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Act Description : CONSUMER PROTECTION ACT, 1986
Act Details :-





CONSUMER PROTECTION ACT, 1986


68 of 1986


 


An Act to provide for the better protection of the interest of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith. Be it enacted by Parliament in the Thirty-seventh year of the Republic of India as follows


 


CHAPTER 01: PRELIMINARY


 


SECTION 01: SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION


(1) This Act may be called the Consumer Protection Act, 1986.


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


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


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


 


SECTION 02: DEFINITIONS


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


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[(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;]


(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;


3[(iv) one or more consumers, where there are numerous consumers having the same interest;] who or which makes a complaint;


4(v) in case of death of a consumer, his legal heir or representative;


(c) "complaint" means any allegation in writing made by a complainant that-


6[(i) an unfair trade practice or a restrictive trade practice has been adopted by 5["any trader or service provider"];]


(ii)7[the goods bought by him or agreed to be bought by him] suffer from one or more defects;


(iii)8[the services hired or availed of or agreed to be hired or availed of by him] suffer from deficiency in any respects;


9(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;


9(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 standards 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;


9(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;


(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 who obtains such goods for resale or for any commercial purpose; or


(ii) hires11[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 11[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 12["but does not include a person who avails of such services for any commercial purpose."]


13Explanation.—For the purposes of this clause, "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 self-employment;


(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;


(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 or11[under any contract, express or implied, or] as is claimed by the trader in any manner whatsoever in relation to any goods;


(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 con- tract or otherwise in relation to any service;


(h) "District Forum" means a Consumer Dispute Redressal Forum established under clause (a) of section 9-;


(i) "goods' means goods as defined in the Sale of Goods Act, 1930 (3 of 1930);


15(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;


16[(jj) "member" includes the President and a member of the National Commission or a State Commission or a District Forum, as the case may be;]


(k) "National Commission" means the National Consumer Disputes Redressal Commission established under clause (c) of section 9-;


(l) "notification" means a notification published in the Official Gazette;


(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;


(n) "prescribed" means prescribed by rules made by the State Government or as the case may be, by the Central Government under this Act;


17(nn) "regulation" means the regulations made by the National Commission under this Act;


17(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 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;';


(o) "service" means service of any description which is made available to potential18["users and includes, but not limited to, the provision of "] facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both,16[housing construction,] entertainment, amusement or 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;


20(oo) "spurious goods and services" means such goods and services which are claimed to be genuine but they are actually not so;


(p) "State Commission" means a Consumer Disputes Redressal Commission established in a State under clause (b) of section 9-;


(q) "trader" in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof, an where such goods are sold or distributed in package form, includes the packer thereof;


21[(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 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;


(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 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. 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 news- paper 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.


(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 trans- action as a whole;


(b) 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;


23(3A) withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final results of the scheme.


Explanation.—For the purposes 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 newspapers 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 pre - scribed 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.]


23(6) manufacture of spurious goods or offering such goods for sale or adopting deceptive practices in the provision of services.


(2) Any reference in this Act to any other Act or provision thereof which is not in force in any area to which this Act applies shall be construed to have a reference to the corresponding Act or provision thereof in force in such area.


 


 


SECTION 03: ACT NOT IN DEROGATION OF ANY OTHER LAW


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


 


 


CHAPTER 02: CONSUMER PROTECTION COUNCILS


 


SECTION 04: THE CENTRAL CONSUMER PROTECTION COUNCIL


(1)24["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 of22[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


 


 


SECTION 05: PROCEDURE FOR MEETINGS OF THE CENTRAL COUNCIL


(1) The Central Council shall meet as and when necessary, but 25[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


 


 


SECTION 06: OBJECTS OF THE CENTRAL COUNCIL


The objects of the Central Council shall be to promote and protect the rights of the consumer such as,-


(a) the right to be protected against the marketing of goods26[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 goods26[or services, as the case 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 goods26[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 practices26[or restrictive trade practices] or unscrupulous exploitation of consumers; and


(f) the right to consumer education


 


 


SECTION 07: THE STATE CONSUMER PROTECTION COUNCILS


(1)27["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 Consumer Protection Council ............................(hereinafter referred to as State Council).


28[(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.


29(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.]


 


 


SECTION 08: OBJECTS OF THE STATE COUNCIL


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


 


 


SECTION 08A: THE DISTRICT CONSUMER PROTECTION COUNCIL


30 (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.


 


 


SECTION 08B: OBJECTS OF THE DISTRICT COUNCIL


30The 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.


 


 


CHAPTER 03: CONSUMER DISPUTES REDRESSAL AGENCIES


 


SECTION 09: 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 Government31[* * *] in each district of the State by notification:32[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 Government31[* * * ] in the State by notification; and


(c) a National Consumer Disputes Redressal Commission established by the Central Government by notification


 


 


SECTION 10: COMPOSITION OF THE DISTRICT FORUM


33[(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;


34"(b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely:—


(i) be not less than thirty-five years of age,


(ii) possess a bachelor's degree from a recognised university,


(iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public 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) if 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;


35[(1A) Every appointment under sub -section (1) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely : -


(i) President of the State 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.]


36Provided 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.


37(2) Every member of the District Forum shall hold office for 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 fulfils 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 :


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 (1-A) in place of the person who has resigned :


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.


(3) The salary or honorarium and other allowance 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


38Provided that the appointment of a member on while-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 workload of the District Forum.


 


 


SECTION 11: JURISDICTION OF THE DISTRICT FORUM


(1) Subject to the other provisions of this Act, the District Form shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed39 ["does not exceed Rupees Twenty lakhs".]


(2) A complaint shall be instituted in a District Forum within the local limits of whose


jurisdiction,-


(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business, or .40[has a branch office or] personally works for gain ; or


(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 business41[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 business41[or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or


(c) the cause of action, wholly or in part, arises


 


 


SECTION 12: MANNER IN WHICH COMPLAINT SHALL BE MADE.


42 (1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by—


(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided;


(b) any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not;


(c) one or more consumers, where there are numerous 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.


(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.


(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 sub-section unless an opportunity of being heard has been given to the complainant:


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.


(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 purposes of this section "recognised consumer association" means any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956)or any other law for the time being in force.


 


 


SECTION 13: PROCEDURE ON ADMISSION OF COMPLAINT


(1)The District Forum shall,43["on admission of a complaint"], if it relates to any goods,-


44"(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 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 under clause (f) and issue an appropriate order under section 14-.


