Framework

Consumer protection laws are a form of government regulation, which aims to protect the
rights of a consumer. In India, the Consumer Protection Act of 1986 is the law governing
consumer protection. Under this law, Separate Consumer tribunals have been set up
throughout India in each and every district in which a consumer [complaint can be filed by
both the consumer of a goods as well as of the services] can file his complaint on a simple
paper without paying any court fees and his complaint will be decided by the Presiding
Officer of the District Level. An appeal could be filed to the State Consumer Disputes
Redressal Commissions and after that to the National Consumer Disputes Redressal
Commission (NCDRC). The procedures in these tribunals are relatively less formal and more
people-friendly and they also take less time to decide upon a consumer dispute when
compared to the years-long time taken by the traditional Indian Judiciary. In recent years,
many effective judgments have been passed by some state and National Consumer Forums.
The Grievance redressal mechanism of an organization is the gauge to measure its
efficiency and effectiveness as it provides important feedback on the working of the
Organization. The main purpose of a Grievance Policy is to place an appropriate mechanism
whereby the Customer who believes (s) that he/ she has been wronged by any act of the
Company is afforded a fair opportunity to redress his/ her Grievance. Putting the importance
and necessity of consumer protection and redressal of grievances in mind, this chapter
reviews the frameworks for consumer dispute resolution and redress in India.
Framework-
Grievance redressal system
Three-tier Grievance redressal machinery and forums-

Consumer Disputes In India-
Consumer dispute means dispute where the person against whom a complaint has been
made, denies or disputes the allegation contained in the complaint. Before reviewing the
consumer redressal forums, it is important to know the different types of consumer disputes.
A consumer can approach consumer forum for redressal of following types of disputes.
1. Electricity consumption and Bills
2. Insurance
3. Medical facilities
4. Hospitals
5. Phone manufacturers (Nokia, Samsung, LG, etc.)
6. Telecommunication companies (Airtel, Idea, Tata Indicom, Reliance, etc.)
7. Builder and Developers
8. Hotel and Restaurants (Maurya Sheraton, Hayaat, etc.)
9. Airlines (Air India, Jet Airways, Go, Indigo, Lufthansa, etc.)
10. Travel Agencies (makemytrip.com, yatra.com, clertrip.com, etc.)
Auto Companies (TATA, Maruti, Honda, Hyundai, etc.)
The above-mentioned list is not exhaustive. The categorization of disputes will depend upon
the facts. It is essential that public authorities have a place and play an active role in
consumer policy and justice. The simple fact that one or several authorities are responsible
for consumer policy has an influence on consumer protection and the role of consumer
organizations. Some Member States have a single public authority that deals with consumer
law; some have several public authorities that are competent. Yet, in the other Member
States, consumer organizations are the only body responsible for the enforcement of
consumer protection law.
Consumer Courts In India-
Protecting the interests of consumers has been one of the major concerns of the Indian
Government. Several policies and legislations have been in place in order to promote the
concerns of the consumers and grant them the rights of choice, safety, information, and
redressal. Accordingly, there is a well-placed departmental set up both at the Central and
State level in the form of a separate department. Fostering the development of effective, low-
cost ways for consumers to resolve their disputes and obtain monetary compensation for
losses sustained is a key consumer policy objective. The particular features of consumer
disputes require tailored mechanisms that can provide consumers with access to remedies
that do not impose a cost, delay, and burden disproportionate to the economic value at
stake. Hence, in India, under the Consumer Protection Act, 1986, consumer courts have
been established for the redressal of consumer grievances.
Consumer Court is the name given to special purpose courts, mainly in India, that deal with
cases regarding consumer disputes and grievances. These are judiciary set ups by the
government to protect consumer rights. If any consumer is cheated by the seller he/she can
approach the redressal forum to seek justice. Their main function is to maintain the fair
practices by the sellers towards consumers. Consumer Protection Act provides for the
creation of consumer courts. The central government is given the responsibility to create and
maintain the National Consumer Disputes Redressal Commission in New Delhi. The state
government is given the responsibility to create a State Consumer Disputes Redressal
Commission at the state level and a District Consumer Disputes Redressal Forum at the
district level.
National Consumer Disputes Redressal Commission-
The National Commission was constituted in the year 1988. The National Consumer Court
must ordinarily be functioning in New Delhi and is presided over by a person who is currently
or has been in the past a judge of the Supreme Court. The President of the National
Consumer Disputes Redressal Commission (NCDRC) is appointed by the Central
Government after consultation with the Chief Justice of India. The National Consumer
Commission has a minimum of four other members and is appointed by a committee chaired
by a Supreme Court judge as recommended by the Chief Justice of India. Members of the
NCDRC can have a term of up to five years or up to 70 years, whichever is earlier. If your
complaint seeks more than one crore rupees of compensation from a company, then the
National Consumer Commission has the pecuniary jurisdiction over your complaint. In order
to attain the objects of the Consumer Protection Act, the National Commission has also been
conferred with the powers of administrative control over all the State Commissions by calling
for periodical returns regarding the institution, disposal, and pendency of cases. It is
empowered to issue instructions regarding (1) adoption of uniform procedure in the hearing
of the matters; (2) prior service of copies of documents produced by one party to the
opposite parties; (3) speedy grant of copies of documents; and (4) generally overseeing the
functioning of the State Commissions or the District Forums to ensure that the objects and
purposes of the Act are best served without in any way interfering with their quasi-judicial
freedom
The National Consumer Court handles five types of complaints:
1. Appeals from State Consumer Disputes Redressal Commissions
2. Consumer complaints that occurred in India, except in the State of Jammu and
3. Kashmir
4. Cases from State Consumer Commissions where there has been accusations or
proof of
5. material irregularity or illegal activities
6. Cases where ex-parte (where verdicts have been passed in the absence of either
7. parties) orders have to be set aside.
8. Complaints that have been sought or need to be transferred from one State
Consumer Commission to another in the interest of justice
State Consumer Disputes Redressal Commission-

