Cpa Project.docx

A project report on Provision of Appeal from District Forum

Manipal University Jaipur School of Law

Supervised byMS. KANIKA

Submitted byTANAY KHANDELWAL Reg. No. 161401106 B.A.LL.B (Hons.) Section B

ACKNOWLEDGEMENT

I hereby acknowledge the help and support of the teachers, who helped me in compiling this project. I thank the faculty and management of Manipal University Jaipur, School of Law, as the resources that were necessary to complete the project were provided by them. I am highly indebted to my teacher “Ms. Kanika ” for her guidance and constant supervision as well as for providing necessary knowledge regarding the subject at hand and also for her support in completing the project. I would like to express my gratitude towards my parents and friends for their kind cooperation and encouragement which help me in completion of this project.

_______________ TANAY KHANDELWAL

CERTIFICATE

This is to certify that Mr. Tanay khandelwal, student of B.A. LL.B. (hons.) semester II, School of Law Manipal University Jaipur has completed the project work entitled “PROVISON OF APPEAL FROM DISTRICT FORUM - A STUDY” under my supervision and guidance. It is further certified that the candidate has made sincere efforts for the completion of this project.

_______________ Ms. Kanika

Contents INTRODUCTION TO THE CONSUMER PROTECTION ACT, 1986 ............................................... 5 CONSUMER PROTECTION REDRESSAL AGENCIES .................................................................... 5 DISTRICT FORUM ............................................................................................................................... 6 BIBLIOGRAPHY ................................................................................................................................. 14 WEBLIOGRAPHY............................................................................................................................... 14

INTRODUCTION TO THE CONSUMER PROTECTION ACT, 1986

The Consumer Protection Act, 1986 was enacted to provide a simpler and quicker access to redress of consumer grievances. The Act seeks to promote and protects the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair trade practices, which may be practiced by manufacturers and traders. The set-up of consumer Forum is geared to provide relief to both parties, and discourage long litigation. In a process called 'informal adjudication', Forum officials mediate between the two parties and urge compromise. The Act applies to all goods and services unless specifically exempted by the Central Government. It covers all the sectors whether private, public or cooperative. This Act has provided machinery whereby consumers can file their complaints which will be heard by the consumer Forums with special powers so that action can be taken against erring suppliers and the possible compensation may be awarded to consumer for the hardships he has undergone. The consumer under this law is not required to deposit huge court fees, which earlier used to deter consumers from approaching the courts. The rigours of court procedures have been replaced with simple procedures as compared to the normal courts, which helps in quicker redressal of grievances. The provisions of the Act are compensatory in nature.

CONSUMER PROTECTION REDRESSAL AGENCIES The Consumer Protection Act envisages the establishing of the following redressal agencies: (a) A Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government in each District of the State by notification: Provided that the State Government may, if it deems fit, establish more than one District Forum in a District. (b) A Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government in the State by notification; and

(c) A National Consumer Disputes Redressal Commission established by the Central Government by notification.

DISTRICT FORUM 

COMPOSITION OF DISTRICT FORUM (SECTION-10)

Every District Forum shall consist of the following: 1. President- a person who is, or has been, or is qualified to be a District Judge, who shall be its President; 2. Two other members- one of the two members shall be a woman. The two members shall have the following qualifications:i.

Be not less than 35 years of age

ii.

Possesses a bachelor’s degree from recognised university

iii.

Be persons of ability, integrity and standing, and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics,

law,

commerce,

accountancy,

industry,

public

affairs

or

administration. The members can be disqualified on the following grounds: (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the State Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e) has, in the opinion of the state Government, such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or (f) has such other disqualifications as may be prescribed by the State Government;)

Appointment of Members of District Forum: (IA) Every appointment under sub-section (I) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely:(i) the President of the State Commission - Chairman. (ii) Secretary, Law Department of the State - Member. (iii) Secretary, incharge of the Department dealing with consumer affairs in the StateMember. Case Law: P.M. Sunny v. State of Kerala1 In this case it was held regarding the appointment of the post of President of District Forums that only selection committee constituted as provided in Section 10(1-A) can finalise and forward the panel of candidates. Power conferred on selection committee can’t be delegated. Term of Office: A member of the District Forum shall hold office for a term of 5 years or upto the age of 60 years, whichever is earlier. Salary and Allowances: The salary or honorarium and other allowances payable to and the other terms and conditions of service of members of the District Forum shall be such as may be prescribed by the State Government. 

JURISDICTION OF DISTRICT FORUM (SECTION - 11)

District Forum shall have jurisdiction to entertain the complaints where the value of the goods and services and the compensation if claimed doesn’t exceed Rs. 20,00,000. A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or] personally works for gain, or

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AIR 2010 Kerala 64

(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or (c) the cause of action, wholly or in part, arises. 

MANNER OF MAKING COMPLAINT (SECTION-12)

A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided; (b) any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not; (c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or (d) the Central or the State Government, as the case may be, either in its individual capacity or as a representative of interests of the consumers in general. Every complaint filed shall be accompanied with such amount of fee and payable in such manner as may be prescribed. On receipt of a complaint made under sub-section , the District Forum may, by order, allow the complaint to be proceeded with or rejected: A complaint shall not be rejected unless an opportunity of hearing has been given to the complainant.

The admissibility of the complaint shall be ordinarily decided within 21 days from the date of receipt of the complaint. If the complaint is allowed the District Forum will proceed to hear it in the manner provided in the act. 