(2) The District Forum shall, if the45["complaints 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)46["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 represent his case within the time given by the Forum.


47(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.


(3) No proceedings complying with the procedure laid down in sub -section (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


48(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 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.


48(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.


(4) For the purposes of this section, the District Forum shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 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.


(5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal 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)


49[(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.]


50(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.


 


 


SECTION 14: FINDINGS 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 to51[do] one or more of the following things, namely:-


(a) to remove the defect pointed out by the appropriate laboratory from the goods in question;


(b) to replace the goods with new goods of similar description which shall be free from any defect;


(c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant;


(d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer, due to the negligence of the opposite party;


52Provided that the District Forum shall have the power to grant punitive damages in such circumstances as it deems fit.


57[(e) to53["remove the defects in goods"] or deficiencies in the services in question;


(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;


(g) not to offer the hazardous goods for sale;


(h) to withdraw the hazardous goods from being offered for sale;


54(ha) to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;


54(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 sum so payable shall not be less than five per cent of the value of such defective goods sold or services 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.]


58[(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 the member, for any reason, is unable to conduct the proceeding till it is completed, the President and the other member shall conduct such proceeding de novo.


55Provided that where a member, for any reason, is unable to conduct a proceeding till it is completed, the President and the other member shall continue the proceeding from the stage at which it was last heard by the previous member.


(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.]


(3) Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the District Forum, its sittings and other matter shall be such as may be prescribed by the State Government


 


 


SECTION 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 56Provided 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.


 


 


SECTION 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:59[Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;]


60(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 a 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 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.


61(1A) Every appointment under sub-section (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 Commission — Chairman;


(ii) Secretary of the 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.


61(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.


(2) The salary or honorarium and other allowances payable to, and the other terms and conditions of service62 [* * *'] of, the members of the State Commission shall be such as may be prescribed by the State Government


63Provided 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..


64(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 fulfils 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 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 (1-A) in place of the person who has resigned.


64(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.


 


 


SECTION 17: JURISDICTION OF THE STATE COMMISSION


65(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, claimed66["exceeds Rupees Twenty lakhs but does not exceed Rupees One crore"]; and


(ii) appeals against the orders of any District Forums 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


67(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


(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 parties who do not reside or carry on business or have a branch office or personally works for gain, as the case may be, acquiesce in such institution; or


(c) the cause of action, wholly or in part, arises.


 


 


SECTION 17A: TRANSFER OF CASES


68On 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.


 


 


SECTION 17B: CIRCUIT BENCHES


68The 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.


 


 


SECTION 18: PROCEDURE APPLICABLE TO STATE COMMISSIONS


69[The provisions of sections 12-,13-and14-and the rules made thereunder] for the disposal of complaints by the District Forum shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the State Commission


 


 


SECTION 18A: VACANCY IN THE OFFICE OF THE PRESIDENT


70[* * * * *]


 


 


SECTION 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:


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 71Provided further that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited in the prescribed manner fifty per cent of the amount of Rupees Thirty five thousand, whichever is less.


 


 


SECTION 19A: HEARING OF APPEAL


72In 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 maybe provided in the regulations made under this 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.


 


 


SECTION 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:73[Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India;]


74(b) not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the following qualifications, namely:—


(i) be not less than thirty -five years of age;


(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 a 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, 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 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, — 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.] 75(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 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.


(2) The salary or honorarium and other allowances payable to and the other terms and conditions of service76[* * *] of the members of the National Commission shall be such as may be prescribed by the Central Government


77(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 fulfils 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 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 sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1-A) in place of the person who has resigned.


77(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..


(c) Secretary of the Department dealing with — Consumer Affairs in the


Government of India Member;


 


 


SECTION 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 exceeds78["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 material irregularity


 


 


SECTION 22: POWER AND PROCEDURE APPLICABLE TO THE NATIONAL COMMISSION.


79 (1) The provisions of Sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the District Forum shall, with such modifications as may be considered necessary by the Commission, be applicable to the disposal of disputes by the National Commission.


(2) Without prejudice to the provisions contained in sub-section (1), the National Commission shall have the power to review any order made by it, when there is an error apparent on the face of record.


 


 


SECTION 22A: POWER TO SET ASIDE EX PARTE ORDERS


80Where 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.


 


 


SECTION 22B: TRANSFER OF CASES


80On the application of the complainant or of its own motion, the National Commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending before the District Forum of one State to a District Forum of another State or before one State Commission to another State Commission.


 


 


SECTION 22C: CIRCUIT BENCHES


80The 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.


 


 


SECTION 22D: VACANCY IN THE OFFICE OF PRESIDENT.


80When 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 seniormost 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 seniormost person amongst such members, shall preside over the National Commission in the absence of President of that Commission.


 


 


SECTION 23: APPEAL


Any person, aggrieved by an order made by the National Commission in exercise of its power 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


81Provided 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 or Rupees Fifty thousand, whichever is less.


 


 


SECTION 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 final


 


 


SECTION 24A: LIMITATIOLN PERIOD


82 (1) 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 (1), 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


 


 


SECTION 24B: ADMINISTRATIVE CONTROL


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


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


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


(iii) generally overseeing the functioning of the State Commissions or the District For a to ensure that the objects and purposes of the Act are best served without in any way interfering with their quasi-judicial freedom


(2)The State Commission shall have administrative control over all the District For a within its jurisdiction in all matters referred to in sub-section (1).]


 


 


SECTION 25: ENFORCEMENT OF ORDERS OF THE DISTRICT FORUM, THE STATE COMMISSION OR THE NATIONAL COMMISSION


83(1) Where an interim order made under this Act is not complied with, the District Forum or the State Commission or the National Commission, as the case may be, may order the property of the person, not complying with such order to be attached.


(2) No attachment made under sub-section (1) shall remain in force for more than three months at the end of which, if the non-compliance continues, the property attached may be sold and out of the proceeds thereof, the District Forum or the State Commission or the National Commission may award such damages as it thinks fit to the complainant and shall pay the balance, if any, to the party entitled thereto.


(3) Where any amount is due from any person under an order made by a District 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 Stale 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 manner as arrears of land revenue.


 


 


SECTION 26: DISMISSAL OF FRIVOLOUS OR VEXATIOUS COMPLAINTS


82Where a complaint instituted before the District Forum, the State Com- mission 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 thousands rupees, as may be specified in the order.]


