Table Of Contents:
TABLE OF CASES XXVII
Preamble 2
Aims and Objects of the Act 2
Importance of the preamble as stressed by the Supreme Court 2
Construing provisions in favour of consumer 3
GO TO THE TOP

PRELIMINARY
Cause of action arising prior to coming into force of Chapter III 6
Introduction 6
Definitions 8
Who is a Consumer 16
Purchaser of goods 16
Trade sales 20
Sale in course of business (Seller to sell in course of
his business) 21
Businesses of all kind covered 22
Buying or dealing as consumer, not for resale or
commercial purpose 24
Purchases by Charitable Trust 28
Non-consumer transactions 29
Distinction between commercial and domestic
purpose, how far workable 30
Purchase for self-employment 31
Application of limitation laws 35
Agreement to purchase 35
Form of agreement 35
Hirer of services 35
Services of Commercial Nature 38
Purchaser of immovable property 39
Postal 39
Government Guest House 39
Patients 40
Employee Welfare 41
Approval of building map plans 41
Supplier of electricity 41
Printers Instructions : Consumer Protection Act
Appointment of agent 41
After-sales services 42
Passport 42
Travellers Cheques 42
Water-Supply 42
Electricity 43
Ration Card 43
Municipal services 43
Jurisdiction to decide whether applicant a consumer 43
Judicial Review 45
Nature of protection 47
New Forum for enforcement of product liability 50
Remedies under other laws 54
Jurisdiction of Civil Courts 54
Accident and Railway Claims Tribunal 55
Matters sub judice before Civil Courts 56
Genuineness of Documents 57
Breach of contract 58
Arbitration clauses 59
Res Judicata 61
Writ petition 62
Cases involving complex questions of law and fact 62
Delayed finding of complicated questions 65
Indian Telegraph Act-Billing dispute 66
Welfare Fund 67
Economic loss 67
Criminal proceedings 67
Accounts 67
GO TO THE TOP

CONSUMER PROTECTION COUNCILS
Central Consumer Protection Council [S. 4] 68
Procedure of Central Council [S. 5] 69
Aims and Objects of the Act 71
Protection against hazardous goods 71
Consumer Product Safety in USA 75
Right to consumer information 77
Right of access to variety and competitive prices 78
Right to due attention at appropriate forums 79
Unscrupulous exploitation, restrictive and unfair trade practices 79
Right to consumer education 81
Changes made by the Act in the existing structure of
consumer remedies 82
Privity of Contract 82
Tort of Negligence 82
Exemption Clauses 83
The state of English Law 84
State of Law in United States 85
Position of users who are not buyers 85
State Consumer Protection Councils [S. 7 and 8] 87
GO TO THE TOP

CONSUMER DISPUTES REDRESSAL AGENCIES
Establishment [S. 9] 88
District Forums 89
Composition [S. 10] 89
Duty to Establish Forums 91
Jurisdiction of District Forums [S. 11] 92
Matters of jurisdiction 93
Cause of action 93
Pecuniary jurisdiction 93
Interim Orders 95
Amendment of order 96
Transfer of cases 96
Jurisdiction territorial 97
Clauses restricting jurisdiction 98
Estoppel as to jurisdiction 99
Effect of civil suit 99
Complicated contractual matters 99
Complaints and Procedure 100
Meaning of complaint [S. 2(1)(c)] 100
Complainant 102
Who can make complaint and its manner 102
Complaint by consumer 104
Complaint by attorney holder 104
Complaint by consumer association 105
Clauses ousting jurisdiction 105
Cross-objections 106
Status quo during pendency 106
Price fixed by law 106
Procedure on receipt of complaint [S. 13] 107
Procedure Mandatory 111
Persons against whom complaint can be made 112
Sale in the course of business 113
Laboratory testing 115
Procedure where laboratory testing not possible
or not required 116
Appointment of Commission for finding out facts 116
Validity of proceedings 116
Powers of Civil Court for certain purposes 117
Withdrawal of complaint and res judicata 119
Subject-matter of complaint 119
Loss or damage caused by unfair or restrictive trade practice 119
Caveat emptor replaced by caveat venditor 122
Protection of consumers against unfair methods or
deceptive practices 123
Supreme Court traces the need for the provision 124
Object of definition : honesty and truth in manufacturer-
customer relation 125
Issue of securities 127
False Representation [S. 2(1)(r)(1)] 127
Form of representation [S. 2(1)(r)(1) Explanation] 130
Some examples 130
Standard or quality, a subjective judgment 132
Advertisement also subjective-matter 133
Preventive measures and administrative action 134
Use of foreign brand name 134
False representation as to standards, etc.
