central Authority such number of officers and other employees as it considers necessary for the efficient performance of its functions under this Act.

(2) The salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the Central Authority appointed under this Act shall be such as may be prescribed.

(3) The Central Authority may engage, in accordance with the procedure specified by regulations, such number of experts and professionals of integrity and ability, who have special knowledge and experience in the areas of consumer rights and welfare, consumer policy, law, medicine, food safety, health, engineering, product safety, commerce, economics, public affairs or administration, as it deems necessary to assist it in the di

S.14 Procedure of Central Authority.

(1) The Central Authority shall regulate the procedure for transaction of its business and allocation of its business amongst the Chief Commissioner and Commissioners as may be specified by regulations.

(2) The Chief Commissioner shall have the powers of general superintendence, direction and control in respect of all administrative matters of the Central Authority:

Provided that the Chief Commissioner may delegate such of his powers relating to administrative matters of the Central Authority, as he may think fit, to any Commissioner (including Commissioner of a regional office) or any other officer of the Central Authority.

S.15 Investigation Wing.

(1) The Central Authority shall have an Investigation Wing headed by a Director-General for the purpose of conducting inquiry or investigation under this Act as may be directed by the Central Authority.

(2) The Central Government may appoint a Director-General and such number of Additional Director-General, Director, Joint Director, Deputy Director and Assistant Director, from amongst persons who have experience in investigation and possess such qualifications, in such manner, as may be prescribed.

(3) Every Additional Director-General, Director, Joint Director, Deputy Director and Assistant Director shall exercise his powers, and discharge his functions, subject to the general control, supervision and direction of the Director-General.

(4) The Director-General may deleg

S.17 Complaints to authorities.

A complaint relating to violation of consumer rights or unfair trade practices or false or misleading advertisements which are prejudicial to the interests of consumers as a class, may be forwarded either in writing or in electronic mode, to any one of the authorities, namely, the District Collector or the Commissioner of regional office or the Central Authority.

S.18 Powers and functions of Central Authority.

(1) The Central Authority shall--

(a) protect, promote and enforce the rights of consumers as a class, and prevent violation of consumers rights under this Act;

(b) prevent unfair trade practices and ensure that no person engages himself in unfair trade practices;

(c) ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of this Act or the rules or regulations made thereunder;

(d) ensure that no person takes part in the publication of any advertisement which is false or misleading.

(1) The Central Authority may, after receiving any information or complaint or directions from the Central Government or of its own motion, conduct or cause to be conducted a preliminary inquiry as to whether there exists a prima facie case of violation of consumer rights or any unfair trade practice or any false or misleading advertisement, by any person, which is prejudicial to the public interest or to the interests of consumers and if it is satisfied that there exists a prima facie case, it shall cause investigation to be made by the Director-General or by the District Collector.

(2) Where, after preliminary inquiry, the Central Authority is of the opinion that the matter is to be dealt with by a Regulator established under any other law for the time being in force, it may refer such matter to the concerned Regulator along with its report.

S.20 Power of Central Authority to recall goods, etc.

Where the Central Authority is satisfied on the basis of investigation that there is sufficient evidence to show violation of consumer rights or unfair trade practice by a person, it may pass such order as may be necessary, including--

(a) recalling of goods or withdrawal of services which are dangerous, hazardous or unsafe;

(b) reimbursement of the prices of goods or services so recalled to purchasers of such goods or services; and

Provided that the Central Authority shall give the person an

S.21 Power of Central Authority to issue directions and penalties against false or misleading advertisements.

(1) Where the Central Authority is satisfied after investigation that any advertisement is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertiser or publisher, as the case may be, to discontinue such advertisement or to modify the same in such manner and within such time as may be specified in that order.

(2) Notwithstanding the order passed under sub-section (1), if the Central Authority is of the opinion that it is necessary to impose a penalty in respect of such false or misleading advertisement, by a manufacturer or an endorser, it may, by order, impose on manufacturer or endorser a penalty which may extend to ten lakh rupees:

Provided that the C

S.22 Search and seizure.

