Consumer Protection Act, 1986

Total Sections 31
Chapters IV

Introduction

In India, with industrialisation and economic

development, the population of consumers
and the volume of consumption of goods and
services increased. The Contract Act, 1872
and the Sale of Goods Act, 1930 provided
remedies but they were time consuming and
expensive.
Consumer issues started gaining importance.
The interests of consumers were highlighted
by media, nongovernment organisations,
social activists and even business concerns.

Constitutional Validity of Consumer

Protection Act, 1986

In State of Karnataka v. Vishwabharathi

House Building Co-op. Society, AIR 2003 SC
1043 the principal question involved in both
of appeals and writ petition was whether
COPRA 1986 is constitutionally valid. In view
of the constitutional scheme relating to
legislative competence of parliament and
State legislature, there cannot be any doubt
or dispute that the Parliament has the
requisite legislative competence to enact
COPRA 1986.

Objects of Consumer Protection Act

(COPRA),1986

In

construing the provisions of

COPRA 1986 it is to be kept in mind
that the said Act is a social benefit
oriented legislation. Its provisions
should therefore be construed in
favour of consumer(LDA v.
M.K.Gupta, AIR 1994 SC 787)

Objects of the Act

a) Better Protection of Interests of Consumers: The
Act seeks to provide consumer councils and
authorities for settlement of consumer disputes.
b) Protection of Rights of Consumers: The Act seeks
to promote and protect the rights of consumers such
as:
i.
The right to be protected: Against marketing of
goods and services which are hazardous to life
and property.
ii. The right to be informed: About the quality,
quantity, potency, purity, standard and price of
goods and services so as to protect the
consumers against unfair trade practices.

Objects of the Act

iii. The right to be assured: Wherever
possible, access to goods and services at
competitive prices.
iv. The right to be heard: And to be assured
that consumers interest will receive due
consideration at appropriate forums.
v. The right to seek redressal: Against unfair
trade practices or restrictive trade practices
or unscrupulous exploitation of consumers.

Objects of the Act

vi. Right to consumer education: By publishing material
and magazines for the benefit of consumers, such as
magazine like Upbhokta Jagran.
c) Consumer Protection Councils: The above said objects
are sought to be promoted and protected by the
consumer protection councils established at the central,
state and district levels.
d) Quasi-judicial Machinery for Speedy Redressal of
Consumer Disputes: The Act seeks to provide speedy and
simple redressal to consumer disputes. For this purpose,
the following consumer disputes redressal agencies are
envisaged:
i. District Forums: at district level.
ii. State Commissions: at State level.
iii. National Commission: at Central or National level.

Consumer
According to the Act, Consumer means any person
who:
a) Buys any goods for 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 who obtains such
goods for resale or for any commercial purpose; or

Consumer
b) Hires or avails of any services for a consideration
which has been paid or promised or partly paid or
partly promised, or under 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 for any commercial
purpose.

Consumer
Commercial purpose does not include
use by a person of goods bought and
used by him and services availed by him
exclusively for the purposes of earning
his livelihood by means of selfemployment.
To put briefly, consumer is a person
who buys any goods or hires or
avails of any services for a
consideration.

Case

A charitable trust was running a diagnostic

centre, where patients taking advantage of Xray, CT scan etc. were ordinarily required to
pay for the same and only 10% of them being
provided free service. It was held that the
machines purchased by the Trust for use in
the diagnostic centre were meant for
commercial purpose, and therefore the
Trust was not a consumer. - Kalpavraksha
Charitable Trust vs Toshniwal Brothers
(Bombay) (P) Ltd. - ((2000) I.S.C.C. 512).

Complainant
According to the Act,
Complainant means
a)a consumer.
b) any voluntary consumer association registered
under the companies act, 1956 or under any other
law for the time being in force.
c) the central government or any state government.
d) one or more consumers, where there are
numerous consumers having the same interest, in
case of a death of a consumer, his legal heir or
representative;
who
or
which
makes
a
complaint.S.2(1)(b)

Complainant
Case Where Insurance company pays and settles
the claim of the insured, it can file a complaint
for the loss caused to the insured goods by
negligence of goods/service providers. For
example, when loss is caused to such goods
because of negligence of transport company,
the insurance company can file a claim against
the transport company. - New India Assurance
Company Ltd. v. Green Transport Co. ((1991),
CPJ(I) Delhi).

Complaint
& Restrictive Trade Practice

Complaint
Complaint means any allegation in writing
made by a complainant with a view to
obtaining any relief under the Act.
Restrictive Trade Practice
According to the Act, 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 goods or
services in such a manner as to impose on
the
consumers
unjustified
costs
or

Complaint
& Restrictive Trade Practice

..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 prices.
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.