 


 


SECTION 27: PENALTIES


87(1)Where a trader or a person against whom a complaint is made86[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 person86[or complainant] shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both:


88[* * * * * *]


89(2) Notwithstanding anything contained in the Code of Criminal 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.


89(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.


 


 


SECTION 27A: APPEAL AGAINST ORDER PASSED UNDER SECTION 27


90 (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an appeal under Section.27, both on facts and on law, shall lie from—


(a) the order made by the District Forum to the State Commission;


(b) the order made by the State Commission to the National Commission; and (c) the order made by the National Commission to the Supreme Court.


(2) Except as aforesaid, no appeal shall lie to any court from any order of a District Forum or a State Commission or the National Commission.


(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.


 


 


CHAPTER 04: MISCELLANEOUS


 


SECTION 28: PROTECTION OF ACTION TAKEN IN GOOD FAITH


No suit, prosecution or other legal proceedings shall lie against the members of the District Forum, the State Commission or the National Commission or any officer or person acting under the direction of the District Forum, the State Commission or the National Commission for executing any order made by it or in respect of anything which is in a 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


 


 


SECTION 28A: SERVICE OF NOTICE, ETC


91 (1) All notices, required by this Act to be served shall be served in the manner hereinafter mentioned in sub-section (2).


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


(3) When an acknowledgment or any other receipt purporting to be signed by the 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 authorised 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 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, prepaid 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 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.


 


 


SECTION 29: POWER TO REMOVE DIFFICULTIES


(1) If any difficulty arises in giving effect to the provision 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


92(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.


92(4) Every order made under sub-section (3) shall be laid before each House of Parliament.


 


 


SECTION 29A: VACANCIES OR DEFECTS IN APPOINTMENT NOT TO INVALIDATE ORDERS


93 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 there- of.


 


 


SECTION 30: POWER TO MAKE RULES.


94 (1) The Central Government may, by notification, make rules for carrying out the provisions contained in clause (a) of sub-section (1) of Section 2, clause (b) of sub-section (2) of Section 4, sub-section (2) of Section 5, sub section (2) of Section 12, clause (vi) of sub-section (4) of Section 13, clause (hb) of subsection (1) of Section 14, Section 19, clause (b) of sub-section (1) and subsection (2) of Section 20, Section 22 and Section 23 of this Act.


(2) The State Government may, by notification, make rules for carrying out the provisions contained in clause (b) of sub-section (2) and sub-section (4) of Section 7, clause (b) of subsection (2) and sub-section (4) of Section 8-A, clause (b) of subsection (1) and sub-section (3) of Section 10, clause (c) of sub-section (1) of Section 13. clause (hb) of sub-section (1) and subsection (3) of Section 14, Section 15 and clause (b) of sub-section (1) and sub-section (2) of Section 16 of this Act.".


 


 


SECTION 30A: POWER OF THE NATIONAL COMMISSION TO MAKE REGULATIONS


96 (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 provisions 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.


 


 


SECTION 31: RULES AND REGULATIONS TO BE LAID BEFORE EACH HOUSE OF PARLIAMENT


97 (1) Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect. as the case may be; so, however, that any such 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.


 


1. Substituted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993.


2. Inserted, by the Consumer Protection (Amendment) Act, 1993.


3. Inserted by the Consumer Protection (Amendment) Act, 1993., w.e.f. 18-6-1993.


4. In Section 2 sub-section (1) in clause (b) sub-clause (v) shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


5. In Section 2 sub-section (1) in clause (c) sub-clause (i) the words "any trade" shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


6. Substituted, by the Consumer Protection (Amendment) Act, 1993


7. Substituted for "the goods mentioned in the complaint", by the Consumer Protection (Amendment) Act, 1993


8. Substituted for "the services mentioned in the complaint", by the Consumer Protection (Amendment) Act, 1993


9. In Section 2 sub-section (1) in clause (c), sub-clause (iv),(v) and (vi) shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


11. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993.


12. In Section 2 sub-section (1) in clause (d), in sub-clause (ii)the words shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


13. In Section 2 sub-section (1) in clause (d), Explanation, shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


15. In Section 2 sub-section (1) ,clause (j), shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


16. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993.


17. In Section 2 sub-section (1), clause (nn) and (nnn), shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


18. In Section 2 sub-section (1), clause (o) the words, "users and includes the provision of," shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


20. In Section 2 sub-section (1), clause (oo) shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


21. Substituted, by the Consumer Protection (Amendment) Act, 1993.


 


23. In Section 2 sub-section (1), clause (r), sub-clause (3A) and (6), shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


22. Substituted "or "the Department of Food and Civil Supplies" by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


24. In Section 4, in sub-section (1) the words "The Central Government may" shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


25. Substituted for "not less than three meetings", .by the Consumer Protection (Amendment) Act, 1993


 


26. Inserted, ibuL


 


27. In Section 7, in sub-section (1) the words "The Central Government may" shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


28. Substituted for sub-section (2) by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6- 1993


 


29. In Section 7, in sub-section (2), clause (c) shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


30. Section 8A and 8B, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


31. Words "with the prior approval of the Central Government" omitted, by the Consumer Protection (Amendment) Act, 1993


 


32. Inserted, by the Consumer Protection (Amendment) Act, 1993


 


33. Substituted, by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


34. Section 10, sub-section 1 clause (b),shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


35. Inserted, by the Consumer Protection (Amendment) Act, 1993


 


36. In Section 10, in sub-section (1A), proviso, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


37. In Section 10, sub-section (2), shall be substituted by Consumer Protection (Amendment) Act, 2002. (62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


38. In Section 10, sub-section (3), proviso, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


39. In Section 11, sub-section (1), the words "does not exceed Rupees Five lakhs" , shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


40. Inserted, by the Consumer Protection (Amendment) Act, 1993


 


41. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


42. Section 12, shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


43. Section 13, sub-section (1), the opening portion the words "on receipt of a complaint", shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


44. Section 13, sub-section (1), clause (a) shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


45. Section 13, sub-section (2), the opening portion the words "complaint received" shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


46. Section 13, sub-section (2), clause (b) sub-clause (ii)the words "on the basis of evidence" shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


47. Section 13, sub-section (2), clause (c) shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


48. Section 13, sub-section (3A) and (3B), shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


49. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


50. Section 13, sub-section (7), shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1- 15, No. 74.


 


51. Substituted for "take", by the Consumer Protection (Amendment) Act, 1993


 