[S. 2(1)(r)(1)(i)] 135
Representation as to composition 136
Standard, etc., of services [S. 2(1)(r)(1)(ii)] 137
Old goods described as 'new' [S. 2(1)(r)(1)(iii)] 137
Sponsorship, approval, etc [S. 2(1)(r)(1)(iv) and (v)] 138
Artificial need [S. 2(1)(r)(vi) 139
Warranty or guarantee [S. 2(1)(r)(1)(vii) & (viii)] 139
Misrepresentation as to prices [S. 2(1)(r)(1)(ix)] 141
Disparagement of goods, services or trade of others
[S. 2(1)(r)(1)(x)] 142
Warranty as to durability, performance 143
Unconscionable representations 143
False offer of bargain price [S. 2(1)(r)(2)] 144
Schemes offering gifts, prizes, etc. 145
Price representation as a deceptive trade practice :
Free goods with other purchases 150
Non-compliance with prescribed standards [S. 2(1)(r)(4)] 151
Hoarding, Destruction or Refusal [S. 2(1)(r)(5)] 152
Findings of the District Forum [S. 14] 152
Types of relief which can be provided under the Act 154
Power to issue Directions 155
Some examples of Types of Relief 156
Difference of opinion and inadequacy in forum 157
Types of relief not allowed under the Act 157
Telephone directory service 158
Annual membership 158
Electricity 159
Tariff 159
Cuts in supply 159
Shifting of transmission line 159
Government orders 159
Property dealings 159
Land acquisition 159
Pricing of products and services 160
Quota fixation and allotment 160
Water-supply 161
Judicial set-up 161
Police service 162
Service matters 162
Public services 162
Governmental works 162
Pension services 165
Municipal Services 165
Statutory authority 166
Interim relief 167
Signature upon orders 167
Vacancy in office or failure in discharging functions 168
Defective Goods [S. 2(1)(c)(ii)] 169
Defect 170
Applicable legal requirement 171
Required by law 171
Promised standards 172
Consumer Remedies under Sale of Goods Act 173
Exclusion clauses in consumer sales and services not allowed 173
Limitation of liability in a service contract 174
Merchantable quality in consumer sales 175
Quantity of sticks in match-box 176
Air-Conditioner 176
Defective Scooter, motorcycle, etc. 177
Warranty period 177
Television 178
Video cassette player 178
Adulterated edible oil 179
European-style closet 179
Defective car 179
Defective motor lorry 181
Deduction for use value 181
Computers 181
Laser printer 182
Defective furniture 182
Defective cycle 182
Defective refrigerator 183
Chilling unit 183
Pressure cooker 183
Defective LPG Gas Cylinder 184
Defective machinery 184
Musical fountain at Children's Park 186
Tractor 186
Tiller machine 187
Arrangement for supply of goods 187
Wrong description 188
Defective cement 188
Raw hides and skins 188
Seeds 188
Certified seeds 190
Defective storewell almirah 191
Wrong medicine delivered by retailer 191
Hire-purchase 191
Textile 192
Failure to supply 192
Late delivery 192
Hand pump 193
Pump Set 193
Burden of proving inconvenience, etc. 193
Deficient Services 193
Service : Supreme Court analysis of definition 194
Amenability of public authorities to jurisdiction
under consumer legislation 195
Test of ''Deficiency' ' 197
Impossibility 199
Deficiency due to fraud, etc. 199
Privity of contract 200
Gobar Gas Plant 202
Building and housing services 202
Direction for execution of conveyance 205
Refund of earnest money 205
Refund of registration money 205
Measurement 205
Mechanical devices 207
Escalation of construction costs and delay 207
Delay in giving information requisite to secure housing loan 209
Rejection of claim without referring to merits 209
Unapproved housing scheme 210
Substance cannot be altered by clever drafting 210
Deficiency in service : Order for removal 210
Builder's responsibility to provide vacant possession 211
Complicated questions in connection with housing 213
Limitation 213
Chance for further option to allottees 214
Corner value 214
Failure to take note of intimated change of address 214
Government housing services: Use of sub-standard material 214
Compensation for poor housing service 217
Who should pay compensation 220
Compensation for delay 224
Diversion of Building Fund 225
Provision of lift 226
Property 226
Holiday Home 226
Advertisement 226
Cycle Stand Service 226
Parking service 227
Transport services 227
Jurisdiction 227
Misdelivery by carriers 228
Damage by carrier 229
Non-delivery 230
Non-delivery of booking under owner's risk 230
Refusal to perform contract of carriage 230
Carriage on special terms 230
Carrier's dues 231
Delay by carrier 231
Defective delivery of Motor Vehicle 231
Lucky draw contest 232
Sale Commission 232
Loaning agreements 232
Loaning and economic loss 234
