Articles

PROPOSALS FOR FURTHER AMENDMENTS TO THE CONSUMER PROTECTION ACT

PROPOSALS FOR FURTHER AMENDMENTS TO THE CONSUMER PROTECTION ACT

Should we think everything is fine at all ends after the amendment 2002 in the consumer protection act? Certainly not.It is not the law which makes the things final,it is the practice and practical experience which finally tells us where we stand.There are yet many quaries unanswered . Interpretations to the new added clauses are beeing done by the redressal agencies best suitable to the consumers which sometimes are creating a lot of hue and cry for want of clear cut provisions and explainations in the act.

Let us have a glance at the situation present before us .  It was considered a big achievement in  the amended act having provided first class magistrates power to the redressal agencies for the purpose of execution of the orders issued by the consumer  forum/commissions But the fact is guzzet notification to this effect is yet to be issued under section 20 of Cr PC which will actually give power to exercise the rights given under the act though Justice Wadhwa had indicated to go ahead with implementation without notification .Not only this, the provisions attached to the execution are otherwise also not feasible to implement for all practical purposes   In this connection if we see section twenty five  of the act which reads as here under

25[1] where an interim order made under this act ,is not complied with ,the district forums or the state commissions or national commissions as the case may be, may order the property of the person not complying with such order, to be attached.

25[3]…consumer forums or state commissions or national commission as the case may be ,may issue a certificate to the collector of the district and collector shall proceed to recover the amount in the same manner as arriers of the land

There are two questions in both the above stated provisions In clause 25[1] provision of attachment is against INTERIM ORDER and not against final order  This act awards compensation for the actual losses or for mental agony Compensation can be decided only in the final order and there is never any interim order for compensation Interim orders are generally given for restraining disconnection of electricity or telephone,payment of bills in part till final order, restraining any agency to do or omit some act but certainly forums are not  passing interim order to seal the property of any businesshouse ,manufacturer,insurance company,construction agencies or doctors and clinics marely on the plea that there might be some compensation order against them at the end of proceedings before consumer protection agencies.Had there been some recovery proceedings permitted under the act, there could have been some assessment of the dues and there could be some interim attachment order but this is not the case here Yes there are cases against financing companies and agencies wherein amount deposited with them is not returned after maturity and consumer can seek remedy against them  for attachment of property but in such cases either respondent approaches CLB or high court before they make a default or respondent leaves the country without leaving any property behind.Looking into all the above discussion , the words INTERIM ORDER need to be replaced by ALL ORDERS  in order to give this provision a practical shape As a matter of fact this provision  has otherwise also very little force in the absence of proper enforcement machinery More so, it is high time now to have a separate department for consumer affairs with proper infrastructure required to implement this law.

Clause 25[3] talks of certificate to the collector for recovery but what next after the certificate is issued? Consumers are now told to contact the collector for recovery of their dues because there is no further provision as to what is the role of consumer forums /commissions after that .Consumers are not at all willing to go to any other agency after they have obtained  a long awaited order from the forum They are very unhappy if told the role of consumer foras is over.There should be a clear provision as to who is  responsible for  followup with revenue deprtment and what should be the stipulated time limit

Now coming to the other provision which comes in the way of execution of the orders, we find section twenty four of the act very liberal for the judgement debtor.As per this clause, every order is final if appeal not preferred That means if appeal is preferred,order cannot be said to be final ,hence there cannot be any execution once appeal is preferred Now JD just files appeal and comes to get stay against execution. Appeal is not admitted as yet, requisite bank guaranty is yet not given ,there is no stay granted but consumer cannot get the order complied Respondant buys time before forum as well as before commission stating appeal is preferred They may not even have the intention to get the appeal admitted .In the mean time they grumble before the forums for adjournment ,if not given and asked to bring stay order plea is very simple act does not say for stay They also bargain with the consumer for settlement and at times succeed also by redusing their  liability to half..This section needs to be amended by substituting the words appeal preferred with the words stay granted

There is a vital impact seen after services for commercial purposes have been removed from the perview of this act.At once all commercial units are suddenly seen out of the definition of consumer It was a landmark judgement by the National commission in February 2005 wherein Honourable Justice M B Shah had drawn a demarcation line and made it clear that commercial purpose means if activity is directly related to profit making,trade, business or manufacturing Every commercial unit is not everytime hiring  services for commercial purpose just because it is a commercial unit.This espect is also to be spelled out more clearly in the act by further amendment.

State commission as well as national commission can now hold additional /circuit benches for speedy disposal of the cases This is really a need of the day Though it has been said in the act while defining the composition of the bench that bench must comprise of one female member and it is understood that the same is applicable to every additional bench also but it would be much better if provision is spelled out in clear words while stipulating provisions/ terms for additional benches.

Yet another question drawing attention now; the procedure of reappointment of members and presidents for another term.Though it is stipulated in the act that such reappointments shall be subject to the recommendation of selection committee but no procedure is laid down in clear terms There has to be a uniform procedure which should be followed in whole of the country as we observe consumer movement is the most forceful movement of the day and it needs now full attention All ambiguities are to be removed and  for this purpose ,procedure is to be made more clear in the act with the change of time and looking into the increasing popularity of consumer courts.

Become a Member of the new revolution "Consumer Awakening" and instantly expand your knowledge with the Important Landmark Judgements, Laws Laid down by the Supreme Court for Consumer Rights, Get access to hundreds of Featured Articles in 2 different Languages; English and Hindi - a valuable professional resource to draw upon, and a powerful, collective voice to advocate for your protection of rights as a consumer nationwide.

Thank you for your interest in becoming a "Consumer Awakening" Member!
You will find information on Customer Rights, what we're doing and how to become a member. If you are looking forward to become a member of our portal and gain access to Hundreds of Featured Articles which will clearly give you an insight of yoru rights as a Consumer, then Read Further. more detail on our technologies and technology process,