The Consumer Protection Act, 1986
(No. 68 of 1986)
Published in the Gazette of India, Extraordinary, Pt.II, Sec. 1, dated 26th December 1986.

An Act to provide for the protection of the interests of consumers and for that purpose to make provisions for the establishment of Consumer Councils and other authorities for the settlement of consumers disputes and for matters connected therewith.

BE it enacted by Parliament in the Thirty-seventh Year of the Republic of India as follows:
Statement of Objects and Reasons of the Act.-

1. The Consumer Protection Bill, 1986, seeks to provide for better protection of the interests of consumers and for the purpose, to make provision for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes and for matters connected therewith.
2. It seeks, inter alia, to promote and protect the rights of consumers such as-

1. the right to be protected against marketing of goods which are hazardous to life and property;
2. the right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices;
3. the right to be assured, wherever possible, access to an authority of goods at competitive price;
4. the right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums;
5. the right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and
6. right to consumer education.

3. These objects are sought to be promoted and protected by the Consumer Protection Council to be established at the Central and State level.
4. To provide speedy and simple redressal to consumer disputes, a quasi judicial machinery is sought to be set up at the District, State and Central levels. These quasi-judicial bodies will observe the principles of natural justice and have been empowered to give relief's of a specific nature and to award wherever appropriate, compensation to consumer. Penalties for non-compliance of the order given by the quasi judicial bodies have also been provided.

CHAPTER 1

Preliminary

1. Short title, extent, commencement and application.- (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 appoint and different dates may be appointed for different States and for different provisions of this Act.
4. Save as otherwise expressly provided by the Central Government by notification , this Act shall apply to all goods and services.

2. Definitions.-

(1) In this Act, unless the context otherwise requires,-

(a) ""appropriate laboratory" means a laboratory or organization-

1. recognized by the Central Government;
2. recognized by a State Government, subject to such guidance as may be prescribed by the Central Government in this behalf; or
3. any such laboratory or organization established by or under any law for the time being in force which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect;

(aa) " branch office" means-

1. any establishment described as a branch by the opposite party; or
2. any establishment carrying on the same or substantially the same activity as that carried on by the head office of the establishment;

(b) "complainant" means-

1. a consumer; or
2. any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956), or under any other law for the time being in force; or
3. the Central Government or any State Government, who or which makes a complaint;
4. one or more consumers, where there are numerous consumers having the same interest;

(c) "complaint" means any allegation in writing made by a complainant that-

1. an unfair trade practice or a restrictive trade practice has been adopted by any trader;
2. the goods bought by him or agreed to be bought by him suffer from one or more defects;
3. the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect;
4. a trader has charged for the goods mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force or displayed on the goods or any package containing such goods, with a view to obtaining any relief provided by or under this Act;
5. goods which will be hazardous to life and safety when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force requiring traders to display information in regard to the contents, manner and effect of use of such goods.

(d) "consumer" means any person who,-

1. buys any goods for a consideration which has been paid or 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 or partly paid and 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 or for any commercial purpose; or
2. hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person.

Explanation.- For the purposes of sub-clause (i) "commercial purpose" does not include any use by the consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self employment;

5. "consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegation contained in the complaint;
6. "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or as is claimed by the trader in any manner whatsoever in relation to any goods;
7. "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 time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service;
8. "District Forum" means a Consumer Disputes Redressal Forum established under Cl. (a) of Sec. 9;
9. "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930);
10. "manufacturer" means a person who-

1. makes or manufactures any goods or parts thereof; or
2. does not make or manufacture any goods but assembles parts thereof made or manufactured by others and claims the end-product to be goods manufactured by himself; or
3. puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer and claims such goods to be goods made or manufactured by himself.

Explanation.- Where a manufacturer dispatches any goods or parts thereof to any branch office maintained by him, such branch office shall not be deemed to be the manufacturer even though the parts so dispatched to it are assembled at such branch office and are sold or distributed from such branch office;

(jj) "member" includes the President and a member of the National Commission, the State Commission or a District Forum, as the case may be;

11. "National Commission" means the National Consumer Disputes Redressal Commission established under Cl. (c) of Sec.9;
12. "notification" means a notification published in the official Gazette;
13. "person" includes,-

1. a firm whether registered or not;
2. A Hindu undivided family;
3. A Co-operative society;
4. every other association of persons whether registered under the Societies Registration Act, 1890 (21 of 1860), or not;

(n) "prescribed" means prescribed by rules made by the State Government, or as the case may be, the Central Government under this Act;

(nn) "restrictive trade practice" means any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as a condition precedent for buying, hiring or availing of any other goods or services;

15. "service" means service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, housing construction, supply of electrical or other energy, board or lodging or both, 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;
16. "State Commission" means a Consumer Disputes Redressal Commission established in a State under Cl. (b) of Sec. 9;
17. "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 package form, includes the packer thereof;
18. "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 unfair or deceptive practice including any of the following practices, namely:-

(1) The practice of making any statement, whether orally or in writing or by visible representation which.

1. falsely represents that the goods are of a particular standard, quality, quantity, grade composition, style or model;
2. falsely represents that the services are of a particular standard, quality or grade;
3. falsely represents any rebuilt, second-hand, renovated, reconditioned or old goods as new goods;
4. represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have;
5. represents that the seller or supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;
6. makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;
7. gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof;
   Provided that where a defense is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defense shall lie on the person raising such defense;
8. makes to the public a representation in a form that purports to be-

1. a warranty or guarantee of a product or of any goods or services; or
2. a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result, if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out;

9. 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 relevant market unless it is clearly specified to be 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;
10. gives false or misleading facts disparaging the goods, services or trade of another person.