52. In Section 14, sub-section (1), in clause (d), proviso shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


53. In Section 14, sub-section (1), in clause (e), the words "remove the defects" shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


54. In Section 14, sub-section (1), clause (ha),(hb) and (hc) shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


55. In Section 14, sub-section (2), proviso, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


56. In Section 15, proviso, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1- 15, No. 74.


 


57. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


58. Substituted for sub-section (2), by the Consumer Protection (Amendment) Act, 1991, w.e.f. 15-6- 1991


 


59. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


60. In Section 16, in sub-section (1), clause (b), shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


61. In Section 16, sub-section (1A) and (1B), shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


62. Words "(including tenure of office)" omitted, by the Consumer Protection (Amendment) Act, 1993


 


63. In Section 16, sub-section (2) proviso, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


64. In Section 16, sub-section (3)and (4), shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


65. In Section 17, the principal act, shall be renumbered as sub-section (1) by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


66. In Section 17, sub-section (1), clause (a), in sub clause (i), the words "exceeds Rupees Five lakhs but does not exceed Rupees Twenty lakhs", shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


67. In Section 17, sub-section (2), shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1- 15, No. 74.


 


68. Section 17A and 17B, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1- 15, No. 74.


 


69. Substituted fur "The procedure specified in sections 12, 13 and 14 and under the rules made thereunder by the Consumer Protection (Amendment) Act, 1993 w.e.f. 18-6-1993


 


70. Section 18A, shall be omitted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


71. Section 19, proviso shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


72. Section 19A, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


73. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


75. Section 20, sub-section (1A), shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1- 15, No. 74.


 


74. Section 20, sub-section (1), clause (b), shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


77. Section 20, sub-section (3) and (4), shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


78. In Section 21, clause (a), in sub-clause (i), the words "Rupees Twenty lakhs" shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


79. Section 22, shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


80. Section 22A,22B,22C and 22D, shall be inserted by Consumer Protection (Amendment) Act, 2002. (62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


81. In Section 23, proviso, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1- 15, No. 74.


 


82. Inserted by the Consumer Protection (Amendment) Act, 1993, w.e.f. 18-6-1993


 


83. Section 25, shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


86. Inserted, by the Consumer Protection (Amendment) Act, 1993


 


87. In Section 27, the principal act shall be renumbered as sub section (1) by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


88. In Section 27, proviso shall be omitted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1- 15, No. 74.


 


89. In Section 27, sub-section (2) and (3) shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


90. Section 27A, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


91. Section 28A, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


92. Section 29, sub-section (3) and (4) shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


93. Inserted by the Consumer Protection (Amendment) Act, 1991, w.e.f. 15-6-1991


 


94. Section 30, shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


96. Section 31A, shall be inserted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


97. Section 31, shall be substituted by Consumer Protection (Amendment) Act, 2002.(62 of 2002) , Published in the Gazette of India, Extra., Part II, Section 1, dated 18th December, 2002, pp. 1-15, No. 74.


 


CONSUMER PROTECTION RULES, 1987


 


GSR 398(E), DATED 15-4-1987 In exercise of the powers conferred by sub-section (1) of section 30 of the Consumer Protection Act, 1986 (68 of 1986), the Central Government hereby makes the following rules, namely:-


 


 


RULE 01: SHORT TITLE AND COMMENCEMENT.


(1) These rules may be called the Consumer Protection Rules, 1987.


(2) They shall come into force on the date of their publication in the Official Gazette.


 


 


RULE 02: DEFINITIONS.


In these rules, unless the context otherwise requires-


(a) "Act" means the Consumer Protection Act, 1986 (68 of 1986);


( b) "agent" means a person duly authorised by a party to present any complaint, appeal or reply on its behalf before the National Commission;


(c) "appellant" means a party which makes an appeal against the order of the State Commission;


(d) "chairman" means a chairman of the Central Consumer Protection Council established under sub-section (1) of section 4of the Act;


(e) "memorandum" means any memorandum of appeal filed by the appellant;


(f) "opposite party" means a person who answers complaint or claim;


(g) "president" means the President of the National Commission;


(h) "respondent" means the person who answers any memorandum of appeal;


(i) "section" means section of the Act;


(j) "State" includes Union Territories also;


(k) words and expressions used in the rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act.


 


 


RULE 02A: STATE GOVERNMENTS TO RECOGNISE A LABORATORY AS AN APPROPRIATE LABORATORY


(1) For the purpose of obtaining recognition as an appropriate laboratory, the applicant shall send application, in triplicate, in the proform a prescribed by the Bureau of Indian Standards with the relevant details to the Department concerned with the consumer protection work in the State Government.


(2) The State Government on receiving the application from the applicant, shall forward its two copies to the Bureau of Indian Standards to assess the suitability of the laboratory from the standards prescribed by them (Bureau of Indian Standards). The fee charged by the Bureau of Indian Standards, for this purpose, shall be paid by the applicant.


(3) The State Government on receiving the recommendations and approval of the Bureau of Indian Standards, shall notify that laboratory as an 'appropriate laboratory' for the purpose of Consumer Protection Act, 1986for a period of three years.]


 


 


RULE 03: THE CONSTITUTION OF THE CENTRAL CONSUMER PROTECTION COUNCIL AND THE WORKING GROUPS.


(1) The Central Government shall, by notification in the Official Gazette constitute the Central Consumer Protection Council (hereinafter referred to as the Central Council) which shall consist of2[the following members, not exceeding 150, namely :-]


(a)3[the Minister in-charge of Consumer Affairs in the Central Government], who shall be the Chairman of the Central Council;


(b) the Minister of State (where he is not holding independent charge) or Deputy Minister4[in charge of Consumer Affairs in the Central Government] who shall be the Vice-Chairman of the Central Council;


(c) the5[* * *] Minister in-charge of Consumer Affairs in States;


(d) eight Members of Parliament - five from the Lok Sabha and three from the Rajya Sabha;


6[(e) the Secretary of the National Commission for Scheduled Castes and Scheduled Tribes;]


(f) representatives of the Central Government Departments and autonomous organisations concerned with consumer interests - not exceeding twenty;


(g) representatives of the Consumer Organisations or consumers - not less than thirty- five;


(h) representatives of women - not less than ten:


(i) representative of farmers, trade and industries - not exceeding twenty;


(j) persons capable of representing consumer interest not specified above - not exceeding fifteen;


(k)7[the Secretary in-charge of Consumer Affairs in the Central Government] shall be the member-secretary of the Central Council.


