jammu & kashmir consumer protection act, - jammu kashmir government

JAMMU &KASHMIRCONSUMER

PROTECTION. ACT, 1987

ContentsCHAPTER 1 PRELIMINARY

1. Short title, extent, commencementand application

2. Definitions3. Act not in derogation of any other law

CHAPTER II CONSUMER PROTECTIONCOUNCILS

4. The State Consumer ProtectionCouncil

5. Procedure for meeting of the StateCouncil

6. Objects of the State Council6-A. Composition of District ConsumerProtection Council

CHAPTER III CONSUMER DISPUTESREDRESSAL AGENCIES

7. Establishment of Consumer DisputesRedressal Agencies

8. Composition of the Divisional Forum9. Jurisdiction of the Divisional Forum10. Manner in which complaint shall he

made11. Procedure on receipt of complaint12. Finding of the Divisional Forum13. Appeal14. Composition of the State Commission15. Jurisdiction of the State Commission16. Procedure applicable to State

Commission16A. Validity of orders17. Appeals18. Finality of orders18-A. Limitation period19. Enforcement of order by the Forum or

the State Commission20. Dismissal of frivolous or vexatious

complaints21. Penalties

CHAPTER IV22. Protection of action taken good faith23. Power to remove difficulties23A. Vacancies of defects in appointmentnot to invalidate o r d e r s24. Power to make rules25. Laying of rules

JAMMU &KASHMIR

CONSUMERPROTECTION.

ACT, 1987

[ACT NO. XVI OF 1987][29th August, 1987]

An Act to provide for betterprotection of the interests ofconsumers and for that purpose tomake provision for the establishmento f consumer councils, and otherauthorities for the settlement ofconsumers' disputes and for mattersconnected therewith.

Be it enacted by the Jammu andKashmir State Legislature in theThirty-eighth Year of the Republic ofIndia as follows;-

CHAPTER 1PRELIMINARY

1 Short title, extent,commencement and application

(1) This Act may be called theJammu and Kashmir ConsumerProtection Act, 1987.

(2) It extends to the whole of theState of Jammu and Kashmir.

(3) [1]It shall come into force onsuch date as the Governmentm a y, by Notification in theGovernment Gazette, appoint

and different dates may beappointed for differentprovisions of this Act.

(4) Save as otherwise expresslyprovided by the Government byNotification, in the GovernmentGazette, this Act shall apply toall goods and services.

2. Definitions

In this Act, unless the contextotherwise requires,-

(a) "appropriate laboratory"means a laboratory or organisationrecognised by the Government andincludes any such laboratory ororganisation established by or underany law for the time being in force,which is maintained, financed oraided by the Government for carryingout analysis or test of any goods witha view to determining whether suchgoods suffer from any defect;

[2][(aa) "branch office" means-

(i) any establishment described asa branch by the opposite party; or

(ii)any establishment carrying oneither the same or substantially thesame activity as that carried on byt h e head office of theestablishment;]

(b) "complainant" means - (i) aconsumer; or

(ii) any voluntary consumerassociation registered under theCompanies Act, 1956 or under any

other law for the time being in force;or

(iii) the Government, who makesa complaint;

[3][{iv) one or more consumers,where there are numerousconsumers having the sameinterests;]

(c) "complaint" means anyallegation in writing made by acomplainant that-

[4][(i) an unfair trade practice ora restrictive trade practice has been

adopted by any trader;]

[5][(ii) the goods bought by himor agreed to be bought by him suffer]from one or more defects;

[6][(iii) the services hired oravailed of or agreed to be hired oravailed of by him] suffer fromdeficiency in any respect;

(iv) a trader has charged for thegoods mentioned in the complaint aprice in excess of the price fixed byor under any law for the time beingin force or displayed on the goods or

any package containing such goods.

[7][(v) goods which will behazardous to life and safety whenused, are being offered for sale tothe public in contravention of theprovisions of any law for the timebeing in force requiring traders todisplay information in regard to thecontents, manner and effect of use ofsuch goods;] with a view to obtainingany relief provided by or under thisAct; (d) "consumer" means anyperson who,-

(i) buys any goods for a

consideration which has been paid orpromised or partly paid and partlypromised or under any system ofdeferred payment and includes anyuser of such goods other than theperson who buys such goods forconsideration paid or promised partlypaid or partly promised or under anysystem of deferred payment whensuch use is made with the approvalof such person, but does not includea person who obtains such goods forresale or for any commercialpurpose; or