Explanation- For the purpose of clause (1), a statement that is-

1. expressed on an article offered or displayed for sale, or on its wrapper or container; or
2. expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale; or
3. 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 had caused the statement to be so expressed, made or contained;

(2) permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of advertisement.

Explanation.- For the purpose of clause (2), "bargain price" means-

1. a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or
2. a price that a person who reads, hears or sees the advertisement, would reasonably understand to be bargain price having regard to the prices at which the product advertised or like products are ordinarily sold;

(3) permits-

1. the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole;
2. the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest;

(4) permits the sale or supply of goods intended to be used, or are a kind likely to be used, by consumers knowing or having reason to believe that the goods do not comply with the standards prescribed by competent authority, relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods;

(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or 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 area to which this Act applies shall be construed to have a reference to the corresponding Act or provision thereof in force in such areas.

3. Act not in derogation of any other law.- The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in 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 may specify in such notification a Council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council).

(2) The Central Council shall consist of the following members, namely-

1. the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and
2. such number of other official or non-official members representing such interest as may be prescribed.

5. Procedure for meetings of the Central Council.- (1) The Central Council shall meet as and when necessary, 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 shall observe such procedure in regard to the transaction of its business as may be prescribed.

6. Objects of the Central Council.- The object of the Central Council shall be to promote and protect the rights of the consumers, such as,-

1. the right to be protected against marketing of goods and services which are hazardous to life and property;
2. the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices;
3. the right to be assured, wherever possible, access to a variety of goods and services at competitive prices;
4. the right to be heard and to be assured that consumers interest will receive due consideration at appropriate forums;
5. the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; and
6. 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 Council for --------(hereinafter referred to as the State Council).

(2) The State Council shall consist of the following members, namely:-

1. The Minister in charge of consumer affairs in the State Government who shall be its Chairman;
2. 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 be held 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 the State Government.

8. Object of the State Council.- The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in Cls. (a) to (f) of Sec. 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:

1. a Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government in each district of the State by notification;
   Provided that the State Government may, if it deems fit, establish more than one District Forum in a district.
2. a Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government in the State by notification; and
3. a National Consumer Redressal Commission established by the Central Government by notification

10. Composition of the District Forum.- (1) Each District Forum shall consist of-

1. a person who is or has been or is qualified to be a District Judge, who shall be its President;
2. two other members shall be persons of ability, integrity and standing, and have adequate knowledge and experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman.

(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:-

1. the President of the State Commission- Chairman.
2. Secretary, Law Department of the State-Member.
3. Secretary in charge of the Department dealing with consumer affairs in the State-Member.

(2) Every member of the District Forum shall hold office for a term of five years or up to the age of 65 years, whichever is earlier, and shall not be eligible for re appointment:
Provided that a member may resign his office in writing under his hand addressed to the State Government and on such resignation being accepted, his office shall become vacant and may be filled by the appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who has resigned.

(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 by the State Government.

11. Jurisdiction of the District Forum.- (1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees five lakhs.

(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction.-

1. the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain, or
2. any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain. Provided that in each such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office or personally work for gain, as the case may be, acquiesce in such situation; or
3. the cause of action, wholly or in part, arises.

12. Manner in which complaint shall be made.- A complaint, in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with the District Forum by-

1. 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;
2. any recognized consumer association, whether the consumer to whom the goods are sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not;
3. one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers is interested; or
4. the Central or State Government.

Explanation.- For the purpose of this section "recognized consumer association" means any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force.

13. Procedure on receipt of complaint.- (1) The District Forum shall, on receipt of a complaint, if it relates to any goods,-

1. refer a copy of the complaint to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum;
2. 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 to represent his case within the time given by the District Forum, The District Forum shall proceed to settle the consumer dispute in the manner specified in clauses (c) to (g);
3. where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, the District Forum shall obtain a sample of goods from the complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test , whichever may be necessary , with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its finding thereon to the District Forum within a period of forty five days of the receipt of the reference or within such extended period as may be granted by the District Forum;
4. before any sample of the goods is referred to any appropriate laboratory under clause (c) , the District Forum may require the complainant to deposit to the credit of the Forum such fees as may be specified, for the payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question;
5. 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 on receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks as the District Forum may feel appropriate to the opposite party;
6. if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, the District Forum shall require the opposite party or complainant to submit in writing his objections in regard to the report made by the appropriate laboratory;
7. the District Forum shall, thereafter, give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the objections made in relation thereto under clause (f) and issue an appropriate order under section 14.

(2) the District Forum shall, if the complaint received by it under Section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services:-

1. refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum;
2. where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegation contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum shall proceed to settle the consumer dispute.-

1. on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint, or
2. on the basis of evidence brought to its notice by the complainant where the opposite party omits 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 into question in any court on the ground that the principles of natural justice have not been complied with.

(4) For the purpose of this section, the District Forum shall have the same powers as are vested in a Civil Court under Code of Civil procedure, 1908 while trying a suit in respect of the following matters namely:-

1. the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath;
2. the discovery and production of any document or other material object producible as evidence;
3. the reception of evidence on affidavits;
4. the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source;
5. issuing of any commission for the examination of any witness; and
6. any other matter which may be prescribed.

