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Consumer Protection Act Part 1

Consumer protection act of 2019 - law of tort

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Consumer Protection Act Part 1

Consumer protection act of 2019 - law of tort

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a i rE PART OI CONSUMER PROTECTION LAW te : Unless otherwise stated, the sections mentioned in this Chapter are of i Consumer Protection Act, 2019). perms SILT LORS 1 1 a © scanned with OKEN Scanner Chapter 25 CONSUMER PROTECTION ACT, 2019 Synopsis and Nature of Consumer Protect 26 roduction I packground sumer Protection Act, 1986 se Consumer Protection Act, 1986 1. eed for Change Consumer Protection Act, 2019 ¥ solent Features of the 2019 Act > induction 3, Defning Consumer and Consumer Rights 3.1. Consumer 3.1.1 Definition 3.1.2. Buy to Ear a Livelh Industrial Institute 3.13. Agriculture and Consumer Laws 3.1.4 Landowner and Builders—Fagir Ch Uppal Agencies Private Ltd. ee aoe beet 3.1.6 Consumer and Complainant 32 Consumer Rights Goods, Services and Other Important Definitions 41 Goods—Section 2 (21) 42 Service—Section 2(42) 4.2.1 Overview 4.2.2, Housing as a Service—Lucknow Development Authority v. MX. Gupta 4.23 Healthcore—indian Medical Association v. VP. Shantha & others 4.2.4 Liability of Public Authorities—Ghaziabad Development Authority v. Balbir Singh i 43 Defect—section 2 (10) and Deficiency—Section 2 (11) 44 E-commerce: within the Ambit of Consumer Protection Act 45 Restrictive Trade Practice—Section 2(41) and. Unfair Trade Practice—section 2(47) 46 Unfair Contract—Section 2(46) 47 Advertisement—Section 20) Consumer Protection Councils Mediation 61 Mediation Cells 62 Panel of Mediators 63 Place of Mediation and Special 64 Settlement Report, Written Amen fe Composition, Jurisdiction and Powers of (519) fon Laws, '00d—Laxmi Engineering Works v. PSG. | Considerations ‘ents and Signatures esal Commissions © scanned with OKEN Scanner LAW OF TORIS 520 mW District Commission : Composition ‘Mp, auton and Other Provisong stato Commision 72 1 Compostion 752 autsdicion and Other Provisions National Commission 7.3.1, Compostiion 33.2 Jurisdiction and Other Provisions 733 Power inistrative Contr ° fan. complaint, Admision, ofc OT Who can fle ¢ Complaint 9.2 Fees 9.3. Admission 9.4 Mediation 95 Procedure 9.51 Post Admission/Fallure of Mediation 95.2 Affidavits and Evidence 9.53 General Powers 9.5.4 Adjournment 9.55 Findings of District Commission 956 Miscellaneous Extending Procedure to National Commiss. : ommivon() lon and State 10. Review 11. Umitation 12, Appeal | 12.1 Appeals ftom District Commission to State Commission 122 Appeals from State Commission to National Commission Time Period 123. Appeals from National Commission to Supreme Court 13, Finally of Order 14, Enforcement of Orders and Related Appeals 16. Central Consumer Protection Authority, Investigation Wing and Procedure 18.1 Objectives and Powers 18.2 Composition, Directions and Expert- Assistance 153 Investigation Wing, Director- General and Powers 183.1 Overview 183.2 Operating Flowchart for the Authority 154 Penalties ea nad of Misleading Advertisements—Authority cal 4.2 Per fe Cours % oe Nnatties in General and Compounding—Vid i Product ality Action 18 Other Offences and Penalties Be, Consumer Protection ond Arbitration Other Important Cases a ie 's In Addition to—imperia Structures Lta. v. Ani Patnl QPiions "“Avalable to Allotfees_ and Guaniun mpensation—Ankur Goyal v. Rise Project (P) Ltd. 73 © scanned with OKEN Scanner CONSUMER PROTECTIOn, Acr, 998 One-Sided Contrag 19 r Khanna S—lreo Grace 521 Reatt Consumer with ( m4 dB ors Mutts Propertiog Ua Abhishoy, va Ay § Education, Education, Abuja y, 9 Vinayak Mission Urweranttes ON hiora Estate 1 Need for and Nature of Consuim, : q er P; uction y Mepsumer WS all OVEE the World yo Sate! r services, F Provid / qroduets) OF Services. For exammpy? 1, PtOtection to consumer e japtop—YOU are a consumer 6} 904 Were to buy a smart Sof aibscription to store your data S. But ip phone 3 . OF an j you ube opal Insurance policy Gir Purchase a arate paired, YOU are a consumer of serie Policy or if you set your i i ce. If th or the services provided were def © goods purcha judicial in nature, consum: , Quasi-jucrcrae mn ler commissi and effective dispute resolution. Coun es focused on providing | ek jes are simple to ensure that an er 2 Romina) and te | Fut having to ever hire a legal counoe, One ved person can ‘get justice | gsenting themselves in the consumer commissions teem 5 consumers |” What makes corisumer protection laws in India especi hat |serenels provided therein are adtonal