COMPARATIVE STATEMENT ON PROPOSED AMENDMENTS TO THE CONSUMER PROTECTION ACT,19862

1
05Nov, 14
COMPARATIVE STATEMENT ON PROPOSED AMENDMENTS
TO THE CONSUMER PROTECTION ACT,19862
Arrangements of Chapters

Chapter Remarks Title of the Chapter
I Preliminary
II Consumer Protection Councils
III New Chapter Consumer Protection Authority
IV Existing chapter III renamed as
Chapter IV  Consumer Disputes Redressal Agencies
V New Chapter Mediation
VI New Chapter Product Liability
VII Existing chapter IV renamed Miscellaneous3

Annexure-‘A'
DETAILS OF PROPOSALS ALONG WITH JUSTIFICATION AS CONTAINED IN THE
CONSUMER PROTECTION (AMENDMENT) BILL, 2014
Chapter – I  Preliminary
Existing provision Proposed amendment/provision Justification/benefit
2. Definitions.--(1) In this Act,
unless the context otherwise  requires,
2(1)(a0)- new addition “(a0) ‘Advertisement’ means any audio
or visual publicity, representation or pronouncement made by means of
any light, sound, smoke, gas, print, electronic media, internet or website
and includes through any notice, circular, label, wrapper, invoice or
other documents.”
It is necessary to  define the term ‘advertisement’.
2(1)(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 whether such goods suffer from any defect;
2(1)(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 whether such goods suffer
from any defect; No change4
2(1)(aa) "branch office" means-
(i) any establishment described as a branch by the opposite party; or
(ii) any establishment carrying on either the same or substantially the same
activity as that carried on by the head office of the establishment;
2(1)(aa) "branch office" means-
(i) any establishment described as a  branch by the opposite party; or
(ii) any establishment carrying on either the same or substantially the
same activity as that carried on by the  head office of the establishment;
No change

New -2(1)(aaa)
( to be inserted after Section
2(1) (aa))
2(1)(aaa) ‘‘Authority” and “Central
Authority” mean the Central
Consumer Protection Authority.
Necessary to define
these terms in view
of the proposed
setting up of
Consumer Protection
Authority.
2(1)(aaaa)- new addition
( to be inserted after the new
Section 2(1) (aaa))
“(aaaa) ‘Claimant’ in relation to
product liability means any person,
including a class of persons, who
brings a product liability action, and
if such an action is brought through
or on behalf of an estate, the term
includes the claimant’s decedent, or
if such an action is brought through
or on behalf of a minor, the term
includes the claimant’s parent or
guardian.
A new chapter on
product liability is
being added and
hence the term
‘claimant’ is required
to be defined.
2(1)(b) "complainant"
means-
(i) a consumer; or
(ii) any voluntary consumer
association registered under
the Companies Act,1956
(1)of 1956) or under any
other law for the time being
in force; or
(iii) the Central Government
or any State Government; .
(iv) one or more consumers,
where there are numerous
consumers having the same
interest;
2(1)(b) "complainant" means-
(i) a consumer; or
(ii) any voluntary consumer association
registered under the Companies
Act,1956 (1)of 1956) or under any
other law for the time being in force; or
(iii) the Central Government or any
State Government; .
(iv) one or more consumers, where
there are numerous consumers having
the same interest;
(v) in case of death of a consumer, his
legal heir or representative who or
which makes a complaint;
No change5
(v) in case of death of a
consumer, his legal heir or
representative who or which
makes a complaint;
2(1)(c) "complaint" means
any allegation in writing
made by a complainant that-
(i) an unfair trade practice or
a restrictive trade practice
has been adopted by any
trader or service provider ;
(ii) the goods bought by him
or agreed to be bought by
him suffer from one or more
defects;
(iii) the services hired or
availed of or agreed to be
hired or availed of by him]
suffer from deficiency in any
respect;
(iv) a trader or the service
provider, as the case may
be, has charged for the
goods or for the services
mentioned in the complaint, a
price in excess of the price
(a) fixed by or under any law
for the time being in force;
(b) displayed on the goods or
any package containing such
goods;
(c) displayed on the price list
exhibited by him by or under
any law for the time being in
force;
(d) agreed between the
parties;
(v) goods which will be
hazardous to life and safety
when used, are being-offered
for sale to the public,-
(a) in contravention of any
standard relating to safety of
such goods as required to be
complied with, by or under
any law for the time being in
2(1)(c) "complaint" means any
allegation in writing made by a
complainant that-
(i) an unfair trade practice or a
restrictive trade practice has been
adopted by any trader or service
provider ;
(ii) the goods bought by him or agreed
to be bought by him suffer from one or
more
defects;
(iii) the services hired or availed of or
agreed to be hired or availed of by him
suffer from deficiency in any respect;
(iv) a trader or the service provider, as
the case may be, has charged for the
goods or for the services mentioned in
the complaint, a price in excess of the
price
(a) fixed by or under any law for the
time being in force;
(b) displayed on the goods or any
package containing such goods;
(c) displayed on the price list exhibited
by him by or under any law for the time
being in force;
(d) agreed between the parties;
(v) goods which will be hazardous to
life and safety when used, are beingoffered
for sale to the public,-
(a) in contravention of any standard
relating to safety of such goods as
required to be complied with, by or
under any law for the time being in
force;
(b) if the trader could have known with
due diligence that the goods so offered
are unsafe to the public;
No change6
force;
(b) if the trader could have
known with due diligence that
the goods so offered are
unsafe to the public;
2(1)(c)(va)- new addition
after section 2(c )(v)
(va) he has suffered a loss due to an
unfair contract entered into by him.
The provision is
intended to protect
the consumers who
are placed in an
unequal bargaining
capacity. Hence
‘unfair contract’ is
being added in the
list of grounds on
which a consumer
can file a complaint.
2(1)(vi) services which are
hazardous or likely to be
hazardous to life and safety
of the public when used, are
being offered by the service
provider which such person
could have known with due
diligence to be injurious to
life and safety;
with a view to obtaining any
relief provided by or under
this Act;
2(1)(vi) services which are hazardous
or likely to be hazardous to life and
safety of the public when used, are
being offered by the service provider
which such person could have known
with due diligence to be injurious to life
and safety;
with a view to obtaining any relief
provided by or under this Act;
No change
2(1)(d) "consumer"means
any person who,-
(i) buys any goods for a
consideration which has
been paid or promised or
partly paid and partly
promised, or under any
system of deferred payment
and includes any user of
such goods other than the
person who buys such goods
for consideration paid or
promised or partly paid or
partly promised, or under any
2(1)(d) "consumer"means any person
who,-
(i) buys any goods for a consideration
which has been paid or promised or
partly paid and partly promised, or
under any system of deferred payment
and includes any user of such goods
other than the person who buys such
goods for consideration paid or
promised or partly paid or partly
promised, or under any system of
deferred payment when such use is
made with the approval of such
person, but does not include a person
Explanation 2 has
been added to clarify
that e-commerce
transactions are also
covered.7
system of deferred payment
when such use is made with
the approval of such person,
but does not include a
person who obtains such
goods for resale or for any
commercial purpose; or
(ii) hires or avails of any
services for a consideration
which has been paid or
promised or partly paid and
partly promised, or under any
system of deferred payment
and includes any beneficiary
of such services other than
the person who hires or
avails of the services for
consideration paid or
promised, or partly paid and
partly promised, or under any
system of deferred payment,
when such services are
availed of with the approval
of the first mentioned person
(but does not include a
person who avails of such
services of any commercial
purpose;
[Explanation.-For the
purposes of this clause,
"commercial purpose" does
not include use by a
consumer of goods bought
and used by him exclusively
for the purpose of earning his
livelihood, by means of selfemployment;
who obtains such goods for resale or
for any commercial purpose; or
(ii) hires or avails of any services for a
consideration which has been paid or
promised or partly paid and partly
promised, or under any system of
deferred payment and includes any
beneficiary of such services other than
the person who hires or avails of the
services for consideration paid or
promised, or partly paid and partly
promised, or under any system of
deferred payment, when such services
are availed of with the approval of the
first mentioned person (but does not
include a person who avails of such
services of any commercial purpose;
Explanation.1-For the purposes of this
clause, "commercial purpose" does not
include use by a consumer of goods
bought and used by him exclusively for
the purpose of earning his livelihood,
by means of self-employment;
Explanation 2: For the purposes of
this clause buying of goods,
hiring/availing of services is
inclusive of the transaction made
through any mode, inclusive of but
not limited to offline, online through
electronic means, teleshopping,
direct selling etc.
2(1)(e) "consumer dispute"
means a dispute where the
person against whom a
complaint has been made,
denies or disputes the
allegations contained in the
complaint;
2(1)(e) "consumer dispute" means a
dispute where the person against
whom a complaint has been made,
denies or disputes the allegations
contained in the complaint;
No change8
2(1)(ee) – new addition after
section 2(1)(e)
2(1)(ee) “Consumer Fora” means
the National Consumer Forum, State
Consumer Forum and the District
Consumer Forum.
It is proposed to
change the
nomenclature of
State Commission
and National
Commission as
State Forum and
National Forum
respectively.
2(1)(f) "defect" meansany
fault, imperfection or
shortcoming in the quality,
quantity, potency, purity or
standard which is required to
be maintained by or under
any law for the time being in
force or under any contract,
express or implied or as is
claimed by the trader in any
manner whatsoever in
relation to any goods;
2(1)(f) "defect" means any fault,
imperfection or shortcoming in the
quality, quantity, potency, purity or
standard which is required to be
maintained by or under any law for the
time being in force or under any
contract, express or implied or as is
claimed by the trader in any manner
whatsoever in relation to any goods;
No change
2(1)(g) "deficiency" means
any fault, imperfection,
shortcoming or inadequacy in
the quality, nature and
manner of performance
which is required to be
maintained by or under any
law for the time being in force
or has been undertaken to be
performed by a person in
pursuance of a contract or
otherwise in relation to any
service;
2(1)(g) "deficiency" means—
(i) any fault, imperfection, shortcoming
or inadequacy in the quality, nature
and manner of performance which is
required to be maintained by or under
any law for the time being in force or
has been undertaken to be performed
by a person in pursuance of a contract
or otherwise in relation to any service;
The existing
provision has been
made sub-clause (i)
as another subclause
is being
added
2(1)(g)(ii)- new addition after
section 2(1)(g) renamed as
section 2(1)(g)(i)
“(ii) any act of omission or
commission which causes any
damage to the consumer on
account of negligence or
consciously withholding of relevant
This is expected to
cover cases where a
manufacturer or
service provider
deliberately 9
information to the consumer.” withholds
information.
2(1)(ga) – new addition after
section 2(1)(g)
“(ga)“design” means the intended
or known physical and material
characteristics of a product and
shall include any intended or known
formulation or content of the
product and the usual result of the
intended manufacturing or other
process used to produce the
product.”
It is necessary to
define the term in the
context of the
provisions on
product liability being
added.
2(1)(gb) – new addition after
the new section 2(1)(ga)
After (ga) the word ‘direction’ may be
defined by adding (gb) as under:
(gb) “direction” means direction
issued by the Central Government
to the Consumer Fora.’
Necessary to define
the term
2(1)(h) "District Forum"
means a Consumer Disputes
Redressal Forum established
under clause (a) of section 9;
2(1)(h) "District Forum" means a
District Consumer Forum
established under clause (a) of
section 20;
Change of Section
number.
2(1)(ha) – new addition after
section 2(1)(h)
A new clause 2(1)(ha) as under may
be inserted:
‘(ha) “electronic form” shall have
the meaning assigned to it under
clause(r) of sub-section(1) of
section 2 of the Information
Technology Act,2000.’
It is proposed to
allow on-line filing of
cases as well as
make it mandatory
for the consumer
fora to publish the
data regarding filing,
disposal of
complaints etc. on
their respective
website, it is
necessary to define ‘
electronic mode’.10
2(1)(hh)-New addition after
New Sec to 2(1)(ha)
(hh) “electronic intermediary”
includes any person who provides
technologies and/or process to
enable manufacturer, trader and
other persons to engage in
advertising or selling various goods
or services to consumers and shall
further include online marketplaces
and online auction sites.”
Necessary to define
the term.
2(1)(hhh)-New addition after
New Sec to 2(1)(hh)
“electronic record” shall have the
same meaning as ascribed to it in
Information Technology Act, 2000”.
Necessary to define
the term.
2(1)(hhhh)- new addition
after the new section
2(1)(hhh)
(hhhh) ‘express warranty’ means
any material, positive statement,
affirmation of fact, promise, or
description relating to a product,
including any sample or model of a
product.”
Necessary to define
the term in the
context of product
liability being
included.
2(1)(i) "goods" means goods
as defined in the Sale of
Goods Act, 1930; (3 of
1930);
2(1)(i) "goods" means goods as
defined in the Sale of Goods Act,
1930; (3 of 1930);
No change
2(1)(ia)- new addition after
section 2(1)(i)
“(ia) ‘harm’ means:
(1) damage to property other than the
product itself;
(2) personal physical injury, illness, or
death;
(3) mental anguish or emotional
harmattendant to personal physical
injuries or illness or damage to
property; or
(4) any loss of consortium or services
or other loss deriving from any type of
harm described in sub-clauses (1) or
(2) or (3) of this clause;
but shall not include –
(a) harm caused to a product
Necessary to define
the term in view of
the provisions on
product liability being
added.11
itself;
(b) damage to property under a
breach of warranty theory;
(c) commercial or economic loss,
including direct, incidental or
consequential damages.
2(1)(j) "manufacturer" means
a person who-
(i) makes or manufactures
any goods or parts thereof;
or
(ii) does not make or
manufacture any goods but
assembles parts thereof
made or manufactured by
others; or
(iii) puts or causes to be put
his own mark on any goods
made or manufactured by
any other manufacturer ;
2(1)(j) "manufacturer" means a person
who-
(i) makes or manufactures any goods
or parts thereof; or
(ii) does not make or manufacture any
goods but assembles parts thereof
made or manufactured by others; or
(iii) puts or causes to be put his own
mark on any goods made or
manufactured by any other
manufacturer ;
“ (iv) in the course of business
conducted for that purpose, sells,
distributes, leases, installs,
prepares, packages, labels,
markets, repairs, maintains, or
otherwise is involved in placing a
product in the stream of commerce;
but such term does not include:
(1) any person who is engaged in a
business to design, produce, make,
fabricate, construct, or
remanufacture any product (or
component part of a product); or
(2) any product seller not described
in sub-section (1) holding itself out
as a manufacturer to the user of the
product; except that any product
seller who acts primarily as a
wholesaler, distributor, or retailer of
products may be a manufacturer
with respect to a given product to
the extent that such seller designs,
Necessary to add to
broaden the
definition of
manufacturer in the
context of the
provisions on
product liability being
added.12
produces, makes, fabricates,
constructs, or remanufactures the
product before its sale.”
2(1)(ja)- new addition after
section 2(1)(j)
2(1)(ja) ‘mediation’ means the
process by which a mediator
appointed by the National Forum or
a State Forum or a District Forum,
as the case may be, mediates the
dispute between the parties to the
complaint/ appeal by the application
of the provisions of Chapter IV of
the Act, and in particular, by
facilitating discussion between
parties directly or by
communicating with each other
through the mediator, by assisting
parties in identifying issues,
reducing misunderstandings,
clarifying priorities, exploring areas
of compromise, generating options
in an attempt to solve the dispute
and emphasizing that it is the
parties’ own responsibility for
making decisions which affect
them.
Necessary to define
the term ‘mediation’
as mediation is being
proposed as an
Alternate Disputes
Redressal
mechanism. This will
facilitate speedy and
inexpensive justice
to the consumers.
2(1)(jb)- new addition after
new section 2(1)(ja)
2(1)(Jb) “mediator” is a neutral
guide who helps the parties to find
their own solution to the dispute
Necessary to define
the term as a
Mediator will be
involved in the
process of mediation
being proposed.
2(1)(jc)- new addition after
the new section 2(1)(jb)
‘(jc) “material fact” means any
specific characteristic or quality of
the product, but does not include a
general opinion about, or praise of,
the product or its quality.
Necessary to define
the terms in the
context of product
liability.
(jj) "member" includes the
President and a member of
the National Commission or
(jj) "member" includes the President
and a member of the National Forum
or a State Forum or a District Forum,
No change13
a State Commission or a
District Forum, as the case
may be;
as the case may be;
2(1)(k) "National
Commission" means the
National Consumer Disputes
Redressal Commission
established under clause (c)
of section 9;
(k) "National Forum" means the
National Consumer Forum
established under clause (c) of
section 20;
The change is
required in view of
the proposed change
in nomenclature.
2(1)(m) "person" includes,
(i) a firm whether registered
or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of
persons whether registered
under the Societies
Registration Act, 1860 (21 of
1860) or not;
To be added after existing subclause
(iv) as
‘(v) any individual, corporation,
company, association, firm,
partnership, society, joint stock
company, or any other entity
including any government entity or
unincorporated association of
persons.’
Definition of person
needs further
expansion in the
context of product
liability being added.
2(1)(ma) - new addition
after section 2(1)(m)
“’(ma) “political party” shall have
the meaning assigned to it under
clause (f) of sub-section 1 of section
2 of Representation of the Peoples
Act, 1951.”
As it is proposed to
debar persons
affiliated with political
parties from
appointment as
President and
Members in the
Consumer Fora, it is
necessary to define
the term ‘political
party’.
2(1)(mb)- new addition
after the new section
2(1)(ma)
‘(mb) ‘product’ means any object,
substance, mixture, or raw material
in a gaseous, liquid, or solid state,
possessing intrinsic value which is
capable of delivery either as an
assembled whole or as a
component part and is produced for
Necessary to define
the terms in the
context of product
liability.14
introduction to trade or commerce;
but such term does not include
human tissue, blood and blood
products, or organs.
2(1)(mc)- new addition after
new section 2(1)(mb)
“(mc) ‘product liability’ means the
responsibility of a manufacturer or
vendor of goods to compensate for
injury caused by defective
merchandise that it has provided for
sale;
Necessary to define
the terms.
2(1)(md)- new addition
after new section 2(1)(mc)
‘ (md) “product seller” means:
(1) a manufacturer; or
(2) a person who, in the course of
business conducted for that
purpose, sells, distributes, leases,
installs, prepares, packages, labels,
markets, repairs, maintains, or
otherwise is involved in placing a
product in the stream of commerce;
but such term does not include:
(a) a seller of real property, unless
that person is engaged in the sale of
manufactured housing or in the
mass production of dwellings;
(b) a provider of professional
services in any case in which the
sale or use of a product is incidental
to the transaction and the essence
of the transaction is the furnishing
of judgment, skill, or services; or
any person who:
(i) acts in only a financial capacity
with respect to the sale of the
product;
(ii) is not a manufacturer,
wholesaler, distributor, or retailer;
Necessary to define
the terms in the
context of product
liability.15
and
(iii) leases a product, without having
a reasonable opportunity to inspect
and discover defects in the product,
under a lease arrangement in which
the selection, possession,
maintenance, and operation of the
product are controlled by a person
other than the lessor.
2(1)(n) “prescribed’ means
prescribed by rules made by
the State Government, or as
the case may be, by the
Central Government under
this Act;
2(1)(n) “prescribed’ means prescribed
by rules made by the State
Government, or as the case may be,
by the Central Government under this
Act;
No change
2(1)(nn) "regulation” means
the regulations made by the
National Commission under
this Act;)
(nn) "regulation” means the
regulations made by the Central
Government under this Act;
Regulation making
power, now with the
National
Commission, is
proposed to be
conferred on the
Central Government
along with rule
making powers
conferred on it under
Section 30 of the
Act. These
regulations,
however, shall be
made by the Central
Government in
consultation with the
National
Commission
wherever necessary.
2(1)(nnn) “restrictive trade
practice” means a trade
practice which tends to bring
about manipulation of price
or its conditions of delivery or
2(1)(nnn) “restrictive trade practice”
means a trade practice which tends to
bring about manipulation of price or its
conditions of delivery or to affect flow
of supplies in the market relating to
No change16
to affect flow of supplies in
the market relating to goods
or services in such a manner
as to impose on the
consumers unjustified costs
or restrictions and shall
include;
(a) delay beyond the period
agreed to by a trader in
supply of such goods or in
providing the services which
has led or is likely to lead to
rise in the price;
(b) any trade practice which
requires a consumer to buy,
hire or avail of any goods or,
as the case may be, services
as condition precedent to
buying, hiring or availing of
other goods or
services;
goods or services in such a manner as
to impose on the consumers
unjustified costs or restrictions and
shall include;
(a) delay beyond the period agreed to
by a trader in supply of such goods or
in providing the services which has led
or is likely to lead to rise in the price;
(b) any trade practice which requires a
consumer to buy, hire or avail of any
goods or, as the case may be,
services as condition precedent to
buying, hiring or availing of other
goods or services;
2(1)(nnnn)- new addition
after section 2(1)(nnn)
‘(nnnn) “regional office” means the
regional office of the Central
Consumer Protection Authority.’