(5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 288 of the Indian Penal Code, and the District Forum shall be deemed to be a Civil Court for the purpose of Section 195, and Chapter XXVI of the Code of Criminal Procedure, 1973.

(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of section 2, the provisions of Rule 8 of Order 1 of the First Schedule to the Code of Civil Procedure, 1908, shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the District Forum thereon.

14. Finding of the District Forum.- (1) If, after the proceeding conducted under Section 13, the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things, namely:-

1. to remove the defect pointed out by the appropriate laboratory from the goods in question;
2. to replace the goods with new goods of similar description which shall be free from any defect;
3. )to return to the complainant the price, or, as the case may be, the charges paid by the complainant;
4. to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party;
5. to remove the defects or deficiencies in the services in question;
6. to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;
7. not to offer the hazardous goods for sale;
8. to withdraw the hazardous goods from being offered for sale;
9. to provide for adequate costs to parties.

(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 is completed, the President and the other member shall conduct proceeding de 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 proceeding:

Provided that where the proceeding is conducted by the President and one member and they differ on any point or points, they shall state the point or points on which they differ and refer the same to the other member for hearing on such point or points and the opinion of the majority shall be the order of the District Forum.

(3) Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the District Forum, its sittings and other matters shall be such as may be prescribed by the State Government.

15. Appeal.- Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed:
Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

16.- Composition of the State Commission.- (1) Each State Commission shall consist of-

1. a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President:
   Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;
2. two other members, who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman;
   Provided that every appointment made under this clause shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely _

1. President of the State Commission-Chairman
2. Secretary of the Law Department of the State-Member
3. Secretary, in charge of Department dealing with consumer affairs in the State-Member.

2. The salary or honorarium and other allowances payable to, and the other terms and conditions of service of, the members of the State Commission shall be such as may be prescribed by the State Government.
3. Every member of the State Commission shall hold Office for a term of five years or up to the age of sixty seven years , which ever is earlier and shall not be eligible for reappointment.
4. Notwithstanding anything contained in sub-section (3), a person appointed as President or a member before the commencement of the Consumer Protection (Amendment) Ordinance, 1993, shall continue to hold office as President or member, as the case may be, till 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-

1. complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees five lakhs but does not exceed rupees twenty lakhs; and
2. 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 pending before or 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 has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity.

18. Procedure applicable to State Commission.- The provisions of Section 12, 13, 14 and the rules made thereunder for the disposal of complaints by the District Forum shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the State Commission.

18A. Vacancy in the office of the President.- When the Office of the President of the District Forum or of the State Commission, as the case may be, is vacant or when any such President is, by reason of absence or otherwise, unable to perform the duties of his office, the duties of the office shall be performed by such person, who is qualified to be appointed as the President of the District Forum or, as the case may be, of the State Commission, as the State Government may appoint for the purpose.

19. Appeals.- Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by sub-clause (i) of clause (a) of Section 17 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed;
Provided that the National Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not finding it within that period.

20. Composition of the National Commission.- (1) The National Commission shall consist of-

1. 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;
   Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India;
2. four other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with problems relating to economics, law , commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman;

Provided that every appointment under this clause shall be made by the Central Government on the recommendation of a selection committee consisting of the following, namely:-

1. a person who is a Judge of the Supreme Court, to be nominated by the Chief Justice of India-Chairman.
2. the Secretary in the Department of Legal Affairs in the Government of India-Member.
3. Secretary of the Department dealing with consumer affairs in the Government of India-Member.

2. The salary or honorarium and other allowances payable to and the other terms and conditions of service of the members of the National Commission shall be such as may be prescribed by the Central Government.
3. Every member of the National Commission shall hold office for a term of five years or up to the 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 as a member before the commencement of the Consumer Protection (Amendment) Ordinance, 1993, shall continue to hold 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-

1. complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs; and
2. 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 pending before or 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, or has failed to exercise jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.

22. Power of and procedure applicable to the National Commission.- The National Commission shall, in the disposal of any complaints or any proceedings before it, have-

1. the powers of a Civil Court as specified in Sub-sections (4), (5) and (6) of Section 13;
2. the power to issue an order to the opposite party directing him to do any one or more of the things referred to in clause (a) to (i) of Sub-section (1) of Section 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 powers conferred by sub-clause (i) of clause (a) of Section 21, may prefer an appeal against such order to the Supreme Court within a period of thirty days from the date of the order;
Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

24. Finality of orders.- Every order of a District Forum, the State Commission or the National Commission shall, if no appeal has been preferred against such order under the provisions of this Act, be final.

24A. Limitation period.- (1) The District Forum, the State Commission or the National Commission shall not admit a complaint 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 State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period;
Provided that no such complaint shall be entertained unless the District Forum, the State Commission or the National Commission, as the case may be, records its reasons for condoning such delay.

24B. Administrative control.- (1) The National Commission shall have administrative control over all State Commissions in the following matters, namely:-

1. calling for periodical return regarding the institution, disposal and pendency of cases;
2. issuance of instructions regarding adoption of uniform procedure in the hearing of matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of English translation of Judgments written in any language, speedy grant of copies of documents;
3. generally overseeing the functioning of the State Commissions or the District Forum to ensure that the 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 control 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 may be enforced by the District Forum, the State Commission or the National Commission, as the case may be, in the same manner as if it were a decree or order made by a court in a suit pending therein and 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 the local limits of whose jurisdiction.-

1. in the case of an order against a company, the registered office of the company is situated, or
2. in the case of an order against any other person, the place where the person concerned voluntarily resides or carries on business or personally works for gain, is situated, and thereupon, 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.