rome ay te i | other laws. Hence, regardless of the availablity of altemative remedies any | qasumet can elect to seek justice through consumes 7 | canot be compelled to opt-for another mode of dispare om ssions and he ispute resolution. | 2. Background | Concrete developments towards consumer protection can be traced back to the 1970s where UN agencies started examining the role between consumer | pmtecion and socio-economic development which culminated in the 1985 Guidelines for Consumer Protection being adopted by the UN General “Asembly? : Consumer laws grew from the on-ground awareness of socio-economic and even’ cultural peculiarities which rendered blanket acceptance of the | cmeept of ‘caveat emptor’—let the buyer beware, untenable. Increased _industrialization and globalization made it nearly impossible for customers to -tvestigate in the meaningful manner the claims and quality of goods and servioes being marketed. Further, manufacturers and sellers are likely to be better organized aa “Tor financially well-off. than consumers, In light of the Teton mportionate bargaining power, there was a need to protect consi om ®plitation, promote standardization of goods and services, and safegua otection Laws 2002 amendment,” The 2019 Act also Inifoduced in the 1986 Act vide the ees Reference may be made to the oO it Bi forates the principle of payment of cou : Bey ae nthe cate: Genefal Assembly—Consumer be Assembly (United Nations) Be Frotection—Resolution No, 39/248, dated 02-04 © scanned with OKEN Scanner LAW OF TORTS | 522 sub-standard goods and defi or sub-standard g' ficken servig, adulterate them from 11, The Consumer Protection Act, 1996 protection Act, 1986 Consume ional obligations as well 1, The - dia’s international obligations as well as tho. In Tight ote expounded under the Indian Constitution Pepi, ocio-€000 se ale 'd and expensive nature of remedies envisaged ® wi | protracted, OMPCT the socially beneficent 1986 Act, foeuses “erg Jed to the ena’ tup to deal with violations of customer rights, a ug and fei pant the nature of the Act was elaborated upon by g The ne he new namark decision of Lucknow Development Auth, Hy in whe following words: : Mk ae vain with the preamble of the Act, which can sstence to ascertain the legislative intention, it was ens assitje for the protection of the interest of consumers’ Use gf qe Provietion’ furrishes Key to the minds of makers of the q's" ne law meets long felt necessity of protecting the common man fon i rpogs for whi the remedy under ordinary Io for varows ray income ilsor. Various legislations and regulations permiting ih ges pecntervene and protect interest of the consumers have become q AH Ord sey i ers hav hav for unscrupulous ones and the enforcement machinery either does not ad or it moves ineffectively, inefficiently and for reasons which ave ng necessary to be stated. The importance of the Act lies in prmtn ivefare of the society by enabling the consumer to participate directly in te market economy. It attempts to remove the helplessness of a consumer wich he faces against powerful business, described as, ‘a network of racket gt 1 society in which, ‘producers have secured power’ to ‘rob the re and the might of public bodies which are degenerating into storehouse of inaction where papers do not move from one desk to another asa matter of duty and responsibility but for extraneous consideration leaving the common man helpless, bewildered and shocked. The malady is becoming so rampant, widespread and deep that the society instead of bothering, complaining and fighting for it, is accepting it as part of life. The enactment in these unbelievable yet harsh reales appears to be a silver lining, which may in course of time succeed in checking the rot. (Emphasis Added) The objectives of the Act along with the powers of Consumer Fora were ChanZed rather aptly in the case of J.J. Merchant & ots. v. Shrinah set vee it was observed that— i of the main objects of the Act is to provide speedy and sing Sen consumer disputes and for that a quasi- judicial wie quasijudicial beget UP a the district. State and Contra level | ies are required to observe the principles of natural 8° Secretary, Thi Cooper : & veenmerigan tive Agricultural Credit Society v. M. Lalite, ao I ALR. 1994 Sc, 797 3. ALR, 2002 sc, 2931, © scanned with OKEN Scanner CONSUMER PROTECTION, ACT, 2019 owered to giave panei campeng pec Hata sever ine orders given by the costs. Peli weil ged The obec and Purp ues bodice 2%," ovided: ‘Putpose of enactiny * have als vee Pepsi ms at ere 10 the conan ait ae ied to protect ae nie, and the ters oo Ariens 4 large bo levolent pi saat Mefeated. Prior to the