Under the Consumer Protection Act, 1986 a State Consumer Disputes Redressal
Commission shall be set up by the State Government for the respective State. At present
there are 35 State Commissions functioning in different States. The law provides that the
State Consumer Commission function in the state capital, but the government has the power
to move it as needed. The President of the State Consumer Commission shall be or should
have been a High Court judge and should be appointed only after consultation with the Chief
Justice of the High Court with the state’s jurisdiction. The remaining members of the
commission are appointed by a committee with the President of the State Consumer Court
as its chairman, and they can have a term of up to five years or up to 67 years, whichever is
earlier. The State Consumer Disputes Redressal Commission deals with a pecuniary
jurisdiction of only those complaints where the compensation sought is higher than twenty
lakhs but lesser than one crore.
The State Consumer Forum usually hears cases of three types:
1. Appeals from District Consumer Forums
2. Cases against companies that operate an office or a branch in the state.
3. Cases where the actual reason why you are filing the complaint (such as the signing
of an agreement or payment of a bill) partially or fully occurred within the stat
The State Consumer Court also has the powers to transfer a case from one District
Consumer Forum to another Forum provided there is such a request or it is in the interest of
the law. If you are not satisfied with the verdict from the State Consumer Court, you can
appeal to the National Consumer Disputes Redressal Commission, within a period of 30
days. If a verdict has been given against the company, it can appeal only after depositing
50% of the compensation to be paid to you or Rs.35000/-, whichever is lesser
The State Commission shall ordinarily function in the State Capital but may perform its
functions at such other places as the State Government may, in consultation with the State
Commission, notify in the Official Gazette, from time to time.
District Consumer Disputes Redressal Forum-

Under the Act, the State Government shall establish a District Forum in each district of the
State, though, more than one District Forum may be established in a district if it is deemed
fit. Presently, there are 659 District Forums functioning in different States. The President and
members are directly/indirectly appointed by the state government and he shall be eligible to
be a district judge. All members of the court can have a term of up to five years or up to 65
years, whichever is earlier. The District Consumer Forum cannot conduct a hearing without
the President and at least one other member.
This consumer court deals with complaints where the compensation sought is less than
twenty lakhs. This limit is commonly known as the 'pecuniary jurisdiction' of the District
Consumer Disputes Redressal Forum.
A District Consumer Forum can hear cases for any company that operates an office or a
branch in the district. It can also hear cases provided the actual reason why you are filing the
complaint (such as sale or maintenance service that led to the defect) partially or fully
occurred within the district. For this same reason, it is very important that you do not do
business with any company that does not have local representation or one that makes you
sign an agreement regarding the jurisdiction of the dispute.
The law provides that the District Consumer Disputes Redressal Forum has the same
powers as a civil court under Code of Civil Procedure 1908, but you may be surprised as to
how much of this power in law books actually manifests when putting to practice. The District
Consumer Forum can order the company to take the following actions once it hears the
complaint and decides that the company is at fault:

1. Correct deficiencies in the product to what they claim
2. Repair defect free of charges
3. Replace the product with similar or superior product
4. Issue a full refund of the price
5. Pay compensation for damages/ costs/ inconveniences
6. Withdraw the sale of the product altogether
7. Discontinue or not repeat any unfair trade practice or the restrictive trade practice
Issue corrective advertisement for any earlier misrepresentation

If one is not satisfied with the verdict from the District Consumer Court, you can appeal in the
State Consumer Disputes Redressal Commission within a period of 30 days.
If a verdict has been given against the company, it can appeal only after depositing 50% of
the compensation to be paid to you or Rs.25000/ -, whichever is lesser.
There are important differences regarding the (legal) position of consumer organizations in
relation to different authorities. The rights and possibilities which consumer organizations
have at their disposal may vary significantly from country to country, but also within the
national context. Consumer organizations may be explicitly designated and granted the
status of an “interested party” in the procedures initiated by a certain authority, e.g. a
“consumer protection” authority. They may be entitled to request certain measures to be
taken, to receive responses to complaints they filed with the authority within a certain time
period and they may even have the right to challenge decisions taken by the authority before
courts. This special status may be granted in relation to a consumer authority, but not in
relation to a competition authority for example. Consumer organizations can use such a
“qualified” position to put more pressure on public authorities and to render the enforcement
system more efficient.
If a consumer is not satisfied by the decision of the District Forum, he/she can challenge the
same before the State Commission and against the order of the State Commission, a
consumer can come to the National Commission. To provide speedy and simple redressal to
consumer disputes, a quasi-judicial machinery is sought to be set up at the District, State
and Central levels. These quasi-judicial bodies will observe the principles of natural justice
and have been empowered to give reliefs of a specific nature and to award, wherever
appropriate, compensation to consumers. Penalties for non-compliance of the orders given
by the quasi-judicial bodies have also been provided

Framework

Uploaded by

Copyright:

Available Formats

Framework

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Framework

Uploaded by

Copyright:

Available Formats

Consumer protection laws are a form of government regulation, which aims to protect the

Three-tier Grievance redressal machinery and forums-

Auto Companies (TATA, Maruti, Honda, Hyundai, etc.)

Consumer Courts In India-

National Consumer Disputes Redressal Commission-

State Consumer Disputes Redressal Commission-

District Consumer Disputes Redressal Forum-

Issue corrective advertisement for any earlier misrepresentation

You might also like