CHAPTER: V

LEGAL PROVISIONS FOR

CONSUMER PROTECTION
 CHAPTER: V

LEGAL PROVISIONS FOR CONSUMER PROTECTION

INTRODUCTION :

In India, there are plethora of legislative enactments for protection

of rights and interests of the consumers. The various Central Acts which
are in force, do echo the spirit of 'Consumerism' in some way or other.
The Central Government has passed many laws from time to time to
ensure better protection for the consumers. Some of these legal statutes
do not mention the concept of 'consumer interest' specifically, but
practically they do have provisions to defend the cause of consumers in
some manner. In this CHAPTER, it is intended to make a brief
discussion on these legislative enactments, enacted to protect and secure
the interests of the consumers in the country.

5.1. ECHO OF CONSUMERISM IN INDIAN LEGISLATIONS:

The various Legislations, which echo the spirit of consumerism

are summarised in the following few pages:

(i) THE INDIAN PENAL CODE, 1860 :

The Indian Penal Code, 1860 is the oldest penal law of the country,
which contains the substantive law of crime. This Code has made some
provisions which are worth noting in connection with consumer
protection and satisfication . It provides for penalities for offences - (i)
relating to weights and measures (ii) affecting the public health, (iii)
concerning counter feiting the property mark, etc.

Sections 264 to 267 under Chapter XIII of the Code are related to
the offences and punishments of various crimes connected with weights
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and measures. These Sections (Ss. 264 to 267) are related with the
offences and punishments of fradulent use of false instrument for
weighing , fradulent use of false weight or measures, any one in
possession of false weight or measures and making or selling false
weight and measures respectively. However all the offences as
mentioned under Chapter XIII of the Code, are based on 'mens-rea'1,
that is the knowledge regarding the false weight or measures or their
fradulent use is necessary to attract the provisions provided under
Sections 264 to 267 of the Code.

Similarly, Sections 272 and 273 deal with the offences relating to
adulteration of food and drink. In both of these Sections the presence of
'mens-rea' is essential and the nature of the food or drink should be
noxious or unfit for human consumption.

Sections 274 to 276 of the Code contain provisions for punishment

of offences like adulteration of drugs, sale of adulterated drugs and sale
of any drug or preparation as a different one. Provisions have been
made vide Sections 277 and 278 of the Code for punishment of offences
connected with public health and safety. Again Section 486 of the Code
is related to the offences of counterfeiting the property mark. Thus,
Section 486 punishes those who sell or have been in possession for sold
goods, marked with a counterfeit property mark.

(ii) THE INDIAN CONTRACT ACT, 1872:

"The Indian Contract Act, 1872 enacted in 1872 was an endeavour

of humanity in the larger sense to see that a man fulfils what he promises
1. 'Mens-rea' - It is one o f the principles o f English Criminal Law and based on a
maxim- 'actus non facit reum, nisi mens sit rea', i.e., the act
itself does not constitute guilt unless done with a guilty
intention.
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to his fellow beings"2

The law relating to contracts in the country is provided in the Indian

Contract Act, 1872. This Act is related with that branch of law which
detennines the circumstances where promises made by the parties to a
contract shall be legally binding on them. The Act also provides the
remedies that are available in a court of law against a person who fails
to perform his contract and prescribes conditions under which the
remedies are available.

Under the Indian Contract Act, 1872, no person is allowed to enter

into an agreement enforceable as contract by either means of co-ercion,
undue-influence, fraud or mis-representation. Vide Section 17, the Act
defines the concept of 'fraud' which includes suggestion as to a fact
which is not true, the active concealment of a fact, a promise made
without any intention of performing it, any other act fitted to deceive
and any declared act of fradulence. Section 19 of the Act, provides that,
when the necessary consent to an agreement is caused by coercion, fraud
or mis-representation, the agreement is voidable at the option of the
party whose consent was so obtained.

(iii) THE SALE OF GOODS ACT, 1930 :

The Sale of Goods Act of 1930 is another important legislative

enactment in the country containing the spirit of consumerism.

