Amendments to Consumer Protection Act-II

Dr Suganti Iyer

In the previous issue of Express Healthcare Management, some of the amendments to Consumer Protection Act were covered. In this issue we cover amendments made from Section 10 to section 25.

The Consumer Protection Act, 1986 was last amended in 1993. Subsequently in view of experience gained in operation of the Act, major changes are now being made to bring into force Consumer Protection (Amendment) Act, 2002. The amendments will be brought onto force by issue of notification in the Official Gazette.

Effect of amendments
The amendments to section 10 provide minimum age of thirty-five years, minimum qualification of graduation and minimum experience of ten years for members of the District Forum. It also provides disqualification for the office of member. A new provisio to sub-section (1A) is inserted to provide that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the High Court who shall nominate a sitting Judge of that High Court to act as a Chairman to avoid delay in selection. It also amends sub-section (2) to provide for reappointment of Presidents and Members to enable utilisation of their experiences for a longer period. It also provides that persons already holding office of President or Member will continue to hold such office till the completion of their term. It further amends sub-section (3) to provide that the State Government shall appoint a member on whole-time basis on the recommendations of the President of the State Commission taking into consideration the workload and other factors as may be prescribed. Amendment to section 11 enhances the jurisdiction of the District Forum to entertain complaints where the value of the goods or services and the compensation claimed does not exceed rupees twenty lakhs. This will be more convenient for the complainants and also reduce the number of complaints filed with the State Commission and National Commission.

Section 12 is substituted to provide that every complaint filed with the District Forum shall be accompanied with such amount of fee as may be prescribed. It also provides that he admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint is received and that once admitted a complaint shall not be transferred to any other Court or Tribunal.

This will help to quicken disposal of complaints. The amendments to section 13 require the District Forum to refer a copy of the admitted complaint within twenty-one days from the date of its admission to the opposite party to give his version within the prescribed time. It also explicts the provision for ex parte order as well as dismissal of complaint on non-appearance of complainant.

It includes a new sub-section (3A) to provide that complaint shall be heard as expeditiously as possible and endeavour made to decide the complaints within the prescribed period. Adjournments would ordinarily not be granted, and if granted for reasons to be recorded in writing by the forum, an order as to the costs occasioned by the adjournment would also be made by the forum. It is also provided that in the event of a complaint being disposed of after the period so specified, the District Forum shall record in writing, the reasons for the same at the time of disposing of the said complaint.

It further includes a new sub-section (3B) to enable the District Forum to pass interim orders where required. It also includes a new sub-section (7) for the substitution of parties in accordance with the provisions of Order XXII of the First Schedule to the Code of Civil Procedure, 1908 in the event of death of the complainant or opposite party.

These amendments will facilitate quicker disposal of cases, enable complaints to get immediate relief where required, and streamline procedures. The amendments to section 14 empower the District Forum if it is satisfied that the allegations contained in the complaint are proved, also to issue orders directing the opposite party, inter alia, to pay punitive damages, cease manufacture of hazardous goods and desist from offering services which are hazardous in nature, pay such sum not less than five per cent of the value of defective goods sold or services provided where loss or injury has been suffered by a large number of consumer who are not conveniently identifiable, and to issue corrective advertisement to neurtralise the effect of misleading advertisement.

It also amends sub-sectin (2) to do away with the requirement of de novo proceedings if a Member is unable to conduct the proceedings till it is completed and allow the proceeding to continue from the stage it was last heard by the previous Member.
This will avoid delay in disposal of such cases. The amendment to section 15 provides 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 deposits fifty per cent of the amount or twenty-five thousand rupees, whichever is less.

The amendments to section 16 make the same provisions with regard to qualification and disqualification of members, chairmanship of the Selection Committee, re-appointment of Presidents and Members, resignation of members, completion of terms of existing members and appointment of members on whole-time basis in respect of the State Commission, as in the case of the District Forums. It also makes provision to enable appointment of more than two members in the State Commission and creation of Benches.

This will facilitate quicker disposal of cases in State Commission having a large number of cases. The amendments to section 17 clarify the jurisdiction of the State Commission and also to raise its jurisdiction to entertain complaints where the value of goods or services and compensation claimed exceed rupees twenty lakhs but does not exceed rupees one crore. At present, the jurisdiction of the State Commission is above rupees five lakhs and up to rupees twenty lakhs. This will be convenient for the complainants and will reduce the number of complaints filed before the National Commission.

New Section 17A empowers the State Commission to transfer a case from one District Forum to another District Forum within the State if required for ends of justice. It also inserts another new section 17B to enable the State Commission to hold Circuit Benches.

In section 19, Proviso is inserted to provide that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited in the manner as prescribed by the State Governments fifty per cent of the amount or rupees thirty-five thousand, whichever is less. New section 19A provides that endeavour shall be made to dispose of appeals filed before the State Commission or the National Commission within ninety days from the date of admission. It also further provides that no adjournment shall ordinarily be granted unless for sufficient reason for grant of adjournment has been recorded in writing and costs for such adjournment have also been specified in order.

In the event of an appeal being disposed of after the period so specified, the State Commission or, the National Commission, as the case may be, shall record in writing the reasons for the same at the time of disposing of the said appeal. The amendments to section 20 make the same provisions in respect of qualifications and disqualifications for members, reappointment of the Presidents and Members, resignation of members and completion of term of existing members with regards to the National Commission as in the case of the State Commission and District Forum. It also makes provision to the appointment of more than four members and also creation of Benches of the National Commission.

The amendments to section 21 provides that complaints may be filed before the National Commission where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore. This is consequential to changes made in the jurisdiction of the District Forum and State Commissions. Section 22 is substituted to provide that the provision of sections 12, 13 and 14 and the rules made thereunder for the disposal of complaints by the District Forum, shall, with such modifications as may be considered necessary by the Commission, be applicable to the disposal of disputes by the National Commission. It also empowers he National Commission to review any order made by it, when there is an error apparent on the face of record.

These provisions will make the powers and procedures in respect of National Commission more explicit.It also inserts new sections 22A,22B,22C and 22D. New sectoin 22A empowers the National Commission to set aside ex parte orders against the opposite party or complainant in the interest of justice. New section 22B empowers the National Commission to transfer any complaint pending before the District Forum of one State or before one State Commission to another State Commission in the interest of justice. New section 22C enables the National Commission to hold Circuit Benches in any part of the country.

New section 22D provides for the senior most member to preside in the absence of the President of the District Forum, State Commission and National Commission, as the case may be, to ensure un-interrupted functioning of the Forum or Commission. However, in the case of National Commission, it provides that where a retired Judge of a High Court is a member or where number of such members is more than one, the senior most amongst them shall preside over the Commission. These provisions will streamline the functioning of the Consumer Redressal Forums and also reduce the number of the appeals to the Supreme Court from orders of the National Commission. The proviso is inserted in section 23 to provide that no appeal by a person, who is required to pay any amount in terms of an order of the National Commission, shall be entertained by the Supreme Court unless the appellant has deposited in the manner as prescribed by the Central Government fifty per cent of that amount or rupees fifty thousand, whichever is less.

(The author is sr manager, professional services, Hinduja Hospital, Mumbai and may be contacted at drsiyerin@yahoo.co.in)