CONSUMER PROTECTION ACT, 1986

[Act No. 68 of Year 1986, dated 24th. December, 1986] 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 consumers' disputes and for matters connected of therewith Be it enacted by Parliament in the Thirty-seventh Year of the Republic of India as follows: CHAPTER I: PRELIMINARY 1. Short title, extent, commencement and applications (1) This Act may be called the Consumer Protection Act, 1986. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force on such date as the Central Government may, by notification, and different dates may be appointed for different States and for different provisions of this appoint Act. (4) Save as otherwise expressly provided by the Central Government by notifications, this Act apply to all goods and services. shall 2. Definitions (1) In this Act, unless the context otherwise requires,1[(a) " appropriate laboratory " means a laboratory or organisation(i) recognised by the Central Government; (ii) recognised by a State Government, subject to such guidelines as may be prescribed by the Central Government in this behalf; or (iii) any such laboratory or organisation established by or under any law for the time-being force, which is maintained, financed or aided by the Central Government or a State in Government out analysis or test of any goods with a view to determining whether such for carrying suffer from any goods defect; 2[(aa) " branch office " means(i) any establishment described as a branch by the opposite party, or (ii) any establishment carrying on either the same or substantially the same activity as that carried on by the head office of the establishment; (b) complainant " means" (i) a consumer; or (ii) any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956), under any other law for the time being in force; or or (iii) the Central Government or any State Government, 2[(iv) one or more consumers, where there are numerous consumers having the same interest;] who or which makes a complaint; (c) "complaint " means any allegation in writing made by a complainant that1[(i) an unfair trade practice or a restrictive trade practice has been adopted by any trader;] (ii) 1[the goods bought by him or agreed to be bought by him] suffer from one or more defect;

(iii) 1[the services hired or availed of or agreed to be hired or availed of by him] suffer from deficiency in any respect; (iv) a trader has charged for the goods mentioned in the complaint a price in excess of the fixed price by or under any law for the time being in force or displayed on the goods or any package containing such goods; 2[(v) goods which will be hazardous to life and safety when used, are being offered for sale to public in contravention of the provisions of any law for the time being in force requiring traders the to display information in regard to the contents, manner and effect of use of such goods. with a view to obtaining any relief provided by or under this Act; (d) " consumer " means any person who(i) buys any goods for a consideration which has been paid or promised or partly paid and promised, or under any system of deferred payment and includes any user of such goods partly other the person who buys such goods for consideration paid or promised or partly paid or than promised, or under any system of deferred payment when such use is made with the approval partly of person, but does not include a person who obtains such goods for resale or for such commercial purpose; or any (ii) 1[hires or avails of] any services for a consideration which has been paid or promised or partlyand partly promised, or under any system of deferred payment and includes any paid of such services other than the person who 1[hires or avails of] the services for consideration beneficiary paid or promised, or partly paid and partly promised, or under any system of deferred payments, such when services are availed of with the approval of the first-mentioned person; 2[Explanation : For the purposes of sub-clause (i), "commercial purpose" does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning livelihood, by means of selfhis employment;] (e) " consumer dispute " means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint; (f) "defect " means any fault, imperfection or shortcoming in the quality, quantity, potency, or standard purity is required to be maintained by or under any law for the time being in force which or 2[under any contract, express or] implied, or as is claimed by the trader in any whatsoever in relation to any manner goods; (g) " deficiency " means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the being time in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service; (h) District Forum " means a Consumer Disputes Redressal Forum established under clause of " section 9; (a) (i) "goods " means goods as defined in the Sale of Goods Act, 1930 (3 of 1930); (j) "manufacturer " means a person who(i) makes or manufactures any goods or parts thereof; or (ii) does not make or manufacture any goods but assembles parts thereof made or manufactured claims the end product to be goods manufactured by himself; by others and or (iii) puts or causes to be put his own mark on any goods made or manufactured by any manufacturer and claims such goods to be goods made or manufactured by other himself. Explanation : Where a manufacturer despatches any goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be the manufacturer even though