(2) The term of the Council shall be three years.


(3) Any member may, by writing under his hand to the Chairman of the Central Council, resign from the Council. The vacancies, so caused or otherwise, shall be filled from the same category by the Central Government and such person shall hold office so long as the member whose place he fills, would have been entitled to hold office, if the vacancy had not occurred.


8[(4) For the purpose of monitoring the implementation of the recommendations of the Central Council and to suggest the working of the Council, the Central Government may constitute from amongst the members of the Council, a Standing Working Group, under the Chairmanship of the Member Secretary of the Council. The StandingWorking Group shall consist of not exceeding 30 members and shall meet as and when considered necessary by the Central Government.]


 


 


RULE 04: PROCEDURE OF THE CENTRAL COUNCIL.


Under the sub-section (2) of section 5, the Central Council shall observe the following procedure in regard to the transaction of its business :-


(1) The meeting of the Central Council shall be presided over by the Chairman. In the absence of the Chairman, the Vice-Chairman shall preside over the meeting of the Central Council. In the absence of the Chairman and the Vice-Chairman, the Central Council shall elect a member to preside over that meeting of the Council.


(2) Each meeting of the Central Council shall be called by giving not less than ten days from the date of issue, notice in writing to every member.


(3) Every notice of a meeting of the Central Council shall specify the place and the day and hour of the meeting and shall contain statement of business to be transacted thereat.


(4) No proceedings of the Central Council shall be invalid merely by reasons of existence of any vacancy in or any defect in the constitution of the council.


(5) For the purpose of performing its functions under the Act, the Central Council may constitute from amongst its members, such working groups as it may deem necessary and every working group so constituted shall perform such functions as are assigned to it by the Central Council. The findings of such working groups shall be placed before the Central Council for its consideration.


9(6) The non-official members shall be entitled to first class or second Air-Conditioned by all trains (including Rajdhani Express) to and fro Railway fare or actual mode of travel whichever is less. Outstation non-official members shall be entitled to a daily allowance of one hundred rupees per day for attending the meetings of the Central Council or any working group. Local nonofficial members shall be paid actual conveyance, hire charges subject to a ceiling of Rs. 75.00 per day irrespective of the classification of the city. Members of Parliament shall be entitled to travelling and daily allowances at such rates as are admissible to such members.]


(7) The resolutions passed by the Central Council shall be recommendatory in nature.


 


 


RULE 05: PLACE OF THE NATIONAL COMMISSION.


The office of the National Commission shall be located in the Union Territory of Delhi.


 


 


RULE 06: WORKING DAYS AND OFFICE HOURS OF THE NATIONAL COMMISSION.


The working days and office hours of the National Commission shall be the same as that of the Central Government.


 


 


RULE 07: SEAL AND EMBLEM.


The official seal and emblem of the National Commission shall be such as the Central Government may specify.


 


 


RULE 08: SITTINGS OF THE NATIONAL COMMISSION.


The sitting of the National Commission as and when necessary shall be convened by the President.


 


 


RULE 09: STAFF OF THE NATIONAL COMMISSION.


The Central Government shall appoint such staff as may be necessary to assist the National Commision in its day-to-day work and to perform such otherfunctions as are provided under the Act and these Rules are assigned to it by the President. The salary payable to such staff shall be defrayed out of the Consolidated Fund of India.


 


 


RULE 10: ADDITIONAL POWERS OF THE NATIONAL COMMISSION, STATE COMMISSION AND DISTRICT FORUM.


(1) The National Commission, the State Commission and the District Forum shall have power to require any person,-


(a) to produce before, and allow to be examined and kept by an officer of the National Commission, the State Commission or the District Forum, as the case may be, specified in this behalf, such books, accounts, documents or commodities in the custody or under the control of the person so required as may be specified or described in the requisition, if the examination of such books, accounts, documents or commodities are required for the purposes of this Act;


(b) To furnish to an officer so specified, such information as may be required for the purpose of this Act. (2)


(a) Where during any proceedings under this Act the National Commission, the State Commission or the district Forum, as the case may be, has any ground to believe that any book, paper, commodity or document which may be required to be produced in such proceedings are being, or may be destroyed, mutilated, altered, falsified or secreted, it may, by written order authorise any officer to exercise the power of entry and search of any premises. Such authorised officer may also seize such books, papers, documents or commodities as are required for the purposes of this Act : Provided that such seizure shall be communicated to the National Commission, the State Commission or the District Forum, as the case may be, as soon as it is made or within a period not exceeding 72 hours of making such seizure after specifying the reasons in writing for making such seizure.


(b) The National Commission, the State Commission or the District Forum, as the case may be, on examination of such seized documents or commodities, as the case may be, may order the retention thereof or may return it to the party concerned.


 


 


RULE 11: SALARIES, HONORARIUM AND OTHER ALLOWANCES OF THE PRESIDENT AND MEMBERS OF THE NATIONAL COMMISSION.


10[(1) The President of the National Commission shall be entitled to salary, allowances and other perquisites as are available to a sitting Judge of the Supreme Court and other members, if sitting on whole time basis, shall receive a consolidated honorarium of11["ten thousand rupees"]per month or if sitting on part-time basis, a consolidated honorarium of12["five hundred rupees"]per day for sitting.]


(2) The President and the members shall be entitled to travelling and daily allowance on official tours at the same rates as are admissible to Group 'A' Officer of the Central Government.


13(2-A) The President and the members of the National Commission shall be entitled to conveyance allowance of one hundred fifty rupees per day of its sitting or a sum of one thousand and five hundred rupees per month, as may be opted by them.


(3) The honorarium or the salary, as the case may be, and other allowances shall be defrayed out of the Consolidated Fund of India.


 


 


RULE 12: TERMS AND CONDITIONS OF SERVICE OF THE PRESIDENT AND MEMBERS OF THE NATIONAL COMMISSION.


(1) Before appointment, the President and a member of the National Commission shall have to take an undertaking that he does not and will not have any such financial or other interests as is likely to affect prejudicially his functions as such member.


14(2) 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 and shall not be eligible for re-appointment.]


(3) Notwithstanding anything contained in sub-rule (2) the President or a member may-


(a) by writing under his hand and addressed to the Central Government resign his office at any time;


(b) be removed from his office in accordance with the provisions of rule 13.


(4) The terms and conditions of service of the President and the members shall not be varied to their disadvantage during their tenure of office.