(1) For the purpose of conducting an investigation after preliminary inquiry under sub-section (1) of section 19, the Director-General or any other officer authorised by him in this behalf, or the District Collector, as the case may be, may, if he has any reason to believe that any person has violated any consumer rights or committed unfair trade practice or causes any false or misleading advertisement to be made, shall,--

(a) enter at any reasonable time into any such premises and search for any document or record or article or any other form of evidence and seize such document, record, article or such evidence;

(b) make a note or an inventory of such record or article; or

The Central Government may, if it considers necessary, by notification, designate any statutory authority or body to exercise the powers and perform the functions of the Central Authority referred to in section 10.

S.24 Appeal.

A person aggrieved by any order passed by the Central Authority under sections 20 and 21 may file an appeal to the National Commission within a period of thirty days from the date of receipt of such order.

S.25 Grants by Central Government.

The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Central Authority grants of such sums of money as that Government may think fit for being utilised for the purposes of this Act.

S.26 Accounts and audit.

(1) The Central Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form and manner as may be prescribed in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Central Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Central Authority to the Comptroller and Auditor-General of India.

(3) The Comptroller and Auditor-General of India or any other person appointed by him in connection with the audit of the accounts of the Central Authority shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally ha

S.27 Furnishing of annual reports, etc.

(1) The Central Authority shall prepare once in every year, in such form, manner and at such time as may be prescribed, an annual report giving full account of its activities during the previous year and such other reports and returns, as may be directed, and copies of such report and returns shall be forwarded to the Central Government.

(2) A copy of the annual report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament.

S.28 Establishment of District Consumer Disputes Redressal Commission.

S.29 Qualifications, etc., of President and members of District Commission.

The Central Government may, by notification, make rules to provide for the qualifications, method of recruitment, procedure for appointment, term of office, resignation and removal of the President and members of the District Commission.

S.30 Salaries, allowances and other terms and conditions of service of President and members of District Commission.

The State Government may, by notification, make rules to provide for salaries and allowances and other terms and conditions of service of the President, and members of the District Commission.

S.31 Transitional provision.

Any person appointed as President or, as the case may be, a member of the District Commission immediately before the commencement of this Act shall hold office as such as President or, as the case may be, as member till the completion of his term for which he has been appointed.

S.32 Vacancy in office of member of District Commission.

If, at any time, there is a vacancy in the office of the President or member of a District Commission, the State Government may, by notification, direct--

(a) any other District Commission specified in that notification to exercise the jurisdiction in respect of that district also; or

(b) the President or a member of any other District Commission specified in that notification to exercise the powers and discharge the functions of the President or member of that District Commission also.

S.33 Officers and other employees of District Commission.

(1) The State Government shall provide the District Commission with such officers and other employees as may be required to assist the District Commission in the discharge of its functions.

(2) The officers and other employees of the District Commission shall discharge their functions under the general superintendence of the President of the District Commission.

(3) The salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the District Commission shall be such as may be prescribed.

S.34 Jurisdiction of District Commission.

(1) Subject to the other provisions of this Act, the District Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed one crore rupees:

Provided that where the Central Government deems it necessary so to do, it may prescribe such other value, as it deems fit.

(2) A complaint shall be instituted in a District Commission within the local 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, ordinarily resides or carries on business or has a branch office or personally works for gain; or

S.35 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 Commission by--

(a) the consumer,--

(i) to whom such goods are sold or delivered or agreed to be sold or delivered or such service is provided or agreed to be provided; or

(ii) who alleges unfair trade practice in respect of such goods or service;

(b) any recognised consumer association, whether the consumer to w

S.36 Proceedings before District Commission.

(1) Every proceeding before the District Commission shall be conducted by the President of that Commission and atleast one member thereof, sitting together:

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.

(2) On receipt of a complaint made under section 35, the District Commission may, by order, admit the complaint for being proceeded with or reject the same:

Provided that a complaint shall not be rejected under this section unless an opportunity of being heard has been given to the complainant:

S.2 Definitions.

In this Act, unless the context otherwise requires,---

(1) "advertisement" means any audio or visual publicity, representation, endorsement or pronouncement made by means of light, sound, smoke, gas, print, electronic media, internet or website and includes any notice, circular, label, wrapper, invoice or such other documents;

(2) "appropriate laboratory" means a laboratory or an organisation---

(i) recognised by the Central Government; or

(ii) recognised by a State Government, subj