Procedures relating to consumer complaints

Presentationon business law (11)

Shikha kumariImba,238th sem.Procedures relating to consumer complaints[sections 12 &13]consumer forums are the bodies who function like courts in order to settle the consumer disputes. Their composition is so made as to best represent the interests of the consumer dispute. Their composition is so much made as to best represent the interests of the consumers, and they have specified jurisdictions of their own.Section 13 of the Act has detailed the procedure in context of District Forum only. For state commission, section 18 say that it will follow the same procedure as followed by District Forum with such modifications as necessary.Similary,section22 empowers the Nation Commission to make modifications in the procedure prescribed for the District Forum as per its needs.Note that earlier to the Amendment Act,2002(effective from 15th march,2003),power to make rules regarding the procedure to be followed by the National commission was vested with the Central Government.Provisions of section13 discusses about the procedure to be followed by the District forum, or the state commission, or the National commission, as the case may be, on the receipt of a complaint. A complaint may be with respect to the goods or services:When the complaint related to goods, the criteria for the decision is-Whether the goods are defective or not. Now the question is-how to hold that the goods are defective?The most logical way is to get the goods tested to determine the defect. However , in certain case defect can be determined without technical support or it may happen that the test is not feasible. They are:The opposite party admits the defect.The defect is obvious and is visible to naked eyes.When the complaint is not in possession of the subject- matter of the complaint.When subject-matter of the complaint gets destroyed, like in case a pressure cooker burst, its remain cannot be send to the laboratory for testing.In case of complaint regarding deficiency in service there is no question of testing or analysis.

Cases when the laboratory testing may not be required or feasible:

Where the laboratory test is required to determine the defect in the goods.Where no laboratory test is required to determine the defect in goods or the complaint relates to services under two sub-headings:How a complaint is dealt by consumer forums.Procedure to be followed by the national commission[ Sec 22 & Sec 22a].

How a complaint is dealt by consumer forumA consumer is supposed to file as many copies of the complaint as there are judges. These copies are to be submitted, with all essential information, supporting papers like correspondence, and specifying the compensation demanded.Every complaint filed should be accompanied with such amount of fee and payable in such manner as may be prescribed.(a) On receipt of a complaint: the district forum may allow the complaint to be proceeded with or rejected. However, the complaint shall not be rejected unless an opportunity of being heard has been given to the complaint.The admissibility of the complaint should ordinarily be decided within 21 days from the date on which complaint was received .(b) Within 21 days from the date of admission of complaint the District forum should 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 which has been extended to 45 days.

(c) Every complaint shall be heard as expeditiously as possible and endeavour shall be made to decide the complaint within a period of 5 months in case laboratory testing is not required , from the date of receipt of notice from the opposite party.And no adjournment shall be ordinarily granted by the district forum unless sufficient cost is shown and the reasons for grant of adjournment have been recorded in writing by the forum. (d) where the laboratory test is required to determine the defects in goods. When the opposite party on receipt of a complaint refer to him admits the claim there is no contention and the forum will pass the appropriate order.But where the opposite party denies or disputes the allegations contained in the complaint or omits or fails to take any actions to represents his case within the time given by the district forum, the district forum would take the following steps to settle the disputes: (1) the district forum may require the complaint to deposit the specified fees for payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question.The district forum will remit such fees to the appropriate laboratory to enable it to carry out required analysis or test.(2) the district forum will obtain a sample of the goods, seal it, authenticate it and refer the sample so sealed to the appropriate laboratory for an analysis or test, whichever may be necessary with a view to find out whether such goods suffer from any defects.(3) upon receiving laboratory reports, its copy will be forwarded by the district forum to the opposite party along with its own remarks.(4) in the event of any party disputing the correctness of findings, or the method of analysis or test adopted by appropriate laboratory, the district forum shall require the objecting party to submit his objection in writing.(5) the district forum will give a opportunity of hearing to the objecting party.(e) where no laboratory test is required to determine the defect in goods or the complaint related to service.The opposite party on receipt of complaint referred to him may (1.) admit the complaint(2.) deny or disputes the allegations contained in the complaint, or (3.) omits or fails to respond within the time given by the district forum