Act cons ram extn felt J ye Civil Court for securing juste fo seen itis known fat that decision iy | takes years, (f i | isd s seen to be widely si oo ye the eect ely Successfully and fostey wie at of CUS pa fee from rigid legal proce dures? on-ground Pte as need f0 bring Some amendments to ens nella 4 rf i the era of digital India. ire appropriate e Ed for Change need Meployment and sucessful adoption of e-commerce necessitated wider “vithin the Statute, so that the Consumer F che ogical extension of judicial principles, er, SOME international principles of antiquity that ae pie rg Si wet pes provisions fo minimize time and costs spent on unnecessary and opmreagitation of the same. For example, under the 2019 Act, unfair ® been expressly included within the purview of the Consumer gut under the 1986 Act, intervention on unfair terms and contracts were Mr judicial precedents aswell as recognition of socio-economic alies and differences. in bargaining positions which necessitated protection in the first place. It was not an express provision that led more nuanced enforcement of contracts and terms therein. As noted by pe Cou in the case of DLF Universal Ltd. and or. v. Director, T. and ing Haryana and ors, Consistent with the character of purposive interpretation, the court is required to determine the ultimate purpose of a contract primarily by the joint intent of the parties at the time the contract so formed. It is rot the intent of a single party; itis the joint intent of both parties and the joint intent of the partes is to be discovered from the entirety of the contract and the circumstances surrounding its formation. As is slated in Anson’s Law of Contract, 'a basic principle of the Common uw of Contract is that the parties are free t0 etermine foe hemes what primary obligations they will accept... Today, the positon ina diferent ight Fredo of contact i generally gael #5 eon, Sx, ideal ony tothe extent that equality of barging power bey catractng partes can be assumed and injury #8 done to the inne ‘he community at large” The Court assumes “that the parties to 1° conraet are asonate persons who seek to achieve reason 14 SSimess and efficiency... In a contract between the joint inte ‘ora is not dependent % ROO Se 1463, © scanned with OKEN Scanner LAW OF TORTS 524 ; £ the reasonable person, joint; intent o! ny joint ing parties and id interpret the contract accordingly, 4 pany the Judge Sr yates the principle of good faith, (62, ho a therwise, iS Law by Aharon Barak: 2005 Princo’, Pups Interred ir previty and Emphasis Added) OP Univent | fare fr the landmark case of Pioneer Urban Land an iy similar vindan Raghavan,! the Apex Court observed 4b fang Limited ¥- the terms of contract between a builder and a flat purges ie reference to ‘A term of a contract will not be final and binding if ar) a the flat purchasers had no option but to sign on the da Sto that oe framed by the builder. The contractual fen ling Inf tra’ i on ant dated $5-2012 are ex facie one-sided, ait aBReasonable. The incorporation of such one-sided clauses, i fair trade practice as per ment constitutes an unl : ; er secti weConsumer Protection Act, 1986 since it adopts unfair practices for the purpose of selling the flats by the builder. ict Commissions over Now the jurisdiction of the Consumer om unfair tacts is clear, which will help narrow the and rguments—saving time and money: an OP 1) ethods Ill. The Consumer Protection Act, 2019 1. Salient Features of the 2019 Act (1) Makes provisions for e-commerce as well as incorporates technology-appropriate terminology; Q) Adds the concept of product liability and ‘product liability action’ to dissuade manufacturers and service providers from providing defective products or deficient service; (3) Broadens the scope of definition of who is a consumer to indude those who buy goods or hire services through online or offline transaction including multi-level marketing; (4) Makes an express provision for— (i) inclusion of a minor as a consumer? though relief can be sous through parents or legal guardian, es (ii) tights of a consumer} Gi) unfair contract,* (wv) review by the District Commission? ( sna (5) Establi i fag Central Authority to regulate violation of 8h iy ete as well a ir rights of an investigation wing, ne protect and enforce their "6 | COS Soe 265) vi, Protection Act pg Sections mentioned j the 3. Seon 29) * 2019 unless other, aren ie Chapter are from § Section 246), i Consus ion 40: Tt may 4 ve Fereation can be eq Noted that review is a creation of the statute amd 12, pil Daj, Stttined in the absence af ‘ein tothe smavenareo KhanderaoJambekar, peace sc. 157 © scanned with OKEN