Complaint Before District Commission | Law of Torts - CLAT PG PDF Download

Procedure in a Complaint Before District Commission

Sections 36 to 39 of the Consumer Protection Act, 2019 outline the procedure for handling complaints at the District Commission level.

Admission or Rejection of the Complaint (Section 36)

• When a complaint is filed with the District Commission, it has the option to either admit or reject the complaint.
• If the complaint is admissible and appears to have merit, it should be admitted.
• A complaint will be admitted if it meets the following criteria:
• Within the limitation period
• Proper court fee is paid
• Complainant has the right to make the complaint (locus standi)
• Relief sought is within the Commission's jurisdiction
• Complaint is in the proper form
• If any of these criteria are not met, the complaint will be rejected. However, the complainant must be given a reasonable opportunity to be heard before rejection.
• The Commission is expected to decide on the admissibility of the complaint within 21 days from the date of filing. If it fails to do so, the complaint is deemed to be admitted.

Reference to Mediation (Sec. 37)

• The Commission can suggest mediation to settle a dispute if it sees a possibility of resolution through this method.
• If the Commission proposes mediation, the parties involved must provide their written consent within 5 days.
• Mediation referrals can occur at any stage, but it is preferable during the first hearing of the complaint.
• The Central Government may specify cases where mediation is not applicable.
• If both parties agree to mediation and give their consent, the Commission will refer the matter for mediation within 5 days of receiving consent.

Hearing of the Complaint (Sec. 38)

• If the Commission determines that the complaint cannot be resolved through mediation, is not suitable for mediation, or if mediation fails after being attempted, it will proceed to hear the complaint.

Procedure in Complaint Regarding Goods

Objections to the Complaint

• The Commission sends a copy of the complaint to the opposite party for their objections within 21 days.
• The opposite party must submit their objections within 30 days, with the Commission having the authority to extend this period by a maximum of 15 days.
• If the opposite party admits liability, the Commission may issue a suitable order and close the complaint.
• If the opposite party either:
• Submits objections and disputes the allegations or
• Fails to submit objections, the Commission will proceed to hear and resolve the complaint.

Reference of Sample Goods to Appropriate Laboratory

• If the alleged defect in goods requires analysis or testing, the Commission will obtain a sample from the complainant.
• The sample will be sealed and authenticated as per prescribed rules.
• The complainant will be asked to deposit specified fees.
• The sealed sample will be sent to an appropriate laboratory for analysis or testing, along with the deposited fees and instructions.
• An "Appropriate Laboratory" is defined as a laboratory recognized by the Central or State Government, or established under law for testing goods to identify defects.
• Upon receiving the laboratory report, both parties will receive a copy.
• Parties can present objections to the report and argue their positions.
• After hearing both sides, the Commission will make a suitable order to resolve the complaint.
• If no laboratory analysis is needed, the Commission will follow the procedure for complaints regarding services.

Procedure in Complaint Regarding Services

Objections to the Complaint

• The Commission sends a copy of the complaint to the opposite party for their objections within 21 days.
• The opposite party must present their objections within 30 days, with the Commission having the authority to extend this period by a maximum of 15 days.
• If the opposite party admits liability, the Commission may issue a suitable order and dispose of the complaint.
• If the opposite party either:
• Presents objections and disputes the allegations or
• Fails to present objections, the Commission will proceed to hear and dispose of the complaint.

Recording of Evidence [Sec. 38(5) and (6)]

• The Commission will resolve consumer disputes based on the evidence presented by the parties involved.
• The complaint will be heard by the Commission using affidavits and documentary evidence submitted. If a request is made for hearing or examining parties in person or via video conferencing, the Commission may permit it.
• According to the proviso in Sec. 38(6), two conditions must be met for witness examination:
  • The applicant must demonstrate sufficient cause for examining witnesses.
  • The Commission must provide written reasons for approving the application.

Time Frame for Disposing of Complaint [Sec. 38(7)]

• Sec. 38(7) mandates that every complaint should be resolved as quickly as possible. The Commission aims to decide on complaints within the following timeframes:
• Three months from the date of receipt of notice by the opposite party for complaints that do not require analysis or testing of commodities.
• Five months for complaints that involve analysis or testing of commodities.
• Generally, the Commission does not grant adjournments to parties. However, if there is a valid reason, adjournments may be granted, provided the party requesting the adjournment pays costs to the opposite party.

Findings of the District Commission [Sec. 39]

Where the District 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 (a) the services or(b) any unfair trade practices, or
• claims for compensation under product liability are proved, it shall issue suitable order against the opposite party.

In Cases of Defective Goods and Services

Where the Sample Goods are Referred to Appropriate Laboratory

• Remove Defect: The Commission may order the opposite party to remove the defect pointed out by the appropriate laboratory from the goods in question.
• Replace Goods: The Commission may order the opposite party to replace the goods with new goods of similar description which shall be free from any defect.
• Refund: The Commission may order the opposite party 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.

In Case of Other Goods and Services

• If the goods are not referred to an appropriate laboratory, and in the case of services, the Commission may order the opposite party to remove the defect from the goods or deficiency from the services.

Compensation or Damages

• In addition to the above order, the Commission may order the opposite party 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 Commission has the power to grant punitive damages in such circumstances as it deems fit.

In Cases of Product Liability Claims

• In a product liability action under Chapter VI, the Commission may order the opposite party to pay such amount as may be awarded by the Commission as compensation.

In Cases of Unfair Trade Practice (UTP) or Restrictive Trade Practice (RTP)

• The Commission may order the opposite party to discontinue the unfair trade practice or restrictive trade practice and not to repeat them.

In Cases of Hazardous or Unsafe Goods

• The Commission may order the opposite party not to offer the hazardous or unsafe goods for sale.
• The Commission may order the opposite party to withdraw the hazardous goods from being offered for sale.
• The Commission may order the opposite party to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature.

Order for Compensation in Case of Hazardous or Unsafe Goods

• The Commission may order the opposite party 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 identifiable conveniently.
• The minimum amount of sum so payable shall not be less than 25% of the value of such defective goods sold or service provided to such consumers.
• Any amount so obtained shall be credited to such fund and utilized in such manner as may be prescribed.

In Cases of Misleading Advertisements

• In case of misleading advertisement, the Commission may order the opposite party to cease and desist from issuing any misleading advertisement.
• The Commission may order the opposite party to issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement.

Finality of Orders [Sec. 68]

Sec. 68 lays down that every order of a District Commission or the State Commission or the National Commission, as the case may be, shall, if no appeal has been preferred against such order under the provisions of this Act, be final.

Enforcement of Orders [Sec. 71]

Sec. 71 lays down that every order made by a District Commission, State Commission or the National 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.

Provisions of Order XXVI of the Civil Procedure Code, 1908 relating to the execution of decrees shall be applicable to such enforcement of orders.

Penalty for Non-Compliance of Order [Sec. 72]

• Failure to comply with any order made by the District Commission or the State Commission or the National Commission, as the case may be, attracts imprisonment for a term which shall not be less than one month, but which may extend to three years, or fine, which shall not be less than twenty-five thousand rupees, but which may extend to one lakh rupees, or both.
• The District Commission, the State Commission or the National Commission, as the case may be, have the power of a Judicial Magistrate of First Class for the trial of the offence of non-compliance of their orders. For that purpose, they shall be deemed to be Judicial Magistrates of First Class for the purposes of the Code of Criminal Procedure, 1973.
• The trials by the Commissions shall be summary trials, and the orders passed by the Commissions in such trials are appealable.