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Consumer Disputes Redressal Mechanism under Consumer Protection Act

This article will deal with consumer disputes redressal machinery, 3 tier redressal system of consumer protection and the consumer redressal mechanism or consumer redressal machinery or, Redressal mechanism under consumer protection act 2019

When you have a grievance about any goods or services that you have availed then you can approach the redressal mechanism that is the consumer forum for redressal of your issue. The corporate entities need to know that any person or even government or non-government body personally or through a lawyer can file a consumer complaint in case of any dispute regarding goods or services availed from you. The corporate redressal system is a must.

E.g.- Calculation of interest on loans, defects in any food product or any other material purchased, lesser quantity than mentioned in the purchased product etc.

With the rise in grievances of consumers and more awareness about the rights of the consumers, the Redressal Mechanism of Consumer Protection Act, 1986 came into force. Under the Redressal Mechanism of Consumer Protection Act, 1986 a quasi- judicial system was established.

We will try to get an insight into how this system works:

 The Consumer Dispute Redressal Forum is a three tier system.

The tier redressal methods in consumer awareness comprising National Consumer Redressal Forum (NCRF), State commission and District forums. The jurisdiction of each consumer forum has been given in the Redressal Mechanism of Consumer Protection Act, 1986. An appeal from the decision of the district forum can be made to the state commission and an appeal against the order of the state commission can be made to the National Forum. There are timelines given for the appeal as there is in cases of any other nature.

In addition to the 3 tier redressal methods of consumer awareness timelines there is also a timeline of 21 days to decide jurisdiction over a particular case.

The principle of Res judicata also applies to this body and hence the same case cannot be entertained in more than one forum or if there is a case pending before a civil court then the same case cannot be entertained by any consumer forum. Jurisdiction of the forum will be decided on the basis of pecuniary value of the claim and the place of business of the Respondent where the cause of action took place. On the issue of jurisdiction the Supreme Court has held that the interpretation of the branch office (as given in the Redressal Mechanism of Consumer Protection Act, 1986) of the Respondent will be deemed to be the branch where the cause of action took place and no other branch. For example, if the Respondent has an office all over India but if the cause of action arose in Rohtak then the claim/complaint can be filed in the consumer district forum of Rohtak. Regarding the subject matter jurisdiction the Apex court has ruled that the issues regarding Provident Fund can also be decided by the Consumer forums hence has considered employees as consumers.

Procedure of filing a complaint:

There is a particular consumer redressal mechanism or consumer redressal machinery-

• The first step is to send a legal notice of the grievance to the Respondent.

• Any person can file the complaint on a plain paper after notarising the document.

• The complaint can also be filed through a post addressed to the particular consumer redressal mechanism or consumer redressal machinery.

• The fee for filing a complaint can be submitted only by a demand draft.

• Four copies of the complaint have to be filed and if there are more than one Respondent then one copy for each Respondent has to be filed.

• The complaint has to be filed within two years of the cause of action following the consumer redressal mechanism or consumer redressal machinery. If the consumer is not vigilant enough for more than two years then he/she is barred by the limitation law.

The fee for filing consumer complaints have been kept minimal as the consumer has already suffered loss and not to burden the consumer monetarily any further.

Benefits of redressal though consumer redressal mechanism or consumer redressal machinery(Forum):

• The disputes are adjudicated faster under this system hence the case is not pending for years as in civil courts.

• Less cumbersome process: The process of filing the complaint is simple.

• The complainant can themselves file the complaint and there is no need to be represented by an advocate.

• The complaint can also be made through post.

• Low cost

Grievance Redressal Mechanism

Grievance Redressal Mechanism is a very complex and important topic from the examination perspective.  Any prospective Civil Servant should be well-versed in the subject of grievance redressal mechanism.

1. A government's grievance redressal mechanism is a crucial cog in the wheel.

2. The government and its administration will never be accountable or effective unless they have an effective grievance redressal mechanism/process.

3. Citizens elect the government and hold it accountable in a democracy.

4. Food shortages, overloaded public transportation, late trains, and other public concerns against the government could be among them.

Consumer Awareness

The Redressal Methods In Consumer awareness is the act of collecting enough information about the offerings they consume and using their consumer rights to protect themselves against market exploitation.

Government intervention is required in the process or the redressal methods in consumer awareness since it is a question of public welfare.

This procedure entails successfully educating a customer about their rights and obligations for the sole purpose of ensuring their safety and protection from market abuse. The emphasis is on making information and recourse alternatives readily available.

Importance of Consumer Awareness

Below listed are a few points that state the importance of redressal methods in consumer awareness. The Redressal Methods In Consumer awareness:

1. Allows a consumer to achieve maximum satisfaction at the best price.

2. Protects consumers in a marketplace from all sorts of exploitation that the producers and sellers might indulge in.

3. Protects a consumer from consuming large quantities of harmful products.

4. Motivates a consumer to save and not splurge.

5. Helps consumers solve problems regarding their purchases as they grow more aware of redressal mechanisms.

6. Enables a society to grow healthily.

Three-tier machinery under consumer protection act (consumer redressal machinery or consumer redressal mechanism)

The three tier machinery under the Redressal Mechanism of Consumer Protection Act, 1986 for redressal of consumers grievances consists of:

(i) District Forum- A President and two other members make up the District Forum, one of whom should be a woman. They are all appointed by the relevant state government. When the value of the products or services in question, as well as the compensation sought, does not exceed Rs.20 lakhs, a complaint can be filed with the appropriate District Forum. When the District Forum receives the complaint, it is forwarded to the party that is the subject of the complaint. If necessary, the goods or a sample of them must be sent to a laboratory for testing. After evaluating the laboratory results and hearing the person against whom the complaint is lodged, the District Forum will issue an order. If the aggrieved party is not satisfied with the District Forum's decision, he may file an appeal with the State Commission within 30 days of the decision.

(ii) State Commission- A President and at least two other members, one of whom should be a woman, make up each State Commission. They are appointed by the relevant state government. When the value of the products or services in question, as well as the compensation sought, exceeds Rs.20 lakhs but does not exceed Rs.1 crore, a complaint can be filed with the appropriate State Commission. Appeals against District Forum orders can also be brought before the State Commission. When the State Commission receives a complaint, it is forwarded to the person who is the subject of the complaint. If necessary, the goods or a sample of them must be sent to a laboratory for testing. After evaluating the laboratory report and hearing the person against whom the complaint is filed, the State Commission will issue an order. If the aggrieved party is not satisfied with the State Commission's decision, he may file an appeal with the National Commission within 30 days of the decision.

(iii) National Commision- A President and at least four additional members make up the National Commission, one of whom should be a woman. The government of the United States appoints them. When the value of the goods or services in question, as well as the compensation sought, exceeds Rs.1 crore, a complaint can be filed with the National Commission. Appeals against State Commission orders can also be made with the National Commission. When the National Commission receives a complaint, it is forwarded to the party that is the subject of the complaint. If necessary, the goods or a sample of them must be sent to a laboratory for testing. After evaluating the tyre test report from the laboratory and hearing the party against whom the complaint is lodged, the National Commission will issue an order.

The information given in this article is non-exhaustive and is for the purpose of knowledge.

Keywords - consumer redressal mechanism, redressal mechanism of consumer protection act, grievance redressal mechanism, redressal methods in consumer awareness, consumer redressal machinery