PROCEDURE ON APPLICATION OF COMPLAINT(SECTION-13):

The District Forum shall on admission of complaint if it relates to any goods(a) refer a copy of the complaint to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute in the manner specified in clauses (c) to (g); (c) where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, the District Forum shall obtain a sample of the goods from the complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test, whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the District Forum within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by the District Forum; (d) 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 of the Forum such fees as may be specified, for payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question; (e) the District Forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks as the District Forum may feel appropriate to the opposite party;

(f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, the District Forum shall require the opposite party or the complainant to submit in writing his objections in regard to the report made by the appropriate laboratory; (g) 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 or otherwise of the report made by the appropriate laboratory and also as to the objection made in relation thereto under clause (f) and issue an appropriate order under section 14.

 FINDINGS OF THE DISTRICT FORUM(SECTION-14): If, after the proceeding conducted under section 13, the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things, namely:(a) to remove the defect pointed but by the appropriate laboratory from the goods in question; (b) to replace the goods with new goods of similar description which shall be free from any defect; (c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant; (d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party; (e) to remove the defects in goods or deficiencies in the services in question (f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them; (g) not to offer the hazardous goods for sale; (h) to withdraw the hazardous goods from being offered for sale;



APPEAL (SECTION-15):

Section 15 of The Consumer Protection Act, 1986 states thatAny person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed. Provided that the State commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. In case a complaint is dismissed for default, the District/State Forum is not empowered to restore the complaint. The remedy of the petitioner is to file the appeal under section 15. 

Deposit of certain amount as a pre-condition for appeal- The C.P. (Amendment) Act, 2002 requires that no appeal by a person, who is required to pay any amount in terms of an order of the District Forum, shall be entertained by the State Commission unless the appellant has deposited in the prescribed manner 50% of that amount or Rs. 25000- whichever is less.



Limitation period runs from the date of Communication of the order- It may be noted that the period of limitation of 30 days begins from the date, the order of the District Forum is communicated.



Condonation of delay- The delay in filing appeal may be condoned if the appellant is able to show that there was sufficient cause for such delay.

In Vice Chairman, D.D.A. v. O.P. Gauba,2 there was a delay of 38 days by the Delhi Development Authority in making the appeal. The grounds for delay were the examining of the case from all its aspects at different levels. It was held that delay caused by inter office consultations is not sufficient cause and hence the delay was not condoned. In Delhi Development Authority v. I.S. Narula,3 certified copy of the order of the District Forum was received by the appellant on 13-7-94. The appeal was filed on 27-994. The alleged reason for the delay was public procedural delay on 14th and 15th August, 1994, strike in Tis Hazari Court, and procedural delay in obtaining saction of D.D.A. by

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III (1995) C.P.J. 18 (N.C.) III (1995) C.P.J. 333/

the counsel for filing the appeal. The Supreme Court observed that the power of condonation should be exercised liberally. There was held to be sufficient cause, and hence, the delay was condoned. 

Ex parte order- if the opposite party fails to appear and contest, the District Forum may proceed and pass an ex parte Order. If sufficient cause is shown for not appearing in the case, an ex parte order may be set aside. The District Forum, which has the right to pass an ex parte order has also the power to set aside the same

In Janak Mehta v.Allahabad Bank4, the question before the J. & K. State Commission was whether a District Forum can set aside an ex parte Order passed by it. It was held that one of the methods adopted to prolong the proceedings is first to allow the case to proceed ex parte, and then waste further time in getting the ex parte order set aside, in enquiries and in recording evidence. The Civil Procedure Code is applicable to the Consumer Protection Act to a limited extent. Therefore, the Forum has no power to set aside an ex parte order. The above decision needs reconsideration. The correct position is that an ex parte order may be set aside if the OP is not trying to unnecessarily waste time of the Forum, but has genuine reasons for not appearing in the case. 

Dismissal of complaint in default- If the complainant fails to appear on the date of hearing, the District Forum may dismiss the complaint in default. Such a dismissal of the complaint may be set aside and the complaint may be restored.

In Kamlesh Bansal v. Balaji Land Traders5, the complainant filed a complaint and he failed to appear on the date fixed by District Forum for ex parte evidence . Within 23 days of dismissal of complaint the complainant applied for restoration of complaint. The said application was rejected on the ground that the District Forum could not restore the complaint it has been held by the Delhi State Commission that the commission, while exercising appellate jurisdiction, can set aside the order of the District Forum dismissing the said application for restoring the complaint.

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I (1996) C.P.J. 149 (J. & K. S.C.D.R.C.) III (1995) C.P.J. 510 Delhi S.C.D.R.C.



Writ Petition against District Forum’s order- There is no reason to say that a writ petition under Article 226 of The Constitution of India is not at all maintainable against an order of Consumer Dispute Redressal Forum established under Section 9 of the Consumer Protection Act, 1986. The Clacutta High Court in Garh-Moyna Sambay Krishi Unnayan Samiti ltd v. State of West Bengal,6 explained:

The Forum established under Section 9 of the Consumer Protection Act, 1986 is the lowest agency or body in the hierarchical quasi-judicial machinery set up by the act for speedy and simple redressal of consumer dispute; it is a quasi-judicial body. Therefore, against an order of District petition under Article 226 of The Constitution of India can be filed before the High Court. But that is only in a very exceptional case…it should be entertained only when the person approaching the writ Court, for no fault of his own, is deprived of the remedies of appeal and revision provided by the provisions of Section 15 and 17 of the Consumer Protection Act, 1986.

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A.I.R. 2008 Cal. 275

BIBLIOGRAPHY 1. Dr. R.K. Bangia; Law of Torts; Allahabad Law Agency Law Publishers; 23rd Edition 2013. 2. Dr. J.N. Pandey; Law of Torts with Consumer Protection Act and Motor Vehicles Act; Central Law Publications; 9th Edition 2014.

WEBLIOGRAPHY 1. http://www.indiainfoline.com/article/research-articles/know-the-basics-of-consumerprotection-act-45308802_1.html ON 15/02/2016 @ 9:05 P.M.