26. Dismissal of frivolous or vexatious complaints.- Where a complaint instituted before a District Forum, the State Commission or the National Commission, as the case may be, is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order.

27. Penalties.- Where a trader or a person against whom a complaint is made or the complainant fails or omits to comply with any order made by the District Forum, a State Commission or the National Commission, as the case may be, such trader or person or complainant shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both;
Provided that the District Forum, the State Commission or the National Commission, as the case may be, may, if satisfied that the circumstances of any case so requires, impose a sentence of imprisonment or fine, or both, for a term lesser than the minimum term and the amount lesser than the minimum amount, specified in this section.

CHAPTER IV

Miscellaneous

28.- Protection of action taken in good faith.- No suit, prosecution or other legal proceedings shall lie against the members of the District Forum, the State Commission or the National Commission or any officer or person acting under the direction of the District Forum, the State Commission or the National Commission for executing any order made by it or in respect of anything which is in good faith done or intended to be 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 may, by order in the Official Gazette, make such provisions not inconsistent with the provisions of this 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.

29A. Vacancies or defects in appointment not to invalidate orders.- No act or proceeding of the District Forum, the State Commission or the National Commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.

30. Power to make rules.- (1) The Central Government may, by notification, make rules for carrying out the provisions contained in 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-section (2) of Section 20 and Section 22 of this Act.

(2) The State Government may, by notification, make rules for carrying out the provisions contained in clause (b) of Sub-section (2) and Sub-section (4) of Section 7, Sub-section (3) of Section 10, clause (c) of Sub-section (1) of Section 13, Sub-section (3) of Section 14, Section 15 and Sub-section (2) of Section 16.

31. Laying of rules.- (1) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which 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 sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of 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 this rule.

(2) Every rule made by the State Government under this Act shall be laid as soon as may be after it is made before the State Legislature.

The Consumer Protection Rules, 1987

In exercise of the powers conferred by Sub-section (1) of Section 30 of the Consumer Protection Act, 1986 (68 of 1986), the Central Government hereby makes the following rules, namely:-

1. Short title and Commencement.- (1) These rules may be called the Consumer Protection Rules, 1987.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.- In these rules, unless the context otherwise requires-

1. "Act" means the Consumer Protection Act, 1986 (68 of 1986);
2. "agent" means a person duly authorized by a party to present any complaint, appeal or reply on its behalf before the National Commission;
3. "appellant" means a party which makes an appeal against the order of the State Commission;
4. "chairman" means a chairman of the Central Consumer Protection Council established under Sub-section (1) of Section 4 of the Act;
5. "memorandum" means any memorandum of appeal filed by the appellant;
6. "opposite party" means a person who answers a complaint or claim;
7. "president" means the President of the National Commission;
8. "respondent" means the person who answers any memorandum of appeal;
9. "Section" means Section of the Act;
10. "State" includes Union territories also;
11. words and expressions used in the rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act.

3. The Constitution of the Central Consumer Protection Council and the Working Groups.- (1) The Central Government shall, by notification in the Official Gazette constitute the Central Consumer Protection Council (hereinafter referred to as the Central Council) which shall consist of the following 150 members, namely:-

1. the Minister in-charge of Consumer Affairs in the Central Government who shall be the Chairman of the Central Council;
2. the Minister of State (where he is not holding independent charge) or Deputy Minister (in-charge of Consumer Affairs in the Central Government) who shall be Vice-Chairman of the Central Council;
3. the Minister of Food and Civil Supplies or Minister in-charge of Consumer Affairs in States;
4. eight Members of Parliament- five from the Lok Sabha and three from the Rajya Sabha;
5. the Secretary of the National Commission for Scheduled Castes and Scheduled Tribes;
6. representatives of the Central Government Departments and autonomous organizations concerned with consumer interests- not exceeding twenty;
7. representatives of the Consumer Organizations or consumers-not less than thirty five;
8. representatives of women-not less than ten;
9. representatives of farmers, trade and industries-not exceeding twenty
10. persons capable of representing consumer interests not specified above-not exceeding fifteen;
11. the Secretary in the Department of Civil Supplies shall be a member-secretary of the Central Council.

(2) The term of the Council shall be three years.

(3) Any member may, by writing under his hand to the Chairman of the Central Council , resign from the Council. The vacancies, so caused or otherwise, shall be filled from the same category by the Central Government and such person shall hold office so long as the member whose place he fills would have been entitled to hold office, if the vacancy had not occurred.

4. Procedure of the Central Council.- Under Sub-section (2) of Section 5, the Central Council shall observe the following procedure in regard to the transaction of its business.-

1. The meeting of the Central Council shall be presided over by the Chairman. In the absence of the Chairman, the Vice-Chairman shall preside over the meeting of the Central Council. In the absence of the Chairman and Vice-Chairman, the Central Council shall elect a member to preside over that meeting of the Council.
2. Each meeting of the Central Council shall be called by giving , not less than ten days from the date of issue, notice in writing to every member.
3. Every notice of a meeting of the Central Council shall specify the place and the day and hour of the meeting and shall contain statement of business to be transacted thereat.
4. No proceedings of the Central Council shall be invalid merely by reasons of existence of any vacancy in or any defect in the constitution of the Council.
5. For the purpose of performing its functions under the Act, the Central Council may constitute from amongst its members, such working groups as it may deem necessary and every group so constituted shall perform such functions as are assigned to it by the Central Council. The findings of such working groups shall be placed before the Central Council for its consideration.
6. The non-official members shall be entitled to first class to and from railway fare and a daily allowance of rupees one hundred per day for attending the meetings of the Central Council or any working group. Members of Parliament shall be entitled to traveling and daily allowances at such rates as are admissible to such members,
7. The resolution passed by the Central Council shall be recommendatory in nature.