Necessary to define
the term as the
proposed Central
Consumer Protection
Authority will have
regional offices.
Consumers will be
able to approach the
Authority through the
regional Offices.
2(1)(o) "service" means
service of any description
which is made available to
potential users and includes
the provision of facilities in
connection with banking,
financing, insurance,
transport, processing, supply
of electrical or other energy,
telecom , board or lodging or
both, housing construction,
entertainment, amusement or
2(1)(o) "service" means service of any
description which is made available to
potential users and includes the
provision of facilities in connection with
banking, financing, insurance,
transport, processing, supply of
electrical or other energy, telecom ,
board or lodging or both, housing
construction, entertainment,
amusement or the purveying of news
or other information, but does not
include the rendering of any service
Telecom sector is
proposed to be
added under service.17
the purveying of news or
other information, but does
not include the rendering of
any service free of charge or
under a contract of personal
service;
free of charge or under a contract of
personal service;
2(1)(oa)- new addition after
section 2(1)(o)
2(1)(oa) ‘settlement’ means a final
settlement by way of compromise
before a mediator, which shall be
deemed to be a settlement before
National Forum or a State Forum or
a District Forum, as the case may
be.
Necessary to define
the term in the
context of mediation.
2(1)(oo) “spurious goods &
services” mean such goods
and services which are
claimed to be genuine but
they are actually not so;
2(1)(oo) “spurious goods & services”
mean such goods and services which
are claimed to be genuine but they are
actually not so;
No change
2(1)(p) "State Commission"
means a Consumer Disputes
Redressal Commission
established in a State under
clause (b) of section 9;
(p) "State Forum" means a State
Consumer Forum established in a
State under clause (b) of section 20;
This is necessitated
due to the proposed
change in
nomenclature.
2(1)(q) "trader" in relation to
any goods means a person
who sells or distributes any
goods for sale and includes
the manufacturer thereof,
and where such goods are
sold or distributed in package
form, includes the packer
thereof;
2(1)(q) "trader" in relation to any goods
means a person who sells or
distributes any goods for sale and
includes the manufacturer thereof, and
where such goods are sold or
distributed in package form, includes
the packer thereof;
No change
2(1)(r) "unfair trade
practice" means a trade
practice which, for the
purpose of promoting the
sale, use or supply of any
goods or for the provision of
any service, adopts any
unfair method or unfair or
deceptive practice including
any of the following
2(1)(r) "unfair trade practice" means
a trade practice which, for the purpose
of promoting the sale, use or supply of
any goods or for the provision of any
service, adopts any unfair method or
unfair or deceptive practice including
any of the following practices, namely:-
(1) the practice of making any
statement, whether orally or in writing
The words ‘including
by way of electronic 18
practices, namely:-
(1) the practice of making
any statement, whether orally
or in writing or by visible
representation which,
(i) falsely represents that the
goods are of a particular
standard, quality, quantity,
grade, composition, style or
model;
(ii) falsely represents that the
services are of a particular
standard, quality or grade;
(jii) falsely represents any rebuilt,
second-hand,
renovated, reconditioned or
old goods as new goods;
(iv) represents that the goods
or services have
sponsorship, approval,
performance, characteristics,
accessories, uses or benefits
which such goods or services
do not have;
(v) represents that the seller
or the supplier has a
sponsorship or approval or
affiliation which such seller or
supplier does not have;
(vi)makes a false or
misleading representation
concerning the need for, or
the usefulness of, any goods
or services;
(vii) gives to the public any
warranty or guarantee of the
performance, efficacy or
length of life of a product or
of any goods that is not
based on an adequate or
proper test thereof: Provided
that where a defence is
raised to the effect that such
warranty or guarantee is
based on adequate or proper
test, the burden of proof of
such defence shall lie on the
or by visible representation including
by way of electronic record which,
(i) falsely represents that the goods
are of a particular standard, quality,
quantity, grade, composition, style or
model;
(ii) falsely represents that the services
are of a particular standard, quality or
grade;
(iii) falsely represents any re-built,
second-hand, renovated,
reconditioned or old goods as new
goods;
(iv) represents that the goods or
services have sponsorship, approval,
performance, characteristics,
accessories, uses or benefits which
such goods or services do not have;
(v) represents that the seller or the
supplier has a sponsorship or approval
or affiliation which such seller or
supplier does not have;
(vi)makes a false or misleading
representation concerning the need
for, or the usefulness of, any goods or
services;
(vii) gives to the public any warranty or
guarantee of the performance, efficacy
or length of life of a product or of any
goods that is not based on an
adequate or proper test thereof:
Provided that where a defence is
raised to the effect that such warranty
or guarantee is based on adequate or
proper test, the burden of proof of such
defence shall lie on the person raising
such defence;
(viii) makes to the public a
representation in a form that purports
to be-
(i) a warranty or guarantee of a
product or of any goods or services; or
(ii) a promise to replace, maintain or
repair an article or any part thereof or
to repeat or continue a service until it
has achieved a specified result, if such
record’ have been
added to cover ecommerce.19
person raising such defence;
(viii) makes to the public a
representation in a form that
purports to be
-
(i) a warranty or guarantee of
a product or of any goods or
services; or
(ii) a promise to replace,
maintain or repair an article
or any part thereof or to
repeat or continue a service
until it has achieved a
specified result, if such
purported warranty or
guarantee or promise is
materially misleading or if
there is no reasonable
prospect that such warranty,
guarantee or promise will be
carried out;
(ix) materially misleads the
public concerning the price at
which a product or like
products or goods or
services, have been or 'are,
ordinarily sold or provided,
and, for this purpose, a
representation as to price
shall be deemed to refer to
the price at which the product
or goods or services has or
have been sold by sellers or
provided by suppliers
generally in the relevant
market unless it is clearly
specified to be .the price at
which the product has been
sold or services have been
provided by the person by
whom or on whose behalf the
representation is made;
(x) gives false or misleading
facts disparaging the goods,
services or trade of another
person. .Explanation.
-For the
purposes of clause (1), a
statement that is
purported warranty or guarantee or
promise is materially misleading or if
there is no reasonable prospect that
such warranty, guarantee or promise
will be carried out;
(ix) materially misleads the public
concerning the price at which a
product or like products or goods or
services, have been or 'are, ordinarily
sold or provided, and, for this purpose,
a representation as to price shall be
deemed to refer to the price at which
the product or goods or services has
or have been sold by sellers or
provided by suppliers generally in the
relevant market unless it is clearly
specified to be .the price at which the
product has been sold or services
have been provided by the person by
whom or on whose behalf the
representation is made;
(x) gives false or misleading facts
disparaging the goods, services or
trade of another person.
Explanation.
-
For the purposes of clause (1), a
statement that is
-
(a) expressed on an article offered or
displayed for sale, or on its wrapper or
container; or
(b) expressed on anything attached to,
inserted in, or accompanying, an
article offered or displayed for sale, or
on anything on which the article is
mounted for display or sale; or
(c) contained in or on anything that is
sold, sent, delivered, transmitted or in
any other manner whatsoever made
available to a member of the public,
shall be deemed to be a statement
made to the public by, and only by, the
person who had caused the statement
to be so expressed, made or
contained; 20
(a) expressed on an article
offered or displayed for sale,
or on its wrapper or
container; or
(b) expressed on anything
attached to, inserted in, or
accompanying, an article
offered or displayed for sale,
or on anything on which the
article is mounted for display
or sale; or
(c) contained in or on
anything that is sold, sent,
delivered, transmitted or in
any other manner
whatsoever made available
to a member of the public,
shall be deemed to be a
statement made to the public
by, and only by, the person
who had caused the
statement to be so
expressed, made or
contained;
(2) permits the publication of
any advertisement whether in
any newspaper or otherwise,
for the sale or supply at a
bargain price, of goods or
services that are not
intended to be offered for
sale or supply at the bargain
price, or for a period that is,
and in quantities that are,
reasonable, having regard to
the nature of the market in
which the business is carried
on, the nature and size of
business, and the nature of
the advertisement.
Explanation.
-For the purpose
of clause (2), "bargaining
price" means
(a) a price that is stated in
any advertisement to be a
bargain price, by reference to
an ordinary price or
(2) permits the publication of any
advertisement whether in any
newspaper or otherwise including by
way of electronic rec
ord, for the sale
or supply at a bargain price, of goods
or services that are not intended to be
offered for sale or supply at the
bargain price, or for a period that is,
and in quantities that are, reasonable,
having regard to the nature of the
market in which the business is carried
on, the nature and size of business,
and the nature of the advertisement.
Explanation.
-For the purpose of clause
(2), "bargaining price" means
(a) a price that is stated in any
advertisement to be a bargain price, by
reference to an ordinary price or
otherwise, or
(b) a price that a person who reads,
hears or sees the advertisement,
would reasonably understand to be a
bargain price having regard to the
prices at which the product advertised
or like products are ordinarily sold;
(3) permits
-
(a) the offering of gifts, prizes or other
items with the intention of not providing
them as offered or creating impression
that something is being given or
offered free of charge when it is fully or
partly covered by the amount charged
,in the transaction as a whole; the
conduct of any contest, lottery, game
of chance or skill, for the purpose of
promoting, directly or indirectly, the
sale, use or supply of any product or
any business interest;
(3A) withholding from the participants
of any scheme offering gifts, prices or
other items free of charge on its
closure the information about final
results of the scheme. 21
otherwise, or
(b) a price that a person who
reads, hears or sees the
advertisement, would
reasonably understand to be
a bargain price having regard
to the prices at which the
product advertised or like
products are ordinarily sold;
(3) permits-
(a) the offering of gifts, prizes
or other items with the
intention of not providing
them as offered or creating
impression that something is
being given or offered free of
charge when it is fully or
partly covered by the amount
charged ,in the transaction
as a whole; the conduct of
any contest, lottery, game of
chance or skill, for the
purpose of promoting,
directly or indirectly, the sale,
use or supply of any product
or any business interest;
(3A) withholding from the
participants of any scheme
offering gifts, prices or other
items free of charge on its
closure the information about
final results of the scheme.
Explanation: for the purpose
of this sub clause, the
participants of a scheme
shall be deemed to have
been informed of the final
results of the scheme where
such results are within a
reasonable time published,
prominently in the same
newspaper in which the
scheme was originally
advertised;
Explanation.- for the purpose of this
sub clause, the participants of a
scheme shall be deemed to have been
informed of the final results of the
scheme where such results are within
a reasonable time published,
prominently in the same newspaper in
which the scheme was originally
advertised;
(4) permits the sale or supply of goods
intended to be used, or are of a kind
likely to be used, by consumers,
knowing or having reason to believe
that the goods do not comply with the
standards prescribed by competent
authority relating to performance,
composition, contents, design,
constructions, finishing or packaging
as are necessary to prevent or reduce
the risk of injury to the person using
the goods;
(5) permits the hoarding or destruction
of goods, or refuses to sell the goods
or to make them available for sale or to
provide any service, if such hoarding
or destruction or refusal raises or tends
to raise or is intended to raise, the cost
of those or other similar goods or
services;
(6) manufacture of spurious goods or
offering such goods for sale or
adopting deceptive practices in the
provision of services;22
(4) permits the sale or supply
of goods intended to be
used, or are of a kind likely to
be used, by consumers,
knowing or having reason to
believe that the goods do not
comply with the standards
prescribed by competent
authority relating to
performance, composition,
contents, design,
constructions, finishing or
packaging as are necessary
to prevent or reduce the risk
of injury to the person using
the goods;
(5) permits the hoarding or
destruction of goods, or
refuses to sell the goods or
to make them available for
sale or to provide any
service, if such hoarding or
destruction or refusal raises
or tends to raise or is
intended to raise, the cost of
those or other similar goods
or services.
(6) Manufacture of spurious
goods or offering such goods
for sale or adopting
deceptive practices in the
provision of services;
2(1)(r)(7)- new addition after
section 2(1)(r)(6)
“(7) after selling such goods or
rendering of such services, fails to
issue bill or cash memo or receipt
for the goods sold or service
rendered or even if so issued
without mentioning the name of the
purchaser”.
Since the bill/ cash
memo being an
important instrument
in the hands of a
consumer to prove
that he is a bonafide
consumer, it is felt
necessary to specify
refusal of a bill as an
unfair trade practice
to protect the 23
consumers.
2(1)(r)(8) – new addition after
new section 2(1)(r)(7)
‘(8) after selling such goods and
rendering of such services, refuses
to take back or withdraw the goods
or withdraw or discontinue the
service and refuses to refund the
consideration thereof , if paid,
within a period of thirty days after
the receipt of goods or availing of
services it is so requested by the
consumer’.
This provision would
enable the consumer
to file the complaint
against those sellers
who sell their
products and
services through ecommerce
and
telemarketing, etc.
who do not take
back the goods or
services if found
defective by the
consumers on its
receipt in as much
as the products and
services are not
seen / inspected or
examined by them
and simply
purchased through
advertisements.
2(1)(r)(9)- new addition after
new section 2(1)(r)(8)
‘(9) discloses to any other person
any personal information given in
confidence by the consumer’
provided that disclosure of personal
information under provisions of any
law in force or in public interest
shall not be construed as a
deficiency of service’.
The new provision in
sub-section 9 would
protect consumers
against the wide
spread menace of
piracy of personal
data given in
confidence with by
the consumer, which
compromises the
position of the
consumer and for
the reason that the
banks are under
legal obligations
under various Acts 24
like Credit
Information
Companies
(Regulation) Act,
2005, Prevention of
Money Laundering
Act, 2002 to share
information with
certain agencies.
New proviso added after
section 2(1)(r)
“Provided that an electronic
intermediary shall not be said to
have engaged in ‘unfair trade
practice’ if it facilitates, and to the
extent it facilitates, the
manufacturer, trader or other
persons who uses such electronic
intermediary for advertising, selling
or providing of goods or services.”
2(1)(s)- new addition after
section 2(1)(r)
(s) ‘unfair contract’ means a
contract which contains any one or
more of the following types of
clauses:
(i) requires manifestly excessive
security deposits to be given by a
party to the contract for the
performance of contractual
obligations; or
(ii) impose any penalty on a party
to the contract for the breach
thereof which is wholly
disproportionate to the loss
occurred due to such breach to the
other party to the contract; or
(iii) refuses to accept early
repayment of debts on payment of
applicable penalty;
(iv) entitles a party to the contract
to terminate without reasonable
cause the contract unilaterally.
(v) prohibiting contract relating to
terms permitting or having the
This provision is
intended to protect
consumers who are
placed in an unequal
bargaining capacity
by making ‘unfair
contract’ which is
also one of the
grounds for filing
consumer complaint
in the consumer
Fora.25
effect of permitting one party to
assign the contract to the detriment
of the other party without that other
party’s consent.
2(1)(t)- new addition after
new section 2(1)(s)
‘(t) “unsafe” means goods, services
and practices that could cause
physical or mental injury or any loss
or damage to any property movable
or immovable.
The term unsafe was
not defined. Hence
the requirement for a
definition.26
CHAPTER –II
CONSUMER PROTECTION COUNCILS
Existing provision Proposed
amendment/p
rovision
Justification/b
enefit
4.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 the Consumer Affairs in the Central
Government, who shall be its Chairman, and
(b) such number of other official or non-official members
representing such interests as may be prescribed.
No Change
5: 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.
No change.
6. 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 rights to be informed about the quality, quantity, potency,
purity, standard and price of goods or services, as the case
No change 27
may be, so as to protect the consumer against unfair trade
practices;
(c) the right to be assured, wherever possible, access to a
variety of goods and services at competitive prices;
(d) the right to be heard and to be assured that consumer’s
interests will receive due consideration at appropriate fora;
(e) the right to seek redressal against unfair trade practices or
restrictive trade practices or unscrupulous exploitation of
consumers; and
(f) the right to consumer education.
7. 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 consumer 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 Government.
(c) such number of other official or non-official members, not
exceeding ten, as may be nominated by the Central
Government.]
(3) The State Council shall meet as and when necessary but
not less than two meetings shall be held every year.
(4) The State 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 by the State Government.
No change
8. Objects of the State Council: The objects of every State
Council shall be to promote and protect within the State the rights
No change28
of the consumers laid down in clauses (a) to (f) of Section 6.
8A. The District Consumer Protection Council:
(1) The State Government shall establish for every district, by
notification, a council to be known as the District Consumer
Protection Council with effect from such date as it may specify in
such notification.
(2) The District Consumer Protection Council (hereinafter
referred to as the District Council) shall consist of the following
members, namely :-
(a) The Collector of the district (by whatever name called), who
shall be its Chairman; and
(b) Such number of other official and non-official members
representing such interests as may be prescribed by the State
Government.
(3) The District Council shall meet as and when necessary but
not less than two meetings shall be held every year.
(4) The District Council shall meet at such time and place within
the district as the Chairman may think fit and shall observe such
procedure in regard to the transaction of its business as may be
prescribed by the State Government.
No change
8B. 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.
No change29
CHAPTER –III
CONSUMER PROTECTION AUTHORITY
(a new chapter being added after the existing Chapter- II)
Existing
provision
Proposed amendment/provision Justification/benefit
9.Establishment of Central Consumer Protection
Authority.-
(1) The Central Government shall, by notification,
establish with effect from such date as it may specify in such
notification, an executive agency to be known as the Central
Consumer Protection Authority (hereinafter referred to as the
Authority) to promote, protect and enforce the rights of
consumers enshrined in the Act.
(a) The Central Authority shall be headed by a
Commissioner. The post of Commissioner shall be of the
level of Secretary in the Government of India.
(b) The Commissioner shall be appointed by the Central
Government from among persons, who are not below the
age of forty five years and who are holding or have held a
post equivalent to the post of Secretary to the Government of
India, in the Central Government or in any State
Government or in any Central or State Public Sector
Undertaking, Autonomous Bodies, Universities etc. and also
persons in private sector or persons not in formal
employment in any organization or professionals who are
persons of eminence in public/social life, who shall be
persons of ability, integrity and standing having special
knowledge of and such professional experience of not less
than fifteen years in the areas related to the consumers’
rights and welfare, consumers’ policy with international
exposure, law, economics, business, commerce, industry
etc.
(c) There shall be five Deputy Commissioners under the
Commissioner to assist him in the functioning of the Central
Authority.
It is being proposed to
establish an Executive
Agency, namely “Central
Consumer Protection
Authority’. This will
enable prevention of
exploitation of
consumers and violation
of their rights and to
promote, protect and
enforce the rights of
consumers.30
(d) The Deputy Commissioners shall be appointed from
among the persons who are not below the age of forty years
and who are holding or have held a post equivalent to the
post of Joint Secretary to the Government of India, in the
Central Government or in any State Government or in any
Central or State Public Sector Undertaking, Autonomous
Bodies, Universities etc. and also persons in private sector or
persons not in formal employment in any organisation or
professionals who are persons of eminence in public/ social
life with specialization or having adequate and expert
knowledge with minimum experience of ten years in any of
the areas such as consumers rights and welfare, consumer
policy, law, medicine, food safety, health, engineering,
product safety, commerce, economics, public affairs or
administration.
(2) Each of the Deputy Commissioners shall head any one of
the following five Bureaus in which she/ he has experience
and expert knowledge:
(a) Safety in goods and services
(b) Unfair trade practices, including misleading
advertisements
(c) Quality assurance and standards
(d) Prevention of consumer detriment and unfair terms in
consumer contracts and
(e) Enforcement of consumer protection laws
(2) The Commissioner shall have the powers of general
superintendence, direction and control in respect of all
administrative matters of the Authority.