Originally, the law relating to sale of goods was contained in

Chapter VII of the Indian Contract Act, 1872. But it was repealed and

2. NAYAK, R.K. : Consumer Protection Law in India : An Eco-Legai Treaties on

Consumer Justice, Bombay, N.M. Tripathi Pvt. Ltd., (1991)
P-21
 146

re-enacted by the Indian Sale of Goods Act, 1930. Tire Act provides
certain safeguards to the consumers. The Act defines the contract of
sale and prescribes 'conditions'3 and 'warranties'4 in the contract of sale.

Likewise, the Act provides for transfer of property between seller

and buyer, the duties of sellers and buyers etc. It also includes the
provisions for the rights of unpaid seller against the goods and suits for
the breach of the contract.

Where a buyer is injured by a product transferred to him under a

contract of sale, subject to certain exceptions, he may rely on implied
conditions and warranties as well as express undertakings of the seller.
The seller will be liable if the goods donot come upto the standard
required by the law even though he has taken all possible care. As
regards product liability, these standards are implied by the Sale of Goods
Act. Sections 14 to 17 of the Act, contain implied conditions and
warranties which are deemed to be imcorporated in every contract of
sale of goods.

(iv) THE AGRICULTURAL PRODUCE

(GRADING AND MARKING) ACT, 1937:

This legislation was enacted in 1937 to provide for the grading

and marking of agricultural and other produce in the country.

Practically, from the act of fixing a grade identification mark, it

may become possible for the consumers to believe that the goods with

3. Condition : Condition is a stipulation essential to the main purpose o f the contract

o f sale [Sec. 12(2) Sale o f Goods Act, 1930]
4. Warranty : Warranty is a stipulation collateral to the main purpose o f the contract
o f sale [Sec. 12(3) Sale o f Goods Act, 1930]
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grading mark are of definite nature or quality, and if the goods are
different from the graded quality then it will be counted as an offence
punishable under the Act.

Under Section 5 B of die Act, the Central Government has been

authorised to prescribe compulsory grade designations in respect of
certain articles if it is of the opinion that it is necessary for the sake of
public interest or for the protection of consumers that any schedule article
or class of articles shall not be sold or distributed except after such
article or class of articles is marked with the grade designation mark.
Section 5A of the Act provides for penality for selling of misgraded
articles.

Vide the newly added Section 5 C of the Act, a recognised consumer

association is also empowerd to make complaint for taking into
cognizance of an offence punishable under the Act.

(v) THE DRUGS AND COSMETICS ACT, 1940:

The Drugs and Cosmetics Act, 1940 provides for regulation of

import, manufacture, sale and standards of drugs and cosmetics, thereby
protecting the interests of the consumers in the area of drug and cosmetic
industries in India. The prime objective of the Act is to ensure that die
drugs and cosmetics are of the required standards of quality, quantity,
and strength and are packed in containers giving all necessary
infonnations about them and their manufacturer.

The Act imposed restrictions on contaminated drugs with foreign

matter which are manufactured and packed under insanitary conditions.
Likewise, the Act specifically prohibits the import, manufacture, or
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sale of adulterated drugs. Chapter II of the Act provides for the
establishment of (i) Durgs Technical Advisory Board, (ii) Central Drugs
Laboratory and (iii) Drugs Consultative Committee. The Advisory Board
and the Consultative Committee are the Statutory Bodies under the Act.

Under Chapter III, the Act empowers the Central Government to

excercise control on import of drugs. The Central Government may even
prohibit the import of certain drugs and cosmetics.

Vide Section 26 of the Act, any person or any recognised Consumer

Association, which has purchased drug or cosmetic is given the right to
send the same for test or analysis to the Government Analyst on payment
of the prescribed fees and also entitled to receive the report of test or
analysis on the quality of drug or cosmetic, signed by the Government
Analyst.

