Blog Article

The modern consumers play a vital role in the economic development of any country. A consumer is considered as the king and businesses are expected to provide maximum satisfaction to them. The industrial revolution and development in international trade and commerce has led to vast expansion of business and trade.

As a result, services have been made available to consumers like insurance, electricity, transport, finance, etc. making the modern consumer knowledgeable, sensitive and questionable about the various problems the product has to offer.

If a consumer is dissatisfied about a product or service, he/she may go up to an extent of filing a consumer complaint legally. In such a dissatisfied scenario, the Consumer Redressal Dispute Agency play a critical aspect in granting justice to the victimized consumer and safeguarding their rights.

Dispute Redressal Agencies have been established under the Consumer Protection Act 1986 and their powers, composition, jurisdiction, orders including penalties have been discussed under the Act. Consumer Forums have been established across the country in view with speedy, cost efficient hassle-free and simple dispute solving measures to consumers.

Role Of Consumer Courts In India

Chapter 3; Section 20 of the Consumer Protection Act, 1986 provides three types of dispute redressal agencies namely:

• National Consumer Dispute Redressal Commission (National Commission).
• State Consumer Dispute Redressal Commission (State Commission); and
• District Consumer Dispute Redressal Commission (District Forum).
  

  1) National Commission

The National Commission is considered as the apex redressal among the other Forums of the government. This is because it oversees the functioning of the state Commissions and District Forums.

Composition of National Commission

A National Commission comprises of:

1. A person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President:

• Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India.
• Four other members shall be appointed on the basis of ability, integrity and possess adequate knowledge or experience of problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman. Appointment under this clause shall be made by the Central Government on the recommendation of a selection committee consisting of the following, namely:
• A person who is a Judge of the Supreme Court, who has been nominated by the Chief Justice of India-Chairman,
• The Secretary in the Department of Legal Affairs in the Government of India-Member.

Complaints Dealt By National Commission

On receiving complaints relating to goods and services, the State Commission shall:

1. Entertain complaints where the value goods/services including compensation, if any exceeds ₹ 20 Lakhs.
2. Appeals against the orders of any State Commission; and
3. To pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission, where it appears to the National Commission.

Appeals Under National Commission

In case any person is unhappy with the order made by the National Commission, he/she may prefer for an appeal against such an order to the Supreme Court, within a period of 30 days from the date of the order, provided the Supreme Court entertains the appeal after 30 days and on a reasonable cause for not filing it within the period.

    2)  State Commission

The State Commission Consumer Forum functions like a High Court that has been established over District Forums in India under the Consumer Protection Act, 1987. Any order passed by the State Commission are treated as final orders given by the Civil Court only in case of no appeal made against the order. Every order made by the Commission will be signed by the president and another member who concludes the case. In terms of powers and penalties of the State Commissions, it is similar to that of the National Commission.

Composition of State Commission

State Commission comprises of:

2. A person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President.

• Provided no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court.2. Two other members, shall be appointed on basis of ability, integrity and possess adequate knowledge or experience of problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman. An appointment under this clause shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely:

• President of the State Commission-Chairman,
• Secretary of the Law Department of the State-Member
• Secretary in-charge of the department dealing with consumer affairs in the State-Member.

Complaints Dealt By State Commission

On receiving complaints relating to  goods and services, the State Commission shall:

1. Entertain complaints where the value of the goods/services including compensation, if any claimed, exceeds rupees 5 lakhs but does not exceed rupees 20 lakhs.
2. Appeals against the orders of any District Forum within the State; and
3. To call for previous records and pass appropriate orders in any consumer dispute which is pending before any District Forum within the State.

Appeals Under State Commission

I any person is aggrieved by an order by the State Commission that is conferred by sub-clause (i) (a) of section 17, may prefer an appeal against such order, if the cause is genuine for not filing it within the given period, provided the State Commission entertains an appeal after its expiry.

     3) District Forum

A District Forum is located in a district where a person can lodge a complaint if he/she has been cheated, misguided or deceived by any service providers or trader. It is considered to be the lowest Consumer Court in the hierarchy of its 2 other predecessors; State Commission & National Commission.

Composition Of District Forum

A District Forum comprises of:

1. A person who is, or has been qualified to be a District Judge, shall be its president.
2. Two other persons shall be appointed based on ability, integrity and possess adequate knowledge and experience in dealing with problems relating to economics, law commerce,  industry, public affairs or administration, one of whom shall be a woman.
3. All appointments under section(a) shall be made by the State Government on recommendation of the selection committee, basically comprising of the following:

• The president of the State Commission-Chairman
• Secretary, Law Department of the State-Member,
• Secretary in-charge of the Department dealing with consumer affairs in the State-Member.

Complaints Dealt By District Forum

On receiving a complaint relating to goods, the District Forum shall:

1. Refer a specific copy of the opposite party mentioned in the complaint, directing him to give his version of the case within a period of 30 days and if the forum extends the case, it must not exceed fifteen days in providing his explanation of the case.
2. If the opposite party denies the allegations contained in the complaint, omits or fails to take any action to represent the case within the time prescribed, the Forum shall settle the consumer dispute in the manner specified in clauses (c) to (g).
3. Where the complaint mentions a defect in the goods which cannot be determined without testing or analysing goods, the District Forum shall obtain a sample of the goods from the complainant, seal it, and authenticate it in the manner prescribed and send it to the appropriate laboratory with a view to finding out whether such goods are found to be defective as mentioned in the complaint within a period of 45 days.
4. Before any sample of the goods is referred to any appropriate laboratory under clause (c), the District Forum may require the complainant to deposit to the credit a fee as specified, for payment to the appropriate laboratory for carrying out the necessary analysis or test.
5. The District Forum on receipt of the report from the appropriate laboratory, the Forum shall forward a copy of the report along with results to the opposite party.
6. if any of the parties are not convinced/disputes the correctness of the findings of the appropriate laboratory, or methods of analysis, the Forum shall require the opposite party to submit in writing his objections in regard to the report made by the appropriate laboratory.
7. Thereafter, the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness.

On receiving a complaint relating to services, the District Forum shall:

1. 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 and not precede the extended 15 days.
2. Where the opposite party, on receipt of a copy of the complaint, denies or disputes the allegations mentioned in the complaint, or omits or fails to take any action to represent his case within the time given, the Forum shall proceed to settle the consumer dispute on the following criteria:

• On the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegation contained in the complaint.
• On the basis of evidence brought to its notice by the complainant, where the opposite party fails to take any action to represent his case within the time given by the Forum.3. No proceedings complying with the procedure laid down in sub-sections (1) and (2) will be called in any court on the grounds that natural justice has not been complied with.

Appeals Under District Forums

In case, any person is unhappy with the order made by the District Forum, he/she may opt for an appeal against such an order to the State Commission within a period of 30 days from the date of the order, provided the State Commission entertains the appeal after 30 days and on a reasonable cause for not filing it within the period.