5. Place of the National Commission.- The office of the National Commission shall be located in the Union Territory of Delhi.
6. Working days and office hours of the National Commission.- The working days and office hours of the National Commission shall be the same as that of the Central Government.
7. Seal and emblem.- The official seal and emblem of the National Commission shall be such as the Central Government may specify.
8. Sitting of the National Commission.- The sitting of the National Commission as and when necessary, shall be convened by the President.
9. Staff of the National Commission.- The Central Government shall appoint such staff as may be necessary to assist the National Commission in its day to day work and to perform such other functions as are provided under the Act and these rules or assigned to it by the President. The salary payable to such staff shall be defrayed out of the Consolidated Fund of India.
10. Additional powers of the National Commission, State Commission and District Forum.- (1) The National Commission, the State Commission and the District Forum shall have power to require any person.-

1. to produce before, and allow to be examined and kept by an officer of the National Commission, the State Commission or the District Forum, as the case may be, specified in this behalf, such books, accounts, documents or commodities in the custody or under the control of the person so required as may be specified or described in the requisition, if the examination of such books, accounts, documents or commodities are required for the purpose of this Act;
2. to furnish to an officer so specified, such information as may be required for the purpose of this Act.

(2)(a) Where during any proceedings under this Act, the National Commission, the State Commission or the District Forum, as the case may be, has any ground to believe that any book, paper, commodity or document which may be required to be produced in such proceedings, are being or may be, destroyed, mutilated, altered, falsified or secreted, it may, by written order, authorize any officer to exercise the power of entry and search of any premises. Such authorized officer may also seize such books, papers, documents or commodities as are required for the purpose of this Act;
Provided that such seizure shall be communicated to the National Commission, the State Commission or the District Forum, as the case may be, as soon as it is made or within a period not exceeding 72 hours of making such seizure after specifying the reasons in writing for making such seizure.

(b) the National Commission, the State Commission or the District Forum, as the case may be, on examination of such seized documents or commodities, as the case may be, order the retention thereof or may return it to the party concerned.

11. Salaries, honorarium and other allowances of the President and Members of the National Commission.- (1) The President of the National Commission shall be entitled to salary, allowances and other perquisites as are available to a sitting Judge of the Supreme Court and other members, if sitting on whole-time basis, shall receive a consolidated honorarium of six thousand rupees per month or if sitting on part-time basis, a consolidated honorarium of three hundred rupees per day of sitting.

(2) The President and the members shall be entitled to traveling and daily allowances on official tours at the same rates as are admissible to group 'A' Officers of the Central Government.

(3) The honorarium or the salary, as the case may be, and other allowances shall be defrayed out of the Consolidated Fund of India.

12. Terms and conditions of service of the President and members of the National Commission.- (1) Before appointment, the President and a member of the National Commission shall have to take an undertaking that he does not and will not have any such financial or other interest as is likely to affect prejudicially his function as such member.

(2) The President and the member shall hold office for such period, not exceeding five years as may be specified by the Central Government in the notification, but shall be eligible for reappointment;
Provided that no President or a member shall hold office as such for a total period exceeding ten years or after he has attained the age of 75 years, whichever is earlier.

(3) Notwithstanding anything contained in sub-rule (2) the President or a member may.-

(a) by writing under his hand and addressed to the Central Government resign his office at any time,

(b) be removed from his office in accordance with the provisions of Rule 13.

(4) The terms and conditions of service of the President and the members shall not be varied to their disadvantage during their tenure of office.

(5) A casual vacancy caused by resignation or removal of the President or any other member of the National Commission under sub-rule (3) or otherwise shall be filled by fresh appointment.

(6) When the office of the President of the National Commission is vacant or when such President is, by reason of absence or otherwise unable to perform the duties of his office, the duties of the office shall be performed by such person, who is qualified to be appointed as President of the National Commission, as the Central Government may appoint for the purpose.

(7) The President or any member ceasing to hold office as such shall not hold any appointment in or be connected with the management or administrations of any organization which may have been the subject of any proceeding under the Act during his tenure for a period of five years from the date on which he ceases to hold such office.

13. Removal of President or members from office in certain circumstances.- (1) The Central Government may remove from office, the President or any member, who,-

1. has been adjudged as an insolvent; or
2. has been convicted of an offense which, in the opinion of the Central Government, involves moral turpitude; or
3. has become physically or mentally incapable of acting as the President or the member; or
4. has acquired such financial or other interest as is likely to affect prejudicially his functions as the President or a member; or
5. has so abused his position as to render his continuance in office prejudicial to the public interest.

(2) Notwithstanding anything contained in sub-rule (1), the President or any member shall not be removed from his office on the grounds specified in clauses (d) and (e) of that sub-rule except on an inquiry held by the Central Government in accordance with such procedure as it may specify in this behalf and finds the President or a member to be guilty of such ground.