Provision of engineering service by lender 236
Insurance of premises constituting security 236
Guarantor of Loans 236
Rates of interest 236
Relief of interest rate to sick Companies 236
Financial services, loaning and delay 237
Default in repayment of loan 237
Shares and debentures 238
Allotment 238
Transfer of shares 239
Allotment of rights issue 239
Investment 239
Allotment in wrong name 240
Courier service 240
Time of performance 244
Telephone billing 244
Excess telephone billing 246
Service of telephone bill by ordinary post 247
STD 248
Death of subscriber 248
Shifting of connection 248
Delays 248
Disconnection of telephone service without notice 249
Limitation : Rectification of wrong telephone billing 250
Free calls 250
Interest on security deposit 251
FAX 251
Insurance 251
Complicated insurance claims 251
Insurable interest 253
Insurance service 253
Vehicle insurance 256
Driver without licence 258
Insurance of Nursing Home 258
Issue of cover note 258
Dishonour of premium cheque 259
Loss by breach of trust 260
Purchaser of insured vehicle/ship 260
Sale of insured vehicle 260
Time for filing claims 260
Value at time of loss 261
Value of Survey Report 261
Household and office insurance 262
Shop insurance: Cash in transit 263
House and Building insurance 264
Factory insurance 264
Stock-in-trade in factory 265
Loss due to workers' strike 266
Insurance of printing press 266
Lime kiln insurance against fire 266
Change of address 266
Plant and machinery 267
Lab insurance 267
Livestock insurance 267
Crop insurance 267
Medical insurance 268
Insurance of employees in hazardous jobs 268
Marine and Transit insurance 268
Diversion of voyage 270
Insurance of fishing boats 270
Loss by adulteration in transit 270
Subrogation 271
Taking passengers on insured vehicle for carriage of goods 272
Taking passengers in private vehicle 274
Insurance, delay in payment 274
Motor vehicle, damage by terrorist, riotous violence276
Changing possession of vehicle 277
Assignment of policy 277
Beneficiary of policy 278
Stage for repudiation 279
Renewal of policy 279
Discharge voucher in full and final settlement 279
Life Insurance 280
Payment under insurance policy 280
Acceptance of life insurance proposal 285
Terms of policy 285
Accident benefit 286
Personal accident policy 286
Assignment 287
Surrender value 287
Payment under group insurance 287
Payment of premium through employer 288
Payment of premium through agent 289
Lapse of policy on non-payment of premium 289
Social welfare scheme 289
Banking Service 290
Payment of cheque despite stop notice 290
Collection of cheques 290
Duty to inform customer if cheque returned 291
Bank's service charges 291
Dishonour of bank draft, cheque 291
Withdrawal of money by partner 292
Delay in issuing duplicate bank draft 293
Operation of individual account 293
Operation of deceased account 293
Delay in payment of crossed cheque 294
Sale by bank of pledged articles 294
Realisation of security 294
Duty to return security on payment 295
Duty during strike period 295
Banker's lien 295
Sundry banking services 297
Loaning services 298
Interest rate on loans 299
Unauthorised deduction 299
Reversal of wrong entry 299
Writing off agricultural loans 299
Locker 300
Forgery of signature 300
Encashment of bank guarantee and letter of credit 301
Improper delivery of documents by bank 302
Suppressing letters of credit 302
Refusal of service 302
Fixed deposit service 302
Current account service 303
Claims of interest 303
Refund of booking money 304
Airline services 305
Death on board 306
Loss of tickets 306
Increase in fare 307
Delay in flight 307
Service of meals 307
Travel agent 307
Carriage by air 308
Duty in delivering goods 309
Duty on arrival at destination 309
Duty of Airport Authority 309
Supply of electricity 310
Restriction on use 313
Disconnection of power supply 313
Disruption of supply 314
Arrears of charges for supply of electricity 314
Raising of charges 316
Request for load reduction 316
Installation of generator change-over switch 316
Entitlement to rebate 316
Refund of overcharged electricity duty 316
Educational institutions 317
Amenities of academic services 319
Matters of fee and charges 320
Accident on school premises 320
Education as service 320
Swimming-pool training 323
Purveying of news or other information 323
Publishing 324
Exhibition 326
Service in the nature of employment 326
Tailoring 327
Job market 327
Services of travel agency 328
Nursing-homes and medical services 328
Caesarean delivery 334
Recanalisation operation 334
Practice in one discipline, qualified in another 335