(3) The Commissioner and the five Deputy Commissioners
shall be appointed by the Central Government on the
recommendation of a Selection Committee and shall hold
office for a period of five years or upto the age of sixty five
years, whichever is earlier. The Selection Committee shall
consist of :
(a) Secretary of the Department of Consumer Affairs in
the Government of India -Member31
(b) Secretary, Ministry of Law, Department of Legal Affairs
in the Government of India -- Member
(c) Secretary, Ministry of Home Affairs, Government of
India -- Member
(3) The Authority may appoint such officers, experts,
professionals, as it may deem necessary for the efficient
performance of its functions.
10. Place of work and office hours. –
(1) The office of the Central Consumer Protection Authority
shall be located in Delhi and the office hours of the Central
Authority shall be the same as the office hours of the Central
Government.
(2) The full Authority comprising the Commissioner and the
five Deputy Commissioners shall sit once in a week to decide
on :
a) such matters in which the area of expertise of a
Bureau overlaps the area of expertise of another
bureau and both the Bureaus have or are likely to
have different views or perception of the matter;
b) the appeals filed before the Central Authority on
the orders of a Deputy Commissioner at the
headquarters or on the orders of a Deputy
Commissioner at any of the Regional Offices of
the Central Authority.
Necessary to specify.
11. The objects of the Central Consumer Protection
Authority. The objects of the Central Authority shall be
(1) to protect and enforce the rights of consumers such as
the right to be protected against the marketing of goods /
products and services which are unsafe or hazardous to life
and property; the rights to be informed about the quality,
quantity, potency, purity, standard and price of goods or
services, as the case may be;
(2) to prevent unfair trade practices as defined under section
2(1)( r).
(3) to ensure that no advertisement is made of any goods or
services which is misleading or deceiving or contravenes the
provisions of this Act and rules and regulations made under
It is necessary to lay
down the objects of the
Central Consumer
Protection Authority for
furtherance of the aims
and objectives sought to
be achieved in the Act.32
it.
(4) to ensure that no person engages himself in unfair trade
practices or takes part in the publication of any advertisement
which is false or misleading.
Section 12: Functions and powers of the Authority. -
(1) Functions of the Authority:
a) Inquire suo-motu or on a complaint or a direction from
the Government or the Parliament or the judiciary, violations
of consumer rights enumerated in the Consumer Protection
Act.
b) Intervene in any proceeding in any allegation of
violation of consumer rights before a court, with the
permission of such a court.
c) Review factors that inhibit the enjoyment of consumer
rights and recommend appropriate remedial measures
d) Study existing laws and their enforcement and suggest
changes to make the same more efficacious
e) Review safeguards provided under the Constitution or
any law for the time being in force for the protection of
consumers and recommend measures for their effective
implementation
f) Study international practices, laws, covenants on
consumer rights and make recommendations for their
adoption wherever necessary, to ensure effective
enforcement of consumer rights
g) Undertake and promote research in the field of
consumer rights
h) Spread and promote awareness about the rights of
consumers and consumers’ literacy
i) Encourage efforts of non-governmental organizations
and other institutions working in the field of consumer rights
The functions and
powers of the Authority
are required to be
specified to function
effectively.33
j) Cooperate and work with consumer protection
agencies worldwide and take part in international
conferences and seminars in this area
k) Monitor practices inimical to consumer interest and
take adequate measures to prevent them
(2) Powers of the Authority:
a) Conduct investigations, either suo-motu or on a
complaint, into violations of consumer rights enumerated in
the Consumer Protection Act, 1986, conduct search and
seizure of documents/records/articles and other forms of
evidence, summon delinquent manufacturers, advertisers
and service providers and to record oral evidence and direct
production of documents and records, all of the foregoing
powers to be exercised in accordance with the rules issued
under this Act.
b) Order, on the basis of such investigations, recall of
goods found to be unsafe requiring use of unique and
universal goods identifiers(GTIN’s) or withdrawal of services
found to be unsafe or hazardous and order reimbursement of
the price of the goods (or services) so recalled, to purchasers
of such goods or services.
c) Issue safety notices and alerting consumers against
unsafe goods/services.
d) Direct, on the basis of its investigations, for
discontinuation of practices found to be unfair and prejudicial
to consumer interest.
e) Order withdrawal of advertisements found to be false
or misleading and direct issuance of corrective
advertisements, wherever necessary.
f) Declare as null and void, terms in consumer contracts
found to be unfair to the consumer.
g) Accept an undertaking from those who may have
breached the law, that they would desist from such conduct
in future and enforce the undertaking34
h) File class action suits at National Forum. There shall
be an exclusive Bench in the National Forum to hear class
action suits filed by the Central Authority for speedy
adjudication of the matter.
i) Draw up code of conduct or fair business practices
and direct the business to comply with the same.
j) Take criminal matters to the court of competent
jurisdiction.
k) Impose administrative penalty on those found violating
any of the provisions of such laws which seek to protect the
interest of the Consumers e.g. the Consumer Protection Act,
1986, the Legal Metrology Act, 2009 etc. The following
factors inter-alia will be taken into account by the Central
Authority in determining the amount of administrative
monetary penalty:
(1) the impact of the violation with respect to population
and area affected,
(2) the frequency and duration of the violation,
(3) the vulnerability of the class of persons likely to be
adversely affected by the violation, and
(4) the gross revenue from sales effected by the conduct.
(l) Take cognizance of misleading advertisements
(m) Enforce injunctions against conduct of the industry for
exploiting consumers’ interest.
(n) Advise Ministries and Departments on Consumer Welfare
measures
(3)Powers of the Authority to inquire into unfair trade
practices and misleading advertisement.-
(1) The Authority shall inquire into unfair trade practices and
any false or misleading advertisement which may come
before it for inquiry or upon its own information or knowledge
and, if after such inquiry, it is of opinion that the trade practice
is unfair or the advertisement is prejudicial to the public
interest, or to the interest of any consumer or consumers in
general or the advertisement is in contravention of the rights 35
of the consumers, it may, by order direct that -
(a) the trade practice or the advertisement shall be
discontinued or shall not be repeated;
(b) the trace practice or the advertisement shall stand
modified in such manner as may be specified in the order;
(2) The Authority may, instead of making any order under
this section, permit any party to continue the trade practice or
the advertisement, if it so applies and takes such steps within
the time specified by the Authority as may be necessary to
ensure that the trade practice or the advertisement is no
longer prejudicial to the public interest or to the interest of
any consumer or consumers in general
(3) Whoever contravenes the restrictions on unfair trade
practice or misleading advisements as provided in section 11
and
(4) Whoever contravenes any of the provisions of this Act or
the rules made thereunder repeatedly shall be punishable
with such fine as decided to be appropriate by the Authority
and wherever considered appropriate the violation may be
reported to local police/ law and order authority for criminal
prosecution against such offenders.
13. Regional Offices.- (1) The Authority may have such
number of regional offices and the location of such offices as
may be notified by the Central Government from time to time
for the purpose of suo-motu investigations into anti-consumer
conduct and also to investigate into the complaint of a
consumer and take appropriate action in accordance with
powers conferred on the Authority under Section 12 of this
Act.
(2) Each regional office shall be headed by an officer of the
level of Deputy Commissioner. The Deputy Commissioner at
the regional office shall be competent to exercise the powers
of the Central Authority in the States covered in the region.
He will be competent to file consumer suits in the District
Consumer Fora and State Consumer Fora within his region.
(3) At district level the powers of the Central Authority
shall be exercised by the District Collector/Magistrate
concerned who can suo-motu or otherwise investigate into a
matter for protection as well as enforcement of the rights of
the consumers and each District Collector/Magistrate shall
submit a monthly report of action taken to the Deputy
Commissioner of the region concerned.
For effective discharge
of the functions and
powers being entrusted
upon the Central
Authority there needs to
be regional offices of the
Authority in the country.
The consumers will be
able to approach the
Authority through their
nearest regional offices.
14. Pay and allowances of the Commissioner and Deputy Necessary to specify the 36
Commissioners.- (1) The pay and allowances of the
Commissioner shall be of the level of Secretary to the
Government of India and that of the Deputy Commissioners
shall be of the level of Joint Secretary in the Central
Government.
(2) All the expenditure of the Authority shall be met from the
Consolidated Fund of India.
salary and allowances of
the Commissioner and
Deputy Commissioner.
15. Removal of the Commissioner and Deputy
Commissioners.-
(1)The Central Government may remove the Commissioner
and any Deputy Commissioner, who -
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence which, in the opinion of
the Central Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as
the Commissioner or Deputy Commissioner; or
(d) has acquired such financial or other interest as is likely to
affect prejudicially his functions as the Commissioner or a
Deputy Commissioner; or
(e) has so abused his position as to render his continuance
in office prejudicial to the public interest ;or
(f) remain absent in three consecutive sittings except for
reasons beyond his control.
(g) serious allegations of any commission or omission
amounting to corruption.
(2) Notwithstanding anything contained in sub-section (1) of
section 15, the Commissioner and any Deputy Commissioner
shall not be removed from his office except by an order made
by the Central Government on the grounds specified in
clauses (d), (e), (f) and (g) of above sub-section and after an
inquiry held by a Committee comprising President, National
Consumer Disputes Redressal Forum and the Additional
Secretary, Consumer Affairs as per the prescribed
Grounds of removal are
required to be
prescribed to avoid
arbitrariness.37
procedure.
16. Filing of Complaint and its Disposal.-
(1) A consumer may file his complaint in writing or through
email, as the case may be, either to the District Collector
concerned, or to the Deputy Commissioner in the Regional
Office concerned or to the Central Authority with an
undertaking that he/she/it/ has made her complaint to only
one of the aforesaid offices.
(2) In the Central Authority, the Deputy Commissioner
concerned with the subject matter of the complaint shall look
into the complaint and take appropriate action in accordance
with the powers conferred on the Authority under Section 12.
(3) All the fines imposed and recovered by the regional
offices and the Central Authority at the head office shall be
credited to the Consumer Welfare Fund of the Central
Government. All the fines imposed and recovered by the
District Collector shall be credited to the Consumer Welfare
Fund of the State Government concerned.
(4) A complaint filed by a consumer shall be registered by
the office of the District Collector or the Regional Office or
Central Authority, as the case may be, the same day when a
complaint is received during office hours and an
acknowledgement shall be sent to the consumer within a
week.
(5) The complaint shall be disposed of within a month but
if any complaint cannot be disposed within a month for
factors beyond the control of the authority concerned, such
authority must seek extension of time with adequate
convincing justifications before expiry of one month from the
date of registration of the complaint in which case the
competent authority shall not extend time for disposal of the
complaint for more than thirty days. No extension can be
granted beyond this period for disposal.
(6) The competent authority to grant extension of time for
disposal of complaint is the Deputy Commissioner at the
Regional Office in case of District Collector and the full
In the new system of
Central Consumer
Protection Authority, a
consumer is required to
file complaint to the
designated officer and
therefore, it is necessary
to lay down the
procedure for filing of
complaint by a
consumer. This will lead
to speedy disposal of
consumer complaints.38
Authority in case of the a request by a Deputy Commissioner
at the Regional Office or Head Office.
(7) Non-disposal of a complaint within the extended
period will be treated as inefficiency and lack of performance
on the part of the concerned officials/ officers in charge and
will be entered in their annual performance report and for
sustained non-performance an officer/ official may be
removed from office.
Keeping speedy
disposal of consumer
complaints in view,
action has been
proposed against the
officers concerned in the
case of delay.
17. Appeal.-
(a) Appeal against the decision of the District Collector/
District Magistrate shall lie to the Deputy Commissioner at
the regional office concerned,
(b) Appeal against the decision of the Deputy
Commissioner of any regional office or at the Head Office of
the Central Authority shall lie to the Commissioner at the
Central Authority.
It is necessary to provide
for appellant authorities.
18. Non-Compliance with the Orders of the Central
Authority.-
(1)The Authority may cause an inquiry to be made into
compliance of its orders or directions made in exercise of its
powers under the Act.
(2) If any person, without reasonable cause, fails to comply
with the orders or directions of the Authority issued under
section 12 of the Act, he shall be punishable with a fine
which may extend to rupees ten thousand for each day
during which such non-compliance occurs, subject to a
maximum of rupees one lakh, as the Authority may
determine.
(3) If any person does not comply with the orders or
directions issued, or fails to pay the fine imposed under subsection
(2), he shall, without prejudice to any legal
proceeding, be punishable with imprisonment for a term
which may extend to three months, or with a fine which may
extend to rupees five lakh, or with both, as the competent
court may deem fit:
Provided that the competent court shall not take
cognizanceof any offence under this section save on a
complaint filed by the Authority orany of its officers authorized
This is intended to
ensure implementation
of the orders of the
Central Authority.39
by it.
19. Miscellaneous.-
(1) The Central Authority shall work in coordination with
the investigation and enforcement wings of various Central
and State Agencies such as Bureau of Indian Standards,
Legal Metrology and Income Tax Department and the Law
and Order Agencies concerned of the States concerned.
(2) The Central Authority shall submit a monthly report on
its functioning and performance and such other reports and
returns as may be directed to be submitted, to the Central
Government and shall comply with such directions/
instructions as may be issued by the Central Government
from time to time.
(4) In the discharge of its function the Central Authority
shall be guided by the principle of natural justice and
subject to the other provisions of the Act and of any rules
made by the Central Government, the Central Authority
shall have power to regulate its own procedure.
Coordination with
authorities concerned
will facilitate effective
functioning of the
Central Authority.
This will enable the
Central Government to
monitor the functioning
of the Central Authority.40
CHAPTER-IV
CONSUMER DISPUTES REDRESSAL AGENCIES
(Existing Chapter III renamed as Chapter IV)
9. Establishment of Consumer
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 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"
established by the State Government
in the State by notification; and
(c) a National Consumer Disputes
Redressal Commission established
by the Central Government by
notification.
20. Establishment of
Consumer Disputes Redressal
Agencies. - There shall be
established for the purposes of this
Act, the following agencies,
namely:—
(a) a District Consumer
Forum to be known as the
"District Forum" established by
the State Government 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 State Consumer Forum
to be known as the "State
Forum" established by the State
Government in the State by
notification; and
(c) a National Consumer
Forum established by the
Central Government to be
known as the National Forum by
notification; and
(d) The District Forum, the State
Forum and the National Forum
together shall be known as the
Consumer Forum to be shortly
called as the Forum.
It is proposed to change
the nomenclature of the
State Commission and
the National Commission
to State Forum and
National Forum
respectively and
accordingly, the word in
sub-sections (b) and (c)
has been substituted by
the word’ Forum”.41
Provided further that in a district
where no District Forum has
been established or if
established, there exists at any
time vacancy in the office of the
President or a Member, in such
case, the State Government
may, by notification, direct that
–
(a) A District Forum, as
specified in the notification,
shall exercise the jurisdiction in
respect of such District Forum
as may be specified in the
notification; or
(b) The President or a Member
of a District Forum, as the case
may be, shall exercise the power
or discharge the functions of the
President or the Member, as the
case may be, of any other
District Forum as may be
specified in the notification.
This provision is
considered necessary to
allow State Governments
the flexibility to club
neighboring District
Forum, as also to give
additional charge to the
President/ Members to
hear cases in more than
one District Forum so as
to effectively deal with
the non-functionality of
District Forum caused
due to vacancy of
President/ Member.
This will facilitate speedy
disposal of cases and
help reduce pendency.
10. 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;
21. 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 not less
than a District Judge or a Joint
Secretary in the State or
equivalent, who shall be its
President;
No change
(b) two other members, one of whom
shall be a woman, who shall have the
following qualifications, namely:—
(b) not less than two and not
more than such number of
members , as may be prescribed
, at least one of whom shall be a
This provision is being
made to allow State
Governments to appoint
more than two members 42
woman, who shall have the
following qualifications,
namely:—
, as the concept of
‘Bench’ and ‘Circuit
Benches’ is being
extended to District
Forum also. The
insertion of the words “at
least” would clarify that
more than one woman
can be appointed as a
member in the District
Forum The ceiling on
number of members is
lifted to allow facilitating
disposal of pending
cases.
(i) be not less than thirty-five
years of age,
(ii) possess a bachelor's degree
from a recognized university,
(i) be not less than thirty five
years of age,
(ii) possess a bachelor's
degree from a recognized
university;
No change
(iii) be persons of ability, integrity
and standing, and have adequate
knowledge and experience of at least
ten years in dealing with problems
relating to economics, law,
commerce, accountancy, industry,
public affairs or administration:
(iii) be persons of ability,
integrity and standing, and have
adequate knowledge and
experience of at least ten years in
dealing with problems relating to
economics, law, commerce,
accountancy, industry, consumer
affairs or administration.
Qualification suited to
the area of activity is
proposed to be
prescribed.
Provided that a person shall be
disqualified for appointment as a
member, if he—
(a) has been convicted and
sentenced to imprisonment for an
offence which, in the opinion of the
State Government involves moral
turpitude; or
(b) is an undischarged insolvent;
Provided that a person shall be
disqualified for appointment as a
member or for continuation as
such, if he—
(a) has been convicted and
sentenced to imprisonment for an
offence which, in the opinion of the
State Government, involves moral
turpitude; or
For continuation as a
Member the criteria of
disqualification will also
apply.43
or
(c) is of unsound mind and stands
so declared by a competent court; or
(d) has been removed or
dismissed from the service of the
Government or a body corporate
owned or controlled by the
Government; or
(e) has, in the opinion of the state
Government, such financial or other
interest as is likely to affect
prejudicially the discharge by him of
his functions as a member; or
(ee)- new addition
(f) has such other disqualifications as
may be prescribed by the State
Government;
(b) is an undischarged
insolvent; or
(c) is of unsound mind and
stands so declared by a competent
court; or
(d) has been removed or
dismissed from the service of the
Government or a body corporate
owned or controlled by the
Government; or
(e) has, in the opinion of the
state Government, such financial
or other interest as is likely to
affect prejudicially the discharge by
him of his functions as a member;
or
(ee) is or continues to be, after
appointment, a member or office
bearer of any political party; or
(f) has such other
disqualifications as may be
prescribed by the Central
Government by notification from
time to time.
Members of political
parties are proposed to
be debarred from
becoming President or
Members of the
Consumer Fora.
This is being proposed to
have uniformity in the
provision for
disqualification.
(1A) Every appointment under subsection
(1) shall be made by the
State Government on the
recommendation of a selection
committee consisting of the following,
namely:—
(i) the President of the State
(1A) (a) Every appointment under
sub-section (1) for the post of
President and Members of the
District Forum shall be made by
the State Government on the
recommendation of the State
Public Service Commission
which may be assigned the job
To make the selection
process more
transparent and efficient.
Eligible and efficient
candidates will get
appointed to the posts of
President/Members of 44
Commission — Chairman.
(ii) Secretary, Law Department of the
State — Member.
(iii) Secretary in charge of the
Department dealing with Consumer
Affairs in the State — Member.
Provided that where the President of
the State Commission is, by reason
of absence or otherwise, unable to
act as Chairman of the Selection
Committee, the State Government
may refer the matter to the Chief
Justice of the High Court for
nominating a sitting Judge of that
High Court to act as Chairman.
by the State Government.
(b) The State Public Service
Commission shall invite
applications from the eligible
candidates for the posts of
President and Members
separately.
(c) For selection to the post
of President the State Public
Service Commission shall
conduct a viva-voce
examination and make
selection on the basis of such
examination and submit a
panel of candidates selected
in order of merit to the State
Government recommending
for appointment to the post of
President.
(d) For selection to the post
of Members the State Public
Service Commission shall
conduct a written examination
and a personal interview. On
the basis of the performance
of the candidates in the written
examination and personal
interview, the State Public
Service Commission shall
make selection of candidates
and submit a panel of
candidates selected in order
of merit to the State
Government recommending
for appointment to the post of
Members.
Consumer Fora.
Procedure to be adopted
by the State Public
Service Commission for
the selection is proposed
to be prescribed.
(2) Every member of the District
Forum shall hold office for a term of
(2) Every member of the
District Forum shall hold office for 45
five years or up to the age of sixtyfive
years, whichever is earlier:
Provided that a member shall be
eligible for re-appointment for another
term of five years or up to the age of
sixty-five years, whichever is earlier,
subject to the condition that he fulfills
the qualifications and other
conditions for appointment mentioned
in clause (b) of sub-section (1) and
such re-appointment is also made on
the basis of the recommendation of
the Selection Committee:
a term of five years or up to the
age of sixty-five years, whichever
is earlier:
Provided that a member shall be
eligible for re-appointment for
another term of five years or up to
the age of sixty-five years,
whichever is earlier, subject to the
condition that he fulfills the
qualifications and other conditions
for appointment mentioned in
clause (b) of sub-section (1) and
such re-appointment is also made
on the basis of the
recommendation of the State
Public Service Commission:
Selection will be made
through State Public
Service Commission.