the parts so despatched to it are assembled at such branch office and are sold or distributed from such branch office. 2[(jj) "member " includes the President and a member of the National Commission or a Commission or State a District Forum, as the case may be;] (k) "National Commission " means the National Consumer Disputes Redressal Commission established under clause (c) of section 9; (l) "notification " means a notification published in the Official Gazette; (m) person " includes" (i) a firm whether registered or not; (ii) a Hindu undivided family; (iii) a co-operative society; (iv) every other association of persons whether registered under the Societies Registration 1860 Act, (22 of 1860) or not; (n) prescribed " means prescribed by rules made by the State Government, or as the case " by the Central Government under this may be, Act; 2[(nn) restrictive trade practice " means any trade practice which requires a consumer to hire or avail of any goods or, as the case may be, services as a condition precedent for " buy, buying, availing of other goods or services;] hiring or (o) " service " means service of any description which is made available to potential users includes the and provision of facilities in connection with banking, financing, insurance, transport, supply of electrical or other energy, board or lodging or both, 6[housing construction], processing, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service; (p) " State Commission " means a Consumer Disputes Redressal Commission established in State under clause (b) of a section 9; (q) " trader " in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof, and where such goods are sold or distributed in form, includes the packer thereof; package 2[(r) "unfair trade practice " means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or or deceptive practice including any of the following practices, namely,unfair (1) the practice of making any statement, whether orally or in writing or by visible representation which,(i) falsely represents that the goods are of a particular standard, quality, quantity, composition, style or model; grade, (ii) falsely represents that the services are of a particular standard, quality or grade; (iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods; (iv) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have; (v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;

(vi) makes a false or misleading representation concerning the need for, or the usefulness of, any or services; goods (vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life a of product or of any goods that is not based on an adequate or proper test thereof: PROVIDED that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person such defence; raising (viii) makes to the public a representation in a form that purports to be(i) a warranty or guarantee of a product or of any goods or services; or (ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue aervice until it has achieved a specified result, s if such purported warranty or guarantee or promise is materially misleading or if there is reasonable prospect that such warranty, guarantee or promise will be carried no out; (ix) materially misleads the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the market relevantunless it is clearly the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made; (x) gives false or misleading facts disparaging the goods, services or trade of another person. Explanation : For the purposes of clause (1), a statement that is(a) expressed on an article offered or displayed for sale, or on its wrapper or container; or (b) expressed on anything attached to, inserted in, or accompanying, an article offered displayed for sale, or on anything on which the article is mounted for display or sale; or or (c) contained in or on anything that is sold, sent, delivered, transmitted or in any other manner whatsoever made available to a member of the public, shall be deemed to be a statement made to the public by, and only by, the person who caused the statement to be so expressed, made or had contained; (2) permits the publication of any advertisement whether in any newspaper or otherwise, for the of supply at a bargain price, of goods or services that are not intended to be offered for sale sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having to the nature of the market in which the business is carried on, the nature and size regard business, and the nature of the of advertisement;. Explanation: For the purposes of clause (2), "bargaining price" means(a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinaryotherwise, or price or (b) a price that a person who reads, hears or sees the advertisement, would understand reasonably to be a bargain price having regard to the prices at which the product advertised or products are ordinarily sold; like (3) permits(a) the offering of gifts, prizes or other items with the intention of not providing them as offered creating impression that something is being given or offered free of charge when it is fully or or partly covered by the amount charged in the transaction as a whole;

