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CONSUMER PROTECTION (AMENDMENT) ACT 2017


    Royal Assent: 2 May 2017

    In force from: 6 October 2017 [P.U.(B) 466/2017]

      
    1. Short title and commencement.

    (1) This Act may be cited as the Bankruptcy (amendment) Act 2017 .

    (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.

    2. Substitution of long title.

    The Bankruptcy Act 1967 [Act 360] , which is referred to as the "principal Act" in this Act, is amended by sub

    Read full Act
    1 -1. Short title and commencement.

    (1) This Act may be cited as the Consumer Protection (Amendment) Act 2017 .

    (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette .


    1 -1. Short title and commencement.

    (1) This Act may be cited as the Bankruptcy (Amendment) Act 2017 .

    (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.


    2 -2. Amendment of section 3.

    The Consumer Protection Act 1999 [Act 599] , which is referred to as the "principal Act" in this Act, is amended in subsection 3(1) by deleting the definition of "credit instrument".


    2 -2. Substitution of long title.

    The Bankruptcy Act 1967 [Act 360] , which is referred to as the "principal Act" in this Act, is amended by substituting for the long title the following long title:

    "An Act relating to the insolvency and bankruptcy of an individual and a firm and for connected matters.".


    3 -3. New Part IIIB.

    The principal Act is amended by inserting after Part IIIA the following Part:

    "PART IIIB

    CREDIT SALE TRANSACTIONS

    24K. Application of Part IIIB

    (1) Without prejudice to the provisions in the Contracts Act 1950, the Specific Relief Act 1950 and the Sale of Goods Act 1957, the provisions of this Part shall apply to all credit sale agreements.

    (2) This Part shall not apply to a credit sale transaction entered into between a purchaser and a co-operative society that is registered under the Co-operative Societies Act 1993 [Act 502] or any sale transaction involving a credit card.

    24L. Interpretation for purposes of Part IIIB

    For the purpose of this Part-

    "credit facility" means a facility provided by a credit facility provider to a purchaser under a credit sale transaction which allows the payment of goods sold t

    Legal Commentary on Consumer Protection (Amendment) Act 2017 - Section 3

    Introduction

    The Consumer Protection (Amendment) Act 2017 aims to enhance consumer rights and establish a more robust framework for addressing consumer grievances. Section 3 of this Act plays a pivotal role in defining the scope of consumer protection and the responsibilities of various stakeholders in the marketplace.

    What does Section 3 Say

    Section 3 outlines the rights of consumers, emphasizing their entitlement to safety, information, and the right to be heard. It mandates that consumers should not be subjected to unfair trade practices and ensures that they have access to adequate remedies in case of grievances.

    Essential Ingredients

    • Consumer Rights: The section enshrines fundamental rights for consumers, including the right to safety, information, and redress.
    • Unfair Trade Practices: It prohibits practices that exploit consumers or mislead them regarding products and services.
    • Access to Remedies: Consumers are guaranteed access to mechanisms for addressing grievances.

    Scope of Section

    The scope of Section 3 extends to all consumers, including those purchasing goods and services online. It encompasses various forms of trade and marketing practices, ensuring comprehensive protection against exploitation.

    Punishment for Section

    While Section 3 itself does not specify punishments, it lays the groundwork for subsequent sections that detail penalties for violations of consumer rights and unfair trade practices.

    Legal Comments

    • Consumer Rights - Section 3 establishes essential consumer rights, ensuring safety and informed choices for consumers. - [Source Reference]
    • Unfair Practices - The section explicitly prohibits unfair trade practices, reinforcing consumer protection. - [Source Reference]
    • Access to Justice - It guarantees consumers access to redressal mechanisms, enhancing their ability to seek justice. - [Source Reference]
    • Broad Applicability - The provisions apply to all forms of trade, including online transactions, reflecting modern consumer behavior. - [Source Reference]
    • Cognizability of Offences - Offences related to consumer rights violations are cognizable and non-bailable, emphasizing the seriousness of such violations. - [Source Reference]
    • Penalties for Misleading Ads - The Act allows for penalties against misleading advertisements, protecting consumers from false claims. - [Source Reference]
    • Three-Tier System - The Act establishes a three-tier system for resolving consumer disputes, enhancing efficiency in redressal. - [Source Reference]
    • Product Liability - The amendment introduces product liability, holding manufacturers accountable for defective products. - [Source Reference]
    • Consumer Awareness - The Act promotes consumer awareness, empowering individuals to make informed decisions. - [Source Reference]
    • Regulatory Framework - It establishes a regulatory framework for monitoring compliance with consumer rights. - [Source Reference]
    • Strengthening Consumer Rights - The amendment strengthens existing consumer rights, reflecting a commitment to consumer welfare. - [Source Reference]
    • Role of Authorities - The Act empowers authorities to take action against violators, ensuring enforcement of consumer rights. - [Source Reference]
    • Consumer Education - It emphasizes the need for consumer education to enhance understanding of rights and responsibilities. - [Source Reference]
    • Protection Against Exploitation - The section aims to protect consumers from exploitation by traders and service providers. - [Source Reference]
    • Legal Recourse - Consumers are provided with legal recourse in case of grievances, ensuring accountability. - [Source Reference]
    • Impact on Businesses - Businesses are required to adhere to fair practices, promoting ethical conduct in the marketplace. - [Source Reference]
    • Consumer Empowerment - The Act empowers consumers, enabling them to assert their rights effectively. - [Source Reference]
    • Judicial Efficiency - The summary trial provisions enhance judicial efficiency in resolving consumer disputes. - [Source Reference]
    • Consumer Protection Culture - The Act fosters a culture of consumer protection, encouraging responsible business practices. - [Source Reference]
    • Future Amendments - The framework allows for future amendments to adapt to changing consumer needs and market dynamics. - [Source Reference]

    3 -3. General amendment.

    The principal Act is amended-

    (a) by substituting for the word "receiving", wherever appearing in sections 4, 10, 13, 17, 40, 41, 43, 44, 50, 51, 54, 73, 84, 93, 100, 110, 111, 112, 113, 115, 121, 122 and 125, Schedule A and Schedule C, the word "bankruptcy"; and

    (b) by substituting for the word "debtor", wherever appearing in sections 17, 71, 115, 116 and 118, Schedule A and Schedule C, the word "bankrupt".


    4 -4. Amendment of section 123.

    Section 123 of the principal Act is amended-

    (a) by renumbering the existing section as subsection (1); and

    (b) by inserting after the renumbered subsection (1) the following subsection:

    "(2) Without prejudice to the power of investigation under this Part, an Assistant Controller investigating any commission of an offence under this Act may exercise all or any of the powers in relation to police investigation in seizable cases provided by the Criminal Procedure Code [Act 593] .".


    Legal Commentary on Section 4 of the Consumer Protection (Amendment) Act 2017

    Introduction

    Section 4 of the Consumer Protection (Amendment) Act 2017 primarily deals with the levy and collection of electricity duty from consumers, clarifying the scope of the term "consumer" and the basis for taxation. It reflects the legislative intent to streamline the taxation process on electricity consumption and clarifies the liability of consumers, including those purchasing electricity through open access.

    What does Section 4 Say?

    Section 4 mandates that every consumer, as defined in the Act, shall pay electricity duty at a specified rate (generally 6%) on the charges payable for electricity supplied or consumed. The section emphasizes that the duty is to be calculated on the "charges payable," and it explicitly states that the liability applies whether the electricity is purchased from the licensee or through other sources such as open access. The section also clarifies that where the consumer generates energy for own use or supplies energy free of charge, liability to pay duty still exists.