New proviso added Provided that a person
appointed as a President of the
District Forum shall also be
eligible for re-appointment in the
manner provided in sub-section
(1A):
Provided also that the State
Public Service Commission
shall take into consideration the
observations or performance
appraisal report, if any, made by
the President of the State
Commission in respect of the
President or Member of the
District Forum being considered
for re-appointment as such;
To bring about parity in
the number of terms that
one can be appointed to
the post of President in
all the Consumer Fora, it
is proposed that the
President, District Fora
may also be reappointed.
The
experience of the
President may be utilized
for better disposal of
cases.46
Provided further that a member may
resign his office in writing under his
hand addressed to the State
Government and on such resignation
being accepted, his office shall
become vacant and may be filled by
appointment of a person possessing
any of the qualifications mentioned in
sub-section (1) in relation to the
category of the member who is
required to be appointed under the
provisions of sub-section (1A) in
place of the person who has
resigned:
Provided further that a member
may resign his office in writing
under his hand addressed to the
State Government and on such
resignation being accepted, his
office shall become vacant and
may be filled by appointment of a
person possessing any of the
qualifications mentioned in subsection
(1) who is required to be
appointed under the provisions of
sub-section (1A) in place of the
person who has resigned:
No change
Provided also that a person
appointed as the President or as a
member, before the commencement
of the Consumer Protection
(Amendment) Act, 2002, shall
continue to hold such office as
President or member, as the case
may be, till the completion of his
term.
Proposed to be deleted
(3) The salary or honorarium and
other allowances payable to, and the
other terms and conditions of service
of the members of the District Forum
shall be such as may be prescribed
by the State Government.
(3) The salary and allowances
payable to the President of the
District Forum shall be at the
minimum stage of the District
Judge appointed to the State
Judicial Service plus an amount
of Rs.5000/- (Rs. Five Thousand
only) and the salary and
allowances payable to a Member
of the district Forum shall be at
the minimum stage of the
District Judge appointed to the
State Judicial Service. The other
terms and conditions of service of
the President and Members of the
District Forum shall be as may be
To make the salary etc
of the President and
Members of the District
Fora uniform and to
attract more efficient and
eligible candidates to the
post of
Member/President in
District Consumer Fora.
As a result justice
delivery system will be
improved.47
prescribed by the State
Government.
Provided that the appointment of a
member on whole-time basis shall be
made by the State Government on
the recommendation of the President
of the State Commission taking into
consideration such factors as may be
prescribed including the work load of
the District Forum.
Proposed to be deleted
New sub-section added. (4) The President or Member of
the District Forum, on ceasing
to hold office as such, shall not
appear, act or plead before any
District Forum in that State in
which he had been the
President or Member, as the
case may be.
To avoid vested interest
New addition 22. (1) The State Government
shall determine the nature and
categories of the officers and
other employees required to
assist the District Forum in the
discharge of its functioning and
provide the District Forum with
such officers and other
employees as it may think fit.
(2) The officers and other
employees of the District Forum
shall discharge their functions
under the general
superintendence of the
President.
(3) The salaries and allowances
payable to, and the other terms
and conditions of service of, the
officers and other employees of
the District Forum shall be such
This will enable the State
Government to
determine the staff
structure of the
Consumer Fora
depending on the need.
This will also enable the
State Governments to
decide the salary etc of
the employees of the
Consumer Fora.48
as may be prescribed by the
State Government:
Provided that officers and other
employees employed on or
before the commencement of
the Consumer Protection
(Amendment) Act, 2014, in a
District Forum, shall continue to
be employed as such unless the
nature and categories thereof
has been determined by the
State Government.
11. Jurisdiction of the District
Forum.—(1) Subject to the other
provisions of this Act, the District
Forum shall have jurisdiction to
entertain complaints where the value
of the goods or services and the
compensation, if any, claimed ''does
not exceed rupees twenty lakhs.
23. Jurisdiction of the District
Forum.—(1) Subject to the other
provisions of this Act, the District
Forum shall have jurisdiction to
entertain complaints suo motu or
otherwise where the billed value of
the goods or services claimed
does not exceed rupees fifty
lakhs.
To clarify the criteria of
pecuniary jurisdiction of
District Fora to entertain
a complaint, the
provision to consider the
billed value of goods and
services as the basis for
determination of
jurisdiction is being
proposed. The quantum
of pecuniary jurisdiction
is also being enhanced
to rupees fifty 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 works for gain, or
(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
works for gain, or
No change
(b)any of the opposite parties, where (b)any of the opposite parties, The proviso has been 49
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 works for gain,
provided that in such case either
the permission of the District
Forum is given, or the opposite
parties who do not reside, or carry
on business or have a branch
office, or personally work for gain,
as the case may be, acquiesce in
such institution; or
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
works for gain, provided that in
such case the permission of the
District Forum is given; or
modified.
(c ) the cause of action, wholly or in
part, arises.
(c ) the cause of action, wholly or
in part, arises; or
No change except
addition of the word “or”.
New addition d) the complainant resides or
personally works for gain.
This is intended to
enable the complainant
to file a complaint in
District Forum where he
resides or works
irrespective of the fact
that the goods or
services are purchased
within the jurisdiction of
the concerned district or
beyond, within
India.)This will benefit a
large number of
consumers who do eshopping.
They can file a
complaint in the place
where they resides
unencumbered by the
restriction of jurisdiction
of District Fora.
New addition (3)(a) The jurisdiction, powers
and authority of the District
Forum may be exercised by
Provision of Bench is
proposed to be extended
to District Forum for
speedy and efficient 50
benches thereof.
(b) A Bench may be constituted
by the President with one or
more Members as the President
may deem fit and each Bench
shall be presided over by the
seniormost member. Seniority
of the members shall be
determined from the date of
joining of a member;
Provided that the single Member
Bench shall exercise
jurisdiction, power and authority
in relation to such matters as
may be prescribed by the State
Government in consultation with
the State Forum.
disposal of the cases.
New section added 24. Circuit Benches - The
District Forum shall ordinarily
function in the district headquarters
and perform its functions at such
other place, as the State
Government may, in consultation
with the State Forum, notify in the
Official Gazette from time to time.
Provision for Circuit
Bench is proposed to be
extended to District
Forum for speedy justice
at the doorstep of
consumers.
12. Manner in which complaint
shall be made.—(1) A complaint in
relation to any goods sold or
delivered or agreed to be sold or
delivered or any service provided or
agreed to be provided may be filed
with a District Forum by –
25. 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
or in respect of any restrictive
trade practice or unfair trade
practice adopted may be filed,
including by way of electronic
mode, with a District Forum by –
However such type of
provision already exists
in the definition of
complaint but with a view
to provide more clarity (a) the consumer to whom such
goods are sold or delivered or agreed
(a) the consumer to whom such
goods are sold or delivered or 51
to be sold or delivered or such
service provided or agreed to be
provided;
agreed to be sold or delivered or
such service provided or agreed to
be provided or in respect of
which restrictive trade practice
or unfair trade practice is
alleged ;
the nature of complaint
such as due to unfair
trade practice or
restrictive trade is
proposed to be specified.
Now the Consumers will
find it easy to file their
complaints related to
these aspects. In
addition, provision is
being made for e-filing of
complaints.
(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;
(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 or in
respect of which restrictive
trade practice or unfair trade
practice is alleged, is a member
of such association or not;
(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 consumers so interested; or
(d) the Central Government or the
State Government, as the case may
be, either in its individual capacity or
as a representative of interests of the
consumers in general.
(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 consumers so
interested; or
(d) the Central Government or
the State Government, as the
case may be, either in its
individual capacity or as a
representative of interests of the
consumers in general.
No change
(2) Every complaint filed under
sub-section (1) shall be accompanied
with such amount of fee and payable
in such manner as may be
prescribed.
(2) Every complaint filed under
sub-section (1) shall be
accompanied with such amount of
fee and payable in such manner,
including electronic form, as
may be prescribed.
Since the Consumer
Fora are computerized, it
is proposed to make
provision for online filing
of complaints to make
the consumer move
towards egovernance/time
bound52
redressal and to obviate
the need for going to the
Consumer Fora to file a
complaint.
(3) On receipt of a complaint
made under sub-section (1), the
District Forum may, by order, allow
the complaint to be proceeded with or
rejected:
Provided that a complaint shall not be
rejected under this section unless an
opportunity of being heard has been
given to the complainant:
(3) On receipt of a complaint
made under sub-section (1), the
District Forum may, by order, allow
the complaint to be proceeded with
or rejected:
Provided that a complaint shall not
be rejected under this section
unless an opportunity of being
heard has been given to the
complainant:
No change
Provided further that the admissibility
of the complaint shall ordinarily be
decided within twenty-one days from
the date on which the complaint was
received.
Provided further that the
admissibility of the complaint shall
ordinarily be decided within twentyone
days from the date on which
the complaint was registered.
It is logical to fix the time
limit from the date of
registration and not from
the date of receipt as
receiving of a complaint
in a Consumer Fora
does not mean its
admission when there
are defects.
New provisos Provided further that the
complaint would be registered
only if found to be defect free.
Provided also that if the District
Forum does not decide the
issue of admissibility of the
complaint within the period
specified in the second proviso,
it shall be deemed to have been
admitted except in the case
where the complainant has
failed to appear before the
District Forum on the day of
A time-frame of 21 days
after registration of
complaint for deciding its
admissibility has been
incorporated. The
consumers will get to
know whether their
complaint is admissible
or not within 21 days.53
hearing for admissibility fixed
within twenty one days from the
date of registration of the
complaint, without any
reasonable ground;
Provided further that if another
date of hearing for admissibility
is fixed within the next twenty
one days from the date of last
hearing for admissibility and the
complainant fails to appear
without any reasonable ground
the admissibility of the
complaint shall be decided on
merit based on the available
papers or if no date of hearing
for admissibility is fixed within
twenty one days from the last
date of hearing for admissibility
the complaint shall be deemed
to have been admitted on the
expiry of such twenty one days.
Provision for deemed
admissibility of a
complaint is proposed.
(4) Where a complaint is allowed
to be proceeded with under subsection
(3), the District Forum may
proceed with the complaint in the
manner provided under this Act:
Provided that where a complaint has
been admitted by the District Forum,
it shall not be transferred to any other
court or tribunal or any authority set
up by or under any other law for the
time being in force.
Explanation. - For the purpose of this
section “recognised consumer
association” means any voluntary
consumer association registered
(4) Where a complaint is
allowed to be proceeded with
under sub-section (3), the District
Forum may proceed with the
complaint in the manner provided
under this Act:
Provided that where a complaint
has been admitted by the District
Forum, it shall not be transferred to
any other court or tribunal or any
authority set up by or under any
other law for the time being in
force.
Explanation. - For the purpose of
this section “recognised consumer
No Change54
under the Companies Act, 1956 or
any other law for the time being in
force”.
association” means any voluntary
consumer association registered
under the Companies Act, 1956 or
any other law for the time being in
force”.
13. 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
the allegations contained in the
complaint, or omits or fails to take
any action to represent his case
within the time given by the District
Forum, the District Forum shall
proceed to settle the consumer
dispute in the manner specified in
clauses (c) to (g);
(c) where the complaint alleges a
defect in the goods which cannot be
determined without proper analysis or
test of the goods, the District Forum
shall obtain a sample of the goods
from the complainant, seal it and
authenticate it in the manner
prescribed and refer the sample so
sealed to the appropriate laboratory
along with a direction that such
laboratory make an analysis or test,
whichever may be necessary, with a
view to finding out whether such
goods suffer from any defect alleged
in the complaint or from any other
26. 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 the allegations contained
in the complaint, or omits or fails to
take any action to represent his
case within the time given by the
District Forum, the District Forum
shall proceed to settle the
consumer dispute in the manner
specified in clauses (c) to (g);
(c) where the complaint alleges
a defect in the goods which cannot
be determined without proper
analysis or test of the goods, the
District Forum shall obtain a
sample of the goods from the
complainant, seal it and
authenticate it in the manner
prescribed and refer the sample so
sealed to the appropriate
laboratory along with a direction
that such laboratory make an
analysis or test, whichever may be
No change except
renumbering of the
Section.55
defect and to report its findings
thereon to the District Forum within a
period of forty-five days of the receipt
of the reference or within such
extended period as may be granted
by the District Forum;
(d) before any sample of the
goods is referred to any appropriate
laboratory under clause (c), the
District Forum may require the
complainant to deposit to the credit of
the Forum such fees as may be
specified, for payment to the
appropriate laboratory for carrying
out the necessary analysis or test in
relation to the goods in question;
(e) the District Forum shall remit
the amount deposited to its credit
under clause (d) to the appropriate
laboratory to enable it to carry out the
analysis or test mentioned in clause
(c) and on receipt of the report from
the appropriate laboratory, the
District Forum shall forward a copy of
the report along with such remarks as
the District Forum may feel
appropriate to the opposite party;
(f) if any of the parties disputes
the correctness of the findings of the
appropriate laboratory, or disputes
the correctness of the methods of
analysis or test adopted by the
appropriate laboratory, the District
Forum shall require the opposite
party or the complainant to submit in
writing his objections in regard to the
report made by the appropriate
laboratory;
(g) the District Forum shall
thereafter give a reasonable
opportunity to the complainant as
well as the opposite party of being
heard as to the correctness or
otherwise of the report made by the
appropriate laboratory and also as to
the objection made in relation thereto
necessary, with a view to finding
out whether such goods suffer
from any defect alleged in the
complaint or from any other defect
and to report its findings thereon to
the District Forum within a period
of forty-five days of the receipt of
the reference or within such
extended period as may be
granted by the District Forum;
(d) before any sample of the
goods is referred to any
appropriate laboratory under
clause (c), the District Forum may
require the complainant to deposit
to the credit of the Forum such
fees as may be specified, for
payment to the appropriate
laboratory for carrying out the
necessary analysis or test in
relation to the goods in question;
(e) the District Forum shall
remit the amount deposited to its
credit under clause (d) to the
appropriate laboratory to enable it
to carry out the analysis or test
mentioned in clause (c) and on
receipt of the report from the
appropriate laboratory, the District
Forum shall forward a copy of the
report along with such remarks as
the District Forum may feel
appropriate to the opposite party;
(f) if any of the parties disputes
the correctness of the findings of
the appropriate laboratory, or
disputes the correctness of the
methods of analysis or test
adopted by the appropriate
laboratory, the District Forum shall
require the opposite party or the
complainant to submit in writing his
objections in regard to the report
made by the appropriate
laboratory;
(g) the District Forum shall
thereafter give a reasonable 56
under clause (/) and issue an
appropriate order under section 14.
opportunity to the complainant as
well as the opposite party of being
heard as to the correctness or
otherwise of the report made by
the appropriate laboratory and also
as to the objection made in relation
thereto under clause (/) and issue
an appropriate order under
section 27.
(2) the District Forum shall, if the
complaint admitted by it under
section 12 relates to goods in
respect of which the procedure
specified in sub-section (1) cannot be
followed, or if the complaint relates to
any services,—
(a) refer a copy of such complaint
to the opposite party 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 copy of the complaint,
referred to him under clause (a)
denies or disputes the allegations
contained in the complaint, or omits
or fails to take any action to represent
his case within the time given by the
District Forum, the District Forum
shall proceed to settle the consumer
dispute,—
(i) on the basis of evidence
brought to its notice by the
complainant and the opposite party,
where the opposite party denies or
disputes the allegations contained in
the complaint, or
(ii) ex parte on the basis of
evidence brought to its notice by the
complainant where the opposite party
omits or fails to take any action to
(2) the District Forum shall, if
the complaint admitted by it under
section 25 relates to goods in
respect of which the procedure
specified in sub-section (1) cannot
be followed, or if the complaint
relates to any services,—
(a) refer a copy of such
complaint to the opposite party
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 copy of the
complaint, referred to him under
clause (a) denies or disputes the
allegations contained in the
complaint, or omits or fails to take
any action to represent his case
within the time given by the District
Forum, the District Forum shall
proceed to settle the consumer
dispute,—
(i) on the basis of evidence
brought to its notice by the
complainant and the opposite
party, where the opposite party
denies or disputes the allegations
contained in the complaint, or
(ii) ex parte on the basis of
evidence brought to its notice by
the complainant where the
No change except
section number.57
represent his case within the time
given by the Forum.
opposite party omits or fails to take
any action to represent his case
within the time given by the Forum.
(c) where the complainant fails to
appear on the date of hearing before
the District Forum, the District Forum
may either dismiss the complaint for
default or decide it on merits.
(c) where the complainant fails
to appear on the date of hearing
before the District Forum, the
District Forum may decide it on
merits based on available
records.
It is proposed to
dispense with the option
of dismissal of the
complaint in the event of
non appearance of the
complainant on the date
of hearing. This will be in
the interest of justice.
New sub-section. added (2A) electronic intermediaries
shall provide such information,
documents or records as may
be reasonably required in a
written order by the District
Forum for the purpose of the
procedures under sub-section
(1) and sub-section (2) of this
section.”
(3) No proceedings complying
with the procedure laid down in subsections
[1] and [2] shall be called in
question in any court on the ground
that the principles of natural justice
have not been complied with.
(3) No proceedings complying with
the procedure laid down in subsections
(1) and (2) shall be called
in question in any court on the
ground that the principles of
natural justice have not been
complied with.
No change
(3A) Every complaint shall be heard
as expeditiously as possible and
endeavour shall be made to decide
the complaint within a period of three
months from the date of receipt of
notice by opposite party where the
complaint does not require analysis
or testing of commodities and within
five months if it requires analysis or
testing of commodities:
Provided that no adjournment shall
be ordinarily granted by the District
Forum unless sufficient cause is
shown and the reasons for grant of
adjournment have been recorded in
writing by the Forum:
Provided further that the District
(3A) Every complaint shall be
heard as expeditiously as possible
and endeavour shall be made to
decide the complaint within a
period of three months from the
date of receipt of notice by
opposite party where the complaint
does not require analysis or testing
of commodities and within five
months if it requires analysis or
testing of commodities:
Provided that no adjournment shall
be ordinarily granted by the District
Forum unless sufficient cause is
shown and the reasons for grant of
adjournment have been recorded
in writing by the Forum:
No change58
Forum shall make such orders as to
the costs occasioned by the
adjournment as may be provided in
the regulations made under this Act.
Provided also that in the event of a
complaint being disposed of after the
period so specified, the District
Forum shall record in writing, the
reasons for the same at the time of
disposing of the said complaint.
Provided further that the District
Forum shall make such orders as
to the costs occasioned by the
adjournment as may be provided
in the regulations made under this
Act.
Provided also that in the event of a
complaint being disposed of after
the period so specified, the District
Forum shall record in writing, the
reasons for the same at the time of
disposing of the said complaint.
(3B) Where during the pendency of
any proceeding before the District
Forum, it appears to it necessary, it
may pass such interim order as is
just and proper in the facts and
circumstances of the case.
(3B) Where during the pendency of
any proceeding before the District
Forum, it appears to it necessary,
it may pass such interim order as
is just and proper in the facts and
circumstances of the case.
No change
(4) For the purposes of this
section, the District Forum shall have
the same powers as are vested in a
civil court under Code of Civil
Procedure, 1908 while trying a suit in
respect of the following matters,
namely:—
(i) the summoning and enforcing
the attendance of any defendant or
witness and examining the witness
on oath;
(ii) the discovery and production
of any document or other material
object producible as evidence;
(iii) the reception of evidence on
affidavits;
(iv) the requisitioning of the report
of the concerned analysis or test from
the appropriate laboratory or from
any other relevant source;
(v) issuing of any commission for
the examination of any witness, and
(vi) any other matter which may be
prescribed.
(4) For the purposes of this
section, the District Forum shall
have the same powers as are
vested in a civil court under Code
of Civil Procedure, 1908 while
trying a suit in respect of the
following matters, namely:—
(i) the summoning and
enforcing the attendance of any
defendant or witness and
examining the witness on oath;
(ii) the discovery and
production of any document or
other material object producible as
evidence;
(iii) the reception of evidence on
affidavits;
(iv) the requisitioning of the
report of the concerned analysis or
test from the appropriate
laboratory or from any other
relevant source;
(v) issuing of any commission
for the examination of any witness,
and
(vi) any other matter which may
be prescribed.