Section 32 of the Act provides procedure of taking cognizance of

offences under Chapter - IV. According to the provision of this Section,
prosecution under Chapter IV of the Act may be instituted by an
inspector, or by the person aggrieved or by a recognised Consumer
Association, whether such person is a member of that association or
not.

"The Drugs and Cosmetics Act, 1940 is a consumer protection

legislation, which is mainly concerned with standard and purity of drugs
manufactured in India and control of the manufacture , sale and
distribution of drugs. The Act was amended in 1986 to promote voluntary
consumer movement and to ensure involvement of recognised consumer
associations in the enforcement of the Act. The powers were confferred
on the recognised Consumer Associations, so that legal action can be
initiated by them on the basis of test reports given by the Government
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Analyst".5

To conclude, the Drags and Cosmetics Act, 1940, aims at ensuring

safety, health and welfare of the consumers.

(vi) THE INDUSTRIES (DEVELOPMENT AND REGULATION)

ACT 1951,

The Industries (Development and Regulation) Act of 1951 is an

another attempt by the Union Government in implementing the objectives
of 'consumerism'. The Act provides for the development and regulations
of certain industries and it specifically deals with the Central
Government's power to control the price, supply, distribution etc. of
certain articles. Vide Section 18G of the Act, the Central Government
is empowered to regulate or prohibit any class of commercial or financial
transaction of article, which is considered to be detrimental to the interest
of the public.

(vii) THE DRUGS AND MAGIC REM EDIES

(OBJECTIONABLE ADVERTISEMENTS) ACT, 1954 :

This legislation has been enacted with a view to control and regulate
the . area of advertisem ents of drugs which otherw ise may be
objectionable.

The Act reflects certain amount of protection in respect of the

interest of consumer. Section 3 of the Act prohibits the advertisement
of certain drags. Similarly, Section 4 prohibiits misleading adverstiement

5. SINGH, DR. G U R B A X : Law o f Consumer Protection, Jaipur, Bharat Law

Publications, (1993) P - 84.
 150

relaing to drugs. Vide Section 5 of the Act, prohibitions have been

imposed on the advertisements relating to magic remedies for treatment
of certain diseases and disorders. Section 7 provides penalities for
contravention of the provisions of the Act.

(viii) THE PREVENTION OF FOOD ADULTERATION ACT, 1954:

The Prevention of Food Adulteration Act, 1954 was enacted to

eradicate the anti-social evil of food adulteration and ensuring purity
in the articles of food.

The adulteration of food stuffs or food grains is one of the most

vulnerable area, where protection of interests of the consumers is
extremely necessary. The, anti - social evil of adulteration is rampant in
the nation’s economy and exists almost everywhere. Practically, the
consumer in die market is unable to know and realise to what extent he
is subjected to the menace of adulteration.

Keeping in view the gravity of anti-social evil of adulteration in

the society and in order to make the machinery, as provided under the
Act, a more effective one to curb the increasing tendencies of
adulteration, the said Act was amended in the year 1964.

To protect the interests of the consumers, several provisions have

been made under the Act. Section 3 of the Act provides for constitution
of a Central Committee for food standards to advise the Central and
State Governments on the matters arising out of the administration of
the Act and to carry out other functions assigned to it under the Act.
Provisions have been also made vide Sections 5 to 7 of the Act for
prohibition on import of certain food articles, law of sea customs and
powers of customs officer, and prohibition on manufacture and sale of
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certain articles of food. Sections 8 to 13 of the Act, incorporate provisions
regarding analysis of food articles. Under the Act, provision has been
made for the forfeiture of property (in respect of the offence committed)
in addition to fine, imprisonment and publication of the name of the
offender against die violation of the Act itself.

Under the Act, 'mens-rea' is not a constituent part of the crime. An

act done contravening the provisions of the Act, no matter how
innocendy it is done, would liable to be visited with the penality provided
thereof.