Complaint
& Restrictive Trade Practice

Case A furniture dealer offers to sell a Sofa

at Rs. 20,000 and Double Bed at Rs.
15,000. He has an offer that whoever
will buy Sofa and Bed both he will
charge Rs. 30,000 only. Here the
choice is open to the customer to buy
the products single or composite. This
is not a restrictive trade practice.

Unfair Trade Practice

Unfair trade practice means a trade
practice, which, for the purposes 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 practices.S.2(1)(r)

Unfair Trade Practice

The Act also lists out some of the practices as unfair
trade practice,
like misleading advertisements and making of false
statements,
permitting publication of any advertisement for the
sale at a bargain price that are not intended to be
offered for sale at bargain price,
or permitting the offering of gifts and prizes with the
intention of not providing them or with holding
gifts/prizes after declaration of result of the scheme,
or not conforming to prescribed standards or
hoarding
of
goods
or
manufacturing
of
spurious(fake) goods.

Unfair Trade Practice

Example Akash sold a second hand computer to
Bharat representing it to be a new one.
Here Bharat can make a complaint
against Akash for adopting an unfair
trade practice.

Defect
A defect is defined to mean any fault,
imperfection or shortcoming in the quality,
quantity, potency, purity or standard
which is required to be maintained under
any law or contract.S.2(1)(f)
Example Ajit bought a computer from Bimal. It was
not working properly since day one. Ajit can
make a complaint against Bimal for
supplying a defective computer.

Deficiency
Deficiency
It is defined to mean any fault, imperfection,
shortcoming or inadequacy in the quality,
nature and
manner of performance which is required
to be maintained under any law or
contract.S.2(1)(g)

Deficiency
Case A boarded a train. The compartment in which he
travelled was in bad shape; fans and shutters of
windows were not working, rexine of the berth was
badly torn and there were rusty nails which caused
some injury to his wife who was also travelling along
with him. A made a complaint against Railways for
deficiency in service. It was held that the faults or
short-coming pointed out in the plaint constituted
deficiency in service and the compensation was
awarded to A. - General Manager, South Eastern
Railway v. Anand Prasad Sinha ((1991), CPJ 10 (12) NC).

Person
The expression person for the
purposes of the Act shall include:
a) A firm whether registered or not
b) A hindu undivided family
c)A co-operative society
d) Every other association of persons
whether registered under the Societies
Registration Act
or not.

S.4 The Central Consumer Protection

Council

(1) The Central Government may, 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
(2) The Central Council shall consist of the
following members, namely, (a) the Minister in charge of [consumer affairs] in
the Central Government, who shall be its
Chairman, and
(b) such number of other official or non-official
members representing such interests as may be
prescribed.

S.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 right to be informed about the
quality, quantity, potency, purity, standard
and price of goods [or services, as the
case may be], so as to protect the
consumer against unfair trade practices;

S.6 Objects of the Central

Council

(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 consumers' interests will receive due
consideration at appropriate forums;
(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.

Under the Consumer Protection Council Rules 1987,

the membership of the Council is restricted to 150
members including the Central Minister in charge of
Consumer Affairs as the Chairman. The term of the
Council is three years.
To
monitor
the
implementation
of
the
recommendations of the Council, the Central
Government may constitute a standing working group
from amongst the members of the council under the
Chairmanship of the Member Secretary of the Council.
The Council shall meet as and when necessary, but at
least one meeting of the Council shall be held at such
time and place as the Chairman may think fit.

S.7 The State Consumer Protection Councils

(1) The State Government may, 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
1[(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.
(3) The State Council shall meet as and when necessary
but not less than two meetings shall be held every year.

 District

Consumer
Protection
Council In order to promote and
protect the rights of consumers,
within the district, the Consumer
Protection Act, provides for the
establishment of a District Consumer
Protection Council in every district.

 It

shall consist of the Collector of the

district as its Chairman and such
number of other official and nonofficial members representing such
interests as may be prescribed by
the State Government.
It shall meet as and when necessary
but not less then two meetings shall
be held every year. The Chairman
shall decide the time and place of

Consumer Disputes Redressal Agencies

There are three such agencies a) District Forum b) State

Commission and c) National Commission
( http://ncdrc.nic.in/).
District Forum is for one or more district and a consumer
can file his claim if the limit of the claim is upto Rs. 20
lakhs. Appeal from the decision of the District Forum is to
be filed within 30 days of its order to the State
Commission. A State Commission is for one or more states.
A consumer can file his claim if the claim is above Rs. 20
lakhs but below one crore. Appeal from the decision of the
State Commission can be filed within 30 days of its order
to the National Commission.
National Commission is one for the whole of India. A
Consumer can file his claim if it is more than Rs. 1 crore.
Appeal from the decisions of the National Commission can
be made in the Supreme Court of India.