(b) the conduct of any contest, lottery, games of chance or skill, for the purpose of promoting, indirectly, the sale, use or supply of any product or any business directly or interest; (4) permits the sale or supply of goods intended to be used, or are of a kind likely to be used, consumers, knowing or having reason to believe that the goods do not comply with the by standards by competent authority relating to performance, composition, contents, prescribed constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury design, to the person using the goods; (5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make available for sale or to provide any service, if such-hoarding or destruction or refusal raises or them tends to raise or is intended to raise, the cost of those or other similar goods or services. (2) Any reference in this Act to any other Act or provision thereof which is not in force in any to which this Act applies shall be construed to have a reference to the corresponding Act area or provision thereof in force in such area. 3. Act not in derogation of any other The law provisions of this Act shall be in addition to and not in derogation of the provisions of any law for the time being in other force. CHAPTER II: CONSUMER PROTECTION COUNCILS 4. The Central Consumer Protection Council (1) The Central Government may, by notification, establish with effect from such date as it specify in such notification, a council to be known as the Central Consumer Protection may Council (hereinafter referred to as the Central Council). (2) The Central Council shall consist of the following members, namely,(a) the Minister in charge of 1[consumer affairs] in the Central Government, who shall be Chairman, and its (b) such number of other official or non-official members representing such interests as may be prescribed. 5. Procedure for meetings of the Central Council (1) The Central Council shall meet as and when necessary, but 1[at least one meeting] of the council shall be held every year. (2) The Central Council shall meet at such time and place as the Chairman may think fit and observe such procedure in regard to the transaction of its business as may be shall prescribed. 6. Objects of the Central Council The objects of the Central Council shall be to promote and protect the rights of the such asconsumers (a) the right to be protected against the marketing of goods 2[and services] which are hazardous property; to life and (b) the right to be informed about the quality, quantity, potency, purity, standard and price goods 1[or services, as the case may be], so as to protect the consumer against unfair of trade practices; (c) the right to be assured, wherever possible, access to a variety of goods and services competitive prices; at (d) the right to be heard and to be assured that consumers' interests will receive due consideration at appropriate forums;

(e) the right to seek redressal against unfair trade practices 1[or restrictive trade practices] or unscrupulous exploitation of consumers; and (f) the right to consumer education. 7. The State Consumer Protection Councils (1) The State Government may, by notification, establish with effect from such date as it may specify in such notification, a council to be known as the Consumer Protection (hereinafter referred to as the State Council Council). 1[(2) The State Council shall consist of the following members, namely,(a) the Minister in-charge of consumer affairs in the State Government who shall be its Chairman; (b) such number of other official or non-official members representing such interests as may be prescribed by the State Government. (3) The State Council shall meet as and when necessary but not less than two meetings shall held be every year. (4) The State Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by State the Government. 8. Objects of the State Council The objects of every State Council shall be to promote and protect within the State the rights the of consumers laid down in clauses (a) to (f) of section 6. CHAPTER III: CONSUMER DISPUTES REDRESSAL AGENCIES 9. Establishment of Consumer Disputes Redressal Agencies There shall be established for the purposes of this Act, the following agencies, namely,(a) a Consumer Disputes Redressal Forum to be known as the "District Forum" established by State Government 3[* * *] in each district of the State by the notification: 2[PROVIDED that the State Government may, if it deems fit, establish more than one Forum in a District district; (b) a Consumer Disputes Redressal Commission to be known as the "State Commission" the State Government 3[* * *] in the State by notification; established by and (c) a National Consumer Disputes Redressal Commission established by the Central by Government notification. 10. Composition of the District Forum 1[(1) Each District Forum shall consist of(a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President; (b) two other members, who shall be persons of ability, integrity and standing, and have knowledge adequate or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of shall a whom be woman. 2[(1A) Every appointment under sub-section (1) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely,(i) the President of the State CommissionChairman, (ii) Secretary, Law Department of the StateMember,

(iii) Secretary in-charge of the Department dealing with consumer affairs in the StateMember. (2) Every member of the District Forum shall hold office for a term of five years or up to the age of years, whichever is earlier, and shall not be eligible for re65 appointment: PROVIDED that a member may resign his office in writing under his hand addressed to the Government and on such resignation being accepted, his office shall become vacant and may State be filled by the appointment of a person possessing any of the qualifications mentioned in section (1) in relation to the category of the member who has subresigned. (3) The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the District Forum shall be such as may be prescribed the State by Government. 11. Jurisdiction of the District Forum (1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to complaints entertain where the value of the goods or services and the compensation, if any, claimed exceed rupees five lakhs]. 1[does not (2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction(a) the opposite party or each of the opposite parties, where there are more than one, at the of the time institution of the complaint, actually and voluntarily resides or 1[carries on business, or has a branch office or] personally works for gain; or (b) any of the opposite parties, where there are more than one, at the time of the institution of complaint, actually and voluntarily resides, or 1[carries on business or has a branch office, the or personally works for gain: PROVIDED that in such case either the permission of the District Forum is given, or the parties who do not reside, or 1[carry on business or have a branch office, or personally work opposite for as the case may be, acquiesce in such institution; gain, or (c) the cause of action, wholly or in part, arises. 1[12. Manner in which complaint shall be A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any made service provided or agreed to be provided, may be filed with a District Forum, by(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided; (b) any recognised consumers association whether the consumer to whom the goods sold or delivered or service provided or agreed to be provided is a member of such association or not; or (c) one or more consumers, where there are numerous consumers having the same interest, the permission of the District Forum, on behalf of, or for the benefit of, all consumers with so interested; or (d) the Central or the State Government. 13. Procedure on receipt of complaint (1) The District Forum shall, on receipt of a complaint, if it relates to any goods(a) refer a copy of the complaint to the opposite party mentioned in the complaint directing him to his version of the case within a period of thirty days or such extended period not give fifteen days as may be granted by the District exceeding Forum; (b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action represent his case within the time given by the District Forum, the District Forum shall proceed to to settle the consumer dispute in the manner specified in clauses (c) to (g);