(ix) THE ESSENTIAL COMMODITIES ACT, 1955:

For the larger interests of die consiuners, the Essential Commodities

Act, 1955 was enacted by the Central Government, which aims to secure
equitable distribution of the essential commodities and their availability
at fair-prices. The provisions have been made in the Act, for the control
of production, supply and distribution of certain commodities in the
trade and commerece. The chief purpose of the Act is to ensure that
essential commodities are made available to our consumers at a
reasonable price. The Act seeks to check the inflationary trends in prices
and ensure equitable distribution of essential commodities amongst the
consumers.

Section 2 (a) of the Act enumerates classes of commodities which

are essential. Section 3 of the Act empowers the Central Government to
regulate or prohibit the production, supply and distribution of any
essential commodity. Section 7 of the Act provides for confiscation of
essential commodity. For contravention of the provisions of the Act,
penality is provided under Section 7. Vide Section 12 (A), the State
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Government has been empowered to constitute as many 'Special Courts'

as it may consider necessary for the purpose of providing speedy trial of
offences under the Act.

The Act has got amended on several occasions. By an amendment

to the Act in 1986, recognised Consumer Associations have been
empowered to make a report in writing of the facts constituting any
offence under the Act.

(x) THE TRADE AND MERCHANDISE MARKS ACT, 1958:

The Trade and Merchandise Marks Act, 1958 is the consolidated

form of both the Trade Marks Act, 1940 and the Indian Merchandise
Marks Act, 1889. The Act provides a comprehensive law in tune with
consumer protection relating to registration and better protection of trade
marks in the country.

The Act provides for the prevention of the fradulent use of trade
marks on merchandise. It contains provisions for rectification and
alteration of trade marks as well as correction of registration and
certification of trade marks. For contravention of the provisions of the
Act, penalities are provided under Sections 78 to 82 and 88 of the Act.

(xi) THE M ONOPOLIES AND RESTRICTIVE TRADE

PRACTICES ACT, 1969:

On the recommendations of the Mahalanobis Committee Report,

1954 and Mr. Justice K.C. Gupta Commission Report, 1965, the
Monopolies and Restrictive Trade Practices Act, 1969 was passed by
 15 3

the Parliament and came into force from 1st of June, 1970. The Act
aims to prevent the concentration of economic power to the common
detriment. It also provides for the control of monopolies in the country.
The monopolistic and restrictive trade practices, which are in fact,
against the interest of the public and opposed to the object and policy of
a 'Welfare-State1, have been prohibited under the Act.

The scheme of the Act provides for a dual machinery for the purpose
of implementing the provisions of the Act. Section 5 of the Act requires
the Central Government to establish the Monopolies and Restrictive
Trade Practices Commission (MRTP Commission) for the purposes of
the Act. Under Section 12 of the Act the MRTP Commission is
empowered to conduct enquiry. Vide Sections 12 A and 12B, the
Commission is empowered to grant temporary injunctions and to award
compensation respectively. Section 12 B of the Act empowers the
Commission to punish for contempt. Under Section 66, the Commission
has been authorised to make regulations. The Central Government is
empowered to appoint inspectors under Section 44 of the Act for making
investigation of the matters related with monopolistic and restrictive
trade practices. Section 67 empowers the Central Government to make
rules to carry purposes of die Act.
r

Chapter VIII of the Act, contains nine Sections relating to oftences

and penalities for not complying with the different provisions of the
Act.

Practically, The MRTP Act 1969, is a very important legal weapon

in the hands of the consumers for protection of their rights and interests.
Under Sections 10(a)(i), 36B(a), 27(l)(ii), 27A(l)(ii), any Consumer or
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recognised Consumer Association can make a complaint to the MRTP

Commission for instituting an enquiry regarding monopolistic and
restrictive trade practices in the Country,

(xii) THE HIRE PURCHASE ACT, 1972 :

The Hire Purchase Act, 1972, is another legislative enactment that

aims to secure the interest of the consumer. Under the Act, the hirer
(i.e., a consumer) has a right to obtain from tune to tune, the current
state of his account in relation to the agreement. Section 6 of the Act
implies that every hire-purchase agreement does contain certain
conditions and warranties in favour of the hirer. Sections 8, 9 and 10 of
Hie Act also provide for certain indefeasiable rights of the hirer. Section
8 deals with passing of the property. Section 17 ensures the rights of
hirer in case of seizure of hire-purchased goods by the owner. Section
20 of the act puts a restriction on owner's right to recover possession of
goods otherwise than by proceeding through court of law after a specified
proportion of hire purchase price has been paid or tendered.