S.10 Composition of the District Forum

1[(1) Each District Forum shall consist of (a) a person who is, or has been, or is qualified to be a
District Judge, who shall be its President;
(b) two other members one of whom shall be a
woman, who shall have the following qualifications,
namely: (i) be not less than thirty-five years of age,
(ii) possess a bachelors 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,
public affairs or administration

Manner of Making a Complaint

A

complaint can be made by any

complainant in relation to any goods
sold, delivered or agreed to be sold
or delivered or any service provided
or agreed to be provided. Complaint
shall be filed along with fees as
prescribed. Fees prescribed is very
nominal.

Cost of Filing a Case

For

example in the District Forum located in

Delhi the fee structure is as follows
1. Up to 1 Lakh Rs.100
2. 1 Lakh & above but less that 5 Lakhs Rs.200
3. 5 Lakhs & above but less that 10 Lakhs
Rs.400
4. 10 Lakhs & above but less that 20 Lakhs Rs.
500
5. 20 lakhs - 50 lakh is Rs.2,000 and 50 lakhs - 1
crore is Rs.4,000
6. Above 1 crore Rs.5,000.

Manner of Making a Complaint

Admissibility

of the complaint shall

ordinarily be decided within twenty
one days of the receipt of complaint.
A complaint may be proceeded with
or rejected.
However
before
rejection,
an
opportunity to be given to the
complainant for hearing.

Procedure on Admission of Complaint

If a complaint relates to any goods, a copy of the
admitted complaint should be given to the opposite
party within 21 days for him to give his version
within thirty days.
If the opposite party denies or disputes the
complaint or fails or omits to take any action within
the time given, (Initial 30 days and can be extended
by 15 days) then the complaint shall be proceeded
further.
If the defect in goods needs analysis or testing by a
laboratory, a sample of the goods shall be sent to
the laboratory for a report within forty five days of
the receipt of the reference or within such extended
period as may be granted by the District Forum; The

Procedure on Admission of Complaint

The report of the laboratory test is given to the
opposite party. If any of the parties disputes the
correctness of the laboratory test report, the
objections to such report shall be made in writing.
A reasonable opportunity of being heard shall be
given regarding the objections made in relation to
laboratory test.
If the complaint relates to any services or in
respect of goods where laboratory report is not
required, then a copy of the complaint is referred
to the opposite party directing him to give his
version within a period of thirty days.

Procedure on Admission of Complaint

This can be extended by fifteen days. If the opposite
party does not file any reply the complaint shall be
decided ex-parte. If the opposite party, denies or
disputes the allegations made in complaint, the
matter will be decided on the basis of evidence
adduced by the complainant and the opposite party.
Every complaint shall be heard expeditiously and
endeavour shall be made to decide the complaint
within three months when it does not require
analysis or testing by any laboratory and within five
months if it requires analysis or testing of
commodities.(S.13)

S.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 finding it
within that period.

S.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,
who
shall
be
its
President:
[PROVIDED
that
no
appointment under this clause shall be
made except after consultation with
the Chief Justice of the High Court.

S.16. Composition of the State Commission

(b)

not less than two and not more than such number of
members, as may be prescribed, 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 bachelors 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.

S.19 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

S.20 Composition of the

National Commission
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

S.20 Composition of the

National Commission

(b) not less than four and not more than such number of
members as may be prescribed 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 bachelors degree from a recognized
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 percent of the members
shall be from amongst the persons having judicial
background:-

S.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 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

S.24A Limitation period

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

Findings
The following orders can be made by the consumer
dispute redressal agency:
a) To remove the defect - pointed out by the
appropriate laboratory from the goods in question.
b) To replace the goods - with new goods of similar
description which shall be free from any defect.
c) To return to the complainant the price - or, as the
case may be, the charges paid by the complainant.
d) To pay compensation - to the consumer for any
loss or injury suffered due to the negligence of the
opposite party. However the consumer disputes
redressal agency shall have the power to grant
punitive damages in such circumstances as it deems
fit.

Findings
e) To remove the defects in goods or
deficiencies in services - in question.
f) To discontinue the unfair trade practice or
the restrictive trade practice - or not to repeat
them.
g) Not to offer hazardous goods for sale.
h) To withdraw the hazardous goods - from
being offered for sale.
i) To cease manufacture of hazardous goods and to desist from offering services which are
hazardous in nature.

Findings
j ) 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.
However, the minimum amount of sum so payable shall not
be less than five percent of the value of such defective
goods sold or services provided as the case may be to such
consumers. It may also provide that the amount so obtained
shall be credited in favour of such person and utilized in
such manner as may be prescribed.
k)To issue corrective advertisement - to neutralise the effect
of misleading advertisement at the cost of the opposite
party
responsible
for
issuing
such
misleading
advertisement.
l) To provide for adequate costs - to parties

Some decisions of National

Commission/Supreme Court

Bank in granting overdraft facilities to its client

provides service. Thus, its client is a
consumer(Vimal Chandra Grover v. Bank of
India, AIR 2000 SC 2181: (2000) 5 SCC 122)
Damage caused to building and printing press
of complainant due to vibration from operation
of bulldozer on road close to building; property
insured; SC held that complaint maintainable
and insurance company liable for damages
(United India Insurance Co. v. Pushpalaya
Printers AIR 2004 SC)

 In

a significant judgment, the South

Mumbai Consumer Forum has held
that a flat owner legally occupying
the flat would be a consumer, even if
his title to the flat might be in
dispute before a competent court.