( i i ) [8][hires or avails of] anyservices for a consideration whichhas been paid or promised or partlypaid and partly promised, or underany system of deferred payment andincludes any beneficiary of suchservices other than the person who[hires or avails of] the services forconsideration paid or promised, orpartly paid and partly promised, orunder any system of deferredpayment, when such services areavailed of with the approval of thefirst mentioned person;

[9][Explanat ion. — For thepurposes of sub-clause (i),"commercia l purpose" does notinclude use by a consumer of goodsbought and used by him exclusivelyfor the purposes of earning hislivelihood, by means of self-employment];

"consumer disputes" means adispute where the person againstwhom a complaint has been made,denies or disputes the allegationscontained in the complaint;

"defect" means any fault,

imperfection or shortcoming in thequality, quantity, potency, purity orstandards which is required to bemaintained by or under any law forthe time being in force [under anycontract, express or implied, o r d e ro r ] a s i s c l a i m e d b y t h e t r a d e r i na n y m a n n e r whatsoever in relationto any goods;

"deficiency" means any fault,imperfection or shortcoming o ri n a d e q u a c y i n t h e q u a l i t y , n a t u r ea n d m a n n e r o f performance whichis required to be maintained by or

under any law for the time being inforce or has been undertaken to beperformed by a person in pursuanceof a contract or otherwise in relationto any services.

(h) "Divisional Forum" means aConsumer Disputes Redressal Forumestablished under clause (a) ofsection 7;

(i) "goods" means goods' asdefined in the Jammu and KashmirSale of Goods Act, Samvat 1996;

(j) "government" means theGovernment of Jammu and Kashmir;

(k) "manufacturer" means aperson who-

(i) makes or manufactures anygoods or parts thereof; or

(ii) does not make ormanufacture any goods butassembles parts thereof made ormanufactured by others and claimsthe end product to the goodsmanufactured by himself; or

(iii) puts or causes to be put hisown mark on any goods made ormanufactured by any othermanufacturer and claims such goods

to be goods made or manufacturedby himself.

Ex p l a na t i o n . — Where amanufacturer despatches any goodso r part thereof to any branch office

maintained by him,: such branchoffice shall not be deemed to be themanufacturer even though the partsso despatched to it are assembled atsuch branch office and are sold ordistributed from branch office;

[10][(kk) "member" includes thePresident and a member of the StateCommission or a Divisional Forum as

the Case may be];

( 1 ) " n o t i f i c a t i o n " m e a n s an o t i f i c a t i o n p u b l i s h e d i n t h eGovernment Gazette;

(m) "person" includes.-

(i) a firm whether registered ornot;

(ii) a Hindu undivided family;

(iii) a co-operative society;

(iv) every other association ofpersons whether registeredunder the Jammu and KashmirSocieties Registration Act,

Samvat 1998 or not;

(n) "prescribed" means prescribedby rules made by the

Government under this Act;

[11][(nn) "restrictive tradepractice" means any trade practicewhich requires a consumer to buy,hire or avail of any goods or, as thecase may be, services as a conditionprecedent for buying, hiring oravailing of other goods or services];

(o) "service" means service of anydescription which is made available

to potential users and includes theprovision of facilities in connectionwith banking, financing, insurance,transport, processing, supply ofelectrical or other energy, boarding

or lodging or both, [12][housingc o n s t r u c t i o n , ] entertainment,amusement or the purveying a newso r other information, under acontract of personal service;

(p) "State Commission" means aConsumer Disputes RedressalCommission established in the Stateunder clause (b) of section 7;

(q) "trader" in relation to anygoods means a person who sells ordistributes any goods for sale andincludes the manufacturer thereof,and where such goods are sold ordistributed in package from, includesthe packer thereof;

(r) "unfair trade practices" meansa trade practice which for thepurpose of promoting the sale, use orsupply of any goods or for the

provision of any services [13][adoptsany unfair method or unfair ordeceptive practice including any of

the following practices], namely:-

(1) the practices of making anystatement, whether orally or inwriting or by visible representation,which,-

( i ) f a l s e l y r e p r e s e n t s t h a tt h e g o o d s a r e o f a p a r t i c u l a rstandard, quality, grade,composition, style or model;

(ii) falsely represents that theservices are of a particular standard,quality or grade;

(iii) falsely represents any

rebuilt, second hand, renovated,reconditioned or old goods as newgoods;