From these provisions under the Act, it is obvious that this Act has
extended a special protection to a hirer or a consumer.

(xiii) THE CODE OF CRIMINAL PROCEDURE, 1973

(CRPC, 1973):

The criminal law of the country is also aims to provide some

protections to the consumers. Section 153 of CRPC 1973, empowers
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any officer-in-charge of a police station to enter, without warrant, any

place within the limits of such station for the purpose of inspecting or
searching for any weights or measures or instruments for weighing,
used or kept therein. Further, whenever there is a reason to believe that
in such place weights, measures or instruments for weighing are false,
he may seize the same and send information of such seizure to a
magistrate having jurisdiction.

(xiv) THE WATER PREVENTION AND CONTROL OF

POLLUTION ) ACT, 1974 :

The Act aims to ( i) provide for the prevention and control of water
pollution ( ii) maintain wholesomeness of water ( iii) establish' Boards'
with a view to prevent and control water pollution and (iv) confer on
and assign to such 'Boards' powers and functions relating thereto.

Section 2 A of the Act defines the terms used in the Act. Here
Central Board means Central Pollution Control Board and State Board
means a State Pollution Control Board constituted under the Act. Sectoins
16 and 17 enumerates the functions of Central Board and State Boards
respectively. Powers of the State Board are given under Section 20.
Section 24 of the Act makes prohibition on use of stream or well for
disposal of polluted water. Section 25 imposed restrictions on new outlets
and new discharges. Section 33 empowers the Pollution Board to make
application to court for restraining apprenended pollution of water in
streams or wells. Likewise Sections 41 and 42 of the Act provide penalty
for failure to comply with the directions or orders issued under the Act.
Section 47 provides for penalty where an offence has been committed
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under die Act by a company. Where the offence under the Act has been
committed by any Government Department, penalty is provided under
Section 48 of the Act.

All these provisions under the Act, aim to secure the interest of the
public at large, in the area of health and sanitation.

(xv) THE STANDARDS OF WEIGHTS AND MEASURES

ACT, 1976 :

The act aims at introducing standards in relation to weights and

measures used in trade and commerce. The ultimate objective of die
Act is to subserve the interests of the consumers.

The Act provides for the establishment of standards of weights

and measures on 'metric-system'. Section 21 of the Act prohibits the
use of non-standard weight or measure or numeral. Section 22 provides
that no weight or measure shall be made or manufactured unless it
conforms to the standards of weights or measures established by or under
the Act. Section 23 prohibits inscription of weight, measure or number
that is not in accordance with the standard imit of such weight, measure
or numeration provided under die Act. Sections 50 to 53 of die Act
provide penalties for contravention of these provisions.

Part IV of the Act deals with the regulation of inter state trade and
commerce in weights, measures, and other goods. Section 39 makes
special provisions as regards packaged commodities.

Moreover to diese, the Act also provides for establishment of an

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Indian Institute of Legal Metrology for training of inspectors and other

persons in the field of enforcement of standard weights and measures in
the country. The Act has empowered the voluntary organisations
(whether or not the consumer is a member of the organisation) to make
a complaint under the Act.

(xvi) THE PREVENTION OF BLACKMARKETING AND

M AINTENANCE OF SUPPLIES OF ESSENTIAL
COMMODITIES ACT, 1980 :

With an objective to deal effectively with various malpractices,

such as blackmarketing, hoarding, profiteering and unjustified rise in
prices of essential commodities and for maintenance of their regular
supply, the Prevention of Blackmarketing and Maintenance of Supplies
of Essential Commodities Act, 1980 has been enacted in the country.

