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TMI BlogCONSUMER COMPLAINT BEFORE STATE COMMISSIONX X X X Extracts X X X X X X X X Extracts X X X X ..... CONSUMER COMPLAINT BEFORE STATE COMMISSION - By: - Mr. M. GOVINDARAJAN - Other Topics - Dated:- 15-3-2021 - - State Consumer Disputes Redressal Commission Section 42 of the Consumer Protection Act, 2019 provides that the State Government shall, by notification, establish a State Consumer Disputes Redressal Commission ( State Commission for short) to be known as the State Commission, in the State. The State Commission shall ordinarily function at the State capital and perform its functions at such other places as the State Government may in consultation with the State Commission notify in the Official Gazette. The State Government may, by notification, establish regional benches of the State Commission, at such places, as it deems fit. Each State Commission shall consist of a President and not less than four or not more than such number of members as may be prescribed in consultation with the Central Government. Jurisdiction The State Commission shall have jurisdiction to entertain- complaints where the value of the goods or services paid as consideration, exceeds rupees one crore, but does not exceed ₹ 10 crore; where the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Government deems it necessary so to do, it may prescribe such other value, as it deems fit; complaints against unfair contracts, where the value of goods or services paid as consideration does not exceed ₹ 10 crores; appeals against the orders of any District Commission within the State. Institution of complaint A complaint shall be instituted in a State Commission within the limits of whose jurisdiction- the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, ordinarily resides or carries on business or has a branch office or personally works for gain; or 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 carries on business or has a branch office or personally works for gain, provided in such case, the permission of the State Commission is given; or the cause of action, wholly or in part, arises; or the complainant resides or personally works for gain. Limitation The State Commission shall not admit a complaint unless i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is filed within two years from the date on which the cause of action has arise. A complaint may be entertained after the period, if the complainant satisfies the State Commission that he had sufficient cause for not filing the complaint within such period. No such complaint shall be entertained unless the State Commission records its reasons for condoning such delay. Who may file complaint? 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 the State Commission by- the consumer,- to whom such goods are sold or delivered or agreed to be sold or delivered or such service is provided or agreed to be provided; or who alleges unfair trade practice in respect of such goods or service; any recognized consumer association, whether the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service is provided or agreed to be provided, or who alleges unfair trade practice in respect of such goods or service, is a member of such association or not; one or more consumers, where ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are numerous consumers having the same interest, with the permission of the State Commission, on behalf of, or for the benefit of, all consumers so interested; or the Central Government, the Central Authority or the State Government. Fee for making complaints Every complaint filed shall be accompanied by a fee, as specified below, in the form of crossed Demand Draft drawn on a nationalized bank or through a crossed Indian Postal Order in favor of the Registrar of the State Commission and payable at the respective place where the State Commission or the through electronic mode as per arrangement made by the Commission concerned: Above ₹ 1 crore and up to ₹ 2 crores = ₹ 2500/-; Above ₹ 2 crores and up to ₹ 4 crores= ₹ 3000/-; Above ₹ 4 crores and up to ₹ 6 crores=₹ 4000/-; Above ₹ 6 crores and up to ₹ 8 crores = ₹ 5000/-; Above ₹ 8 crores and up to ₹ 10 crores=₹ 6000/-. The State Commission shall credit the amount of fee received by it to the Consumer Welfare Fund of the State and where such Consumer Welfare Fund is not established, into the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate account of the State Government. Admission of complaint On receipt of a complaint, the State Commission may, by order, admit the complaint for being proceeded with or reject the same. A complaint shall not be rejected under this section unless an opportunity of being heard has been given to the complainant. The admissibility of the complaint shall ordinarily be decided within 21 days from the date on which the complaint was filed. If the State Commission does not decide the issue of admissibility of the complaint within the period so specified, it shall be deemed to have been admitted. Reference to mediation At the first hearing of the complaint after its admission, or at any later stage, if it appears to the State Commission that there exists elements of a settlement which may be acceptable to the parties, except in such cases as may be prescribed, it may direct the parties to give in writing, within five days, consent to have their dispute settled by mediation. Where the parties agree for settlement by mediation and give their consent in writing, the State Commission shall, within 5 days of receipt of such consent, refer the matter for mediat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, Procedure on admission of complaint The State Commission shall, on admission of a complaint, or in respect of cases referred for mediation on failure of settlement by mediation, proceed with such complaint. Complaint relating to goods Where the complaint relates to any goods, the State Commission shall,- refer a copy of the admitted complaint, within 21 days from the date of its admission to the opposite party mentioned in the complaint directing him to give his version of the case within a period of 30 days or such extended period not exceeding 15 days as may be granted by it; if 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 State Commission, proceed to settle the consumer dispute in the manner specified in clauses (c) to (g); if the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, obtain a sample of the goods from the complainant, seal it and authenticate it in the manner a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s may be prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory to make an analysis or test, whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the State Commission within a period of 45 days of the receipt of the reference or within such extended period as may be granted by it; before any sample of the goods is referred to any appropriate laboratory under clause (c), require the complainant to deposit to the credit of the Commission 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; 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, it shall forward a copy of the report along with such remarks as it may feel appropriate to the opposite party; if any of the parties disputes the correctness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... findings of the appropriate laboratory, or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, require the opposite party or the complainant to submit in writing his objections with regard to the report made by the appropriate