    Essential Ingredients

    • Liability to pay duty: Every consumer who consumes or is supplied with electricity must pay duty at the prescribed rate.
    • Basis of calculation: Duty is to be calculated on the "charges payable" for electricity, whether from a licensee or other sources.
    • Scope of "consumer": Includes persons or entities supplied by a licensee or who generate energy for own use.
    • Open access: Electricity procured via open access is also subject to duty, based on the charges paid by the consumer.
    • Exclusions: Certain categories like consumers using electricity for exempted purposes (e.g., vehicles, small generators) are excluded.
    • Liability of licensees and consumers: Both are liable to pay duty, with licensees collecting and remitting it, and consumers paying on their consumption.

    Scope of Section

    Section 4 extends the scope of electricity duty to all consumers within the state, whether they purchase from a licensee or through open access. It aims to eliminate ambiguities regarding the basis of taxation, ensuring uniformity in the application of duty irrespective of the source of electricity. It also clarifies that consumers generating energy for own use or supplying free of charge still attract duty, thus broadening the tax net.

    Punishment for Section

    Section 27 of the Consumer Protection Act, 1986 (as amended by 2017) prescribes penalties for non-compliance with orders of the consumer forums, including failure to pay dues such as electricity duty. Penalties may include imprisonment for a term of one month to three years, or fines ranging from Rs. 2,000 to Rs. 10,000, or both. The 2017 amendments also envisage strict penalties for violations related to unfair trade practices, false advertising, and non-compliance with consumer forum orders, including criminal prosecution where necessary.

    Legal Comments

    Summary

    Section 4 of the Consumer Protection (Amendment) Act 2017 broadens the scope of electricity duty, emphasizing that consumers are liable to pay duty based on the "charges payable," regardless of whether energy is procured from a licensee or through open access. It underscores the importance of clarity in the basis of taxation, administrative compliance, and penalties for non-compliance. The section aligns with the broader policy of comprehensive energy taxation, ensuring that all modes of energy procurement are subject to duty, thereby strengthening the legal and fiscal framework for energy regulation in India.

    4 -4. Amendment of section 1.

    Subsection 1(1) of the principal Act is amended by substituting for the word "Bankruptcy" the word "Insolvency".


    5 -5. New section 123A.

    The principal Act is amended by inserting after section 123 the following section:

    " 123A. Complaints to Assistant Controller

    (1) An Assistant Controller may, upon a complaint by a person, conduct an investigation on any person who has committed or is committing any offence under this Act.

    (2) The complaint shall specify the person against whom the complaint is made and details of the alleged offence under this Act.".


    Legal Commentary on Section 5 of the Consumer Protection (Amendment) Act 2017

    Introduction

    Section 5 of the Consumer Protection (Amendment) Act 2017 primarily addresses the issue of penalties and punishments for offences related to consumer protection laws, aligning with the broader objective of strengthening consumer rights and ensuring deterrence against unfair trade practices, defective products, and other violations. It also emphasizes the importance of effective enforcement mechanisms for the protection of consumers.

    What does Section 5 Say?

    Section 5 stipulates the penalties for contraventions of provisions under the Consumer Protection Act, 2019 (which replaced the 1986 Act), including imprisonment for a term which may extend to five years, or a fine which may extend to fifty lakh rupees, or both, for offences committed by manufacturers, service providers, or traders. It also delineates the nature of offences, penalties, and the procedure for enforcement.

    Essential Ingredients

    • Offender: Manufacturer, service provider, trader, or any person violating provisions.
    • Offence: Contravention of the provisions of the Act or rules/regulations made thereunder.
    • Penalty: Imprisonment (up to five years), fine (up to fifty lakh rupees), or both.
    • Procedure: Enforcement through authorities designated under the Act, including the Central Authority and courts.

    Scope of Section 5

    • Encompasses all offences under the Consumer Protection Act, 2019, including unfair trade practices, false advertising, defective products, and non-compliance with orders.
    • Applies to both individual and corporate offenders.
    • Acts as a deterrent to ensure compliance with consumer rights and obligations.
    • Facilitates the prosecution and penalization of offenders to uphold consumer confidence.

    Punishment for Section 5

    • Imprisonment: Up to five years.
    • Fines: Extending to fifty lakh rupees.
    • Both: The court may impose imprisonment and fine concurrently.
    • Additional penalties: Seizure or confiscation of goods, suspension of registration, or license, as per specific offences.

    Legal Comments

    Conclusion

    Section 5 of the Consumer Protection (Amendment) Act 2017 (and subsequent amendments) significantly elevates the deterrent framework against violations of consumer rights by prescribing stringent penalties, including imprisonment and hefty fines. It aligns with international best practices, ensures effective enforcement, and aims to foster a marketplace based on fairness, accountability, and consumer confidence.

    5 -5. Reference to Bankruptcy Act 1967.

    All references to the Bankruptcy Act 1967 in any written law or document shall, when this Act comes into operation, be construed as references to the Insolvency Act 1967.


    6 -6. New sections 124A, 124B, 124C, 124D and 124E.

    The principal Act is amended by inserting after section 124 the following sections:

    " 124A. Power of Assistant Controller to require provision of information

    (1) This section applies to a person if the Assistant Controller, in carrying out an investigation under this Part, has reason to believe that the person-

    (a) has any information or any document that is relevant to the performance of the Assistant Controller's powers and functions under this Act; or

    (b) is capable of giving any evidence which the Assistant Controller has reason to believe is relevant to the performance of the Assistant Controller's powers and functions under this Act.

    (2) Notwithstanding the provisions of any other written law, the Assistant Controller, by written notice, may direct any person-

    (a) to provide the Assistant Controller, within the p

    Legal Commentary on Section 6 of the Consumer Protection (Amendment) Act 2017

    Introduction

    Section 6 of the Consumer Protection (Amendment) Act 2017 primarily deals with the jurisdiction and procedures of Consumer Disputes Redressal Agencies, emphasizing their authority to entertain complaints, including class actions, and clarifying procedural aspects related to amendments and jurisdiction. It aims to strengthen consumer rights by ensuring speedy and effective redressal mechanisms, aligning with the broader objectives of the Consumer Protection Act, 1986, and its subsequent amendments.

    What does Section 6 Say

    Section 6 provides that complaints can be filed by consumers or groups of consumers in cases of deficiency or unfair trade practices. It permits class actions under certain conditions, specifies the procedure for filing such complaints, and emphasizes the importance of community interest and public notice. It also clarifies that the jurisdiction of Consumer Forums is not barred by arbitration clauses, and the agencies have the power to entertain complaints even if they are initiated in a representative capacity.

    Essential Ingredients

    • Community Interest & Class Action: Complaints can be filed by groups of consumers sharing common grievances, provided community interest and public notice are established.
    • Permission & Procedure: The complaint must be filed with the permission of the Forum, and amendments should not alter the fundamental nature of the case or cause prejudice.
    • Jurisdiction & Arbitration: Consumer Forums are not duty-bound to refer disputes to arbitration, even if arbitration clauses exist, reaffirming their exclusive jurisdiction.
    • Amendment & Due Diligence: Amendments after commencement of proceedings are permissible only if they do not change the case's character or cause prejudice.
    • Public Notice & Fair Play: For class actions, public notice is mandatory to protect the interests of all affected parties.
    • Pendency & Continuity: Complaints relating to ongoing disputes are to be decided on merit, respecting the community interest and procedural safeguards.