14. Procedure to be followed by the National Commission.- (1) A complaint containing the following particulars shall be presented by the complainant in person or by his agent to the National Commission or be sent by registered post, addressed to the National Commission:-

1. the name, description and the address of the complainant;
2. the name, description and address of the opposite party or parties, as the case may be, so far as they can be ascertained;
3. the facts relating to the complaint and when and where it arose;
4. documents in support of the allegations contained in the complaint;
5. the relief which the complainant claims.

2. The National Commission shall, in disposal of any complaint before it, as far as possible, follow the procedure laid down in sub-section (1) and (2) of Section 13 in relation to a complaint received by the District Forum.
3. On the date of the hearing or any other date to which hearing could be adjourned, it shall be obligatory on the parties or their agents to appear before the National Commission. Where the complainant or his agent fails to appear before the National Commission on such days, the National Commission may in its discretion either dismiss the complaint for default or decide it on merits. Where the opposite party or its agent fails to appear on the date of hearing the National Commission may decide the complaint ex-parte.
4. The National Commission may, on such terms as it deems fit and at any stage of the proceedings, adjourn the hearing of the complaint but the complaint shall be decided as far as possible within a period of three months from the date of notice received by the opposite party where complaint does not require analysis or testing of commodities.
5. If after the proceedings conducted under sub-rule (3), the National Commission is satisfied with the allegations contained in the complaint, it shall issue orders to the opposite party or parties, as the case may be, directing him or them to take one or more of the things mentioned in Sub-section (1) of Section 14. The National Commission shall also have the power to direct that any order passed by it, where no appeal has been preferred under Section 2 or where the order of the National Commission has been affirmed by the Supreme Court under that section, be published in the Official Gazette or through any other media and no legal proceedings shall lie against the National Commission or any media for such publication.

15. Procedure for hearing the appeal.- (1) Memorandum shall be presented by the appellant or his agent to the National Commission in person or sent by registered post addressed to the Commission.

2. Every memorandum filed under Sub-rule (1) shall be in legible handwriting preferably typed and shall set forth concisely under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively.
3. Each memorandum shall be accompanied by a certified copy of the order of the State Commission appealed against and such of the documents as may be required to support grounds of objection mentioned in the memorandum.
4. When the appeal is presented after the expiry of the period of limitation as specified in the Act, the memorandum shall be accompanied by an application supported by an affidavit setting forth the facts on which the appellant relies to satisfy the National Commission that he has sufficient cause for not preferring the appeal within the period of limitation.
5. The appellant shall submit six copies of the memorandum to the Commission for official purposes.
6. On the date of hearing or on any other day to which the hearing may be adjourned, it shall be obligatory for the parties or their agents to appear before the National Commission. If the appellant or his agent fails to appear on such date, the National Commission may in its discretion either dismiss the appeal or decide ex parte on merits. If the respondent or his agent fails to appear on such date, the National Commission shall proceed ex parte and shall decide the appeal on merits of the case.
7. The appellant shall not, except by leave of the National Commission, urge or be heard in support of any ground of objection not forth in the memorandum but the National Commission, in deciding the appeal, may not confine to the grounds of objections set forth in the memorandum:
   Provided that the Commission shall not rest its decision on any other ground other than those specified in the memorandum unless the party who may be affected thereby, has been given, an opportunity of being heard by the National Commission.
8. The National Commission, on such terms as it may think fit and at any stage, adjourn the hearing of the appeal, but not more than one adjournment shall ordinarily be given and the appeal should be decided as far as possible, within 90 days from the first date of hearing.
9. The order of the National Commission shall be communicated to the parties concerned free of cost.

15A. Sitting of the National Commission and signing of orders.- (1) Every proceeding of the National Commission shall be conducted by the President and at least two members thereof sitting together;
Provided that where the member or members for any reason are unable to conduct the proceedings till it is completed, the President shall conduct such proceeding de novo.

(2) Every order made by the National Commission shall be signed by the President and at least two members who conducted the proceeding and if there is any difference of opinion among themselves, the opinion of majority shall be the order of the National Commission;
Provided that where the proceeding is conducted by the President and three members thereof and they differ on any point or points, they shall state the point or points on which they differ and refer the same to the other members for hearing on such point or points and such point or points shall be decided according to the opinion of the majority of the National Commission.

THE MAHARASHTRA CONSUMER PROTECTION RULES, 1987
Notification No. CPC 3987/705/X (239), dated 20 th November, 1987.-

In exercise of the powers conferred by sub-section (2) of Section 30 of the Consumer Protection Act, 1986 (68 of 1986), the Government of Maharashtra hereby make the following rules, namely:

1. Short title and commencement.- (1) These rules may be called the Maharashtra Consumer Protection Rules, 1987.
2. They shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

2. Definitions.- In these rules, unless the context otherwise require,-

1. "Act" means the Consumer Protection Act, 1986;
2. "agent" means a person duly authorized by a party to present any complaint or appeal or reply on its behalf before the State Commission or the District Forum;
3. "appellant" means a party which makes an appeal against the order of the District Forum;
4. "memorandum" means memorandum of appeal filed by the appellant;
5. "opposite party" means a person who answers a complaint or claim;
6. "President" means the President of the State Commission or District Forum, as the case may be;
7. "respondent" means the person who answers any memorandum of appeal.

(3) Salaries and other allowances and terms and conditions of the President and Members of District Forum.- (1) The President of the District Forum shall receive the salary of a District Judge if appointed on whole time basis or an honorarium of Rs. 150 per day if appointed on part-time basis. Other members if sitting on whole-time basis, shall receive a consolidated honorarium of Rs. 2000 per month and if sitting on part-time basis , a consolidated honorarium of Rs. 100 per day for the sitting.

