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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 ScannerChapter 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
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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 ScannerCONSUMER 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
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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 ScannerCONSUMER 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,
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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
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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,
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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 Scanneree 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,
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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
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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,
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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
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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
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