9. Establishment of Consumer Disputes Redressal Agencies
There shall be established for the purposes of this Act, the following agencies, namely,-
(a) a Consumer Disputes Redressal Forum to be known as the "District Forum" established by
the State Government 3[* * *] in each district of the State by notification:
2[PROVIDED that the State Government may, if it deems fit, establish more than one District
Forum in a district;
(b) a Consumer Disputes Redressal Commission to be known as the "State Commission"
established by the State Government 3[* * *] in the State by notification; and
(c) a National Consumer Disputes Redressal Commission established by the Central Government
by notification.
10. Composition of the District Forum
1[(1) Each District Forum shall consist of-
(a) a person who is, or 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.
2[(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,-
(i) the President of the State Commission-Chairman,
(ii) Secretary, Law Department of the State-Member,
(iii) 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 subsection (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
1[does not exceed rupees five lakhs].
(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction-
(a) 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 1[carries on business, or has
a branch office or] personally works for gain; or
(b) 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 1[carries on business or has a branch office, or
personally works for gain:
PROVIDED that in such case either the permission of the District Forum is given, or the opposite
parties who do not reside, or 1[carry on business or have a branch office, or personally work for
gain, as the case may be, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
1[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 a District Forum, by-
(a) 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;
(b) any recognised consumers association whether the consumer to whom the goods sold or
delivered or service provided or agreed to be provided is a member of such association or not; or
(c) 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 so
interested; or
(d) the Central or the State Government.
13. Procedure on receipt of complaint
(1) The District Forum shall, on receipt of a complaint, if it relates to any goods-
(a) 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;
(b) 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);
(c) 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 the 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 with a
view to finding out whether such goods suffer from any defect alleged in the complaint or suffer
from any other defect and to report its findings 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;
(d) 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 payment to the appropriate laboratory for carrying out the necessary
analysis or test in relation to the goods in question;
(e) 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;
(f) 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 the complainant to submit in writing his
objections in regard to the report made by the appropriate laboratory;
(g) 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 objection 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,-
(a) 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;
(b) where the opposite party, on receipt of a copy of the 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,-
(i) on the basis of evidence brought to its notice by the complainant and the opposite party, where
the opposite party denies or disputes the allegation contained in the complaint, or
(ii) 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 in question in any court on the ground that the principles of natural justice have not been
complied with.
(4) For the purposes of this section, the District Forum shall have the same powers as are vested
in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of
the following matters, namely,-
(i) the summoning and enforcing attendance of any defendant or witness and examining the
witness on oath;
(ii) the discovery and production of any document or other material object producible as evidence;
(iii) the reception of evidence on affidavits;
(iv) the requisitioning of the report of the concerned analysis or test from the appropriate
laboratory or from any other relevant source;
(v) issuing of any commission for the examination of any witness; and
(vi) 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 228 of the Indian Penal Code (45 of 1860), and the District
Forum shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of
the Code of Criminal Procedure, 1973 (2 of 1974).
2[(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of subsection (1) of section 2, the provisions of Rule 8 of Order I of Schedule I to the Code of Civil
Procedure, 1908 (5 of 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 1[do] one or more of the following things, namely,-
(a) to remove the defect pointed out by the appropriate laboratory from the goods in question;
(b) to replace the goods with new goods of similar description which shall be free from any defect;
(c) to return to the complainant the price, or, as the case may be, the charges paid by the
complainant;
(d) 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.
2[(e) to remove the defects or deficiencies in the services in question;
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;
(g) not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;
(i) to provide for adequate costs to parties.]
4[(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 such 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 proceedings:
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 members 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 finding it within that period.
16. Composition of the State Commission
(1) Each State Commission shall consist of-
(a) a person who is or has been a Judge of a High Court, appointed by the State Government,
who shall be its President:
2[PROVIDED that no appointment under this clause shall be made except after consultation with
the Chief Justice of the High Court.
(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:
2[PROVIDED that every appointment under this clause shall be made by the State Government
on the recommendation of a selection committee consisting of the following, namely,-
(i) President of the State Commission-Chairman,
(ii) Secretary of the Law Department of the State-Member
(iii) Secretary in-charge of the 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 3[* * *] of the members of the State Commission shall be such as may be
prescribed by the State Government.
2[(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, whichever is earlier and shall not be eligible for re-appointment.
(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) Act, 1993,
shall continue to hold such office as President or member, as the case may be, till the 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-
(i) complaints where the value of the goods or services and compensation, if any, claimed
exceeds rupees 1[five lakhs but does not exceed rupees twenty lakhs;] and
(ii) 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 on its jurisdiction illegally or with
material irregularity.
18. Procedure applicable to State Commission
1[The provisions of sections 12, 13 and 14 and the rules made thereunder] for the disposal of
complaint by the Districts Forum shall, with such modification as may be necessary, be applicable
to the disposal of disputes by the State Commission:
5[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 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 filing it within that
period.