Section 3 of the Act provides for ordering a person to be detained

with the object of preventing him from acting in a manner which might
be prejudicial to maintenance of regular supplies of commodities
essential to the public. Section 5 empowers the appropriate Government
to regulate the place and conditions of detention.

Tills Act, in fact, facilitates .'Consumerism' in the country.

(xvii) THE ENVIRONMENT PROTECTION ATC, 1986 :

The prime objective of the Act is to provide for the protection and
improvement of environment and for the matters connected therewith.
The genesis of the Act is in Article 48 A and Article 51 A of the
Constitution of India. Vide Section 3 of the Act, the Central Government
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has been empowered to take all such measures necessary for protection
and improvement of the quality of the environment and prevention and
control of environmental pollution. Under Section 12, the Central
Government is authorised to establish one or more 'Environmental
Laboratories' and appoint Government Analysts under the Act. Sections
15 to 17 provide penalties for contravention of the provisions of the
Act. The Act aims to facilitate consumer welfare by securing a healthy
environment.

(xviii) THE BUREAU OF STANDARDS ACT, 1986 :

This Act has been enacted for harmonious development of the

various activities relating to standardisation, marking and quality
certification of products in the country. The Bureau of Indian Standards
has been constituted under the Act and Section 10 lays down its
functions. In case of any complaint about the quality of goods carrying
the 1SI mark, the consumer is entitled to approach the nearest Branch
Office of the Bureau. It is expected that the Bureau will attend to the
complaint to the satisfaction of the consumer.

Section 11 of the Act, prohibits improper use of the 'Standard

Mark'. Section 33 provides for penalty for improper use of ISI Mark.
The recognised Consumer Associations have been given "Locus- Standi'
to make a complaint for the congnizanee of offence under the Act.

5.2 CONSTITUTIONAL PERSPECTIVE :

The Constitution of India is the "Supreme Law" of the country.

The Preamble to the Constitution envisages not only political but also
socio-economic justice to all the citizens of the country. The 'Directive
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Principles' enshrined under Part - IV of the Constitution, incorporate

several directions dealing with socio-economic justice including the
protection of the consumers also, who are the constituents of the bulk
population of the country.

The Constitution of India, vide Articles 38, 39, 42,43, 46 and 47

under the Directive Principles of the State Policy provides that State
shall strive to secure a social order for the promotion of welfare of the
people; it shall direct its policies in such a way that operation of economic
system does not result in the concentration of wealth and means of
production to the common detriment; it shall make provisions for
securing just and humane conditions of work and for maternity relief; it
should endeavour to build an economic organisation or to make suitable
legislation to secure a decent standard of life to all the workers who
constitute the bulk of consumers; it should promote educational and
economic interests of Schedule Caste, Schedule Tribes and other worker
sections and it shall also raise the level of nutrition and standard of
living and to improve public health. Though these provisions under the
Directive Principles of the Constitution are not justiciable, but they are
the cardinal principles and laudable objectives which are required to be
converted into practicality from the paper work to improve the standard
and quality of life of the workers or consumers.

Article 46 under the Directive Principles of the Constitution

provides that State shall endeavour to protect the economic interest of
the weaker section of its population and also protect them from social
injustice and all forms of exploitaion. Besides other things, it also
includes consumer exploitation which means all kinds of harrasments
and frauds in the market place or business transactions and also less
value of money in terms of quantity and quality which the consumer
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pays for.

Article 47 provides that it is the duty of the State to protect the

health of its people and shall strive to raise their level of nutrition and
standard of living. This Article has been incorporated to ensure that
people shall be entitled to unadulterated supplies of goods and other
consumable articles. This requires an effective check, on the adulterated
stuff which is injurious to public health and safety. This principle is a
distinct reflection of inclusion of the philosophy of the concepts of
'Consumerism1 in the Indian Constitution.

