(As amended by the Consumer Protection (Amendment) Act, 1993)An Act 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 the consumers' disputes and for matters connected therewith. 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. 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; (b) the right to be informed about the quantity, potency, purity standard and price of goods to protect the consumer against unfair trade practices; (c) the right to be assured, where

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S.28 Protection of action taken in good faith

Protection of action taken in good faith:-- No suit, prosecution or other legal proceedings shall lie against the members of the District Forum, the State Commission or the National Commission or any officer or person acting under the direction of the District Forum, the State Commission or the National Commission for executing any order made by it or in respect of anything which is in good faith done or intended to be done by such member, officer or person under this Act or under any rule or order made thereunder.

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S.1 Short title, extent, commencement and applications

Short title, extent, commencement and applications:-- (1) This Act may be called the Consumer Protection Act, 1986.

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

(3) It shall come into force on such * date as the Central Government may, by notification, appoint and different date may be appointed for different States and for different provisions of this Act.

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

S.2 Definitions

Definitions:-- (1) In this Act unless the context otherwise requires,-

* [(a) “appropriate laboratory” means a laboratory or organisation-

(i) recognised by the Central Government;

(ii) recognised by a State Government, subject to such guidelines as may be prescribed by the Central Government in this behalf; or

(iii) any such laboratory or organisation established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining w

S.3 Act not in derogation of any other Law

Act not in derogation of any other Law:-- The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.

S.4 The Central Consumer Protection Council

The Central Consumer Protection Council:-- (1) The Central Government * [shall], by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council).

(2) The Central Council shall consist of the following members namely-

(a) the minister in charge of * [“consumer affairs”] in the Central Government, who shall be its Chairman; and

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

S.5 Procedure for meetings of the Central Council

Procedure for meetings of the 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 Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed.

S.6 Objects of the Central Council

Objects of the Central Council:- The objects of the Central Council shall be to promote and protect the rights of the consumers such as --

(a) the right to be protected against the marketing of goods * [and services] which are hazardous to life and property;

(b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods * [or services, as the case may be], so as to protect the consumers against unfair trade practices;

(c) the right to be assured, wherever possible, access to a variety of goods The State Consumer Protection Councils:-- (1) The State Government * [shall], by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council for (hereinafter referred to as the State Council).

* [(2) The State Council shall consist of the following members, namely:--

(a) the Minister in-charge of consumers affairs in the State Government who shall be its Chairman;

(b) such number of other official or non-official members representing such interests as may be prescribed by the State Gov

S.8 Objects of the State Council

Objects of the State Council:-- The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in Clauses (a) to (f) of Section 6.

S.8-A The District Consumer Protection Council

*[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

S.8-B Objects of the District Council

Objects of the District Council:- The objects of every District Council shall be to promote and protect within the district the rights of the consumers laid down in clauses (a) to (f) of Section 6.]

S.9 Establishment of Consumers Disputes Redressal Agencies

Establishment of Consumers Disputes Redressal Agencies:-- There shall be established for the purposes of this Act, the following agencies, namely:--

(a) a Consumer Disputes Redressal Forum to be known as the “District Forum” established by the State Government * [x x x ] in each district of the State by notification:

* [Provided that the State Government may, if it deems fit, establish more than one District Forum in a District’].

(b) a Consumer Disputes Redressal Commission to be known as the ‘State Commission

S.10 Composition of the District Forum

Composition of the District Forum:-- * [(1) Each District Forum shall consist of,--

(a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President ;

* [(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

S.11 Jurisdiction of the District Forum

Jurisdiction of the District Forum:-- (1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaint where the value of the goods or services and the compensation, if any, claimed * [does not exceed rupees twenty lakhs]

(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 there are more than, one at the time of the institution of the complaint, actually and voluntarily resides or * [‘carries on business or has a branch office or] personally work

S.12 Manner in which complaint shall be made

* [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 c

S.13 Procedure on admission of complaint

* [Procedure on admission of complaint]:-- (1) The District Forum shall, * [on admission of a complaint,] if it relates to any goods,--

* [(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 by the District Forum;]

(b) where the opposite party on receipt of a complaint referred to him under Clause (a) denies or disputes

S.14 Finding of the District Forum

Finding of the District Forum:-- (1) If, after the proceeding conducted under Section 13, the District Forum is a satisfied that the goods complained against suffer form any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to * [do] one or more of the following things, namely,-

(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

S.15 Appeal

Appeal :-- Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed :

Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days it is satisfied that there was sufficient cause for not filing it within that period.

* [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

S.16 Composition of the State Commission

Composition of the State Commission:- (1) Each State Commission shall consist of

(a) a person who is or has been a Judge of a High Court, appointed by the State Government who shall be its President:

* [Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court];

* [(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

S.17 Jurisdiction of the State Commission

Jurisdiction of the State Commission:-- * [(1)] Subject to the other provisions of this Act, the State Commission shall have jurisdiction,--

(a) to entertain,--

(i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees * [twenty lakhs but does not exceed rupees one crore]; and

(ii) appeals against the order of any District Forum within the State; and

(b) to call for the record and pass appropriate orders in any consumer dispute which is pending before or has bee

S.17-A Transfer of cases

* [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 if the interest of justice so requires.