(iv) represents that the goodsor services have sponsorship,approval, performance,characteristics, accessories, uses orbenefits which such goods or servicesdo not have;

(v) represents that the seller orthe supplier has a sponsorship orapproval or affiliation which suchseller or supplier does not have;

(vi) makes a false or misleading

representation concerning the needfor, or the usefulness of, any goodsor services;

( v i i ) g i v e s t o t h e p u b l i c a n yw a r r a n t y o r g u a r a n t e e o f t h eperformance, efficacy or length of lifeof a product or of any goods that isnot based on an adequate or propertest there:

Provided that where a defence israised to the effect that suchwarranty or guarantee is based onadequate or proper test; the burdenof proof of such defence shall lie on

the person raising such defence;

(viii) makes to the publicrepresentation in a form thatpurports to be-

(i) a warranty orguarantee of a product orof any goods or services;or

(ii) a promise to replace,maintain or repair anarticle or any part thereofor to repeal or continue aservice until it hasachieved a specified

result;

if such purported warranty orguarantee or promise is materiallymisleading or if there is noreasonable prospect that suchwarranty, guarantee or promise willbe carried out;

(ix) materially misleads the publicconcerning the price at which aproduct or like products or goods orservices, have been, or are ordinarilysold or provided, and, for thispurpose, a representation as to priceshall be deemed to refer to the price

at which the product or goods orservices has or have been sold bysellers or provided by suppliersgenerally in the relevant marketunless it is clearly specified to be theprice at which the product has beensold or services have been, providedby the person by whom or on whosebehalf the representation is made;

(x) gives false or misleading factsdisparaging the goods, services ortrade of another person.

Explanation. — For the purposesof clause (1), a statement that is-

(a) expressed on an articleoffered or displayed for sale, orits wrapper or container; or

(b) e x p r e s s e d o n a n y t h i n ga t t a c h e d t o , i n s e r t e d i n , o raccompanying, an articleoffered or displayed for sale, oron anything on which the articleis mounted for displaying orsale; or

(c) contained in or onanything that is sold, sent,delivered, transmitted or in anyother manner whatsoever made

available to a member of thepublic;

shall be deemed to bestatement made to the publicby, and only by, the person whohad caused the statement to beso expressed, made orcontained;

(2) permits the publication of anyadvertisement whether in anynewspaper or otherwise, for the saleor supply at a bargain price, of goodsor services that are not intended tobe offered for sale or supply at the

bargain price, or for a period that is,and in quantities that are,reasonable, having regard to thenature of the market in, which thebusiness is carried on, the nature andsize of business and the nature of theadvertisement.

Explanation. — For the purpose ofclause (2), "bargain price" means

(a) a price that is stated in anyadvertisement to be a bargainprice, by reference to anordinary price or otherwise, or

(b) a p r i c e t h a t a p e r s o n w h o

r e a d s , h e a r s , o r s e e s t h ea d v e r t i s e m e n t , w o u l dr e a s o n a b l y u n d e r s t a n d t o b ea bargain price having regard tothe practices at which theproduct advertised or likeproducts are ordinarily sold;

(3) permits-

(a) the offering of gifts, pricesor other items with theintention of not providing themas offered or creating theimpression that something isbeing given or offered free of

charge when it is fully or partlycovered by the amount chargedin the transaction as a whole;

(b) 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 orany business interest;

(4) permits the sale or supply ofgoods intended to be used, or are ofa kind likely to be used, byconsumers, knowing or having reasonto believe that the goods do not

comply with the standards prescribedby competent authority relating toperformance, composition, con tents,design, constructions, furnishing orpackaging as are necessary toprevent or reduce the risk of injury tothe person using the goods;

(5) permits the hoarding ordestruction of goods, or refuses tos e l l the goods or to make themavailable for sale, or to provide anys e r v i c e , if such hoarding ordestruction or refusal raises or tendsto raise or is intended to raise the

cost of those or other similar goodsor services.

3. Act not in derogation ofany other law

The provisions of this Act shall bein addition to and not in derogationof the provisions of any other law forthe time being in force.

CHAPTER II CONSUMERPROTECTION COUNCILS

4. The State ConsumerProtection Council

( 1 ) The Government may, bynotification in the GovernmentGazette establish with effect fromsuch date as it may specify in suchnotification a Council to be known asthe State Consumer ProtectionCouncil (hereinafter referred to asthe 'State Council').