Some decisions of National

Commission/Supreme Court

A member of PF Scheme can invoke the

provisions of the Consumer Protection
Act,1986
against
PF
Commissioner(Regional PF Commissioner
v. Shiv Kumar Joshi AIR 2000 SC 331)
A child was admitted and treated in
hospital by doctor. Child as well as his
parents would be consumers(Spring
Meadows Hospital v. Harjol Abdullah AIR
1998 SC 1801)

Some decisions of National

Commission/Supreme Court

Doctors are within the purview of the

Act(Indian Medical Association v VP
Santha SC 1996 AIR 550)
Government
hospitals/health
centres/dispensaries where services are
rendered free of charge to all the patients,
the provisions of the Act do not apply.

Some decisions of National

Commission/Supreme Court
Under the Act, damages are payable only if there is
negligence of the opposite party.S.14(1)(d)
Employees of Bank of Baroda, Calcutta, resorted to a
strike, in opposition to a scheme of transfer of its
employees. The striking employees created barricades
by forming a human wall before the bank. The customers
were prevented from entering the bank for 54 days.
The customers had suffered losses, which included loss
of interest. The Supreme Court ruled that the
shortcoming in the service by bank did not arise due to
failure on the part of bank in performing its duty or
discharging its obligations as required by law.(Consumer
Unity and Trust Society, Jaipur v .CMD Bank of
Baroda,1995 SCC 150)

Some decisions of National

Commission/Supreme Court

Where the opposite party failed to file

written objections within the time allowed,
it could not be denied the privilege of oral
submissions before the Forums. The
National Commission gave the reason that
the opposite party should not be deprived
of its natural and legal right to put
forward
its
defence.(South
Delhi
University Teacher Cooperative Group
Housing Society Ltd. v. Dr.Madhu Rathor)

Some decisions of National

Commission/Supreme Court

f) Wearing of jewellery on body of person

included in luggage, being in his charge during
travel in Railway. Gold chain snatched by
miscreants
while
travelling
in
reserved
compartment. It was held that there was
deficiency in service on the part of Railways.
(Ms.Kanthimathi v. Govt. of India, Ministry of
Railways, 2003)
g) A Statutory Authority developing land or
constructing a house, is like a builder or a
contractor, if the service is defective, then it
would be an unfair trade practice.(LDA v.
M.K.Gupta 1990 SC)

Some decisions of National

Commission/Supreme Court

h)When an intra-muscular injection administered

intra-venously, blood circulation to heart stopped
and the patient died within minutes. The argument
that he did not pay for the services was negated as
how a deadman can pay for the services.
Negligence was also proved.(Dr.Sham Lal v. Saroj
Rani 2003 NC)
i) Complainant having confirmed ticket, not
provided seat in aircraft and consequently lost job.
It was held that there was deficiency of service on
the part of the airlines.(Manager Air India v
A.Moideen Kutty 2003 NC)

Some decisions of National

Commission/Supreme Court
j ) Nursing home had no proper arrangements to meet
emergency and not properly equipped, it is deficient in
service. When forceps delivery was done in haste which
caused haemorrhage and no attempt was made to stop
profuse bleeding, it was held that there was negligence
and deficiency in medical care.(Dr.T.Vani Devi v. TLN
Narasa Reddy 2003 NC)
k) Deceased was insured under the Salary Savings
Scheme from L.I.C. Employer failed to deduct the
premium from the salary of the employee. As a result
policy lapsed. It was held that the complainant (wife of
the deceased) is entitled to claim the insurance amount
from the employer(Smt.Rajeshwari v. LIC of India 2000
NC)

Some decisions of National

Commission/Supreme Court
l) When there is a delay in delivery of motor vehicle
and there is unauthorized escalation in price,
consumer is not liable to pay.(M/s Vikas Motors v.
Dr.P.K.Jain 1999 SC)
m) Complainant applied for allotment of a flat under a
scheme of Housing Board and made full payment.
Possession of the flat was not given as per the
scheme.
The contention of the Housing Board that the scheme
was given up due to unavoidable reasons and the option
given to the complainant to opt for another scheme is
not valid. It was held that there was a deficiency
in
service on the part of the Housing Board.(George
Thomas v. Ghaziabad Development Authority 1999 NC)