laboratory; 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. Complaint relating to services The State Commission shall, if the complaint admitted by it relates to goods in respect of which the procedure specified above cannot be followed, or if the complaint relates to any services,- refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of 30 days or such extended period not exceeding 15 days as may be granted by the State Commission; if the opposite party, on receipt of a copy of the complaint denies or disputes the allegations contained in the complaint, or omits or fails to take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any action to represent his case within the time given by the State Commission, it shall proceed to settle the consumer dispute- on the basis of evidence brought to its notice by the complainant and the opposite party, if the opposite party denies or disputes the allegations contained in the complaint, or ex parte 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 Commission; decide the complaint on merits if the complainant fails to appear on the date of hearing. No proceedings complying with the procedure laid down as above shall be called in question in any court on the ground that the principles of natural justice have not been complied with. Service of notice All notices, required by this Act to be served, shall be served by delivering or transmitting a copy thereof by registered post acknowledgment due addressed to opposite party against whom complaint is made or to the complainant by speed post or by such courier service, approved by the State Commission, or by any other mode of transmissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of documents including electronic means. The notice required by this Act may be served on an electronic service provider at the address provided by it on the electronic platform from where it provides its services as such and for this purpose, the electronic service provider shall designate a nodal officer to accept and process such notices. When an acknowledgment or any other receipt purporting to be signed by the opposite party or his agent or, as the case may be, by the complainant is received by the State Commission or postal article containing the notice is received back by State Commission with an endorsement purporting to have been made by a postal employee or by any person authorized by the courier service to the effect that the opposite party or his agent or complainant had refused to take delivery of the postal article containing the notice or had refused to accept the notice by any other means when tendered or transmitted to him, the State Commission shall declare that the notice has been duly served on the opposite party or to the complainant, as the case may be. All notices required to be served on an opposite party or to complainant, as the case may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, shall be deemed to be sufficiently served, if addressed in the case of the opposite party, to the place where business or profession is carried on, and in case of the complainant, the place where such person actually and voluntarily resides. Hearing Every complaint shall be heard by the State Commission on the basis of affidavit and documentary evidence placed on record. Where an application is made for hearing or for examination of parties in person or through video conferencing, the State Commission may, on sufficient cause being shown, and after recording its reasons in writing, allow the same. Advice of experts Where the State Commission, on an application by a complainant or otherwise, is of the opinion that it involves the larger interest of consumers, it may direct any individual or organization or expert to assist the State Commission. Adjournment No adjournment shall ordinarily be granted by the State Commission unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by the Commission. The State Commission shall make such orders as to the costs occasioned by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djournment as may be specified by regulations. Time limit for disposal of complaint Every complaint shall be disposed of as expeditiously as possible and endeavor shall be made to decide the complaint within a period of 3 months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities. In the event of a complaint being disposed of after the period so specified, the State Commission shall record in writing, the reasons for the same at the time of disposing of the said complaint. During the pendency of any proceeding before the State Commission, if it appears necessary, it may pass such interim order as is just and proper in the facts and circumstances of the case. Powers of State Commission The State Commission shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:- the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath; requiring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the discovery and production of any document or other material object as evidence; receiving of evidence on affidavits; the requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source; issuing of commissions for the examination of any witness, or document; and any other matter which may be prescribed by the Central Government. The State Commission shall have power to require any person, - to produce before it such book, account, document or commodity which is in the custody or under the control of such person, if it is required for the purposes of any proceedings before it, and allow the same to be examined and kept by such officer of the Commission as it may specify in this behalf; to furnish to the officer specified in clause(a), such information as may be required for the purposes of any proceedings before it. Where during any proceedings under this Act the State Commission has any ground to believe that any book, paper, commodity or document which may be required to be produced in such proceedings, are being or may be, destroyed, mutilated, altered, falsified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or secreted, it may, by written order, authorize any officer to exercise the power of entry and search of any premises, and seizure of any book, paper, document or commodity as may be required for the purposes of such proceeding. Such seizure shall be communicated to the State Commission as soon as it is made or within a period not exceeding 72 hours of making such seizure after specifying the reasons in writing for making such seizure. The State Commission on examination of such seized documents or commodities may order the retention thereof or may return it to the party concerned. Findings of State Commission Where the State Commission 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 or any unfair trade practices, or claims for compensation under product liability are proved, it shall issue an order to the opposite party directing him to do one or more of the following, namely:- to remove the defect pointed out by the appropriate laboratory from the goods in question; to replace the goods with new goods of similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... description which shall be free from any defect; to return to the complainant the price, or, as the case may be, the charges paid by the complainant along with such interest on such price or charges as may be decided; 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: the State Commission shall have the power to grant punitive damages in such circumstances as it deems fit; to pay such amount as may be awarded by it as compensation