(2) The State Council shall consist

of the following members, namely:-

(a) the Minister incharge of theDepartment of Food and CivilSupplies in the Government,who shall be its Chairman; and

(b) such number of other officialor non-official membersrepresenting such interests asmay be prescribed.

5. Procedure for meeting ofthe State Council

The State Council shall meet asand when necessary, but not lessthan three meetings of the Councilshall be held every year.

The State council shall meet atsuch time and place as the Chairmanmay think fit and shall observe suchprocedure in regard to thetransaction of its business as may beprescribed.

6. Objects of the StateCouncil

The objects of the State Councilshall be to promote and protect therights of the consumers such as,-

the right to be protected against

the marketing of goods [14][andservices] which are hazardous to lifeand property;

the right to be informed about thequality, quantity, potency, purity,

standard and price of goods [15][orservices as the case may be] so as toprotect the consumer against unfair

trade practices;

the right to be assured, whereverpossible, access to a variety of goods[16][and services] at competitiveprices;

the right to be heard and to beassured that consumers' interests willreceive due consideration atappropriate forums;

the right to seek redressal againstunfair trade practices or

[17][restrictive trade practices] orunscrupulous exploitation of

consumers;

(f) right to consumer education.

[18][6-A. Composition ofDistrict Consumer ProtectionCouncil

The Government may, bynotification in the GovernmentGazette establish with effect fromsuch date as it may specify in suchnotification, a Council to be known asthe District Consumer ProtectionCouncil, which hereinafter shall bereferred to as District Council.

The District Council shall consist ofthe following members, namely:-

Deputy Commissioner of theDistrict, who shall be its Chairman;and such number of other official ornon-official members representingsuch interests as may be prescribed.

The District Council shall meet asand when necessary, but not lessthan four meetings of the Councilshall be held every year,

The objects of the District Councilshall be the same as that of StateCouncil.]

CHAPTER III CONSUMERDISPUTES REDRESSAL

AGENCIES7. Establishment of ConsumerDisputes Redressal Agencies

There shall be established for thepurposes of this Act, the followingagencies, namely;-

(a) a Consumer DisputesRedressal Forum to be knownas the "Divisional Forum"established by the Governmentin each division of the State;

(b) a Consumer DisputesRedressal Commission to bek n o w n as the "StateCommission" established by theGovernment.

8. Composition of the DivisionalForum

(1) Each Divisional Forum shallconsist of:-

(a) a person who is or has beenor is qualified to be a District Judgeto be nominated by the Governmentto be its President.

[19][(b) two members who arepersons of ability, integrity andstanding and have adequateknowledge or experience of dealingwith problems relating to economics,l a w , commerce, accountancy,

industry, public affairs oradministration, one of whom to bepreferably a lady;]

[20][(c) Omitted.]

[21][(1-A) Every appointmentunder sub-section (1) shall be madeby the Government on therecommendation of a SelectionC o m m i t t e e consisting of thefollowing, namely:-

(i) The President of the StateCommission .... Chairman

(ii) The Secretary to Govt., Law

Department .... Member

(iii) The Secretary to Govt., Food,Supplies and Transport Department(Incharge Consumer Affairs) ....Member.]

(2) Every member of theDivisional Forum shall hold office fora term of five years or up to the age

of [22][65 years] whichever is earlierand shall not be eligible for re-appointment:

Provided that a member mayresign his office in writing under hishand addressed to the Government.

On such resignation being accepted,his office shall become vacant andmay be filled by the appointment of aperson possessing any of thequalification mentioned in sub-section (1) in relation to the categoryof the member who has resigned.

(3) The salary or honorarium andother allowance payable to, and theother terms and conditions of service[23][including tenure of office] of themembers of the Divisional Forumshall be such as may be prescribedby the Government.

9. Jurisdiction of the DivisionalForum

(1) Subject to the other provisionsof this Act, the Divisional Forum shallhave jurisdiction to entertaincomplaints where the value of thegoods or services and thecompensation if any, claimed[24][does not exceed rupees fivelakhs.]

(2) A complaint shall be institutedin a Divisional Forum within the locallimits of whose jurisdiction,-

the opposite party or each of the

opposite parties, where there aremore than one, at the time of theinstitution of the complaint, actuallyand voluntarily resides or [carries onbusiness, directly or through a branchoffice] or personally works for gain,or

any of the opposite parties, wherethere are more than one, at the timeof the institution of the complaint,actually and voluntarily resides or [25][carry on business directly orthrough a branch office] or personallyworks for gain, provided that in such

case either the permission of theDivisional Forum is given or theopposite parties who do not reside,

or [26][carry on business directly orthrough a branch office] or personallywork for gain, as the case may be,acquiesce in such institution, or

the cause of action, wholly or inpart, arises.

