Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Consumer Protection Amendment Act, 2019, Assignments of Law of Torts

This is a project on consumer protection Amendment Act 2019 by Amit Kumar (a student of a Central University of South Bihar)

Typology: Assignments

2019/2020

Uploaded on 11/15/2020

rk-rk-1
rk-rk-1 🇮🇳

2 documents

1 / 22

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
1
CENTRAL UNIVERSITY OF SOUTH BIHAR
SCHOOL OF LAW AND GOVERNANCE
PROJECT ON : CONSUMER PROTECTION BILL, 2019
SUBMITTED TO: DR. DEO NARAYAN SINGH
(ASSISTANT PROFESSOR, FACULTY OF LAW)
SUBMITTED BY: AMIT KUMAR
PROGRAMME: B.A.LL.B.
ENROLLMENT NO. : CUSB1913125015
SUBJECT: LAW OF TORTS
SECTION: A, ROLL NO. : 015
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff
pf12
pf13
pf14
pf15
pf16

Partial preview of the text

Download Consumer Protection Amendment Act, 2019 and more Assignments Law of Torts in PDF only on Docsity!

CENTRAL UNIVERSITY OF SOUTH BIHAR

SCHOOL OF LAW AND GOVERNANCE

PROJECT ON : CONSUMER PROTECTION BILL, 2019

SUBMITTED TO: DR. DEO NARAYAN SINGH

(ASSISTANT PROFESSOR, FACULTY OF LAW)

SUBMITTED BY: AMIT KUMAR

PROGRAMME: B.A.LL.B.

ENROLLMENT NO. : CUSB

SUBJECT: LAW OF TORTS

SECTION: A, ROLL NO. : 015

TABLE OF CONTENTS

  • ACKNOWLEDGEMENT......................................................
  • TABLE OF CASES..............................................................
  • RESEARCH METHODOLOGY.............................................
  • INTRODUCTION................................................................
  • INTRODUCTION OF THE ACT,1986...................................
  • ANALYSIS OF THE BILL…………………………………………..
  • CONCLUSION……………………………………………………….
  • CASES………………………………………………………………...
  • BIBLIOGRAPHY……………………………………………………..
TABLE OF CASES
S.L. NO. NAME OF CASES CITATION PAGE NO.
1. M/s. Godfrey Phillips India
Ltd. v. Ajay Kumar
A.I.R. 2008 S.C 1828 17
2. K.S. Sidhu v. Senior
Executive Engineer
I (2001) C.P.J. 144 17
3. Guljari Lal Agarwal v. The
Accounts Officer
III (1996) C.P.J. (S.C.) 18
4. Vice Chairman, D.D.A. v.
O.P. Gauba
III (1995) C.P.J. 18
(N.C.)
5. Delhi Development
Authority v. I.S. Narula
III (1995 C.P.J.) 333 19
6. Janak Mehta v. Allahabad
Bank
I (1996) C.P.J. 149 (J&K
S.C.D.R.C.)
7. Kamlesh Bansal v. Balaji
Land Traders
III (1995) C.P.J. 510
Delhi S.C.D.R.C.
8. Ethiopian Airlines v.
Ganesh Narain Saboo
A.I.R. 2011 S.C. 3495 20
9. Justice Debendra Mohan
Patnaik v. State of Odissa
A.I.R. 2008 Ori. 28 21
10. Central Bank Of India v.
Tadepalli PadmaJa
A.I.R. 2008 (NOC) 2768
(NCC)
RESEARCH METHODOLOGY
 Research Methodology: The project is based on the doctrinal method of research as

no field work done on this topic.

 Aims & Objectives: To do a depth analysis of Consumer Protection Bill,2019 and its

aims and objectives. To know Parliament’s power of formation of new rules for the consumers of the country. The main objectives of the Act are to provide better and all round protection to consumers and effective safeguards against different types of exploitation such as defective goods, deficient services and unfair trade practices. It also makes provisions for simple, speedy and inexpensive machinery for redressal of consumer's grievances.

 Sources of Data: The whole project is made with the use of secondary source. The

following secondary sources of data have been used in the project:

1. Books
2. Websites
 Mode of Citation: The researcher has followed a uniform mode of citation throughout

the course of this research paper.