in a product liability action; to remove the defects in goods or deficiencies in the services in question; to discontinue the unfair trade practice or restrictive trade practice and not to repeat them; not to offer the hazardous or unsafe goods for sale; to withdraw the hazardous goods from being offered for sale; to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature; to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identifiable conveniently; to issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement; to provide for adequate costs to parties; and to cease and desist from issuing any misleading advertisement. Every order made by the State Commission shall be signed by the President and the member who conducted the proceeding. Where the order is made as per majority opinion such order shall also be signed by the other member. The State Commission may also declare any terms of contract, which is unfair to any consumer, to be null and void. In any proceeding conducted by the President and a member and if they differ on any point or points, they shall state the point or points on which they differ and refer the same to another member for hearing on such point or points and the opinion of the majority shall be the order of the State Commission. Review by State Commission The State Commission shall have the power to review any of the order passed by it if there is an error apparent on the face of the record, either of its ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n motion or on an application made by any of the parties within 30 days of such order. Finality of order Every order of the State Commission shall, if no appeal has been preferred against such order under the provisions of this Act, be final. Enforcement of order Every order made by a State Commission shall be enforced by it in the same manner as if it were a decree made by a Court in a suit before it and the provisions of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 shall, as far as may be, applicable, subject to the modification that every reference therein to the decree shall be construed as reference to the order made under this Act. Penalty for non compliance of order Whoever fails to comply with any order made by he State Commission shall be punishable with imprisonment for a term which shall not be less than one month, but which may extend to 3 years, or with fine, which shall not be less than ₹ 25000/- , but which may extend to ₹ 1 lakh, or with both. Appeal before State Commission Any person aggrieved by an order made by the District Commission may prefer an appeal against s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch order to the State Commission on the grounds of facts or law within a period of forty-five days from the date of the order, in such form and manner, as may be prescribed. The State Commission may entertain an appeal after the expiry of the said period of 45 days, if it is satisfied that there was sufficient cause for not filing it within that period. No appeal by a person, who is required to pay any amount in terms of an order of the District Commission, shall be entertained by the State Commission unless the appellant has deposited 50% of that amount in the manner as may be prescribed. An appeal filed before the State Commission shall be heard as expeditiously as possible and every endeavor shall be made to dispose of the appeal within a period of 90 days from the date of its admission. No adjournment shall ordinarily be granted by the State Commission unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by such Commission. The State Commission shall make such orders as to the costs occasioned by the adjournment, as may be specified by regulations. In the event of an appeal being disposed of after the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod so specified, the State Commission shall record in writing the reasons for the same at the time of disposing of the said appeal. The procedure in filing appeal before the State Commission is as below- A Memorandum shall be presented by the appellant or his authorized agent to the State Commission in person or sent by a registered post with acknowledgment due addressed to the State Commission. Every memorandum shall preferably be typed, or be in legible handwriting, and shall set forth concisely under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively. Each memorandum shall be accompanied by the certified copy of the order of the District Commission appealed against and such of the documents, as may be required to support grounds of appeal mentioned in the memorandum. When the appeal is presented after the expiry of the period of limitation the memorandum shall be accompanied by an application supported by an affidavit setting forth the facts on which appellant relies upon to satisfy the State Commission that he has sufficient cause for not preferring the appeal within the period of li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitation. The appellant shall submit four copies of the memorandum to the State Commission for official purposes. On the date of hearing or any other day to which hearing may be adjourned, the parties or their authorized agents shall appear before the State Commission, and where- the appellant or his authorized agent fails to appear, State Commission may, in its discretion, either dismiss the appeal or decide it ex-parte on the merits of the case; the respondent or his authorized agent fails to appear, the State Commission shall proceed ex-parte and decide the appeal on the merits of the case. The appellant shall not, except by the leave of the State Commission, urge or be heard in support of any ground of appeal not set forth in the memorandum, but the State Commission in deciding the appeal, need not confine itself to the grounds of appeal set forth in the memorandum or taken by leave of the State Commission. The State Commission shall not rest its decision on any other grounds unless the party who may be affected thereby, has been given, at least the opportunity of being heard by the State Commission. No adjournment shall ordinarily be granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any stage by the State Commission, unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by the State Commission. The State Commission shall not ordinarily grant more than one adjournment and shall ensure, as far as possible, that the appeal is decided within ninety days from the date of admission. In the event of an appeal being disposed of after the period specified the State Commission shall record in writing the reasons for the same at the time of disposal of the said appeal. The order of the State Commission on appeal shall be signed and dated by the members of the State Commission constituting the Bench and shall be communicated to the parties concerned free of cost. Appeal against the order of State Commission Any person aggrieved by an order made by the State Commission may prefer an appeal against such order to the National Commission within a period of 30 days from the date of the order in such form and manner as may be prescribed. The National Commission shall not entertain the appeal after the expiry of the said period of 30 days unless it is satisfied that there was sufficient cause for not fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng it within that period. No appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited 50% of that amount in the manner as may be prescribed. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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