1. THE CONSUMER PROTECTION ACT, 1986

2. In 1962, John F.Kennedy, the President of United States of America made a historic declaration at the US Congress: “Consumers, by definition, include us all. They are the largest economic group in the economy, affecting and affected by almost every public and private economic division…………….But, they are the only important group…..whose views are often not heard”

4. In 1976, the Supreme Court of India observed that the protection of the consumer is the need of the society.

5. In India, the consumer movement began to develop in the 1960s though it took its shape in the late 1980’s. In 1982, an ‘Asian Seminar in Consumer Protection’ was organized in schools and colleges, in which 300 delegates from all the Asian Countries participated. Taking this landmark consumer movement into consideration, the then Prime Minister Indira Gandhi included Consumer Protection as the 17 th programme and it was put on the national agenda. For the first time, the need to create a statute for the protection of the consumers was felt.

6. The Central Government, during Rajiv Gandhi’s tenure as the Prime Minister, presented the bill ‘Consumer Protection Act, 1986’ to the legislature and was subsequently passed. It was drafted after consultations with various consumer organisations and activists.

7. PREAMBLE OF THE ACT An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes and for matters connected therewith.

8. The main objectives The right to be protected against the marketing goods, which area hazardous to life and property; The right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices; The right to be assured, wherever possible, access to a variety of goods at competitive practices; The right to be heard and to be assured that consumers interest will receive due consideration at appropriate fora;

9. The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and The right to consumer education

10. Who is consumer

11. Who is ‘Consumer’ ? 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 and includes any user of such goods other than the person who buys such gods 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

12. Hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purpose;

13. Meaning of ‘defect’ it relates to goods- means any fault, imperfection, short coming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever.

14. Meaning of ‘deficiency’ It relates to any service in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both housing construction, entertainment, amusement but does not include any service free of charge in deficient manner i.e., fault, imperfection, short coming or inadequacy in the quality, nature and manner of performance 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;

15. What is ‘Complaint’? In legal terms, a “Complaint” means any allegation made in writing by a complainant for redressal of grievances. A complaint could relate to: An unfair trade practice or restrictive trade practice Defective goods Deficient services Hazardous goods

16. Who is a ‘Complainant’? means a consumer or any registered voluntary consumer association. A “Complainant” could be an individual, consumer or a group of consumers having the same interests even by the Central Government or any State Government. In case of death of a consumer, his/her legal heir or representative can be the complainant.

17. Where to file a ‘Complaint’? If the value of the goods and services and the compensation claimed does not exceed Rs.20,00,000/-, then the complaint can be filed in the District Forum within the local limits of whose jurisdiction the opposite party actually resides or carries on business or has a branch office or personally works for gain or where the cause of action wholly or in part arises;

18. If the value of goods or services and the compensation claimed is between Rs.20,00,000/- and Rs.1,00,00,000/-, the complaint can be filed before State Commission;

19. If the value of goods or services and the compensation claimed exceeds Rs.1,00,00,000/-, a complaint can be filed before the National Commission.

20. Relief available to the Consumers To remove the defects in goods or deficiencies in the services in question. To replace the goods. 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

21. Appeals from the District Forum to the State Commission the aggrieved party may prefer an Appeal to the State Commission within a period of 30 days from the date of the order. The party has to deposit fifty percent of the amount so awarded or Rs.25,000/-, whichever is less.

22. Appeals from the State Commission to the National Commission the aggrieved party may prefer an Appeal to the National Commission within a period of 30 days from the date of the order. The party has to deposit fifty percent of the amount so awarded or Rs.35,000/-, whichever is less.

23. Appeals from the National Commission to the Supreme Court the aggrieved party may prefer an Appeal in the Original Complaint to the Supreme Court within a period of 30 days from the date of the order. The party has to deposit fifty percent of the amount so awarded or Rs.50,000/-, whichever is less.

24. Limitation for filing a Complaint before the District Forum, State Commission and the National Commission The District Forum, State Commission and the National Commission shall not entertain unless it is filed within two years from the date on which the cause of action has arisen. However, provision has been made to entertain the Complaint, if the Complainant satisfied that he has sufficient cause for not filing a complaint within such period.

25. Dismissal of Frivolous or Vexatious Complaint Where a complaint instituted before the District Forum, the State Commission or, as the case may be, the National Commission is found to be friovolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order.

26. Penalities Shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousand rupees but which may be extend to ten thousand rupees or with both;

27. Electricity these days is a basic human need, and is an essential requirement for all walks of life. Development of the country is altogether dependent on it. Hence, protection of the consumer of electricity is of paramount importance.