Blood transfusion 339
Injection 339
Foreign matter left in body after operation 340
Wrong diagnosis 340
Sterilisation 340
Tubectomy operation 341
Dentist 341
Free Hospitals 341
Employees State Insurance Hospitals (ESI) 342
CGHS 342
Ex Gratia Payment by Doctor 342
Hospital Insurance 343
Booking vehicles, etc 343
Postal Services 345
Post Office Savings Account 347
Delay in delivery of telegram 347
Delivery of wrong message 347
Delivery to authorised Agent 348
Chit Fund 348
Refund of deposits 348
Superannuation benefits 349
Provident Fund 349
Share-broker 353
Investment in NSC 354
Investment in industry 354
Investment in U T I 354
Parking facility 354
Return of security 355
Carrier of passengers 355
Railway reservation 356
Cloak room service 357
Discrimination in amenities 357
Bus passengers 357
Hotel 358
Sick industrial companies 358
Costs 358
Tele-printer services 359
Defective lift 359
Video services 359
Dry-cleaning 359
Generator for Small Scale Industry 359
Reference to arbitration 359
Duty of reasonable care and skill in practice of professions 360
Solicitor 362
Legal practitioner 363
Professional advice 363
Incompetent handling of gas 364
Boating services 364
Price [S. 2(1)(c)(iv)] 365
Misleading indication of price 365
Price printed on packing 367
Price for housing services 369
Pricing of products or services 370
Electricity service charges 370
Charges for professional services 371
Agreed price 371
Sales tax 371
Appeal [S. 15] 371
Condonation of delay 372
Cross-objections 376
Commencement of period 376
Further evidence and objections in appeal 377
Appeal against ex parte orders 378
Setting aside ex party orders 378
Incompetent forum 378
Non-speaking orders 378
Review 379
State Commissions 379
Composition [S. 16] 379
Jurisdiction [S. 17] 381
Claims under motor vehicle accidents 385
Complainant to come with clean hands 385
Clauses excluding jurisdiction 386
Procedure [S. 18] 386
Supply of drinking-water 387
Appeals [S. 19] 387
Non-application of mind to evidence 388
National Commission 389
Composition of National Commission [S. 20] 389
Jurisdiction of National Commission [S. 21] 391
Original 391
Appellate 392
Review and supervision 392
Review of interest rate 398
Review of own orders 398
Expunging of adverse remarks 398
Inappropriate remedy 399
Refusal to provide opportunity for cross-examination 399
Dismissal of appeal without considering merits 399
Dismissal on the basis of ex gratia payment 400
Ex parte dismissal without considering merits 400
Ex parte acceptance of claim 400
Rehearing 400
Matters of Jurisdiction 401
Matters of evidence 401
Decision without considering issues 401
Decision without considering written version 402
Powers and procedure of National Commission [S. 22] 402
Appeals [S. 23] 402
Finality of Orders [S. 24] 403
Period of Limitation 403
Effect of expiry of limitation 404
Condonation 406
Continuing wrong 409
Contract to the contrary : Cutting short the
period of limitation 409
Administrative control of National and State Commissions 410
Enforcement of orders [S. 25] 410
Dismissal of frivolous or vexatious complaints [S. 26] 411
Costs 413
Penalties [S. 27] 413
Abatement of proceedings 416
Application for execution of orders 416
GO TO THE TOP

MISCELLANEOUS
Actions in good faith 417
Removal of difficulties 417
Vacancy and defect in appointment 417
Power to make rules 417
GO TO THE TOP

THE CONSUMER PROTECTION RULES, 1987
Short title and commencement 420
Definitions 420
State Governments to recognise a laboratory as an
appropriate laboratory 420
The constitution of the Central Consumer Protection
Council and the Working Groups 421
Procedure of the Central Council 422
Place of the National Commission 423
Working days and office hours of the National Commission 423
Seal and emblem 423
Sittings of the National Commission 423
Staff of the National Commission 423
Additional powers of the National Commission, State Commission
and District Forum 423
Salaries, honorarium and other allowances of the President and
Members of the National Commission 424
Terms and conditions of service of the President and members
of the National Commission 424
Removal of President or members from office in
certain circumstances 425
Procedure to be followed by the National Commission 426
Procedure for hearing the appeal 426
Sitting of the National Commission and signing of orders 427
Appendix I-Practice Notes 429
Appendix II-(1) Delhi Consumer Protection 457
(2) UP Consumer Protection Rules 464
Appendix III-Redressal Agencies under the
Consumer Protection Act, 1986 475
Subject Index 503