S.17-B Circuit Benches

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.18 Procedure applicable to State Commissions

Procedure applicable to State Commissions:-- * [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 necessary, be applicable to the disposal of disputes by the State Commission.

S.18-A X X X

* [X X X]

S.19 Appeals

Appeals:-- Any person aggrieved by an order made by the State Commission in exercise of its power conferred by sub_clause (i) of Clause (a) of Section 17 may prefer and appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed:

Provided that the National Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

* [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 t

S.19-A Hearing of appeal

* [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 Futher 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 a

S.20 Composition of the National Commission

Composition of the National Commission:-- (1) The National Commission shall consist 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 * [Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India];

* [(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;

S.21 Jurisdiction of the National Commission

Jurisdiction of the National Commission:-- Subject to the other provisions of this Act, the National Commission shall have jurisdiction-

(a) to entertain,--

(i) complaints where the value of the goods or services and compensation, if any, claimed exceed rupees * [one crore]; and

(ii) appeals against the orders of any State Commission; and

(b) 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 ve

S.22 Power and procedure applicable to the National Commission

* [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.

S.22A Power to set aside ex parte orders

22-A. 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, the aggrieved party may apply to the Commission to set aside the said order in the interest of justice.

S.22-B Transfer of cases

Transfer of cases:- On the application of the complainant or of its own motion, the National Commis­sion may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending before the District Forum of one State to a District Forum of another State or before one State Commission to another State Commission.

S.22-C Circuit Benches

Circuit Benches:-The National Commission shall ordinarily function at New Delhi and perform its functions at such other place as the Central Government may, in consultation with the National Commission, notify in the Official Gazette, from time to time.

S.22-D Vacancy in the office of President

Vacancy in the office of President:-When the office of President of a District Forum, State Commission, or of the National Commission, as the case may be, is vacant or a person occupying such office is, by reason of absence or otherwise, unable to perform the duties of his office, these shall be performed by the senior-most member of the District Forum, the State Commis­sion or of the National Commission, as the case may be:

Provided that where a retired Judge of a High Court is a member of the National Commission, such member or where the number of such members is more than one, the senior-most person among such members, shall preside over the National Commission in the absence of President of that Commission.]

S.23 Appeal

Appeal:-- Any person aggrieved by an order made by the National Commission in exercise of its powers conferred by sub_clause (i) of clause (a) of Section 21, may prefer an appeal against such order to the Supreme Court within a period of thirty days from the date of the order:

Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

* [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 had deposited in

S.24 Finality of orders

Finality of orders:-- Every order of a District Forum, State Commission or the National Commission shall, if no appeal has been preferred against such order under the provisions of this Act, be final.

S.24-A Limitation period

* [Limitation period] :-- (1) The District Forum, the State Commission or the National Commission shall not admit a compliant unless it is filed within two years from the date on which the cause of action has arisen.

(2) Notwithstanding anything contained in sub_section (1), a complaint may be entertained after the period specified in sub_section (1), if the complainant satisfies the District Forum, the State Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period:

Provided that no such complaint shall be entertained unless the National Commission or the District Forum, as the case may be, records its reasons for co

S.24-B Administrative control

Administrative control:-- (1) The National Commission shall have administrative control over all the State Commissions in the following matters, namely:-

(i) calling for periodical returns regarding the institution, disposal pendency of cases;

(ii) issuance of instructions regarding adoption of uniform procedure in the hearing of matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of English translation of judgments written in any language, speedy grant of copies of documents;

(iii) generally overseeing the functioning of the State Commissions or the District Fora to ensure that the objects and purposes of the Act are best served witho

S.25 Enforcement of orders of the District Forum, the State Commission or the National Commission

* [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,

S.26 Dismissal of frivolous or vexatious complaints

* [Dismissal of frivolous or vexatious complaints:-- Where a complaint instituted before the District Forum, the State Commission or, as the case may be, the National Commission is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order.]

S.27 Penalties

Penalties:-- * [(1)] Where a trader or a person against whom a complaint is made * [or the complainant’] fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, as the case may be, such trader or person * [or complainant] shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees or with both:

* [Appeal against order passed under Section 27:- (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974), 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,

*[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 acknowledgment due addressed to opposite party against whom complaint is made or to the complainant by speed post or by such courier service as are approved by the District Forum, the State Commission or the National Commission, as the case may be, or by any other means of transmission of documents (including FAX message).

(3) When an acknowledgment or any other receipt purporting to be signed by the op

S.29 Power to remove difficulties

Power to remove difficulties:-- (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty:

Provided that no such order shall 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.

* [(3) If any difficulty arises in giving effect to the provisions of the Consume

S.29-A Vacancies or defects in appointment not to invalidate orders

* [Vacancies or defects in appointment not to invalidate orders:-- No Act or proceeding of the District Forum, the State Commission or the National Commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.]

S.30 Power to make Rules

* [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,

S.30-A Power of the National Commission to make regulations

* [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.31 Rules and regulations to be laid before each House of Parliament

* [Rules and regulations 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 modificatio