(c) where the complaint alleges a defect in the goods which cannot be determined without proper or test of the goods, the District Forum shall obtain a sample of the goods from analysis complainant, seal it and authenticate it in the manner prescribed and refer the sample so the sealedappropriate laboratory along with a direction that such laboratory make an analysis with to the v a iew to finding out whether such goods suffer from any defect alleged in the complaint or sufferany other defect and to report its findings thereon to the District Forum within a period from forty-five days of the receipt of the reference or within such extended period as may be of granted by the District Forum; (d) before any sample of the goods is referred to any appropriate laboratory under clause (c), District Forum may require the complainant to deposit to the credit of the Forum such fees the as be specified, for payment to the appropriate laboratory for carrying out the may analysis or test in relation to the goods in necessary question; (e) the District Forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of on the report along with such remarks as the District Forum may feel appropriate to the opposite party; (f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, disputes the correctness of the methods of analysis or test adopted by the appropriate or laboratory, Forum shall require the opposite party or the complainant to submit in writing the District objections in regard to the report made by the appropriate his laboratory; (g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as opposite party of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the objection made in relation thereto under clause (f) the and an appropriate order under section 14. issue (2) The District Forum shall, if the complaint received by it under section 12 relates to goods respect of which the procedure specified in sub-section (1) cannot be followed, or if the in complaintany services,relates to (a) refer a copy of such complaint to the opposite party directing him to give his version of case the within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b) where the opposite party, on receipt of a copy of the complaint, referred to him under (a) denies or disputes the allegations contained in the complaint, or omits or fails to take clause any to represent his case within the time given by the District Forum, the District Forum action proceed to settle the consumer shall dispute,(i) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegation contained in the complaint, or (ii) on the basis of evidence brought to its notice by the complainant where the opposite omits party or fails to take any action to represent his case within the time given by the Forum. (3) No proceedings complying with the procedure laid down in sub-sections (1) and (2) shall be called in question in any court on the ground that the principles of natural justice have not complied with. been (4) For the purposes of this section, the District Forum shall have the same powers as are vested court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect in a civil the following matters, of namely,(i) the summoning and enforcing attendance of any defendant or witness and examining the witness on oath; (ii) the discovery and production of any document or other material object producible as evidence;

