Consumer Courts of India

According to the Consumer Protection Act of 1986, the consumer courts were made to make it easier for consumers to have easy access to much simpler and quicker mechanisms to re-address their issues. It handled consumer problems related to unfair trade practices, improper supply of goods or inefficient services provided to the consumers.

This Story also Contains

1. The Three-Tier System
2. Advantages of Consumer Courts in India
3. Procedure of Filing Complaints in a Consumer Court in India
4. List of Indian Consumer Courts in India
5. Powers and Functions of Consumer Courts in India
6. Rights provided by Consumer Courts in India
7. Case Laws handled by Consumer Courts in India

Moreover, in the year of 2019, the Consumer Protection Act was amended and new consumer protection laws were enacted. This act focused on faster recovery of cases by solving the complex problem of delayed justice.

Thereafter, the consumer courts function at three different levels i.e. District Level, State Level and National Level. All these three levels have their jurisdiction pre-decided and they operate within that area, which means that the territory where a particular consumer court will perform its function is decided and assigned beforehand. Further, establishing the consumer courts at three different levels was one of the most important goals that were achieved with the amendment of 2019 because it helped in better drafting a faster and more effective problem-solving mechanism.

You may also check, Consumer Law in Legal Studies.

The Three-Tier System

Listed below are the classifications on which the Consumer Courts of India are divided.

1. The District Consumer Disputes Redressal Commission (DCDRC)

The District Consumer Disputes Redressal Commission is the first tier of the consumer court system which keeps an account of matters on the district level. In this system of consumer court, the complaints which do not exceed the limit of Rs. 1 Crore of the value of goods and services are taken care of. The compensation amount in such cases shall not go above the claim of Rs. 1 crore. The DCDRC is headed by a designated President of India who is appointed by the State Government. The President of the commission leads it and oversees the proceedings in the Consumer Courts.

2. The State Consumer Disputes Redressal Commission (SCDRC)

The State Consumer Dispute Redressal Commission is the second tier of the consumer courts system and it functions on a state level. The SCDRC deals with matters and compensation of claims that are above the amount of Rs. 1 Crore but below the limit of Rs. 10 Crore. However, if the decision made by DCDRC is not satisfactory, then a consumer may appeal to the SCDRC to make sure that their conflict is resolved. The head of the SCDRC is also designated as a President who has been a High Court judge. The person is appointed by the State Government after consulting with the Chief Justice of the High Court of that state. The President of the SCDRC leads the commission and its decisions.

3. The National Consumer Disputes Redressal Commission (NCDRC)

The National Consumer Disputes Redressal Commission is the topmost or the apex level of consumer court in India. It tackles consumer issues where the value of the compensation claimed is above the amount of Rs. 10 Crore. The NCDRC also hears cases against the SCDRC when a consumer makes a higher appeal to meet their consumer necessities. The head of the NCDRC is also named as a President. The person appointed to such a position is typically who has been a judge of the Supreme Court of India. The Central Government appoints the President of the NCDRC who keeps a check on the matters concerning consumer importance.

• The three-tier system of the consumer disputes redressal system provides an organised and systematic approach towards resolving consumer conflicts and aggressive consumer matters. The detailed three-way mechanism of the redressal courts also reduces the complexity arising due to the monetary value of different cases.
• Furthermore, consumers in India can file complaints with consumer courts in the territory where the opposition party or the party against whom they have filed a case resides or works. However, the filing of complaints must be done within two months from the day and date on which the incident occurred or the problem had arisen. There are no filing fees for the value of compensation claims up to Rs, 5 lakhs, but the number of claims above Rs. 5 lakhs may have a nominal amount of filing fees charged.
• Afterwards, there is a very informal procedure to access the consumer courts. The consumer courts after receiving a complaint, summon both the complaining and the responding parties to examine their complaints and collect pieces of evidence and documents. Thereafter, both parties get an equal opportunity to represent themselves and prove themselves innocent. Sometimes, even mediation is used as a means to resolve issues between the conflicting parties to avoid involvement in a formal litigation process. Therefore, this helps in the active participation of both parties and helps in deducing effective conclusions.

Advantages of Consumer Courts in India

• The consumer courts are designed in such a way that they ensure quick solutions to consumer’s problems and queries. Since the process is informal and does not deal with legal and formal technicalities, the consumers are more free and open at the redressal table. It also adjudicates these matters in a much faster way.

• The consumer forums are affordable and also cost-effective. There are no filing charges minimum up to Rs. 5 lakhs of the value of compensation. There are no heavy legal expenses as it a not a formal procedure. Although there are no legal expenses and a formal approach to these redressal courts, there is legal representation guaranteed to the consumers at less cost.

• The consumer courts also work in a specialised manner where the cases and disputes are dealt with by expert legal practitioners and honourable Judges. It grasps special attention as consumer laws and rights in India are prominent in the country. Every person gets fair and equal treatment in the consumer court system and it also empowers consumers with legitimate representation and awareness.