Scanner CONSUMER PROTECTION ACT, 2019 525 « provision for evfiling; Sradicional limits of the Consum Wfevels—Distrct, Stale and Nato NOW known 36 commissions | It also. alters io" " at value for jurisdiction is to be determi i fs i eva of gods an compere 986 Acts ay f ision fo , mes expres provision for consensual dispute resolution vide Tagg more grounds for filing a compla ; ; rosie heading advertisements and ulcer get Penalties endorsers within its ambit; of products. It incinde’ © wider access to justice and freed ; aintains ret remedies under this Act ae 2) Toe pe availabe to the customers, The most significant silany Bato Acts i the continued focus on consumer welfare and the Preowiedgement of the different socio-economic concems that sesringent pecans laws in the country. This is reflected in reads: ‘he provisions of this Act shall be in addition to and not in gation of the provisions of any other law for the time being in js an exact replica of Section 3 in the 1986 Act. The Tie of this principle of supplementary ‘mode of dispute resolution ot spenaive and expeditious remedies can be seen when we look Py realestate complaints where mandatory arbitration causes eee invoked by a party against a party in weaker bargaining power t erediction is sought to Be conered on certain forums like RERA only to the dispute. 7 Court has time and again held that the remedy provided under easg6 Act is an independent and additional remedy, and that the f an arbitration clause in the ag it will not debar the Consumer on entertaining complaints.' Thus, the availability of arbitration a5 ® ot prevent an aggrieved. person from approaching Constr Tot Pifore of deficiency in services or adoption of unfair rade Thidiowally, the juisdicion of the Consumer Forums flows from , and not a judgment or 0 yer, one important restriction is that they cannot pursue two remedies exp! the at © andes fost sis provision Dir Eig. Pot. Lid. & another v. Nik. Madi, (1996) 6 SCC. 385; CCI Chambers CaF et Beopment Cra atk Lt, 2) TS Rael pers Print Limited v. Aghore Bhtlacharyt and others, (2015) 1 WS. ‘ems) ml CP}. 40 (NCDRO) Pandey v. Unitech Limited, © scanned with OKEN Scanner ™ LAW OF TORTS 526 upon th will continue duction 2 ae preamble to the Act states that it seeks to provide for the interests of consumers, and. towards such goal, establishment Protection the ey and effective administration and settlement of conene! het It applies to the whole of India,’ and came into force on aon Pt hy, 5, Defining Consumer and Consumer Rights ly, 2695 "This pertinent to reproduce here certain observations of the sn Lueknaw Development Authority v. M.K. Gupta? to highlight gen Cour I proactive interpretation of the consumer laws, instead of q pam! fr conservative view— TOW ang ‘A scrutiny of various definitions such as ‘consumer’, ‘service’, ‘unfair trade practices’ indicates that legislature has attempted trader, the reach of the Act. Each of these definitions are in two pars explanatory and the other expandatory. The explanatory or the one, patt itself uses expressions of wide amplitude indicating clearly its man Sweep then its ambit is widened to such things which otherwise wou have been beyond its natural import. . « true scope of section 100 which mitrors section 3 to apply and guide enforcement of constimes aig Se * tt 3.1 Consumer 3.1 Definition Section 2(7) of the Act defines ‘consumer’ as ANY person who: (@ buys any goods for a consideration which has been paid 9 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 goods for consideration paid or promised 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 OF for any commercial purpose; or 2 (ii) hires or avails of any service for a consideration which has b paid or promised or partly paid and partly promised, or under system of deferred payment and includes any beneficiary of st service other than the person who hires or avails of the services 1S consideration paid or promised, or partly paid and partly promis | under any system of deferred payment, when such services are aV" of with the approval ofthe frst mentioned person, but does not inl a person who avails of such service for any commercial PUurpos? Explanation —For the purposes of this clause— b (@) the expression "commercial purpose” does not include use Mf Person of goods bought and used by him exclusively 2. ALR 1994 pat to Jammu and Kashmir Reorganization Act, 2019. Purpose of earning his livelihood, by ™ self-employment; | 7 Rees aay : | © scanned with OKEN Scanner ee PROTECTION, the expressions "yyy, ON rloes includes oro Boods® and ty a ind "hires | electronic means or by tg ®t online ransac ye *Vails | Jevel marketing, °Y 