(iii) the reception of evidence on affidavits; (iv) the requisitioning of the report of the concerned analysis or test from the appropriate or from any other relevant laboratory source; (v) issuing of any commission for the examination of any witness; and (vi) any other matter which may be prescribed. (5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860), and the within Districtshall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI Forum the of Code of Criminal Procedure, 1973 (2 of 1974). 2[(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub- (1) of section 2, the provisions of Rule 8 of Order I of Schedule I to the Code of section Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference therein Civil to suit or decree shall be construed as a reference to a complaint or the order of the District a thereon.] Forum 14. Finding of the District Forum (1) If, after the proceeding conducted under section 13, the District Forum is satisfied that goods the complained against suffer from any of the defects specified in the complaint or that any of allegations contained in the complaint about the services are proved, it shall issue an order the the to opposite party directing him to 1[do] one or more of the following things, namely,(a) to remove the defect pointed out by the appropriate laboratory from the goods in question; (b) to replace the goods with new goods of similar description which shall be free from any defect; (c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant ; (d) to pay such amount as may be awarded by it as compensation to the consumer for any loss injury suffered by the consumer due to the negligence of the opposite or party. 2[(e) to remove the defects or deficiencies in the services in question; (f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them; (g) not to offer the hazardous goods for sale; (h) to withdraw the hazardous goods from being offered for sale; (i) to provide for adequate costs to parties.] 4[(2) Every proceeding referred to in sub-section (1) shall be conducted by the President of the District Forum and at least one member thereof sitting together: PROVIDED that where the member, for any reason, is unable to conduct the proceeding till it completed, the President and the other member shall conduct such proceeding de is novo: (2A) Every order made by the District Forum under sub-section (1) shall be signed by its President and the member or members who conducted the proceedings: PROVIDED that where the proceeding is conducted by the President and one member and differ they on any point or points, they shall state the point or points on which they differ and refer the to the other member for hearing on such point or points and the opinion of the majority same be shallthe order of the District Forum. (3) Subject to the foregoing provisions, the procedure relating to the conduct of the members of District Forum, its sittings and other matters shall be such as may be prescribed by the the Government State .

15. Appeal Any person aggrieved by an order made by the District Forum may prefer an appeal against order such to the State Commission within a period of thirty days from the date of the order, in such and manner as may be form prescribed: PROVIDED that the State Commission may entertain an appeal after the expiry of the said of thirty period days if it is satisfied that there was sufficient cause for not finding it within that period. 16. Composition of the State Commission (1) Each State Commission shall consist of(a) a person who is or has been a Judge of a High Court, appointed by the State who shall be its Government, President: 2[PROVIDED that no appointment under this clause shall be made except after consultation with Chief Justice of the High the Court. (b) two other members, who shall be persons of ability, integrity and standing and have knowledge adequate or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of shall a whom be woman: 2[PROVIDED that every appointment under this clause shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely,(i) President of the State CommissionChairman, (ii) Secretary of the Law Department of the StateMember (iii) Secretary in-charge of the department dealing with consumer affairs in the StateMember.] (2) The salary or honorarium and other allowances payable to, and. the other terms conditions of service 3[* * *] of the members of the State Commission shall be such as may and be prescribed by the State Government. 2[(3) Every member of the State Commission shall hold office for a term of five years or up to age the of sixty-seven years, whichever is earlier and shall not be eligible for reappointment. (4) Notwithstanding anything contained in sub-section (3), a person appointed as a President or a member before the commencement of the Consumer Protection (Amendment) Act, as shall 1993, continue to hold such office as President or member, as the case may be, till the completion of his term. 17. Jurisdiction of the State Commission Subject to the other provisions of this Act, the State Commission shall have jurisdiction(a) to entertain(i) complaints where the value of the goods or services and compensation, if any, claimed rupees 1[five lakhs but does not exceed rupees twenty lakhs;] exceeds and (ii) appeals against the orders of any District Forum within the State; and (b) to call for the records and pass appropriate orders in any consumer dispute which is before or pending has been decided by any District Forum within the State where it appears to the State Commission that such District Forum has exercised a jurisdiction not vested in it by law, or failed has to exercise a jurisdiction so vested or has acted in exercise on its jurisdiction illegally or with material irregularity. 18. Procedure applicable to State Commission 1[The provisions of sections 12, 13 and 14 and the rules made thereunder] for the disposal of

complaint by the Districts Forum shall, with such modification as may be necessary, be applicabledisposal of disputes by the State to the Commission: 5[18A. Vacancy in the office of the When the President office of the President of the District Forum or of the State Commission, as the case be, is vacant or when any such President is, by reason of absence or otherwise, unable may perform the duties of his office, the duties of the office shall be performed by such person, who to is qualified to be appointed as President of the District Forum or, as the case may be, of the Commission, as the State Government may appoint for the State purpose.] 19. Appeals Any person aggrieved by an order made by the State Commission in exercise of its conferred powers by sub-clause (i) of clause (a) of section 17 may prefer an appeal against such order to National Commission within a period of thirty days from the date of the order in such form the manner as may be and prescribed: PROVIDED that the National Commission may entertain an appeal after the expiry of the said of thirty days if it is satisfied that there was sufficient cause for not filing it within period period. that CHAPTER AGENCIES III: CONSUMER DISPUTES REDRESSAL

