An article about " Forums for resolving Consumer Disputes "

Forums for resolving Consumer Disputes

The Consumer Protection Act 1986 provides three tier adjudication of disputes between the complainant and the opposite party. These adjudication bodies are 
(1) District Forum, 
(2)State Commission and 
(3) National Commission. 
Hierarchy-wise District Forum is the lowest redressal agency. The District Forum consists of three members: the President and two members. The President will be a judicial member and members are non-judicial persons, who have knowledge and experience of minimum ten years dealing with the problems relating to economics, law, commerce, accountancy, industry, public affairs or administration with a bachelor degree from a recognized university and who is not below the age of 35 years. One of the members shall be a woman. They must be persons of ability, integrity and standing.

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Jurisdiction

The District Forum has powers to entertain complaints, where the value of goods, services or compensation claimed does not exceed Rs.Twenty lakhs. Apart from financial jurisdiction, the District Forum has territorial jurisdiction. A complaint may be lodged in District Forum within the local limits of whose jurisdiction the opposite party and if there are more than one opposite party, each of the opposite party normally resides or carries on business or has a branch office or personally works for gain at the time of institution of complaint, or any of the opposite parties where there are more than one, normally resides or carries on business, or has a branch office or personally works for gain. Permission of the District Forum is necessary or alternatively the other opposite parties who do not reside in the jurisdiction of the District Forum have to agree for such filing of complaint. Even the complaint may be filed in District Forum in whose jurisdiction is the whole or part of cause of action arises.

Limitation

The limitation period is two years from the date on which cause of action has arisen. The Forum may permit filing of the complaint even after the limitation period of two years, if the complainant satisfies the forum about the sufficient reasons / causes for delay in filing the complaint. However, the forum has to record reasons for having waived the limiation period. Consumer Protection Act 1986 has prescribed certain procedures for filing a complaint with the District forum. The complaint shall be within the pecuniary and territorial jurisdiction and shall be within the limitation period. The complaints along with the supporting documents shall be filed before the District forum, in addition to as many copies as the number of respondents.

The District Forum entertains complaints, which are related to goods sold, or agreed to be sold or delivered or to any services provided or agreed to be provided. The complainant; i.e. the person who files complaint must be a consumer to whom goods are sold or agreed to be sold or delivered, any services provided or agreed to be provided. Any recognized consumer association may also prefer a complaint. It is not necessary that the consumer who has actually suffered should be a member of such an association. In case there are more than one consumer, where all the consumers have common interest, any one may file a complaint with the permission of forum. The Central or State Government may file a complaint in its individual capacity  or as a representative of consumer interests in general. Each and every complaint to the District Forum shall have proof for having paid the prescribed fee.

Depending upon the merits of the case, the forum may accept the complaint or reject it. But no complaint will be rejected unless an opportunity is provided to the complainant to present his case. The District Forum has to decide about the admissibility of the complaint within twenty-one days of receipt of complaint. When once the complaint is admitted by the District Forum, it shall not be transferred to any other court, tribunal or authority set-up under any law, which is in  force for the time being.

After admission of complaint, the district forum forwards the copy of the admitted complaint to the opposite party, within twenty-one days of admission of complaint, for submission of his version of the case. The opposite party has to submit his version of the case within thirty days. This period may be extended by another fifteen days at the discretion of the forum.

The opposite party may deny or dispute the allegations contained in the complaint or may even ignore the complaint. If necessary the District forum may arrange for analysis of disputed goods. In such cases, the complainant who has opted for analysis has to deposit the fees as specified with the forum for payment to the appropriate laboratory. The disputed goods have to be tested and analyzed only at a recognized appropriate laboratory. The forum shall seal the sample of the disputed goods, authenticate and forward to the appropriate laboratory with the fees directing to analyse the goods to find out whether the goods suffer from any defects as alleged in the complaint or any other defect and report to the forum. The report from the laboratory shall be made available to the forum within forty-five days of reference. This time limit may be extended at the discretion of the forum. On receipt of the report, the District forum forwards a copy of the report along with its remarks to the opposite party. If any of the parties disputes the finding of  appropriate laboratory or the procedure followed for analysis, such objections have to be filed in writing with the forum. Thereafter, after providing reasonable opportunity to the complainant and opposite party and based on the evidence brought before it is the forum shall settle the consumer dispute. The forum may also pass Ex-parte orders based on the evidence by the complainant, if the opposite party fails to take any action or to represent his case. If the complainant fails to appear on the date of hearing before the forum, the complaint may be dismissed or decided on merits.