No change
(5) Every proceeding before the
District Forum shall be deemed to be
(5) Every proceeding before the
District Forum shall be deemed to
No change59
a judicial proceeding within the
meaning of sections 193 and 228 of
the Indian Code (45 of 1860), and the
District Forum shall be deemed to be
a civil court for the purposes of
section 195, and Chapter XXVI of the
Code of Criminal Procedure, 1973 (2
of 1974).
be a judicial proceeding within the
meaning of sections 193 and 228
of the Indian Code (45 of 1860),
and the District Forum shall be
deemed to be a civil court for the
purposes of section 195, and
Chapter XXVI of the Code of
Criminal Procedure, 1973 (2 of
1974).
(6) Where the complainant is a
consumer referred to in sub-clause
(iv) of clause (b) of sub-section (1) of
section 2, the provisions of rule 8 of
Order I of the First Schedule to the
Code of Civil Procedure, 1908 (5 of
1908) shall apply subject to the
modification that every reference
therein to a suit or decree shall be
construed as a reference to a
complaint or the order of the District
Forum thereon.
(7) In the event of death of a
complainant who is a consumer or of
the opposite party against whom the
complaint has been filed, the
provisions of Order XXII of the First
Schedule to the Code of Civil
Procedure, 1908 (5 of 1908) shall
apply subject to the modification that
every reference therein to the plaintiff
and the defendant shall be construed
as reference to a complainant or the
opposite party, as the case may be.
(6) Where the complainant is a
consumer referred to in sub-clause
(iv) of clause (b) of sub-section (1)
of section 2, the provisions of rule
8 of Order I of the First Schedule
to the Code of Civil Procedure,
1908 (5 of 1908) shall apply
subject to the modification that
every reference therein to a suit or
decree shall be construed as a
reference to a complaint or the
order of the District Forum thereon.
(7) In the event of death of a
complainant who is a consumer or
of the opposite party against whom
the complaint has been filed, the
provisions of Order XXII of the
First Schedule to the Code of Civil
Procedure, 1908 (5 of 1908) shall
apply subject to the modification
that every reference therein to the
plaintiff and the defendant shall be
construed as reference to a
complainant or the opposite party,
as the case may be.
No change
New sub-section added (8) The Court shall not allow
the engagement of an
advocate by either party to the
complaint, unless the value of
the goods and services,
exceeds rupees two lakh,
provided that the complainant
may engage an expert if the
complaint requires technical
expertise.
The basic purpose of the
CP Act, 1986 i,e.,
providing speedy,
efficient and
inexpensive justice to the
consumers, is being
defeated because of
predominance of
advocates in Consumer
Fora. To achieve the 60
above basic purpose,
monetary limit has been
fixed up to which
advocates shall not be
allowed to be engaged.
This will enable the
consumer to get
inexpensive justice.
New Section added 27.Reference to mediation.- (1)
The Forum shall, after admission
of the complaint, at the first
hearing of the complaint or at any
stage in between the proceedings,
if it appears to it that there exists
elements of a settlement, which
may be acceptable to the parties,
direct the parties to opt for
settlement of disputes by
mediation under Chapter V of the
Act, except in such cases in which
the issues of grave threats to
life/grave physical and/or mental
injury are involved.
(2) Before directing the parties to
exercise option under sub-section
(1), the Forum shall give such
guidance as it deems fit to the
parties, and that it will be to the
advantage of the parties, so far as
time and expense are concerned,
to opt for settlement of dispute by
mediation.
(3) Where all the parties opt and
agree for mediation, they shall
apply to the forum, within five days
of the direction, the forum shall,
within five days of the application,
refer the matter to mediation, and
then the Chapter IV of the Act shall
To provide speedy and
inexpensive redressal of
consumer grievances,
provision for Mediation
has been proposed for
addition. In order that the
settlement through
mediation has a legal
sanctity, it is proposed to
have the mediation
through the Consumer
Fora. Consumers will be
benefited by getting
speedy and inexpensive
justice without
involvement of
advocates.61
apply.
Provided that the forum, in the
exercise of such power, shall not
refer any dispute to mediation
without the written consent of all
the parties to the complaint.
14. Finding of the District
Forum. — (1) If, after the proceeding
conducted under section 13, the
District Forum is satisfied that the
goods complained against suffer from
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:—
28. Finding of the District
Forum.—(1)If,after the proceeding
conducted under section 26, the
District Forum is satisfied that the
goods complained against suffer
from any of the defects specified in
the complaint or that any of the
allegations contained in the
complaint about the services or
any restrictive trade practices or
unfair trade practices are proved,
it shall issue an order to the
opposite party directing him to do
one or more of the following things,
namely:—
Section numbers have
been changed
accordingly. Restrictive
trade practices and
unfair trade practices
have been added.
(a)to remove the defect pointed out
by the appropriate laboratory from
the goods in question;
(a) to remove the defect
pointed out by the appropriate
laboratory from the goods in
question;
No change
(b) to replace the goods with new
goods of similar description which
shall be free from any defect;
(b) to replace the goods with new
goods of similar description which
shall be free from any defect;
No change
(c ) to return to the complainant the
price, or, as the case may be, the
charges paid by the complainant;
(c ) to return to the complainant the
price, or, as the case may be, the
charges paid by the complainant
along with such interest on such
price or charges as may be
decided;
It is intended to provide
for speedy
implementation of the
order of the Consumer
Fora.
(d) to pay such amount as may be
awarded by it as compensation to the
consumer for any loss or injury
(d) to pay such amount as may be
awarded by it as compensation to
the consumer for any loss or injury 62
suffered by the consumer due to the
negligence of the opposite party.
Provided that the District Forum shall
have the power to grant punitive
damages in such circumstances as it
deems fit;
suffered by the consumer due to
the negligence of the opposite
party.
Provided that the District Forum
shall have the power to grant
punitive damages in such
circumstances as it deems fit,
which shall not be less than ten
times, the value of the goods or
service or 25% of the profit from
the total sale of the said goods
or service, whichever is higher.
To make the punitive
damages awarded under
this provision deterrent
enough to discourage
the other party to repeat
the offence and to deter
the companies to go in
for appeal against the
order of the District
Forum.
(e) to remove the defects in goods or
deficiencies in the services in
question;
e) to remove the defects in goods
or deficiencies in the services in
question;
No change
(f) to discontinue the unfair trade
practice or the restrictive trade
practice or not to repeat it;
(f) to discontinue the unfair trade
practice or the restrictive trade
practice or not to repeat it;
No change
(g) not to offer the hazardous goods
for sale;
(g) not to offer the hazardous or
unsafe goods for sale;
Earlier unsafe goods
were not covered. It is
intended to include
goods which are unsafe
also.
(h) to withdraw the hazardous goods
from being offered for sale;
(ha)to cease manufacture of
hazardous goods and to desist from
offering services which are
hazardous in nature;
h) to withdraw the hazardous
goods from being offered for sale;
(ha) to cease manufacture of
hazardous goods and to desist
from offering services which are
hazardous in nature;
No change
(hb)to pay such sum as may be
determined by it if it is of the opinion
that loss or injury has been suffered
by a large number of consumers who
are not identifiable conveniently:
Provided that the minimum amount of
(hb) to pay such sum as may be
determined by it if it is of the
opinion that loss or injury has been
suffered by a large number of
consumers who are not identifiable
conveniently:63
sum so payable shall not be less than
five per cent of the value of such
defective goods sold or service
provided, as the case may be, to
such consumers:
Provided further that the amount so
obtained shall be credited in favour of
such person and utilized in such
manner as may be prescribed;
Provided that the minimum amount
of sum so payable shall not be less
than twenty-five per cent of the
value of such defective goods sold
or service provided, as the case
may be, to such consumers:
Provided further that the amount
so obtained shall be credited in
favour of such person and utilized
in such manner as may be
prescribed;
(hc)to issue corrective advertisement
to neutralize the effect of misleading
advertisement at the cost of the
opposite party responsible for issuing
such misleading advertisement;
(i) to provide for adequate costs
to parties.
(hc) to issue corrective
advertisement to neutralize the
effect of misleading advertisement
at the cost of the opposite party
responsible for issuing such
misleading advertisement;
(i) to provide for adequate
costs to parties.
No change
(2) Every proceeding referred to
in sub-section(1) shall be conducted
by the President of the District Forum
and at least one member thereof
sitting together:
Provided that where a member, for
any reason, is unable to conduct a
proceeding till it is completed, the
(2) Every proceeding referred
to in sub-section (1) shall be
conducted by the President of the
District Forum and at least one
member thereof sitting together:
Provided that where a President,
for any reason, is unable to
conduct a proceeding or on
leave or otherwise the State
Government may, by
notification, authorize President
of another District Fora to act as
the President in that District for
such period as may be
specified.
Provided further that where a
member, for any reason, is unable
to conduct a proceeding till it is
completed, the President and the
At present, there is no
provision regarding
procedure of
proceedings in absence
of the President. It is
proposed to fill up this
gap. The proceedings
will not be delayed due
to absence of the
President.64
President and the other member shall
continue the proceeding from the
stage at which it was last heard by
the previous member.
other member shall continue the
proceeding from the stage at which
it was last heard by the previous
member.
(2A) Every order made by the District
Forum under sub-section (1) shall be
signed by its President and the
member or members who conducted
the proceeding:
Provided that where the proceeding
is conducted by the President and
one member and they differ on any
point or points, they shall state the
point or points on which they differ
and refer the same to the other
member for hearing on such point or
points and the opinion of the majority
shall be the order of the District
Forum.
(2A) Every order made by the
District Forum under sub-section
(1) shall be signed by its President
and the member or members who
conducted the proceeding:
Provided that where the
proceeding is conducted by the
President and one member and
they differ on any point or points,
they shall state the point or points
on which they differ and refer the
same to the other member for
hearing on such point or points
and the opinion of the majority
shall be the order of the District
Forum.
Provided further that the other
Member shall give his opinion
on such point or points referred
to him within a period of two
months from the date of such
reference.
New proviso has been
added fixing time frame
on note of difference has
been fixed for quicker
disposal of the cases.
New sub-section added (2B) Power of review: The
District Forum shall have the
power to review orders made by
it only when there is any error
apparent on the face of record.
To set right the lapse
committed through
oversight by the District
Fora. This will benefit the
consumers by getting
justice in District Fora
itself and they can avoid
filing appeals in State
Commission.65
15. 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
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
District Forum, shall be entertained
by the State Commission unless the
appellant has deposited in the
prescribed manner fifty per cent. of
that amount or twenty-five
thousand rupees, whichever is
less.
29. Appeal.— (1)Any person
aggrieved by an order made by the
District Forum may prefer an
appeal against such order to the
State Forum 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 Forum
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
bya person, who is required to
pay any amount in terms of an
order of the District Forum, shall
be entertained by the State
Forum unless the appellant has
deposited in the prescribed
manner fifty per cent of that
amount .
The words ‘State
Commission’ have been
substituted by the words
‘ State Forum”.
In the last line after the
word ‘amount’ the words
‘or twenty five
thousand rupees,
whichever is less’ have
been deleted, so as to
discourage the opposite
party to go for appeal to
higher Forum on flimsy
ground. The cases will
not be prolonged
unnecessarily.
Therefore, the
consumers will get
justice quickly.
16. 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, shall be its
President:
30. Composition of the State
Forum. — (1) Each State Forum
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
The word “Commission”
has been substituted by
word “Forum”.66
Provided that no appointment under
this clause shall be made except
after consultation with the Chief
Justice of the High Court;
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-five
years of age;
(ii) possess a bachelor's degree
from a recognised university; and
(iii) be persons of ability, integrity
and standing, and have adequate
knowledge and experience of at least
ten years in dealing with problems
relating to economics, law,
commerce, accountancy, industry,
public affairs or administration:
Provided that not more than fifty
per cent. of the members shall be
from amongst persons having a
judicial background.
Explanation. — For the purposes of
this clause, the expression "persons
having judicial background'' shall
mean persons having knowledge and
experience for at least a period of ten
years as a presiding officer at the
district level court or any tribunal at
equivalent level:
Provided further that a person shall
be disqualified for appointment as a
(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 forty years
of age;
(ii) possess a bachelor's
degree from a recognised
university;
(iii) be persons of ability,
integrity and standing, and have
adequate knowledge and
experience of at least ten years in
dealing with problems relating to
economics, law, commerce,
accountancy, industry, consumer
affairs or administration:
Provided that a person shall be
disqualified for appointment as a
member if he—
(a) has been convicted and
sentenced to imprisonment for an
offence which, in the opinion of the
State Government, involves moral
turpitude; or
(b) is an undischarged
insolvent; or
(c) is of unsound mind and
stands so declared by a competent
The minimum number of
Members in a State
Forum is being
enhanced from two to
four to facilitate quick
disposal of the
complaints.
The minimum age for
appointment of a
Member is proposed to
be enhanced from 35
years to 40 years in the
existing section 16(1) (b)
(i) to have experienced
persons as Members.
Experience in the
relevant area ‘consumer
affairs’ is being
proposed.
The proviso after the
existing section 16(b)
(iii) as regards fifty
percent of the
members to be
selected from persons
having judicial
background is being
deleted along with the 67
member if he—
(a) has been convicted and
sentenced to imprisonment for an
offence which, in the opinion of the
State Government, involves moral
turpitude; or
(b) is an undischarged insolvent;
or
(c) is of unsound mind and stands
so declared by a competent
court; or
(d) has been removed or
dismissed from the service of the
Government or a body corporate
owned or controlled by the
Government; or
(e) has, in the opinion of the State
Government, such financial or other
interest, as is likely to affect
prejudicially the discharge by him of
his functions as a member; or
(f) has such other
disqualifications as may be
prescribed by the State Government.
court; or
(d) has been removed or
dismissed from the service of the
Government or a body corporate
owned or controlled by the
Government; or
(e) has, in the opinion of the
State Government, such financial
or other interest, as is likely to
affect prejudicially the discharge by
him of his functions as a member;
or
(ee)is or continues to be, after
appointment, a Member or office
bearer of any political party; or
(f) has such other
disqualifications as may be
prescribed by the State
Government.
explanation.
It is intended to debar
politicians to become
member of Consumer
Fora.
(1A)Every appointment under subsection
(1) shall be made by the
State Government on the
recommendation of a Selection
Committee consisting of the following
members, namely:—
(i) President of the State
(1A)Every appointment under
Clause (b) of sub-section (1) shall
be made by the State Government
on the recommendation of a
Selection Committee consisting of
the following members, namely:—
(i) A Judge of the High Court of To make the selection 68
Commission -- Chairman;
(ii) Secretary of the Law Department
of the State -- Member;
(iii) Secretary in charge of the
Department dealingwith Consumer
Affairs in the State -- Member:
Provided that where the President
of the State Commission is, by
reason of absence or otherwise,
unable to act as Chairman of the
Selection Committee, the State
Government may refer the matter
to the Chief Justice of the High
Court for nominating a sitting
Judge of that High Court to act as
Chairman.
the State duly nominated by the
Chief Justice of that State--
Chairman
(ii) Secretary of the Law
Department of the State --
Member;
(iii) Secretary in-charge of the
Department of Consumer Affairs in
the State-- Member
process more effective.
The proviso is being
deleted as it is not
necessary in view of the
changes being
proposed.
New sub-section added (1AA)The State Government
may, if it is of the opinion that
any person recommended by
the Selection Committee under
sub-section (1A) has not been
found fit for such appointment,
it may, within a period of two
months from such
recommendation and for
reasons to be recorded in
writing, refer the matter to the
Selection Committee for fresh
recommendations.
Provided also that the Selection
Committee shall take into
consideration the observations
or performance appraisal report,
if any, made by the President of
the National Forum in respect of
the Member of the State Forum
This is intended to avoid
unnecessary delay in
selection and to make
the selection process
time bound.69
being considered for reappointment.
(1B)(i) The jurisdiction, powers and
authority of the State Commission
may be exercised by Benches
thereof.
(ii) A Bench may be constituted
by the President with one or more
members as the President may deem
fit.
(iii) If the members of a Bench
differ in opinion on any point, the
points shall be decided according to
the opinion of the majority, if there is
a majority, but if the Members are
equally divided, they shall state the
point or points on which they differ,
and make a reference to the
President who shall either hear the
point or points himself or refer the
case for hearing on such point or
points by one or more or the other
members and such point or points
shall be decided according to the
opinion of the majority of the
members who have heard the case,
including those who first heard it.
(1B)(i) The jurisdiction, powers and
authority of the State Forum may
be exercised by Benches thereof.
(ii) A Bench may be constituted
by the President with one or more
members as the President may
deem fit.
(ii)[a] where a President, for any
reason, is unable to conduct the
proceedings or on leave or
otherwise, the President of the
National Forum may authorize in
consultation with the respective
State Government the
seniormost member to conduct
the proceedings.
(iii) If the members of a Bench
differ in opinion on any point, the
points shall be decided according
to the opinion of the majority, if
there is a majority, but if the
Members are equally divided, they
shall state the point or points on
which they differ, and make a
reference to the President who
shall either hear the point or points
himself or refer the case for
hearing on such point or points by
one or more or the other members
and such point or points shall be
decided according to the opinion of
the majority of the members who
have heard the case, including
those who first heard it.
The word ‘ Commission’
is being substituted by
the word ‘ Forum”.
No change
This is intended to
facilitate the proceedings
of a Consumer Fora in
the absence of the
President.
No change.
(2) The salary or honorarium and
other allowances payable to, and the
(2) The salary and allowances
payable to the President of the
It is proposed to make
the salary of the 70
other terms and conditions of service
of, the members of the State
Commission shall be such as may be
prescribed by the State Government.
Provided that the appointment of a
member on whole-time basis shall be
made by the State Government on
the recommendation of the President
of the State Commission taking into
consideration such factors as may be
prescribed including the work load of
the State Commission.
State Forum shall be equal to
that of a sitting High Court
Judge of the State. The salary or
honorarium and other allowances
payable to the members of the
State Forum shall be as
applicable to the Secretary of
that State.
President and Members
of State Fora uniform.
(3) Every member of the State
Commission shall hold office for a
term of five years or up to the age of
sixty-seven years, whichever is
earlier:
Provided that a member shall be
eligible for re-appointment for another
term of five years or up to the age of
sixty-seven years, whichever is
earlier, subject to the condition that
he fulfills the qualifications and other
conditions for appointment mentioned
in clause (b) of sub-section (1) and
such re-appointment is made on the
basis of the recommendation of the
Selection Committee:
Provided further that a person
appointed as a President of the State
Commission shall also be eligible for
re-appointment in the manner
provided in clause (a) of sub-section
(1) of this section:
Provided also that a member may
resign his office in writing under his
hand addressed to the State
Government and on such resignation
(3) Every member of the State
Forum shall hold office for a term
of five years or up to the age of
sixty-seven years, whichever is
earlier:
Provided that a member shall be
eligible for re-appointment for
another term of five years or up to
the age of sixty-seven years,
whichever is earlier, subject to the
condition that he fulfills the
qualifications and other conditions
for appointment mentioned in
clause (b) of sub-section (1) and
such re-appointment is made on
the basis of the recommendation
of the Selection Committee:
Provided further that a person
appointed as a President of the
State Forum shall also be eligible
for re-appointment in the manner
provided in clause (a) of subsection
(1) of this section:
Provided also that a member may
resign his office in writing under his
hand addressed to the State
The word ‘Commission’
has been substituted by
the word ‘Forum’71
being accepted, his office shall
become vacant and may be filled by
appointment of a person possessing
any of the qualifications mentioned in
sub-section (1) in relation to the
category of the member who is
required to be appointed under the
provisions of sub-section (1A) in
place of the person who has
resigned.
Government and on such
resignation being accepted, his
office shall become vacant and
may be filled by appointment of a
person possessing any of the
qualifications mentioned in subsection
(1) in relation to the
category of the member who is
required to be appointed under the
provisions of sub-section (1A) in
place of the person who has
resigned.
(4) Notwithstanding anything
contained in sub-section (3), a
person appointed as the President or
as a member, before the
commencement of the Consumer
Protection (Amendment) Act, 2002,
shall continue to hold such office as
President or member, as the case
may be, till the completion of his
term.
To be deleted
New sub-section added (4) The President or Member
of the State Forum on ceasing to
hold office as such, shall not
appear, act or plead before the
State Forum or any District
Forum in that State in which he
had been as the President or
Member, as the case may be, of
the State Forum.