Where the opposite party admits the allegations, the district forum should decide the matter on the basis of merits of the case and the documents before it.Where the opposite party deny or dispute the allegation made in the complaint, the district forum will proceed to settle the dispute on the basis of evidence brought to its notice by both the parties.Where the opposite party omits or fails to respond within the time given by the forum, the district forum will proceed to settle the ex-party on the basis of evidence brought to its notice by the complainant.(f) 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, and where the opposite party omits or fail to take any actions, the forum shall decide the dispute ex-party.(g) Where during the pendency of any proceeding before the forum, it appears to its necessary, it may pass such interim order as is just and proper in the fact and circumstances of the case.(h) The district forum shall issue an appropriate order after hearing the parties and taking into account the available evidence.What is the appropriate laboratory under the Act Section 2(1)(a) of the act defines an appropriate laboratory as a laboratory or organisation Recognised by central government, Recognised by state government, subject to such guidelines as may be prescribed by the central government or 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.Procedure to be followed by the national commission[section 22& 22A]Section 22 of the act provides that the provisions of sections 12,13 & 14 and rules made there under for the disposal of complaints by the district forum shall, with such modifications be applicable to the disposal of disputes by the national commissions.where an order is passed by the national commissions ex-parte against the opposite party or a complaint as the case may be , the aggrieved party may apply to the commission to set aside the said order in the interest of justice Further , 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.SERVICE OF NOTICE[ SECTION28 A]The act has laid down certain rules with respect to service of notice:(a) the service of notices may be made by delivering or transmitting a copy there off the registered post acknowledgement duly addressed to opposite party against whom complaint is made or to the complaint 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)(b) when an acknowledgement or any other receipt purporting to be signed by the opposite party or his agent or by the complaint is received by the district forum ,the state commission or the national commission , as the case may be shall declare that the notice has been duly served on the opposite party or to the complainant.

(c) when the postal article containing the notice is received back by consumer forum ,with an endorsement to have been made by a postal employee or by any person authorised but 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 when tendered or transmitted to him, the forum shall declare that the notice has been duly served on the opposite party or to the complainant

(d) where the notice was properly addressed, prepaid and duly sent by registered post acknowledgement has been lost or mislead, or for any other reason, has not been received by the consumer forum, within 30 days from the date of issue of notice, the forum shall declare that the notice has been duly served on the opposite party or the complainant.POWERS OF THE CONSUMER FORUMS[SECTIONS 13(4),14(1)&RULE 10]1)Powers akin to those of civil court [section 13]:The Consumer Forums are vested with the Civil Court powers with respect to the following:(a)Summoning and enforcing the attendance of any defendant or witness and examining the witness on oath;(b) Discovery and production of any document or other material object producible evidence;(c) Receiving of evidence on affidavits;(d) Requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;(e) Issuing of any commission for the examination of any witness;(f) The Forum may make such orders as to the costs occasioned by the adjournment as may be provided in the regulations made under this Act;(g) During the pendency of any proceedings before the Forum ,it may pass such interim order as is just and proper in the facts and circumstances of he case;(h) Any other matter which may be prescribed.2)Powers akin to those of criminal court [Section 27]The Consumer Forums shall be deemed to be a Judicial Magistrate of the first class for the purpose of the Code of Criminal Procedure ,1973.It means that as to the consumer disputes dealt with by the Forums ,they can use the powers which are granted to the first class judicial magistrate under the Code of Criminal Procedure,1973.

3)Power to make summary judgementThe Consumer Forums have been granted power to try the cases on summary basis by the Amendment Act,2002(effective from 15th March,2003). Summary trial means that the Forums need not consider any evidence, they deal with the trial on the basis of affidavits given by the parties. 4)Additional powers of the consumer forums [Rule 10]The National Commission ,the State Commission and the District Forum have following additional powers:Requiring production off any books,accounts,documents,or commodities from any person ,examining and retaining them.Obtaining information required for the purpose of the proceedings from any person.Enter ans search any premises and seize from such premises books, papers,documents,commodities required for the purpose of proceedings under the Act.