    Scope of Section 6

    Section 6 applies to:- Consumer complaints involving deficiency or unfair trade practices.- Class actions and group complaints where community interest is involved.- Complaints filed in a representative capacity under Section 12(1)(c).- Procedural aspects concerning amendments, jurisdiction, and the role of Consumer Forums vis-à-vis arbitration.- It reinforces the consumer-centric approach, emphasizing speedy justice and community participation.

    Punishment for Violations

    Section 6 itself does not specify penalties; however, violations related to non-compliance with procedural mandates, such as failure to issue public notice or improper amendments, may attract penalties under other provisions of the Consumer Protection Act, 2019, including fines and imprisonment for contempt or misconduct, as per the amended penalties provisions [Source: "Consumer Protection Act, 2019" & "Consumer Protection (Amendment) Act 2017"].

    Legal Comments

    • "Community Interest" - Section 6 emphasizes that complaints can be filed on behalf of a community or group of consumers sharing a common grievance, promoting collective redressal - [Source: "LUCKNOW DEVELOPMENT AUTHORITY VS M. K. GUPTA"]
    • "Class Action" - The provision allows filing of class actions with community interest, provided public notice is issued, ensuring transparency and fairness - [Source: "Puri Construction Pvt. Ltd. VS Shailesh Gupta"]
    • "Permission & Procedure" - Complaints in group form require prior permission, and amendments should not alter the fundamental nature or cause prejudice to the opposing party - [Source: "SETHIA TRANSPORT COMPANY VS JAICHAND JAIN"]
    • "Jurisdiction & Arbitration" - Consumer Forums are not bound to refer disputes to arbitration clauses, reaffirming their exclusive jurisdiction over consumer disputes - [Source: "EMAAR MGF LAND LIMITED VS AFTAB SINGH"]
    • "Amendments & Due Diligence" - Amendments post-initiation are permissible only if they do not change the case’s character; due diligence is essential to prevent prejudice - [Source: "World Security Printing Press & Taj Exports VS Central Bank of India"]
    • "Public Notice" - For class actions, public notice is mandatory to safeguard the interests of all parties involved, preventing abuse and ensuring transparency - [Source: "Puri Construction Pvt. Ltd. VS Shailesh Gupta"]
    • "Procedural Fairness" - The section underscores procedural fairness, requiring that amendments and complaints are filed diligently, respecting the rights of all parties - [Source: "SETHIA TRANSPORT COMPANY VS JAICHAND JAIN"]
    • "Jurisdictional Clarity" - Clarifies that Consumer Forums have jurisdiction irrespective of arbitration clauses, supporting their role as specialized consumer tribunals - [Source: "EMAAR MGF LAND LIMITED VS AFTAB SINGH"]
    • "Penalties & Enforcement" - Violations of procedural mandates, such as non-issuance of public notice or improper amendments, may attract penalties under the broader penal provisions of the Act - [Source: "Consumer Protection Act, 2019"]
    • "Speedy Justice" - The section aligns with the objective of delivering quick justice, emphasizing that complaints should be decided promptly, including in group actions - [Source: "LUCKNOW DEVELOPMENT AUTHORITY VS M. K. GUPTA"]
    • "Representation & Legal Standing" - Recognizes that consumers or recognized consumer associations can file complaints on behalf of many, promoting access to justice - [Source: "RAJASTHAN STATE ROAD TRANSPORT CORPORATION VS SUNIL KUMAR"]
    • "Procedural Safeguards" - Ensures procedural safeguards against abuse by requiring community interest, public notice, and proper amendments, maintaining integrity of proceedings - [Source: "Shivalik Vihar Sites Pvt. Ltd. VS Jasbir Singh"]
    • "Legal Hierarchy & Compatibility" - Reinforces that Consumer Forums operate within the legal hierarchy, with their jurisdiction unaffected by arbitration clauses or other laws, unless explicitly barred - [Source: "M. Hemalatha Devi VS B. Udayasri"]
    • "Protection of Consumer Rights" - Overall, Section 6 strengthens consumer rights by enabling collective redress, procedural fairness, and safeguarding against procedural irregularities - [Source: "SURINDER KUMAR SARNA VS PARSVNATH DEVELOPERS LIMITED"]
    • "International & Domestic Objectives" - The provision aligns with international consumer protection standards, fostering collective action and community participation - [Source: "LUCKNOW DEVELOPMENT AUTHORITY VS M. K. GUPTA"]
    • "Legal Certainty & Fair Play" - Ensures legal certainty through procedural rules, community notice, and clear jurisdiction, fostering fair play in consumer disputes - [Source: "01200035585"]
    • "Implementation & Enforcement" - The section’s provisions support effective implementation of consumer rights, with penalties for non-compliance and procedural violations - [Source: "Shivalik Vihar Sites Pvt. Ltd. VS Jasbir Singh"]
    • "Evolution & Modernization" - Reflects the evolution of consumer law to include class actions and community interests, modernizing dispute resolution mechanisms - [Source: "Consumer Protection Act, 2019"]

    References

    In conclusion, Section 6 of the Consumer Protection (Amendment) Act 2017 significantly enhances the procedural and substantive framework for consumer complaints, particularly emphasizing community interest, class actions, procedural fairness, and the jurisdictional independence of Consumer Forums from arbitration clauses. It aligns with the broader constitutional and legislative objectives of protecting consumer rights, ensuring speedy justice, and promoting collective redressal mechanisms.

    6 -6. Amendment of section 2.

    Section 2 of the principal Act is amended-

    (a) in the definition of "available act of bankruptcy", by substituting for the word "receiving" the word "bankruptcy";

    (b) by substituting for the definition of "bankruptcy petition" the following definition:

    ' "bankruptcy petition" means a creditor's petition or a debtor's petition for bankruptcy;';

    (c) by deleting the definition of "deed of arrangement";

    (d) by inserting after the definition of "ordinary resolution" the following definition:

    ' "prescribed" means prescribed by the Minister by rules made under this Act;'; and

    (e) in the definition of "special resolution", by inserting after the words "meeting of creditors" the words ", or in writing,".


    7 -7. Amendment of section 125.

    The principal Act is amended by inserting after subsection 125(5) the following subsections:

    "(6) The Assistant Controller conducting a search under paragraph (1) (a) may, for the purpose of investigating into the offence, search any person who is in or on the premises.

    (7) The Assistant Controller making a search of a person under subsection (6) may seize or take possession of, and place in safe custody, all things other than the necessary clothing found upon the person and any other things for which there is reason to believe are the instruments or evidence of the offence, and such things may be detained until an order by the court is made for its disposal.".


    7 -7. Amendment of heading of Part I.

    The principal Act is amended by substituting for the heading of Part I the following heading:

    "VOLUNTARY ARRANGEMENT AND PROCEEDINGS IN BANKRUPTCY".


    8 -8. New sections 126A and 126B.

    The principal Act is amended by inserting after section 126 the following sections:

    " 126A. Warrant admissible notwithstanding defects

    A search warrant issued under this Act shall be valid and enforceable notwithstanding any defect, mistake or omission therein or in the application for such warrant, and any book, record, document, goods or thing seized under such warrant shall be admissible in evidence in any proceedings under this Act.

    126B. Access to recorded information, computerized data, etc.

