Consumer Disputes and Complaints
Last updated on 12/04/2020A customer can lodge a case in consumer court against a service provider or a seller in case of faulty product delivery, improper service or harassment. The government of India controls the judiciary hearings regarding consumer grievances. Below we will discuss about the entire procedure to file a complaint in consumer court.
All you need to know about Consumer Court in India
Consumer Protection Act, 1986 has established Consumer Court in order to redress and compensate disputes in India. These courts are divided into three categories depending on the monetary transaction limit. If the transaction amount is below 20 lacs, the case is handled by District Forum. Similarly State and National Commissions handles the cases of between 20 lacs to 1 crore and above 1crore respectively.
Consumers are eligible to receive quality products and standard services. But in numerous situations, consumers become victims of flawed goods or substandard services. To compensate the customers for defective products and provide a redressal technique the Consumer Protection Act was passed in 1986.
Consumer rights are those rights belonging to a consumer that to protect him/her from being cheated by a salesman/manufacturer. The Consumer Protection Laws of India ensure fair trade and well-being of the consumer in the market. A consumer can be defined as a person who purchase goods or services for his own use and to resell or use such goods in production and manufacturing.
According to Section 2(1)(e) of the Consumer Protection Act, ‘ a Consumer Dispute’ means a dispute where a person against whom a complaint has been made, denies or disputes the allegations contained in the complaint. If the other party agrees to the complaint, dispute ceases.
Generally, laws in relation to product or service liability differ from nation to nation. The main objective of product or service liability is protection and safety of the consumer even if the consumer is himself responsible for his own loss. Product liability generally involves claims against companies and business organizations including retailers, marketers and manufacturers.
Often, we come across situations where a particular company make various promises in order to sell products but seldom fail to keep such promises. For example, x purchases a mixer grinder from M/s Y & Co. operating in the same town. The grinder malfunctions within the warranty period of 1 year. Both the manufacturer and the seller failed to rectify mixer grinder.
To tackle such day to day problems which a consumer suffers, Consumer Rights were created to protect the rights of the consumers. The Consumer Protection Act, 1986 was enacted to ensure speedy redressal of consumer grievances.
In order to ensure protection and promotion of consumers, a three tier quasi judicial machinery was enacted at the national, state and district level. The National Commission deals with complaints involving costs higher than INR 1 crore. Similarly, the State Commission and the District Forum deals with complaints involving costs between INR 20 lakhs and INR 1 crore and less than INR 20 lakhs, respectively. The consumers can file cases depending upon the cost along with the documents required for filing the complaint.
The Consumer Courts may seem to be quasi-judicial Tribunals, however every order made by the District Forum, State Commission or National Commission is enforced like a decree of the Court. The order passed shall be binding on all the parties. If any such person fails to comply with the order passed by the District Forum, State Commission or National Commission, then he may be punished with
Imprisonment from 1 month to 3 years; Fine raging between INR 2000 to INR 10000;Or both.
Eligibility criteria to file a complaint
- Certainly, a consumer only can make a complaint, but to do that, he or she needs to fulfill two conditions-
- The consumer has paid money to purchase products or availed services in exchange of money.
- The person have purchased the product for personal use only and not for resale purpose.
- A registered voluntary consumer association under Companies Act or other law.
- The Government, be it central or state.
- Consumers with same interest.
- Legal heir or relative of a deceased consumer.
A complaint is a written allegation and thus, the complainant must fall under the definition of a consumer.
Conditions to lodge a complaint
- Unfair or restricted trade practice by a service provider.
- Defective or substandard products, which is already bought or agreed to be purchased by the consumer.
- Service Deficiency, whether hired or confirmed to be hired.
- Overcharging of goods when the price is fixed by the law, displayed on packaging or agreed between both parties.
- Selling goods that are hazardous for life, safety and property.
Different Consumer Forums responsible for redressal and consumer protection:
When it is determined to file a case, consumer needs to estimate the monetary transaction limit. Based on the pecuniary limit, Consumer Forum is categorized into three tier format.
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District Consumer Disputes Redressal Forum (DCDRF)
Each district has a Forum consisted of 3 members each. When the amount is under 20 lakhs, DCDRF orders to file an appeal in SCDRC.
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State Consumer Disputes Redressal Commission(SCDRC)
If the pecuniary value is between 20 lakhs to 1 crore, then an appeal is filed from SCDRC order to NCDRC. This commission is established in every state.
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National Consumer Disputes Redressal Commission(NCDRC)
This forum is situated in New Delhi and considered as the highest tier of Redressal system. If the value of the claim exceeds 1 crore then the jurisdiction lies in hands of NCDRC. Also, an appeal from NCDRC order lies to Supreme Court.
Procedure to file a case in the consumer court
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Intimation
The aggrieved party sends a notice to service provider who sold the product. This notice informs about the intention of the customer to take action for receiving substandard or defective goods. It is an attempt for settlement between both parties without going to Forum.
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Drafting of the complaint
If the seller or service provider is not ready to offer compensation, a formal complaint is lodged under Consumer Protection The process doesn’t necessarily need a lawyer and can be dealt by the customer himself. The customer must mention the following details:
- Name, address and description of both the parties.
- Cause of action, approximate date, time and place.
- Relevant causes behind the action.
- The compensation or remedy claimed by the consumer.
- Signature of the complainant or authorized lawyer.
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Attach required documents
Materialistic evidence and documents are required to support your complaint to produce in the court. They include-
- Copy of bill, delivery receipt, packaging, record of online booking.
- Warranty/Guarantee cards.
- Copy of the written complaint and notice.
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Appropriate Commission
The consumer needs to choose the proper forum to file the complaint according to pecuniary jurisdiction i.e. the total value of product or service availed. Mention the compensation amount that is fixed.
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Pay court fee
A certain amount of money is needed to be paid along with the complaint. The amount depends on the type of the forum, the value of the product bought and the compensation sought.
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Submit Affidavit
While filing the case it is necessary to submit an affidavit in the court. It is the proof that the facts described by the complainant are true to their knowledge.
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