[27][10. Manner in whichcomplaint shall he made

Complaint in relation to any goodssold or delivered or agreed to be soldor delivered or any service providedor agreed to be provided may befiled with a Divisional Forum by,-

(a) the consumer to whom suchgoods are sold or delivered or agreedto be sold or delivered or suchservice provided or agreed to beprovided;

2 3 6 CONSUMERPROTECTION ACT Sec. 10

any recognised consumerassociation whether the consumer towhom the goods sold or delivered oragreed to be sold or delivered orservices provided or agreed to beprovided is a member of suchassociation or not;

o n e o r m o r e c o n s u m e r s w h e r et h e r e a r e n u m e r o u s consumershaving the same interest, with thepermission of the Divisional Forum onbehalf of or for the benefit of allconsumers so interested;

(d) the Government.

Explanation. — For the purposesof the section "recognised consumerassociation" means any voluntaryassociation registered under theCompanies Act, 1956 or any otherlaw for the time being in force.]

11. Procedure on receipt ofcomplaint

(1) The Divisional Forum shall onreceipt of a complaint, if it relates toany goods, -

(a) refer a copy of the complaintto the opposite partymentioned in the complaintdirecting him to give hisversion of the case within aperiod of thirty days or suchextended period not exceedingfifteen days as may be grantedby the Divisional Forum;

(b) where the opposite partyon receipt of a complaintreferred to him under clause(a) denies or disputes theallegations contained in thecomplaint, or omits or fails totake any action to representhis case within the time givenby the Divisional Forum, theDivisional Forum shall proceedto settle the consumer disputein the manner specified inclauses (c) to (g);

(c) where the complaint

alleges a defect in the goods,whi ch cannot be determinedwithout proper analysis or testof the goods, the DivisionalForum shall obtain a sample oft h e goods from thecomplainant, seal it andauthenticate it in the mannerprescribed and refer thesample so sealed to theappropriate laboratory alongwith a direction that suchlaboratory make an analysis ortest, whichever may benecessary, with a view to

finding out whether such goodssuffer from any defect allegedin the complaint or suffer fromany other defect and to reportits findings thereon to theDivisional Forum within aperiod of forty-five days of thereceipt of the reference orwithin such extended period asmay be granted by theDivisional Forum;

(d) before any sample of thegoods is referred to anyappropriate laboratory under

clause fc), the Divisional Forumm a y require the complainantto deposit to the credit of theForum s u c h f e e s a s m a y b es p e c i f i e d , f o r p a y m e n t t ot h e appropriate laboratory, forcarrying out the necessaryanalysis or test in relation tothe goods in question;

(e) the Divisional Forum shallremit the amount deposited toits credit under clause (d) tothe appropriate laboratory, toenable it to carry out the

analysis or test mentioned inclause (c) and on receipt of thereport from the appropriatelaboratory, the DivisionalForum shall forward a copy oft h e report along with suchremarks as the DivisionalForum may feel appropriate tothe opposite party;

(f) if any of the parties disputesthe correctness of the findingsof the appropriate laboratory,or disputes the correctness ofthe methods of analysis or test

adopted by the appropriatelaboratory, the DivisionalForum shall require theo p p o s i t e party or thecomplainant to submit inwriting his objections in regardto the report made by theappropriate laboratory;

(g) the Divisional Forum shallthereafter give a reasonableopportunity to the complainantas well as the opposite party ofbeing heard as to thecorrectness or otherwise of the

report made by theappropriate laboratory andalso as to the objection madein relation thereto under clause(f) and issue an appropriateorder under section 12.

(2) The Divisional Forum shall, ifthe complaint received by it undersection 10 relates to goods in respectof which the procedure specified insub-section (1) cannot be followed,or if the complaint relates to anyservices-

(a) refer a copy of such

complaint to the opposite partydirecting him to give his versionof the case within a period ofthirty days or such extendedperiod not exceeding fifteendays as may be granted by theDivisional Forum;

(b) where the opposite party onreceipt of a copy of thecomplaint, referred to himunder clause (a) denies ordisputes the allegationscontained in the complaint oromits or fails to take any action

to represent his case within thetime given by the DivisionalForum, the Divisional Forumshall proceed to settle theconsumer disputes,-

(i) on the basis of evidencebrought to its notice by thecomplainant and the opposite party,where the opposite party denies ordisputes the allegations contained inthe complaint, or

(ii) on the basis of evidencebrought to its notice by thecomplainant where the opposite

party omits or fails to take any actionto represent his case within the timegiven by the Forum.