Time limit for disposal

Sections 13, 14 & 15 of the consumer Protection Act 1986, deal with procedure and is to be followed by the District Forum. The Act has laid down that every complaint shall be heard as expeditiously as possible and every effort should be made to decide the complaint within three months from the date of receipt of notice by the opposite party. In case the commodity which is the subject matter of complaint requires analysis or testing in an appropriate laboratory, the case shall be decided within five months from the date of receipt of notice by the opposite party. Generally the Forum does not permit any adjournments unless sufficient reason is shown and the Forum has to record in writing the reasons for any adjournment given. If the case cannot be decided within the prescribed time frame the Forum has to record in writing, the reasons for such delay. The Act also provides for making orders as to the costs incurred by the adjournments as per the regulation made under the Act. If the cases are complicated requiring recording of evidence of experts, the complainant may be ordered to approach civil court (Indian Medical Association vs. V.P. Shantha (1995) 6 SCC 651. It has been held that the District Forum has no jurisdiction or power to pass any interim orders pending disposal of complaint. (Gulzarilal Agrwal vs Account Officer (1996) 10 SCC 590) and (Morgan Stanley ) vs. Kartica Das. (1994) 4 SCC 225-(1994) 2 CPJ 7(SC)

Powers of the District Forum

As per the Act, the District Forum has the same powers as that of a civil court under civil procedure code 1908 on following matters.

1. Summoning and enforcing attendance of any defendant or witness and examining the witness on oath.

2. The discovery and production of any document or other material object producible as evidence.

3. Receiving evidence on affidavits.

4. Calling for the concerned analysis or test reports from the appropriate authority or any other relevant source.

5. Issuing of any commission for examination of witness.

Every proceeding before the District forum is a judicial proceeding and the Forum is deemed to be a civil court. Where there are numerous consumers having the same interest, the provision of rule 8 of order 1 of schedule 1 to the Code of Civil procedure 1908, shall apply subject to the modification that every reference to the suit of decree shall be construed as a reference to the complaint or the order of the District Forum there on. This provision is inserted by the Consumer Protection (Amendment) Act 2002. The said rule states that where there are numerous persons having some interest in one suit, one or more persons with the permission of the court may institute legal proceedings, on behalf or for the benefit of all the persons so interested.

In case of the death of the complainant or the opposite party, the provisions of Order XXII of the first schedule to the Civil Procedure Code shall apply, with a slight modification that, every reference therein to the words plaintiff and defendant shall be construed as reference to the complainant or the opposite party as the case may be. Order XXII of the Civil Procedure Code deals with death, marriage, and insolvency of parties to the suit. As the purpose of this article is to inform the common man the basic principles of Consumer Protection Act, the details of the provisions of civil procedure will not be dealt with here.

Findings of the District Forum

         

If after conducting the proceedings as prescribed and if the Forum is satisfied, that:

1) The goods in question suffer from defects Or

2) The allegations against services referred in the complaint are proved, the Forum will issue an order to the opposite party to do the following things;

a)  To remove the defects in the goods as pointed out by the appropriate laboratory, if possible.

b)  To replace the goods with new goods of similar type which are free from defects.

c)  To refund to the complainant the price of the goods or as the case may be, the charges paid by the complainant.

d) To pay such amounts as may be awarded by the Forum as compensation to the consumer (Complainant) for any loss or injury suffered by the consumer due to the negligence of opposite party.

e)  To remove the deficiencies in service in question.

f)  To discontinue the unfair trade practice or restrictive trade practice or not to repeat them.

g)  Not to offer hazardous goods for sale.

h) To stop manufacture of hazardous goods and to desist from offering services which are hazardous in nature.

i)  To pay the amounts as determined by the Forum if in its opinion loss or injury has been suffered by large number of consumers who are not identifiable conveniently. Such compensation shall be not less than five percent of the value of the defective goods sold or services provided. The Forum may also order to credit such compensation in favour of a particular person or may direct how such compensation may have been utilized.

j)  To issue corrective advertisement at the cost of the opposite party to neutralize the effect of misleading advertisements released by the opposite party.

k)  To provide for adequate costs to parties.

The opposite party may have to do any one or more of the things depending upon the findings of the Forum.

The proceedings of the District Forum have to be conducted by its President together with at least one member. If a member is unable to conduct the entire proceedings for any reason the President together with the other members shall continue and complete the proceedings. Every order of the Forum has to be signed by the President and the member or members who conducted the proceedings. In some cases the President and the member who conducted the proceedings may differ on certain points. In such cases they refer these points to the other member for hearing. The opinion of the majority shall be the order of the Forum.

Any party aggrieved by the orders of the District Forum may prefer an Appeal to the State Commission. The limitation period is thirty days from the date of order. However, the State Commission may admit the appeals received after the limitation period, if it is satisfied that there was sufficient reason for the delay. But the person preferring an appeal has to deposit fifty percent of the amount if any ordered to be paid by the District Forum or Rupees Twenty five thousand, whichever is less. If no appeal is preferred against the orders of the District Forum, the order shall be  final.