5.3 THE CONSUMER PROTECTION ACT, 1986 and THE

CONSUMER PROTECTION (AMENDMENT) ACT, 1993:

The Consumer Protection Act, 1986, is the first legal instrument

or the legislative enactment in favour of the consumers that enables the
consumers to have institutional arrangement for speedy redressal of their
various grievances. In India, although different legislations have been
enacted against different form of exploitations, but all these are
preventive in nature and not a compensatory one. Therefore, to provide
the facility for redressal of grievances of the consumers through
establishing institutional arrangem ents, the
Government of India, has enacted the 'The Consumer Protection Act,
1986’ (COPRA 1986) in the country. This Act has been specially
designed to protect rights and interests of the consumers. The "COPRA
1986" which has been described as the most innovative law in the country
and claimed to be one of the best in the world, confers several rights on
the consumers and provides for a quick and easy access to justice. This
Act is a compensatory one by its nature and is a direct approach to
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safeguard the various rights and interests of the consumers in the country.

The Consumer Protection Act, 1986 was passed by the Lok-Sabha

on the 9th of December 1986 and the same by the Rajya-Sabha on the
10th of December 1986. It received assent from the President of India
on the 24th of December 1986 and has been published in the Gazette of
India, Ext. Part II, Section 1 on the 26th of December, 1986 at pages 1
to 12. The Act came into force on 15th of April 1987. By July,1987, all
the provisions of the Act came into operation,

The Consumer Protection Act, 1986, contains a total of four

Chapters and thirty one Sections. Besides these, the Rules thereunder
also have been enacted. In order to facilitate more benefits and
protections in favour of the consumers in the country, the Consumer
Protection Act, 1986, has been amended in 1993 vide "The Consumer
n
Protection (Amendment) Act 1993. This Act has received the assent
from the President of India on the 27th of August 1993, and came into
force on the 18th day of June 1993. The said Amendment Act widens
the scope of the original Act.

The 'Preamble' to the Consumer Protection Act, 1986(Act No. 68

of 1986), clearly states that it is an Act to provide for the better protection
t

of the interests of the consumer and for that purpose, to make provisions
for the establishment of Consumer Councils and other authorities for
the settlement of various disputes of the consmners and for matters
connected therewith.

5.4 SALIENT FEATURES OF COPRA, 1986 :

The salient features of the Act can be summed up as imder:

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(a) The Act applies to all goods and services unless specifically
exempted by the Central Government.

(b) It covers all the sectors whether - private, public or co-operative.

(c) The provisions of the Act are compensatory in nature.

(d) It enshrines the following rights of the consumers-

(i) the right to be protected against the marketing of goods which

are hazardous to life and property;

(ii) the right to be informed about the quality, quantity, potency

purity, standard and price of goods so as to protect the consumers against
unfair trade practices;

(iii) the right to be assured whenever possible, access to a variety

of goods at competitive prices;

(iv) the right to be heard and to be assured that conusmers interest

will receive due consideration at appropriate forums;

(v) the right to seek redressal against unfair trade practices or

unscrupulous exploitations of consumers; and

(vi) the right to consumer education.

(e) The Act envisages establishment of Consumer Protection

Councils both at the Central and State levels, whose prime objective
will be to promote and protect the rights of consumers.

(f) To provide simple, speedy and inexpensive redressal of consumer

grievances, the Act envisages a three-tier quasi-judicial machinery at
the National, State and District levels.
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(g) The provisions of this Act are in addition to and not in derogation
of the provisions of any other law for the time being in force.

5.5 CONSUMER PROTECTION COUNCILS :

One of the salient features of the Consumer Protection Act, 1986

is the provision for establishment of Consumer Protection Councils both
at the Central and State levels under Sections 4 to 8 of the Act, in order
to promote and protect the interests of the consumers. Under Section
4(1) of the Act, the Central Government may, by notification, establish
a Council to be known as the 'Central Consumer Protection Council'.
The Act also specifies who will be the members of the Central Council
under Section 4(2). Section 6 of the Act states the objectives of the
Central Council.