No proceedings complying withthe procedure laid down in sub-sections (1) and (2) shall be called inquestion in any court on the groundthat the principles of natural justicehave not been complied with.

For the purposes of this section,the Divisional Forum shall have thesame powers as are vested in a civilcourt under the Code of CivilProcedure, Samvat 1977 while trying

a suit in respect of the followingmatters, namely:-

( i ) t h e s u m m o n i n g a n de n f o r c i n g t h e a t t e n d a n c e o f a n ydefendant or witness and examiningthe witness on oath;

(ii) the discovery and productionof any document or other materialobject producible as evidence; (hi)the reception of evidence onaffadavits;

(iv) the requisitioning of the reportof the concerned analysis or testfrom the appropriate laboratory or

from any other relevant source;

(v) issuing of any commission forthe examination of any witness; and

(vi) any other matter which maybe prescribed.

(5) Every proceeding before theDivisional Forum shall be deemed tobe a judicial proceeding within themeaning of sections 193 and 228 ofthe Ranbir Penal Code, and theDivisional Forum shall be deemed tobe a civil court for the purposes ofsection 195 and Chapter XVII of theCode of Criminal Procedure, Samvat

1989.

[28][(6) where the complainant isa consumer referred in sub-clause(iv) of clause (b) of section 2, theprovisions of rule 8 of Order 1 of theFirst Schedule to the Code of CivilProcedure, Samvat 1977 shall applysubject to the modification that everyreference therein to a suit or decreeshall be construed as a reference to acomplaint or the order of theDivisional Forum thereon.]

12. Finding of the DivisionalForum

(1) If, after the proceedingconducted under section 11, theDivisional Forum is satisfied that thegoods complained against suffer fromany of the defect specified in thecomplaint or that any of theallegations contained in thecomplaint about the services areproved, it shall issue an order to theopposite party directing him to[29][do] one or more of the followingthings, namely: -

t o r e m o v e t h e d e f e c t p o i n t e do u t b y t h e a p p r o p r i a t e laboratoryfrom the goods in question;

to replace the goods with newgoods of similar description whichshall be free from any defect;

to return to the complainant theprice, or as the case may be, thecharges paid by the complainant;

(d) to pay such amount as maybe awarded by it as compensation tothe consumer for any loss or injurysuffered by the consumer due to thenegligence of the opposite party;

[30][(e) to remove the defects ordeficiencies in the services inquestion;

(f) to discontinue the unfair tradepractice or the restrictive tradepractice or not to repeat them;

(g) not to offer the hazardousgoods for sale;

(h) to withdraw the hazardousgoods from being offered for sale;

(i) to provide for the adequatecosts to parties.]

[31][(2) Every order made by the

Divisional Forum under sub-section(1) shall be signed by the majority ofmembers constituting it and it shallbe deemed to be the order of theDivisional Consumer Forum:

Provided that where theproceeding is conducted by thePresident and one member and theydiffer on any points, they shall statethe point or points on which theydiffer and refer the same to othermember for hearing on such point orpoints and the opinion of themajority shall be the order of the

Divisional Forum.]

(3) Subject to the foregoingprovisions, the procedure relating tothe conduct of the meetings of theDivisional Forum, its sitting and othermatters shall be such as may beprescribed by the Government.

13. Appeal

Any person aggrieved by an ordermade by the Divisional Forum mayprefer an appeal against such orderto the State Commission within aperiod of thirty days from the date ofthe order in such form and manner asmay be prescribed:

Provided that the StateCommission may entertain an appealafter the expiry of the said period ofthirty days if it is satisfied that therewas sufficient cause for not filing itwithin that period:

[32][Provided further that noappeal shall lie unless thememorandum of appeal isaccompanied by a certificate issuedby the President

Divisional Forum to the effect thatappellant has deposited with him25% of the amounts payable underthe order.]

14 Composition of the StateCommission

(1) Each State Commission shallconsist of-

(a) a person who is or has been aJudge of a High Court, appointed bythe Government, who shall be itsPresident;

[33][(b) two or more memberswho shall be persons of ability,integrity and having adequateknowledge of law and experience inlaw and consumer affairs:

Provided that every appointment

made under this section shall bemade by the Government on therecommendation of the SelectionCommittee consisting of thefollowing, namely: -

(i) Chief Secretary ....Chairman.