To avoid any vested
interest
New Section added 31. (1) The State Government
shall determine the nature and
categories of the officers and
other employees required to
assist the State Forum in the
discharge of its functions and
provide the Forum with such
officers and other employees as
This is intended to
enable State Govt. to
determine the staff
component in a
Consumer Fora.72
it may think fit.
(2) The officers and other
employees of the State Forum
shall discharge their functions
under the general
superintendence of the
President.
(3) The salaries and
allowances payable to and the
other terms and conditions of
service of, the officers and other
employees of the State Forum
shall be such as may be
prescribed by the State
Government:
Provided that the officers and
other employees employed on
or before the commencement of
the Consumer Protection
(Amendment) Act, 2011, in a
State Forum, shall continue to
be employed as such unless the
nature and categories thereof
has been determined by the
State Government.
This is intended to
enable to State Govt. to
prescribe the salary
structure and terms and
conditions of service of
the staff of a Consumer
Fora.
17. 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;
32. Jurisdiction of the State
Forum. — (1) Subject to the other
provisions of this Act, the State
Forum shall have jurisdiction—
(a) to entertain—
(i) complaints suo motu or
otherwise where the billed value
of the goods or services, if any,
claimed in a complaint exceeds
rupees fifty lakhs but does not
A need is felt for the
State Forum to entertain
complaints suo motu.73
and
(ii) appeals against the orders of
any District Forum within the State;
and
exceed rupees one crore; and
(ii) appeals against the orders
of any District Forum within the
State; 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 District
Forum within the State, where it
appears to the State Commission
that such District Forum has
exercised a jurisdiction not vested in
it by law, or has failed to exercise a
jurisdiction so vested or has acted in
exercise of its jurisdiction illegally or
with material irregularity.
(b) to call for the records and
pass appropriate orders in any
consumer dispute which is pending
before or has been decided by any
District Forum within the State,
where it appears to the State
Forum that such District Forum
has exercised a jurisdiction not
vested in it by law, or has failed to
exercise a jurisdiction so vested or
has acted in exercise of its
jurisdiction illegally or with material
irregularity.
The word Commission
has been substituted the
word Forum.
(2) A complaint shall be instituted in a
State Commission within the limits of
whose jurisdiction,—
(a) the opposite party or each of
the opposite parties, where there are
more than one, at the time of the
institution of the complaint, actually
and voluntarily resides or carries on
business or has a branch office or
personally works for gain; or
(2) A complaint shall be instituted
in a State Forum within the limits
of whose jurisdiction,—
(a) the opposite party or each
of the opposite parties, where
there are more than one, at the
time of the institution of the
complaint, actually and voluntarily
resides or carries on business or
has a branch office or personally
works for gain; or
The word Commission
has been substituted the
word Forum.
(b) any 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 works
for gain, provided that in such case
either the permission of the State
Commission is given or the opposite
(b) any 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
works for gain, provided that in
such case the permission of the 74
parties who do not reside or carry on
business or have a branch office or
personally work for gain, as the case
may be, acquiesce in such institution;
or
State Forumis given ; or
(c) the cause of action, wholly or
in part, arises.
(c) the cause of action, wholly
or in part, arises.
No change
(d) the complainant resides
or personally works for gain.
A clause has been
added to allow
complainant to file a
complaint in the State
Forum where he resides
or works.
17A. Transfer of cases. - On the
application of the complainant or of
its own motion, the State
Commission may, at any stage of the
proceeding, transfer any complaint
pending before the District Forum to
another District Forum within the
State if the interest of justice so
requires.
33. Transfer of cases. - On the
application of the complainant or of
its own motion, the State
Forummay, 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.
The word Commission
has been substituted by
the word Forum.
17B. Circuit Benches.-The State
Commission shall ordinarily function
in the State Capital but may perform
its functions at such other place as
the State Government may, in
consultation with the State
Commission, notify in the Official
Gazette, from time to time.
34. Circuit Benches.-The State
Forum shall ordinarily function in
the State Capital but may perform
its functions at such other place as
the State Forum may decide from
time to time depending on the
pendency from one particular
District.
This will facilitate
disposal of pending
cases.
18. Procedure applicable to
State Commissions.—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
35 Procedure applicable to
State Forum.—(1) The provisions
of Sections 25, 26 and 28 and the
rules made thereunder for the
disposal of complaints by the
District Forum shall, with such 75
modifications as may be necessary,
be applicable to the disposal of
disputes by the State Commission.
modifications as may be
necessary, be applicable to the
disposal of disputes by the State
Forum.
(2) No advocates will appear
before the State Forum for any
parties in appeals against
orders of District Forum passed
in the cases where the billed
value of goods/ services
claimed in the original complaint
was up to rupees two lakh.
As it is viewed that
appearance of
advocates is a cause of
delay in disposal of
complaints, financial limit
in terms of claim is
proposed for
appearance of
advocates before the
state Forum. This is
expected to benefit the
consumers in getting
speedy settlement of
their complaints..
l9. Appeals.—Any person
aggrieved by an order made by the
State Commission in exercise of its
powers conferred by sub-clause (i) of
clause (a) of section 17 may prefer
an 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
36. Appeals.—Any person
aggrieved by an order made by the
State Forum in exercise of its
powers conferred by sub-clause (i)
of clause (a) of section 32may
prefer an appeal against such
order to the National Forum 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
Forum shall not entertain the
appeal after the expiry of the
said period of thirty days unless
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 76
entertained by the National
Commission unless the appellant has
deposited in the prescribed manner
fifty per cent. of the amount or rupees
thirty-five thousand, whichever is
less:
order of the State Forum, shall
be entertained by the National
Forum unless the appellant has
deposited in the prescribed
manner fifty per cent. of the
amount.
Provided further that only one
appeal is allowed i.e. appeal on
the orders of the District Forum
shall lie to the State Forum and
no further appeal shall lie on the
orders of the State Forum in the
matter. Similarly on the orders
of the State Forum appeal shall
lie to the National Forum.
Restriction on appeals
has been proposed to
facilitate quick disposal
of cases
19A. Hearing of Appeal - An
appeal filed before the State
Commission or the National
Commission shall be heard as
expeditiously as possible and an
endeavour shall be made to finally
dispose of the appeal within a period
of ninety days from the date of its
admission:
Provided that no adjournment shall
be ordinarily granted by the State
Commission or the National
Commission, as the case may be,
unless sufficient cause is shown and
the reasons for grant of adjournment
have been recorded in writing by
such Commission:
Provided further that the State
Commission or the National
Commission, as the case may be,
shall make such orders as to the
costs occasioned by the adjournment
as may be provided in the regulations
37. Hearing of Appeal - An
appeal filed before the State
Forum or the National Forum
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
Forum or the National Forum, as
the case may be, unless sufficient
cause is shown and the reasons
for grant of adjournment have
been recorded in writing by such
Forum:
Provided further that the State
Forum or the National Forum, as
the case may be, shall make such
orders as to the costs occasioned
by the adjournment as may be
provided in the regulations made
The word Commission
has been substituted by
the word Forum.77
made under his Act.
Provided also that in the event of an
appeal being disposed of after the
period so specified, the State
Commission or, the National
Commission, as the case may be,
shall record in writing the reasons for
the same at the time of disposing of
the said appeal.
under this Act.
Provided also that in the event of
an appeal being disposed of after
the period so specified, the State
Forum or, the National Forum, as
the case may be, shall record in
writing the reasons for the same at
the time of disposing of the said
appeal.
(To be added)
38. Without prejudice to the
provisions contained in Section
35, the State Forum shall have
the power to review any order
made by it, when there is an
error apparent on the face of
record.
This is in intended to
reduce unnecessary
appeals to National
Forum. Help the
consumer in getting
speedy disposal of his
complaint.
20. 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;
39. Composition of the
National Forum.—(1) The
National Forum 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;
The word Commission
has been substituted by
the word Forum.
(b) not less than four, and not
more than such number of members,
as may be prescribed, and one of
(b) not less than fifteen, and
not more than such number of
members, as may be prescribed,
The existing strength of
members in the National 78
whom shall be a woman, who shall
have the following qualifications,
namely:—
(i) be not less than thirty-five
years of age;
(ii) possess a bachelor's degree
from a recognised university; and
(iii) be persons of ability, integrity
and standing and have adequate
knowledge and experience of at least
ten years in dealing with problems
relating to economics, law,
commerce, accountancy, industry,
public affairs or administration:
Provided that not more than fifty
per cent. of the members shall be
from amongst the persons having a
judicial background.
Explanation. — For the purposes of
this clause, the expression "persons
having judicial background'' shall
mean persons having knowledge and
experience for at least a period of ten
of whom one shall be a woman
and one each shall be from SC/ST,
OBC and minority communities
with following qualifications,
namely:—
(i) One may not be less than
forty five years of age;
(ii) possess a bachelor's
degree from a recognised
university; and
(iii) be persons of ability,
integrity and standing and have
adequate knowledge and
experience of at least twenty
years in dealing with problems
relating to economics, law or,
commerce / accountancy / industry
/consumer affairs or
administration and preferably has
held the post of not less than
Additional Secretary to the
Government of India or of
equivalent level in the Central
Government or State
Government: or persons having
knowledge and experience for at
least a period of ten years as a
presiding officer at the district
level court or at any tribunal at
equivalent level.
Provided further that there shall
be not less than one woman
member at any point of time in
the total strength of members of
the National Forum including
Commission is 11.
A post of member in
NCDRC is being
reserved Fora
professional Doctor to
have expertise in dealing
with medical related
cases.
The increase in the
minimum age limit and
enhancing the
experience of a
candidate for the post of
member is intended to
have experienced
candidates for member
in NCDRC.
Reducing the number of
judicial members is
intended to have
candidates experienced
in other fields as
members of the National
Commission to deal with
cases of different 79
years as a presiding officer at the
district level court or any tribunal at
equivalent level:
Provided further that a person shall
be disqualified for appointment if
he—
(a) has been convicted and
sentenced to imprisonment for an
offence which, in the opinion of the
Central Government, involves
moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands
so declared by a competent
court; or
(d) has been removed or
dismissed from the service of the
Government or a body corporate
owned or controlled by the
Government; or
(e) has in the opinion of the
Central Government such
financial or other interest as is
likely to affect prejudicially the
discharge by him of his
the President.
Provided further that a person shall
be disqualified for appointment or
for continuation as such if he—
(a) has been convicted
and sentenced to imprisonment
for an offence which, in the
opinion of the Central
Government, involves moral
turpitude; or
(b) is an un-discharged
insolvent; or
(c) is of unsound mind and
stands so declared by a
competent court; or
(d) has been removed or
dismissed from the service of
the Government or a body
corporate owned or
controlled by the
Government; or
(e) has in the opinion of the
Central Government such
financial or other interest as
is likely to affect prejudicially
the discharge by him of his
functions as a member; or
(ee) is or continues to be, after
appointment, a Member or office
bearer of any political party; or;
(f) has such other disqualifications
as may be prescribed by the
Central Government :
Provided also that every
appointment under this clause
sectors.80
functions as a member; or
(f) has such other disqualifications
as may be prescribed by the
Central Government :
Provided also that every appointment
under this clause shall be made by
the Central Government on the
recommendation of a selection
committee consisting of the following,
namely:—
(a) a person who is a Judge of the
Supreme Court, Chairman; to be
nominated by the Chief
Justice of India
(b)the Secretary in the Department
of Legal Affairs Member;
in the Government of India
(c) Secretary of the Department
dealing with consumer —
Member.;
affairs in the Government of India
shall be made by the Central
Government on the
recommendation of a selection
committee consisting of the
following, namely:—
(a) a person who is a Judge of
the Supreme Court, to be
nominated by the Chief Justice of
India— Chairman;
(b) the Secretary in the
Department of Legal Affairs in the
Government of India—
Member;
(c) Secretary of the Department
dealing with consumer affairs in
the Government of India —
Member;
Members of political
parties are proposed to
be debarred from
becoming members of
the Commission.
(1A)(i) The jurisdiction, powers and
authority of the National Commission
may be exercised by Benches
thereof.
(ii) A Bench may be constituted
by the President with one or more
members as the President may deem
(1A)(i) The jurisdiction, powers and
authority of the National Forum
may be exercised by Benches
thereof.
(ii) A Bench may be constituted
by the President with one or 81
fit.
(iii) if the Members of a Bench
differ in opinion on any point, the
points shall be decided according to
the opinion of the majority, if there is
a majority, but if the members are
equally divided, they shall state the
point or points on which they differ,
and make a reference to the
President who shall either hear the
point or points himself or refer the
case for hearing on such point or
points by one or more or the other
Members and such point or points
shall be decided according to the
opinion of the majority of the
Members who have heard the case,
including those who first heard it.
moremembers;
Provided that the senior most
member of the Bench shall
preside over the Bench and
seniority shall be determined in
accordance with the date of
joining as a member in the
Forum.
(iii) if the Members of a Bench
differ in opinion on any point, the
points shall be decided according
to the opinion of the majority, if
there is a majority, but if the
members are equally divided, they
shall state the point or points on
which they differ, and make a
reference to the President who
shall either hear the point or points
himself or refer the case for
hearing on such point or points by
one or more or the other Members
and such point or points shall be
decided according to the opinion of
the majority of the Members who
have heard the case, including
those who first heard it.
Provided that the President or
the Members, as the case may
be, shall give his or their
opinion on the point or points
referred to him or them within a
period of two months from the
date of such reference.
Provides for which
members will preside
over a bench to avoid
any doubts.
A time limit is proposed
for giving opinion to
avoid undue delay.
(2) The salary or honorarium and
other allowances payable to and the
other terms and conditions of
service of the members of the
National Commission shall be such
(2)President of the National
Forum shall be entitled to the
salary and allowances as
applicable to a sitting Judge of
the Supreme Court and
It is proposed to specify
the salary and
allowances of the
President & Members of
the National Forum.82
as may be prescribed by the Central
Government.
Members shall be entitled to the
salary and allowances as
applicable to a sitting judge of
High Court.
(3) Every member of the National
Commission shall hold office for a
term of five years or up to the age of
seventy years, whichever is earlier:
Provided that a member shall be
eligible for re-appointment for another
term of five years or up to the age of
seventy years, whichever is earlier,
subject to the condition that he fulfills
the qualifications and other
conditions for appointment mentioned
in clause (b) of sub-section (1) and
such re-appointment is made on the
basis of the recommendation of the
Selection Committee:
Provided further that a person
appointed as a President of the
National Commission shall also be
eligible for re-appointment in the
manner provided in clause (a) of subsection
(1) :
Provided also that a member may
resign his office in writing under his
hand addressed to the Central
Government and on such resignation
being accepted, his office shall
become vacant and may be filled by
appointment of a person possessing
any of the qualifications mentioned in
sub-section (1) in relation to the
category of the member who is
required to be appointed under the
provisions of sub-section (1A) in
place of the person who has
(3) Every member of the
National Forum shall hold office
for a term of five years or up to the
age of seventy years, whichever is
earlier:
Provided that a member shall be
eligible for re-appointment for
another term of five years or up to
the age of seventy years,
whichever is earlier, subject to the
condition that he fulfills the
qualifications and other conditions
for appointment mentioned in
clause (b) of sub-section (1) and
such re-appointment is made on
the basis of the recommendation
of the Selection Committee:
Provided further that a person
appointed as a President of the
National Forum shall also be
eligible for re-appointment in the
manner provided in clause (a) of
sub-section (1) :
Provided also that a member may
resign his office in writing under his
hand addressed to the Central
Government and on such
resignation being accepted, his
office shall become vacant and
may be filled by appointment of a
person possessing any of the
qualifications mentioned in subsection
(1) in relation to the
category of the member who is
No change except that
the word Commission
has been substituted by
the word Forum.83
resigned. required to be appointed under the
provisions of sub-section (1)(a)
&)(b) in place of the person who
has resigned.
(4) Notwithstanding anything
contained in sub-section (3), a
person appointed as a President or
as a member before the
commencement of the Consumer
Protection (Amendment) Act, 2002
shall continue to hold such office as
President or member, as the case
may be, till the completion of his
term.
(4) To be deleted and
substituted by -
A Member of the National
Forum, on ceasing to hold office
as such, shall not appear, act or
plead before the National Forum
or any State Forum or District
Forum.
New section added 40. (1) The Central
Government, in consultation
with the President of the
National Forum shall determine
the nature and categories of the
officers and other employees,
required to assist the National
Forum in the discharge of its
function and provide the Forum
with such officers and other
staff as it may think fit.
(2) The officers and other
employees of the National
Forum shall discharge their
functions under the general
Superintendence of the
President, National Forumand
shall be deemed to be public
servant within the meaning of
Section 21 of the Indian Penal
Code.
(3) The Salaries and allowances
payable and the other terms and
conditions of the service of, the
This is intended to
enable the central
government to determine
the nature and
categories of the officers
and other employees, for
the National Forum.
This is intended to
enable to central
government to prescribe 84
officers and other employees of
the National Forum appointed
under Sub-Section (1) shall be
on the pattern of Secretariat
Services as may be prescribed
by the Central Government.
(4) Subject to such rules as may
be made by the Central
Government in this behalf, the
National Forum may appoint
such other administrative and
technical staff as it may
consider necessary.
the pay structure of the
employees of NCDRF.
21. 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
exceeds 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 vested in it by law, or
has failed to exercise a jurisdiction so
vested, or has acted in the exercise
of its jurisdiction illegally or with
41. Jurisdiction of the
National Forum. — Subject to the
other provisions of this Act, the
National Forum shall have
jurisdiction—
(a) to entertain—
(i) complaints suomotu or
otherwise where the billed value
of the goods or services , if any,
claimed exceeds rupees one crore;
and
(ii) appeals against the orders
of any State Forum; 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 Forum where it appears to
the National Forum that such
State Forum has exercised a
jurisdiction not vested in it by law,
or has failed to exercise a
jurisdiction so vested, or has acted 85
material irregularity. in the exercise of its jurisdiction
illegally or with material
irregularity.
22. Power of and procedure
applicable to the National
Commission. — (1) The provisions
of sections 12, 13 and 14 and the
rules made there under 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.
42. Power of and procedure
applicable to the National
Forum. — (1) The provisions of
sections 25,26,27 and 28 and the
rules made there under for the
disposal of complaints by the
District Forum shall, with such
modifications as may be
considered necessary by the
Forum, be applicable to the
disposal of disputes by the
National Forum.
(2) Without prejudice to the
provisions contained in sub-section
(1), the National Forum shall have
the power to review any order
made by it, when there is an error
apparent on the face of record.
No change except that
the word Commission
has been substituted by
the word Forum.
22A. Power to set aside ex parte
orders. - Where an order is passed
by the National Commission ex parte
against the opposite party or a
complainant, as the case may be, the
aggrieved party may apply to the
Commission to set aside the said
order in the interest of justice.
43. Power to set aside ex parte
orders. - Where an order is passed
by the National Forum ex parte
against the opposite party or a
complainant, as the case may be,
the aggrieved party may apply to
the Forum to set aside the said
order in the interest of justice.
No change except that
the word ‘Commission’
has been substituted by
the word ‘Forum’.
22B. 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
44. Transfer of cases - On the
application of the complainant or of
its own motion, the National
Forum may, at any stage of the
proceeding, in the interest of
justice, transfer any complaint
No change except that
the word ‘Commission’
has been substituted by
the word ‘Forum’.86
before the District Forum of one State
to a District Forum of another State
or before one State Commission to
another State Commission.
pending before the District Forum
of one State to a District Forum of
another State or before one State
Forum to another State Forum
22C. 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.
45. Circuit Benches - The
National Forum shall ordinarily
function at New Delhi and perform
its functions at such other place as
the President, National
Forum, may order from time to
time depending on the
pendency of cases in one area.
The President, NCDRF
is being empowered to
decide about holding of
circuit benches
depending on pendency
of cases.
22D. Vacancy in the Office of the
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.
46. Vacancy in the Office of
the President - When the office of
President of a District Forum, State
Forum, or of the National Forum ,
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 ofthe
District Forum, the State Forum,
or of the National Forum , as the
case may be.
The word ‘Commission”
is proposed to be
substituted by the word
‘Forum”.
New section added 47. Where the National Forum
or the State Forum, as the case
may be, on application by a
complainant or otherwise, is of
This is intended to
facilitate proceedings of
the Consumer Forum in
cases involving larger 87
the opinion that it involves the
larger interest of consumers, it
may direct any individual or
organization or expert to assist
the National Forum or the State
Forum, as the case may be.
interests of consumers.