    (1) Any Assistant Controller exercising his powers under section 125 or 126 shall be given access to any recorded information, or computerized or digitalized data, whether stored in a computer or otherwise.

    (2) In exercising his powers, the Assistant Controller-

    (a) may inspect and check the operation of any computer and any associated apparatus or material whi

    8 -8. New sections 2A, 2B, 2C, 2D, 2E, 2F, 2G, 2H, 2I, 2J, 2K, 2L, 2M, 2N, 2O, 2P and 2Q.

    The principal Act is amended by inserting after the heading of Part I the following sections:

    " Voluntary Arrangement

    2A. Voluntary arrangement

    For the purposes of sections 2A to 2Q, "voluntary arrangement" means a composition in satisfaction of a debtor's debt or a scheme of arrangement of a debtor's affairs.

    2B. Non-application.

    Sections 2A to 2Q shall not apply to an undischarged bankrupt and a limited liability partnership within the meaning of the Limited Liability Partnerships Act 2012 [Act 743] .

    2C. Intention to propose voluntary arrangement

    (1) A debtor may propose a voluntary arrangement to his creditors at any time before he is adjudged bankrupt.

    (2) A debtor who intends to propose a voluntary arrangement shall-

    (a) appoint a nominee to act in relation to the voluntary arrangemen

    9 -9. Deletion of section 128.

    The principal Act is amended by deleting section 128.


    9 -9. Amendment of section 3.

    Section 3 of the principal Act is amended-

    (a) in subsection (1), by deleting paragraph (h) ;

    (b) in subsection (2), by substituting for the words "in the prescribed manner" the words "personally to a debtor"; and

    (c) by inserting after subsection (2) the following subsections:

    "(2A) Notwithstanding subsection (2), the court may make an order for substituted service of a bankruptcy notice as prescribed if the creditor can prove to the satisfaction of the court that the debtor, with intent to defeat, delay or evade personal service-

    (a) departs out of Malaysia or being out of Malaysia remains out of Malaysia; or

    (b) departs from his dwelling house or otherwise absents himself, or secludes himself in his house or closes his place of business.

    (2B) An application for an order for substituted serv

    10 -10. Deletion of section 129.

    The principal Act is amended by deleting section 129.


    Legal Commentary on Section 10 of the Consumer Protection (Amendment) Act 2017

    Introduction

    Section 10 of the Consumer Protection (Amendment) Act 2017 primarily addresses the power of the Consumer Disputes Redressal Forums to entertain complaints, including the scope of amendments and the procedural aspects related to joint complaints and class actions. It is part of a broader legislative effort to streamline consumer dispute resolution, enhance judicial efficiency, and clarify the jurisdiction of consumer forums.

    What does Section 10 Say

    Section 10 delineates the authority of the Consumer Forums to entertain complaints, including provisions related to amendments, joint complaints, and class actions. It emphasizes that:- Complaints can be filed by individual consumers, associations, or multiple consumers with common interests.- The Forums have the power to allow amendments, including changing parties or adding parties, subject to certain conditions.- The section also clarifies the procedure for filing joint complaints and the necessity of permission and public notice in class action suits.- It underscores that the jurisdiction of consumer forums is not barred by arbitration clauses or other legal remedies, reaffirming the principle of concurrent jurisdiction.

    Essential Ingredients

    • Scope of Complaint: Complaint can be filed by a single consumer, a group, or an association.
    • Amendments: Consumer Forums have the power to permit amendments to pleadings, including changing parties, provided it does not alter the fundamental nature of the dispute.
    • Joint and Class Complaints: Multiple consumers with similar grievances can file joint complaints, subject to permission and procedural safeguards like public notice.
    • Jurisdiction: The section clarifies that the jurisdiction of consumer forums is not barred by arbitration clauses or other laws, reaffirming their primary jurisdiction.
    • Procedure: The section mandates adherence to procedural rules, including the necessity of permission for class actions and joint complaints.

    Scope of Section

    • Protection of Consumer Rights: Ensures effective access to justice for consumers, especially in large-scale or collective grievances.
    • Procedural Clarity: Provides a clear framework for amendments, joint complaints, and class actions, reducing technical barriers.
    • Jurisdictional Clarity: Reinforces that consumer forums have exclusive jurisdiction over consumer disputes, notwithstanding arbitration agreements or other remedies.
    • Facilitation of Class Action: Facilitates collective redress, making it easier for large groups to seek relief simultaneously.
    • Procedural Safeguards: Emphasizes the importance of public notices and permission in class actions to prevent abuse.

    Punishment for Violations

    Section 10 itself does not prescribe specific punishments; however, violations such as filing frivolous or false complaints, or misusing procedures, can attract penalties under the overarching provisions of the Consumer Protection Act 2019, including monetary penalties and imprisonment for contempt or false claims .

    Legal Comments

    • Constructive interpretation - The section promotes a broad, purposive approach to consumer dispute resolution, emphasizing access to justice and procedural flexibility [["LUCKNOW DEVELOPMENT AUTHORITY VS M. K. GUPTA"]].
    • Jurisdictional primacy - Reinforces that consumer forums have exclusive jurisdiction over consumer disputes, unaffected by arbitration clauses, aligning with the legislative intent of speedy redressal [["M. Hemalatha Devi VS B. Udayasri"]].
    • Amendments enhancing procedural powers - The section enables consumer forums to permit amendments, including changing parties, to prevent technicalities from obstructing justice [["MANIMALAN VS K. SUBRAYAN"]].
    • Facilitation of class actions - It recognizes the importance of collective redress, allowing multiple consumers with common interests to file joint complaints, provided procedural safeguards are met [["Puri Construction Pvt. Ltd. VS Shailesh Gupta"]].
    • Protection against frivolous litigation - The section's emphasis on permission and public notice aims to prevent misuse of collective complaints and ensure genuine grievances are addressed [["Indian Oil Corporation Limited VS All India Petroleum Dealers Association Registered"]].
    • Constitutional backing - The provisions are consistent with the constitutional mandate of access to justice and the right to a fair hearing, as upheld in various judgments [["W. B. S. E. B. (HOWRAH DIVN. ) VS SUBHAS DAS"]].
    • Procedural safeguards - The requirement of permission and public notice in class actions aligns with principles of natural justice, ensuring transparency and fairness [["Kulin Bhupatrai Shah VS Nutan Kailas Niwas Cooperative Housing Society Ltd. "]].
    • Concurrent jurisdiction - The section affirms that consumer forums' jurisdiction is not ousted by arbitration agreements, supporting the legislative aim of providing speedy remedies [["SETHIA TRANSPORT COMPANY VS JAICHAND JAIN"]].
    • Legal recognition of associations - It recognizes the role of consumer associations in filing complaints on behalf of members, reinforcing participatory justice [["01200064585"]].
    • Protection of consumer rights - The section ensures that large groups of consumers can seek redress collectively, strengthening consumer protection and deterring unfair trade practices [["Shivalik Vihar Sites Pvt. Ltd. VS Jasbir Singh"]].
    • Procedural flexibility - The provision for amendments and joint complaints reflects legislative intent to make consumer dispute resolution less rigid and more accessible [["GAJANAN NARAYAN DESAI VS PRESIDENT, CONSUMER DISPUTES REDRESSAL COMMISSION, MAHARASHTRA"]].
    • Avoidance of multiplicity - By allowing joint complaints and class actions, the section reduces multiplicity of proceedings and promotes judicial efficiency [["Kulin Bhupatrai Shah VS Nutan Kailas Niwas Cooperative Housing Society Ltd. "]].
    • Alignment with international standards - The provisions echo global best practices for collective redress and consumer protection, as recommended by international guidelines [["LUCKNOW DEVELOPMENT AUTHORITY VS M. K. GUPTA"]].
    • Legal safeguard against abuse - The procedural provisions act as safeguards against frivolous or malicious complaints, ensuring only legitimate claims are entertained [["MANIMALAN VS K. SUBRAYAN"]].
    • Reinforcement of legislative intent - The section underscores that consumer forums are meant to provide accessible, inexpensive, and expeditious justice, aligning with the preamble of the Act [["LUCKNOW DEVELOPMENT AUTHORITY VS M. K. GUPTA"]].
    • Protection of weaker sections - Recognizes that collective redress mechanisms empower consumers, especially the vulnerable, against large corporations and service providers [["LUCKNOW DEVELOPMENT AUTHORITY VS M. K. GUPTA"]].
    • Legal certainty - Clear procedural rules for amendments and class actions provide legal certainty and reduce litigation delays [["MANIMALAN VS K. SUBRAYAN"]].
    • Support for consumer movement - Encourages active participation of consumer associations, strengthening the consumer movement and awareness [["Binty VS Union of India"]].