'leshopping ye dire tions through y ? Selling apy person ere has been BiveN Wide stay ne aN efcacious coverage, Ory da | feet t to note that j OW bo | ger importan hat if a person ; : 1 IL any goods for considerato® eee & not g | e"Sommercial purpose. The Isy Su constimer 1 Boods were ohne ¥en if fy ler is inte, ete obj le ay resale of goods. This can refer tended tg cn Paine ‘ ACT, 2019 , refer to an "cases oft ae ir caying Avis on a eae ta ‘hag 2° intend the tha fe eating Profit at of ano : sich Buy o Fam a Livelihood 1 gan Engineering wy, a landmark case of Laxmi Engine. « jute? helps highlight the difference borsrin® Works v. pg, io eam his livelihood by mes the goods for a commie, i G. Ind mS ofseltempt © CSET hy ba fe such purchased goods et NEI: Nesting ota fea to nce Such a person is the question, what isa % i Ny ‘commercial " be decided in the facts of on cate Tt se e. Tt is not ught the buyer himself, by employing i eh must be used few more illustrations world ize what we say. A person Vwho purchases an auto-ickshaw to ply it himeell heed earning Wis livelhood would be a consumer Similarly, a purchecer of ee who purchases it for plying it as a public carer by hinelf aca 4 consumer. A person who purchases a lathe machine or other we cite to operate it himself for earning his livelihood would be neon (In the above illustrations, if such buyer takes the assistance of one or {wo persons to assist/help him in operating the vehicle or machinery, “1. Section 2(31) reads as follows: ‘person’ includes— (0 an individual; i). firm whether registered or not; in @ Hindu undivided family; ae a ee tie tration ) am assecntion of penons whether registered under the Societies Regist Act, 1860 or not; indi edo (i) any corporation, company or a body of individuals whether incorporat serve to emphasi: Saat f the preceding (i) any artificial juridical person, not falling within any o sub-clause. / > 195 SCC, (3) 583, © scanned with OKEN Scanner oN es not cease t0 be a consumer) AS agains, | Pech or gutorrickshaw, a car or a lathe maching®, Pern, | to be plied or operated exclusively by another person whe mac consumer: This is the necessary limitation flowing from i ld ot His constiy him’, and “by means of self-employment in ye <*Prein® In a more recent judgment) the Apex Court clarified that 5 Plant tices services exclusively for the purposes of earning his if! wy es Seroyment isa consumer and Such purchase wi sod ‘commercial Purpose’. contig 413 Agriculture and Consumer Laws percent judgment of a 2judge Bench of the Supreme Cour jy siomatix Lt. v. 5. Ambika Devi and ors? is well suited t exami Nanda Interaction between agriculturalists and consumer laws within the con’ © ‘whether the former will be covered in the latter or not, Hot’ whetisnant-a stall landolder, responded to a “buy-back” advertise the May have to gp Mt ny! rot if the se weer Ter forum to secure it. If it is justfabiy Ben Appa COUT he bur wil Ma to do whatever that is ey n 082. Holding apply even after ‘commercial purpose’ has facts of circumstances of &: opinion that the agreement venture and the appellant was not have control over the cons consumer under the Act and the matter was Te Commission for re-adjudication. The recent judgment of Lilavati Kirtilal Mehta Medical Trust v. Unique Shanti Developers; reiterated that the question of whether a transaction is for ence purpose would depend upon the facts and circumstances ¢ the 2002 amendments, the Apex Court observed that te to be contextually examined and interpreted as per ‘ach case. In the instant case, the Court was of the t between the parties did not appear to be a joint not a partner or a co-adventurer and he did truction. Thus, the appellant was held to a manded back to the State that the principles laid down in the Fagir Chand case woos | 345 Concer and Complainant anda al coparant to note that the Act distinguishes bet jude ha There are different persons and entities that ‘onsumer Commissions as seen in section that the term ‘co mplainant’ can i [SS ———_—_ ref : aE fer to any of the following tween a consume tt can invok® te 2(6) which no © scanned with OKEN Scanner | RTE STgg, Pr a ACL. anig 3 consumer; y voluntary ‘consume; 7 fame being in force, NT ®0ciatign nf SS Central Governm, tered @ te "At OF any g ia the Central Authority; 7 State Goy, one OF MOTE CONStmers, the same interest; ” “here there (p incase of ath of ac ) in case of a consumer being a Tih Bal or i Nor, legal On’ php a Such distinction Le Patent oF leg eematve, tion | Sumer © otenta 2! Buardian. vut being dependent on g Particular year ang PO'eMtial fo ame is addressed, TM beiny Re pubic “Any eson oF entity falling