Q. What are the aims and objects of the CPA, 1986? Describe the constitution, functions and the procedure of District Forum under the CPA. What are the provisions of appeal under the CPA and before which authority an appeal lies against an order of an agency? Explain the composition, jurisdiction, and powers of State Consumer Forum (State Consumer Redressal Commission) under CPA. Define and discuss the word"consumer" and "service" under CPA. Illustrate with cases. Making money quickly is a very tempting proposition. Businesses, companies, shopkeepers, retailers, and sellers are all interested in maximizing their profits. In doing so, very often they neglect the best interests of the buyer. Many times, a buy gets a defective product, or a product that fails to perform as promised. Besides losing money put in purchasing a product, some times, due to defects in the product, the buyer is injured as well. In all such cases, there is a violation of a legal right of the buyer and he is entitled to sue the seller. Before enactment of the Consumer Protection Act, 1986, filing a civil suit for damages was the only option available to an aggrieved buyer. However, such a suit is very expensive and time consuming, because of which, buyers were not able to use this mechanism for relatively smaller amounts. This gave a field day to the traders because making substandard products or not delivering on promises was a cheap option to make quick money, after all, very few buyers would go to court. A common man was completely helpless because of no control and penalty over unscrupulous sellers. In this background, the CPA 1986 gave power in the hands of the buyer by allowing an easier and cheaper way to redress their grievances, thereby holding the sellers accountable for their actions more often. It provides redress to a consumer when the purchased product is defective or when there is a deficiency in service. The following are aims and objectives of this act - 1.The most important objective of this act is to provide a fast and cheap way for consumers to hold the sellers accountable for their products or services. 2.Justice to consumers.
3.Protection of consumers from fraudsters or companies selling substandard products and services. 4.Penalty to sellers for substandard product or service.
5.Check on sellers and service providers.
Besides the above objectives, Section 6 of CPA 1986 also provides certain rights as objectives to the consumers. These are - 1.Right to be protected against goods that are hazardous or dangerous to life and property. 2.Right to be informed about the quality, quantity, potency, purity, standard and price or a product and service. 3.Right to competitive pricing.
4.Right to be heard and to be assured that consumer interest will receive due consideration at appropriate forum. 5.Right to redressal against unfair trade practices and exploitation of consumers. 6.Right to consumer education.
It is a complete code in the sense that it provides complete details of the constitution and jurisdiction of the commission and procedure for filing the complaint and appealing the decision. It does not depend on CPC and the cases can be finalized completely under this act. In fact, as held in Ansal Properties vs Chandra Bhan Kohli 1991, Consumer Disputes Redressal Agencies provide complete machinery for justice including a final appeal to the Supreme Court and so are outside the scope of High Courts and HCs can't entertain writ petitions against their judgments. Under Section 9 of this act, three agencies are established to hear consumer complaints - A Consumer Disputes Redressal Forum in each district (For amounts up to 20 Lakhs) A Consumer Disputes Redressal Commission in each state. (For amounts from 20 Lakhs to 1 Cr) A National Consumer Disputes Redressal Commission in the center. (For amounts above 1 cr) District Forum
Composition (Section 10)
1. Each District Forum shall consist of -
a.A person who is, or who has...
Please join StudyMode to read the full document