20. Composition of the National Commission (1) The National Commission shall consist of(a) a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President: 2[PROVIDED that no appointment under this clause shall be made except after consultation the with Chief Justice of India;] (b) four other members who shall be persons of ability, integrity and standing and have adequate or experience of, or have shown capacity in dealing with, problems relating knowledge economics, law, commerce, accountancy, industry, public affairs or administration, one of to whom be shall a woman: 2[PROVIDED that every appointment under this clause shall be made by the Central on the recommendation of a selection committee consisting of the following, Government namely,(a) a person who is a Judge of the Supreme Court, to be nominated by the Chief Justice of IndiaChairman, (b) the Secretary in the Department of Legal Affairs in the Government of IndiaMember.] (2) The salary or honorarium and other allowances payable to and the other terms and of service 3[* * *] of the members of the National Commission shall be such as may be conditions prescribed by the Central Government. 2[(3) Every member of the National Commission shall hold office for a term of five years or up the to age of seventy years, whichever is earlier and shall not be eligible for reappointment. (4) Notwithstanding anything contained in sub-section (3), a person appointed as a President or a member before the commencement of the Consumer Protection (Amendment) Act, as shall 1993, continue to hold such office as President or member, as the case may be, till the completion of his term.] 21. Jurisdiction of the National Commission Subject to the other provisions of this Act, the National Commission shall have jurisdiction(a) to entertain-

(i) complaints where the value of the goods or services and cornpensation, if any, claimed rupees 1[twenty lakhs]; exceeds and (ii) appeals against the orders of any State Commission; and (b) to call for the records and pass appropriate orders in any consumer dispute which is before pendingor has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, has failed to exercise a jurisdiction so vested, or has acted in the exercise of its or jurisdiction or illegally with material irregularity. 22. Power of and procedure applicable to the National Commission The National Commission shall, in the disposal of any complaints or of any proceedings before it, have (a) the powers of a civil court as specified in sub-sections (4), (5) and (6) of section 13; (b) the power to issue an order to the opposite party directing him to do any one or more of things referred to in clauses (a) to (i) of sub-section (1) of section the 14, and follow such procedure as may be prescribed by the Central Government. 23. Appeal Any person, aggrieved by an order made by the National Commission in exercise of its conferred powers by sub-clause (i) of clause (a) of section 21, may prefer an appeal against such order to Supreme Court within a period of thirty days from the date of the the order: PROVIDED that the Supreme Court may entertain an appeal after the expiry of the said period thirty days if it is satisfied that there was sufficient cause for not filing it within that of period. 24. Finality of order order of a District Forum, State Commission or the National Commission shall, if no Every has been appeal preferred against such order under the provisions of this Act, be final. 2[24A. Limitation period District Forum, the State Commission or the National Commission shall not admit (1) The c aomplaint unless it is filed within two years from the date on which the cause of action has arisen. (2) Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the period specified in sub-section (1), if the complainant satisfies the District Forum, the Commission or the National Commission, as the case may be, that he had sufficient cause for State not filing the complaint within such period: PROVIDED that no such complaint shall be entertained unless the National Commission, State the Commission or the District Forum, as the case may be, records its reasons for condoning such delay. 24B. Administrative (1) The control National Commission shall have administrative control over all the State Commissions in the following matters, namely,(i) calling for periodical returns regarding the institution, disposal, pendency of cases; (ii) issuance of instructions regarding adoption of uniform procedure in the hearing of prior service of copies of documents produced by one party to the opposite parties, furnishing matters, of English translation of judgments written in any language, speedy grant of copies of documents; (iii) generally overseeing the functioning of the State Commissions or the District Fora to that the ensure objects and purposes of the Act are best served without in any way interfering with their quasi-judicial freedom.