(2) The President and Members of the District Forum shall be entitled for such traveling allowances on official tour as specified by the State Government from time to time.

(3) The salary, honorarium and other allowances shall be defrayed from the Consolidated Fund of the State.

(4) Before appointment, the President and Members of the District Forum shall have to take an undertaking that he does not and will not have any such financial or other interests is likely to affect prejudicially his function as a member.

(5) In addition to the provisions of Section 10 (2), State Government may remove from the office, the President and member of a District Forum who:-

1. has been adjudged an insolvent; or
2. has been convicted of an offense which in the opinion of the State Government, involves moral turpitude; or
3. has become physically or mentally incapable of acting as such member; or
4. has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or
5. has so abused his position as to render his continuance in office prejudicial to the public interest.

Provided that the President or member shall not be removed from his office on the ground specified in clause (d) and (e) of sub-rule (5) except on an inquiry held by State Government in accordance with such procedure as it may specify on its behalf and finds the member to be guilty of such ground.

6. The terms and conditions of the service of the President and the Member of the District Forum shall not be varied to their disadvantage during their tenure of office.
7. Where any vacancy occurs in the Office of the President of the District Forum, the senior-most (in order of appointment) Member of District Forum holding office for the time being, shall discharge the functions of the President until a person appointed to fill such vacancy assumes the office of the President of the District Forum.
8. When the President of the District Forum is unable to discharge the functions owing to absence, illness or any other cause, the senior-most (in order of appointment) Member of the District Forum shall discharge the functions of the District Forum until the day on which the President resumes the charge of his function.
9. The President or any member ceasing to hold office as such shall not hold any appointment in or be connected with the management or administration of an organization which has been the subject of any proceeding under the Act during his tenure for a period of five years from the date on which he ceases to hold such office.

4. Place of sitting and other matters relating to District Forum.- (1) The office of the District Forum shall be located at the headquarters of the District. When State Government decides to establish a single District Forum having jurisdiction over more than one district, it shall notify the place and jurisdictions of the District Forums so established.

2. The working days and the office hours of the District Forum shall be the same as that of the State Government.
3. The official seal and emblem of the District Forum shall be such as the State Government may specify.
4. Sitting of the District Forum , as and when necessary, shall be convened by the President.
5. No act or proceeding of the District Forum shall be invalid by reason only of the existence of any vacancy among its members or any defect in its constitution.
6. The State Government shall appoint such staff as may be necessary to assist the District Forum in its day-to-day work and perform such other functions as are provided under these rules, or assigned to it by the President. The salary payable to such staff shall be defrayed out of the Consolidated Fund of the State.
7. Where the opposite party admits the allegations made by the complainant, the District Forum shall decide the complaint on the basis of the merit of the case and documents present before it.
8. If during the proceedings conducted under Section 13, District Forum fixes a date for hearing of the parties, it shall be obligatory for the complainant and the opposite party or its authorized agent to appear before the District Forum on such date of hearing or any other date to which hearing could be adjourned. Where the complainant or his authorized agent fails to appear before the District Forum on such day, the District Forum may in its discretion either dismiss the complaint for default or decide it on merit. Where the opposite party or its authorized agent fails to appear on the day of the hearing, the District Forum may decide the complaint ex parte.
9. While proceeding under sub-rule (8), the District Forum may, on such terms as it may think fit and at any stage, adjourn the hearing of the complaint but not more than one adjournment shall ordinarily be given and the complaint should be decided within 90 days from the date of notice received by the opposite party where the complaint does not require analysis or testing of the goods and within 150 days if it requires analysis or testing of the goods.
10. Orders of the District Forum shall be signed and dated by the members of the District Forum constituting the Bench and shall be communicated to the parties free of charge.
11. The decision of the President of the District Forum shall be final in case of difference of opinion amongst its members.

5. Procedure to be adopted by the District Forum for analysis and testing of goods.- (1) Under Section 13 (1) (c), if considered necessary, the District Forum may direct the complainant to provide more than one sample of the goods in clean containers with stoppers properly fixed on them.

(2) On receiving the sample of such goods, the District Forum shall seal it and fix labels on the containers carrying the following information:

1. name and address of the appropriate laboratory to which the sample will be sent for analysis and test;
2. name and address of the District Forum;
3. case number;
4. seal of the District Forum;
5. date of dispatch.

(3) The sample will be sent to the appropriate laboratory by the District Forum for sending a report within 45 days or within such extended time as may be granted by the District Forum after specifying the nature of the alleged defect and date of submission of the report.

6. Salary and other allowances and terms and conditions of the President and Members of the State Commission.- (1) President of the State Commission shall receive the salary of the Judge of the High Court if appointed on whole-time basis or a consolidated honorarium of Rs. 200 per day for the sitting if appointed on part-time basis. Other members, if sitting on whole-time basis shall receive a consolidated honorarium of Rs. 3,000 per month and if sitting on part-time basis, a consolidated honorarium of Rs. 150 per day for the sitting.

2. The President and the Members of the State Commission shall be eligible for such traveling allowance and daily allowance of official tour specified by the State Government from time to time.
3. The salary, honorarium and other allowances shall be defrayed out of the Consolidated Fund of the State.
4. President and Member of the State Commission shall hold office for a term of five years or up to the age of 75 years whichever is earlier and shall not be eligible for reappointment:

Provided that the President and member may-

1. by writing under his hand and addressed to the State Government resign his office any time;
2. be removed from his office in accordance with provisions of sub-rule (5).