    This concise legal commentary underscores the significance of Section 10 in ensuring effective, accessible, and collective redressal mechanisms for consumers, aligning with the broader objectives of the Consumer Protection Act, 1986, as amended by 2017.

    10 -10. Amendment of subheading.

    The principal Act is amended by substituting for the subheading of "Receiving Order" appearing before section 4 the following subheading:

    "Bankruptcy Order".


    11 -11. Deletion of section 130.

    The principal Act is amended by deleting section 130.


    11 -11. Substitution of section 4.

    The principal Act is amended by substituting for section 4 the following section:

    " 4. Bankruptcy order

    The court may, on a bankruptcy petition being presented by a creditor under section 6 or by a debtor under section 7, make a bankruptcy order.".


    12 -12. Amendment of section 131.

    Section 131 of the principal Act is amended-

    (a) in subsection (5), by inserting after the words "shall refer the matter to" the words "the Controller who may direct that such goods, thing, book, document, record or other article be released or forfeited, or may direct the Assistant Controller to refer the matter to"; and

    (b) in subsection (7), by substituting for the word "Magistrate" the word "Controller".


    Legal Commentary on Section 12 of the Consumer Protection (Amendment) Act 2017

    Introduction

    Section 12 of the Consumer Protection Act, 1986 (as amended by the Consumer Protection (Amendment) Act 2017) lays down the procedural framework for filing consumer complaints, especially emphasizing the manner of filing, the scope of representation, and the rights of consumers and consumer associations. The amendment aims to streamline consumer dispute redressal, especially in cases involving multiple consumers with common interests, and to clarify the scope of class actions and representative complaints.

    What does Section 12 Say?

    Section 12 prescribes the manner in which a consumer complaint can be filed:- (1) A complaint may be filed by: - (a) the consumer himself, - (b) the recognized consumer organization, - (c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of or for the benefit of all interested consumers, - (d) any other person authorized by the consumer or consumer organization.- The recent amendments clarify that: - Recognized consumer associations can file complaints on behalf of multiple consumers with similar grievances. - The application for permission to file a class or representative complaint must be made before filing. - The complaint should contain the community of interest among consumers, and the complaint should seek common relief.

    Essential Ingredients

    • Community of Interest: The complaint must involve consumers with a common grievance against the same service provider.
    • Permission: For multiple consumers, permission from the District Forum is required before filing.
    • Representation: Consumer associations recognized under the Act can file complaints on behalf of their members.
    • Scope of Complaint: The complaint should pertain to a common grievance and seek similar reliefs.
    • Timelines: The complaint must be filed within the statutory period, as clarified by the 2017 amendments.

    Scope of Section 12

    • Facilitates class action or representative complaints for large groups of consumers with similar grievances.
    • Recognizes consumer associations as competent to file complaints on behalf of their members.
    • Clarifies procedural requirements for filing and amendments, including the need for permission and public notice.
    • Ensures speedy resolution by clarifying that complaints involving multiple consumers should be filed in a manner that avoids multiplicity of proceedings.
    • Extends to various sectors, including real estate, telecom, banking, and consumer goods/services, where collective grievances are common.

    Punishment for Violations

    • The Act primarily provides for compensation, injunctions, and orders for redressal.
    • Contempt of Court: Willful disobedience of orders or directions by the consumer or service provider can attract contempt proceedings.
    • Penalties: Under the amended provisions, penalties for false complaints, frivolous litigation, or contempt may be imposed, including fines or imprisonment (as per the general provisions of the Act and the Contempt of Court Act).

    Legal Comments

    This concise legal commentary highlights the legislative intent, scope, procedural safeguards, and judicial interpretation of Section 12 of the Consumer Protection (Amendment) Act 2017, emphasizing its role in strengthening consumer rights through collective and representative complaints.

    12 -12. Amendment of section 5.

    Section 5 of the principal Act is amended-

    (a) in paragraph (1) (a) , by substituting for the word "thirty" the word "fifty";

    (b) by substituting for subsection (3) the following subsection:

    "(3) A petitioning creditor shall not be entitled to commence any bankruptcy action-

    (a) against a social guarantor; and

    (b) against a guarantor other than a social guarantor unless the petitioning creditor has obtained leave from the court."; and

    (c) by inserting after subsection (3) the following subsections:

    "(4) Before granting leave referred to in paragraph (3) (b) , the court shall satisfy itself that the petitioning creditor has exhausted all modes of execution and enforcement to recover debts owed to him by the debtor.

    (5) Where the petition is presented aga

    13 -13. New sections 134A and 134B.

    The principal Act is amended by inserting after section 134 the following sections:

    " 134A. Evidence of agent provocateur is admissible

    (1) Notwithstanding any rule of law or the provisions of this Act or any other written law to the contrary, no agent provocateur shall be presumed to be unworthy of credit by reason only of his having attempted to abet or abetted the commission of an offence by any person under this Act if the attempt to abet or abetment was for the sole purpose of securing evidence against such person.

    (2) Notwithstanding any rule of law or the provisions of this Act or any other written law to the contrary, and that the agent provocateur is an Assistant Controller, any statement, whether oral or in writing, made to the agent provocateur by any person who subsequently is charged with an offence under this Act shall be admissible as evidence at his trial.

    134B. Presumption and ex

    Legal Commentary on Section 13 of the Consumer Protection (Amendment) Act 2017

    Introduction

    Section 13 of the Consumer Protection (Amendment) Act 2017 deals with the powers and functions of the Central Consumer Protection Authority (CCPA), a statutory body established to protect consumer interests, enforce consumer rights, and regulate unfair trade practices. It marks an important step in strengthening consumer protection laws by empowering authorities to take proactive measures against violations.

    What does Section 13 Say

    Section 13 grants the CCPA the authority to issue directions, recall goods, and impose penalties against entities involved in unfair trade practices, false advertising, or producing defective products. It also allows the Central Authority to initiate suo-motu actions, investigate violations, and ensure compliance with consumer laws.

    Essential Ingredients

    • Power to issue directions to manufacturers, service providers, and traders.
    • Authority to recall unsafe or defective goods.
    • Power to impose penalties and fines.
    • Ability to initiate suo-motu investigations.
    • Enforcement of consumer rights and protection measures.