(ii) Secretary to Government, LawDepartment .... Member

(iii) Secretary to Government,Food and Supplies Department

(Incharge Consumer Affairs) ....Member.]

(2) The salary or honorarium andother allowances payable to, and theother terms and conditions of service(including tenure of office) of, themembers of the State Commissionshall be such as may be prescribedby the Government.

15. Jurisdiction of the StateCommission

Subject to the other provisions ofthis Act, the State Commission shallhave jurisdiction-

(a) to entertain-

(i) complaints where the value ofthe goods or services andcompensation, if any, claimed

exceeds [34][rupees five lakhs]; and

(ii) appeals against the orders ofDivisional Forum within the State;and

(b) to call for the records and passappropriate orders in any consumerdispute which is pending before orhas been decided by any DivisionalForum within the State, where itappears to the State Commissionthat such Divisional Forum hasexercised a jurisdiction not vested init by law, or has failed to exercise ajurisdiction so vested or has acted inexercise of its jurisdiction illegally orwith material irregularity.

16. Procedure applicable toState Commission

The procedure specified insections 10, 11 and 12 and under therules made thereunder for thedisposal of complaints by theDivisional Forum shall, with suchmodifications as may be necessary,be applicable to the disposal ofdisputes by the State Commission.

[35][16-A. Validity of orders

Notwithstanding anythingcontained in section 16 no orderpassed by the State Commission andDivisional Forum shall be called inquestion simply on the ground that ithas not been signed by all themembers of the Divisional Forum orthe State Commission, as the casemay be, and all such orders shall beand shall always be deemed to havebeen validly passed if signed by themajority of the members.]

17. Appeals

Any person aggrieved by anyorder by the State Commission inexercise of its powers conferred bysub-clause (i) of clause (a) of section15 may prefer an appeal against suchorder to the High Court within aperiod of thirty days from the date ofthe order in such form and manner asmay be prescribed:

1 [Provided that such appeal shallbe heard by not less than two Judgesof the High Court:

Provided further that the High

Court may entertain an appeal afterthe expiry of the said period of thirtydays if it is satisfied that there wassufficient cause for not filing it withinthat period:

Provided also that no appeal shalllie unless the memorandum ofappeal is accompanied by acertificate issued by the Chairman,State Commission to the effect thatthe appellant has deposited 25% oft h e amount payable under theorder.]

18. Finality of orders

Every order of a Divisional Forum,or the State Commission shall if noappeal has been preferred againstsuch order under the provisions ofthis Act, be final.

[36][18-A. Limitation period

(1) The Divisional Forum or theState Commission may not admit acomplaint unless it is filed within twoyears from the date on which thecause of action arises.

(2) Notwithstanding anythingcontained in sub-section (1), acomplaint may be entertained afterthe period specified in sub-section(1) if the complainant satisfies theDivisional Forum or the StateCommission, as the case may be,that he had sufficient cause for not

filing the complaint within suchperiod:

Provided that no such complaintshall be entertained unless theDivisional Forum or the StateCommission, as the case may be,records its reason for condoning suchdelay.]

19. Enforcement of order bythe Forum or the StateCommission

Every order made by theDivisional Forum, or the StateCommission may be enforced by theDivisional Forum, or the StateCommission as the case may be inthe same manner as if it were adecree or order made by a court in asuit pending therein and it shall belawful for the Divisional Forum or theState Commission to send in theevent of its inability to execute it,such order to the Court within the

local limits of whose jurisdiction-

(a) in the case of an orderagainst a company, ther e g i s t e r e d office of thecompany is situated, or

(b) in the case of an orderagainst any other person, theplace where the personconcerned voluntarily resides orc a r r i e s on business orpersonally works for gain, issituated,

and thereupon, the court to whichthe order is so sent, shall execute the

order as if it were a decree or ordersent to it for execution.

[37][20. Dismissal of frivolousor vexatious complaints

Where a complaint institutedbefore the Divisional Forum or theState Commission, as the case maybe, is found to be frivolous orvexatious, it shall, for reasons to berecorded in writing, dismiss thecomplaint and make an order thatthe complainant shall pay to theopposite party such cost, notexceeding ten thousand rupees, asmay be specified in the order.]