within the caused pee in the chapter, can set the on; a 0 @ nsumer, hj (a) a trader oF servic, e provi i trade practice or a reste adopted an nts de Practica Sontract oF unfair (©) goods bought (or agreed to be Bought) by him (9) services hired or availed (greed to be hired sate ae ; o sulfer from any deficiency * availed) of by him (@) a trader or a se ‘vice provider, the goods or for th ; © services a (8) isplayed on the price list exhibited by him . law in force at the time; or by him by or under any (iv) agreed between the parties; ) the goods—which are hazardous to life and safety when used, are being offered for sale to the public— () in contravention of standards relatin, as required to be comp at the time; or (ii) Where the trader knows that the such goods are unsafe to the public; ; the services which are hazardous or likely to be Janene thie wd safety of the public when used, are being te ed by 0 pena, wo Provides any service and who knows it to be inj pian ion i inst the product @ claim for product liability action Lace sehr cape Manufacturer, product seller or product service p1 may be. i to safety of such goods lied with, by or under any law in force © scanned with OKEN Scanner weer TT ttt or Rights : 32 ou Soo) enumerates some consumer Fights, a8 given : rotected against the marketing of low, h are hazardous to life and propery” I, og about the quality, cain es rice of goods, products or service Potency tthe consumer against unfair trade the d Pe ty right to be assured, wherever possible, access to a y, © Pract thy « products or services at competitive prices; fatity of to be heard and to be assured that consumer’, Boog, ive due consideration at appropriate fora; _ e ai fair trade practi right to seek redressal against unt practice o} : (2) SF anscruplous exploitation ‘of consumer te tay (right to const It may be noted that thi nature and not exhaustive. 4, Goods, Servi It is apparent and deficiency are 2! 41. GoodsSection 2 (21) Under section 2 (21) of the pt " including food as define Standards Act, 2006 eSection 2(42) @) right inter ; rece wi mer awareness. definition of consumer rights is i inclusive jg ther Important Definitions oncepts of goods and services as of goes india, ot et ices and O' t that the t the core of cons Act, goods refer to "every kind of mo * 3 5 Nf xd in section 3(1)() of the Food Safety a 4.2 Servict 421 Overview As per the Act ‘service’ means "service of any description which is made available to potential users and includes, but not limited sic eee te " ee = ae cpanection with banking, financing, insurance, saat meee wely of elect e ‘other energy, telecom, boarding or Todging ot both hosing constuction etetainent ‘amusement or the purveying of news ot wn, but does not include the renderi f i charge of under a contract of personal service." a a 4 " 22 Howsig as a Service—Lucknow Development Authority considered ssigtiedainlg ne ‘Authority v. M.K. Gupt construction prior ve ‘of service and where the term included housing amendment to the 1986 7 Jnelusion of ‘housing construction’ vide the 1 What is the ct. This Court observed as follows: meaning of the word ‘service’? ... The term meanings. It may interest-or happiness, It benefit or any act resulting it PT domestic, legal, statuto Tt may be contractual, professional, publi ry ete. The concept of service thus i8 V7) { How it shoul Id be understood and what means depends in fe" v MK. Cipla a! the Cot has vase of 1994 SC. 797, © scanned with OKEN Scanner AM in which It has been used in they CT, 2019 : US pointed out earlier the en : actment, 3 is to include in it not onh day P'tPose P) ndertaken by a common man by y day ty iherwwise Nol commercial jn ny £ven to 6 which some benefit is conferred t jouse oF flat is for the benefit of por” © He may do it himself oF hye fervor jatter being, for consicley gorvice 1S defective oF iL is not unfait trade practice as define in ratvity would be denial of ossession of Property is not delive delay 80 caused is denial of seryier respect of immovable property a agp PU Or of service of particular standard, quali Ut deficienc omissions are defined in se ction AiG, ot StAde. Such, builder of a house uses. sub-eyei len it f comfort and serupe, fect in consul be ted withie ©, 4 Consum, Unfair trade pre” | rac F building or makes false op mie terial in, ome tte x : | condition of the house then it ic denis yf Seaton about te j which a consumer is entitled to the facility or claim value benefit of f contractor or builder undertakes to eet a Toa bd Aa When the | inherent in it that he shall perform his obligation as : lat then it is with a leaking roof, or cracking service. ~~A person