Trade Practices (MRTP) Act by which the Monopolies Commission was set
up and given powers to entertain complaints regarding monopolistic and
restrictive trade practices, and later unfair trade practices by the
Amendment Act in 1984. However, it was felt that the powers given to
the MRTP Commission were not sufficient to directly protect consumers
as it was mainly intended to regulate competition in the hope that it
would generate fair conduct, the effects of which would ultimately
percolate to consumers. There, the Consumer Protection Act, 1986 was
enacted to provide for better protection of interests of the
consumers. It received the assent of the President on 24th of December
1986. Under this Act, a three of goods which suffer from defects,
deficiency in respect of services hired including medical services has
been provided:
i. District level fora: These fora are established by the respective
state governments with the approval of the central government in each
district of the state
ii. State Commissions: State Commissions are established by the state
governments with the prior approval of the central government in each
state:
iii. National Commissions: The National Consumer Disputes Redressal
Commission has been established by the central government for the
whole of India, and it is located at New Delhi.
The District Commission's jurisdiction is confined to entertaining
all consumer complaints where the value of the goods or services and
the compensation, if any claimed, is less than Rs 20,00,000 (twenty
lakhs).
The State Commission entertains complaints where the value of
the goods or services and compensation, if any claimed, exceeds Rs
20,00,000 ( twenty lakhs) but does not exceed Rs 1,00,00,000 (one
crore); it also hears appeals against the orders of any district
within the state. It also has the power of revision. Additionally, it
can call for the records and pass appropriate order in any consumer
dispute which is pending before it or has been decided by any District
Forum within the state and where it appears to the state commission
that the District Forum has exercised jurisdiction not vested in it by
law, or has failed to exercise jurisdiction so vested or has acted in
exercise or its jurisdiction, illegally or with material irregularity.
The National Commission also has original jurisdiction to entertain
complaints where the value of the goods or services and compensation
claimed exceeds Rs 1,00,00,000 (one crore). It has the power to hear
appeals by any person aggrieved by the order of the state commission
and it has also revisional powers.
Appeals from the National Commission is provided direct to
the Supreme Court under Section 23 of the Act. This should be filed
within 30 days of the date of the order. In order to reduce frivolous
appeals, Appeals against the order of the District Forum can be filed
before State Commission only if Appellant deposits 50% of the amount
or Rs. 25,000/- whichever is less. Similarly appeal against the order
of state commission can be filed before National Commission only if
Appellant deposits 50% of the amount or Rs 35,000/- whichever is less.
Appeal against the order of the National Commission can be filed
before the Supreme Court only if Appellant deposits 50% of the awarded
amount or Rs 50,000/- whichever is the less. In order to expedite the
hearing of the appeal, Section 19A provides that appeals filed before
the state commission or the National Commission should be heard as
expeditiously as possible and, endeavor should be made to finally
dispose of the appeal.
The consumer fora give valuable service to consumers.
Complaints against defective services can be filed, as also
complaints against governments, public undertakings, banks,
electricity boards, housing boards, the Life Insurance Corporation,
builders, manufacturers and private undertakings, etc. To some extent,
the jurisdiction of the Monopolies Commission and the consumer fora
overlaps but the main advantages of consumer fora are that redress is
available all over India whereas the Monopolies Commission is
situated only in Delhi. The Consumer forum is, however, a powerful and
an important forum if properly used and administered. It is not bound
by cumbersome rules of evidence and civil procedure. It id speedy and
little expensive remedy as court fee is required to be paid. Any
individual or any recognised consumer association cal also approach
the forum on behalf of the consumer in general.
In the recent years the commission has delivered decisions on very
important and varied matters which have proved a boon to ordinary
persons such as consumers of products, railway and air travellers,
telephone subscribers, electricity users, insured persons, purchasers
of various goods, users of vehicles and those who hire consumer
services, etc.
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