 Type of Study: For this topic, the researcher has opted for Descriptive and

Explanatory type of study as in this topic, the researcher is providing the descriptions of the existing facts.

Definition of consumer^2 : A consumer is defined as a person who buys any good or avails a service

for a consideration. It does not include a person who obtains a good for resale or a good or service for commercial purpose. It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling..

 Rights of consumers: Six consumer rights have been defined in the Bill, including the

right to: (i) be protected against marketing of goods and services which are hazardous to life and property; (ii) be informed of the quality, quantity, potency, purity, standard and price of goods or services; (iii) be assured of access to a variety of goods or services at competitive prices; and (iv) seek redressal against unfair or restrictive trade practices.

Central Consumer Protection Authority: The central government will set up a Central

Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements. The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.

 CCPA will carry out the following functions, including: (i) inquiring into violations of

consumer rights, investigating and launching prosecution at the appropriate forum; (ii) passing orders to recall goods or withdraw services that are hazardous, reimbursement of the price paid, and discontinuation of the unfair trade practices, as defined in the Bill; (iii) issuing directions to the concerned trader/ manufacturer/ endorser/ advertiser/ publisher to either discontinue a false or misleading advertisement, or modify it; (iv) imposing penalties, and; (v) issuing safety notices to consumers against unsafe goods and services.

(^2) https://prsindia.org

 Penalties for misleading advertisement: The CCPA may impose a penalty on a

manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.^3 In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.  CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year. For every subsequent offence, the period of prohibition may extend to three years. However, there are certain exceptions when an endorser will not be held liable for such a penalty.

 Consumer Disputes Redressal Commission: Consumer Disputes Redressal

Commissions (CDRCs) will be set up at the district, state, and national levels. A consumer can file a complaint with CDRCs in relation to: (i) unfair or restrictive trade practices; (ii) defective goods or services; (iii) overcharging or deceptive charging; and (iv) the offering of goods or services for sale which may be hazardous to life and safety. Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC. Appeals from the State CDRC will be heard by the National CDRC. Final appeal will lie before the Supreme Court.

 Jurisdiction of CDRCs: The District CDRC will entertain complaints where value of

goods and services does not exceed Rs.1 crore. The State CDRC will entertain complaints when the value is more than Rs. 1 crore but does not exceed Rs 10 crore. Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC.

 Product liability: Product liability means the liability of a product manufacturer,

service provider or seller to compensate a consumer for any harm or injury caused by a defective goodor deficient service. To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Bill.

(^3) https://www.gktoday.in › consumer-protection-bill- 2019

The preamble to the Act states that the Act is legislated 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 of consumer's disputes and for matters connected therewith. The CPA extends to the whole of India except the State of Jammu and Kashmir and applies to all goods and services unless otherwise notified by the Central Government.

 The basic rights of consumers^5 as per the Consumer Protection
Act (CPA) are:
1. Right to safety.
2. Right to be informed.
3. Right to choose.
4. Right to representation (or to be heard).
5. Right to seek redressal.
6. Right to consumer education.
1. Right to Safety :

It is the consumer right to be protected against goods and services which is hazardous to health or life.

2. Right to be Informed:

The consumer has the right to be informed about the quality, quantity, purity, standard and price of goods he intends to purchase. Therefore, the manufacture must mention complete

(^5) https://ceecare.com

information about the product, its ingredients, date of manufacture, price, precaution of use, etc. on the label and package of the product.

3. Right to Choose:

The consumer should be assured of freedom to choose from a variety of products at competitive prices. Every consumer wants to buy a product on his free will. There should be free competition in the market so that the consumer may make the right choice in satisfying his needs.

4. Right to Representation (or to be Heard):

The consumer has right to register dissatisfaction with any product and get his complaint heard. Most of the reputed firms have set up consumer service cells to listen to the consumer’s complaint and take appropriate steps to redress their grievances.

5. Right to Seek Redressal:

It is the right to seek redressal against any defect in goods or unfair trader suffered by the consumer. If the quality and performance of a product falls short of seller’s claims, the consumer has a right to certain remedies. The Consumer Protection Act requires that the product must be repaired, replaced or taken back by the seller as provided under the contract between the buyer and the seller.