5)Power to issue order[Section 14(1)]

If, after the proceedings ,the Forum is satisfied that the complainant suffer from any defect in goods or deficiency in service, it may issue an order to the opposite party directing them to do one or more of the following things, namely:-To remove the defect pointed out by the appropriate laboratory from the goods in question;To replace the goods with new goods of similar description which shall be free from any defect;To return to the complainant the price,or as the case may be the charges paid by the complainant;To pay such amount as may be awarded by I as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party. As for the amount of damages ,the Consumer Forum has the power to grant punitive damages as it deems fit;

To remove the defects in goods or deficiencies in the service in question;

To discontinue the unfair trade practice or the restrictive trade practice or not to repeat it;Not to offer the hazardous goods for sale;To withdraw the hazardous goods and to desist from offering services which are hazardous in nature;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 consumers who are not identifiable conveniently, To issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement;To provide for adequate costs to parties.Executory Powers [Section 25]The Amendment Act ,2002,has vested the Consumer Forums with the executory powers which they were lacking hitherto.These are discussed below-Where an interim order made under this Act is not compiled with,the Consumer Forum may order for the attachment of the property of the person not complying with such order.

b) If the non-compliance of such attachment order continues for more than three months, the property attached may be sold and out of the proceeds thereof, the Consumer Forum may award such damages as it thinks fit to the complainant and shall pay the balance , if any to the party entitled thereto. c) here under an order made by a Consumer Forum any amount is due from any amount is due from any person, the person entitled to the amount may make an application to the forum, and such may issue a certificate for the said amount to the Collector of the district and the Collector shall proceed to recover the amount in the same manner as arrears of land revenue.(7) Regulatory powers [Section 30 A] The National Commission may, with the previous approval of the Central Government by notification ,make regulations not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.

SITTING OF THE FORUMS33.7-1 Sitting of the District Forum [Section 14(2)]- For conducting any proceedings to resolve a consumer dispute ,at least two members of the forum must be there one of whom should be the president.

33.7-2 Sitting of the State Commission- Every proceeding is required to be conducted by the president of the State Commission and at least one member thereof sitting together.

33.7-3 Sitting of the National Commission The Act is silent about the sitting requirement of the National Commission , but the Consumer Protection (Amendment) Rules,1991,require that the disputes must be disposed of by atleast three members of the National Commission ,one of whom must be the President . Moreover it says that the rules regarding sitting are mandatory. Any failure to comply with the same may invalidate the order. However the Consumer Protection (Amendment) Act,2002,has introduced the concept of Benches, whereby the jurisdiction ,powers and authority of the National Commission may be exercised by Benches thereof.

A Bench may be constituted b the President with one or more members as the President may deem fit. Thus it seems that the spirit of the Act supports the sitting of two members in total one of the whom must be the president,is capable of passing a valid order.

ORDERS OF THE FORUMSThe orders of the Consumer Forums are like orders of the Civil Court and are enforceable like a decree of the court. The order of a junior Forum is appealable with the senior Forum ,and when no appeal is instituted ,the order is final. However ,the law has prescribed certain norms as to the signing of orders without complying which the orders cannot be made.

Signing of orders of the Forums(1) District forum Section 14(2A) provides that every order made by the District Forum shall be signed by its President and the member or members who conducted the proceeding.If there is difference of opinion between any two members, matter should be referred to the third member for a decision .And the decision of the majority would be final. Thus any order passed by a single member of the District Forum is not warranted.

(2) State Commission Every order made by the National Commission must be signed by its President and the member or members who conducted the proceeding. If there is difference of opinion between any two members ,matter should be referred to the third member for a decision. And the decision of the majority would be final.

(3) National Commission Every order made by the National Commission must be signed by the President ,and at least two members who conducted the proceeding ,and in case of any difference of opinion ,the opinion of the majority shall be the order of the Commission.

Appeals against ordersAppeal is a legal instrumentality whereby a person not satisfied with the findings of a court has an option to go to a higher court to present his case and seek justice.

In the context of Consumer Forums-1.An appeal can be made with the State Commission against the order of the District Forum within 30 days of the order which is extendable for further 15 days.2.An appeal can be made with the National Commission against the order of the State Commission within 30 days of the order or within such time as the National Commission allows.3.An appeal can be made with the Supreme Court against the order of the National Commission within 30 days of the order or within such time as the Supreme Court allows.Finality of orders

Where no appeal has been preferred against the order made by the District Forum ,or State Commission ,or the National Commission ,such order shall be final.

Penalties for non-compliance of ordersEvery order made by the District Forum ,or State Commission ,or the National Commission may be enforced in the same manner as if it were a decree of the court.[Section 25]All the persons- the trader ,or complainant,or the opposite party are supposed to comply with the orders of the District Forum ,or State Commission ,or the National Commission .When any such person fails or omits to comply with the order ,the District Forum ,or State Commission, or the National Commission as the case may be, may punish him with-Imprisonment for a term ranging between one month and three years ,orWith fine ranging between Rs.2,000 and Rs. 10,000, orWith both. THANK you