(2) The State Commission shall have administrative controls over all the District Fora within its jurisdiction in all matters referred to in sub-section (1).] 25. Enforcement of orders by the Forum, the State Commission or the National Commission Every order made by the District Forum, the State Commission or the National Commission, be enforced by the District Forum, the State Commission or the National Commission as the may case be, in the same manner as if it were a decree or order made by a court in a suit may therein pendingand it shall be lawful for the District Forum, the State Commission or the National Commission to send, in the event of its inability to execute it, such order to the court within local the limits of whose jurisdiction(a) in the case of an order against a company, the registered office of the company is situated, or (b) in the case of an order against any other person, the place where the person concerned resides or carries on business or personally works for gain, is situated, and thereupon, voluntarily the court to which the order is so sent, shall execute the order as if it were a decree or order sent to it for execution. 1[26. Dismissal of frivolous or vexatious complaints Where a complaint instituted before the District Forum, the State Commission or, as the case be, the National Commission, is found to be frivolous or vexatious, it shall, for reasons to may recorded in writing, dismiss the complaint and make an order that the complainant shall pay be to opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order. the 27. Penalties Where a trader or a person against whom a complaint is made 2[or the complainant] fails or to comply with any order made by the District Forum, the State Cornmission or the omits National Commission, as the case may be, such trader or person 2[or complainant] shall be with imprisonment for a term which shall not be less than one month but which may punishable extend to or with fine which shall not be less than two thousand rupees but which may three years, to ten extend thousand rupees, or with both: PROVIDED that the District Forum, the State Commission or the National Commission, as the may be, may, if it is satisfied that the circumstances of any case so require, impose case s aentence of imprisonment or fine, or both, for a term lesser than minimum term and the amountthan the minimum amount, specified in this lesser section. CHAPTER MISCELLANEOUS IV:

28. Protection of action taken in good faith No suit, prosecution or other legal proceedings shall lie against the members of the District the State Commissions or the National Commission or any officer or person acting Forum, the direction of the District Forum, the State Commission or the National Commission under for executing any order made by it or in respect of anything which is in good faith done or intended be to done by such member, officer or person under this Act or under any rule or order made thereunder . 29. Power to remove difficulties (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government in the Official Gazette, make such provisions not inconsistent with the provisions may, by order this of Act as appear to it to be necessary or expedient for removing the difficulty: PROVIDED that no such order shall be made after the expiry of a period of two years from the commencement of this Act.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 5[29A. Vacancies or defects in appointment not to invalidate No act orders or proceeding of the Districts Forum, the State Commission or the National Commission shall be invalid by reason only of the existence of any vacancy amongst its members or defect in the constitution any thereof.] 30. Power to make rules (1) The Central Government may, by notification, make rules for carrying out the contained provisionsin 2[clause (a) of sub-section (1) of section 2], clause (b) of sub-section (2) of section 4, sub-section (2) of section 5, clause (vi) of sub-section (4) of section 13, section 19, sub(2) of section section 20 and section 22 of this Act. (2) The State Government may, by notification, make rules for carrying out the provisionsin 2[clause (b) of sub-section (2) and sub-section (4) of section 7], sub-section (3) contained section 10, clause (c) of sub-section (1) of section 13, sub-section (3) of section 14, section of 15 sub-section (2) of section and 16. 31. Laying of (1) Every rule made by the Central Government under this Act shall be laid, as soon as may rules be it is made, before each House of Parliament, while it is in session, for a total period of after days thirtywhich may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive aforesaid, sessions both Houses agree in making any modification in the rule or both Houses agree thatrule should not be made, the rule shall thereafter have effect only in such modified form or the of be no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (2) Every rule made by a State Government under this Act shall be laid as soon as may be is made, before the State after it Legislature. Foot Notes 1 Substituted by Act No. 50 of 1993, w.e.f. 18th. June, 1993. 2 Inserted by Act No. 50 of 1993, w.e.f. 18th. June, 1993. 3 Omitted by Act No. 50 of 1993, w.e.f. 18th. June, 1993. 4 Substituted by Act No. 34 of 1991, w.e.f. 15th. June, 1991. 5 Inserted by Act No. 34 of 1991, w.e.f. 15th. June, 1991.