6. Right to Consumer Education:

It means right of acquiring knowledge and being a well-informed consumer throughout his life. He should also be made aware of his rights and the remedies available through publicity in the mass media.

 Redressal Machinery under the Act
Consumer Protection Councils...

The interests of consumers are enforced through various authorities set up under the CPA. The CPA provides for the setting up of the Central Consumer Protection Council, the State Consumer Protection Council and the District Forum.

Under the CPA, the State Government has to set up a district Forum in each district of the State. The government may establish more than one District Forum in a district if it deems fit. Each District Forum consists of: (a) A person who is, or who 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 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. The District Forum can entertain complaints where the value of goods or services and the compensation, if any, claimed is less than rupees twenty lakhs. However, in addition to jurisdiction over consumer goods services valued upto Rs.20 lakhs, the District Forum also may pass orders against traders indulging in unfair trade practices, sale of defective goods or render deficient services provided the turnover of goods or value of services does not exceed rupees twenty lakhs.

 State Commission

The Act provides for the establishment of the State Consumer Disputes Redressal Commission by the State Government in the State by notification. Each State Commission shall consist of:

(a) A person who is or has been a judge of a High Court appointed by State Government (in consultation with the Chief Justice of the High Court ) who shall be its President;

(b) 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

(^8) ncdrc.nic.in

relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom must be a woman. Every appointment made under this is made by the State Government on the recommendation of a Selection Committee consisting of the President of the State Commission, Secretary -Law Department of the State and Secretary in charge of Consumer Affairs in the State. The State Commission can entertain complaints where the value of goods or services and the compensation, if any, exceeds Rs. 20 lakhs but does not exceed Rs. 1crore. The State Commission also has the jurisdiction to entertain appeal against the orders of any District Forum within the State. The State Commission also has the power to call for the records and appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State if it appears that such District Forum has exercised any

 National Commission^9

The Central Government provides for the establishment of the National Consumer Disputes Redressal Commission. The National Commission shall consist of:- (a) A person who is or has been a judge of the Supreme Court, to be appoint by the Central Government (in consultation with the Chief Justice of India ) who be its President; (b) 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.


(^9) ncdrc.nic.in

This course makes aware consumers empowered. It helps lawyers and law students get familiar with the detailed procedure to file a consumer grievance, process of approaching a Consumer Forum, detailed descriptions of laws that are applicable, accompanied illustrations and case studies to facilitate understanding.

 CONCLUSION

The position is that only those services come within this Act, for which specific payment is been made such as electricity , telephones , banking, goods of general use, vehicles etc thus the doctors as well as hospitals including those where treatment is given free such as government hospitals , do not come within the Act. The Act incorporates only the supply of hazardous goods, but it does not impose any strict liability who supply such goods. So, I think that the bill is not covering the whole area in which a consumer may be affected. Thus the government should revise the bill and add the missing provisions by which a consumer may feel comfortable in availing any service or in buying any good.

 CASES RELATED TO CONSUMER...
1. M/s. Godfrey Phillips India Ltd. v. Ajay Kumar^10 :- In this case, The

respondent filed a complaint in respect of an advertisement given by the appellant, alleging unfair trade practices. The advertisement was issued in newspapers and magazines in 1999 for the cigarettes manufactured and sold by it under the brand name of "Red & White" in respect of which the directions have been issued.

The impugned advertisement apart from showing the packet of cigarettes with the aforesaid brand name stated "Red & White smokers are one of a kind". The advertisement also shows the smiling face of actor Akshay Kumar holding a cigarette. It also contains the statutory warning "Cigarette smoking is injurious to health" as well as price of the pack. The complaint was dismissed by the District Forum as the complainant had also filed a suit in relation to the impugned advertisement in the Civil Court.

"The case of the complainant is that smoking of cigarette by Akshay Kumar with the slogans used in advertisement would detract the people from the statutory warning. Seeing comparative size of the letters etc. the statutory warning in our view loses its prominence which is usurped by more prominent and attractive Akshay Kumar et al and is sufficient to detract the attention of the viewers from the statutory warning to the image of Akshay Kumar with the slogan indicating smokers of Red and White cigarette could be super actor performing all the film stunts without duplicates."