Procedure of Filing Complaints in a Consumer Court in India

• The very first step to ensure before filing any complaint in the consumer is to determine the jurisdiction of the area where the individual’s complaint falls, that is, in DCDRC, SCDRC OR NCDRC based on the amount of compensation claimed.

• The second step includes drafting the complaint. The complainant must draft a compact filing of his personal information, identity information of the opposite party, facts and data of the case and other important information required for the filing process.

• The following step is attaching a copy of cash memos, bills, receipts, warranty and guarantee certificates and other needful evidence or papers as a part of supporting documentation in consonance with the second step.

• Then, the consumers may proceed to submit the drafted complaint in the appropriate consumer court, within two years from the date of occurrence of the issue or the grievance.

• Thereafter, once the complaint is submitted in the consumer court, the parties can move forward with payment of fees for the cases above the value of Rs. 5 lakhs. However, the amount charged shall be a very nominal amount based on the jurisdiction. There are no fee charges for courts

• After the payment is done, the consumer court issues a referral notice to the opposite party, expecting them to give a heads-up response to it.

• The hearings of these sessions start so on and are scheduled succeeding the notice given to the opposite party. The parties put forward their points and arguments in their favour and defence respectively.

• The dispute among both parties is tried to be solved through the process of mediation itself to avoid indulging in tiresome litigation work and heavy expenses. This also ensures an informal approach towards solving the problem.

• Failing the mediation process, there is a formal adjudication conducted between both parties to resolve the conflict that arose between them. Here, in this way, the court decides for the party’s betterment based on evidence and witnesses.

• The entire process comes to an end after the formal litigation in the consumer courts. The court issues an order to the opposite party (if found liable) to compensate for the damages, either through means of money or through punishments.

List of Indian Consumer Courts in India

Consumer courts are established across India, with district, state, and national forums in every state and union territory. A comprehensive list of these consumer courts in India is listed below.

Powers and Functions of Consumer Courts in India

Consumer courts in India possess broad powers and functions to safeguard consumer interests effectively. These include:

• Adjudicating disputes related to defective goods, deficient services, unfair trade practices, and more. The courts have the authority to examine evidence, hear testimonies, and render judgments based on legal principles and precedents.

• Awarding compensation, refunds, or replacements to aggrieved consumers. The courts can assess damages, including financial losses, mental anguish, and inconvenience caused to consumers due to unfair practices or defective products/services.

• Imposing penalties on erring businesses and entities found guilty of unfair practices. Consumer courts have the power to levy fines, penalties, and punitive damages on businesses that violate consumer rights or engage in deceptive practices.

• Issuing directives and guidelines to promote consumer awareness and education. Consumer courts play an active role in educating consumers about their rights, responsibilities, and avenues for redressal, contributing to a more informed and empowered consumer base.

Rights provided by Consumer Courts in India

Consumer courts empower consumers with several rights, including:

• Right to information about products/services - Consumers have the right to accurate and transparent information about the quality, price, ingredients, safety standards, and other relevant details of products and services they purchase.

• Right to safety and quality standards - Consumers are entitled to products and services that meet prescribed safety standards, quality benchmarks, and regulatory requirements, ensuring their health, safety, and satisfaction.

• Right to choose freely in the marketplace - Consumers have the freedom to choose from a range of products and services offered by different businesses, without coercion, discrimination, or unfair practices influencing their decisions.

• Right to be heard and represented fairly in disputes - Consumers have the right to present their grievances, provide evidence, and be heard in consumer courts, ensuring a fair and impartial resolution of disputes without undue bias or prejudice.

• Right to seek redressal and compensation for grievances - Consumers have the right to seek redressal for grievances related to defective products, deficient services, unfair trade practices, and other violations of consumer rights. Consumer courts provide avenues for compensation, refunds, replacements, and corrective measures to rectify harms suffered by consumers.

Case Laws handled by Consumer Courts in India

• Indian Medical Association v. V.P. Shantha and Others, the Supreme Court held that medical services fall under the ambit of the word ‘service’ according to the Consumer Protection Act, 1986. After this judgment, the healthcare services were covered in the view of consumer protection laws where patients can avail redressal in cases involving medical negligence and medical malpractice through Consumer Courts.

• In the case of Lucknow Development Authority v. M.K. Gupta, the court held that the public sector bodies and government agencies that provide services can be held responsible for not providing efficient services to consumers. Thereafter, this case laid down that the consumers have the right to get compensation for poor quality and inadequacy in services granted to them by such organisations.

• Similarly, in the case of HDFC Bank Ltd. v. Balwinder Singh, the apex court held that financial institutions such as banks can also be held liable for not granting effective services such as loans, issues related to credit cards and other banking operations to the consumers. In furtherance with this judgement given by the court, consumer protection laws related to financial institutions came into existence.

• In the landmark case of Ghaziabad Development Authority v. Balbir Singh, it was decided that housing authorities and the developers engaged in real estate work can also be held responsible for mishaps such as delays in construction, denying possession or infrastructural defects. The consumers purchasing shelter for themselves were safeguarded with such basic rights after this infamous case scenario.