21. Penalties

Where a trader or person against

whom a complaint is made [38][orthe complainant] fails or omits tocomply with any order made by theDivisional Forum or the StateCommission, as the case may be,s u c h trader or person shall bepunishable with imprisonment for aterm which shall not be less than onemonth but which may extend tothree years, or with fine which shallnot be less than two thousand rupeesbut which may extend to ten

thousand rupees, or with both :

Provided that the DivisionalForum, or the State Commission, asthe case may be, may if it is satisfiedthat the circumstances of any case sorequire, impose a sentence ofimprisonment or fine, or both, for aterm lesser than the minimum termand amount lesser than the minimumamount specified in this section.

CHAPTER IV22. Protection of action taken good faith

No suit, prosecution or other legalproceedings shall lie against themembers of the Divisional Forum orthe State Commission or any Officeror person acting under the directionof the Divisional Forum or the StateCommission for executing any ordermade by it or in respect of anythingwhich is in good faith done orintended to be done by suchmember, officer of person under this

Act, or under any rule or order madethereunder.

23. Power to removedifficulties

(1) If any difficulty arises in givingeffect to the provisions of this Act,the Government may, by order in theGovernment Gazette make suchprovisions not inconsistent with theprovisions of this Act as appear to itto be necessary or expedient forremoving the difficulty:

Provided that no such order shallbe made after the expiry of a periodof two years from thecommencement of this Act.

(2) Every order made under thissection shall, as soon as may be afterit is made, be laid before each Houseof the State Legislature.

[39][23-A. Vacancies of defectsin appointment not to invalidateo r d e r s

No act or proceeding of theDivisional Forum or the StateCommission, as the case may be,shall be invalid by reason only of theexistence of any vacancy amongst itsmembers or any defect in theconstitution thereof.]

24. Power to make rules

The Government may, bynotification, make rules for carryingout the provisions contained in clause(b) of sub-section (2) of section 4,sub-section (2) of section 5, sub-section (3) of section 8, clause (c) ofsub-section (1) and clause (b) of sub-section (4) of section 11, sub-section(3) of section 12, section 13, sub-section (2) of section 14 of this Act.

25. Laying of rules

Every rule made by theGovernment under this Act shall belaid, as soon as may be after it ismade, before each House of theState Legislature, while it is insession, for a total period of thirtydays which may be comprised in onesession or in two or more successivesessions, and if, before the expiry ofthe session immediately followingthe session or the successivesessions aforesaid, both Housesagree in making any modification in

the rule or both Houses agree thatthe rule should not be made, the ruleshall thereafter have effect only insuch modified form or be of no effect,as the case may be, so, however,that any such modification orannulment shall be without prejudiceto the validity of anything previouslydone under that rule.

***

[1] Enforced vide SRO-379 dated 14.12.1988w.e.f. 15.12.1988,

[2] Inserted by Act XIX of 1997.[3] Clause (iv) inserted ibid.[4] Substituted by Act No. XI of 1997, s. 2.[5] Ibid[6] Ibid[7] Clase (v) Inserted ibid[8] Substituted by Act XIX of 1997, s. 2.[9] Inserted ibid.[10] Inserted by Act XIX of 1997, s.2.[11] Inserted ibid.[12] Inserted by Act XIX of 1997, s. 2.[13] Substituted ibid.[14] Inserted by Act XIX of 1997, s.3.[15] Inserted by Act XIX of 1997, s.3.[16] Inserted by Act XIX of 1997, s.3.[17] Inserted by Act XIX of 1997, s.3.

[18] Inserted by Act XIX of 1997.[19] Substituted by Act XIX of 1997.[20] Clause (c) omitted ibid.[21] Inserted ibid.[22] The figure & word "65 years"substituted by Act XV of 1989, S. 2.[23] Inserted by Act XIX of 1997, S. 5[24] Substituted Act XIX of 1997.[25] Inserted by Act XIX of 1997.s[26] Inserted by Act XIX of 1997.[27] .Substituted Act XIX of 1997.[28] Inserted by Act XIX of 1997, s8.[29] Substituted by Act XIX of 1997, S.9.[30] Inserted by Act XIX of 1997.[31] Substituted ibid, S.10.[32] Inserted by Act XIX of 1997.

[33] Substituted by Act XIX of 1997.[34] Substituted by Act XIX of 1997, s.l 2.[35] Substituted by Act XIX of 1997.[36] Inserted by Act XIX of 1997.[37] Substituted by Act XIX of 1997.[38] Substituted by Act XIX of 1997.[39] Inserted by Act XIX of 1997 S.18.