Consumer Protection Act, 1986

Consumer disputes redressal agencies

Redressal Forums have been established as three different levels:

  • District Forum by the state government: at least one in each district. In certain cases, the District Forum may cover 2 or more districts, or there may be two or more District Forums in one district.
  • State Commission by the state government.
  • National Commission (National Consumer Disputes Redressal Commission) by the central government.

District Forum

This shall consist of:

  • A person who is, or has been or is qualified to be a District Judge, who shall be its President; and
  • Two other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman.

Jurisdiction of District Forum
The District Forum shall have the jurisdiction to entertain complaints where the value of goods or services and the compensation (if any) claimed does not exceed rupees five lakhs. A complaint shall be instituted in the District Forum within the local limits of whose jurisdiction:

  • 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
  • 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 District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or
  • The cause of action, wholly or in part, arises.

Manner in which a complaint shall be made
A complaint may be filed with a District Forum by:

  • The consumer to whom such service is provided or is agreed to be provided.
  • Any recognized consumer association, whether the consumer to whom the service is provided or is agreed to be provided is a member of such association or not.
  • 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.
  • The central or state government.

Procedure on receipt of complaint
The District Forum shall on receipt of a complaint:

  • Refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of 30 days or such extended period not exceeding 15 days as may be granted by the District Forum.
  • Where the opposite party, on receipt of a copy of the complaint, 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:
    • 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
    • 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.

In addition to procedure prescribed under section 13 (2) of the Act, further procedure has been provided for under the respective State Rules, which are almost identical in each state. Such further procedure as provided in Consumer Protection (Rajasthan) Rules, 1987 is as under:

  • Where the opposite party admits the allegation made by the complainant, the District Forum shall decide the complaint on the basis of the case and documents present before it.
  • If during the proceeding conducted under section 13 of the Act, the District Forum fixes a date for hearing of the parties, it shall be obligatory on the complainant and opposite party or its authorized agent to appear before the District Forum on such date of hearing or any other date to which hearing could be adjourned.
  • Where the complainant or his authorized agent fails to appear before the District Forum on such day, the District Forum may at its discretion either dismiss the complaint in default or if a substantial portion of the evidence of the complainant has already been recorded, decide it on merits. Where the opposite party or its authorized agent fails to appear on the day of hearing, the District Forum may decide the complaint ex parte.
  • Where any party to a complaint to whom time has been granted fails to produce his evidence or to cause the attendance of his witness, or to perform any other act necessary to the further progress of the complaint, for which time has been allowed, the District Forum may notwithstanding such default:
    • if the parties are present, proceed to decide the complaint forthwith; or
    • if the parties or any of them is absent, proceed as mentioned above in sub-rule ? words missing
  • The District Forum may, on such terms as it may think fit at any stage, adjourn the hearing of the complaint but more than one adjournment shall ordinarily be given and the complaint should be decided within 90 days from the date of notice received by the opposite where complaint does not require analysis or testing of the foods and within 150 days if it requires analysis or testing of the goods.

Powers of civil court to District Forums
The District Forum is also vested, under section 13(4), with the following powers as are vested in a civil court under the Code of Civil Procedure 1908, while trying a civil suit in the following matters:

  • The summoning and enforcing the attendance of any defendant or witness and examining the witness on oath
  • The discovery and production of any document or other material object producible as evidence
  • The reception of evidence on affidavits;
  • The requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from the appropriate laboratory repetition (?) or from any other relevant source
  • Issuing of any commission for the examination of any witness.