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which is required to be maintained by or under any law for the time being in force under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods.CASE : Mr. X purchases a mixer grinder from M/s Y & Co. operating in the same town, in December 1998. Even within the warranty period of 1 year the grinder fails. M/s Y & Co. fails to rectify the defect. The manufacturer M/s Z Ltd., was also unable to rectify the mixer grinder. Frustrated, Mr. X finally approaches the District Forum.
which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.The Consumer Protection Act: Negligence of Airways causing DisabilityThe following is an interesting case that came under the purview of the Consumer Protection Act. In Sunil Kumar Nair v The General Manager, International Airport Authority of India and Another (1996) I CPR 361 (Tamil Nadu CDRC), the complainant stated he was at the Madras International Airport to board a flight to the US. Suddenly, the victim got hit by a heavy iron rod on his foot. The iron rod fell from the scanning machine. He alleged negligence on the part of the Airways.The Tamil Nadu State Commission held the airways liable for failure to maintain the machine properly and awarded the victim a compensation of Rs.30000. Delay in flight due to negligence of the company. Delay in refunding the money of unutilized tickets. Delay in delivery of baggage.
The computer Kits which are assembled or a person who buys the goods and sells it as their own, like the Hindustan Lever who bought cotton seeds and sold under their name. However, a branch office where parts are sent to be assembled will not be a manufacturer.
However the law excludes some services namely.Free services e.g. Government hospitals rendering free services.Services rendered under a contract of personal service, e.g.service of a lecturer.Services of Government Officials.Services rendered under sovereign function. Examples: Hospitals, Banking, Water supply, etc.
Why protect the consumers?Reason for Enacting the Act• Doctrine of Caveat EmptorThis implies that the responsibility of identifying goods and finding defects with them lies with buyer.
Why protect the consumers?Reasons for Enacting the Act• Collective BargainingSellers Lobby; Forming cartels; Artificially keeping prices high!!!!• Multiple LawsIndia Contract Act; Sale of Goods Act; Essential Commodities Act• Hurdles in the LitigationGoing to regular court; Expensive & Time Consuming• RemedyPunishment in the form of Punitive & Deterrent measure
Hence… There wasAn Act to provide for the better protection of the interests of consumers andfor that purpose to make provisions for the establishment of consumercouncils and other authorities for the settlement of consumers disputes andfor matters connected therewith.Short title, extent and application:(1). This Act may be called the Consumer Protection Act, 1986.(2). It extends to the whole of India except the State of Jammu andKashmir.(3). Save as otherwise expressly provided by the Central Government bynotification, this Act shall apply to all goods and services.
CPA Impact „Consumer is the king of the market‟ “Sellers market” is now “Buyers market” &• With industrial development leading to the influx of various goods and services in the market; Consumers have to protected!
The act was passed in:Lok Sabha on 9th December,1986 andRajya Sabha on 10th December, 1986 andAssented by the President of India on 24th December, 1986 and wasPublished in the Gazette of India on 26th December, 1986.This act was enacted in the 37th year of the Republic of India and was amendedfrom time to time in the following years i.e. 1991, 1993 and 2002.
Objectives of CPA, 1986 Education HeardSafety Consumer Rights Redressal Choose Information
DEFINITIONSSection 2 of The Consumer Protection Act, 1986, defines certain wordswhich are used in various sections.Appropriate Laboratory : S. 2(1)(a) : “Appropriate laboratory” means a laboratory or organisation :I. Recognised by the Central GovernmentII. Recognised by a state government, subject to such guidelines as may be prescribed by the Central Government in this behalf; orIII. 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 form any defect.
Complainant S.2(1)(b) :i. A consumer, orii. Any voluntary consumer association registered under the Companies Act, 1956, or under any other law for the time being in force; oriii. The Central Government or any State Government, who or which makes a complaint;iv. One or more consumers, where there are numerous consumers having the same interest,v. In case of death of a consumer, his legal heir or representative who or which make a complaint.
Complaint S.2(1)(c) :i. An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provide;ii. The goods, bought by him, or agreed to be bought by him, suffer one or more defects;iii. The services hired or availed of, agreed to be hired or availed of by him, suffer from deficiency in any respect;iv. A trader has charged for the goods mentioned in the complaint, a price in excess of the price fixed by, or under any law for the time being in force or displayed on the goods or any package containing such goods, with a view to obtaining any relief provided by or under this act;v. Goods which will be hazardous to life and safety when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force requiring traders to display information in regard to the contents, manner and effect of use of such goods;vi. Services which hazardous or likely to be hazardous to life and safety of the public when used; are being offered by the service provider, which such person could have known with due diligence to be injurious to life and safety: with a view to obtaining any relief provided by or under this act.
Consumer S.2(1)(d) :Consumer means any person who;i. Buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment, when such use is made with the approval of such person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose or;
(Hires or avails of) any services for a consideration which has beenpaid or promised or partly paid and partly promised, or under anysystem of deferred payment and includes any beneficiary of suchservices other than the person who (hires or avails of) the services forconsideration paid or promised, or partly paid and partly promised, orunder any system of deferred payment when such services are availedof with the approval of the first mentioned person (but does not includea person who avails of such services for any commercial purpose)Consumer Dispute S.2(1)(c) :“A dispute, where the person, against whom, a compliant has beenmade, denies or disputes the allegations contained in the complaint.”
Defect : S.2(1) (f)FaultImperfectionShortcoming In the Quality Quantity Potency Purity Or Standard
Deficiency: S.2(1) (g)Fault In theImperfection QualityShortcoming Or Standard and Manner ofInadequacy performance
Manufacturer: S.2(1) (j)• “Manufacturer” means a person;i. Makes or manufactures any goods or parts thereof; orii. Does not make or manufacture any goods but assembles parts there from made or manufactured by others and claims the end product to be goods manufactured by himself; oriii. Puts or causes to be put his own marks on any goods made or manufactured by any other manufacturer
Person: S.2 (m)• Includes :i. A firm, registered or not;ii. A Hindu undivided familyiii. A co-operative society;iv. Every other association registered as person under the Societies Registration Act,1860.
Service: S.2(1) (r)“Service” means service of any description, which ismade available to potential users and includes, but notlimited to the provisions of the facilities in connectionwith1) banking 2) financing 3) insurance 4) transport5) processing 6) supply of electrical or other energy7) boarding or lodging or both 8) house construction9) entertainment 10) amusement or11) the purveying or new or other informationBut does not include the rendering of any service free of charge or under a contract of personal service