(5) A casual vacancy caused by regignation or removal of the President or any other member of the National Commission under sub-rule (3) or otherwise shall be filled by fresh appointment.


15[(6) When the President of the National Commission is unable to discharge the functions owing to absence, illness or any other cause, the seniormost member of the National Commission with judicial background, if authorised so to do by the President in writing, shall discharge the functions of the President until the day on which the President resumes the charge of his functions.]


(7)16[***]


(8)16[***]


(9)16[***]


17[(7)] The President or any member ceasing to hold office as such shall not hold any appointment in or be connected with the management or administration of any organisation which have been the subject of any proceeding under the Act during his tenure for a period of five years from the date on which he ceases to hold such office.


 


 


RULE 13: REMOVAL OF PRESIDENT OR MEMBERS FROM OFFICE IN CERTAIN CIRCUMSTANCES.


(1) The Central Government may remove from office, the President or any member who,-


(a) has been adjudged 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 President or the member; or


(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the President or a member, or


(e) has so abused his position as to render his continuance in office prejudicial to the public interest18[; or]


18{(f) remain absent in three consecutive sittings except for reasons beyond his control.]


(2) Notwithstanding anything contained in sub-rule (1), the President or any member shall not be removed from his office on the grounds specified in19[clauses (d), (e) and (f)] of that sub-rule except on an inquiry held by Central Government in accordance with such procedure as it may specify in this behalf and finds the President or a member to be guilty of such ground.


 


 


RULE 14: PROCEDURE TO BE FOLLOWED BY THE NATIONAL COMMISSION.


(1) A complaint containing the following particulars shall be presented by the complainant in person or by his agent to the National Commission or be sent by registered post addressed to the National Commission :-


(a) the name, description and the address of the complainant;


( b) the name, description and address of the opposite party or parties, as the case may be, so far as they can be ascertained;


(c) the facts relating to complaint and when and where it arose;


(d) documents in support of the allegations contained in the complaint;


(e) the relief which the complainant claims.


(2) The National Commission shall, in disposal of any complaint before it, as far as possible, follow the procedures laid down in sub-sections (1) and (2) ofsection 13in relation to complaint received by the District Forum.


(3) On the date of hearing or any other date to which hearing could be adjourned, it shall be obligatory on the parties or their agents to appear before the National Commission. Where the complainant or his agent fails to appear before the National Commission on such days, the National Commission may in its discretion either dismiss the complaint for default or decide it on merits. Where the opposite party or its agent fails to appear on the date of hearing, the National Commission may decide the complaint ex parte.


(4) National Commission may, on such term as it deems fit and at any stage of the proceedings, adjourn the hearing of complaint but the complaint shall be decided, as far as possible, within a period of three months from the date of notice received by opposite party where complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities.


(5) If after the proceedings conducted under sub-rule (3) the National Commission is satisfied with the allegations contained in the complaint it shall issue orders to the opposite party or parties, as the case may be, directing him or them to take one or more of the things as mentioned in subsection


(1) ofsection 14. The National Commission shall also have the power to direct that any order passed by it, where no appeal has been preferred undersection 23or where the order of the National Commission has been affirmed by the Supreme Court under that section, be published in the Official Gazette or through any other media and no legal proceedings shall lie against the National Commission or any other media for such publicatition.


 


 


RULE 15: PROCEDURE FOR HEARING THE APPEAL.


(1) Memorandum shall be presented by the appellant or his agent to the National Commission in person or be sent by registered post addressed to the Commission.


(2) Every memorandum filed under sub-rule (1) shall be in legible handwriting preferably typed and shall set forth concisely under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively.


(3) Each memorandum shall be accompanied by a certified copy of the order of the State Commission appealed against and such of the documents as may be required to support grounds of objection mentioned in the memorandum.


(4) When the appeal is presented after the expiry of the period of limitation as specified in the Act, the memorandum shall be accompanied by an application supported by an affidavit setting forth the facts on which the appellant relies to satisfy the National Commission that he has sufficient cause for not preferring the appeal within the period of limitation.


(5) The appellant shall submit six copies of the memorandum to the Commission for official purpose.


(6) On the date of hearing or any other day to which hearing may be adjourned, it shall be obligatory for the parties or their agents to appear before the National Commission. If appellant or his agent fails to appear on such date, the National Commission may in its discretion either dismiss the appeal or decide ex parte on merits. If the respondent or his agent fails to appear on such date, the National Commission shall proceed ex parte and shall decide the appeal on merits of the case.


(7) The appellant shall not, except by leave of National Commission, urge or be heard in support of any ground of objection not set forth in the memorandum but the National Commission, in deciding the appeal, may not confine to the grounds of objection set forth in the memorandum :


Provided that the Commission shall not rest its decision on any other ground other than those specified in the memorandum unless the party who may be affected thereby, has been given an opportunity of being heard by the National Commission.


(8) The National Commission, on such terms as it may think fit and at any stage, adjourn the hearing of the appeal, but not more than one adjournment shall ordinarily be given and the appeal should be decided, as far as possible, within 90 days from the first date of hearing.


20[(9) The order of the National Commission shall be communicated to the parties concerned free of cost.]


 


 


RULE 15A: SITTING OF THE NATIONAL COMMISSION AND SIGNING OF ORDER.


21[ (1) Every proceeding of the National Commission shall be conducted by the President22[or the seniormost member authorised underrule 12,] and at least two members thereof sitting together :


Provided that where the member or members for any reason are unable to conduct the proceeding till it is completed, the President23[or the seniormost member authorised underrule 12,] shall conduct such proceeding de novo.


(2) Every order made by the National Commission shall be signed by the President23[or the seniormost member authorised underrule 12,] and at least two members who conducted the proceeding and if there is any difference of opinion among themselves, the opinion of majority shall be the order of the National Commission : Provided that where the proceeding is conducted by the President23[or the seniormost member authorised underrule 12,] and three members thereof 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 such point or points shall be decided accordingly to the opinion of the majority of the National Commission.]





2. Substituted for "the following 150 members, namely-" by the Consumer Protection (Amendment) Rules, 1997, w.e.f. 27-2-1997.


 


3. Substituted for "the Minister in-charge of Department of Civil Supplies" by the Consumer Protection (Amendment) Rules, 1993, w.e.f. 30-12-1993.