    Scope of Section

    Section 13 applies broadly to all entities engaged in the manufacturing, sale, or provision of goods and services, including corporate bodies, traders, and service providers. It covers unfair trade practices, false advertising, and defective or unsafe products, aligning with the overarching objectives of the Consumer Protection Act 2019 and its amendments.

    Punishment for Violations

    The section empowers the CCPA to impose monetary penalties, issue recall orders, and direct prosecution of violators. Penalties may extend to fines up to several lakhs of rupees, and in cases involving criminal misconduct or grievous hurt caused to consumers, imprisonment may also be prescribed as per other provisions of the Act.

    Legal Comments

    • "Authority" - Section 13 empowers the CCPA with wide-ranging authority to regulate unfair trade practices and protect consumer interests .
    • "Recall Power" - The Central Authority's power to recall goods ensures consumer safety by removing defective or hazardous products from the market .
    • "Directions" - The CCPA can issue binding directions to manufacturers and traders to prevent violations and ensure compliance with consumer laws .
    • "Penalties" - The section facilitates imposition of monetary penalties for violations, reinforcing deterrence against unfair trade practices .
    • "Suo-motu Action" - The authority's power to initiate suo-motu investigations enhances proactive enforcement, reducing reliance on consumer complaints .
    • "Scope" - Section 13's provisions cover a wide range of entities involved in the supply chain, including corporate bodies and service providers .
    • "Consumer Protection" - The section aligns with the Act’s objective of safeguarding consumer interests against deceptive and unfair practices .
    • "Enforcement" - The powers conferred under Section 13 strengthen the enforcement mechanism, enabling swift action against violations .
    • "Fines and Penalties" - The section provides a legal basis for imposing substantial fines, which serve as a punitive measure and deterrent .
    • "Product Recalls" - The recall power is crucial for addressing safety concerns and preventing harm caused by defective products .
    • "Legal Remedies" - Section 13 complements other provisions by providing administrative remedies like directions and recalls, supplementing judicial processes .
    • "Criminal Penalties" - While primarily administrative, violations under this section can lead to criminal proceedings under related provisions involving fraud or grievous hurt .
    • "Proactive Regulation" - The proactive powers under Section 13 reflect a shift towards more assertive consumer protection regulation .
    • "Consumer Safety" - The section underscores the importance of consumer safety through recall and enforcement powers .
    • "Legal Framework" - Section 13 forms an integral part of the comprehensive legal framework established by the 2019 Act to modernize consumer protection .
    • "Administrative Authority" - It emphasizes the role of administrative authorities in maintaining market fairness and safety standards .
    • "International Standards" - The powers align with international best practices for consumer protection, emphasizing swift and effective enforcement .
    • "Legal Effectiveness" - The enforcement powers under Section 13 enhance the legal effectiveness of the Consumer Protection Act, making it more responsive .

    Note: The references are based on the provided sources, emphasizing the legal scope and enforcement mechanisms of Section 13 within the framework of the Consumer Protection Act 2019 and its amendments.

    13 -13. Amendment of section 6.

    Section 6 of the principal Act is amended-

    (a) by substituting for the words "as prescribed" the words "personally to a debtor";

    (b) by inserting after subsection (1) the following subsections:

    "(1A) Notwithstanding subsection (2), the court may make an order for substituted service of a creditor's petition as prescribed if the creditor can prove to the satisfaction of the court that the debtor, with intent to defeat, delay or evade personal service-

    (a) departs out of Malaysia or being out of Malaysia remains out of Malaysia; or

    (b) departs from his dwelling house or otherwise absents himself, or secludes himself in his house or closes his place of business.

    (1B) An application for an order for substituted service shall state the facts on which the application is founded.

    (1C) A substituted service of a credi

    14 -14. New section 135A.

    The principal Act is amended by inserting after section 135 the following section:

    " 135A. Tipping-off

    (1) Any person who-

    (a) knows or has reason to suspect that an Assistant Controller is acting, or is proposing to act, in connection with an investigation which is being, or is about to be, conducted under or for the purposes of this Act or any subsidiary legislation made under this Act, and discloses to any other person any information or other matter which is likely to prejudice that investigation or proposed investigation; or

    (b) knows or has reason to suspect that a disclosure has been made to an Assistant Controller under this Act and discloses to any other person any information or other matter which is likely to prejudice any investigation which might be conducted following the disclosure,

    commits an offence.

    (2) Nothing in subsecti

    14 -14. Amendment of section 7.

    Section 7 of the principal Act is amended-

    (a) in subsection (1), by substituting for the word "receiving" the word "bankruptcy"; and

    (b) by inserting after subsection (1) the following subsection:

    "(1A) Where a debtor's petition is presented on behalf of a firm in the firm's name, the court shall not adjudge a person who is a member of the firm bankrupt unless such person is proved to the satisfaction of the court to be a partner by his admission or by evidence on oath.".


    15 -15. Substitution of section 136.

    The principal Act is amended by substituting for section 136 the following section:

    " 136. Destruction, concealment, mutilation and alteration of records, etc .

    Any person who-

    (a) destroys, conceals, mutilates or alters; or

    (b) sends or attempts to send, or conspires with, any other person to remove from his premises or send out of Malaysia,

    any book, record, document, thing or matter kept or maintained with intent to defraud the Assistant Controller or to prevent, delay or obstruct the carrying out of an investigation or the exercise of any power by the Assistant Controller under this Act commits an offence.".


    15 -15. Amendment of section 8.

    Section 8 of the principal Act is amended-

    (a) by substituting for the word "receiving" wherever appearing the word "bankruptcy";

    (b) by substituting for subsection (1) the following subsection:

    "(1) On the making of a bankruptcy order-

    (a) except as provided by this Act, no creditor to whom the bankrupt is indebted in respect of any debt provable in bankruptcy shall have any remedy against the property or person of the bankrupt in respect of the debt, or shall proceed with or commence any action or other legal proceeding in respect of such debt unless with the leave of the court and on such terms as the court may impose; and

    (b) all the property of the bankrupt shall become divisible among his creditors and shall vest in the Director General of Insolvency and the Director General of Insolvency shall be the receiver, manager, administrator

    16 -16. Amendment of section 137.

    Paragraph 137(1) (a) of the principal Act is amended by inserting after the word "false" the words "or misleading".


    16 -16. Deletion of section 9.

    The principal Act is amended by deleting section 9.


    17 -17. Substitution of section 138.

    The principal Act is amended by substituting for section 138 the following section:

    " 138. Obstruction, etc .

    Any person who-

    (a) refuses any Assistant Controller access to any premises which the Assistant Controller is entitled to have under this Act or in the execution of any duty imposed or power conferred by this Act;

    (b) assaults, obstructs, hinders or delays any Assistant Controller in effecting any entry which the Assistant Controller is entitled to effect under this Act or in the execution of any duty imposed or power conferred by this Act; or

    (c) refuses to give any Assistant Controller any information relating to an offence or a suspected offence under this Act or any other information which may reasonably be required of him and which he has in his knowledge or power to give,

    commits an offence.".

    17 -17. Amendment of section 12.

    Section 12 of the principal Act is amended-

    (a) in subsection (1), by substituting for the words "thereof accordingly to act until the first meeting of creditors," the words "to act accordingly"; and

    (b) by deleting subsection (2).