23. 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
of the National Commission 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 has deposited in
the prescribed manner fifty per cent.
of that amount with the Supreme
Court.
48. Appeal. — Any person,
aggrieved by an order made by the
National Forum in exercise of its
powers conferred by sub-clause (i)
of clause (a) of section 41 , may
prefer an appeal against such
order of the National Forum 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 Forum shall be
entertained by the Supreme Court
unless that person has deposited
in the prescribed manner fifty per
cent. of that amount with the
Supreme Court.
No change except that
the word Commission
has been substituted by
the word Forum.
24. Finality of orders. — Every
order of a District Forum, the State
Commission or the National
Commission shall, if no appeal has
been preferred against such order
under the provisions of this Act, be
49. Finality of orders. — Every
order of a District Forum, the State
Forum or the National Forum
shall, if no appeal has been
preferred against such order under
the provisions of this Act, be final.
No change except that
the word Commission
has been substituted by
the word Forum.88
final.
24A. Limitation period. - (l) The
District Forum, the State Commission
or the National Commission shall not
admit a complaint 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 (l),
if the complainant satisfies the
District Forum, the State Commission
or the National 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, the State Commission
or the District Forum, as the case
may be, records its reasons for
condoning such delay.
50. Limitation period. - (l) The
District Forum, the State Forum or
the National Forum shall not
admit a complaint 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
(l), if the complainant satisfies the
District Forum, the State Forum or
the National Forum, 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 Forum, the State Forum
or the District Forum, as the case
may be, records its reasons for
condoning such delay.
No change except that
the word Commission
has been substituted by
the word Forum.
24B. Administrative Control.—(1)
The National Commission shall have
administrative control over all the
State Commissions in the following
matters, namely:—
51. Administrative Control.—
(1) The National Forum shall have
the authority to lay down such
normative standards as the
President may like to in
consultation with the Central
Government from time to time to
make the provisions for better
protection of the interests of
consumers and for that purpose
shall have administrative control
over all the State Fora in the
following matters, namely:—
This will enable the
National Forum to have
administrative control
over the State Forums
and monitor the
performance of the State
Fora.89
(i) calling for periodical return
regarding the institution, disposal
&pendency of cases;
(a) monitoring performance of
the State Fora in terms of their
disposal by calling for periodical
returns regarding the institution,
disposal and pendency of
cases;
(b) investigating into any
allegations against the
President and Members of a
State Forum and submitting
inquiry report to the State
Government concerned along
with copy endorsed to the
Central Government for
necessary action.
A number of complaints
against the President
and Members of State
Fora are being received.
This provision will enable
the National Forum to
investigate into the
allegations.
(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;
(c ) 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;
This will ensure
uniformity of procedure
in hearing of cases.
(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 without in any way
interfering with their quasi-judicial
freedom.
(d) overseeing the functioning of
the State Fora or the District Fora
either by way of inspection or by
any other means the President
may like to order from time to
time to ensure that the objects and
purposes of the Act are best
served and the normative
standards set by the President
are achieved without in any way
interfering with their quasi-judicial
freedom.
(2) The State Commission shall (2) There shall be a Monitoring 90
have administrative control over all
the District Fora within its jurisdiction
in all matters referred to in subsection
(1).
Cell to be constituted by the
President of the National Forum
to oversee the functioning of the
State Fora from the
administrative point of view.
Composition of the Cell shall be
decided in consultation with the
Central Government or State
Government.
(3) The State Forum shall
have administrative control over
all the District Fora within its
jurisdiction in all matters
referred to in sub-section (1)&
(2).
This will enable the State
Forum to have
administrative control
over the District Forum.
(4) Notwithstanding anything
contained in any of the
provisions of this Act, the
Central Government may lay
down such norms and
standards of performance of
various functionaries of the
National Forum, State Fora and
District Fora including the
President and the members of
the Consumer Fora and also on
other matters concerning the
Consumer Fora as may be
considered necessary and
supervise their functions with a
view to furthering the interest of
the consumers, to protect their
rights and to secure them
speedy, inexpensive and simple
dispensation of justice in
Consumer Fora. In this regards
any directions, norms and
standards made by the Central
Government to/ for the
Proposed provision of
Section 24B (4) and (5)
seek to empower the
Central Government to
fix norms and standards
of performance and to
issue directions in this
regard and also to call
for any information from
the Consumer Fora
whereas sub-section 5(ii)
empowers the
concerned State
Government to call for
any information from the
State Forum and District
Fora in the State.91
Consumer Fora for compliance
shall be final and binding on the
Consumer Fora.
(5) (i) The Central Government
may , by a general or special
order, call upon the National
Forum, State Fora and the
District Fora to furnish,
periodically or as and when
required, any information
including the pendency of cases
in such form as may be
prescribed; and
(ii) The State Government, by
general or special order, call
upon the State Forum or any
District Forum in the State to
furnish, periodically or as and
when required, any information
including pendency of cases in
such form as may be prescribed
by the State Government.
25. Enforcement of orders of the
District Forum, the State Commission
or the National Commission. — (1)
Where an interim order made under
this Act, is not complied with the
District Forum or the State
Commission or the National
Commission, as the case may be,
may order the property of the person,
not complying with such order to be
attached
52. Enforcement of orders of
the District Forum, the State
Forum or the National Forum. —
(1) Every order made by a
District Forum, State Forum or
the National Forum shall be
enforced by it in the same
manner as if it were a decree
made by a Court in a suit
pending therein, and it shall be
lawful for the District Forum, the
State Forum or the National
Forum to send, in case of its
inability to execute such order,
to the court within the local limit
of whose jurisdiction :-92
(a) in the case of an order
against a company, the
registered office of the
company is situated; or
(b) in the case of an order
against any other person, place
where the person concerned
voluntarily resides or carries on
business or personally works
for gain, is situated;
to pass necessary direction to
the law and authorities to
execute the order.
(2) No attachment made under
sub-section (1) shall remain in force
for more than three months at the
end of which, if the non-compliance
continues, the property attached may
be sold and out of the proceeds
thereof, the District Forum or the
State Commission or the National
Commission may award such
damages as it thinks fit to the
complainant and shall pay the
balance, if any, to the party entitled
thereto.
(2) Where any order made by
the District Forum, State Forum
or the National Forum, as the
case may be, is not complied
with, such person not
complying with the order shall
be required to pay not less than
five hundred rupees or one-half
per cent of the value of the
amount awarded, whichever is
higher, for each day of delay of
such non-compliance of the
order till it is paid, in addition to
the payment of the awarded
amount.
This is intended to
ensure speedy
implementation of the
orders of the Consumer
Fora.
(3) Where any amount is due from
any person under an order made by
aDistrict Forum, State Commission or
the National Commission, as the
case may be, the person entitled to
the amount may make an application
to the District Forum, the State
Commission or the National
Commission, as the case may be,
and such District Forum or the State
Commission or the National
Commission may issue a certificate
for the said amount to the Collector of
the district (by whatever name called)
and the Collector shall proceed to
recover the amount in the same
(3) Without prejudice to the
provisions contained in subsections
(1) and (2), where any
order made under this Act is not
complied with the District
Forums or the State Forum or
the National Forum, as the case
may be, may order the property
of the person, not complying
with such order to be attached.93
manner as arrears of land revenue.
(4) No attachment made under
sub-section (3) 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 Forum or the National
Forum may award such
damages, as it thinks fit, to the
complainant and shall pay the
balance, if any, to the party
entitled thereto.
(5) Where any amount is due
form any person under any
order made by a District Forum,
State Forum or the National
Forum, as the case may be, the
person entitled to the amount
may make an application to the
District Forum, the State Forum
or the National Forum, as the
case may be, and such District
Forum or the State Forum or the
National Forum may issue a
certificate for the said amount to
the Collector of the district (by
whatever name called) and the
Collector shall proceed to
recover the amount in the same
manner as arrears of land
revenue.
This is intended to
facilitate recovery of the
amount due to a
consumer by virtue of an
order of a Consumer
Fora.
(6) Notwithstanding the
provisions contained in this
section, it shall be the duty of
the party against whom the
order is passed by the District
Forum or the State Forum or the
National Forum, as the case may
be, to report back to the District
Forum or the State Forum or the
National Forum, as the case may
be, about the status of
implementation of the order and
the proceedings would be 94
deemed to be continuing till the
implementation of the order and
it shall be the responsibility of
the District Forum or the State
Forum or the National Forum, as
the case may be, to monitor the
same till its implementation and
to take appropriate penal action
wherever necessary.
26. 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
53. Dismissal of frivolous or
vexatious complaints. — Where
a complaint instituted before the
District Forum, the State Forum or
the National Forum as the case
may be, 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 fifty thousand rupees,
as may be specified in the order
27. 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
thousands rupees but which may
extend to ten thousandrupees, or
with both.
54. Penalties. — (1)Wherea
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 Forum or
the National Forum, 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 ten thousand rupees
but which may extend to fifty
thousand rupees, or with both:
The word “Commission”
has been substituted by
the word “Forum”.
The amount of fine is
being increased to deter
repetition of the offence.
(2) Notwithstanding anything
contained in the Code of Criminal
(2) Notwithstanding anything
contained in the Code of Criminal
The word “Commission”
has been substituted by 95
Procedure, 1973, (2 of 1974), the
District Forum or the State
Commission or the National
Commission, as the case may be,
shall have the power of a Judicial
Magistrate of the first class for the
trial of offences under this Act, and
on such conferment of powers, the
District Forum or the State
Commission or the National
Commission, as the case may be, on
whom the powers are so conferred,
shall be deemed to be a Judicial
Magistrate of the first class for the
purpose of the Code of Criminal
Procedure, 1973 (2 of 1974).
Procedure, 1973, (2 of 1974), the
District Forum or the State Forum
or the National Forum, as the
case may be, shall have the power
of a Judicial Magistrate of the first
class for the trial of offences under
this Act, the District Forum or the
State Forum or the National
Forum, as the case may be, shall
be deemed to be a Judicial
Magistrate of the first class for the
purpose of the Code of Criminal
Procedure, 1973 (2 of 1974).
the word “Forum”.
(3) All offences under this Act
may be tried summarily by the District
Forum or the State Commission or
the National Commission, as the
case may be.
(3) All offences under this Act
may be tried summarily by the
District Forum or the State Forum
or the National Forum, as the
case may be.
The word “Commission”
has been substituted by
the word “Forum”.
27A. 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
55. Appeal against order
passed under section 54 - (1)
Notwithstanding anything
contained in the Code of Criminal
Procedure, 1973 (2 of 1974), an
appeal under section 54, both on
facts and on law, shall lie from -
(a) the order made by the District
Forum to the State Forum ;
(b) the order made by the State
Forum to the National Forum;
and
(c) the order made by the National
Forum to the Supreme Court.
The word “Commission”
has been substituted by
the word “Forum”.96
Supreme Court.
(2) Except as aforesaid, no
appeal shall lie to any court from any
order of a District Forum or a State
Commission or the National
Commission.
(3) Every appeal under this
section shall be preferred within a
period of thirty days from the date of
an order of a District Forum or a
State Commission or, as the case
may be, the National Commission :
Provided that the State Commission
or the National Commission or the
Supreme Court, as the case may be,
may entertain an appeal after the
expiry of the said period of thirty
days, if, it is satisfied that the
appellant had sufficient cause for not
preferring the appeal within the
period of thirty days.
(2) Except as aforesaid, no
appeal shall lie to any court from
any order of a District Forum or a
State Forum or the National
Forum.
(3) Every appeal under this
section shall be preferred within a
period of thirty days from the date
of an order of a District Forum or a
State Forum or, as the case may
be, the National Forum :
Provided that the State Forum or
the National Forum or the
Supreme Court, as the case may
be, may entertain an appeal after
the expiry of the said period of
thirty days, if, it is satisfied that the
appellant had sufficient cause for
not preferring the appeal within the
period of thirty days.97
CHAPTER V
MEDIATION (NEW CHAPTER)
Existing
Provision
Proposed New Provisions Reasons
56. Establishment of Consumer Mediation Cell. - (1)
The State Government shall, establish for the purposes
of this Act, by notification a Consumer Mediation Cell
attached to the District Forum in each district of the
State.
(2) The State Government shall, establish for the
purposes of this Act, by notification a Consumer
Mediation Cell attached to the State Forum; and
(3) The Central Government shall, establish for the
purposes of this Act, by notification a Consumer
Mediation Cell attached to the National Forum.
Mediation is being
proposed as an
alternate dispute
redressal mechanism.
Mediation cells are
required to be set up at
District, State and
National level.
57. Composition and Functions of the Consumer
Mediation Cell.-(1) Each Consumer Mediation Cell shall
consist of a one Coordinator, one Data Operator and a
Helper.
(2) The Coordinator of the Consumer Mediation Cell
attached to District Forum shall be a person of the rank
of Section Officer or equivalent; of the Consumer
Mediation Cell attached to State Forumshall be a person
of the rank of Under-Secretary or equivalent and of the
Consumer Mediation Cell attached to National
Forumshall be a person of the rank of Deputy-Secretary
or equivalent.
(3) the Coordinator of the Mediation Cell shall
(a) maintain the list of empanelled trained Mediators.
(b) maintain data on a daily basis and submit report on a
monthly basis to the State Government or Central
Government as the case may be.
It is necessary to give
the composition and
functions of the
mediation cell.98
58. Empanelment of Mediators.-(1)The National Forum
shall, for the purpose of appointing the mediator between
the parties in complaint or proceedings, prepare a panel
of the mediators within a period of ninety days of the
coming in force of these provisions and put the same on
the Notice Board and website.
(2) Every appointment under sub-section (1) shall be
made by the National Forum on the recommendation of
a selection committee consisting President and two
Members of the National Forum.
(3) The State Forum shall, for the purpose of
appointing the mediator to mediate between the parties
in the complaint or proceedings prepare a panel of the
mediators within a period of ninety days of the coming
into force of these provisions and put the same on the
Notice Board and website.
(4) Every appointment under sub-section (3) shall be
made by the State Forum, on the recommendation of a
selection committee consisting of the President and two
members of the State Forum.
(5) The District Forum shall, for the purpose of
appointing the mediator to mediate between the parties
in the complaints prepare a panel of the mediators within
a period of ninety days of the coming in force of these
provisions and put the same on the Notice Board and
website.
(6) Every appointment under sub-section (5) shall be
made by the District Forum, on the recommendation of a
selection committee consisting of the President and two
members of the District Forum.
(7) The consent of the persons whose names are
included in the panel shall be obtained before
empanelling them.
(8) The panel shall contain Annexure giving details of the
qualifications of the mediators and their professional or
technical experience in different fields.
(9) The panel of mediators appointed under subsections
(1), (3)& (5) shall be for a period of five years from the
The procedure for
empanelment of
mediators has been
laid down.99
date of empanelment or up to the age of 70 years.
Provided empanelled mediator shall be eligible for
further extension for another term of five years or up to
the age of 70 years of age, whichever is earlier, subject
to the condition that he fulfils the other conditions for
appointment mentioned in the chapter and such reappointment
is also made on the basis of the
recommendation of the Selection Committee.
59. Qualifications of persons to be empanelled as
Mediator.-
The following persons shall be treated as qualified and
eligible for being enlisted in the panel of mediators under
Section 58, namely:
(a) Retired Judicial officers;
(b) Academicians, Experts, other professionals and
sector specialists with at least five years standing;
(c) retired bureaucrats and executives;
(d) Institutions, which are themselves experts in
mediation and have been taking up consumer cause.
Qualifications for
empanelment of
mediators have been
laid down with a view
to facilitating mediation
effectively.
60. Disqualifications of Mediators.-
The following persons shall be deemed to be disqualified
for being empanelled as Mediators:
a) any person who has been adjudged as insolvent;
b) persons against whom criminal charges involving
moral turpitude are framed by a criminal court and
are pending;
c) persons who have been convicted by a criminal
court for any offence involving moral turpitude;
d) any person against whom disciplinary
proceedings have been initiated by the
appropriate disciplinary authority which are
pending or have resulted in a punishment;
e) any person who is interested or connected with
the subject-matter of dispute or is related to
The grounds of
disqualifications of
mediators have been
prescribed to avoid
arbitrariness.100
anyone of the parties or to those who represent
them, unless such objection is waived by all the
parties-in writing;
f) any legal practitioner who has or is appearing for
any of the parties in the suit or in any other suit or
proceedings;
g) any person who is office bearer of a political party
h) any person who has been declared medically
unfit.
i) such other categories of persons as may be
notified by the National/ State Commission
61. Preference for nominating mediators from the
panel.-
The Forum shall, while nominating any person from the
panel of mediators referred to in Section 58, consider his
suitability for resolving the consumer dispute(s) involved
and shall give preference to those who have proven
record of successful mediation or who have special
qualification or experience in the mediation.
This will enable
efficient persons to
handle mediation.
62. Duty of mediator to disclose certain facts.-
(1) When a person is approached in connection with his
possible empanelment as a mediator, he shall disclose
in writing to the parties, any circumstances likely to give
rise to a justifiable doubt as to his independence or
impartiality.
(2) Every mediator shall, from the time of his
appointment and throughout the continuance of the
mediation proceedings, without delay, disclose to the
parties in writing, about the existence of any of the
circumstances referred to in sub-section (1).
This will enable
transparency in
empanelling
mediators.
63. Cancellation of appointment.-
Upon information furnished by the Mediator under
section 34 or upon any other information received from
the parties or other persons, if the District Forum/
Commission, in which the complaint or proceeding is 101
filed, is satisfied, after conducting such inquiry as it
deems fit, and after giving a hearing to the Mediator, that
the said information has raised a justifiable doubt as to
the Mediator's independence or impartiality, it shall
cancel the appointment by a reasoned order and replace
him by another Mediator.
64. Removal or deletion from Panel.-
A person whose name is placed in the panel referred to
in Section 58 may be removed or his name may be
deleted from the said panel, by the District Forum, if:
a)he resigns or withdraws his name from the panel for
any reason;
b)he is declared insolvent by any Court or is declared to
be of unsound mind;
c)he exhibits or displays conduct, during the continuance
of the mediation proceedings, which is unbecoming of a
Mediator;
d)the District Forum which empanelled, upon receipt of
information, if it is satisfied, after conducting such inquiry
as it deems fit, and is of the view, that it is not possible or
desirable to continue the name of that person in the
panel,
Provided that, before removing or deleting his name,
under clauses (c) and (d) the District Forum/
Commission shall hear the Mediator whose name is
proposed to be removed or deleted from the panel and
shall pass a reasoned order.
The grounds of
removal or deletion
from panel of
mediators have been
prescribed.
65. Procedure of Mediation.-
(1) the Mediator shall follow the procedure hereinafter
mentioned:
a)During the first appearance with the Mediator he shall
fix, in consultation with the parties, a time schedule, the
dates and the time of each mediation session, where all
parties have to be present;
b)The mediation shall take place in the Mediation Cell
It is necessary to
prescribe the
procedure of
mediations to make it
effective and less time
consuming.102
located within the premises of the Forum;
c)he may conduct joint and separate meetings with the
parties;
d)Each party shall, within ten days before the first
appearance, provide to the Mediator a brief
memorandum. setting forth the issues, which according
to it, need to be resolved, and its position in respect to
those issues and all information reasonably required for
the Mediator to understand the issue; such memoranda
shall also be mutually exchanged between the parties;
e)Each party shall furnish to the mediator such other
information as may be required by him in connection with
the issues to be resolved.
f)The parties shall be present personally or through their
agent. No party to a dispute shall be entitled to be
represented by a legal practitioner in any mediation
proceedings.
66. Time limit and Number of Sittings for completion
of mediation.-
The mediation shall stand terminated on the expiry of
thirty days from the date fixed for the first appearance of
the parties before the Mediator. Not more than three
sittings for mediation shall be allowed after first
appearance.
Provided that the Coordinator of Consumer Mediation
Cell may, upon request by any of the parties, and upon
hearing all the parties, grant an extension of time but
such extension shall not be beyond a further period of 15
days and number of sittings shall not exceed two.
It is necessary to
prescribe time limit and
number of sittings for
completion of
mediation as the
purpose behind this is
to provide speedy
disposal of consumer
disputes.