 


4. Substituted for "in the Department of Civil Supplies" w.e.f. 30-12-1993.


 


5. Words "Minister of Food and Civil Supplies or" omitted by the Consumer Protection (Amendment) Rules, 1997, w.e.f. 27-2-1997.


 


6. Substituted by the Consumer Protection (Amendment) Rules, 1993, w.e.f. 30-12-1993.


 


7. Substituted for "the Secretary in the Department of Civil Supplies" by the Consumer Protection (Amendment) Rules, 1997, w.e.f. 27-2-1997.


 


8. Inserted, w.e.f. 27-2-1997.


 


9. Substituted by the Consumer Protection (Second Amendment) Rules, 1995, w.e. 21-11-1995.


 


10. Substituted by the Consumer Protection (Amendment) Rules, 1987, w.e.f. 14-7-1987.


 


11. Substituted for "six thousand rupees ", vide " CONSUMER PROTECTION RULES, 1987" Dt.February 24, 1998 Published in Ministry of Food and Consumer Affairs (Deptt. of Consumer Affairs), Noti. No. G.S.R. 88(E), dated February 24, 1998, published in the Gazette at India, Extra., Part II, Section 3(i), dated 24th February, 1998, p. 2, No. 56 [File No. 1(1)/97.CPU] [L]


 


12. Substituted for " three hundred rupees ", vide " CONSUMER PROTECTION RULES, 1987" Dt.February 24, 1998 Published in Ministry of Food and Consumer Affairs (Deptt. of Consumer Affairs), Noti. No. G.S.R. 88(E), dated February 24, 1998, published in the Gazette at India, Extra., Part II, Section 3(i), dated 24th February, 1998, p. 2, No. 56 [File No. 1(1)/97.CPU] [L]


 


13. Inserted vide " CONSUMER PROTECTION RULES, 1987" Dt.February 24, 1998 Published in Ministry of Food and Consumer Affairs (Deptt. of Consumer Affairs), Noti. No. G.S.R. 88(E), dated February 24, 1998, published in the Gazette at India, Extra., Part II, Section 3(i), dated 24th February, 1998, p. 2, No. 56 [File No. 1(1)/97.CPU] [L]


 


14. Substituted sub-rule (2) and the proviso thereof by the Consumer Protection (Amendment) Rules, 1994, w.e.t. 22-6-1994. Prior to its substitution, sub-rule (2) was amended by the Consumer Protection (Amendment) Rules, 1987, w.e.f. 14-7-1987 and the Consumer Protec- tion (Amendment) Rules, 1991, w.e.f. 14-8-1991.


 


15. Substituted by the Consumer Protection (Amendment) Rules, 1997, w.e.f. 27-2-1997. Prior to its substitution, sub-rule (6) was substituted by the Consumer Protection (Amendment) Rules, 1991, w.e.f. 14-8-1991.


 


16. Sub-rules (7), (8) and (9) omitted by the Consumer Protection (Amendment) Rules, 1991, w.e.f. 14-8-1991.


 


17. Sub-rule (10) renumbered as sub-rule (7), w.e.f. 14-8-1991.


 


18. Inserted by the Consumer Protection (Amendment) Rules, 1997, w.e.f. 27-2-1997.


 


19. Substituted for "clauses (d) and (e)", w.e.f. 27-2-1997.


 


20. Substituted by the Consumer Protection (Amendment) Rules, 1991, w.e.f. 14-8-1991.


 


21. Inserted by the Consumer Protection (Amendment) Rules, 1991, w.e.f. 14-8-1991.


 


22. Inserted by the Consumer Protection (Amendment) Rules, 1997, w.e.f. 27-2-1997.


 


23. Inserted, w.e.f. 27-2-1997.


 


CONSUMER WELFARE FUND RULES, 1992


 


GSR 895(E), DATED 25-11-1992 In exercise of the powers conferred by sub-section (2) of section 37, read with section 12-D of the Central Excises and Salt Act,1944 (1 of 1994), the Central Government hereby makes the following rules, namely :-


 


 


RULE 01: SHORT TITLE AND COMMENCEMENT.


(1) These rules may be called the Consumer Welfare Fund Rules, 1992-.


(2) They shall come into force on the date of their publication in the Official Gazette.


 


 


RULE 02: DEFINITIONS.


In these rules, unless the context otherwise requires,-


(a) "Act" means the Central Excises and Salt Act, 1944(1 of 1944)-, or, as the case may be, the Customs Act, 1962 (52 of 1962)-;


1[(b) "Applicant" means any agency/organisation engaged in consumer welfare activities for a period of three years registered under the Companies Act, 1956 (1 of 1956)-or under any other law for the time being in force, including village/ mandal/Samiti level cooperatives of consumers especially Women, Scheduled Castes and Scheduled Tribes, or any industry as defined in the Industrial Disputes Act, 1947 (14 of 1947)-recommended by the Bureau to be engaged for a period of five years in viable and useful research activity which has made, or is likely to make, significant contribution in formultation of standard mark of the products of mass consumption, or State Government, and includes a consumer for the purpose of reimbursing legal expenses as referred to in clause (d) ofrule 8-of these rules;]


(c) "Application" means an application in Form A-I, appended to these rules;


(d) "Bureau" means the Bureau of Indian Standards constituted under the Bureau of Indian Standards Act, 1986 (63 of 1986)-;


{e) "Central Consumer Protection Council" means the Central Consumer Protection Council established under sub-section ( 1 ) of section 4 of the Consumer Protection Act, 1986 (68 of 1986)- , for promotion and protection of rights of consumers;


(f) "Committee" means the Committee constituted under rule 5-;


(g) "Consumer" has the same meaning as assigned to it in clause (d) of sub-section ( 1 ) of section 2 of the Consumer Protection Act, 1986 (68 of 1986)-, and includes consumer of goods on which duty has been paid.


( h) "Consumer Welfare Fund" means the fund established by the Central Government under subsection (1) of section 12C of the Central Excises and Salt Act, 1944(1 of 1944)-;


(i) "Duty" means the duty paid under the Act ;


2[i-a) "Proper Officer" means the officer having the power under the Act to make an order that the whole or any part of the duty is refundable;]


(j) "Standard mark" shall have the same meaning as assigned to it in clause (t) of section 2 of the Bureau of Indian Standards Act, 1986 (63 of 1986)-;


(k:) "Welfare of the Consumers" includes promotion and protection of rights of consumers ;


(l) Words and expressions used in the rules and not defined but defined in the Consumer Protection Act, 1986 (68 of 1986)-shall have the meanings respectively assigned to them in that Act.