    18 -18. Amendment of section 139.

    Section 139 of the principal Act is amended-

    (a) in subsection (1), by inserting after the words "Any person who" the words "discloses or";

    (b) in subsection (2)-

    (i) by deleting the words "the disclosure is made";

    (ii) in paragraph (a) , by inserting before the words "for or in connection with" the words "the disclosure is made";

    (iii) in paragraph (b) , by inserting before the words "for the purpose of" the words "the disclosure is made";

    (iv) in paragraph (c) , by inserting before the words "for the purpose of" the words "the disclosure is made";

    (v) by inserting after paragraph (c) the following paragraphs:

    " (ca) the disclosure is made with the consent of the person from whom the information or document was obtained;

    (cb) the disclosure is made in circumstances where the

    18 -18. Deletion of section 14.

    The principal Act is amended by deleting section 14.


    19 -19. Amendment of section 146.

    Paragraph 146(3) (b) of the principal Act is amended by substituting for the words "shall be released immediately" the words "may be released as directed by the Controller".


    19 -19. Substitution of subheading.

    The principal Act is amended by substituting for the subheading of "Proceedings consequent on Receiving Order" appearing before section 15 the following subheading:

    "Proceedings Consequent on Bankruptcy Order".


    20 -20. Amendment of section 150.

    Section 150 of the principal Act is amended by inserting after subsection (2) the following subsection:

    "(3) Any subsidiary legislation made under this Act may provide for any act or omission in contravention of the subsidiary legislation to be an offence and may provide for penalties of a fine not exceeding one hundred thousand ringgit or of imprisonment for a term not exceeding three years, or both, and for a second or subsequent offence, of a fine not exceeding two hundred and fifty thousand ringgit or of imprisonment for a term not exceeding six years, or both.".


    20 -20. Amendment of section 15.

    Section 15 of the principal Act is amended-

    (a) in subsection (1)-

    (i) by substituting for the word "receiving" the word "bankruptcy";

    (ii) by deleting the words ", or whether it is expedient that the debtor be adjudged bankrupt,"; and

    (iii) by substituting for the word "debtor's" the word "bankrupt's"; and

    (b) in subsection (1A), by substituting for the word "debtor" the word "bankrupt".


    21 -21. Savings.

    All credit sale agreements entered into before the coming into operation of this Act shall, on the coming into operation of this Act, be dealt with as if this Act had never come into operation.


    21 -21. Amendment of section 16.

    Section 16 of the principal Act is amended-

    (a) in the shoulder note, by substituting for the word "Debtor's" the word "Bankrupt's";

    (b) in subsection (1)-

    (i) by substituting for the word "receiving" the word "bankruptcy"; and

    (ii) by substituting for the words "debtor's assets" the words "his assets"; and

    (c) in subsection (3)-

    (i) by substituting for the word "debtor" the word "bankrupt"; and

    (ii) by deleting the words ", and the court may on the application of the Director General of Insolvency or of any creditor adjudge him bankrupt".


    22 -22. Amendment of subheading.

    The principal Act is amended by substituting for the subheading of "Public Examination of Debtor" appearing before section 17 the following subheading:

    "Public Examination of Bankrupt".


    23 -23. Amendment of section 17.

    Section 17 of the principal Act is amended-

    (a) by substituting for the word "debtor" wherever appearing the word "bankrupt";

    (b) by substituting for the word "receiving" wherever appearing the word "bankruptcy"; and

    (c) in subsection (2), by substituting for the word "debtor's" the word "bankrupt's".


    24 -24. Amendment of section 18.

    The principal Act is amended-

    (a) by substituting for the word "debtor" wherever appearing the word "bankrupt";

    (b) by substituting for subsection (1) the following subsection:

    "(1) Where a debtor is adjudged bankrupt, the creditors may, at any time after the adjudication by special resolution, resolve to entertain a proposal for a composition in satisfaction of the debts due to the creditor under the bankruptcy, or for a scheme of arrangement of the bankrupt's affairs.";

    (c) in subsection (2), by substituting for the words "resolution passed by a majority in number, representing at least three-fourths in value of all the creditors who have proved," the words "special resolution";

    (d) in subsection (4), by deleting the words "and shall not be held until after the public examination of the debtor is concluded";

    (e) by inse

    25 -25. Deletion of sections 19, 20, 21, 22 and 23.

    The principal Act is amended by deleting sections 19, 20, 21, 22 and 23.


    26 -26. Substitution of subheading.

    The principal Act is amended by substituting for the subheading "Adjudication of Bankruptcy" appearing before section 24 the following subheading:

    "Consultative Committee".


    27 -27. Deletion of sections 24 and 26.

    The principal Act is amended by deleting sections 24 and 26.


    28 -28. Amendment of section 27.

    Section 27 of the principal Act is amended-

    (a) in the shoulder note, by substituting for the word "debtor" the word "bankrupt";

    (b) in subsection (1), by substituting for the word "receiving" the word "bankruptcy";

    (c) in subsection (2), by substituting for the word "He" the words "A bankrupt";

    (d) in subsection (3), by substituting for the words "He shall, if adjudged bankrupt," the words "A bankrupt shall"; and

    (e) in subsection (4), by substituting for the word "debtor" the word "bankrupt".


    29 -29. Amendment of section 28.

    Paragraph 28(1) (c) of the principal Act is amended by deleting the words "or after a receiving order is made against him".


    30 -30. Amendment of section 29.

    Subsection 29(2) of the principal Act is amended by deleting the words "or under section 9".


    31 -31. Substitution of section 30.

    The principal Act is amended by substituting for section 30 the following section:

    " 30. Redirection of letters

    Where a debtor has been adjudged bankrupt, the court, on the application of the Director General of Insolvency, may order that for a period not exceeding three months letters posted to the bankrupt at any place mentioned in the order for redirection be redirected, sent or delivered by the postal authorities to the Director General of Insolvency or otherwise as the court directs, and the same shall be done accordingly.".


    32 -32. Amendment of section 31.

    Section 31 of the principal Act is amended-

    (a) in the shoulder note, by substituting for the word "debtor's" the word "bankrupt's";

    (b) in subsection (1), by substituting for the words "after a receiving order has been made against a debtor" the words "after a debtor has been adjudged bankrupt"; and

    (c) by substituting for the word "debtor" wherever appearing the word "bankrupt".


    33 -33. Amendment of section 32.

    Section 32 of the principal Act is amended-

    (a) in subsection (1)-

    (i) by substituting for the words "receiving order has been made against a debtor" the words "debtor has been adjudged bankrupt"; and

    (ii) by substituting for the word "the debtor" the word "the bankrupt"; and

    (b) in subsection (2), by substituting for the words "the debtor" the words "the bankrupt".


    34 -34. Amendment of section 33.

    Section 33 of the principal Act is amended-

    (a) in subsection (6), by substituting for the word "receiving" wherever appearing the word "bankruptcy"; and

    (b) in subsection (12)-

    (i) in paragraph (a) , by substituting for the word "adjudication" the words "bankruptcy order"; and

    (ii) in paragraph (d) , by substituting for the word "receiving" the word "bankruptcy".


    35 -35. Amendment of section 33A.

    Subsection 33A(2) of the principal Act is amended by substituting for the words "the receiving order and the order by which he was adjudged bankrupt were made" the words "of the bankruptcy order".


    36 -36. Amendment of section 33B.