Thus the court held that the advertisement was misappropriate and violating, so the cigarette manufacturing company held liable and Shri Ajay Kumar, the petitioner, was paid a sum of Rs.20,000/- by way of compensation and Rs.5,000/- as cost."

2. K.S. Sidhu v. Senior Executive Engineer^11 :- In this case, the complaint was filed

before the District Forum was dismissed by a non speaking order. The order did not

(^10). A.I.R. 2008 S.C 1828

(^11). I (2001) C.P.J. 144

has prayed that a plot measuring 90 Sq. Mtrs. be allotted to him in R.R.S. instead of the Rohini Extension Scheme and the possession of the same be given to him within a reasonable time. He has also prayed for interest on his deposit @ 18% p.a. from the date of the deposit till the date of handing-over the possession of the plot. He has also claimed damages for delay in delivering possession of the plot to him. For the aforesaid reasons, we partly accept the complaint with costs and grant Rs. 5,000/- as damaged to the complainant. Costs Rs. 500/-. The amount of damaged and cost be paid to him within three months from the date of the order failing which action would be taken against the respondents under Section 27 of the Consumer Protection Act.

5. Delhi Development Authority v. I.S. Narula^14 :- In this case, the District Forum-II

rendered its order on 4.5.94. Certified copy of the order was received by the DDA, appellant, by post on 13.7.94, The appeal was filed on 28.9.94 along with application for condonation of delay. Better particulars in regard to this application were furnished later. Reply to the application has been filed. According to the appellant decision to file the appeal was taken on 9.8.94 and the file was sent to the Lawyer to do the needful on 12.8.94. There were public holidays from 13 to 15th August '94. The appellant furnished better particular with regard to the delay from 16.8.94 to 27.9.94. In the better particulars it was stated that there was strike in Tis Hazari Courts and the appellant's Counsel could not get the grounds of appeal typed whereafter grounds of appeals were sent and the same were signed by the Competent Authority and ultimately the appeal was filed.

It was held that delay caused by inter office consultations is not sufficient cause and hence the delay was not condoned.

6. Janak Mehta v. Allahabad Bank^15 :- In this case, it was held that one of the methods

adopted to prolong the proceedings is first to allow the case to proceed ex parte, and then waste further time in getting the ex parte order set aside, in enquiries and in recording evidence. The Civil Procedure Code is applicable to the Consumer Protection Act to a limited extent. Therefore, the forum has no power to set aside an ex parte order.

(^14). III (1995 C.P.J.) 333

(^15). I (1996) C.P.J. 149 (J&K S.C.D.R.C.)

7. Kamlesh Bansal v. Balaji Land Traders^16 :- In this case, the complainant filed a

complaint and he failed to appear on the date fixed by the District Forum for ex parte evidence. Within 23 days of dismissal of complaint, the complainant applied for restoration of the complaint. The said application was rejected on the ground District Forum could not restore the complaint. It has been held by the Delhi State Commission that the Commission, while exercising appellate jurisdiction, can set aside the order of the District Forum dismissing the said application for restoring the complaint.

8. Ethiopian Airlines v. Ganesh Narain Saboo^17 :- In this case , The respondent booked a

consignment of Reactive Dyes with the appellant Ethiopian Airlines to be delivered at the Dar Es. Salaam, Tanzania on 30.9.1992. The airway bills were duly issued by the appellant from its office in Bombay at the Taj Mahal Hotel for the said consignment. According to the respondent there was gross delay in arrival of the consignment at the destination, which led to deterioration of the goods.The respondent filed a complaint on 11.5.1993 before the Maharashtra State Consumer Dispute Redressal Commission (hereinafter referred to as `the State Commission'). Pursuant to the notice issued by the State Commission, the appellant filed a written statement in which the appellant raised a preliminary objection regarding maintainability of the complaint.

On 17.1.1996, the State Commission held that the complaint filed by the respondent was not maintainable. The respondent aggrieved by the said order preferred an appeal before the National Consumer Disputes Redressal Commission. The National Commission categorically observed in the impugned judgment that Section 86 of the Code of Civil Procedure was not applicable since the case in dispute is covered under the provisions of the Consumer Protection Act, 1986.

(^16). III (1995) C.P.J. 510 Delhi S.C.D.R.C.

(^17). A.I.R. 2011 S.C. 3495