 


 


RULE 03: ESTABLISHMENT OF CONSUMER WELFARE FUND.


There shall be established a Consumer Welfare Fund with the Central Government into which credits of amounts of duty and income from investment along with other monies specified in sub-section (2) of section 12C of the Central Excises and Salt Act, 1944 (1 of 1944)-shall be accredited : Provided that any amount having been credited to the Fund is ordered or directed as payable to any claimant by orders of proper officer, appellate authority or court, shall be paid from the Fund.


 


 


RULE 04: MAINTENANCE OF ACCOUNTS AND RECORDS OF CONSUMER WELFARE FUND.


Proper and separate accounts in relation to the Consumer Welfare Fund shall be maintained by the Central Government and shall be subject to audit by the Comptroller and Auditor General of India.


 


 


RULE 05: CONSTITUTION OF THE COMMITTEE.


(1) The Committee constituted by the Central Government under sub-rule (2), shall make recommendations for proper utilisation of the money credited to the Consumer Welfare Fund for the welfare of the consumers, to carry out the purposes of these rules.


(2) The Committee shall consist of the following Members, namely:-


3[(a) The Secretary, Ministry of Civil Supplies, Consumer Affairs and Public Distribution, who shall be the Chairman of the Committee;]


(b) Secretary, Department of Expenditure in the Ministry of Finance who shall be the Vice-Chairman of the Committee;


(c) Chairman, Central Board of Excise and Customs in the Department of Revenue of the Ministry of Finance;


(d) Member (Central Excise) of the Central Board of Excise and Customs in the Department of Revenue of the Ministry of Finance ;


4(e) Secretary/Additional Secretary of Department of Rural Development;


(f) Director General/Additional Director General, Bureau of Indian Standards;]


5[(g) The Joint Secretary of Consumer Welfare Fund in the Ministry of Civil Supplies, Consumer Affairs and Public Distribution, who shall be the Member Secretary of the Committee:]6[Provided that the Chairman or Vice-Chairman, as the case may be, may invite representatives of the State Governments concerned and a nominee of the Consumer Co-ordination Council to the meetings as and when necessary.]


(3) The Committee shall be a Standing Committee.


 


 


RULE 06: PROCEDURE FOR CONDUCT OF BUSINESS


7[(1) The Committee shall meet as and when necessary, but not more than three months shall intervene between any two meetings.


(2) The Committee shall meet at such time and place as the Chairman, or in his absence the Vice-Chairman of the Committee may deem fit.


(3) The meeting of the Committee shall be presided over by the Chairman, and in the absence of the Chairman, the Vice-Chairman shall preside over the meetings of the Committee.


(4) Each meeting of the Committee shall be called, by giving notice in writing to every member of not less than ten days from the date of issue of such notice.


(5) Every notice of the meeting of the Committee shall specify the place and the day and hour of the meeting and shall contain statement of business to be transacted thereat.


(6) No proceeding of the Committee shall be valid, unless it is presided over by the Chairman or Vice-Chairman and a minimum of8[three] other members are present.


 


 


RULE 07: POWERS AND FUNCTIONS OF THE COMMITTEE.


(1) The Committee shall have power ;-


(a) to require any applicant to produce before it, or before a duly authorised Officer of the Central Government, or as the case may be, the State Government, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application;


( b) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers, are stated to be carried on, to a duly authorised officer of Central Government or, as the case may be. State Government;


(c) to get the accounts of the applicants audited, for ensuring proper utilization of the grant;


(d) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump sum, the sanctioned grant to the Committee, and to be subject to prosecution under the Act;


(e) to recover any sum due from any applicant in accordance with the provisions of the Act;


(f) to require any applicant, or class of applicants to submit a periodical report, indicating proper utilization of the grant;


(g) to reject an application placed before it on the basis of involvement of factual inconsistency, or inaccuracy in the material particulars;


(h) to recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status, and importance and utility of nature of activity under pursuit, after ensuring that the financial assistance provided shall not be misutilised;


(i) to require Central Consumer Protection Council or the Bureau, to formulate broad guidelines for considering the projects/proposals for the purpose of incurring expenditure from the Consumer Welfare Fund;


(j) to identify beneficial and safe sectors, where investments out of Consumer Welfare Fund may be made and make recommendations, accordingly.


(2) The Committee shall not consider an application, unless it has been inquired into, in material details and recommended for consideration accordingly, by the Member- Secretary.


 


 


RULE 08: SPECIFICATION OF PURPOSES FOR UTILIZATION OF CREDITS AVAILABLE IN CONSUMER WELFARE FUND.


The Committee shall make recommendations:-


(a) for making available grants to any applicant;


(b) for making available grants recommended by the Bureau for activities relating to standard marks, which may be considered essential by the Central Government, for the welfare of the consumers;


(c) for investment of the money available in the Consumer Welfare Fund;


(d) for making available grants9[on a selective basis], for reimbursing legal expenses incurred by a complainant, or class of complaints in a consumer dispute, after its final adjudication;


(e) For making available grants for any other purpose recommended by the Central Consumer Protection Council10[as may be considered appropriate by the Committee.]


 


1. Substituted by the Consumer Welfare Fund (Amendment) Rules, 1994, w.e.f. 27-1-1994. 633


 


2. Inserted by the Consumer Welfare Fund (Amendment) Rules, 1994, w.e.f. 27-1-1994.


 


3. Substituted by the Consumer Welfare Fund (Amendment) Rules, 1995, w.e.f. 16-1-1995.


 


4. Clauses (e) and (f) substituted by the Consumer Welfare Fund (Second Amendment) Rules, 1994, w.e.f. 16-6-1994.


 


5. Substituted by the Consumer Welfare Fund (Amendment) Rules, 1995, w.e.f. 16-1-1995.


 


6. Inserted by the Consumer Welfare Fund (Amendment) Rules, 1994, w.e.f. 27-1-1994.


 


7. Substituted for the heading "Procedure of the Committee’ ,w.e.f. 27-1-1994 .


 


8. Substituted for "four" by the Consumer Welfare Fund (Amendment) Rules, 1995, w.e.f.16-1-1995.


 


9. Inserted by the Consumer Welfare Fund (Amendment) Rules, 1994, w.e.f. 27-1-1994.


 


10. Substituted for "as may be specified by Central Government to be necessary and expedient for the welfare of consumers" ,w.e.f. 27-1-1994 .

Act Type :- Central Bare Acts
 
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