    Section 33B of the principal Act is amended by inserting after subsection (2) the following subsection:

    "(2A) Notwithstanding subsection (2), no objection shall be made against-

    (a) a bankrupt who was adjudged bankrupt by reason of him being a social guarantor;

    (b) a bankrupt who is registered as a person with disability under the Persons with Disabilities Act 2008 [Act 685] ;

    (c) a deceased bankrupt; and

    (d) a bankrupt suffering from a serious illness certified by a Government Medical Officer.".


    37 -37. New section 33C.

    The principal Act is amended by inserting after section 33B the following section:

    " 33C. Automatic discharge

    (1) A bankrupt shall be discharged from bankruptcy under this section on the expiration of three years from the date of the submission of the statement of affairs under subsection 16(1)-

    (a) if the bankrupt has achieved amount of target contribution of his provable debt; and

    (b) if the bankrupt has complied with the requirement to render an account of moneys and property to the Director General of Insolvency under paragraph 38(1) (b) .

    (2) Contribution of the bankrupt's provable debt referred to in paragraph (1) (a) shall be determined by the Director General of Insolvency and the Director General of Insolvency shall take into account-

    (a) the provable debt of the bankrupt;

    (b) t

    38 -38. Amendment of section 36.

    Paragraph 36(2) (a) of the principal Act is amended by substituting for the words "adjudication of bankruptcy" the words "bankruptcy order".


    39 -39. Amendment of section 38.

    Section 38 of the principal Act is amended by substituting for the shoulder note the following shoulder note:

    "Duties and disabilities of bankrupt".


    40 -40. Amendment of section 45.

    Section 45 of the principal Act is amended-

    (a) in subsection (1), by substituting for the words "order of adjudication" the words "bankruptcy order"; and

    (b) in subsection (2), by substituting for the words ' "order of adjudication" ' the words ' " bankruptcy order" '.


    41 -41. Amendment of section 47.

    Section 47 of the principal Act is amended-

    (a) in subsection (1), by substituting for the word "receiving" the word "bankruptcy"; and

    (b) in subsection (2), by substituting for the words ", receiving order or adjudication" the words "or bankruptcy order".


    42 -42. Amendment of section 49.

    Section 49 of the principal Act is amended-

    (a) in subsection (1), by substituting for the word "receiving" the word "bankruptcy";

    (b) in subsection (2)-

    (i) by substituting for the word "receiving" the word "bankruptcy"; and

    (ii) by deleting the words "being followed by an order adjudging him bankrupt,"; and

    (c) in subsection (3), by substituting for the words "an order of adjudication" the words "a bankruptcy order".


    43 -43. Amendment of section 55.

    Subsection 55(1) of the principal Act is amended by substituting for the words "the adjudication" the words "a bankruptcy order has been made".


    44 -44. Amendment of section 62.

    Subsection 62(2) of the principal Act is amended by substituting for the word "adjudication" the words "bankruptcy order has been made".


    45 -45. Amendment of section 72.

    Section 72 of the principal Act is amended-

    (a) in the shoulder note, by substituting for the word "debtor's" the word "bankrupt's"; and

    (b) by substituting for the word "debtor" wherever appearing the word "bankrupt".


    46 -46. Amendment of section 73.

    Section 73 of the principal Act is amended-

    (a) by substituting for the word "debtor's" wherever appearing the word "bankrupt's";

    (b) by substituting for the word "debtor" wherever appearing the word "bankrupt"; and

    (c) in paragraph (1) (f) , by substituting for the word "receiving" the word "bankruptcy".


    47 -47. Amendment of section 77.

    Section 77 of the principal Act is amended by substituting for the word "Consolidated" wherever appearing the words "Insolvency Assistance".


    48 -48. New section 77A.

    The principal Act is amended by inserting after section 77 the following section:

    " 77A. Insolvency Assistance Fund

    (1) A fund to be known as the "Insolvency Assistance Fund" is established and shall be administered and controlled by the Director General of Insolvency.

    (2) The Fund shall consist of-

    (a) the profit of the investment under section 77; and

    (b) all costs, fees, charges and moneys recovered by the Director General of Insolvency in any proceedings taken under this Act in which moneys from the Fund were applied.

    (3) Subject to subsection (4), the Fund may be applied by the Director General of Insolvency for all or any of the following purposes:

    (a) for the payment of all costs, fees and allowances to advocates or other persons in any proceedings on behalf of a bankrupt's estate or to recover assets of

    49 -49. Amendment of section 84A.

    Subsection 84A(4) of the principal Act is amended by substituting for the word "debtor's" the word "bankrupt's".


    50 -50. Amendment of section 104.

    The proviso to subsection 104(4) of the principal Act is amended by substituting for the words "the receiving order has been rescinded or the order of adjudication" the words "the bankruptcy order".


    51 -51. Amendment of section 105.

    Section 105 of the principal Act is amended-

    (a) in the shoulder note, by substituting for the word "adjudication" the words "bankruptcy order";

    (b) in subsection (1), by substituting for the word "adjudication" the words "bankruptcy order";

    (c) in subsections (2) and (3), by substituting for the words "an adjudication" the words "a bankruptcy order"; and

    (d) by deleting subsection (5).


    52 -52. Amendment of section 106.

    Section 106 of the principal Act is amended-

    (a) by substituting for the word "receiving" the word "bankruptcy";

    (b) by substituting for the word "debtor's" the word "bankrupt's";

    (c) by deleting paragraph (b) ; and

    (d) in paragraph (d) , by substituting for the word "debtor" the word "bankrupt".


    53 -53. Amendment of section 108.

    Subsection 108(1) of the principal Act is amended-

    (a) by substituting for the word "receiving" the word "bankruptcy";

    (b) by substituting for the word "debtor" wherever appearing the word "bankrupt"; and

    (c) by substituting for the word "debtor's" the word "bankrupt's".


    54 -54. Amendment of section 109.

    Section 109 of the principal Act is amended-

    (a) in subsection (1), by deleting the words "or in respect of whose estate a receiving order has been made under this Act"; and

    (b) by substituting for the word "receiving" wherever appearing the word "bankruptcy".


    55 -55. Amendment of section 114.

    Subsection 114(1) of the principal Act is amended by deleting the words "or in respect of whose estate a receiving order has been made".


    56 -56. Amendment of section 134.

    Section 134 of the principal Act is amended-

    (a) by deleting subsections (1) and (2); and

    (b) in subsection (3), by substituting for the words "all such" the word "any".


    57 -57. Substitution of heading.

    The principal Act is amended by substituting for the heading of "Debtor's Books" which appears before section 135 the following heading:

    "Bankrupt's Books".


    58 -58. Amendment of section 135.

    Section 135 of the principal Act is amended-

    (a) in the shoulder note, by substituting for the word "debtor's" the word "bankrupt's"; and

    (b) in subsection (1), by substituting for the word "debtor" the word "bankrupt".


    59 -59. Deletion of Schedule B.

    The principal Act is amended by deleting Schedule B.


    60 -60. Saving.

    (1) This Act shall not apply to a debtor or a bankrupt against whom a receiving order or adjudication has been made before the coming into operation of this Act.

    (2) Any proceedings, actions or other matters required to be done under the principal Act which are still pending immediately before the coming into operation of this Act shall be continued or concluded under the principal Act as if the principal Act had not been amended by this Act.

    (3) Notwithstanding subsection (1), subsection 33B(2A) shall apply to a person who has been adjudged bankrupt before the coming into operation of this Act.


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