who applies for allotment of a buildin constructed by the development authority or enter with a builder or a contractor is a potential transaction is covered in the expression “servic further indicates that the definition is not e clause succeeded in widenii 2 wall or sub-standard Peo dean of ig site or for a flat 's into an agreement user and nature of e of any description’. It xhaustive. The inclusive ing its scope but not exhausting the services which could be covered in earlier part. So any service except when it is free of charge or under a constraint of personal service & included in it. Since housing activity is a service it was covered in the clause as it stood before 1993. (Edited for Brevity and Emphasis Added) It also clarified that compensation for harassment and agony under the Act can be claimed even against public authorities, who have to be accountable _ for their behavior! The Court held that the Lucknow Development Authority “yas rendering a service under the Act. No immunity could have been cana _ aaorded to a public authority carrying out housing construction. given | al _f tot a sovereign function of the Sate). The Court observed that, such “tuthorties "acting in violation of constitutional or aan preies “Oppressively are accountable for their behavior before suthoe eT fe atu like the commission or the courts entrusted with resporscty “Maintaining the rule of law." It noted that the Bat crbitrary actions of fompensate for loss or injury suffered by a citizen Development State Authorities and. Recovery—Lcknow Devlopne '53 Compensation, Authority: v, MiK. Gupta. __—ld © scanned with OKEN Scanner LAW OF TORTS 534 ves, even for bon fide actions of authorities ¢ its employees, on val and international acceptance, "Yas ¢ law, had gained nation ! a 123 Heathcare—Indion Medical Association w U.P. Shaggy, « 4. The question before the Apex Court in the case of Ia herg Association v. VP. Shantha and others, ws where tg, ecial practitioners are or are not intended to be included ma m ice’ as defined under the Act. oo The Court held that such services would be included a within the purview of the 1986 Act ll itwas also noted that though iti within the discretion of the : to ask the complainant to approach the civil court in certain cases, rion also within the competence of the Consumer Fora to decide ‘matters is medical negligence invalving complicated question of facts and it cannot ie contended that such matters must compulsorily be directed towards civil eo The summary nature of proceedings before Consumer Cammy acknowledged, but at the same time, the Procedural safeguards built into te Fees of te Contes Poon eden anit alcmatively determined the competency of the Consumer Fora to deal with complicated questions of ite Holding that issues arising in such matters could be Speedily disposed of by the procedure followed by the Consumer Commissions, the Coa Observed that— ‘servi ~-Ithas been urged that proceedings involving negligence in the matter of rendering services by a medical practitioner would raise complicated questions requiring evidence of experts to be recorded and that the Procedure which is followed for determination of consumer disputes under the Act is summary in nature involving ‘rial on the bate st affidavits and is not suitable for determination of complicated questions. It is no doubt true that sometimes complicated questions requiring recording of evidence of experts may arise in a complaint about deficiency in ceric based on the ground of negligence in rendering medical services by « medical practitioner; but this would not be so in all complaints about deficiency in rendering services by a medical practitioner. There may be cases which do not raise such complicated questions and the deficiency in service may be due to obvious faults which can be costly established such as removal of the wrong limb or the performance of whe emation on the wrong patient or giving injection of a drug 0 which the patient is allergic without looking into the out-patient card containing the warning ... or use of wrong gas during the course of an omtsthetic or leaving inside the Patient swabs or other items a incident ,¢2P Men's after surgery. One often, seade about such cases can bg sre R®™SPApeTS. The issues arising in the complaints in i the Cora ey disposed of by the procedure that is being filet iy Complaints regards Redressal Agencies and there is no ey Mjudicnted be y's “eciency in service in. such eases should ‘Sencies under the Act... Section 3 : ; TRS gy Act which prescribes that the provisions of he A © scanned with OKEN Scanner

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