67. Mediator not bound by Evidence Act, 1872 or
Code of Civil Procedure, 1908.-
The mediator shall not be bound by the Code of Civil
Procedure, 1908 or the Evidence Act, 1872, but shall be
guided by principles of natural justice, have regard to the
rights and obligations of the parties, usages of trade, if
any, and the circumstances of the dispute.103
68. Failure of the parties to comply.-
If a party fails to attend a session or a meeting notified
by the Mediator or fails to produce such other
information during the mediation as may be required by
the Mediator within the time given, the Mediator can
apply to the District Forum in which the complaint or
proceedings is filed, to issue appropriate directions to
that party to attend before the Mediator or produce
relevant information, as the case may be, and if the
District Forum finds that a party is absenting himself
before the Mediator without sufficient reason, the
complaint will be referred back to District Forum.
69. Settlement Agreement .-
(1) Where an agreement is reached between the parties
in regard to all the issues in the complaint or
proceedings or some of the issues, the same shall be
reduced to writing and signed by the parties or their
agent.
(2) The agreement of the parties so signed and attested
shall be submitted to the mediator who shall, with a
covering letter signed by him, forward the same to the
Forum in which the complaint or proceeding is pending.
(3) Where no agreement is arrived at between the
parties, before the time limit stated in Section 38 or
where, the mediator is of the view that no settlement is
possible, he shall report the same to the said Forum in
writing.
It is necessary to
prescribe for
settlement of
agreement.
70. Offer of settlement by parties.-
(a) Any party to the suit may, ‘without prejudice’, offer a
settlement to the other party at any stage of the
proceedings, with notice to the mediator.
(b) Any party to the suit may make a, ‘with prejudice’
offer, to the other party at any stage of the proceedings,
with notice to the mediator. 104
71. Recording settlement and passing of Order by
District Forum.-
(1) Within seven days of the receipt of any settlement,
the Forum/ Commission shall pass an order in
accordance with the settlement so recorded, if the
settlement disposes of all the issues in the complaint.
Provided that if the settlement disposes of only certain
issues arising in the complaint or proceeding, the District
Forum shall record the settlement on the date fixed and
shall include the terms of the said settlement in the
Order, while deciding the other issues.
(2) Communication between mediator and the
District Forum: In order to preserve the confidence of
parties in the District Forum and the neutrality of the
Mediator, there should be no communication between
the Mediator and the District Forum.
Provided that if any communication between the
Mediator and the District Forum is necessary, it shall be
in writing and copies of the same shall be given to the
parties or their agent. Communication between the
Mediator and the District Forum related to the case shall
be limited to:
a)about the failure of party to attend;
b)with the consent of the parties;
c)his assessment that the case is not suited for
settlement through mediation;
d)the parties have settled the dispute or disputes. 105
CHAPTER VI
PRODUCT LIABILITY
(New addition)
Existing
Provision
Proposed Provision Reason
“72. Product Liability and its effects on other laws,--(a)
Except as excluded under paragraph (b), a product liability
action includes all actions brought for or on account of
personal injury, death, or property damage caused by or
resulting from the manufacture, construction, design, formula,
preparation, assembly, testing, service, warning, instruction,
marketing, packaging, or labeling of any product. This
Chapter establishes the exclusive theories of liability for any
civil action for harm caused by a product, irrespective of the
substantive theory or theories underlying the claim, including
any action which before the effective date of the Act would
have been based on any of the following theories:
(1) strict liability in tort;
(2) negligence;
(3) breach of express, implied, or statutorily established
warranty;
(4) failure to discharge a duty to warn or instruct;
(5) misrepresentation, concealment, or nondisclosure; or
(6) public nuisance; or
(7) any other common law theory or theory established by
statute that is the basis for an award of damages for harm
caused
(b) A product liability action does not include any civil
action against a manufacturer or seller for:
(1) harm caused to a product itself;
(2) damage to property under a breach of warranty theory if
prohibited by the Uniform Commercial Code;
(3) commercial loss, including incidental and consequential
damages in commercial setting; or
(4) commercial risks that are the subject of a contract between
the manufacturer or a seller and a buyer. Suits described in
Subsections (1), (2), (3), and (4) shall be governed by the
Uniform Commercial Code.
(c) In any product liability action, no person is liable to a
claimant for mental anguish or emotional harm in the absence
of proof of related and contemporaneous personal physical
injury, illness, or death.106
73. Bases of Product liability:
(a) In any product liability action, a manufacturer shall be
liable to a claimant if the claimant establishes all of the
following by a preponderance of the evidence:
(1) the product was unreasonably dangerous when the
product left the control of the manufacturer because:
a. the product contains a manufacturing defect in that it
deviated in a material way from the manufacturer’s
specifications or from the clear majority of otherwise identical
units manufactured to the same design manufacturing
specifications;
b. the product is defective in design;
c. the product failed to contain adequate instructions of correct
use to avoid danger or warnings of the improper/incorrect use
; or
d. the product did not conform to an express warranty with
respect to the product made by the manufacturer or product
seller;
(2) the defendant was the manufacturer of the actual product
that was the cause of harm for which the claimant seeks to
recover compensatory damages; and
(3) the unreasonably dangerous aspect of the product was the
proximate cause of the harm complained of by the claimant.
(b) Design defects. In any action alleging that a product is
unreasonably dangerous because of a defective design, the
claimant shall prove by a preponderance of the evidence that,
at the time the product left the manufacturer’s control:
(1) the manufacturer knew or, in light of then-existing scientific
and technical knowledge, reasonably should have known of
the danger that caused the claimant’s harm; and
(2) there existed a technologically feasible and practical
alternative design that would have reduced or avoided a
foreseeable risk of harm without significantly impairing the
usefulness or desirability of the product to the group of
persons who are the intended users of the product.
(c) Failure to warn. In any action alleging that a product is
defective because it failed to contain adequate instructions or
warnings:
(1) An adequate warning or instruction is one that a
reasonably prudent person in the same or similar
circumstances would have provided with respect to the
danger and communicates sufficient information on the
dangers and safe use of the product, taking into account the
characteristics of, and the ordinary knowledge common to an 107
ordinary consumer who purchases the product.
(2) The claimant shall prove by a preponderance of the
evidence that, at the time the product left the manufacturer’s
control, the manufacturer knew or, in light of then-existing
scientific and technical knowledge, reasonably should have
known of the danger that caused the claimant’s harm.
(3) A manufacturer shall not be liable for failure to instruct or
warn about a danger that is known or open and obvious to the
user or consumer of the product, or should have been known
or open and obvious to the user or consumer of the product,
taking into account the characteristics of, and the ordinary
knowledge common to, the persons who ordinarily use or
consume the product.
(d) Express warranty. A product may be unreasonably
dangerous because it did not conform to an express warranty
only if the claimant proves by a preponderance of the
evidence that:
(1) the claimant (or a person acting on the claimant’’s behalf)
reasonably relied on an express warranty made by the
manufacturer about a material fact concerning the safety of
the product;
(2) this express warranty proved to be untrue; and
(3) had the representation been true, the claimant would not
have been harmed.
A manufacturer may be subject to liability under this section
although it did not engage in negligent or fraudulent conduct
in making the express warranty.
74 .Exemption from Liability
(1) Misuse and modification,--A product liability action may
not be commenced or maintained against a product seller if,
at the time the injury, death, or property damage occurred, the
product was misused, altered, or modified in a manner that
was not reasonably foreseeable, and such misuse, alteration,
or modification of the product was a cause of the injury, death,
or property damage.
(2) Learned intermediary doctrine ,-- A prescription drug is
not defective due to an inadequate warning or instruction if its
manufacturer provides otherwise adequate warning or
instruction to the physician or other legally authorized person
who prescribes or dispenses that prescription drug for the
claimant.
(3) Warnings to third parties ,-- In any product liability action
based on the failure to provide adequate warnings or
instructions, the manufacturer shall not be liable if:
(a) The product was used in a workplace, and the
manufacturer provided warnings orinstructions to the 108
employer of the claimant, because there was no practical and
feasible means of transmitting them directly to the claimant;
(b) The product was sold as a component or material to be
incorporated into another product, and the manufacturer
provided warnings or instructions to the manufacturer’s
immediate buyer, and the claimant was exposed to the
component or material after it was incorporated or converted
into another product; or
(c) The product was one that may legally be used or
dispensed only by or under the supervision of a class of
experts and the manufacturer employed means reasonably
calculated to make warnings or instructions available to the
using or supervising expert. As used in this subsection,
“means reasonably calculated to make warnings or
instructions available” does not require actual, personal notice
to the expert where such personal notice would be impossible
or impracticable.
4. Alcohol and drug defense:
In any product liability action a manufacturer shall not be liable
if:
(a) The claimant was under the influence of intoxicating
alcohol or any non-over-the counter drug which has not been
prescribed by a physician for use by the claimant; and
(b) The claimant as a result of the influence of the alcohol or
drug was more than 50 percent at fault for such claimant’s
harm.
75. Liability of product sellers:
(a) No product liability action may be asserted against a
product seller other than the manufacturer, unless:
(1) the product seller exercised substantial control over the
aspect of the design, testing, manufacture, packaging, or
labeling of the product that caused the alleged harm for which
recovery of damages is sought;
(2) the product seller altered or modified the product, and the
alteration or modification was a substantial factor in causing
the harm for which recovery of damages is sought;
(3) the product seller made an express warranty as to such
product independent of any express warranty made by a
manufacturer as to such product, such product failed to
conform to the product seller’s warranty, and the failure of
such product to conform to the warranty caused the harm
complained of by the claimant;
(4) the claimant is unable, despite a good faith exercise of due
diligence, to identify the manufacturer of the product;
(5) the manufacturer is not subject to service of process under
the laws of the state; or109
(6) the court determines that the claimant would be unable to
enforce a judgment against the manufacturer;
(b) A product seller other than a manufacturer is liable to a
claimant on the basis of negligence if the claimant establishes
that:
(1) the product seller sold the product involved in such action;
(2) the product seller did not exercise reasonable care: (a) in
assembling,inspecting, or maintaining such product; or (b) in
passing on warnings or instructions from such product’s
manufacturer about the dangers and proper use of such
product; and
(3) such failure to exercise reasonable care was a proximate
cause of the harm complained of by the claimant.
76. Subsequent remedial measures:
(a) In any product liability action, evidence of any measure
taken by a manufacturer after the occurrence of a claimant’s
harm which, if taken previously, would have made the harm
less likely to occur is not admissible to prove liability.
(b) Evidence described in Subsection (a) may be admitted
only if necessary to prove ownership, control, or feasibility of
precautionary measures, if these issues are controverted.
77. Concert of action:
In any product liability action, a manufacturer or product seller
shall not be liable to the claimant on any theory of express or
implied agreement among sellers, parallel behavior, or
independent adherence to industry-wide standards unless the
claimant proves, by a preponderance of the evidence, that the
seller engaged in concert of action. “Concert of action” means
the conscious and deliberate agreement to, acknowledgment
of, and collaborative participation in wrongful conduct by two
or more persons who do not have the relationship of master
and servant, principal and agent, parent and subsidiary,
affiliates, or employer and employee.
78. Product Identification Requirement:
Proof that the product seller designed, formulated, produced,
constructed, created, assembled, or rebuilt the type of product
in question is not proof that the product seller formulated,
produced, constructed, created, assembled, or rebuilt the
actual defective product in the product liability action. A
product seller may not be held liable in a product liability
action based on market share, enterprise, or industry-wide
liability.110
CHAPTER VII
MISCELLANEOUS (Existing Chapter IV)
Existing Provision Proposed Provision Reason
28. Protection of action
taken in good faith.-No suit,
prosecution or other legal
proceedings shall lie against
the members oft~ 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.
79. 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 Forum or the
National Forum or any officer or person
acting under the direction of the District
Forum, the State Forum or the National
Forum for executing any order made by it or
inrespect 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.
The word
“Commission”
has been
substituted by
the word
“Forum”.
28A. Service of Notice, etc.
-(1) All notices, required by
this Act to be served, shall be
served in the manner
hereinafter mentioned in subsection
(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
80. 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
byregistered 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
Forum or the National Forum, as the case
may be, or by any other means of
transmission of documents (including FAX
message) and for the purpose of service of
notices to electronic intermediary, the same
shall be served at the address provided by
the electronic intermediary on the electronic
platform from where it provides services as
The word
“Commission”
has been
substituted by
the word
“Forum”.111
other means of transmission
of documents (including FAX
message).
(3) When an acknowledgment
or any other receipt
purporting to be signed by the
opposite party or his agent or
by the complainant is
received by the District
Forum, the State Commission
or the National Commission,
as the case may be, or postal
article containing the notice is
received back by such District
Forum, State Commission or
the National Commission,
with an endorsement
purporting to have been made
by a postal employee or by
any person authorized by the
courier service to the effect
that the opposite party or his
agent or complainant had
refused to take delivery of the
postal article containing the
notice or had refused to
accept the notice by any other
means specified in Subsection
(2) when tendered or
transmitted to him, the District
Forum or the State
Commission or the National
Commission, as the case may
be, shall declare that the
notice had been duly served
on the opposite party or to the
complainant.
Provided that where the
notice was properly
addressed, pre-paid and duly
sent by registered post
acknowledgment due, a
declaration referred to in this
sub-section shall be made
notwithstanding the fact that
electronic intermediary and for such purpose
the electronic intermediary shall designate a
grievance officer to accept and process such
notices and provide such information,
documents or records as required from it.
(3) When an acknowledgment or any other
receipt purporting to be signed by the
opposite party or his agent or by the
complainant is received by the District
Forum, the State Forum or the National
Forum, as the case may be, or postal article
containing the notice is received back by
such District Forum, State Forum or the
National Forum, with an endorsement
purporting to have been made by a postal
employee or by any person authorized by
the courier service to the effect that the
opposite party or his agent or complainant
had refused to take delivery of the postal
article containing the notice or had refused
to accept the notice by any other means
specified in Sub-section (2) when tendered
or transmitted to him, the District Forum or
the State Forum or the National Forum, as
the case may be, shall declare that the
notice had been duly served on the opposite
party or to the complainant.
Provided that where the notice was properly
addressed, pre-paid and duly sent by
registered post acknowledgment due, a
declaration referred to in this sub-section
shall be made notwithstanding the fact that
the acknowledgment has been lost or
mislaid, or for any other reason, has not
been received by the District Forum, the
State Forum or the National Forum, as the
case may be, within thirty days from the date
of issue of notice.
(4) All notices required to be served on an
The word
“Commission”
has been
substituted by
the word
“Forum”.112
the acknowledgment has
been lost or mislaid, or for
any other reason, has not
been received by the District
Forum, the State Commission
or the National Commission,
as the case may be, within
thirty days from the date of
issue of notice.
(4) All notices required to be
served on an opposite party
or to complainant shall be
deemed to be sufficiently
served, if addressed in the
case of the opposite party to
the place where business or
profession is carried and in
case of complainant, the
place where such person
actually and voluntarily
resides.
opposite party or to complainant shall be
deemed to be sufficiently served, if
addressed in the case of the opposite party
to the place where business or profession is
carried and in case of complainant, the place
where such person actually and voluntarily
resides.
29. Power to remove
difficulties.-(l) 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.
81. Power to remove difficulties.-(l) 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.
(2) Every order made under this section
shall, as soon as may be after it is made,
be laid before each House of Parliament. 113
(3) If any difficulty arises in
giving effect to the provisions
of the Consumer Protection
(Amendment) Act, 2002,the
Central Government may, by
order, do anything not
inconsistent with such
provisions for the purpose of
removing the difficulty:
Provided that no such order
shall be made after the expiry
of a period of two years from
the commencement of the
Consumer Protection
(Amendment) Act, 2002.
(4) Every order made under
sub-section (3) shall be laid
before each House of
Parliament.
29A. 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.
82. Vacancies or defects in appointment
not to invalidate orders.-No act or
proceeding of the District Forum, the State
Forum or the National Forum shall be
invalid by reason only of the existence of any
vacancy amongst its members or any defect
in the constitution thereof.
The word
“Commission”
has been
substituted by
the word
“Forum”.
30. Power to make rules.-(1)
The Central Government
may, by notification, make
rules for carrying out the
provisions contained in clause
(a) of sub-section (1) of
section 2, clause (b) of subsection
(2) of section 4, subsection
(2) of section 5, subsection
(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 subsection
(1) and sub-section
83. Power to make rules.-
(1) The Central Government may, by
notification, make rules and regulations
for carrying out any of the provisions
contained in the Consumer Protection
Act, 1986 and all its subsequent
amendments.
(2) The State Government may, by
notification, make rules and regulations
for carrying out the provisions contained
in the Consumer Protection Act, 1986 and
all the subsequent amendments to the
Act in respect of the State Forum and
District Fora concerned with the State 114
(2) of section 20, section 22
and section 23of this Act.
(2) The State Government
may, by notification, make
rules for carrying out the
provisions contained in clause
(b) of sub-section (2) and
sub-section (4) of section 7,
clause (b) of sub-section (2)
and sub-section (4) of section
8A, clause (b) of sub-section
(1) and sub-section 3 of
section 10, clause (c) of subsection
(1) of section 13,
clause (hb) of sub-section (1)
and sub-section (3) of section
14, section 15 and clause (b)
of sub-section (1) and subsection
(2) of section 16 of
this Act.
subject to the previous approval of the
Central Government in order to ensuring
uniformity in practice, procedure, pay
structure and other thing among the
State Fora and District Fora in the
country.
30A. Power of the National
Commission to make
regulations -(1) The National
Commission may, with the
previous approval of the
Central Government, by
notification, make regulations
not inconsistent with this Act
to provide for all matters for
which provision is necessary
or expedient for the purpose
of giving effect to the
provisions of this Act.
(2) In particular and without
prejudice to the generality of
the foregoing power, such
regulations may make
provisions for the cost of
adjournment of any
proceeding before the District
Forum, the State Commission
or the National Commission,
as the case may be, which a
party may be ordered to pay.
to be deleted.
31. Rules and regulations to 84. Rules and regulations to be laid 115
be laid before each House
of Parliament.-(1) Every rule
and every regulation made
under this Act shall 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 theexpiry
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 shall thereafter
have effect only in such
modified form or be of no
effect, as the case may be;
so, however, that any such
modification or annulment
shall be without prejudice to
the validity of anything
previously done under that
rule or regulation.
(2) Every rule made by a
State Government under this
Act shall be laid as soon as
may be after it is made,
before the State Legislature.
before each House of Parliament.-(1)
Every rule and every regulation made under
this Act shall 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 shall thereafter
have effect only in such modified form or be
of no effect, as the case may be; so,
however, that any such modification or
annulment shall be without prejudice to the
validity of anything previously done under
that rule or regulation.
(2) Every rule made by a State Government
under this Act shall be laid as soon as may
be after it is made, before the State
Legislature.
No Change
New addition 85.Directions by the Central
Government.-(1) Without prejudice to the
foregoing provisions of this Act the
National Forum, the State Fora and the
District Fora, in exercise of their powers
or the performance of their functions
under this Act, shall be bound by such
directions as the Central Government
may issue from time to time in
furtherance of consumers’ welfare,
Provisions for
directions by
Central
Government to
the Consumer
Fora added.116
protection of consumers’ rights and
ensuring speedy, inexpensive and
simple dispensation of justice to the
consumers in the Consumer Fora;
(2)If at any time the Central
Government is of the opinion that the
National Forum or such of the State Fora
or District Fora has/have persistently
made default in complying with any
direction given by the Central
Government under this Act or in the
discharge of the duties imposed on it by
or under the provisions of this Act
whereby the objects of this Act are
suffering the Central Government may
,by notification and for reasons to be
specified therein , supersede the
National Forum or such of the State Fora
or District Fora, for such period not
exceeding six months, as may be
specified in the notification;
 Provided that before issuing any
such notification the Central
Government shall give a reasonable
opportunity to the National Forum or
such of the State Fora or District Fora to
make representation against the
proposed supersession and shall
consider such representations of the
Consumer Fora.
(3) Upon publication of a notification
under sub-section (2) the President and
members of such Consumer Fora shall as
from the date of supersession, vacate
their offices as such and all powers,
functions and dutiesof the concerned
Consumer Fora under the provisions of
this Act shall be exercised by the Central
Government or such authority as the
Central Government may specify in this
behalf, until the Consumer Fora is
reconstituted;117
Provided that the Central Government
shall reconstitute the Consumer Fora
under the provisions of this Act by fresh
appointment to the post of President and
members before the expiry of the period
of supersession.