Under Section 7 of COPRA, 1986, the provision has been made

for the establishment of Consumer Protection Councils in the States.
According to Section 7(1), the State Government may by notification,
establish a Council to be known as the 'State Consumer Protection
Council'. Section 7(2) specifies the members of the State Council.
Likewise, Section 8 of the Act enumerates the objectives of the State
r
Councils.

5.6 CONSUMER DISPUTES REDRESSAL AGENCIES :

Consumer Disputes Redressal Agencies as provided by the

COPRA, 1986, are in fact, the institutional arrangements to redress the
grievances of consumers. The Act provides for the establishment of
three- tire quasi-judicial institutions for the settlement of consumer
 164
disputes in the country. Under section 9 (a) of the Act, Consumer
Disputes Redressal Forum, known as District Forum is to be established
by the State Government in each district of the State by notification.
Similarly, under Section 9(b), the Consumer Disputes Redressal
Commission at the State level is to be established and known as 'State
Commission'. The National Consumer Disputes Redressal Commission,
known as 'National Commission' is to be established by the Central
Goverment under section 9 ( c) of COPRA, 1986.

The provisions relating to the composition and Jurisdiction of

District Forums have been made imder Sections 10 and 11 respectively.
Sections 16 and 17 of the Act, provide for composition and Jurisdiction
of the State Commission. Likewise, Sections 20 and 21 of the COPRA,
1986, state the provisions for compossion and Jurisdiction of the National
Commission.

Manner in which complaint shall be made before the District Forum

has been provided under Section 12 of the Act. Section 13 provides the
procedure to be adopted by the District Forum on receipt of complaint
from the consumer. Vide Section 15 of the Act, any person aggrieved
by an order of District Forum may prefer an appeal against such order
before the State, Commission within the specified period. Any person
aggrieved by an order made by the State Commission may prefer an
appeal against such order before the Nationl Commission within the
specified time under Section 19 of the Act. Likewise, under Section 23
provision has been made for appeal before the Supreme Court, against
the order of National Commission by the aggrieved party. Practically
the Act has set up a hierarchy of bodies under it, with the power to hear
appeals at every stage. The intention of legislature appears to be that the
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District Forum or the State Commission as well as the National

Commission should be allowed to perform their duties speedily and
without any interruption.

Section 24 of the Act is related with the finality of orders made by

the Redressal Agencies. The newly added Section 24A [as inserted by
the Consumer Protection (Amendment) Act, 1993] states the limitation
period for filing complaint before the Redressal Agencies and also has
made provision for condonation of delay, if any, in filing the complaint.
Section 25 deals with the enforcement of orders by the District Forum,
State Commission or the National Commission.

Under Section 26, provision has been made for dismissal of

frivolous or vaxatious complaints. The provision for penalties for non-
compliance of the orders made by the Redressal Agencies, has been
given under Section 27 of COPRA, 1986.

The Consumer Protection (Amendment) Act, 1993, has enhanced

the pecuniary jurisdiction of the Redressal Agencies. As provided by
this Amendment Act, the District Forum now have the jurisdiction to
entertain complaints where the value of the goods or services and the
compensation, if any, claimed does not exceed rupees five lakhs.
Similarly, the State Commission shall have jurisdiction to entertain
complaints where the value of the goods or services and compensation,
if any, claimed exceeds rupees five lakhs but does not exceed rupees
twenty lakhs. The National Commission, after the said Amendment Act,
now have the pecuniary jurisdiction to entertain complaints where the
value of the goods or services and compensation, if any, claimed exceeds
rupees twenty lakhs. The National Commission started to function from
December 27, in the year 1988, with Honourable Justice V.R. Eradi as
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the first Chairman of the Commission. An elaborate discussion on the

functioning of Assam State Commission and the District Forums of the
State is incorporated in the following CHAPTER (CHAPTER-VI).

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