HOW TO FILE A CONSUMER CASE ?

The novelty of the Consumer Protection Act (CPA) is the inclusion of both goods and services within its ambit. The consumer can bring suit for defective products as well as for deficiency of services.

              In the event of any deficiency, all services, whether provided by the government or private companies, can be questioned under the Consumer Protection Act. Prior to the consumer Protection Act, for any consumer complaint one had to go to an ordinary Civil Court. He had to engage a lawyer, pay the necessary fee, and be harassed for years or decades before any outcome, positive or negative.

            Under the Consumer Protection Act, no Court fee has to be paid and the decision on the complaint is much quicker, as the Court can evolve a summary procedure in disposing off the complaint. Cases now can be filed Online also.

              The Consumer Protection Act, 2019 came into force on 20^th July, 2020. The Consumer Protection Bill 2019 replaces the Consumer Protection Act, 1986. The new Act seeks to provide for the better protection of the interest of consumer and administration of justice.

WHAT IS A COMPLAINT?

“Complaint” means any allegation in writing made by a complainant for obtaining relief under the Act that:

      i.         An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;

     ii.         The goods bought by him suffer from one or more defects ;

    iii.         The services hired or availed of by him suffer from deficiency in any respect;

WHO IS A CONSUMER?

Any person who buys goods or avails services for consideration may be fully paid, partially paid or fully promised to be paid or partially promised to be paid, anybody who uses the goods or services with the consent of the consumer.

WHAT IS A DEFECT?

Fault, imperfection, shortcoming in the Quality, Quantity, Potency, Purity or Standards which is required to be maintained by or under any law for the time being in force by the trader in any manner whatsoever in relation to any goods or product.

CONSUMER RIGHTS:

The six important rights of consumers are defined in the Bill are as under:

      i.         the right to be protected against the marketing of goods, products or services which are hazardous to life and property;

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

    iii.         the right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices;

   iv.         the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate fora;

     v.         the right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and

   vi.         the right to consumer awareness;

CENTRAL PROTECTION CONSUMER AUTHORITY(CCPA):

The establishment of CCPA is to address issues related to consumer rights, unfair trade practices, misleading advertisements and impose penalties for selling faulty and fake products. Broadly, regulatory moves of CCPA will be directed towards the manufacturers, sellers and service providers and will not address customers’ grievances and disputes directly. The overall purpose of CCPA is to strengthen the existing consumer rights.

CONSUMER MEDIATION CELL:

Ø  At the first hearing of the complaint after its admission, or at any later stage, if it appears to the District Commission that there exists elements of a settlement which may be acceptable to the parties, except in such cases as may be prescribed, it may direct the parties to give in writing, within five days, consent to have their dispute settled by mediation in accordance with the provisions of Chapter V.

Ø  The State Government shall establish, by notification, a consumer mediation cell to be attached to each of the District Commissions and the State Commissions of that State. The Central Government shall establish a consumer mediation cell attached to the National Commission.

Ø  Every consumer mediation cell shall submit a quarterly report to the District Commission, State Commission or the National Commission to which it is attached

CONSUMER DISPUTE REDRESSAL COMMISSION:

The object of the Act is to provide speedy and simple redressal to consumer disputes, a quasi-judicial machinery is sought to be setup at the district, State and Central levels. These quasi-judicial bodies will observe the principles of natural justice and have been empowered to give relief of a specific nature and to award, wherever appropriate, compensation to consumers. Penalties for noncompliance of the orders given by the quasi-judicial bodies have also been provided. When the consumers’ rights are violated, they can file a complaint with the Consumer Dispute Redressal Forums which are set up at:

Ø  the District level - cases involving amount upto Rs.1Crore

Ø  at the State level and - 1 Crore- 10Crore

Ø   National level – cases above 10 Crore

The commissions also have the powers of a Civil Court. The appeals from the decision of the District Commission will be heard by the State Commission, Appeals from state Commission will be heard by the National Commission and Appeals’ by the National Commission will be finally heard by the Supreme Court.    

            The aggrieved party shall prefer an appeal in respective commission within a period of 30 days from the date of order of District Commission or a State Commission or the National Commission, as the case may be. 

LIMITATION PERIOD:

Within two years from the date on which the cause of action has arisen.

PRODUCT LIABILITY:

      i.         A product liability action may be brought by a complainant against a product manufacturer or a product service provider or a product seller, as the case may be, for any harm caused to him on account of a defective product.

     ii.         A product manufacturer shall be liable in a product liability action even if he proves that he was not negligent or fraudulent in making the express warranty of a product.

    iii.         A product manufacturer shall not be liable for failure to instruct or warn about a danger which is obvious or commonly known to the user or consumer of such product or which, such user or consumer, ought to have known, taking into account the characteristics of such product.

 CASE LAWS:

1.    Does Medical services fall within the scope of the Consumer Protection Act (CPA)

            Indian Medical Association v V.P. Shantha and others

 Supreme Court has held that the payment of direct or indirect taxes by the public does not constitute “consideration” paid for hiring the services rendered in the Government hospitals. It has also been held that contribution made by a Government employee in the Central Government Health Scheme or such other similar Scheme does not make him a “consumer” within the meaning of the Act. In a government hospital, where services are provided free of charge – the Consumer Protection act would not apply. If however, there are paying customers and well as service being provided for free to the poor, it shall be covered as a service under the act. If the insurance policy company pays for the treatment, it is on behalf of the customer, and hence, it will be covered under the Act.

2.    Does educational institution fall within ambit of Consumer Protection Act(CPA):

            Sehgal School of Competition v Dalbir Singh

         The Commission notes that educational institutes or coaching centre that charge a lump sum fees for the whole duration or should refund the fees if         service is deficient in the quality of coaching etc. Any clause saying that fees  once paid shall not be refunded is unconscionable and unfair and therefore not enforceable. This view was maintained by District and State Forums as well as in appeal by the National Commission. 

3.    Builder deficiency of service related cases:

           Punit Jain vs m/s. Ireo Grace Realtech pvt. ltd.

The case involved between the parties for refunding of money as the Opposite Party (Developer) failed to hand-over the possession of the Flats booked by Complainant in the Project launched by the Developer in the name and style of "The Corridor ", within stipulated period. The Court as of view that the incorporation of such one-sided and unreasonable clauses in the Apartment Buyer's Agreement constitutes an unfair trade practice under Section 2(1)(r) of the Consumer Protection Act. In view of the above, Court held that the Developer cannot compel the apartment buyers to be bound by the one-sided contractual terms contained in the Apartment Buyer's Agreement". And also the Developer is however obligated to pay Delay Compensation for the period of delay which has occurred from purchase till the date of offer of possession was made to the allottees.

CONCLUSION:

The Consumer Protection Act of 2019, which provides easy access to justice, has brought a legal revolution to India as a result of its cost effective mechanisms and popular support. At the same time, these mechanisms pose a great legal challenge to the traditional courts which conduct litigation in orthodox ways. In this age of consumers, the regime of Indian consumer law will undoubtedly rule Indian markets and bestow a new phase on the existing Indian legal structure with its strong ancient legal foundations.