(5) The State Government may remove from office, President or a Member of the State Commission who,-

1. has been adjudged an insolvent; or
2. has been convicted of an offense which in the opinion of the State Government involves moral turpitude; or
3. has become physically or mentally incapable of acting as such Member; or
4. has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member;or
5. has so abused his position as to render his continuance in office prejudicial to the public interest:

Provided further that the President or a Member shall not be removed from his office on the ground specified in clauses (d) and (e) of sub-rule (5) except on an inquiry held by State Government, in accordance with such procedure as it may specify in this behalf and finds the Member to be guilty of such ground.

6. Before appointment, President and a Member of the State Commission shall have to give an undertaking that he does not and will not have any such financial or other interest as is likely to affect prejudicially his function as such member.
7. The terms and conditions of the service of the President and the Members of the State Commission shall not be varied to their disadvantage during their tenure of office.
8. Every vacancy caused by resignation or removal of the President and the Members of the State Commission under sub-rule (4) or otherwise shall be filled by fresh appointment.
9. Where any such vacancy occurs in the office of the President of the State Commission, the senior-most (in order of appointment) Member, holding office for the time being, shall discharge the functions of the President until a person appointed to fill such vacancy assumes the office of the President of the State Commission.
10. When the President of the State Commission is unable to discharge the functions owing to absence, illness or any other cause, the senior-most (in order of appointment) Member of the State Commission shall discharge the functions of the President until the day on which the President resumes the charge of his functions.
11. The President or any Member ceasing to hold office as such shall not hold any appointment in or be connected with the management or administration of an organization which has been the subject of any proceeding under the Act during his tenure for a period of five years from the date on which he ceases to hold such office.

7. Place of sitting and other matters relating to State Commission.- (1) The Office of the State Commission shall be located at the Capital of the State.

2. The working days and office hours of the State Commission shall be the same as that of the State Government.
3. The official seal and emblem of the State Commission shall be such as the State Government may specify.
4. Sitting of the State Commission, as and when necessary, shall be convened by the President.
5. No act or proceeding of the State Commission shall be invalid by reasons only of the existence of any vacancy among its members or any defect in its constitution thereof.
6. State Government shall appoint such staff, as may be necessary to assist the State Commission in its work and perform such other functions as are provided under these rules or assigned to it by the President. The salary payable to such staff shall be defrayed out of the Consolidated Fund of the State.
7. Where the opposite party admits the allegations made by the complainant, the State Commission shall decide the complaint on the basis of the merit of the case and documents present before it.
8. If during proceedings conducted under Section 13, State Commission fixes a date for hearing of the parties, it shall be obligatory for the complainant and the opposite party or his authorized agent to appear before the State Commission on such date of hearing or another date to which the hearing could be adjourned. Where the complainant or his authorized agent fails to appear before the State Commission on such day, the State Commission may in its discretion either dismiss the complaint for default or decide it on merits. Where the opposite party or its authorized agent fails to appear on the day of the hearing, the State Commission may decide the complaint ex parte.
9. While proceeding under sub-rule (8) , the State Commission may, on such terms as it may think fit and at any stage adjourn the hearing of the complaint but not more than one adjournment shall ordinarily be given and the complaint should be decided within 90 days from the date of notice received by the opposite party where the complaint does not require analysis or testing of the goods and within 150 days if it requires analysis or testing of the goods.
10. Orders of the State Commission shall be signed and dated by the members of the State Commission constituting the Bench and shall be communicated to the parties free of charge.

8. Procedure for hearing appeal.- (1) Memorandum shall be presented by the appellant or his authorized agent to the State Commission in person or sent by registered post addressed to the Commission.

2. Every memorandum filed under sub-rule (1) shall be in legible handwriting preferably typed and shall forth concisely under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively.
3. Each memorandum shall be accompanied by a certified copy of the order of the District Forum appealed against and such of the documents as may be required to support grounds of objection mentioned in the memorandum.
4. When the appeal is presented after the expiry of the period of limitation as specified in the Act, the Memorandum shall be accompanied by an application supported by an affidavit setting forth the fact on which the appellant relies to satisfy the State Commission that he has sufficient cause for not preferring the appeal within the period of limitation.
5. The appellant shall submit four copies of the memorandum to the State Commission for official purpose.
6. On the date of the hearing or any other day to which the hearing may be adjourned, it shall be obligatory for the parties or their authorized agents to appear before the State Commission. If the appellant or his authorized agent fails to appear on such date, the State Commission may, in its discretion, either dismiss the appeal or decide it on the merit of the case. If respondent or his authorized agent fails to appear on such date, the State Commission, shall proceed ex parte and shall decide the appeal ex parte on merits of the case.
7. The appellant shall not except by leave of the State Commission, urge or be heard in support of any ground of objection not set forth in the memorandum but the State Commission, in deciding the appeal, shall not confine to the grounds of objection set forth in the memorandum or taken by leave of the State Commission under this rule:
   Provided that the State Commission shall not rest its decision on any other ground unless the party who may be affected thereby , has been given at least one opportunity of being heard by the State Commission.
8. The State Commission may on such terms as it may think fit and at any stage, adjourn the hearing of appeal, but not more than one adjournment shall ordinarily be given and the appeal should be decided within 90 days from the first date of hearing.
9. Order of the State Commission on appeal shall be signed and dated by the members of the State Commission constituting the Bench and shall be communicated to the parties free of charge.

[index]