28. Areas/chances where ‘complaint’ can be instituted by consumers; Electricity is not supplied to the consumer; Electricity connection is not sanctioned in time; Electric connections are disconnected arbitrarily and without notice; Huge bills are being slapped on the consumers without any basis; The electric lines are hanging loose in the fields causing huge loss or damage to the crops and humans;

29. Allowing the public unauthorisedly to draw wires, such as cable wires, etc., thereby causing loss of life to the innocent consumers of electricity; Non-replacement of burnt electric meters; Huge delay even for shifting the electric connections;

30. The National Commission in the case of Jharkhand State Electricity Board V Anwar Ali, IV (2007) CPJ 6 (SC), the question that came for consideration before the Commission was: “Whether Consumer Fora have jurisdiction to deal with the grievances of the consumer of electricity, in case of deficiency in service by the electricity supplier, after enactment of the Electricity Act, 2003?”

31. The National Commission, after considering the arguments of the parties at length, gave the following findings:- (i) The rights of the consumers under CP Act, 1986 are not affected by the Electricity Act, 2003; (ii) If the grievance of the consumer is not redressed by the ‘distribution licensee’ as established under the Electricity Act, 2003, he shall make a representation to Ombudsman (to be appointed by the State Electricity Regulatory Commission). This is an additional remedy provided under the Electricity Act. It means, the consumer can avail his remedy ‘under any other law’, i.e the Consumer Protection Act, 1986.

32. (iii) In case of any grievance against the final assessment order passed by the Assessing Officer, when he found on inspection that the consumer is indulging in unauthorized use of electricity, (U/s.126 of the Electricity Act)-  the consumer can file a complaint under the Consumer Protection Act, 1986. However, it is his option to file complaint under the Consumer Protection Act, 1986 or to file an Appeal in Appellate Authority U/s.127 of the Electricity Act, 2003;

33.  further, against the final order passed by the Appellate Authority U/s. 127of the Electricity Act, 2003, no complaint can be entertained by the consumer fora.  the consumer of electrical energy provided by the Electrical Board or other Private Company is a consumer, and, any complaint alleging any deficiency is maintainable under the Consumer Protection Act, 1986.

34. No jurisdiction of Consumer Courts Consumer Fora have no jurisdiction to interfere with the initiation of criminal proceedings. Hence, theft of electricity, theft of electric lines and material, negligently breaking or damaging works, intentionally injuring works, extinguishing public lamps, etc., do not come under the Consumer Protection Act, 1986.

35. Wires hanging loose Shri Gouda Patil had an electric connection for a pump set meant for irrigation purposes. When he found that the distance between the poles was too much and wires were hanging loose, he brought it to the notice of the Electricity Board to rectify the defect, which fell on deaf ears and no action was taken. On one night, due to winds, electric wires between the poles came into contact resulting in sparks and fire. As a result his sugarcane crop, coconut and chikku trees were burnt. National Commission held due deficiency only fires were burnt.

36. Direct cable connection-Electric Shock In this case, Complainant’s son Dhananjaya was attempting to fix cable wire to television and he suffered electric shock and died. The complainants produced evidence to show that the cable wire was drawn from the electricity pole using electric wire by the Cable operator illegally. The action of the cable operator clearly shows that the Bangalore Electric Supply Company Limited (BESCOM) has allowed cable operator to do the same and did not prevent him from drawing the cable wire from the electric pole. Since Electricity Board did not prevent cable operator from drawing cable wire from the poles, it was held by the State Commission that this act comes under deficiency in services and further that the cable operator had also violated the instruction issued by the Departments. Hence, both the parties, that is Cable Operator and Electricity Board were made jointly and severally liable to pay compensation to the complainants.

37. Fluctuations in electric supply and due to short circuit, fire broke out and destroyed everything in shop- consumer is compensated. The complainant, Anand Medicos, a chemist, was availing electricity from HSEB. Due to short circuit, fire broke out on one night in the shop and everything inside the shop was destroyed. The complainant alleged deficiency in service on the part of HSEB, contending that there was huge fluctuation in the electric current due to which short circuit took place resulting in fire, which destroyed everything in the shop. He claimed a loss of Rs.3.5 lac and Rs.50,000 as compensation cause to him. District Forum dismissed the complaint and in appeal, State Commission awarded the loss and compensation.

38. Mr. X carried cultivation and cattle farm where he had cows, she-buffalos etc. In this field an electricity line was passing over and those wires had become loose and that they were hardly seven to eight feet high from the ground. Many written complaints were lodged requesting the electricity board to rectify the problem but they did not pay any attention. When one day his she-buffalo was grazing in the field the wire broke down resulting in electrocution of his she-buffalo. He got done the postmortem of the she-buffalo and approached the electricity board who ignored his complaint. Then his complaint in the District Forum was allowed on the ground that he is a consumer of RSEB. Compensation of Rs.12,000/- along with Rs.2,000/- as damages and Rs.500/- as costs were awarded.